HomeMy WebLinkAboutStudy Session Agenda Packet 04-25-2017 MARANA AZ
ESTABLISHED 1977
MARANA TOWN COUNCIL
STUDY SESSION
NOTICE AND AGENDA
11555 W. Civic Center Drive, Marana, Arizona 85653
Council Chambers, April 25, 2017, at or after 6:00 PM
Ed Honea, Mayor
Jon Post, Vice Mayor
David Bowen, Council Member
Patti Comerford, Council Member
Herb Kai, Council Member
Carol McGorray, Council Member
Roxanne Ziegler, Council Member
Pursuant to A.R.S. § 3 8-431.02, notice is hereby given to the members of the Marana Town
Council and to the general public that the Town Council will hold a meeting open to the public on
April 25, 2017, at or after 6:00 PM located in the Council Chambers of the Marana Municipal
Complex, 11555 W. Civic Center Drive, Marana, Arizona.
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. Persons with a disability may
request a reasonable accommodation, such as a sign language interpreter, by contacting the Town
Clerk at (520) 382-1999. Requests should be made as early as possible to arrange the
accommodation.
This Notice and Agenda posted no later than Monday, April 24, 2017, 6:00 PM, at the Marana
Municipal Complex, 115 5 5 W. Civic Center Drive, the Marana Operations Center, 5100 W. Ina
Road, and at www.maranaaz.gov under Agendas and Minutes.
CALL TO ORDER AND ROLL CALL
PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE
APPROVAL OF AGENDA
Marana Study Session 04/25/2017 Page 1 of 29
CALL TO THE PUBLIC
At this time any member of the public is allowed to address the Town Council on any issue
within the jurisdiction of the Town Council, except for items scheduled for a Public Hearing
at this meeting. The speaker may have up to three minutes to speak. Any persons wishing to
address the Council must complete a speaker card located outside the Council Chambers
and deliver it to the Town Clerk prior to the commencement of the meeting. Individuals
addressing a meeting at the Call to the Public will not be provided with electronic
technology capabilities beyond the existing voice amplification and recording capabilities
in the facilities. Pursuant to the Arizona Open Meeting Law, at the conclusion of Call to the
Public, individual members of the Council may respond to criticism made by those who
have addressed the Council, and may ask staff to review the matter, or may ask that the
matter be placed on a future agenda.
DISCUSSION/DIRECTION/POSSIBLE ACTION
D 1 Relating to Development; preview, discussion and direction regarding the Gladden
Farms II Development, including a review of the details of the development
and discussion of changes that have been proposed by the developer (Ryan Mahoney)
D2 Relating to Budget; review, discussion, consideration, and direction to staff regarding the
fiscal year 2017-2018 Manager's recommended operating budgets for the General Fund,
Bed Tax Fund, Highway User Revenue Fund, Water Operating Fund, Wastewater
Operating Fund, and the Airport Operating Fund (Gilbert Davidson and Erik Montague)
EXECUTIVE SESSIONS
Pursuant to A.R.S. § 38-431.03, the Town Council may vote to go into executive session,
which will not be open to the public, to discuss certain matters.
El Executive Session pursuant to A.R.S. §38-431.03 ( Council may ask for
discussion or consultation for legal advice with the Town Attorney concerning any
matter listed on this agenda.
FUTURE AGENDA ITEMS
Notwithstanding the mayor's discretion regarding the items to be placed on the agenda, if
three or more Council members request that an item be placed on the agenda, it must be
placed on the agenda for the second regular Town Council meeting after the date of the
request, pursuant to Marana Town Code Section 2-4-2(B).
ADJOURNMENT
Marana Study Session 04/25/2017 Page 2 of 29
MARANA AZ
ESTABLISHED 1977
Council-Study Session D1
Meeting Date: 04/25/2017
To: Mayor and Council
From: Ryan Mahoney, Development Services Director
Date: April 25, 2017
Strategic Plan Focus Area:
Not Applicable
Subject: Relating to Development; preview, discussion and direction regarding the Gladden
Farms II Development, including a review of the details of the development
and discussion of changes that have been proposed by the developer (Ryan Mahoney)
Discussion:
The development of the Gladden Farms II project is getting closer to becoming a reality. Staff
has been in discussions with the developer related to timing and location of the first phases of the
development. The Specific Plan was adopted in December of 2006 and subsequently block
platted in 2007. A graphic of the current Land Use Plan for Gladden Farms I and II is attached.
Two blocks in the southwest corner of the development have been final platted and are likely the
first two blocks that will be developed. The project can be considered a mixed-use project
and has a target unit count of 1,975 single-family units, 370 multi-family units with an overall
density or RAC of four. There are six separate zoning designations identified in the specific
plan. Three of these essentially mirror our residential zone districts, R-6, R-7 and R-8. The other
three are High Density Residential (HDR), Transitional and Commercial. The intensity of
development increases from west to east. The idea was to provide a logical transition from
Gladden Farms I to Gladden Farms II with similar lot sizes and intensities. As you move closer to
the Interstate, the higher density residential and commercial uses are allowed. The HDR zoning
designation allows multi-family, single family attached, and single family detached units. Single
family detached units within this category are allowed on lot sizes that could be smaller than
elsewhere within the community, but such units are limited to no more than 33% of the total
lot count. The Transitional and Commercial designations allow similar uses as would be allowed
under the Town's Neighborhood Commercial and Village Commercial, respectively.
