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HomeMy WebLinkAboutCouncil Study Session Agenda Packet 04-26-2022              MARANA TOWN COUNCIL STUDY SESSION NOTICE AND AGENDA 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers, April 26, 2022, 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 April 26, 2022, 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 Council Study Session Meeting April 26, 2022 Page 1 of 197 APPROVAL OF AGENDA   DISCUSSION/DIRECTION/POSSIBLE ACTION   D1 Relating to Budget; review, discussion, consideration, and direction to staff regarding the fiscal year 2022-2023 Manager's recommended budget for the Town of Marana (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 Council Study Session Meeting April 26, 2022 Page 2 of 197      Council-Study Session   D1        Meeting Date:04/26/2022   To:Mayor and Council Submitted For:Yiannis Kalaitzidis, Finance Director From:Yiannis Kalaitzidis, Finance Director Date:April 26, 2022 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 2022-2023 Manager's recommended budget for the Town of Marana (Terry Rozema and Yiannis Kalaitzidis) Discussion: The Town Manager and Finance Director will present the Town of Marana recommended comprehensive budget for fiscal year 2022-2023.  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 17, 2022. Staff worked to compile a comprehensive summary of the recommended budget which incorporates information presented in previous Council meetings.  The attached budget book presents the Town budget for all funds and includes departmental summaries with notes explaining major changes between fiscal years.  The summary also includes a section on operating capital and projects which provides brief descriptions of significant one-time items.  Lastly, it formally lists of significant items requested to be carried forward into the 2022-2023 recommended budget.  Staff anticipates that there will be adequate resources to support these carry forward requests. Staff has prepared a recommended budget of $226,436,973 for fiscal year 2022-2023. This budget reflects the careful allocation of the Town’s resources to Mayor Marana Council Study Session Meeting April 26, 2022 Page 3 of 197 and Council’s goals. Additionally, this budget continues to make significant investments in current employees, resources and tools, and strategic positions.  The budget has been structurally balanced with ongoing revenues used to fund ongoing expenditures. Total revenues anticipated for fiscal year 2022-2023 are $152,811,030 and include anticipated revenues from the American Rescue Plan Act and the State of Arizona. Fund balances will be utilized for one-time expenditures, carryover requests and capital projects.   The recommended budget reflects an increase of 27.15 full time equivalent (FTE) positions from 402.35 FTE positions in fiscal year 2021-2022 to 429.5 FTE positions recommended for fiscal year 2022-2023.  Two of the FTEs were added in February 2022, by Council approval, to support Development Services Department operations due to the significant growth in reviews and permits issuances. Positions were added in key areas that were determined to be necessary to the mission of local government and to continue to provide quality services to residents.  The proposed Capital Improvement Plan (CIP) totals $114,104,958 or 50%, of the recommended budget.  A copy of the recommended five-year CIP schedule is included in the attached recommended budget document. Staff Recommendation: Staff requests information and direction regarding the Manager's recommended budget for fiscal year 2022-2023, which will be incorporated into the tentative budget for Council's consideration on May 17, 2022. Suggested Motion: 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 17, 2022. Attachments Town of Marana - FY2022-2023 Manager's Recommended Budget Town of Marana - FY2022-2023 Mngrs Recommended Budget Presentation Marana Council Study Session Meeting April 26, 2022 Page 4 of 197 Marana Council Study Session Meeting April 26, 2022 Page 5 of 197 Marana Council Study Session Meeting April 26, 2022 Page 6 of 197 TABLE OF CONTENTS Table of Contents .........................................................................................................................1 Manager’s Message ....................................................................................................................3 Budget Summary ........................................................................................................................ 11 Recommended Investments .................................................................................................... 17 Governmental Funds Budget Summary .................................................................................. 25 Special Districts Budget Summary ............................................................................................ 42 Enterprise Funds Budget Summary ........................................................................................... 47 Internal Service Funds Budget Summary ................................................................................. 57 Department Budget Summaries ............................................................................................... 59 Capital Improvement Plan ..................................................................................................... 123 Operating Capital & Projects ................................................................................................ 133 Carry-Forward Requests ......................................................................................................... 141 Authorized Personnel .............................................................................................................. 145 1Marana Council Study Session Meeting April 26, 2022 Page 7 of 197 2Marana Council Study Session Meeting April 26, 2022 Page 8 of 197 FISCAL YEAR2022-2023 TOWN MANAGER’S Recommended Budget Message Honorable Mayor and Council: I am pleased to present to you the comprehensive Fiscal Year (FY) 2022-2023 Manager’s Recommended Budget for the Town of Marana (Town). This recommended budget reflects the Town of Marana’s commitment to responsible fiscal policy, stewardship of public monies, and long-term sustainable financial planning. Each year during the budgeting process, we closely examine our goals and accomplishments. We do this to ensure that allocations align with need, and the priorities identified by the Town Council. In the past year, we have seen many accomplishments across the five Focus Areas of our Strategic Plan: Commerce, Community, Innovation, Heritage, and Recreation all of which have helped give Marana a competitive edge. Fiscal year 2023 is an exciting time for the Town of Marana. As we continue to move forward, we will identify additional goals and accomplishments and closely monitor our performance to ensure the needs of the community are met at the highest possible level of service. Commerce In fiscal year 2022, the Town has not only seen higher than anticipated projections and collections for key revenue streams that fund essential services, but also, significant wins in commercial and retail development around the community. Major existing employers in the Town, are currently expanding the footprint of their operations. Roche Tissue Diagnostics is currently expanding its footprint along Tangerine Road by adding a 60,000 square foot facility, directly next to its current facility. This expansion will add 140 jobs to the community and completion is scheduled for this summer. PVB Fabrication’s new corporate headquarters is under construction. The new 105,000 square foot facility, located in north Marana, will add an additional 169 jobs and will have an $83M economic impact over five years. Additionally, Amazon, located at the intersection of Ina Road and Silverbell Road, broke ground this fiscal year on its new facility. The 220,000 square foot facility is expected to add 500 new jobs to the region and will have a $423M economic impact over five years. The Marana Center at Twin Peaks Road continues to be an attractive destination for new businesses. Recent commercial projects include the addition of Springhill Suites, American Furniture Warehouse, Luke Dealership and QuikTrip. New shopping opportunities throughout Town include the addition of a Filiberto’s 3Marana Council Study Session Meeting April 26, 2022 Page 9 of 197 Mexican Food, Starbucks, and Great Clips. In summary, we can see that Marana continues to be an attractive destination for businesses to locate, expand, and grow, whether they are commercial or retail in nature. The Town also continues to focus on the development of Downtown Marana. Marana Main Street will capture the traditional look and feel of a vibrant downtown district. In fiscal year 2022, the new Northwest Fire District Administration building was completed, which, over time will bring more than 200 jobs to Downtown Marana. Projects currently underway include the installation of a prominent piece of public art at the roundabout and a Dutch Bros’s. Marana Regional Airport continues to be a valuable asset to the community, and we have seen significant accomplishments in its growth and activities over the year. Marana Regional Airport currently has approximately 358-based aircraft, 208 storage hangars, and 28 shade ports, all at 100% occupancy, with a 25+ aircraft waiting list. The airport also sees over 98,000 operations per year, and has a diverse mix of aircraft, parachuting operations, and other aeronautical-related activities. The continued increase in the number of operations created the need for a tower to enhance airport safety and security. The Town is now working through the siting study for the tower and construction is slated to begin by fiscal year 2025. The Financial Aviation Administration (FAA) will fund 91.06% of the project and 100% of the labor costs, while the Town and Arizona Department of Transportation (ADOT) will each fund a 4.47% share. Additional projects underway include the design for reconstruction of east and west hangar apron and an upgrade of the runway lights to LED. Both projects will be mainly funded through federal and state grants. Community Over the last ten years, the Town of Marana has shown significant growth, leading as the fastest- growing city in Southern Arizona. In order to support the demand in new growth and expansion, the Town continues to invest in its future through strategic infrastructure investments. This year, we have seen the completion of significant projects around the Town, which continue to show the Town’s dedication to enhanced levels of service and safety to our community. Several public projects were completed within the Town’s infrastructure. Projects include the Camino de Oeste Road reconstruction, which improved the right-of-way landscaping and added a multi-use path that connects to the path at Tangerine Road, the Marana Road and Sanders Road restoration, and over 81 lane miles of roadway was maintained through our ongoing Payment Preservation Program. In FISCAL YEAR 2023, we will continue to invest in our future with important capital projects. Current ongoing high priority projects include the widening of Tangerine Road east of I-10 and Twin Peaks Road west of Silverbell. The Town of Marana is committed to providing a safe and reliable multi-modal transportation system. This year, the Town is embarking on the preparation of a 20-year Transportation Master Plan that will engage the community and create a roadmap for providing an appropriate multi- modal transportation plan. 4Marana Council Study Session Meeting April 26, 2022 Page 10 of 197 Water quality is an issue that continues to take center stage on national, state, and local levels. At the Town of Marana, we are always thinking of ways to not only provide the best quality drinking water to our customers, but to ensure continuous water resources far into the future. The Town is currently working with Metro Water and Oro Valley Water Department on the Northwest Recharge, Recovery, and Delivery System project. This project will enable the Partners to recover their stored CAP water that has been stored at the Avra Valley Recharge Project (AVRP) and transport it to their respective service areas. Several capital improvement projects have been identified to expand our water and waste water infrastructure and accommodate existing growth in north Marana. The North Marana Sewer Project will add 24-27 inch gravity pipes along Barnett Road, Sanders Road, and Sagerbrush Road; the Tangerine Road 16-inch Water Line Project will extend from Interstate-10 to an existing reservoir east of the freeway; the Marana Park Well and Reservoir Project will install new well and reservoirs at Ora Mae Harn District Park. Lastly, to ensure Marana’s continued development, staff is currently working on updating the Town of Marana Strategic Plan. This planning document has been updated several times since 2008 to best reflect the goals of the community. Strategic Plan V will establish our vision as an organization committed to providing exceptional public service and will be used as a guide for day-to-day operations, as we continue to ensure the sustained, long-term success of Marana. Innovation Innovation is at the heart of everything we do. From our innovative and dedicated workforce, to day to day practices and Town-wide strategies, Innovation allows us to deliver the best services to our residents and customers in the most efficient and transparent manner possible. This year, the Town moved to a new internet connection that has increased bandwidth by 2000% and provides redundancy. This is critical as the Town is moving more and more applications to the Cloud. Additionally, to prevent cyber security attacks, Technology Services has implemented next generation firewalls to better secure our network perimeter, allowing us to more readily block traffic from malicious countries and entities. Our Technologies Services team continues to find the best solutions to ensure uninterrupted services throughout our departments. Development Services also contributed by standardizing applications, forms and checklists and converting them to electronic submittals and fillable forms. This has enabled Development Services to keep up with the increase of development reviews and to continue delivering a high level of services. Heritage Marana’s heritage and history are near and dear to us all, including our Staff and the community at large. By prioritizing Heritage as a focus area, we seek to preserve our roots, while using it as a guide as we look to the future of growth and development. This year, our Signature Events came back and were well attended. These events included the Star Spangled Spectacular, Marana Founders’ Day, and the Holiday Festival and Christmas Tree Lighting. 