Loading...
HomeMy WebLinkAboutStudy Session Agenda Packet 1/12/2021MARANA TOWN COUNCIL STUDY SESSION NOTICE AND AGENDA 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers, January 12, 2021, at or after 6:00 PM Ed Honea, Mayor Jon Post, Vice Mayor Patti Comerford, Council Member Jackie Craig, Council Member Herb Kai, Council Member John Officer, Council Member Roxanne Ziegler, Council Member Pursuant to A.R.S. §38-431.02, 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 January 12, 2021, 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 24 hours prior to the meeting at the Marana Municipal Complex, 11555 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 Marana Study Session Meeting 01/12/2021 Page 1 of 45 APPROVAL OF AGENDA DISCUSSION/DIRECTION/POSSIBLE ACTION D1 Resolution No. 2021-001: Relating to Personnel; approving and adopting amendments to the Temporary Personnel Policy - Families First Coronavirus Response Act (FFCRA) to voluntarily extend the leave benefits through March 31, 2021 (Curry C. Hale) D2 Relating to Budget; presentation, discussion and direction regarding the framework for development of the fiscal year 2021-2022 budget and its role in the implementation of the Strategic Plan (Terry Rozema and Yiannis Kalaitzidis) 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. E1 Executive Session pursuant to A.R.S. §38-431.03 (A), Council may ask for discussion or consideration, or consultation with designated Town representatives, or consultation for legal advice with the Town Attorney, concerning any matter listed on this agenda for any of the reasons listed in A.R.S. §38-431.03 (A). 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 Meeting 01/12/2021 Page 2 of 45 Council-Study Session D1 Meeting Date:01/12/2021 To:Mayor and Council Submitted For:Curry C. Hale, Human Resources Director From:Libby Shelton, Deputy Town Attorney Date:January 12, 2021 Strategic Plan Focus Area: Not Applicable Subject:Resolution No. 2021-001: Relating to Personnel; approving and adopting amendments to the Temporary Personnel Policy - Families First Coronavirus Response Act (FFCRA) to voluntarily extend the leave benefits through March 31, 2021 (Curry C. Hale) Discussion: On March 17, 2020, the Council adopted Resolution No. 2020-029, approving a temporary personnel policy regarding employee leave and telework during the COVID-19 pandemic. The resolution authorized the Town Manager to implement further revisions to the temporary policy, consistent with generally accepted principles of good personnel administration and with general legal principles, as necessary in response to the evolving nature of the emergency. On March 18, 2020, the Families First Coronavirus Response Act (FFCRA) was signed into law. The FFCRA provides leave under the Emergency Paid Sick Leave Act (EPSLA) and the Emergency Family and Medical Leave Expansion Act (EFMLEA) to assist employees during the Coronavirus Disease 2019 (COVID-19) global pandemic.  This Act was effective from April 1, 2020 through December 31, 2020. In response to the requirements of the federal law, effective April 1, 2020, the Town Manager implemented an Addendum to Temporary Personnel Policy Regarding Employee Leave and Telecommuting, being the Temporary Personnel Policy - Families First Coronavirus Response Act (FFCRA).  On August 18, 2020, the Council adopted Resolution 2020-089 approving and ratifying the Temporary Personnel Policy - Families First Coronavirus Response Act (FFCRA).  Marana Study Session Meeting 01/12/2021 Page 3 of 45 The Temporary Personnel Policy approved by the Council expired on December 31, 2020, to mirror the expiration date set forth by the FFCRA.  As of January 1, 2021, covered employers may voluntarily provide emergency paid sick leave or emergency paid FMLA Leave as was provided under FFCRA, but it is no longer mandated.   Town employees continue to be impacted by the COVID-19 pandemic, by being placed on imposed leave due to illness or required quarantines, and due to school and childcare closures.  Due to the post-Thanksgiving spike in cases, the Town has seen an increase in employee illness and exposures and many local school districts have returned to remote learning.  To bridge the gap between the Temporary FFCRA Personnel Policy's expiration date of December 31, 2020 and the Council's first meeting in 2021, the Town Manager implemented a revised Temporary Personnel Policy - Families First Coronavirus Response Act (FFCRA) extending the benefits of FFCRA through January 12, 2021, tonight's meeting date.  