The Gladden Farms developments, like many of the developments in north Marana, was affected
Marana Study Session 04/25/2017 Page 3 of 29
by the recession, which severely slowed the pace of development. Given the passage of time, the
demand for housing in north Marana has come back and is moving ahead at a steady pace. In fact
the Gladden Farms I development is nearing completion in its residential blocks and there are
now four builders actively selling homes there. These are KB Homes, Lennar, Richmond
American and Meritage.
As with any well laid plans the passage of time can leave certain aspects either obsolete or out of
sync with market demands. Generally, the Gladden Farms II Specific Plan is in good shape.
There are a few modifications that we have been discussing with the developer that would allow
them to begin development and also offer expanded amenities for the community. One of these is
a replat of block 3 S to reflect a preferred lot size for that area. Another is an amendment to the
block plat to reflect a realignment of Mike Etter Boulevard on the east side of the development.
Finally, the large HOA park in the middle of the development would be omitted from the plan and
instead moved to the Heritage Park in the form of lighted soccer fields and other amenities. Each
neighborhood would still have access to its own pocket park as well as connectivity to the
regional Gladden trails. This move would allow for the Town to meet a demand for sports fields
sooner while still keeping the rich amenities that Gladden is known for.
Staff Recommendation:
Staff is requesting comments, suggestions and recommendations from the Town Council
regarding the Gladden Farms II Specific Plan.
Suggested Motion:
Council's pleasure.
Attachments
Gladden Farms Land Use Plan
Marana Study Session 04/25/2017 Page 4 of 29
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MARANA AZ
ESTABLISHED 1977
Council-Study Session D2
Meeting Date: 04/25/2017
To: Mayor and Council
From: Erik Montague, Finance Director
Date: April 25, 2017
Strategic Plan Focus Area:
Commerce, Community, Heritage, Recreation, Progress & Innovation
Subject: Relating to Budget; review, discussion, consideration, and direction to staff regarding
the fiscal year 2017-2018 Manager's recommended operating budgets for the General
Fund, Bed Tax Fund, Highway User Revenue Fund, Water Operating Fund,
Wastewater Operating Fund, and the Airport Operating Fund (Gilbert Davidson and
Erik Montague)
Discussion:
The Town Manager and Finance Director will present the recommended operating budgets for the
General Fund, Bed Tax Fund, Highway User Revenue Fund, Water Operating Fund, Wastewater
Operating Fund, and Airport Operating Fund for fiscal year 2017-2018. Information and direction
received from Council will be incorporated into the Town's tentative budget which will be
brought back to Mayor and Council for consideration at the regular meeting on May 16, 2017.
The presentation will be provided to Council prior to the meeting.
Staff Recommendation:
Staff requests information and direction regarding the Manager's recommended budgets for the
General Fund, Bed Tax Fund, Highway User Revenue Fund, Water Operating Fund, Wastewater
Operating Fund, and Airport Operating Fund for fiscal year 2017-2018, which will be
incorporated into the tentative budget for Council's consideration on May 16, 2017.
Suggested Motion:
Marana Study Session 04/25/2017 Page 6 of 29
I move to direct the Town Manager to incorporate the item(s) discussed this evening in the
preparation of the tentative budget which will be considered for possible adoption on May 16,
2017.
Attachments
2018 Recommended Budget Transmittal
Marana Study Session 04/25/2017 Page 7 of 29
MARANA AZ
CELEBRATING 40 YEARS
April 18, 2017
Honorable Mayor and Members of Council,
I am pleased to present to you the Manager's recommended operating budgets for the
General Fund, Bed Tax Fund, Highway User Revenue Fund, Water Enterprise Operating
Fund, Wastewater Enterprise Operating Fund and Airport Enterprise Operating Fund for
fiscal year 2017-2018. This recommendation reflects the Town of Marana's commitment
to sound fiscal policy and positive investment in our community. Strategic initiatives are
balanced against existing priorities, resulting in a robust, yet efficient, financial plan for
the coming year. In developing this plan, Town staff were guided by the priority
initiatives identified by the Council and the community in the recently adopted Strategic
Plan III. These guiding principles, along with the foundational principles of sound
financial planning, combine to form the vision of this budget document.
Budget Overview
The budgets reflect a continued increase in several key revenue categories. Overall
General Fund revenues are expected to increase by approximately 5.7% to $43.6 million.
Over 90% of the Town's General Fund revenues consist of sales taxes, intergovernmental
revenues (State shared revenue) and development related revenues. While those revenues
are sensitive to fluctuations in the local and national economy, local revenues are
expected to grow. In fact, there are a number of exciting commercial and residential
projects which are either under way or are expected to begin next budget year.