5Marana Council Study Session Meeting April 26, 2022 Page 11 of 197 This year the Town Council adopted the Town’s first Neighborhood Preservation Ordinance. Marana’s Community Development and Neighborhood Services Development Department is responsible for the oversight of neighborhood revitalization and owner-occupied housing rehabilitation. Through this initiative Town departments work together to develop programming that responds to the needs of the community and respects the character of existing neighborhoods. We also continue to embrace Marana’s film heritage, by leveraging the assets of the Town’s destination marketing organization, Discover Marana. The Marana Film Office continues to engage with the film community to bring filming opportunities to Marana. Recreation Parks and Recreation is an essential cornerstone to any healthy and thriving community. Our main objective is to provide a wide variety of recreational opportunities to suit our community’s needs. After a brief pause, due to COVID restrictions, the Parks and Recreation Department came back full force this year with new programming and event offerings. This year, the Parks and Recreation Department has worked with developers to construct two new-lighted soccer fields at Gladden Farms Community Park. The addition of these two fields to the Parks and Recreation inventory will greatly increase the number of teams who will participate in activities that use diamond shaped fields that can be accommodated in Marana. We are always improving our trails and connectivity. This year, the Central Arizona Project (CAP) Trailhead opened with a ribbon cutting ceremony. Project partners from CAP, Pima County, and the Bureau of Reclamation, joined the Town of Marana to celebrate this new highly accessible outdoor amenity. A new community center has been a topic of conversation for the last few years. This year, the Town is excited to begin design for a state-of-the-art community and aquatics facility for our residents to enjoy for generations to come. This new 50,000+ square foot Community Center, and a year-round aquatics facility will include a competition pool and a recreation pool. These facilities were identified as priorities during the extensive Master Plan process, which recorded more than 6,000 contacts with residents. The goal is to complete the design process in fiscal year 2023. Other major Parks and Recreation projects in fiscal year 2023 include the new Saguaro Bloom Community Park, which will contain two playgrounds, a dog park, lighted tennis and basketball courts, walking paths, and open turf area. Closing The recommended spending plan detailed in this budget proposal considers these accomplishments as a guide for future goals. As we move into fiscal year 2023, we are happy to see a strong financial position to meet the diverse challenges we may face in the future. As 6Marana Council Study Session Meeting April 26, 2022 Page 12 of 197 Marana succeeds and grows, it will need to continue to invest strategically while continually innovating to deliver the best service to its residents and customers. This budget demonstrates a commitment to that vision, and to the tenets of the Strategic Plan and the well-being of our community. Thank you, Respectfully, Terry S. Rozema Town Manager 7Marana Council Study Session Meeting April 26, 2022 Page 13 of 197 8Marana Council Study Session Meeting April 26, 2022 Page 14 of 197 BUDGET SUMMARY 9Marana Council Study Session Meeting April 26, 2022 Page 15 of 197 10Marana Council Study Session Meeting April 26, 2022 Page 16 of 197 Town of Marana Budget Summary The Manager’s Recommended Budget for fiscal year 2022-2023 (FY2023) totals $226.4 million. The summary includes expenditure budget appropriations for all Town funds and Specials Taxing district funds and reflects the Town’s return to a baseline budget that reverses many budget reductions enacted in the prior year due the anticipated impacts of the pandemic. Overall, the recommended budget of $226.4 million represents an increase of $67.5 million as compared to the current year adopted budget of $158.9 million. Better than anticipated economic growth, low unemployment, and the addition of remaining federal relief funds from the American Rescue Plan Act (ARPA) have allowed the Town to make strategic investments in both infrastructure and personnel. The FY2023 recommended budget reflects significant capital investments sooner than anticipated to help advance key park, road, water, sewer, and public safety projects. Recognizing town employees are the most important asset of the organization, the recommended budget makes significant investments into personnel utilizing the results of a recently completed compensation study. Through a combination of performance, merit and retention-based increases, as well as the addition of new positions, the Town will remain competitive within the region and continue to be able to provide residents with high-quality services. Operating expenditures continue to be a significant category for the Town at $95.0 million or 42% of the total budget for FY2023. Primarily due to continued strong growth within the Town and in surrounding areas, capital outlay comprises the largest portion of the annual budget at $118.6 million or 52%. Operating, $95.0M 42% Capital Outlay, $118.6M 52%Debt Service, $12.9M 6% Expenditure by Category$226.4 Million 11Marana Council Study Session Meeting April 26, 2022 Page 17 of 197 Major expenditures within the $95.0 million recommended operating budget are personnel and benefits at 53%, which include all salaries and benefits for Town staff. Changes in this category include retention, merit increases, and other pay adjustments as part of the implementation of a compensation study. Personnel and benefits costs also include the addition of 27.15 new positions (FTEs) across multiple departments. While benefits and pension contributions did not increase this year, the budget includes a one-time $6.0 million contribution to the Public Safety Personnel Retirement System (PSPRS) that will reduce the Town’s unfunded liability by 1/3 and produce annual savings that will be reinvested into future annual contributions to help eliminate the unfunded liability ahead of the scheduled date of 2036. Operating supplies & equipment and contracted services comprise 26% and 21% of the operating budget. Amounts in these areas include additional funds for expanded programs but also cover overall cost of increases resulting from higher costs for a number of goods services due to inflation. Contingency appropriations have remained unchanged at $5.0 million. A summary of the Town’s budget by fund type is presented below. More detailed information on each fund category presented below is available in this document. Personnel and Benefits, $50.3M 53% Contracted Services, $19.5M 21% Operating Supplies & Equipment, $25.2M 26% Operating Budget by Line Item $95.0 Million 12Marana Council Study Session Meeting April 26, 2022 Page 18 of 197 Summary of All Town Funds & Special Districts Recommended Budget Fiscal Year 2023 Primary Entity 2022 Adopted 2023 Recommended $ Change % Change General Fund 55,152,321$ 72,726,793$ 17,574,472$ 31.90% Special Revenue Funds 10,568,485 10,488,072 -80,413 -0.80% Capital Projects Funds 36,518,156 69,958,272 33,440,116 91.60% Debt Service Funds 5,908,375 6,405,137 496,762 8.40% Enterprise Funds 32,664,211 56,414,314 23,750,103 72.70% Internal Service Funds 5,067,470 5,289,950 222,480 4.40% Primary Entity 145,879,018 221,282,538 75,403,520 51.70% Component Units Special Districts 13,036,512 5,154,435 -7,882,077 -60.50% Total 158,915,530$ 226,436,973$ 67,521,443$ 42.50% Fiscal year 2022-2023 highlights by fund types: • General Fund – Overall the General Fund budget is increasing by $17.6 million. Notable factors for this change include: o Personnel & benefits increasing by $10.9 million due to a $6.0 million one-time payment toward the PSPRS unfunded pension liability, and pay increases for retention, merit increases, and other pay adjustments as part of the implementation of a compensation study. Also, the budget includes just over 24 new positions (FTEs) (including 2 FTEs added mid-year in fiscal year 2021-2022) across multiple departments. o The second and final payment from ARPA funding to the Town is anticipated during the beginning of fiscal year 2022-2023. The total amount of approximately $16.4 million is shown as a transfer out to be utilized for water and water reclamation capital projects. o Carry-over funding is included in the current year budget due to delays in a number of projects funded by the General Fund, but also due to a number of vehicles which will likely not be delivered until fiscal year 2022-2023 due to ongoing supply chain disruptions. • Capital Projects Funds – Capital projects budgeted in fiscal year 2022-2023 consist of facilities, transportation, parks and utility projects which align with the Town’s goals of providing quality, high level services and amenities to our growing community. These projects include the Community and Aquatics Center, Tangerine Road Widening to I-10, the Marana Park Reservoir and Well, and Sewer Conveyance Expansion. 13Marana Council Study Session Meeting April 26, 2022 Page 19 of 197 Detail on all capital projects planned for fiscal year 2022-2023 may be found in the Town’s Capital Improvement Plan available in this document. • Enterprise Funds – New rate studies approved by Council in fiscal year 2019-2020 restructured and increased rates in both the Water and Water Reclamation funds. Rate increases will be applied each January until 2024. Rapid growth has outpaced the rate study, which is necessitating the hiring of additional positions beyond what was approved in the study. As a result, the current year budget includes 3.4 new positions (FTEs) which are being proposed in the Water and Water Reclamation funds to provide support to operations and for the ongoing maintenance of the Town’s utility assets. Overall, Enterprise fund budget increases are due to a number of large capital projects including the Northwest Recharge and Recovery Distribution system (NWRRDS) and the Marana Park Reservoir and Well projects. Funding, mainly provided by state and federal sources, for current year capital projects includes a variety of projects including the Airport capital projects, and the NWRRDS project. Funding for the latter is anticipated to be available from the recently approved American Rescue Plan Act (ARPA), rate revenues and impact fees, as a significant portion of the project is growth related. Detail on all capital projects planned for fiscal year 2022-2023 may be found in the Town’s Capital Improvement Plan available in this document. • Special Districts – The decrease is associated with budget capacity for new debt issuances for Community Facility Districts requested in the prior year to fund the acquisition of eligible infrastructure. No such debt issuances are anticipated until fiscal year 2023-2024. 14Marana Council Study Session Meeting April 26, 2022 Page 20 of 197 RECOMMENDED INVESTMENTS 15Marana Council Study Session Meeting April 26, 2022 Page 21 of 197 16Marana Council Study Session Meeting April 26, 2022 Page 22 of 197 Recommended Investments The following outline describes several of the Town’s investments into identified priority areas. The General Fund’s contributions to these are detailed below. These investments represent changes in costs that are included within the Tentative Budget, the summaries of which are presented later in the document. I. Employee Compensation and Benefits Investment - $10.9 million increase a. Positions and performance pay adjustments - $3.7 million  Compensation Study adjustments inclusive of: 1. Up to 4.0% team performance adjustment 2. 2.0% retention pay adjustment.  New positions – 27.15 FTEs (23.75 in General Fund, 2 of which were FY2022 Council approved mid-year additions) b. Other pay and benefits:  Includes health, retirement, disability insurance, etc. 1. Employee Retirement Contributions – $7.0 million increase (including $6.0 million contribution to PSPRS to reduce the unfunded liability) 2. Worker’s Compensation - $48,722 increase ($38,786 from General Fund) 3. Health Insurance & other benefits – no increases are planned for premium rates. Increased expenses here are associated with new positions and enrollment changes 4. Tuition Reimbursement program – retained at $25,000 5. Holiday and on-call overtime – paid at time and a half when worked as per the Town’s administrative directives II. Resources and Tools Investment - $7.1 million ($5.8 million General Fund) a. Vehicle & equipment purchases $3.7 million ($3.1 million General Fund). Much of this budgeted amount reflects the use of replacement dollars set aside in previous fiscal years 17Marana Council Study Session Meeting April 26, 2022 Page 23 of 197 and demonstrates the Town’s commitment to ensure employees have safe, reliable vehicles and equipment needed to provide a high level of service. The remainder is primarily for new vehicles and equipment related to new positions and the expansion of services. b. Transportation  Transportation Master Plan - $320,000 (General Fund) c. Technology  Permitting/Licensing software - $275,000 (General Fund)  Computer replacements - $150,000 (General Fund) d. Development Services  Master Plan – per 2040 General Plan - $300,000 (General Fund)  iPlan Tables for Plan Examiners - $90,000 (General Fund) e. Facilities  Furniture replacement - $150,000 (General Fund)  Civic Center Dr., Electrical improvements - $270,500 (General Fund)  MMC & MOC remodels, HVAC, and other equipment replacements - $327,000 (General Fund)  MMC Generator Upgrade - $800,000 (General Fund)  MOC Roof & HVAC replacement - $300,000 (General Fund) f. Recreation  Resurfacing Splash Pad - $130,000 (General Fund)  40 Foot Christmas Tree - $200,000 (General Fund) g. Water Department  Sand Filter Compression replacement and filter rehab - $210,000  Saguaro Bloom Lift Station Grinder - $185,000 III. Strategic Positions The Recommended Budget includes the addition of 27 positions, while eliminating the previously vacant position of Assistant Town Manager. The following table shows the change in authorized positions by FTE over the past four fiscal years. FY2020 FY2021 FY2022 FY2023 Budgeted FTE 375.35 377.35 402.35 429.5 Position change from previous year 11.40 2 25 27.15 Percentage change from previous year 3% 0.5% 6.6% 6.7% 18Marana Council Study Session Meeting April 26, 2022 Page 24 of 197 The following table lists the new full time equivalent (FTE) positions added: Working Position Title FTE Department Funding Source Police Officer 3.00 Police General Fund Sergeant 1.00 Police General Fund Detective 2.00 Police General Fund Irrigation Control Technician 1.00 Parks General Fund Maintenance Associate III 1.00 Parks General Fund Visual Communications Designer 1.00 Town Manager General Fund Tech Services Deputy Director 1.00 Tech Services General Fund Tech Support Specialist I 1.00 Tech Services General Fund Construction Inspector 1.00 Public Works General Fund Facilities Compliance Specialist 1.00 Public Works General Fund Lead Fleet Tech 1.00 Public Works General Fund Project Manager 1.00 Public Works General Fund Engineering Specialist 1.00 Development Services General Fund Environmental Specialist 1.00 Development Services General Fund Development Coordinator* 1.00 Development Services General Fund Business Process Supervisor* 1.00 Development Services General Fund Customer Service Representative 1.00 Finance General Fund Payroll Technician 1.00 Finance General Fund Procurement - Buyer 1.00 Finance General Fund Accounting Associate** 0.25 Finance General Fund Systems Administrator 1.00 Human Resources General Fund Animal Control Officer 0.50 Community & Neigh. General Fund Conservation Specialist I 1.00 Water Water Fund Civil Engineer/Hydraulic Modeler 1.00 Water Water Fund Water Billing Specialist** 0.40 Water Water Fund Reclamation Operator II 1.00 Water Reclamation Water Fund Total FTE Changes 27.15 * Fiscal year 2021-2022 Council approved midyear additions. ** Position increased to a full FTE from part-time position 19Marana Council Study Session Meeting April 26, 2022 Page 25 of 197 The addition of key positions is critical in maintaining service levels. This is especially important in a fast- growing community like Marana. The Town is adding a large number of positions to respond to the rapid and unexpected growth experienced in the last few years. Positions added this year include those that serve the public directly, such as Police Officers, Public Works and Parks maintenance employees, as well as support services positions, in central services departments like Finance, Human Resources and Tech Services to allow for efficient and uninterrupted operations of our ever-growing Town. The addition of 3.4 FTEs in the Water Department will provide needed office support and also help monitor and maintain Town utility assets and provide additional development related services and long-term hydraulic modeling. The positions reflect the fast growth and increasing needs of the department, including in the area of water planning and conservation. Mid-year FTE Position Change Summary Several changes happened during the year that help advance the Town’s Strategic Plan. Transfer, reclassifications, renaming of positions and other mid-year FTE changes are summarized by position title and department in the following table: Previous Position Title Previous Department Revised Position Title Revised Department Town Engineer Town Manager Town Engineer Public Works Graphics Designer Town Manager & Econ. Develop. Visual Communications Designer Town Manager & Econ. Develop. Special Events Coordinator Town Manager Special Events Coordinator Parks Paralegal Legal Senior Legal Assistant Legal Network Administrator Tech Services Senior Network Administrator Tech Services Business Process Supervisor Development Services Development Services Analyst Development Services Permit Clerk Development Services Permit Technician Development Services Development Coordinator Development Services Permit Technician Development Services Senior Executive Assistant Development Services Permit Technician Development Services Police Lieutenant Police Telecommunications Manager