The proposed revisions to the Temporary Personnel Policy - Families First Coronavirus Response Act (FFCRA) will extend the leave benefits provided by FFCRA to Town employees through March 31, 2021.  Although no longer mandated by federal law to offer this leave, staff recommends the proposed extension.  Additionally, the proposed revisions clarify that there will not be a new allocation of 80 hours of EPSLA leave in 2021 and that the EFMLEA time period is also extended through March 31, 2021. Staff Recommendation: Staff recommends approval and adoption of the amendments to the Temporary Personnel Policy - Families First Coronavirus Response Act (FFCRA). Suggested Motion: I move to adopt Resolution No. 2021-001, approving and adopting amendments to the Temporary Personnel Policy - Families First Coronavirus Response Act (FFCRA). Attachments Resolution 2021-001 Exhibit A - Temporary Policy Extend FFRA Policy Presentation Marana Study Session Meeting 01/12/2021 Page 4 of 45 Marana Resolution No. 20 21-001 -1 - MARANA RESOLUTION NO. 2021-001 RELATING TO PERSONNE L; APPROVING AND ADOPTING AMENDMENTS TO THE TEMPORARY PERSONNEL POLICY – FAMILIES FIRST CORONAVIRUS RESPONSE ACT (FFCRA) TO VOLUNTARILY EXTE ND THE LEAVE BENEFIT S THROUGH MARCH 31, 2021 WHEREAS Section 3-3-1 of the Marana Town Code provides that the Town Coun- cil may adopt personnel rules, regulations and policies that follow the generally accepted principles of good personnel administration which the Council may modify or change from time to time; and WHEREAS the Town Council adopted Personnel Policies and Procedures via Town of Marana Ordinance 99.12 and Resolution 99 -38 on May 18, 1999, which have been amended from time to time; and WHEREAS the United States government declared a National Emergency related to the COVID-19 pandemic on March 13, 2020; and WHEREAS on March 17, 2020, the Town Council adopted Resolution No. 2020 - 029, approving a temporary personnel policy regarding employee leave and telework during the COVID-19 pandemic, and authorizing the Town Manager to implement fur- ther revisions to the temporary policy, consistent with generally ac cepted principles of good personnel administration and with general legal principles, as necessary in re- sponse to the evolving nature of the eme rgency; and WHEREAS on March 18, 2020, the Families First Coronavirus Response Act (FFCRA) was signed into law, which provides leave under the Emergency Paid Sick Leave Act (EPSLA) and the Emergency Family and Medical Leave Expansion Act (EFM- LEA) to assist employees during the Coronavirus Disease 2019 (COVID -19) global pan- demic, and is effective from April 1, 2020 through December 31, 2020; and WHEREAS effective April 1, 2020, in compliance with the federal law, the Town Manager implemented an Addendum to Temporary Personnel Policy Regarding Em- ployee Leave and Telecommuting, Temporary Personnel Policy - Families Firs t Corona- virus Response Act (FFCRA); and WHEREAS on August 18, 2020, the Town Council adopted Resolution 2020 -089 approving and ratifying the Temporary Personnel Policy –(FFCRA) with an expiration date of December 31, 2020; and Marana Study Session Meeting 01/12/2021 Page 5 of 45 Marana Resolution No. 20 21-001 -2 - WHEREAS the COVID-19 pandemic continues to affect Town employees due to illness, quarantines, and school and childcare closures; and WHEREAS on December 18, 2020, the Town Manager amended the Temporary Personnel Policy – FFCRA to extend the policy through January 12, 2021; and WHEREAS the Mayor and Council find that approving and adopting amend- ments to the Temporary Personnel Policy - Families First Coronavirus Response Act (FFCRA) is in the best interests of the Town and its employees. NOW, THEREFORE, BE IT RESOLVED BY THE MAYO R AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, THAT: SECTION 1. The Temporary Personnel Policy - Families First Coronavirus Re- sponse Act (FFCRA) is hereby amended as set forth in Exhibit A attached to and incor- porated by this reference in this resolution, with deletions shown with strikeouts and additions shown with double underlining.. SECTION 2. The Town’s manager and staff are hereby directed and authorized to undertake all other and further tasks required or beneficial to carry out the terms , ob- ligations, and objectives