The revenue estimates include projected, full year revenues for the Premium Outlets in
Marana near the Twin Peaks interchange. The premium 360,000 square foot mall opened
in October 2015. The premium outlet mall is a regional destination shopping center and
continues to draw shoppers throughout Arizona and beyond.
Page 1 of 22
Marana Study Session 04/25/2017 Page 8 of 29
Operating revenues in the Bed Tax Fund, Highway User Revenue Fund, Water,
Wastewater and Airport Enterprise Funds are expected to increase by 5.5%, 3.1%, 16.9%,
12.7% and 3.5%, respectively. Revenue increases are largely due to a combination of
account growth (new customers) and adjustments to fees and rates previously approved
by Council, where applicable.
The proposed fiscal year 2017-2018 budget is structurally balanced and meets Council's
policy direction as it relates to providing exemplary service in core community services
and programs.
Accomplishments and Goals
This year, the Town of Marana invested in strategic advancements for the community,
focusing on key areas of need as identified in Strategic Plan III. These diverse
achievements reflect efforts on the part of Town Council, stafi� and the community to
foster prosperity throughout Marana.
Commerce
The Town has worked to secure important economic assets, and the results are showing.
The Arizona. Pavilions m Marana added approximately 91,000 square feet of new retail
space this fiscal year with the opening of Petco, Ross, TJ Maxx, Home Goods and Dollar
Tree. Additionally, a new 44,000 square foot Topgolf entertainment center is currently
under construction and is anticipated to open in December 2017.
Last year's extension of the sewer system south to Saguaro Bloom has opened a new
corridor of potential growth. We are continuing to develop Town infrastructure to
facilitate the growth of our community's economy. With increased investment in needed
areas, our commercial environment is primed for development.
The Town's Land Development Code (LDC) plays a key role in determining what types
of development activities occur and where they locate within our community. An update
to the LDC kicked off in November 2016 and will be completed next fiscal year. The
LDC update goals include looking for process enhancements and creating zone districts
that respond to dynamic housing and commercial markets.
In March, the Department of Economic Development and Tourism completed an
Economic Development Strategic Plan. This plan will act as a 3-5 year plan for
Economic Development in the Town of Marana, of which the goal is to provide
actionable items to be carried out by the Department of Economic Development and
Tourism that will lead to industry diversification within the Town to support long term
and sustainable economic health.
Page 2 of 22
Marana Study Session 04/25/2017 Page 9 of 29
The airport recently completed an update to the Master Plan and created the airport's first
Strategic Business Plan using grant funding from the Arizona. Department of
Transportation. An airport Master Plan describes and depicts the overall concept for the
long-term development of an airport. The goal of the plan is to provide direction for
future airport development that will satisfy aviation demand in a financially feasible
manner and meet the Town's needs with respect to the airport. This airport Master Plan
updates and replaces the September 2007 airport Master Plan.
Community
Marana continues to lead the region in home building. A number of factors go into home
buyer purchasing decisions. Those include access to employment centers, quality of
school systems, shopping and entertainment centers, access to community services, etc.
The public's safety is a key component of people's sense of community. Design
Marana's new police headquarters is substantially complete and construction is
anticipated to begin close to the end of the current fiscal year. With an estimated 18
month construction schedule, the facility will open fall/winter of 2018.
Looking ahead, the Town's Pavement Preservation program will continue to successfully
treat roads throughout our community, extending their life and lowering long-term costs
to the taxpayer. In fact, the Town formally adopted amendments to the subdivision street
standards, which among other things, will work to ensure that infrastructure is
constructed to live their normal useful lives.
Capital improvement projects like the Tangerine Corridor project and the Ina. I-10
Interchange project will eventually provide for additional capacity and safety within our
community. The Town developed an Ina. business program and Project Ina. app in an
effort to offset some of the construction impacts. This effort included new signage,
advertising within the Project Ina app and a business walk to get a greater sense of
business needs during construction.
Lastly, we completed the design of the 1.5MGD Marana. Water Reclamation Facility
(WRF). Construction is currently under way, with the conmmissioning process for the
WRF starting sometnne late spring or early summer of calendar year 2018.
Innovation
We continue to work at identifying was to integrate new technologies into processes to
improve effectiveness and efficiency. The Project Ina. app mentioned previously, which
provides traffic alerts and deals from local businesses, is yet another example of where
we deployed new technology in an effort to assist the business community.
Page 3 of 22
Marana Study Session 04/25/2017 Page 10 of 29
The Town also actively participated in and assisted with the regional roll out of Coalition
Against Retail Theft (CART) initiatives and strategies. The CART program provides
education and resources to the business community in an effort to curb shoplifting.
The Town also successfully rolled out an electronic plan review solution which allows
for the efficient distribution, review, commenting and changing of plans and other
documents. Over time, this will dramatically reduce time lost with the movement of
paper documents.