Police Crime Analyst Police Senior Crime Analyst Police 20Marana Council Study Session Meeting April 26, 2022 Page 26 of 197 Previous Position Title Previous Department Revised Position Title Revised Department Maintenance Associate III Public Works Public Works Supervisor Public Works Engineering Specialist Public Works Senior Engineering Specialist Public Works Custodian II Public Works Lead Custodian Public Works Custodian I Public Works Custodian Public Works Business Process Manager Parks Business Process Supervisor Parks Irrigation Control Specialist Parks Irrigation Control Technician Parks Water Business Services Coordinator Water Water Business Services Supervisor Water Water Business Services Analyst Water Water Business Services Manager Water Water Quality Supervisor Water Chief Water Quality Operator Water Civil Engineer Water CIP Engineering Division Manager Water 21Marana Council Study Session Meeting April 26, 2022 Page 27 of 197 22Marana Council Study Session Meeting April 26, 2022 Page 28 of 197 GOVERNMENTAL FUNDS BUDGET SUMMARY 23Marana Council Study Session Meeting April 26, 2022 Page 29 of 197 24Marana Council Study Session Meeting April 26, 2022 Page 30 of 197 Governmental Funds Budget Summary General Fund The following General Fund summary is structurally balanced (i.e. ongoing revenues support ongoing services and programs). Of the amounts included below, $54.4 million represents ongoing costs and $34.0 million represents one-time costs, excluding $5.0 million of contingency. Contingency appropriations may only be used with Council approval. Summary of General Fund Recommended Budget Fiscal Year 2023 Revenues FY2022 Budget FY2023 Recommended $ Change % Change Sales tax revenues 30,950,841$ 36,215,052$ 5,264,211 17.0% Intergovernmental revenues 14,620,322 24,157,211 9,536,889 65.2% Licenses, fees & permits 5,843,300 8,633,000 2,789,700 47.7% Charges for services 609,500 807,000 197,500 32.4% Fines and forfeiture 391,500 391,500 - 0.0% Grants and contributions 187,000 154,100 (32,900) -17.6% Investment income 508,508 150,000 (358,508) -70.5% Miscellaneous revenues 624,371 626,871 2,500 0.4% Total Revenue 53,735,342 71,134,734 17,399,392 32.4% Expenditures Personnel & benefits 34,223,577 45,147,004 10,923,427 31.9% Contracted services 6,761,864 9,139,906 2,378,042 35.2% Operating supplies & equip 5,307,410 6,814,293 1,506,883 28.4% Capital outlay 3,859,470 6,602,590 2,743,120 71.1% Debt Service - 23,000 23,000 100.0% Contingency 5,000,000 5,000,000 - 0.0% Total Expenditures 55,152,321$ 72,726,793$ 17,574,472$ 24.2% Over/(Under)(1,416,979)$ (1,592,059)$ (175,080) 12.4% Other Sources and (Uses) Transfers out (4,286,035) (20,719,476) (16,433,441) 383.4% Total Sources and (Uses)(4,286,035) (20,719,476) (16,433,441) 383.4% Change in fund balance (5,703,014) (22,311,535) (16,608,521) 291.2% 25Marana Council Study Session Meeting April 26, 2022 Page 31 of 197 The following describes major changes between fiscal years: Revenues Sales tax revenues – Anticipated overall tax revenue increase of 17.0% includes anticipated double digit increases for retail sales, and restaurant sales taxes while other categories continued to grow at a reasonable rate. The year on year change is the combined result of a reasonably conservative budget in the prior year and a largely unanticipated strong economy fueled by multiple federal relief packages which spurred rapid growth in many economic sectors. Considering recent economic events, including increases in interest rates and the prospect of slower growth, the fiscal year 2022-2023 budget is relatively flat when compared to forecasted fiscal year end 2021-2022 sales tax revenues. The majority of increase in revenues is attributed to the retail sales tax category. Intergovernmental revenues – Shared revenue estimates are based on HB2483, which authorizes the State of Arizona to utilize annual Federal Census population estimates as the basis for allocating state shared revenues to Arizona cities and towns. The intergovernmental revenue estimates shown above is based upon preliminary estimates developed by Town staff based on recent trends, as the League of Arizona Cities has not yet provided estimates for Urban Revenues, State Shared Sales tax and Vehicle License tax. Shared State Sales tax and Urban Revenue Sharing are budgeted to increase by 14.9% and 8.2%, respectively, as compared to the fiscal year 2021-2022 budget. Vehicle License taxes are anticipated to decrease slightly by 3.6% due to continued supply chain disruptions that continue to result in fewer sales of vehicles that historically have resulted in growth in this category. The above revenue estimates may be revised in the coming weeks as the League works to obtain updated information and further guidance from the Arizona Department of Transportation and the Department of Revenue. Fiscal year 2022-2023 intergovernmental revenues include the second and final distribution of ARPA funding in the amount of approximately $8.2 million. The total amount to be received by the Town is anticipated to be just below $16.4 million and will be used toward water and water reclamation projects. Licenses, fees & permits – The majority of this revenue is attributable to single family residential permits (SFR’s) and other commercial activity which has been very strong in recent months. Budgeted SFRs for fiscal year 2022-2023 are estimated at 1,250, which is lower than the amount anticipated by then end of fiscal year 2021-2022. This estimate reflects recent industry trends, including rising interest rates, as well as information received from various members of the home building industry indicating a continued shortage of housing which combined with Town’s location near the highway should continue to benefit home building activity during next fiscal year. Charges for services revenue – This revenue stream is primarily comprised of user fees the Town charges for specific services rendered. An overall increase is primarily attributed to increased activity for plat and development reviews. 26Marana Council Study Session Meeting April 26, 2022 Page 32 of 197 Fines and forfeiture – Based on recent trends this item remained unchanged for fiscal year 2022-2023. Investment income – Investment revenues are projected to stabilize and begin increasing next year due to rising interest rates. The budgeted decrease in fiscal year 2022-2023 is attributed to no budget assigned for dividends from our insurance risk pool which. While still possible, the Town has no indication this will be received next year as in prior years. Expenditures In general, increases to expenditures represent a baseline budget that includes a number of projects and capital purchases that will allow departments to continue their mission of providing quality services to residents. Personnel and benefits – The increases in personnel costs of 31.6% are primarily due to the following factors: o $6.0 million contribution which will pay down 1/3 of the PSPRS unfunded liability. o Pay increases for retention, merit increases, and other pay adjustments as part of the implementation of a compensation study. o A FY2022 mid-year addition of 2 FTE in development services to handle the growth and volume associated with development activity. o The addition of 22 new FTEs in multiple departments and the increase of a part time position to a full time FTE (.25 FTE increase) that will support Town operations, maintain Town assets and provide services to residents. Health benefit premium contribution rates remain unchanged from the prior year while pension contributions are overall slightly lower due to phenomenal investment returns experienced by the pension plans in the prior year. Contracted services – Beyond normal year on year increases due to the increase in market costs, budgeted increases of 35.2% to contracted services are primarily associated with one-time planned projects like the development of a Master Plan identified in the 2040 General Plan, additional funding for technology services and resources, an update to the Town’s website and funding for a new permitting and business license system. Funding was also included for new court furniture and a remodel of the lobby desk which will increase safety and usability. A number of HVAC and other facility equipment maintenance projects are budgeted for the MMC and MOC locations. Restricted budget amounts that may be used under specific circumstances are also included within this category (i.e. costs for an unplanned election). Operating supplies & equipment – Increases are due to a number of factors including higher expenses for special events, including the one-time purchase of a new Christmas tree, but also for new and 27Marana Council Study Session Meeting April 26, 2022 Page 33 of 197 expanded events such as concerts in the park. Increases are also budgeted related to the Town’s Job Creation Incentive Program. Other increases have been incorporated to reflect recent market conditions (i.e. higher fuel, utility costs, etc.), and costs related to new positions being added in multiple departments. Capital outlay – Costs associated with capital outlay increased primarily due to a combination of new and ongoing funding for projects and vehicles. Vehicle purchases exceed $3.0 million and include a number of planned vehicle replacement, vehicles for new employees, as well as a large number of vehicles ordered in FY2022, which will likely not be delivered until FY2023 due to continued supply chain disruptions. Also included are several projects such as the MMC Building waterproofing and drainage improvements and the MPD (Dispatch) Console modernization which are continuing into the new fiscal year. New projects such as a new MMC generator and roof replacement at the MOC will ensure the continued uninterrupted operations of the Town while performing timely maintenance to the Town’s physical assets. Transfers out – In addition to required debt service transfers, the General Fund budget for FY2023 includes $16.4 million in ARPA funding to be used toward water and water reclamation projects. Transfers are also included for planned Airport capital projects and operating subsidies, as well as cash matches for potential grant awards. Also budgeted is a transfer to the Water and Wastewater Funds for debt service payments. Change in Fund Balance The General Fund is structurally balanced with ongoing expenses financed with ongoing revenues. Reserves are, by definition, a one-time resource which can only be deployed toward one-time projects and programs. Utilization of $22.7 million of reserve balances is primarily related to three factors. The first being a contingency appropriation of $5.0 million that may be used only by Council approval. Secondly, the $16.4 million of ARPA money received in the General Fund is budgeted to be transferred to the water and water reclamation funds. The third factor is related to one-time request for projects and purchases, some of which were budgeted in the prior fiscal year and are slated for completion in fiscal year 2022- 2023. 28Marana Council Study Session Meeting April 26, 2022 Page 34 of 197 The following charts present the overall General Fund sources and uses of projected resources. Sales tax revenues, $36.2 Intergovernmental revenues, $24.2 Licenses, fees & permits, $8.6 All other revenues, $2.1 Fund Balance Use, $22.3 FY2023-2023 General Fund - Sources (in millions) Personnel & benefits , $45.1 Contracted services, $9.1 Operating supplies & equip, $6.8 Capital outlay, $6.6 Contingency, $5.0 Transfers out, $20.7 FY2022-2023 General Fund - Uses (in millions) 29Marana Council Study Session Meeting April 26, 2022 Page 35 of 197 General Fund Balance and Available Reserves 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 years. The Town General Fund reserve balances have increased substantially in recent fiscal years due to a combination of conservative budgeting and strong unanticipated revenue growth. Additionally, approximately $8.2 million of fund balance since fiscal year 2020-2021 is directly related to ARPA funding which is planned to be used for water and water reclamation projects in fiscal year 2022-2023. The fiscal year 2022-2023 ending fund balance is estimated to be $67.6 million with the current proposed budget. As mentioned above, reserves are, by definition, a one-time resource which can only be deployed toward one-time projects and programs. Often the nature of these one-time project uses is beyond the normal operating capital needs of the organization. Often times, the use of reserves may advance one or more important initiatives. Town staff is in the process of developing a plan to deploy available balances with feedback from Council. The following chart depicts the Town’s Target Reserve and additional reserves that may be used for such initiatives. Amounts other than the Target Reserve are available for uses beyond those proposed in the current General Fund budget for fiscal year 2022-2023. 25.0 29.6 36.6 46.1 71.4 90.0 67.6 $0 $20 $40 $60 $80 $100 2016-17 2017-18 2018-19 2019-20 2020-21 2021-2022 Estimated 2022-23 BudgetedMillionsGeneral Fund Balance Fund Balance 25% Reserve 30Marana Council Study Session Meeting April 26, 2022 Page 36 of 197 * Estimated ending balances based on projections The proposed fiscal year 2022-2023 budget includes a contingency amount of $5.0 million which is available upon Council approval to address any unanticipated events during the year and provide flexibility to Town operations. Historically, the majority of contingency amounts remain unspent. The amount of available reserves assumes contingency amounts are fully utilized. Amounts owed to the General Fund In past years, the General Fund has provided funding to other Town funds in order to facilitate the construction of projects which promoted growth or supported Town operations. This support has been given to the Town’s municipal airport where money owed to the General fund has been consistently reduced over the last few years. Further, repayment of $3.1 million in funding provided to the Wastewater Fund for the construction of infrastructure under a protected facility agreement continues with approximately $2.7 million anticipated outstanding at the end of fiscal year 2021-2022. $8.9 $9.3 $10.3 $11.0 $11.2 $11.8 $11.2 $13.4 $17.8 $9.7 $7.0 $7.9 $8.6 $14.6 $24.3 $41.5 $58.6 $41.7 $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 F/Y 2015 F/Y 2016 F/Y 2017 F/Y 2018 F/Y 2019 F/Y 2020 F/Y 2021 F/Y 2022*F/Y 2023*MILLIONSGENERAL FUND RESERVES Target Reserve Available 31Marana Council Study Session Meeting April 26, 2022 Page 37 of 197 Special Revenue Funds 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 2023 Revenues FY2022 Budget FY2023 Recommended $ Change % Change Sales revenues 1,243,341$ 1,338,158$ 94,817$ 7.6% Total Revenue 1,243,341$ 1,338,158$ 94,817 7.6% Expenditures Personnel & benefits 144,916$ 153,008$ 8,092$ 5.6% Contracted services 859,891 932,242 72,351 8.4% Operating supplies & equip 238,534 252,908 14,374 6.0% Total Expenditures 1,243,341$ 1,338,158$ 94,817 7.6% Over/(Under)-$ -$ -$ 0.0% Change in fund balance - - - 0.0% The following describes major changes between fiscal years: Revenues Sales tax revenues – The anticipated bed tax revenue increase represents the continued recovery from the significant negative impact to the hospitality industry from the pandemic. Revenue projections for FY2023 have been tempered for a potential slowdown as relief packages have mostly expired and persistent inflationary costs might impact this sector. Staff continues to monitor data on hotel occupancy rates and revenues and may adjust the current forecast if deemed necessary. 32Marana Council Study Session Meeting April 26, 2022 Page 38 of 197 Expenditures Personnel & benefits – The increase is attributed to compensation adjustments as a result of a compensation study being implemented in fiscal year 2023. Contracted services – The increase is for the updated of the Town’s Discover Marana Website. This is a one-time expense. Operating supplies & equipment – The changes in operating costs represent budget appropriations for development agreement rebates anticipated to be higher due to the higher revenues. 