of the aforementioned temporary policy. The Town Manager is specifically authorized to implement further revisions to the temporary policy, consistent with generally accepted principles of good personnel administration and with general legal principles, as necessary in response to the evolving nature of the emergency. PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, this 12th day of January, 2021. Mayor Ed Honea ATTEST: Cherry L. Lawson, Town Clerk APPROVED AS TO FORM: Jane Fairall, Town Attorney Marana Study Session Meeting 01/12/2021 Page 6 of 45 Exhibit A to Marana Resolution No. 2021-001 00069731.DOC /10 -1 - Addendum to Temporary Personnel Policy Regarding Employee Leave and Tele work TEMPORARY PERSONNEL POLICY FAMILIES FIRST CORONAVIRUS RESPONSE ACT EFFECTIVE 4/1/20 – 3/31/211/12/21 Section 1 Policy A.In accordance with the Families First Coronavirus Response Act (FFCRA), the Town of Marana provides leave under the Emergency Paid Sick Leave Act (EPSLA) and the Emergency Family and Medical Leave Expansion Act (EFMLEA) to assist employees during the Coronavirus Disease 2019 (COVID -19) global pandemic. B.This polic y is effective from April 1, 2020 through March 31January 12, 2021. C.The provisions of this policy are not intended to conflict with or supersede federal law, nor should they be interpreted or construed to do so. If any provision of this policy conflicts with federal law, federal law shall control. D.If the FFCRA is not extended beyond December 31, 2020, the terms of this policy will govern through January 12, 2021. Section 2 Definitions In this policy, the following terms shall have the following meanings: A.Child care provider: A provider who receives compensation for providing child care services on a regular basis. 1.Child care provider includes a center-based child care provider, a group home child care provider, a family child care provider , or other provider of child care services for compensation that is licensed, regulated or registered under state law and satisfies the state and local requirements. 2.The eligible child care provider need not be compensated or licensed if he or she is a family member or friend, such as a neighbor, who regularly cares for the employee’s child. B.Emergency Paid Sick Leave: Paid leave under the Emergency Paid Sick Leave Act (EPSLA). C.Emergency responder: Marana Study Session Meeting 01/12/2021 Page 7 of 45 Exhibit A to Marana Resolution No. 2021-001 00069731.DOC /10 -2 - 1.All commissioned Marana Police Department (MPD) law enforcement officers . 2.All personnel in the MPD Communications Division. D.Expanded Family and Medical Leave: Leave under the Emergency Family and Medical Leave Expansion Act (EFMLEA). E.Place of care: A physical location in which care is provided for the employe e's child while the employee works. The physical location does not have to be solely dedicated to such care. Examples include day care facilities, preschools, before and after school care programs, schools, homes, summer camps, summer enrichment programs, and respite care programs . F.School: An elementary or secondary school. 1.“Elementary school” means a nonprofit institutional day or residential school, including a public elementary charter school that provides elementary education, as determined under state law. 2.“Secondary school” means a nonprofit institutional day or residential school, including a public secondary charter school that provides secondary education, as determined under state law, except that the term does not include any education beyond grade 12. G.Son or daughter: A biological, adopted, or foster child, a stepchild, a legal ward, or a child of a person standing in loco parentis , who is under 18 years of age, or who is 18 years of age or older but is incapable of self-care because of a mental or physical disability. Section 3 [reserved] Section 4 Emergency Paid Sick Leave Act (EPSLA) A.Eligibility 1.All Town of Marana employees are eligible for Emergency Paid Sick Leave, with some exceptions for emergency responders. 