Heritage
Showcasing our Marana heritage reached a new height this year with a special event
dedicated to the pride we have in Our Town. October's Cotton Festival put our history
and culture on display, honoring our past and celebrating our common future. With over
3,000 attendees, the event was a clear success — evidence of the community's
commitment to heritage.
For several years, we have prioritized revitalizing Marana. Main Street, and those efforts
will continue as we work to invest in this historic part of Marana. The architectural
standards of Marana. Main Street, which include adobe brick and red Spanish tile, ensure
a consistent look and feel in this growing district. Eventually, we envision Marana. Main
Street as a hub of retail, dining, arts, and residential activity, a hub that will attract
visitors and residents of all ages and backgrounds.
Recreation
Living in Marana has never been more fun. Last year we hosted four Signature Events, as
well as various movies and concerts in the park, 5Ks, and more. These events give
Marana residents the chance to get out and have fun, ensuring that our community enjoys
a high quality of life.
We successfully hosted our inaugural segment of El Tour de Tucson. This world-class
cycling event will showcase Marana's stunning landscapes and well-maintained
roadways. Our partnership with Perimeter Cycling, the parent organization of El Tour,
means that Marana residents will be able to enjoy a family-oriented bike ride that is part
of this larger regional event.
Parks completed an update of Marana's Parks, Recreation, Trails and Open Space Master
Plan update through Partner with University of Arizona. College of Architecture, Planning
and Landscape Architecture (CAPLA). This document will frame future parks and
related projects in the future.
Page 4 of 22
Marana Study Session 04/25/2017 Page 11 of 29
Design for the Tangerine Sky Community Park is complete and construction is expected
to be completed early into the new fiscal year. The Santa Cruz Shared-Use Path
extension from El Rio Park to Avra Valley Road will also be completed this fiscal year.
In Summary
Providing Marana residents and businesses with high quality, dedicated service does not
come free. By investing wisely, though, we can simultaneously satisfy the demands of
residents today while ensuring the long-term financial stability of Marana for many years
to come. Marana is an exceptional place to live and work, and this budget reflects our
commitment to meeting the high expectations of our community.
Investment Planning
As the economy and region continue to improve, it is critical to maintain a framework to
guide future decisions. The investment plan will provide a basis to allocate resources to
those areas that are critical in providing and maintaining core services.
STRATEGIC
POSITIONS
RESOURCES
& TOOLS
CURRENT
EMPLOYEES
Plan Inve s tme nts
The following tables describe the Town's investments into the priority areas for the total
town-wide investment and the portions incorporated within the General Fund (GF).
These investments represent the additional costs which are included within the
recommended budget summaries presented later.
I. Employee Compensation and Benefits Investment = $1,623,080 ($1,503,806
GIF)
a. Performance pay adjustments - $792,075 ($701,110 General Fund (GF))
Page 5 of 22
Marana Study Session 04/25/2017 Page 12 of 29
■ Up to 3.0%team performance pay adjustment added to base pay or
hunp sum for those at the top of their pay range
■ Eligibility and other conditions apply
b. Other pay and benefits $809,979 ($783,370 GF) on other pay and benefits
(health, retirement, disability insurance, etc.)
■ Employee Retirement - $451,680 (GF)
■ Health Insurance - $103,575 ($82,840 GF)
■ Worker's Compensation - $184,688 ($168,145 GF)
■ Training and development $21,026 ($11,425 GF)
II. Resources and Tools Investment - $1,887,640 ($1,775,720 GF)
a. Vehicle Replacements $1,235,100 ($1,003,300 GF)
b. Technology
■ Council chambers podium enhancements $20,000 (GF)
■ Server and network upgrades $20,000 (GF)
■ Police property and evidence software $80,000 (GF)
c. Facilities
■ Maintenance projects $334,920 (GF)
■ Parks maintenance projects $259,500 (GF)
d. Supplies and Equipment
■ Pool equipment, tables and shade $17,000 (GF)
■ Fleet lift, compressor, tine machine, pressure washer and other
items $41,000 (GF)
Page 6 of 22
Marana Study Session 04/25/2017 Page 13 of 29
III. Strategic Positions
Marana continues to be a regional leader in development growth. The addition of key
positions is critical in maintaining service levels. For example, the addition of new
officers will assist in maintaining service call response times in key portions of our town.
A new park, the first in the north-east portion of our community, is expected to open in
the spring of 2017 and additional maintenance workers and laborers will be needed to
take care of the grounds.
The following table lists the new full time equivalent (FTE) positon added:
Position FTE Department Funding Source
Customer Service Clerk 1.00 Communications & General Fund/
Marketing Bed Tax Fund
Document Clerk 1.00 Engineering General Fund
Police Officer 2.00 Police General Fund
Senior Maintenance Associate 1.00 Public Works General Fund
Fleet Tech I 1.00 Public Works General Fund
Water Operator III 1.00 Water Water Fund
Wastewater Reclamation Operator II 1.00 Wastewater Water Fund
Total FTE Changes 8.00
Page 7 of 22
Marana Study Session 04/25/2017 Page 14 of 29
Governmental Funds Budget Summary
General Fund
The following General Fund summary is structurally balanced with ongoing revenues
supporting ongoing services and programs. One-time resources support one-time
projects and programs. Of the amounts included below, $40.3 million represents ongoing
costs and $5.8 million represents one-time costs.