33Marana Council Study Session Meeting April 26, 2022 Page 39 of 197 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 2023 Revenues FY2022 Budget FY2023 Recommended $ Change % Change Intergovernmental revenues 3,912,106$ 4,218,697$ 306,591$ 7.8% Investment income 5,000 5,000 - 0.0% Total Revenue 3,917,106$ 4,223,697$ 306,591$ 7.8% Expenditures Contracted services 3,775,948$ 3,939,894$ 163,946$ 4.3% Operating supplies & equip 435,000 489,050 54,050 12.4% Capital outlay 137,600 929,750 792,150 575.7% Total Expenditures 4,348,548$ 5,358,694$ 1,010,146 23.2% Over/(Under)(431,442)$ (1,134,997)$ (703,555)$ 163.1% Change in fund balance (431,442) (1,134,997) (703,555) 163.1% The following describes major changes between fiscal years: Revenues Intergovernmental revenues – The HURF shared revenue estimate (intergovernmental revenues) is based on HB2483. 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 estimate prepared by Town staff and the League of Arizona Cities and Towns based on prior year population estimates and anticipated revenue trends. Therefore, the revenue estimate presented in the summary above could still change as the League works to obtain additional information on this revenue source. 34Marana Council Study Session Meeting April 26, 2022 Page 40 of 197 Expenditures Contracted services – The increase in contracted services is mainly attributable to one-time funding for repairs needed at Thornydale Bridge CDO Wash. Carry over funding from fiscal year 2021-2022 in the amount of $300,000 is also included due to anticipated delays in the Town’s pavement preservation program which are anticipated to be completed early in fiscal year 2022-2023. The Town’s pavement preservation program includes $1.5 million of funding in fiscal year 2022-2023. Furthermore, funding received in prior years from private parties to pay for planned preservation work is included in the budget. Operating supplies & equipment – The increase is primarily attributed due to the reclassification of budget capacity from the Contracted Services line item to more accurately reflect the nature of certain expenditures (small tools and equipment, utility costs and other supplies). Additional funding is also included in anticipation of higher fuel costs. Fiscal year 2022-2023 continues to include restricted funding for potential monsoon related damages or other emergency purchases in the amount of $200,000. Capital outlay – Capital outlay is primarily associated with the replacement and purchase of vehicles and equipment required to maintain the Town’s roads and right-of-way. Fiscal year 2022-2023 requests amount to just over $600,000 for the purchase of a Grader and a number of vehicles and equipment all of which are replacing existing aging equipment that are beyond their useful life. Capital Improvement funding in the amount of $330,000 is also included toward the ADA Compliance Program and for the design of irrigation improvements along Tangerine Farms Road. Changes in fund balance – Similar to the General Fund, HURF is structurally balanced with ongoing expenses financed with ongoing revenues. The reduction in fund balance is primarily due to one-time funding being used for the purchase of the vehicles mentioned above, the use of funding received in prior years from private parties to pay for pavement preservation work on their behalf, carry over funding for the pavement preservation program and restricted funding that may be used for potential monsoon related damages or other emergency purchases. 35Marana Council Study Session Meeting April 26, 2022 Page 41 of 197 All Other Special Revenue Funds Other Special Revenue Funds include funds that account for a variety of grants and contributions including the Community Development Block and Affordable Housing grants, and public safety special revenue funds for the Town’s Police Department and the Magistrate Court, including Racketeer Influenced and Corrupt Organizations Act funds (RICO), impound fees and various court fees, which are required to be kept in separate funds by Arizona Revised Statutes and grant agreements. Historically, the majority of revenues and expenses in these funds are provided by outside sources, with small amounts contributed by the General Fund to comply with grant matching requirements. Summary of All Other Special Revenue Funds Recommended Budget Fiscal Year 2023 Revenues FY2022 Budget FY2023 Recommended $ Change % Change Intergovernmental revenues 3,267,019$ 2,789,817$ (477,202)$ -14.6% Fines and forfeiture 78,500 78,500 - 0.0% Grants and contributions 386,135 462,436 76,301 19.8% Investment income 5,000 5,000 - 0.0% Miscellaneous revenues 45,000 10,000 (35,000) -77.8% Total Revenue 3,781,654 3,345,753 (435,901) -11.5% Expenditures Personnel & benefits 1,430,452$ 756,253$ (674,199)$ -47.1% Contracted services 351,537 252,062 (99,475) -28.3% Operating supplies & equip 2,844,607 2,782,905 (61,702) -2.2% Capital outlay 350,000 - (350,000) -100.0% Total Expenditures 4,976,596$ 3,791,220$ (1,185,376) -23.8% Over/(Under)(1,194,942)$ (445,467)$ 749,475 -62.7% Other Sources and (Uses) Transfers in 100,000 100,000 - 0.0% Total Sources and (Uses)100,000 100,000 - 0% Change in fund balance (1,094,942) (345,467) 749,475 -68.4% 36Marana Council Study Session Meeting April 26, 2022 Page 42 of 197 The following describes major changes between fiscal years: Revenues Intergovernmental revenues – These revenues account for both anticipated and unanticipated grant award revenues. Fiscal year 2022-2023 revenues have been adjusted to account for grant funding which is anticipated to be renewed while also including a reasonably healthy amount for unanticipated awards as we often experience both new awards and unanticipated additional funding allocations to existing awards. Expenditures Personnel & benefits – Costs here account for grant funded salaries and related costs associated with a variety of grants such as the Vehicle Theft Taskforce grant, Drug Enforcement Agency, High Intensity Drug Trafficking Area, Counter Narcotics Alliance and School Resource Officers (SRO). Amounts may fluctuate from one year to the next based on anticipated grant award funding availability. Amounts have been adjusted to reflect baseline amounts of anticipated grant award renewals. Contracted services – Decreases primarily account for prior year one-time expenses from the Police Impound fund for radio system upgrades for motorcycles. Amounts reflect anticipated grant award amounts for fiscal year 2022-2023. Operating supplies & equipment – The budget amount is primarily available for other unanticipated grants in order to allow the Town flexibility to accept grant awards that have may become available on a first-come, first-served basis during fiscal year 2022-2023. A portion of the budget is for anticipated ongoing expenses out of non-grant award funds. Capital outlay – Amounts here reflect prior year budget from the Court’s Local Technology fund for the construction of the Jury Court Room completed in fiscal year 2021-2022. 37Marana Council Study Session Meeting April 26, 2022 Page 43 of 197 Capital Projects Funds The Town’s Capital Projects Funds are utilized for many of the projects presented in the Town’s Capital Improvement Plan. Capital Projects Funds include funds that account for Impact fees, construction sales taxes (Transportation Fund and Downtown Reinvestment Fund), and funding provided by outside sources like the Pima Association of Governments, Pima County and private parties to be utilized for the construction and acquisition of capital projects. Summary of Capital Projects Funds Recommended Budget Fiscal Year 2023 Revenues FY2022 Budget FY2023 Recommended $ Change % Change Sales tax revenues 7,728,500$ 12,978,500$ 5,250,000$ 67.9% Intergovernmental revenues 9,449,000 16,328,783 6,879,783 72.8% Licenses, fees & permits 2,925,821 3,579,780 653,959 22.4% Grants and contributions - 17,500 17,500 100.0% Investment income 50,000 50,000 - 0.0% Total Revenue 20,153,321 32,954,563 12,801,242 63.5% Expenditures Contracted services 425,000$ 425,000$ -$ 0.0% Operating supplies & equip 1,208,482 850,066 (358,416) -29.7% Capital outlay 34,884,674 68,666,706 33,782,032 96.8% Debt Service - 16,500 16,500 100.0% Total Expenditures 36,518,156$ 69,958,272$ 33,423,616 91.5% Over/(Under)(16,364,835)$ (37,003,709)$ (20,622,374) 126.0% Other Sources and (Uses) Transfers in 50,000 50,000 - 100.0% Transfers out (2,080,584) (2,082,168) (1,584) 0.1% Total Sources and (Uses)(2,030,584) (2,032,168) (1,584) 0.1% Change in fund balance (18,395,419) (39,035,877) (20,623,958) 112.1% 38Marana Council Study Session Meeting April 26, 2022 Page 44 of 197 The following describes major changes between fiscal years: Revenues Sales tax revenues – The increase is primarily related to the establishment of the Half Cent Sales Tax fund approved by Council in fiscal year 2021-2022 for the design and construction of the Community and Aquatics Center project. This is partially offset by lower, yet still strong, construction sales tax revenues in the Transportation fund. Intergovernmental revenues – These revenues account for funding provided by outside sources including Pima County and private parties to be utilized for the construction and acquisition of capital projects. The increase from the prior year is primarily due to funding from the RTA to be used for the Tangerine Road Widening, Phase 2A project. Revenues include federal award funding passed through the Pima Association of Governments for the signal planned on Dove Mountain Blvd. and Moore Road. Licenses, fees & permits – This revenue is attributable to impact fees collected from the issuance of permits. Budgeted single family residential permits (SFR) for fiscal year 2022-2023 are 1,250. The increase in revenues reflects the anticipated continued strong interest by the home building industry, which has been tempered from fiscal year 2021-2022 trends in anticipation of the impact of higher interest rates and high home prices. Permit issuance estimates were prepared from information received from various members of the home building industry along with anticipated lot availability. When combined with the Town’s proximity to the highway along with land availability, new single-family residential development should continue to be attractive over the next fiscal year. Grants and contributions – These revenues are associated with a TABY grant awarded to the Town by the Pima Association of Governments (PAG) for artwork that is anticipated to be installed in early fiscal year 2022-2023. Transfers-in – The amount of $50,000 presents the continued repayment of $2.35 million due to the Transportation fund from the Wastewater fund borrowed for the construction of the Water Reclamation facility. Expenditures Contracted services – Amounts here provide budget capacity for potential consulting fees to assist with development opportunities of the downtown area. Budget is primarily associated with payments under a development agreement anticipated to materialize during fiscal year 2022-2023. All amounts are budgeted in the Downtown Reinvestment fund. Operating supplies & equipment – Costs here account for developer agreement reimbursements to Cottonwood Properties Inc. and Pulte Home Corporation made out of the Town’s Transportation fund. Amounts reimbursed are dependent on actual construction sales taxes collected within the 39Marana Council Study Session Meeting April 26, 2022 Page 45 of 197 development areas covered by the agreements. The decrease largely reflects the anticipated completion of the Lazy K Ranch development. Capital Outlay – Costs account for a variety of Transportation and impact fee funded projects. Amounts may fluctuate from one year to the next based on a variety of factors, including funding availability, which projects were completed in prior years and anticipated needs on Town infrastructure. Additional information on the projects included is available in the Town’s Capital Improvement Plan included in this document. Debt Service – Costs reflect professional fees paid for the investment of cash out of the various capital projects funds. Transfers out – Amounts transferred from impact fees and Transportation fund revenues toward the maintenance of debt service payments on financing used to construct Town infrastructure. The amounts reflect cash flows required for scheduled payments in early July of 2023 for the Series 2017B debt. 40Marana Council Study Session Meeting April 26, 2022 Page 46 of 197 Debt Service Funds Debt service funds are used to account for the accumulation of resources for, and the payment of, general long-term principal and interest. The Town’s funds account for the payments of several prior year debt issuances and refunding of revenue bonds, including Series 2013, Series 2014 and Series 2017. Funding, in the form of transfers in, is provided from a variety of sources including General Fund, Transportation, and Impact Fee Fund revenues. There have been no issuances of Town obligated debt since 2017. Amounts below fluctuate based on funding needs to maintain existing debt payments. The increase in debt service expenditures is due to a schedule increase related to the Series 2017 debt issuance. Transfers-in are adjusted to reflect cash flows needed for the scheduled debt service payments due in July of 2023. Summary of Debt Service Funds Recommended Budget Fiscal Year 2023 Expenditures FY2022 Budget FY2023 Recommended $ Change % Change Debt Service 5,980,375$ 6,405,137$ 424,762 7.1% Total Expenditures 5,980,375$ 6,405,137$ 424,762 7.1% Over/(Under)(5,980,375)$ (6,405,137)$ (424,762)$ 7.1% Other Sources Transfers in 6,499,808 6,354,466 (145,342) -2.2% Total Sources and (Uses)6,499,808 6,354,466 (145,342) -2.2% Change in fund balance 519,433 (50,671) (570,104) -109.8% 41Marana Council Study Session Meeting April 26, 2022 Page 47 of 197 Special Taxing Districts (Districts) Special Taxing Districts include several Community Facilities Districts (CFD) and the Tangerine Farms Road Improvement District (Tangerine ID). CFDs levy property taxes to pay for bonds issued to finance the acquisition and construction of public infrastructure benefiting the district and to pay costs of issuance related to the bonds and certain maintenance and operations costs. The Tangerine ID accounts for special assessments collected by the property owners of the district to pay for bonds issued to finance the acquisition and construction of infrastructure improvements and to pay costs of issuance related to the bonds. Summary of Special Taxing District Funds Recommended Budget Fiscal Year 2023 Revenues FY2022 Budget FY2023 Recommended $ Change % Change Property Taxes 1,702,353$ 2,086,010$ 383,657$ 22.5% Grants and contributions 2,664,488 2,020,059 (644,429) -24.2% Miscellaneous revenues 70,000 - (70,000) -100.0% Total Revenue 4,436,841 4,106,069 (330,772) -7.5% Expenditures Contracted services 62,350$ 99,750$ 37,400$ 60.0% Operating supplies & equip 1,160,889 1,386,000 225,111 19.4% Capital outlay 7,200,000 - (7,200,000) -100.0% Debt service 4,613,273 3,668,685 (944,588) -20.5% Total Expenditures 13,036,512$ 5,154,435$ (7,882,077) -60.5% Over/(Under)(8,599,671)$ (1,048,366)$ 7,551,305 -87.8% Other Sources and (Uses) Bond proceeds 7,675,000 - (7,675,000) -100.0% Total Sources and (Uses)7,675,000 - (7,675,000) -100.0% Change in fund balance (924,671) (1,048,366) (123,695) 13.4% 42Marana Council Study Session Meeting April 26, 2022 Page 48 of 197 The following describes major changes between fiscal years: Revenues Property taxes – These revenues account for taxes levied on property owners within the boundaries of each CFD. The change is attributed to increases in property assessed valuations as compared to the prior fiscal year. Tax rates levied by the CFDs are not anticipated to change in fiscal year 2022-2023 for any of the Districts. Grants and contributions – These revenues account for special assessments charged to the property owners within the Tangerine ID. Amounts increased from the prior fiscal year as we anticipate fewer pre-paid assessments during fiscal year 2022-2023 within the District boundaries. Miscellaneous revenues – These revenues account for potential developer contributions needed to cover debt service payment amounts beyond the max targeted tax rate of $2.50. Reductions from the prior year reflect the strong growth in property valuations. Amounts contributed by developers depend on the rate of collections from property taxes as well as the ultimate amount and the structure of new debt that may be approved at the discretion of the District Board. No new debt is planned for fiscal year 2022-2023. Expenditures Operating supplies & equipment – Costs here account for the operations and maintenance of the Districts. The majority of the budget appropriation represents maintenance reserves for the Gladden Farms and Saguaro Bloom CFDs. The increase from the previous year is for administrative service charges for the Tangerine Farms Road Improvement District. These charges used to be recorded in a special revenue fund, but have been moved to the Special District fund as they related specifically to the servicing of the outstanding debt. Also, funds may be used toward the maintenance of District assets as allowed by an intergovernmental agreement between the corresponding District and the Town. Capital outlay – Costs account for the purchase of infrastructure paid through new debt financing issued by the District. There are no planned acquisitions in fiscal year 2022-2023 and as a result no corresponding anticipated debt issuance to pay for such an acquisition. In the prior year, debt was issued for the Gladden Farms, Phase II and Saguaro Bloom CFDs. Debt service – The decrease in debt service payments is attributed to a decrease in anticipated pre- paid special assessments from property owners in the Tangerine Farms Road ID and to reduced cost of issuance expenses as not there are no new debt issuances anticipated for fiscal year 2022-2023. Bond proceeds –There are no plans for new debt issuance in fiscal year 2022-203. 