2.Emergency responder eligibility a.Emergency responders are eligible for Emergency Paid Sick Leave for the reasons listed in Section 4(C)(1) through (4). b.Emergency responders’ eligibility for Emergency Paid Sick Leave for the reasons listed in Section 4(C)(5) and (6) will be det ermined on a case-by-case basis taking into consideration the Department’s operational needs. If emergency responders are granted leave for either of these reasons, the Town Manager or Department Head may revoke the leave at any time based on changing oper ational needs . B.Emergency Paid Sick Leave Entitlement 1.Eligible full-time employees are entitled to 80 hours of Emergency Paid Sick Leave for the period of April 1, 2020 through March 31, 2021calendar year 2020 and for that portion of calendar year 2021 that this policy remains in effect. Employees will not receive a new allocation of 80 hours for calendar year 2021. 2.Eligible part-time employees are entitled to a number of hours equal to the number of hours that such employee works, on average, over a 2 -week period Marana Study Session Meeting 01/12/2021 Page 8 of 45 Exhibit A to Marana Resolution No. 2021-001 00069731.DOC /10 -3 - for the period of April 1, 2020 through March 31, 2021 calendar year 2020 and for that portion of calendar year 2021 that this policy remains in effect . Employees will not receive a new allocation of hours for calendar year 2021. C.Qualifying Reasons for Emergency Paid Sick Leave. Employees shall be permitted to use Emergency Paid Sick Leave when the employee is unable to work or telework for any of the following reasons: 1.The employee is subject to a federal, state, or local quarantine due to concer ns related to COVID-19 or is subject to any order from the federal, state or local government requiring the employee not to leave the employee’s residence. 2.The employee has been advised by a health care provider to self -quarantine due to concerns related to COVID-19. 3.The employee is experiencing symptoms of COVID -19 and seeking a medical diagnosis . 4.The employee is caring for an individual who is subject to an order as described in subparagraph 1 of this paragraph or for an individual who has been advised as described in subparagraph 2 of this paragraph. 5.The employee is caring for their son or daughter if the school or place of care of the son or daughter has been closed, or the child care provider of the son or daughter is unavailable due to COVID -19 precautions. 6.The employee is experiencing any other substantially similar condition as specified by the United States Secretary of Health and Human Services. D.Compensation 1.For qualifying reasons listed in Section 4(C)(1) through (3), Emergency Paid Sick Leave is c ompensated at the same hourly rate and with the same benefits, including health care benefits, as the employee normally earns during hours worked. Payment shall not exceed $511 per day and $5,110 in the aggregate. 2.For qualifying reasons listed in Section 4(C)(4) through (6), Emergency Paid Sick Leave is compensated at 2/3 the amount described in subparagraph 1 of this paragraph. a.Payment shall not exceed $200 per day and $2,000 in the aggregate. b.An eligible employee may use any accrued vacation, MTO, sick, or compensatory leave for the remaining 1/3 of the employee’s regular rate of pay to receive full pay while on Emergency Paid Sick Leave. 3.Part-time employees shall receive the pro-rated equivalent of this pay based on typical work schedule. Section 5 Emergency Family and Medical Leave Expansion Act (EFMLEA) A.Eligibility 1.All Town of Marana employees who have been employed by the Town for at least 30 calendar days are eligible for Expanded Family and Medical Leave, with some exceptions for emergency responders . 2.Emergency responders’ eligibility for Expanded Family and Medical Leave will be determined on a case-by-case basis taking into consideration the Department’s Marana Study Session Meeting 01/12/2021 Page 9 of 45 Exhibit A to Marana Resolution No. 2021-001 00069731.DOC /10 -4 - operational needs. If emergency responders are granted Expanded Family and Medical Leave, the Town Manager or Department Head may revoke the leave at any time based on changing operational needs . B.Expanded Family and Medical Leave Entitlement 1.Eligible employees are entitled to up to 12 weeks of Expanded Family and Medical Leave. 2.The employee must take the 12 weeks of Expanded Family and Medical Leave between April 1, 2020 and March 31January 12, 2021. 