Summary of General Fund
Recommended Budget
Fiscal Year 20182
FY2018
Revenues FY2017 Recommended $Change % Change
Sales tax revenues $ 2411561385 $ 2518171378 116601993 6.9%
Intergovernmental revenues 1018051072 1110351916 2301844 2.1%
Licenses,fees &permits 410401385 414541185 4131800 10.2%
Charges for services 4891160 5341650 451490 9.3%
Fines and forfeiture 6401000 6251000 (15,000) -2.3%
Grants and contributions 2311264 2241300 (61964) -3.0%
Investment income 2001000 2001000 - 0.0%
Miscellaneous revenues 6551919 6661719 101800 1.6%
Total Revenue 4192189185 4395589148 293399963 5.7%
Expenditures
Personnel&benefits 2616751415 2815361333 118601918 7.0%
Contracted services 517561924 611571798 4001874 7.0%
Operating supplies & equip 414711649 412021797 (268,852) -6.0%
Capital outlay 112301392 111271340 (103,052) -8.4%
Total Expenditures $ 389134,380 $ 40,024,268 198899888 4.7%
Over/(Under) $ 390839805 $ 395339880 450,9075 14.6%
Other Sources and(Uses)
Transfers out (51567,949) (61107,870) (539,921) 9.7%
Total Sources and(Uses) (5,5679949) (6,107,870) (539,921) 9.7%
Change in fund balance (29484,9 144) (29 5 739 990) (89,846) 3.6%
Note 2: Both the FY2017 and FY2018 budgets shown here exclude contingency which may only be utilized when
approved by Council. The FY2018 budget will include a contingency appropriation.
Page 8 of 22
Marana Study Session 04/25/2017 Page 15 of 29
The following describes major changes between fiscal years:
• Sales tax revenues — Anticipated tax revenue growth of 6.9% includes a full year
projection for activity at the Premium Outlets in Marana. Tax estimates anticipate
the addition of approximately 91,000 square feet of retail space. Additionally, the
contracting portion of tax revenues includes an estimated inffision of additional
one-item taxes associated with major construction projects within Marana.
• Intergovernmental revenues — The shared revenue estimate is based on HB2483 —
Municipal population estimates bill which passed in the 2016 legislative session.
This bill utilizes the annual Federal Census population estimate as the basis for
allocating state shared revenues to the various cities and towns. The
intergovernmental revenue estimate shown here is based upon a preliminary
Federal Census population estimate provided to the League of Arizona Cities and
Towns. The final Federal population estimate and shared revenue numbers will
be provided to cities and towns by mid-May. Therefore, the revenue estimate
presented in the summary above could change significantly if the Federal Census
estimates used for the final shared revenue allocation are materially different
than the population estimates used in the above estimate.
• Charges for services revenue — The majority of this revenue variance is
attributable to the estimated increase in single family residential permits (SFR's)
budgeted from 550 to 625 in fiscal years 2017 and 2018, respectively.
• Personnel and benefits — The changes in personnel costs include the addition of
the new strategic positions listed earlier as well as the costs for all other
compensation and benefit changes. Additionally, the change for fiscal year 2017-
2018 also includes the second half of personnel and benefit costs of
approximately $355K which were shifted back to the General Fund from HURF
in an effort to increase the availability of road maintenance dollars.
• Transfers out — In addition to required debt service transfers, the General Fund
budget also anticipates contributions of up to $3M for drainage and other site
improvements related to the new police headquarters.
The charts on the following page present the overall General Fund sources and uses of
projected resources.
Page 9 of 22
Marana Study Session 04/25/2017 Page 16 of 29
FY2017-2018 General Fund - Sources
Other Agency
Revenues,$7.0Fro-lei), ,
r 22%
Sales Tax
Revenues,
$20.0 , 64% Licenses,Fees&
Permits, $2.0 ,
j 7%
Charges for
services,$1.0 ,
3%
Fines and
forfeiture, $0.7 ,
2%
Investment
Income, $0.1 ,
Miscellaneous Grants and 0%
revenues, $0.7 , contributions,
2% $0.2 , 1%
FY2017-2018 General Fund - Uses
Personnel&
benefits , $28.5 ,
61%
Contracted
i services, $6.2 ,
13%
Operating
supplies &e quip
$4.6 , 10%
Capital outlay,
$1.1 , 3%
Transfers out,
$6.1 , 13%
Page 10 of 22
Marana Study Session 04/25/2017 Page 17 of 29
General Fund Reserve Balances
Fund balance reserves provide the Town with the liquidity to meet current cash needs, the
capacity to invest in key initiatives and flexibility in determining how certain items are
funded. Recognizing the importance of healthy reserve balances, Town Council adopted
a target, minimum reserve balance of 25% of estimated revenues for the budget year. As
depicted in the chart below, the Town exceeded the minimum reserve balance in all fiscal
ye ars.