43Marana Council Study Session Meeting April 26, 2022 Page 49 of 197 44Marana Council Study Session Meeting April 26, 2022 Page 50 of 197 ENTERPRISE FUNDS BUDGET SUMMARY 45Marana Council Study Session Meeting April 26, 2022 Page 51 of 197 46Marana Council Study Session Meeting April 26, 2022 Page 52 of 197 Enterprise Funds Budget Summary Water Funds (Operating, Capital and Impact Fee) The primary revenues for the Water Operating Fund are for charges for water delivered and sold to customers. As such, it is set up and operates as a stand-alone enterprise fund. Impact fees are used for water capital improvement projects and debt service payments and thus are presented as part of the Water enterprise fund. Summary of Water Funds Recommended Budget Fiscal Year 2023 Revenues FY2022 Budget FY2023 Recommended $ Change % Change Charges for services 7,723,232$ 7,856,634$ 133,402$ 1.7% Intergovernmental revenues 6,027,550 2,804,469 (3,223,081) 100.0% Licenses, fees & permits 4,846,137 7,424,860 2,578,723 53.2% Grants and contributions 139,160 157,278 18,118 13.0% Investment income 5,000 5,000 - 0.0% Miscellaneous revenues 116,500 116,500 - 0.0% Total Revenue 18,857,579 18,364,741 (492,838) -2.6% Expenditures Personnel & benefits 2,799,225$ 3,206,561$ 407,336$ 14.6% Contracted services 2,633,696 2,221,391 (412,305) -15.7% Operating supplies & equip 2,495,288 2,700,504 205,216 8.2% Capital outlay 9,112,286 27,537,985 18,425,699 202.2% Debt Service 1,501,773 1,894,030 392,257 26.1% Total Expenditures 18,542,268$ 37,560,471$ 19,018,203 102.6% Over/(Under)315,311$ (19,195,730)$ (19,511,041) -6187.9% Other Sources and (Uses) Transfers in 1,838,955 8,349,471 6,510,516 354.0% Transfers out (2,154,183) (4,359,880) (2,205,697) 102.4% Loan proceeds - 8,931,250 8,931,250 100.0% Total Sources and (Uses)(315,228) 12,920,841 13,236,069 -4198.9% Change in fund balance 83 (6,274,889) (6,274,972) -7560207% 47Marana Council Study Session Meeting April 26, 2022 Page 53 of 197 The following describes major changes between fiscal years: Revenues Charges for services – Charges for services, or rate revenues are the main source of revenue for the Water Fund. Rate revenues are solely based on the existing rate structure plus new account growth. These rates were re-structured and increased in January 2020, 2021 and 2022 based on a water rate study approved by Council. The slight increase in revenues includes a planned increase in rates as per the water study, while adjusting for commodity revenues which have been trending lower than anticipated. Furthermore, the department anticipates continued account growth in fiscal year 2022- 2023 due to sustained new home construction. Intergovernmental revenues – This revenue includes funding for Federal grants passed through WIFA, which if awarded to the Town will allow for the construction of several infrastructure projects. Prior year amounts reflected similar funding from ARPA, which are reflected as part of the transfers in line item in the current budget. License fees & permits – Changes in this revenue source are related to an anticipated growth in inspections but primarily due to higher than normal impact fee collections associated with significant new home construction in benefit areas served by the Town’s utility. Miscellaneous revenues – The amount in this category represents administrative related revenues for resources expended by the Water Fund in the operation of water reclamation facilities. Transfers in – Amounts are associated with transfers from the General Fund to the Water Fund and the Water Impact Fee fund for WIFA debt service payments for the WIFA loans and for intra-fund transfers for the funding of water capital projects. Includes $4.3 million of American Rescue Plan Act (ARPA) funds being transferred in to the Water Capital Fund for the Northwest Recharge and Recovery Distribution System project (NWRRDS). Loan proceeds – A portion of NWRRDS will be funded through impact fees which have not yet been collected. As such, financing in the form of a loan is being planned to allow for timely completion of the project. Additionally, WIFA loan proceeds of $1.0 million (much of it forgivable) is budgeted for the Marana Park Reservoir project. Expenditures Personnel & benefits – Budgeted increases are primarily attributed to compensation adjustments as a result of a compensation study being implemented in fiscal year 2023, as well as the addition of two new positions and an increase of an existing part-time position to a full-time FTE that will help continue to provide quality service to customers and deal with the ever-increasing volume of work. New positions include a Civil Engineer and a Water Conservation Specialist I. The latter will only be funded for the second half of the year. 48Marana Council Study Session Meeting April 26, 2022 Page 54 of 197 Contracted Services – This category includes the majority of the Water Fund’s maintenance and rehabilitation programs. Decrease is primarily due to a reduction in sampling related amounts, which are being adjusted to a proper level after experiencing the first full year of the water treatment plant operations. Restricted funding continues to be included in case of emergencies caused by a well failure which would require the department to haul water in order to continue providing services. Operating supplies & equipment – Water Operating Fund expenses in this category increased primarily due to higher costs for water rights (CAP, CAGRD). Also, a portion of the increase is due to higher costs for chlorine as a result of inflation. Capital outlay – This category includes the purchase and replacement of vehicles and equipment necessary to provide services as well as water related capital improvement projects. For fiscal year 2022-2023 funding is carried over for the purchase of one vehicle needed to support a new Water Operator position hired in the prior fiscal year due to delivery delays. Funding continues to be set aside in the Water Capital Fund to assist with vehicle replacement purchases in the future. The increase is primarily associated with a number of planned capital projects including NWRRDS, some of which will only move forward pending the availability of grant or developer funding. For more details please refer to the Town’s Capital Improvement Plan. Debt service – The increase in debt service for fiscal year 2022-2023 is due to budget capacity toward potential debt issuance costs to provide financing for the NWRRDS project, as half of the project is funded by impact fees which have not yet been collected. Change in Fund Balance The Water Operating Fund budget includes a deficit balance. The deficit in the current operating budget consists of restricted funding to be used only in case of emergency caused by a well failure which would require the department to haul water in order to continue providing service to existing customers. Also, existing rate user funds in the amount of $2.25 million are programmed toward the NWRRDS project. The remaining portion is prior year funding, primarily from impact fees, carried over for the completion of other capital projects including the Marana Park Reservoir and Well projects. 49Marana Council Study Session Meeting April 26, 2022 Page 55 of 197 Water Reclamation Funds (Operating, Capital & Impact Fee) The primary revenues for the Water Reclamation Operating Fund are for customer charges to deliver and treat sewer flows at 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. Impact fees are used for water reclamation capital improvement projects and debt service payments and thus are presented as part of the Water Reclamation enterprise fund. Summary of Water Reclamation Funds Recommended Budget Fiscal Year 2023 Revenues FY2022 B udget FY2023 Recommended $ Change % Change Charges for services 2,341,902$ 2,923,375$ 581,473$ 24.8% Licenses, fees & permits 2,529,873 4,054,026 1,524,153 60.2% Grants and contributions 30,807 25,439 (5,368) 100.0% Investment income 2,000 500 (1,500) -75.0% Total Revenue 4,904,582 7,003,340 2,098,758 42.8% Expenditures Personnel & benefits 618,590$ 761,337$ 142,747$ 23.1% Contracted services 888,800 1,447,983 559,183 62.9% Operating supplies & equip 365,306 381,511 16,205 4.4% Capital outlay 6,781,221 9,587,562 2,806,341 41.4% Debt Service 873,165 866,998 (6,167) -0.7% Total Expenditures 9,527,082$ 13,045,391$ 3,518,309 36.9% Over/(Under)(4,622,500)$ (6,042,051)$ (1,419,551) 30.7% Other Sources and (Uses) Transfers in 809,070 14,947,040 14,137,970 1747.4% Transfers out (1,360,710) (3,397,880) (2,037,170) 149.7% Total Sources and (Uses)(551,640) 11,549,160 12,100,800 -2193.6% Change in fund balance (5,174,140) 5,507,109 10,681,249 -206.4% 50Marana Council Study Session Meeting April 26, 2022 Page 56 of 197 The following describes major changes between fiscal years: Revenues Charges for services – Charges for services, or rate revenues are the main source of revenue for the Water Reclamation Fund. Rate revenues are solely based on new account growth and rates charged to customers. These rates were increased in January 2020, 2021 and 2022 based on a waste water rate study approved by Council. The increase in revenues is due to significant account growth in fiscal year 2022-2023 from new home construction as well as the increase in rates. Licenses permits & fees – This revenue is primarily comprised of impact fees. The change is primarily due to higher than normal impact fee collections associated with significant new home construction in benefit areas served by the Town’s utility. Expenditures Personnel & benefits – The change between fiscal years is primarily related to compensation adjustments as a result of a compensation study being implemented in fiscal year 2022-2023 as well as the addition of a new Water Reclamation Operator II needed for plant operations due to the continued strong growth and increased plant flows. Contracted Services – The increase is attributed to additional funding for one-time and ongoing system repairs, upgrades and rehabilitation that will help ensure the continued and uninterrupted system operations. Funding is also included for a sewer master plan and legal services. Operating supplies and equipment – This category accounts for the majority of costs to operate the water reclamation facility. The increase is primarily due inflationary costs for operating supplies. Capital outlay – In the operating fund, this category includes the purchase and replacement of vehicles, equipment and infrastructure necessary to provide services, such a vehicle for the new Water Reclamation Operator II position. In the capital and impact fee funds, this category includes budget for capital improvement projects. The overall Increase is associated with funding for capital projects in fiscal year 2022-2023, and reflect anticipated cost increases for the sewer conveyance system expansion which is necessary to sustain growth and new housing developments. Funding for the project is provided through a combination of ARPA and impact fee funds. Debt service – The fiscal year budget includes projected debt service on the portions of the 2017 Series bonds attributable to the WRF expansion to 1.5MGD as well as WIFA loans for repairs to the collections system in the Adonis neighborhood. 51Marana Council Study Session Meeting April 26, 2022 Page 57 of 197 Transfers-out – The increase is primarily due funding provided from the Water Operating fund to the Water Capital fund for the system maintenance projects including the addition of a screw press at the WRF plant, the Saguaro Bloom Generator Replacement and the Rillito Vista Lift Station upgrade projects. Transfers-out also include $50,000 being transferred to the Transportation fund toward the repayment of $2.4 million borrowed for the construction of the Water Reclamation facility and ongoing planned transfers from the impact fee fund for the servicing of debt. Change in Fund Balance The Water Reclamation Operating Fund is structurally balanced with ongoing expenses financed with ongoing revenues. One of the goals of the recent Council approved rate study in fiscal year 2020-2021 was to establish and maintain adequate reserves to provide for 60 days of operations and maintenance expenses. As such, revenues in excess of expenses will be used for that stated purpose. Amounts over adequate reserves may also be deployed toward one-time projects and programs. The fund has established and plans to maintain the above stated reserves. Overall funding includes $12.1 million in ARPA funds which will be transferred into the Water Reclamation Capital Fund to be used toward the multi-year sewer conveyance system expansion project. 52Marana Council Study Session Meeting April 26, 2022 Page 58 of 197 Airport Funds (Operating and Capital) 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. Federal and State grants, matched by Town funding are used for airport capital improvement projects as grant awards become available and accepted by Council. Summary of Airport Funds Recommended Budget Fiscal Year 2023 Revenues FY2022 Budget FY2023 Recommended $ Change % Change Charges for services 342,334$ 347,672$ 5,338$ 1.6% Intergovernmental revenues 3,667,348 4,700,353 1,033,005 28.2% Miscellaneous revenues 1,500 2,000 500 33.3% Total Revenue 4,011,182 5,050,025 1,038,843 25.9% Expenditures Personnel & benefits 295,278$ 304,464$ 9,186$ 3.1% Contracted services 283,365 215,115 (68,250) -24.1% Operating supplies & equip 62,800 63,400 600 1.0% Capital outlay 3,953,418 5,225,473 1,272,055 32.2% Total Expenditures 4,594,861$ 5,808,452$ 1,213,591 26.4% Over/(Under)(583,679)$ (758,427)$ (174,748) 29.9% Other Sources and (Uses) Transfers in 583,679 758,427 174,748 29.9% Total Sources and (Uses)583,679 758,427 174,748 29.9% Change in fund balance - - - 0.0% 53Marana Council Study Session Meeting April 26, 2022 Page 59 of 197 The following describes major changes between fiscal years: Revenues Charges for services – This revenue source is comprised of air hangar leases, fuel charges, and open tie-downs. Revenues are anticipated to be slightly higher primarily due to increased lease income. Intergovernmental revenues – This revenue source is primarily comprised of federal and state grants awards, which are to be used toward airport capital improvement projects along with cash match funding from the Town. Miscellaneous revenues – Miscellaneous revenues, while nominally higher than the prior year budget are lower than prior years due to the discontinued use of the airport ramp for non-aeronautical activities in accordance with Federal regulations. Transfers in – The budgeted transfer in fiscal year 2022-2023 represents what may likely be an ongoing, operating subsidy from the General Fund. Over the years, these operating deficiencies have accumulated a balance that has been reduced to approximately $0.4 million which the Airport Fund owes the General Fund, as of the end of fiscal year 2020-2021. The airport does not generate adequate revenues to support the needs of an airport with significantly aged infrastructure and large capital improvement needs. Planning and coordination efforts with the Economic Development Department will hopefully continue to improve the airport’s ability to generate adequate revenues. Overall, for both operating and capital funds, transfers increased from the prior fiscal year to help cover operating costs and matching funds for capital projects provided by the Town. Expenditures Contracted services – The change is associated with a combination of a one-time payment due and made in the prior fiscal year related to a past capital project along with funding for surface maintenance and landscaping services in lieu of inmates in the event that inmate services are not available and for surveillance cameras which will enhance security measures around the airport. There are no large non-capital facilities projects budgeted for fiscal year 2022-2023. Capital outlay – The change is primarily associated with anticipated airport capital improvement projects, conditional on funding availability by Federal or State sources. Projects include the continuation of the multi-year Control Tower project. More details on all the projects are available in the Capital Improvement Program section in this document. 