3.Any Expanded Family and Medical Leave taken by an employee will count towards the employee’s 12-week FMLA leave entitlement as set forth in Section 4-7-4 of the Town of Marana’s Personnel Policies and Procedures. C.Qualifying Reason for Expanded Family and Medical Leave . The employee is unable to work or telework due to a need to care for his or her son or daughter whose school or place of c are has been closed, or whose c hild care provider is unavailable, for reasons related to COVID -19. An eligible employee has need to take Expanded Family and Medical Leave for the purposes of this paragraph only if no suitable person is available to care for his or her son or daughter during the period of such leave. D.Compensation 1.The first two weeks (or 80 hours ) of Expanded Family and Medical Leave is unpaid leave. An eligible employee may elect to substitute Emergency Paid Sick Leave or any accrued vacation, MTO, sic k, or compensatory leave for unpaid leave. 2.The subsequent ten weeks (or 400 hours ) of Expanded Family and Medical Leave shall be paid at 2/3 of an employee’s regular rate of pay. a.The 2/3 pay described in this paragraph shall not exceed $200/day and $10,000 in the aggregate. b.An eligible employee may use any accrued vacation, MTO, sick, or compensatory leave for the remaining 1/3 of the employee’s regular rate of pay to receive full pay during Expanded Family and Medical Leave. 3.Part-time employees shall rec eive the pro-rated equivalent of this pay based on their typical work schedule. E.Return to Work. Employees returning from Expanded Family and Medical Leave are subject to the return to work provisions set forth in the Town of Marana’s Personnel Policies and Procedures Section 4-7-18. Section 6 Intermittent Leave A.A Department Head may allow an employee to take up to the entire entitlement of Emergency Paid Sick Leave or Expanded Family and Medical Leave intermittently to care for the employee's son or daughter whose school or place of care is closed, or whose child care provider is unavailable, because of reasons related to COVID -19. If approved, the employee may take the intermittent leave in any increment of time agreed to by the Department Head and the employee. Marana Study Session Meeting 01/12/2021 Page 10 of 45 Exhibit A to Marana Resolution No. 2021-001 00069731.DOC /10 -5 - B.If a Department Head approves intermittent leave in accordance with this Section, the Department Head may revoke the approval at any time based on changing operational needs. C.An employee may not take Emergency Paid Sick Leave intermittently if the leave is taken for any of the reasons specified in Section 4(C)(1) through (4) or (6). Once the employee begins taking Emergency Paid Sick Leave for one or more of those reasons, the employee must use the permitted days of leave consecutively until the employee no longer has a qualifying reason to take Emergency Paid Sick Leave. Marana Study Session Meeting 01/12/2021 Page 11 of 45 Exhibit A to Marana Resolution No. 2021-001 00069731.DOC /10 -6 - REVISION HISTORY DESCRIPTION OF CHANGE DATE OR REV Original Release Revision 4/1/2020 6/30/2020 REV Revision 8/5/2020 (Ratified by Council 8/18/2020 Resolution No. 2020-089) REV Revision 12/18/20 REV Revision (Approved by Council 1/12/2021 Resolution No. 2021-XXX) Marana Study Session Meeting 01/12/2021 Page 12 of 45 Exhibit A to Marana Resolution No. 2021-001 00069731.DOC /10 -7 - Caution: A copy of this Policy is an uncontrolled document. It is your responsibility to ensure you are using the current version. The electronic version is the only acceptable and controlled Policy. Marana Study Session Meeting 01/12/2021 Page 13 of 45 Extend Families First Coronavirus Response Act (FFCRA) Leave Benefits Marana Study Session Meeting 01/12/2021 Page 14 of 45 Background •March 13, 2020 -the United States government declared a National Emergency related to the COVID-19 pandemic •March 17, 2020 -Council adopted Resolution No. 2020-029, approving a temporary personnel policy regarding employee leave and telework during the COVID-19 pandemic •Resolution authorized the Town Manager to implement further revisions to the temporary policy as necessary in response to the evolving nature of the emergency Marana Study Session Meeting 01/12/2021 Page 15 of 45 Background •March 18, 2020 -the Families First Coronavirus Response Act (FFCRA) was signed into law •Provides protected leave under the Emergency Paid Sick Leave Act (EPSLA) and the Emergency Family and Medical Leave Expansion Act (EFMLEA) to assist employees during the Coronavirus pandemic •Effective April 1, 2020 through December 31, 2020 Marana Study Session Meeting 01/12/2021 Page 16 of 45 Background •April 1, 2020 -To wn Manager implemented an Addendum to Temporary Personnel