General Fund Reserve Balances
$30 24.6
� $2 5 23.7 22.8 22.6
.� 19.6
'~ $20
$15
$10
$5
$0
2013-14 2014-15 2015-16 2016-17 2017-18
Estimated Budgeted
Fund Balance X25% Coverage
The Town has been modestly adding back to General Fund reserve balances since fiscal
year 2008-2009 to a recent high of$24.6 million at the end of fiscal year 2014-2015. The
fund balance reduction of $1.8M in fiscal year 2015-2016 was expected and most relates
to the planned, one-time investment in the gravity portion of the downtown sewer
conveyance project Phase I. The estimated dip in reserves for fiscal year 2016-2017 is
primarily driven by the General Fund funding certain drainage and other site
improvements related to the new police headquarters.
Reserves are, by definition, a one-time resource which can be deployed toward one-time
projects and programs. Often the nature of these one-time project uses are beyond the
normal operating capital needs of the organization. Other times, the use of reserves may
advance an important initiative.
The following projects and initiatives are being considered in the 2017-2018 fiscal year
budget. The chart below also includes estimated future year costs which must also be
considered when determining to fund projects through reserves.
Under Consideration
Project Name FY2017 FY2018
Adonis Road Extension $20000 $20000
Adonis Subdivision, Reconstruction 22000 20000
Splash Pad, Crossroads at Silverbell Park 33500 50000
Page 11 of 22
Marana Study Session 04/25/2017 Page 18 of 29
Honea Heights Pocket Park 23500 -
Ora Mae Pool Renovation - 22000
Master Drainage study, NW Marana 23000 -
Adonis Road Extension 62500 24000
Total $1,220,000 $4,96000
Note 3: Amount for sewer conveyance project excludes projected carry over from the 2016-2017 budget. Actual carry
over and amount budgeted may change based upon project spend during the remainder of current fiscal year. Total
General Fund contribution approximates the gravity portion of project which is non-impact fee financed.
General Fund Balance
Target
Reserve,
918511514 Unassigned,
51% $111631053 ,
6%
Current Year
Projects,
112201000 ,6%
Due from Future Year
Airport, Projects,
212831216 4,960,000 ,
12% 25%
The chart and table below depict the possible impact on reserves should all projects under
consideration move forward in the amounts originally requested.
Fund Balance at 6/30/16 $22,842,783
Carry over 3,36500
Current Year Projects 1,220,000
Future Year Projects 4,96000
Due from Airport 2,283,216
Target Reserve 9,851,514
Unassigned $1,163,053
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Bed Tax Fund
The Bed Tax Fund accounts for the discriminatory portion of the transient lodging (bed tax) rate
which exceeds the Town's regular tax rate on other businesses. This portion must be used
exclusively for the promotion of tourism as required by A.R.S. § 9-500.06(C).
Summary of Bed Tax Fund
Recommended Budget
Fiscal Year 2018
FY2018
Revenues FY2017 Budget Recommended $ Change %Change
Sales tax revenues $ 9371884 $ 9891558 511674 5.5%
Total Revenue 9379884 989,558 51,9674 5.5%
Expenditures
Personnel&benefits 941327 1201835 261508 28.1%
Contracted services 7391322 7611723 221401 3.0%
Operating supplies&equip 1071000 1071000 - 0.0%
Capital outlay 0 0 - 0.0%
Total Expenditures $ 940,649 $ 989,558 48.9909 4.9%
Over/(Under) $ (2,9765) $ - 2,9765 -100.0%
Change in fund balance (23,765) - 2,9765 -100.0%
The following describes major changes between fiscal years:
• Sales tax revenues — The anticipated bed tax revenue increase of 5.5% is
consistent with the continued increased trend in average occupancy and overage
rates. Revenues will continue to advance the Town's tourism initiatives including
the new Discover Marana. website.
• Personnel and benefits — The changes in personnel costs include the addition of
approximately 0.5 FTE to assist the Tourism and Discover Marana web and other
outreach efforts.
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Highway User Revenue Fund
The Highway User Revenue Fund (HURF) accounts for our portion of state shared taxes
on the sale of gasoline, sale of diesel fuels and other transportation related fees. A state
constitutional restriction on the use of the highway user revenues requires that these
funds be used solely for street and highway purposes within the public right-of-way. This
shared gas tax is the primary source of revenue used for the maintenance of our
transportation system.