54Marana Council Study Session Meeting April 26, 2022 Page 60 of 197 INTERNAL SERVICE FUNDS BUDGET SUMMARY 55Marana Council Study Session Meeting April 26, 2022 Page 61 of 197 56Marana Council Study Session Meeting April 26, 2022 Page 62 of 197 Internal Service Funds Internal Service funds account for the Town’s self-insured medical, dental and vision benefits for the Town’s employees. Summary of Internal Service Funds Recommended Budget Fiscal Year 2023 Revenues FY2022 B udget FY2023 Recommended $ Change % Change Miscellaneous revenues 5,067,470$ 5,289,950$ 222,480$ 4.4% Total Revenue 5,067,470 5,289,950 222,480 4.4% Expenditures Contracted services 779,921$ 860,294$ 80,373$ 10.3% Operating supplies & equip 4,287,549 4,429,656 142,107 3.3% Total Expenditures 5,067,470$ 5,289,950$ 222,480 4.4% Over/(Under)-$ -$ - 0.0% Change in fund balance - - - 0.0% The following describes major changes between fiscal years: Revenues Miscellaneous revenues – These revenues are comprised of employee and employer premiums. While premium rates remain unchanged from the prior year, increases to revenues are associated with new employee positions and plan enrollment changes. Expenditures Contracted services – Costs are primarily increasing due to higher stop-loss insurance premiums. Operating supplies & equipment – Costs here account for medical, dental and vision claims. Fiscal year 2022-2023 increases are primarily related to industry related trends and inflation factors. 57Marana Council Study Session Meeting April 26, 2022 Page 63 of 197 58Marana Council Study Session Meeting April 26, 2022 Page 64 of 197 DEPARTMENT BUDGET SUMMARIES 59Marana Council Study Session Meeting April 26, 2022 Page 65 of 197 60Marana Council Study Session Meeting April 26, 2022 Page 66 of 197 Department Summary | Mayor & Town Council •Adopted a structurally balanced operating budget. •Adopted a 2022 AZ Legislative Session Policy Priority Program. •Obtained community support for a multi-generational recreation center and aquatics facility, including a temporary, half-cent sales tax to fund the project. •Adopted a comprehensive update to the Strategic Plan. •Participated in a Council Retreat to identify new policy goals and methods to achieve these goals. •Ensure the use of the Strategic Plan in the development of the annual budget. •Maintain regular briefing reports and council executive reports. •Identify and support legislative priorities. •Ensure that Marana remains a safe, clean and healthy community. •Look to host a joint Council meeting among regional jurisdictional peers. MAYOR & TOWN COUNCIL Overview The Marana Town Council is committed to providing its residents with a high standard of living,through a combination of policy development,efficient municipal services,and progressive community planning. Their actions are based on solid values, uncompromising integrity, and servant leadership for the community. Fiscal Year 2021-22 Accomplishments Fiscal Year 2022-23 Goals & Objectives 61Marana Council Study Session Meeting April 26, 2022 Page 67 of 197 Department Summary | Mayor & Town Council FY2021 Actual FY2022 Actual FY2023 Target 0 0 1 Key Performance Indicators Strategic Goals To promote and increase regionalism with neighboring communities Number of yearly joint meetings with council members from neighboring communities 62Marana Council Study Session Meeting April 26, 2022 Page 68 of 197 Department Summary | Mayor & Town Council Expenditures By Fund FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 General Fund $317,311 $374,098 $379,645 $5,547 Total Budget $317,311 $374,098 $379,645 $5,547 (1) Expenditures by Category FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Personnel & Benefits $311,982 $319,091 $324,638 $5,547 Contracted Services 644 40,422 40,422 - Operating Supplies & Equipment 4,686 14,585 14,585 - Total Budget $317,311 $374,098 $379,645 $5,547 1 Budget Notes and Significant Changes Changes to the Mayor &Town Council budget are primarily related to health benefit costs related to enrollment choices. Staff Summary: Town Council does not have any FTE's. Town Council members are paid a stipend and are eligible to receive benefits. 63Marana Council Study Session Meeting April 26, 2022 Page 69 of 197 Department Summary | Town Manager •Maintained a structurally balanced budget and strengthened the Town's financial position. •Facilitated public open houses on the Town's water resources to describe steps taken to address water availability on the Colorado River. •Successfully completed the construction of the Adonis Road Extension Project. •Hosted a Council retreat which established policy priorities and how to achieve them. •Updated the Town's logo and branding materials to celebrate the Town's 45th year of incorporation. •Maintain a structurally balanced budget that advances the priorities identified in the updated Strategic Plan. •Continue implementation of the Marana 2040 General Plan, including the various master plans and studies described within the plan. •Coordinate the design and construction of an air traffic control tower at Marana Regional Airport through the Federal Aviation Administration (FAA) Federal Control Tower Program. •Continue to enhance the Town's communications tools,including website host,social media platforms and use of data dashboards. •Coordinate with regional partners for Regional Transportation Authority (RTA)extension,and propose Town-specific capital projects. TOWN MANAGER Overview The Town Manager’s Office,under the policy and direction of the Town Council,provides oversight,support and coordination of administrative activities across the Town. The Manager’s Team provides leadership and vision to town staff for the benefit of the entire Marana community.Using the Strategic Plan,we implement successful strategies to tackle the challenges and growth in the Town. The Manager’s Team promotes responsiveness and efficient policies and procedures to ensure the highest quality of life for residents and businesses.The Manager’s Team believes in strong partnerships with our business and development communities,our neighboring municipalities,and various interest groups in the area. We are committed to providing the highest level customer service and effective solutions to complex changes.The Manager’s Team will never compromise our integrity or the public’s trust. Fiscal Year 2021-22 Accomplishments Fiscal Year 2022-23 Goals & Objectives 64Marana Council Study Session Meeting April 26, 2022 Page 70 of 197 Department Summary | Town Manager FY2021 Actual FY2022 Actual FY2023 Target Town-wide citizen survey - Administer town- wide citizen survey, utilize social media for community input on services FY2021 Actual FY2022 Actual FY2023 Target - Established connections with departments and updated main contacts Increase efficient flow of information among liaisons FY2021 Actual FY2022 Actual FY2023 Target Town performance dashboard - Upgrade and enhance Town performance dashboard FY2021 Actual FY2022 Actual FY2023 Target 10% increase 30% increase Additional 5% increase 20% reduc- tion Implemented a 24 hour response email acknowledging receival of project request; 30% reduction Additional 5% reduction Ensure Town information is easily accessible to the public Key Performance Indicators Invest in community input on Town services Development and deployment of survey instruments Foster a culture of innovation throughout the Town organization Designate department public relations liaisons Strategic Goals Development of transparency apps and platforms Provide high service to other Town departments for marketing and branding Frequency of communications with departments during project timeline Reduce initial response time for project requests by 20% 65Marana Council Study Session Meeting April 26, 2022 Page 71 of 197 Department Summary | Town Manager FY2021 Actual FY2022 Actual FY2023 Target - Partnered with departments to increase social media activity, provided Manager Messages to the website and maintained the MaranaAZ.gov newsroom Enhance distribution of information to employees by engaging other departments Strategic Goals Ensure accurate and timely information is available to employees Utilize social media, Manager’s Message, MaranaAZ.gov and other media sources 66Marana Council Study Session Meeting April 26, 2022 Page 72 of 197 Department Summary | Town Manager Staff Summary FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Full-time Equivalents 11.50 10.50 9.50 (1.00) % of town's FTEs 2.21% Expenditures By Fund FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 General Fund $1,493,671 $2,129,569 $1,792,163 ($337,406) Total Budget $1,493,671 $2,129,569 $1,792,163 ($337,406) Expenditures by Category FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Personnel & Benefits $1,343,963 $1,340,422 $1,181,941 ($158,481)(1) Contracted Services 61,494 482,052 499,204 17,152 (2) Operating Supplies & Equipment 88,213 307,095 111,018 (196,077) (3) Total Budget $1,493,671 $2,129,569 $1,792,163 ($337,406) 1 2 3 Budget Notes and Significant Changes Personnel &Benefits -Decrease is primarily attributed to the re-assingment of three positions to other departments.Town Engineer position was transfered to the Public Works department.An administrative assistant FTE was re-assigned to the Airport and the Special Events Coordinator position was moved to the Parks and Recreation Department as a the result of a mid year re-organization in FY2022.These decreases were offset by the addition of a new Visual Communications Designer that will help handle the increasing volume of department requests. Contracted Services -Includes a number on one-time requests including funds to complete the Master Transportation study,the Town's Strategic plan update,funding for new performance managerment software,and an update to the Town's website platform. These increase are offset by a reduction of capacity related to Special Events which was transfered to the Parks & Recreation department mid-year in FY2022. Operating Supplies &Equipment -Reduction is primarily due to the transfer of Speicial Events to the Parks & Recreation department mid-year in FY2022. 67Marana Council Study Session Meeting April 26, 2022 Page 73 of 197 Department Summary | Town Clerk •Transfer Claims Management responsibilities to the newly hired Risk Manager and Human Resources department for processing. •Updated department processes by training Town department administrative staff in the use of AgendaQuick, and redirecting the preparation of meeting agendas to the Water and Human Resources departments. •Reduced the number of amendments to a published public meeting agenda during the fiscal year. •Hired staff to replace departing Clerk office staff. •Audit the Town Clerk's Records Center to ensure accuracy and compliance. •Conduct a successful election cycle consisting of a primary and general election. •Fully staff the department and continue providing training to department staff and other staff in using the legislative software and records software. •Evaluate the need to video stream all public meetings as part of the Town's transparency policy. TOWN CLERK Overview The Town Clerk manages a variety of internal and external services.The Town Clerk is responsible for the preparation of the Marana Town Council meeting agenda packet and records the official minutes of Council meetings.Another important function is the administration of town elections,and the management of the town’s public records,which includes the processing of public records requests.The Town Clerk also processes liquor licenses and fireworks permits,and handles claims against the Town,well as providing general property claims management.The Town Clerk provides support to the Marana Citizens’Forum, Marana Health Care Benefits Trust,and Marana Utilities Board.The mission of the Town Clerk’s Office is to provide the public and staff with accurate and timely information. Fiscal Year 2021-22 Accomplishments Fiscal Year 2022-23 Goals & Objectives 68Marana Council Study Session Meeting April 26, 2022 Page 74 of 197 Department Summary | Town Clerk FY2021 Actual FY2022 Actual FY2023 Target Ongoing Ongoing Ongoing FY2021 Actual FY2022 Actual FY2023 Target Ongoing Ongoing Ongoing FY2021 Actual FY2022 Actual FY2023 Target Ongoing Ongoing Ongoing Key Performance Indicators Strategic Goals Maintain partnership with the Marana Heritage Conservancy and seek out new partnership ii Create a comprehensive preservation policy for historic and culturally significant items Bring relevant topics to Citizens' Forum for deliberation Maintain a minimum of 10-15 delegates; recommendations approved by Council. Start a draft outline within first year, engaging entities such as U of A, AZ State Museum, Sonoran Desert Coalition, Old Pueblo Archaeology, and the AZ State Library Memory Project. Identify internal department to assist with collaboration and establishment of programs 69Marana Council Study Session Meeting April 26, 2022 Page 75 of 197 Department Summary | Town Clerk Staff Summary FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Full-time Equivalents 5.00 5.00 5.00 - % of town's FTEs 1.16% Expenditures By Fund FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 General Fund $452,183 $501,892 $643,761 $141,869 Total Budget $452,183 $501,892 $643,761 $141,869 Expenditures by Category FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Personnel & Benefits $403,801 $421,707 $441,481 $19,774 (1) Contracted Services 46,711 23,185 135,680 112,495 (2) Operating Supplies & Equipment 1,672 7,000 6,600 (400) Restricted Budget 50,000 60,000 10,000 (3) Total Budget $452,183 $501,892 $643,761 $141,869 1 2 3 Budget Notes and Significant Changes Personnel &Benefits -Increase primarily attributed to compensation adjustments as a result of a compensation study being implemented in FY2023. Contracted Services -Increase attributed to budget capacity for the scheduled elections in FY2023. Restricted Budget -Increase to ensure adequate capacity exists for elections outside the normal election cycle in FY2023. 70Marana Council Study Session Meeting April 26, 2022 Page 76 of 197 Department Summary | Human Resources •Provided COVID-19 vaccination sites to organization at the onset of the pandemic. •Mitigated COVID-19 liability via education and contact tracing. •Enhanced Risk Management process and reduced liability to organization. •Continue to be a driving force to cultivate and promote the Town’s goals, strategic plan and cultural values. •Continue to migrate to paperless processes and data storage. •Continue to educate on workplace injuries and enhance claims management process. •Continue to educate organization to mitigate COVID-19 liability. •Implement an electronic interactive on-boarding & orientation process. HUMAN RESOURCES Overview The Human Resources Department’s mission is to support and advance the Town of Marana by hiring, developing and keeping the best talent.In collaboration with all Town employees,we work to promote Marana’s culture and an organization of excellence. Fiscal Year 2021-22 Accomplishments Fiscal Year 2022-23 Goals & Objectives 71Marana Council Study Session Meeting April 26, 2022 Page 77 of 197 Department Summary | Human Resources FY2021 Actual FY2022 Actual FY2023 Target See Note 303 5% FY2021 Actual FY2022 Actual FY2023 Target N/A 520 5% Key Performance Indicators Strategic Goals Create a heightened awareness for risk and safety in the Town’s culture To increase employee engagement Increase the number of touch base meetings Increase the number of contacts with Town staff via meetings, touch base, trainings and presentations. Note: Due to employees teleworking as a COVID-19 precaution, and in person meetings being discourage for much of FY21, the key performance measurement of employees engagement (touch base meetings) was negatively impacted and we do not have reportable data for this KPI this year. 72Marana Council Study Session Meeting April 26, 2022 Page 78 of 197 Department Summary | Human Resources Staff Summary FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Full-time Equivalents 7.00 8.00 9.00 1.00 % of town's FTEs 2.10% Expenditures By Fund FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 General Fund $768,254 $1,073,177 $1,240,780 $167,603 Total Budget $768,254 $1,073,177 $1,240,780 $167,603 Expenditures by Category FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Personnel & Benefits $661,167 $860,368 $995,336 $134,968 (1) Contracted Services 15,745 42,340 75,570 33,230 (2) Operating Supplies & Equipment 91,343 165,469 169,874 4,405 Restricted Budget - 5,000 - (5,000) Total Budget $768,254 $1,073,177 $1,240,780 $167,603 1 2 Budget Notes and Significant Changes Personnel &Benefits -Increase primarily attributed to compensation adjustments as a result of a compensation study being implemented in FY2023 as wells as the addition of one Systems Administrator FTE that will help manage the Town's ERP system as well as other HR related systems. Contracted Services -Increase attributed to increased funding for recruitment expenses due to higher rates of turnover and large number of new positions and additional funding for travel and training some of which was cancelled in prior years due to the pandemic. 