Policy Regarding Employee Leave and Telecommuting, Temporary Personnel Policy -Families First Coronavirus Response Act (FFCRA) Marana Study Session Meeting 01/12/2021 Page 17 of 45 Background •August 18, 2020 –The Council adopted Resolution 2020-089 approving and ratifying the Temporary Personnel Policy - Families First Coronavirus Response Act (FFCRA) •The Temporary Personnel Policy approved by the Council expired on December 31, 2020 to mirror the expiration date set by the FFCRA Marana Study Session Meeting 01/12/2021 Page 18 of 45 Background •January 1, 2021 –Employers may voluntarily provide emergency paid sick leave or emergency paid FML as provided under FFCRA, but it is no longer required •Town employees continue to be impacted by COVID-19, due to illness or required quarantines, and due to school and childcare closures. Marana Study Session Meeting 01/12/2021 Page 19 of 45 Background •To bridge the gap between FFCRA expiration date of December 31, 2020 the first Council meeting in 2021, The Town Manager implemented a revised Temporary Personnel Policy extending the benefits of FFCRA through tonight’s meeting date •The proposed revisions to the Temporary Personnel Policy – FFCRA will extend the leave benefits provided to Town employees through March 31, 2021. Marana Study Session Meeting 01/12/2021 Page 20 of 45 Emergency Paid Sick Leave •Benefit Up to 80 hours of emergency paid sick leave when employee is unable to work or telework for any of the qualifying reasons •Qualifying Reasons for Emergency Paid Sick Leave The employee is subject to a quarantine due to concerns related to COVID- 19 or is subject to any order from the government requiring the employee not to leave the employee’s residence. The employee has been advised by a health care provider to self- quarantine due to concerns related to COVID-19. The employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis. Marana Study Session Meeting 01/12/2021 Page 21 of 45 Emergency Paid Sick Leave Qualifying Reasons for Emergency Paid Sick Leave (Cont’d) The employee is caring for an individual who is subject to an order as described in the previous slide or for an individual who has been advised as described in the previous slide. The employee is caring for their son or daughter if the school or place of care of the son or daughter has been closed, or the child care provider of the son or daughter is unavailable due to COVID-19 precautions. The employee is experiencing any other substantially similar condition as specified by the United States Secretary of Health and Human Services (HHS). Marana Study Session Meeting 01/12/2021 Page 22 of 45 Emergency Paid Sick Leave (EPSL) Benefit For qualifying reasons related to employee’s own condition, emergency paid sick leave is compensated at the same hourly rate as the employee normally earns during hours worked For qualifying reasons related to caring for another, childcare issues, or other similar circumstance as determined by HHS, emergency paid sick leave is compensated at 2/3 employee’s normal pay Marana Study Session Meeting 01/12/2021 Page 23 of 45 Emergency Family and Medical Leave Benefit All Town employees who have been employed at least 30 calendar days are eligible for up to 12 weeks of emergency Family and Medical Leave until March 31, 2021 Leave counts toward normal FMLA benefit of 12 weeks Qualifying Reasons for Emergency Family and Medical Leave The employee is unable to work or telework due to a need to care for their child whose school or place of care has been closed, or whose child care provider is unavailable due to COVID -19 Marana Study Session Meeting 01/12/2021 Page 24 of 45 Decision Points Allow Families First Coronavirus Response Act (FFCRA) benefits to be extended to eligible employees through March 31, 2021, without the allocation of 80 additional hours for the emergency paid sick leave, and extend the emergency family medical leave through March 31, 2021 Marana Study Session Meeting 01/12/2021 Page 25 of 45 Families First Coronavirus Response Act (FFCRA) Feedback and Questions Marana Study Session Meeting 01/12/2021 Page 26 of 45 Council-Study Session D2 Meeting Date:01/12/2021 To:Mayor and Council From:Yiannis Kalaitzidis, Finance Director Date:January 12, 2021 Strategic Plan Focus Area: Commerce,  Community,  Heritage,  Recreation,  Progress & Innovation Strategic Plan Focus Area Additional Info: Financial sustainability, quality public