Summary of Highway User Revenue Fund
Recommended Budget
Fiscal Year 2018
FY2018
Revenues FY2017 Budget Recommended $ Change %Change
Intergovernmental revenues $ 310931263 $ 311891863 961600 3.1%
Investment income 71500 71500 - 0.0%
Total Revenue 3,100,763 3,1979363 96,600 3.1
Expenditures
Personnel&benefits 3551308 - (355,308) -100.0%
Contracted services 214791582 217061628 2271046 9.2%
Operating supplies&equip 1921430 2121635 201205 10.5%
Capital outlay 8391857 2781100 (561,757) -66.9%
Total Expenditures $ 3,8673,177 $ 3,1973,363 (6693,814) -20.9%
Over/(Under) $ (766,414) $ - 766,414 -100.0%
Other Sources and(Uses)
Transfers out - - - 0.0%
Total Sources and(Uses) - - - 0.0%
Change in fund balance (766,414) - 766,414 -100.0%
The following describes major changes between fiscal years:
• Intergovernmental revenues —The HURF shared revenue estimate
(intergovernmental revenues) is based on HB2483 — Municipal population
estimates bill which passed in the 2016 legislative session. This bill utilizes the
annual Federal Census population estimate as the basis for allocating state shared
revenues to the various cities and towns. The intergovernmental revenue estimate
shown here is based upon a preliminary Federal Census population estimate
provided to the League of Arizona. Cities and Towns. The final Federal
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population estimate and shared revenue numbers will be provided to cities and
towns by mid-May. Therefore, the revenue estimate presented in the summary
above could change significantly if the Federal Census estimates used for the
final shared revenue allocation are materially different than the population
estimates used in the above estimate.
• Personnel and benefits — The variance of 100% or approximately $355K in costs
reflects the second half of salaries which were shifted back to the General Fund in
an effort to increase the availability of maintenance dollars.
• Capital out — The majority of the change is due to the rep lac ement purchase of
a semi tractor trailer truck used to move large equipment like the road grader and
front loader around portions of our community which in fiscal year 2016-2017.
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Enterprise Funds
Water Operating Fund
The primary revenues for the Water Operating Fund are for charges for water delivered
and sold to customers outside of the organization. As such, it is set up and operates as a
stand-alone enterprise fund.
Summary of Water Operating Fund
Recommended Budget
Fiscal Year 2018
FY2018
Revenues FY2017 Budget Recommended $ Change %Change
Intergovernmental $ - $ 601000 601000 0.0%
Licenses, fees and permits 251000 251000 - 0.0%
Charges for services 413111258 419581829 6471571 15.0%
Investment income 51000 51000 - 0.0%
Miscellaneous - 281000 281000 0.0%
Total Revenue 4,341,258 5,076,829 7353,571 16.9%
Expenditures
Personnel&benefits 1,821,711 119171654 951943 5.3%
Contracted services 110151213 113771152 3611939 35.7%
Operating supplies&equip 1,201,181 114861694 2851513 23.8%
Capital outlay 991000 1441000 451000 45.5%
Debt service 4261654 3731830 (52,824) -12.4%
Total Expenditures $ 4,563,759 $ 5,299,330 7353,571 13.9%
Over/(Under) $ (222,501) $ (222,501) - 0.0%
Other Sources and(Uses)
Transfers in 2221501 2221501 - 0.0%
Total Sources and(Uses) 222,501 222,501 - 0.0%
Change in fund balance - - - 0.0%
The following describes major changes between fiscal years:
• Charges for services — Water revenues are anticipated to increase by
approximately 15.0% in fiscal year 2017-2018. This is primarily due to a
combination of account growth (new customers) and water rate and fee increases
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Marana Study Session 04/25/2017 Page 23 of 29
previously approved by Council which have or will be implemented in the new
fiscal year.
• Contracted services — The major change between fiscal years is primarily due to
the addition of a water tank and reservoir preventative maintenance program.
This is new program is intended to take a proactive stance in the inspection and
maintenance of the tanks and reservoirs. It also includes a major electrical update
at an existing well site.
• Operating supplies and equipment — The majority of the budget change between
fiscal years is attributable to increased water purchase costs and an increase in the
administrative charge that the water utility pays the General Fund for central
services (human resources, legal, finance, etc.).
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Wastewater Operating
The primary revenues for the Wastewater Operating Fund are for customer charges to
treat sewer flows to the north Marana. Water Reclamation Facility. The primary
customers are outside of the organization. As such, it is set up and operates as a stand-
alone enterprise fund.
Summary of Wastewater Operating Fund
Recommended Budget
Fiscal Year 2018
FY2017 FY2018
Revenues Budget Recommended $ Change %Change
Licenses, fees and permits $ 31000 $ 31000 - 0.0%
Charges for services 111561696 113031764 1471068 12.7%
Total Revenue 1,159,696 1,306,764 1479068 12.7%
Expenditures
Personnel&benefits 3691422 3811182 111760 3.2%
Contracted services 6591864 6851532 251668 3.9%
Operating supplies&equip 1301410 1831550 531140 40.7%
Capital outlay - 561500 561500 0.0%
Debt service 118071725 118091525 11800 0.0%
Total Expenditures $ 23,967,421 $ 33,1163,289 148,868 4.8%
Over/(Under) $ (1,80 7,725) $ (1,809,525) (1,9800) 0.0
Other Sources and(Uses)
Transfers in 118071725 118091525 11800 0.0%
Transfers out - - - 0.0%
Total Sources and(Uses) 1,98079725 1,809,525 1,9800 0.0%
Change in fund balance - - - 0.0%
The following describes major changes between fiscal years:
• Charges for services — Wastewater revenues are anticipated to increase by
approximately 12.7% in fiscal year 2017-2018. This is primarily due to a
combination of account growth (new customers) within existing areas and
projected new customers in Saguaro Bloom once both the gravity and force main
sewer lines are connected to the development.