73Marana Council Study Session Meeting April 26, 2022 Page 79 of 197 Department Summary | Finance •Received the 14th consecutive Distinguished Budget Presentation Awards from the Government Finance Officers Association (GFOA). •Received the Certificate of Excellence in Financial Reporting from the GFOA for the 13th consecutive year. •Assisted with the successful implementation of a new utility billing system. •Implemented a new cost allocation plan. •Established and implemented a paperless workflow process for invoice approvals. •Receive the Distinguished Budget Presentation Award from the GFOA. •Receive the Certificate of Excellence in Financial Reporting from the GFOA. •Implement a new business licesing software system. •Assist with the implementation of a permanent adjustment of the Alternative Expenditure Limitation for the Town of Marana. •Implement a new financial reporting software application. FINANCE Overview The Finance Department provides financial support services throughout the Town including accounting, fiscal planning,treasury services,cash receipts,purchasing,accounts payable, payroll,debt management, development and monitoring of the annual operating budget,establishing and monitoring internal controls, preparing the Comprehensive Annual Financial Report,facilitating external audits and independent reviews and grant management. Fiscal Year 2021-22 Accomplishments Fiscal Year 2022-23 Goals & Objectives 74Marana Council Study Session Meeting April 26, 2022 Page 80 of 197 Department Summary | Finance FY2021 Actual FY2022 Actual FY2023 Target AA AA AA AA AA AA FY2021 Actual FY2022 Actual FY2023 Target No Yes Yes FY2021 Actual FY2022 Actual FY2023 Target 100%100%100% FY2021 Actual FY2022 Actual FY2023 Target Yes Yes Yes Yes Yes Yes FY2021 Actual FY2022 Actual FY2023 Target +22%TBD ±5% ±5%±5%±5% Key Performance Indicators Receipt of GFOA Certificate of Achievement for Excellence in Financial Reporting Strategic Goals Reasonably conservative budget, maximized use of available funds, and a structurally Provide detailed and transparent financial information to the public about the use of public Invest idle cash to achieve best investment results considering safety, liquidity and yield Receive a clean audit opinion without any findings or questioned costs Maintain or improve credit rating Bond Rating Excise Tax Revenue Obligations: Fitch Bond rating Excise Tax Revenue Obligations: Standard & Poor's Unmodified audit opinion in financial statements by external CPA firm Compliance with Town investment and financial policies Receipt of GFOA Distinguished Budget Presentation Award Variance from budget to actual: Operating revenues Variance from budget to actual: Operating expenses 75Marana Council Study Session Meeting April 26, 2022 Page 81 of 197 Department Summary | Finance Staff Summary FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Full-time Equivalents 16.25 15.75 19.00 3.25 % of town's FTEs 4.42% Expenditures By Fund FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 General Fund $1,375,345 $1,571,532 $2,031,937 $460,405 Total Budget $1,375,345 $1,571,532 $2,031,937 $460,405 Expenditures by Category FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Personnel & Benefits $1,250,177 $1,416,035 $1,741,631 $325,596 (1) Contracted Services 118,998 140,697 209,317 68,620 (2) Operating Supplies & Equipment 6,170 14,800 30,989 16,189 (3) Restricted - - 50,000 50,000 (4) Total Budget $1,375,345 $1,571,532 $2,031,937 $460,405 1 2 3 4 Budget Notes and Significant Changes Personnel &Benefits -Increase primarily attributed to compensation adjustments as a result of a compensation study being implemented in FY2023 as wells as the addition of three new positions and an increase of an existing part time position to a full FTE that will help continue to provide customer service to both our residents and departments and deal with the ever increasing volume of work.New positions will be assigned to the customer service area, accounts payable, payroll and procurement. Contracted Services -Increase primarily attributed to funding for the acquisition of new financial reporting software to replace the existing failing software,and to anticipated increased banking service fees which will be offset with correspondingly greater interest revenues as interest rates increase over the course of the fiscal yar. Operating Supplies &Equipment -Increase are attributed to the furniture and equipment related to the three new positions mentioned above. Restricted -Budget capacity to be utilized by Town Manager approval for consulting services related to planning future long term funding and financing of Town needs. 76Marana Council Study Session Meeting April 26, 2022 Page 82 of 197 Department Summary | Legal •Assisted the Development Services Department in finalizing comprehensive revisions to the Land Development Code. •Assisted the Community Development &Neighborhood Services Department with drafting and adoption of the Town's new Public Nuisance and Property Preservation Ordinance. •Assisted with legal interpretation of the American Rescue Plan Act of 2021 (ARPA)and identification of projects eligible for funding. •Assisted the Human Resources Department in implementing new employee benefits regarding shift differential pay,second language pay,and holiday pay,including drafting and revising policies and directives, and training Town personnel. •Provided top-quality municipal criminal and code enforcement,including efficiently and fairly handling 515 criminal prosecutions,2 appeals,7 aggressive dog designation cases (new this year) and 6 code enforcement cases in the first five and half months of FY2021. •Assist Capital Improvements Program and Parks and Recreation with completion of acquisition of property rights from CalPortland for the extension of the Santa Cruz River Shared Use Path (part of the C. H. Huckelberry Loop). •Continue to provide top-quality municipal criminal prosecution services,by ethically and efficiently prosecuting cases with the goal of achieving justice, and protecting victims' legal rights. •Assist with implementation of updated infrastructure improvement plans, land use assumptions,and development impact fees for Water, Wastewater, Streets and Parks. •Assist with all legal aspects of design and construction of the Town's new Multi-Generational Community Center and Aquatic Facility. LEGAL Overview The Marana Legal Department provides superior legal services to ensure that the Town is a safe,sustainable community with a high quality of life,now and in the future.We strive to achieve justice and to protect the Town by developing sound legal direction and strategies,protecting victims' rights, upholding the law with fairness and integrity,and maintaining a strong work ethic.The Legal Department provides legal advice to the Mayor and Council, the Town Manager’s Office and all Town departments,and directly or through outside counsel represents the Town in litigation.The Legal Department also prosecutes misdemeanor offenses and Town Code violations committed within the Town limits, working closely with the Police Department and Marana Municipal Court. Fiscal Year 2021-22 Accomplishments Fiscal Year 2022-23 Goals & Objectives 77Marana Council Study Session Meeting April 26, 2022 Page 83 of 197 Department Summary | Legal FY2021 Actual FY2022 Actual FY2023 Target 100%100%100% 105%84%90% FY2021 Actual FY2022 Actual FY2023 Target 100%100%95% 97%95%90% Key Performance Indicators Strategic Goals Provide timely and accurate legal advice to the Town Efficiently and effectively prosecute misdemeanor cases % of cases with initial victim notices sent out by first pretrial conference Ratio of cases disposed to cases filed % of ordinances/resolutions drafted within 30 days of request % of successful outcomes in personnel matters 78Marana Council Study Session Meeting April 26, 2022 Page 84 of 197 Department Summary | Legal Staff Summary FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Full-time Equivalents 7.50 9.00 9.00 - % of town's FTEs 2.10% Expenditures By Fund FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 General Fund $917,581 $1,112,888 $1,206,557 $93,669 Total Budget $917,581 $1,112,888 $1,206,557 $93,669 Expenditures by Category FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Personnel & Benefits $835,028 $957,344 $1,039,528 $82,184 (1) Contracted Services 77,565 143,244 164,029 20,785 (2) Operating Supplies & Equipment 4,988 12,300 3,000 (9,300) (3) Total Budget $917,581 $1,112,888 $1,206,557 $93,669 1 2 3 Budget Notes and Significant Changes Personnel &Benefits -Increase primarily attributed to compensation adjustments as a result of a compensation study being implemented in FY2023. Contracted Services -Increase to provide funding for outside counsel fees related to ongoing legal matters. Operating Supplies &Equipment -The descrease is primarily attibuted to one-time funding for furniture and equipment related to a new position added in FY2022. 79Marana Council Study Session Meeting April 26, 2022 Page 85 of 197 Department Summary | Technology Services •Implemented multifactor authentication and single sign-on capabilities. •Implemented a mobile device management solution. •Developed a new project management intake and prioritization process. •Migrated the Town to a new Internet and WAN provider--increasing the Town's internet bandwidth by 500%. •Implemented SIEM and advanced threat detection security tools. •Migrate on premise email to Microsoft Office 365 - to include SharePoint on premise migration. •Select and implement a new permitting and licensing system. •Continue expansion of Town's cybersecutiry initiatives. •Develop an Asset Management strategic plan. TECHNOLOGY SERVICES Overview The Technology Services Department provides Town departments with the leadership, skills and technology infrastructure that enable the effective, secure,and efficient use of technology solutions in support of the vision, principles and strategic goals of the Town of Marana. Fiscal Year 2021-22 Accomplishments Fiscal Year 2022-23 Goals & Objectives 80Marana Council Study Session Meeting April 26, 2022 Page 86 of 197 Department Summary | Technology Services FY2021 Actual FY2022 Actual FY2023 Target 96.25%98%99% FY2021 Actual FY2022 Actual FY2023 Target 82%89%85% FY2021 Actual FY2022 Actual FY2023 Target 28 days 65 days 30 days FY2021 Actual FY2022 Actual FY2023 Target 79.58%76%80% FY2021 Actual FY2022 Actual FY2023 Target 3.85%4.49%2% Key Performance Indicators Strategic Goals Increase cybersecurity awareness Town-wide Increase cybersecurity awareness Town-wide Timely development of application features and functionality Efficient resolution of Town technology issues To increase the availability of Town network and server resources Network and servers availability Resolve incident tickets submitted to the Help Desk within the defined Service Level Objective Length of time new application features or tasks take to move from one status to another The average monthly percentage of staff completing security awareness training The average monthly percentage of staffing failing internal phishing tests 81Marana Council Study Session Meeting April 26, 2022 Page 87 of 197 Department Summary | Technology Services Staff Summary FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Full-time Equivalents 14.00 18.00 20.00 2.00 % of town's FTEs 4.66% Expenditures By Fund FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 General Fund $2,658,235 $3,583,367 $4,407,661 $824,294 Total Budget $2,658,235 $3,583,367 $4,407,661 $824,294 Expenditures by Category FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Personnel & Benefits $1,175,817 $1,682,092 $1,903,411 $221,319 (1) Contracted Services 1,099,438 1,480,325 2,239,894 759,569 (2) Operating Supplies & Equipment 315,008 420,950 264,356 (156,594) (3) Capital Outlay 67,973 - - - Total Budget $2,658,235 $3,583,367 $4,407,661 $824,294 1 2 3 Budget Notes and Significant Changes Personnel &Benefits -Increase primarily attributed to compensation adjustments as a result of a compensation study being implemented in FY2023 as wells as the addition of two new positions that will help enshance security measures and provide additional support to departments. Contracted Services -Increase is primarily associated with an increase to the cost of existing software as well as a number of new software inluding a new permitting and licensing system that will provide increased functionality to both staff and customers. Funding is also included for a hardware and equipment to replace existing aging equipment in a number of locations including Council Chambers. Operating Supplies &Equipment -This line item includes a number of one-time equipment purchases.Additional budget was included in the prior fiscal year to purchase equipment which was deferred during the onset of the pandemic.The current year reduction represents a return to the normal funding levels which include computer and police radio replacements. 82Marana Council Study Session Meeting April 26, 2022 Page 88 of 197 Department Summary | Development Services DEVELOPMENT SERVICES Overview To ensure that all departmental activities (Building Safety,Planning, Engineering, Environmental and Real Property)enhance and support the vision of the strategic plan by providing responsiveness to,and creating partnerships with the development community. Building Safety Division The Building Safety division is responsible for establishing the minimum requirements that safeguard public health. This is accomplished by adopting the most up-to-date technical building code and enforcement of that code through field inspection.The division collectively works with fire service agency within the Town to administer provisions of the fire code. The goal is to provide the highest level of service and to maintain the vision of the Town,by incorporating the strategic plan into the division's policies and procedures whenever possible. Planning Division The Planning division is dedicated to the physical,social and economic excellence of the Town through sound professional planning practices;consistent policy advice; active public participation and superior public service to promote the welfare and quality of life of the community.Planning is responsible for administering and implementing the General Plan, the Town Code and the Land Development Code.The division provides support and recommendations to the Town Council and Planning Commission to assist each in making decisions regarding land uses and development proposals.The division processes applications for new development and redevelopment within the Town such as site plan reviews,special use requests, planned development proposals, subdivision proposals and rezoning requests to ensure compliance with Town requirements. Engineering, Environmental, and Real Property Division The Engineering, Environmental and Real Property division is responsible for addressing the infrastructure needs throughout the Town. The Engineering division provides oversight of projects to ensure that private development follows Town ordinances and engineering practices,maintains the safety of the public and the environment,recommends mitigation measures to reduce impacts from development.The division manages the floodplain and community rating system and ensures environmental compliance for private development.The division ensures the Town's compliance with state and federal mandates as well as clears public infrastructure projects.In addition, the division manages the Town real property through acquisitions, permitting, and agreements. 