service, strategic partnerships and local resource investment are overriding principles of the Strategic Plan. Subject:Relating to Budget; presentation, discussion and direction regarding the framework for development of the fiscal year 2021-2022 budget and its role in the implementation of the Strategic Plan (Terry Rozema and Yiannis Kalaitzidis) Discussion: This item brings forward the framework for development of the fiscal year 2021-2022 budget as a tool for implementation of the Town's Strategic Plan. The Marana Strategic Plan is the Council's policy document for the future vision of the community. The initiatives and goals included within the Strategic Plan drive services and programs in future years which will be included in the annual budget documents. Current economic assessments show the economy performing better than anticipated overall, and in many cases better that last year, with some exceptions.  Staff will continue to monitor the markets and follow developments at both state and federal levels to assess the true potential impact to our economy. We will continue to maintain a thoughtful investment strategy that continues to place resources in areas that maintain or enhance core services. In addition, tonight’s presentation will provide a status overview of certain elements of the Strategic Plan and a preliminary outlook into major revenue sources. We will discuss key issues going into the fiscal year 2021-2022 budget, as well as any additional issues the Council wishes to discuss. Marana Study Session Meeting 01/12/2021 Page 27 of 45 Staff Recommendation: Presentation only. Suggested Motion: Council's pleasure. Attachments FY2021-2022 Budget Development Presentation Marana Study Session Meeting 01/12/2021 Page 28 of 45 FISCAL YEAR 2021-2022: BUDGET PLANNING January 12, 2021 Marana Study Session Meeting 01/12/2021 Page 29 of 45 BUDGET BRIEFING Strategic Plan, Vision & Focus Areas Current Year Accomplishments General Fund FY2022 Preliminary Outlook Council Discussion Items ITEMS FOR DISCUSSION 2Marana Study Session Meeting 01/12/2021 Page 30 of 45 BUDGET BRIEFING VISION: Committed to providing exceptional public service, a climate for economic sustainability and a welcoming environment that makes Marana a 5 Star Service organization. OVERRIDING PRINCIPLES: Financial Sustainability Quality Public Service Strategic Partnerships Local Resource Investment STRATEGIC PLAN 3Marana Study Session Meeting 01/12/2021 Page 31 of 45 BUDGET BRIEFING ACCOMPLISHMENTS &INITIATIVES Selected Accomplishments: Parks and Recreation Master Plan Airport LOMR and land rezone Water treatment campus construction Adonis Road Extension project construction COVID19 work transition and budgeting Marana subdivision recreational area requirements update & Subdivision Recreational Area Design Manual Adoption Upcoming Initiatives: 2040 General Plan Implementation Parks & Recreation Master Plan Approval and Implementation Land Development Code Update Critical Infrastructure Funding Federal Control Tower Program Pinal Airpark Annexation RTANext project coordination Maintain structurally balanced budget in wake of COVID19 Update Town of Marana Strategic Plan 4Marana Study Session Meeting 01/12/2021 Page 32 of 45 BUDGET BRIEFING Yiannis Kalaitzidis Finance Director BUDGET OUTLOOK 5Marana Study Session Meeting 01/12/2021 Page 33 of 45 BUDGET BRIEFING Key Forecasting Assumptions: Cautious projection of slow revenue growth Sales Tax: Modest increases to consumer spending and business growth Reduction in Hotel & Lodging Intergovernmental: Population growth of 2,270 or 4.6% (July 2019 to July 2020) License, Permits, & Fees: 850 new home permits and continued commercial activity Inflation Rate: 1.2% (YoY November 2020) FY2022 PRELIMINARY OUTLOOK Marana Study Session Meeting 01/12/2021 Page 34 of 45 BUDGET BRIEFING Sales Taxes High improvements in key areas (Year-Over-Year): Retail: 17.1% Utilities: 20.8% Construction: 58.4% Restaurants: 16.2% All Others: 21.1% FY2022 PRELIMINARY OUTLOOK 2021 Budget 2022 Prelim Budget $ Change % Change 24,389,464 29,511,356 5,121,892 21.0% $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0 Utilities Construction Restaurant & Bar All OtherMillionsHistoric Collections by Major Tax Category FY2020 FY21 Estimated FY21 Budget FY22 Projected $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 RetailMillions 7Marana Study Session Meeting 01/12/2021 Page 35 of 45 BUDGET BRIEFING