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Marana Study Session 04/25/2017 Page 25 of 29
• Operating supplies and equipment — The major change between fiscal years is
primarily due to the anticipated increases in electrical usage during the fiscal year.
• Debt service — The fiscal year budget included projected debt service on the
portions of the 2013 Series bonds issued to acquire the plant, complete required
initial inVrovements and reimburse the General Fund. The debt repayment has
been structured to be paid from current and future impact fees, as included within
the respective plans. The debt service for the 2017 Series bonds attributable to the
WRF expansion to 1.5MGD will be as soon as the final debt services schedules
become available.
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Airport Operating Fund
The primary revenues for the Airport Operating Fund are for customer charges for
facility or ground lease revenues, open tie-down permits and fueling fees for planes at the
airport. The primary services are to customers outside of the organization. As such, it is
set up and operates as a stand-alone enterprise fund.
Summary of Airport Operating Fund
Recommended Budget
Fiscal Year 2018
FY2018
Revenues FY2017 Budget Recommended $ Change %Change
Licenses, fees and permits $ 2441000 $ 2491000 51000 2.0%
Miscellaneous 141000 181000 41000 28.6%
Total Revenue 258,000 267,000 9,000 3.5%
Expenditures
Personnel&benefits 2521932 2781796 251864 10.2%
Contracted services 1291401 1501394 201993 16.2%
Operating supplies&equip 731200 761400 31200 4.4%
Capital outlay 251568 - (25,568) -100.0%
Total Expenditures $ 4813,101 $ 505,590 24,9489 4.8
Over/(Under) $ (223,101) $ (238,590) (15,9489) 6.9
Other Sources and(Uses)
Transfers in 2231101 2381590 151489 6.9%
Transfers out - - - 0.0%
Total Sources and(Uses) 223,101 238,590 15,9489 6.9
Change in fund balance - - - 0.0%
The following describes major changes between fiscal years:
• Contracted services — The major change between fiscal years is primarily due to
the anticipated need for airport facility maintenance projects including security
gate motor replacements, generators and a required fire pump rebuild.
• U — The budgeted transfer for fiscal year 2017-2018 represents what may likely
be an ongoing, operating subsidy from the General Fund. In fact, over the years,
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these operating deficiencies have accumulated to balance of approximately $2.3M
which the airport owes the General Fund. In The airport does not generate
revenues adequate to support the needs of an airport with significantly aged
infrastructure. Additional airport planning is underway in an effort to improve its
ability to generate adequate revenues.
Summary of Positions
The largest portion of the Town's operating budget reflects its investment in personnel
and related benefits. Our employees provide the core services that the citizens require
and those costs comprise the largest operating cost within the General Fund at
approximately 61% of the operating budget. The strategic plan along with the economic
recovery plan will continue to guide the allocation of resources in future years. This
fiscal year 2018 budget recommends the addition of 8.0 full time equivalent (FTE)
positions. The following tables present an overall, multi-year summary of FTE and a
detailed listing of recommended changes for fiscal year 2018.
Multi-year FTE Position Change Summary
FY2015 FY2016 FY2017 FY2018
Budgeted FTE 328.58 338.73 348.63 356.63
Position change from previous year 9.25 10.15 9.90 8.00
Percentage change from previous year 3% 3% 3% 2%
Detailed Listing of Recommended Full Time Equivalent (FTE)
Position Changes for FY2018
Position FTE Department Funding Source
Customer Service Clerk 1.00 Communications & General Fund/
Marketing Bed Tax Fund
Document Clerk 1.00 Engineering General Fund
Police Officer 2.00 Police General Fund
Senior Maintenance Associate 1.00 Public Works General Fund
Fleet Tech I 1.00 Public Works General Fund
Water Operator III 1.00 Water Water Fund
Wastewater Reclamation Operator II 1.00 Wastewater Water Fund
Total FTE Changes 8.00
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Marana Study Session 04/25/2017 Page 28 of 29
Detailed Listing of Recommended Short Term Temporary (STT)/Term Limited
Temporary (TLT) Position Changes for FY2017
STT/
Position TLT Department Funding Source
Technology Support Specialist II (TLT) (1.00) Police Grant Fund
Total STT/TLT Changes (1.00)
Acknowledgements
I would like to thank our department heads, senior management team, finance, human
resources and legal staff for their efforts in submitting their recommendations
incorporated within this recommended budget for fiscal year 2017-2018.
Respectfully,
Gilbert Davidson,
Town Manger
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