Shared Revenues Improvements in revenues & Census population counts: Shared Sales Tax: 18.1% Shared Income Tax: -10% Auto Lieu Tax: 15.2% Will change based on March estimates by ADOR and US Census count FY2022 PRELIMINARY OUTLOOK 2021 Budget 2022 Prelim Budget $ Change % Change 13,435,743 14,034,329 598,586 4.5% 6.9% 10.2% -1.6% 7.8% 1.6% 4.6%4.4% -4% -2% 0% 2% 4% 6% 8% 10% 12% 2018 2019 2020 2021 2022 2023 2024 Arizona Revenue Growth * Data provided by JLBC Budget Update 10/08/2020 Actuals '18-‘20 Forecast '21-'24 8Marana Study Session Meeting 01/12/2021 Page 36 of 45 BUDGET BRIEFING FY2022 PRELIMINARY OUTLOOK Licenses, Permits & Fees Single Family Residential (SFR) permits: SFR’s –FY2021 Budgeted: 617 Thru Dec. 31st: 457 SFR’s –FY2022 Prelim. Budget: 850 2021 Budget 2022 Prelim Budget $ Change % Change 4,427,112 5,346,126 919,014 20.8% 559 687 794 802 855 457 617 0 100 200 300 400 500 600 700 800 900 2016 2017 2018 2019 2020 2021 2021Budget SFR Building Permits By Fiscal Year 9Marana Study Session Meeting 01/12/2021 Page 37 of 45 BUDGET BRIEFING FY2022 PRELIMINARY GENERAL FUND SUMMARY Revenues FY2021 Adopted Budget FY2022 Prelim Budget FY2022 $ Change FY2022 % Change Sales tax revenues $ 24,389,464 $ 29,511,356 $ 5,121,892 21.0% Shared revenue 13,435,743 14,034,329 598,586 4.5% Licenses, fees & permits 4,427,112 5,346,126 919,014 20.8% Other 2,384,071 2,000,000 (384,071)-16.1% Total Revenue 44,636,390 50,891,811 6,255,421 14.0% Summary FY2021 Adopted Budget FY2022 Prelim Budget FY2022 $ Change FY2022 % Change Ongoing 42,996,866 47,368,733 4,371,867 10.2% One-time 1,639,524 3,523,078 1,883,554 114.9% Total Revenue $ 44,636,390 $ 50,891,811 $ 6,255,421 14.0% Note 1: Sales tax revenue projections for FY2021 could change significantly based upon additional data received from ADOR. Additionally, by development agreement, 45% of monies collected from the Marana Center will be reimbursed back to the developer for public infrastructure. Note 2: Intergovernmental/shared revenue projections may change. Final budget will be based upon ADOR projections & US Census population estimates (~May 2021). 10Marana Study Session Meeting 01/12/2021 Page 38 of 45 BUDGET BRIEFING Preliminary new ongoing revenue $ 4,371,867 Preliminary Fiscal Impacts: Health insurance (10%)421,199 Workman's comp (5%)25,256 Team Performance Pay Increase (3%)882,000 Total impacts before other costs 1,328,455 Preliminary revenue available for other costs $ 3,043,412 GENERAL FUND: PRELIMINARY FISCAL IMPACTS No major anticipated changes to ASRS or PSPRS retirement contributions at this time 11Marana Study Session Meeting 01/12/2021 Page 39 of 45 BUDGET BRIEFING GENERAL FUND: FUND BALANCES •FY2021 Estimated Fund Balance: $47.5M •One-time resources which can provide: Liquidity, Flexibility, Capacity, among others 25.0 29.6 36.6 46.1 47.5 $0$5$10$15$20$25$30$35$40$45$50 2016-17 2017-18 2018-19 2019-20 2020-21 EstimatedMillionsGeneral Fund Reserve Balances by Fiscal Year Fund Balance 25% Reserve 12Marana Study Session Meeting 01/12/2021 Page 40 of 45 BUDGET BRIEFING Departments will submit pre-pandemic limited growth budgets (ongoing non-personnel) Increased ongoing budgets only when supported by: Increased program revenue Federal, State or other mandate One-time supplemental requests will be considered Reallocation of existing budget capacity within budget line items FY2022 –BASELINE BUDGETS 13Marana Study Session Meeting 01/12/2021 Page 41 of 45 BUDGET BRIEFING FY2022 BUDGET PROCESS KEY DATES Dates:Stage in Budget Process Description January 12, 2021 Planning Preliminary budget outlook & Council goals/objectives January 29,2021 Preparing Base department budgets and preliminary carryover requests due to Finance March 1 –12, 2021 Preparing Department budget presentations April 27, 2021 Reviewing Manager’s Recommended Budget May 18, 2021 Approving Presentation & adoption of Tentative Budget & Comprehensive Fee Schedule June 15, 2021 Approving Adoption of Final Budget 14Marana Study Session Meeting 01/12/2021 Page 42 of 45 BUDGET BRIEFING Terry Rozema Interim Town Manager PREPARING FOR FY2022 COUNCIL DISCUSSION 15Marana Study Session Meeting 01/12/2021 Page 43 of 45 BUDGET BRIEFING Community Needs Council strategic initiatives Key opportunities Other areas or items to consider COUNCIL DISCUSSION ITEMS 16Marana Study Session Meeting 01/12/2021 Page 44 of 45 DISCUSSION 17Marana Study Session Meeting 01/12/2021 Page 45 of 45