83Marana Council Study Session Meeting April 26, 2022 Page 89 of 197 Department Summary | Development Services •Building Safety:Simplified permit reviews where permit techs/coordinator complete general plan review - over-the-counter issuance. •Planning: Planning staff,collaborating with other Town departments, delivered a major update to the Land Development Code,particularly zoning regulation,that was incorporated into the Town Code by the approval of Town Council.The updated Code streamlined regulation by the comprehensive use of tables and a easy to use matrix system that helps users find information quickly, while at the same time, reduces the size of the Code. •Environmental: Updating the Town’s storm water ordinance to comply with the new MS4 Permit. •Real Property: Bringing Real Property services and staff back in-house. •Development Engineering: Standardizing applications,forms and checklists as well as converting them to electronic submittals and fillable forms. •Building Safety:Continue with efficiencies in digital plan review and inspections,coordinate with Technology Services on digital document management and customer submittals. •Planning: Planning staff will continuously monitor the actual implementation and use of the updated Land Development Code by the tracking of any issues or Code conflicts that arise in order to determine,if and when,any additional revisions are required.Revisions to the Code will also be brought forward as new,pertinent information is generated by the completion of studies and master plans identified in the General Plan. •Environmental: Mapping of storm water outfalls for private development. •Real Property:Develop and make public a real property website with all of the Town’s property and conveyance documents. •Development Engineering: To streamline the permitting and inspection process. Fiscal Year 2021-22 Accomplishments Fiscal Year 2022-23 Goals & Objectives 84Marana Council Study Session Meeting April 26, 2022 Page 90 of 197 Department Summary | Development Services FY2021 Actual FY2022 Actual FY2023 Target 1 Staff due to COVID 6 staff As needed 2 Staff due to COVID 6 staff As needed FY2021 Actual FY2022 Actual FY2023 Target 96%96%96 90%92%92 99.50%99%99 FY2021 Actual FY2022 Actual FY2023 Target 100%100%100% FY2021 Actual FY2022 Actual FY2023 Target 17,224 17,172 17,500 FY2021 Actual FY2022 Actual FY2023 Target 95%95%95% 97%97%97%% of permits approved within assigned time frame Strategic Goals International Code Certifications received Model plan reviews completed within five days Single family dwelling plans reviewed within five days In-house plan reviews as a % of total plan reviews taken Perform inspections for building code compliance Build Code Compliance inspections performed To provide exceptional customer service through our Development and Utility Services % development of related projects reviewed within assigned time (first submittal) Streamline public processes to facilitate work with public and developers Key Performance Indicators Improve staff training, education, and certification levels Arizona Building Official Association code training sessions attended per year Ensure sufficient response to public for permitting and inspections Field inspections completed within 1 business day of request 85Marana Council Study Session Meeting April 26, 2022 Page 91 of 197 Department Summary |Development Services Staff Summary FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Full-time Equivalents 30.00 31.00 35.00 4.00 % of town's FTEs 8.15% Expenditures By Fund FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 General Fund $3,120,339 $3,175,614 $4,477,098 $1,301,484 Downtown Reinvestment Fund 10,040 333,555 133,501 (200,054) (4) Total Budget $3,130,379 $3,509,169 $4,610,599 $1,101,430 Expenditures by Category FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Personnel & Benefits $2,788,354 $2,780,638 $3,315,613 $534,975 (1) Contracted Services 246,693 230,628 844,148 613,520 (2) Operating Supplies & Equipment 59,848 70,828 203,537 132,709 (3) Capital Outlay 35,484 352,075 247,301 (104,774) (4) Restricted Budget - 75,000 - (75,000) Total Budget $3,130,379 $3,509,169 $4,610,599 $1,101,430 1 2 3 4 Budget Notes and Significant Changes Personnel &Benefits -Increase primarily attributed to compensation adjustments as a result of a compensation study being implemented in FY2023 as wells as the addition of four new positions,two of which were approved by Council mid-year in FY2022.New positions will help the department manage the greatly increased volume experienced due to the growth in development activity. Contracted Services -Increase primarily due to the inclusion of budget capacity for the development of a master plan identified in the 2040 General Plan and additional credit card fees,resulting from the greatly increased volume in permit issuance.Additional capacity has also been included for 3rd-party plan review on call services and for the creation of a drainage study reference document to be used by all engineers developing in the Town of Marana. Operating Supplies &Equipment -Increase is associated with one-time funding for furniture and equipments for the new positions and additional one-time purchases of equipment that will increase the efficiency of reviews for existing staff. Capital Outlay -Budget capacity includes funding for the purchase of two vehicles for the new positions as well as carry over capacity for the completion of the Marana Re- allignment project funded by the Downtown Reinvestment fund. 86Marana Council Study Session Meeting April 26, 2022 Page 92 of 197 Department Summary | Economic Development and Tourism •Tourism Master Plan Request For Proposal ready to launch. •Launched new shopping campaigns with El Imparcial to enhance reach to Mexico market. •Launched small-scaled military family program through SAAA to enhance visitation within regional drive markets. •Successfully attracted JD Russell, Southwest Gas, PSE Archery, and PVB Fabrications to the Town. •Platted and rezoned 55 acres at Airport for development opportunities. •Re-fresh and re-boot series of short promotional videos to target new visitor profile. •Migrate DiscoverMarana.org to new operating system with updated branding photos. •Develop and implement a professional studies program for high school upperclassmen, in conjunction with the Marana Unified School District, the Marana Chamber of Commerce,and the business community.This will serve as both a workforce development and business retention and expansion strategy. •Advance the development of Marana Main Street,in line with the Town's Economic Development Strategic Plan. •Continue to recruit, retain, and expand retail, commercial, and industrial tenants to the Town. OFFICE OF ECONOMIC DEVELOPMENT AND TOURISM Overview To provide clear direction and coordination of economic development and tourism activities in Marana by the building of public/private sector partnerships to attract and retain a diverse business and employment base,support new local businesses,develop amenities and attractions to create a world class destination and provide a high quality workforce. To ensure that all departmental activities enhance and support the vision of the strategic plan by providing responsiveness to internal and external customers by the creation of those partnerships. Fiscal Year 2021-22 Accomplishments Fiscal Year 2022-23 Goals & Objectives 87Marana Council Study Session Meeting April 26, 2022 Page 93 of 197 Department Summary | Economic Development and Tourism FY2021 Actual FY2022 Actual FY2023 Target 10% YoY increase 20%10% 100%100%100% 40%70%40% 1 cam- paign 1 cam- paign 1 cam- paign FY2021 Actual FY2022 Actual FY2023 Target 391%154%*200% 25%100%50% 1 2 2 10 13 15 *Compared to 2019 annual traffic, not 2020 Key Performance Indicators To maintain a sustainable increase in living standards and quality of life in Marana Implementation of the Econ. Dev. Strategic Plan by marketing the four focus areas Increase of unsolicited inquiries Response rate on RFI within 24 hours of unsolicited inquiries Connecting people with decision making tools Strategic Goals Influencing visitation and purchasing decisions in the Town of Marana Influencing travel stays (marketing campaigns) Increase of organic website traffic Increase personal responsive interactions Creating and innovating tourism products 88Marana Council Study Session Meeting April 26, 2022 Page 94 of 197 Department Summary | Economic Development and Tourism Staff Summary FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Full-time Equivalents 3.50 3.50 3.50 - % of town's FTEs 0.81% Expenditures By Fund FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 General Fund $199,894 $311,435 $311,800 $365 Bed Tax Fund 255,206 494,923 561,333 66,410 (2) Downtown Reinvestment Fund - 425,000 425,000 - PAG - Econ & Tourism 30,578 17,500 17,500 - Total Budget $485,678 $1,248,858 $1,315,633 $66,775 Expenditures by Category FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Personnel & Benefits $298,818 $398,721 $403,678 $4,957 (1) Contracted Services 153,297 708,330 784,181 75,851 (2) Operating Supplies & Equipment 2,985 3,700 2,410 (1,290) Capital Outlay 30,578 17,500 17,500 - (3) Restricted Budget - 120,607 107,864 (12,743) (4) Total Budget $485,678 $1,248,858 $1,315,633 $66,775 1 2 3 4 Budget Notes and Significant Changes Personnel &Benefits -Increase primarily attributed to compensation adjustments as a result of a compensation study being implemented in FY2023. Contracted Services -Increase primarily attributed to funding in the Bed Tax Fund toward the update of the Town's Discover Marana website. Capital Outlay -Associated with the installation of the TABY grant related artwork at the downtown roundabout in case the project is not completed by the end of FY2022. Restricted Budget - Restricted funding programmed to balance the Bed Tax Fund. 89Marana Council Study Session Meeting April 26, 2022 Page 95 of 197 Department Summary |Police •Achieved reaccreditation for the 3rd year. •Replaced weapons system from .40 cal to 9mm complete with red dot aiming system. •Implemented a Drone Program to assist with speeding up serious/fatal accident investigations, search for lost hikers and children, and search for fleeing suspects. •Maintain or exceed department clearance rates for crimes of violence as compared to the previous year. •Maintain or exceed department clearance rates for property crimes as compared to the previous year. •Improve our ranking on the safest cities in Arizona list from our 2021 ranking. POLICE Overview The mission of the Marana Police Department (MPD)is to provide unparalleled service and unwavering protection to every person in the Town of Marana and to do so with uncompromised integrity.We are committed to becoming the most well respected police department in the State of Arizona. Fiscal Year 2021-22 Accomplishments Fiscal Year 2022-23 Goals & Objectives 90Marana Council Study Session Meeting April 26, 2022 Page 96 of 197 Department Summary | Police FY2021 Actual FY2022 Actual Projected FY2023 Target 33.2 34.9 36.6 11.5 10.9 10.4 17.1 16.2 15.4 0.90 0.86 0.81 23.0 21.8 20.8 Part 1 Property Crime rate per 1,000 (excludes shoplifting)10.6 10.1 9.5 Key Performance Indicators To maintain a safe community for all Marana residents, citizens, and visitors Maintain or reduce total number of part 1 crimes* (excluding shoplifting) per 1,000 residents as compared to the previous year Maintain or exceed department clearance rates for all part 1 crimes* as compared to the previous year Strategic Goals Maintain or reduce traffic collision rates based on total number of collisions per 1,000 residents as comparted to the previous year Part 1 Violent Crime rate per 1,000 Part 1 Property Crime rate per 1,000 (includes shoplifting) 91Marana Council Study Session Meeting April 26, 2022 Page 97 of 197 Department Summary | Police Staff Summary FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Full-time Equivalents 121.00 127.00 127.00 - % of town's FTEs 29.57% Expenditures By Fund FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 General Fund $14,372,575 $16,391,711 $25,184,657 $8,792,946 (1) Grants & Contributions Fund 1,337,605 1,468,154 767,253 (700,901) (5) RICO Fund 153,794 127,500 87,500 (40,000) Police Impound Fund 65,652 34,727 34,727 - Total Budget $15,929,626 $18,022,092 $26,074,137 $8,052,045 Expenditures by Category FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Personnel & Benefits $13,965,470 $15,278,959 $22,958,536 $7,679,577 (1) Contracted Services 351,730 605,206 673,821 68,615 (2) Operating Supplies & Equipment 1,443,271 1,502,927 1,551,072 48,145 (3) Capital Outlay 169,155 605,000 890,708 285,708 (4) Restricted Budget 30,000 - (30,000) Total Budget $15,929,626 $18,022,092 $26,074,137 $8,052,045 1 2 3 Budget Notes and Significant Changes Personnel &Benefits -Increase primarily attributed to a one-time $6 million contribution into the department's pension fund to reduce the unfunded liability by about one third. Increase also includes compensation adjustments as a result of a compensation study being implemented in FY2023 as wells as the addition of six new positions,which include three officers, one sergeant and two detectives. Contracted Services -Increase is primarily attributed to additional budget capacity in anticipation of a change in internal policy which will charge the full deductible of claims to department budgets allowing for full costing of such expenses. Operating Supplies &Equipment -Increase attributed to a number of factors inlcuding increase fuel costs and other related operating costs associated with the addition of the six new positions as well as increased vehicle replacement charges as part of the Town's replacement program. 92Marana Council Study Session Meeting April 26, 2022 Page 98 of 197 Department Summary | Police 4 5 Grants &Contributions Fund -Funding is associated with a number of grant awards that help fund several Police Department programs.Capacity is allocated based on known award amounts and may be adjusted during the fiscal year as grants are renewed or if new grants and grant allocations are made available by grantors. Capital Outlay -Funding for vehicle purchases for the six new positions as well as carry over amounts from the prior year budget as the Town continues to deal with supply chain disruptions and potential delivery delays for vehicles already on order. 93Marana Council Study Session Meeting April 26, 2022 Page 99 of 197 Department Summary | Courts •Successfully installed and operated a publicly accessible computer kiosk in the court lobby for plaintiffs to use to initiate protective order petitions. •Court security officers successfully completed the Court Security Officer training academy and Firearms academy and are certified and authorized by the Arizona Supreme Court to carry firearms. •Completed construction and began utilization of the court's Jury Assembly Room. •Completed research regarding Town Public Defender and transferred project to Executive Branch for further review and possible implementation. •Began exploration of transitioning to paperless court files. •Continue exploration of transition to paperless court files. •Begin exploration of ways to improve the functionality of the court's case management system in conjunction with Technology Services and the Arizona Supreme Court. •Work to increase effectiveness of court monitored probation and diversion. •Continue working to provide robust resources to unrepresented parties appearing in Marana Court. COURTS Overview Marana Municipal Court adjudicates civil and criminal traffic,Town ordinance,and criminal misdemeanor offenses that occur within the Town limits,as well as issuing civil orders of protection and injunctions against harassment.The mission of Marana Municipal Court is to provide a forum for the fair,impartial,and efficient adjudication of those violations in an environment that is respectful and safe for all who interact with the justice system. Fiscal Year 2021-22 Accomplishments Fiscal Year 2022-23 Goals & Objectives 94Marana Council Study Session Meeting April 26, 2022 Page 100 of 197 Department Summary | Courts FY2021 Actual FY2022 Actual FY2023 Target <1%<1%<1% 100%100%100% <1%<1%<1% FY2021 Actual FY2022 Actual FY2023 Target 100%100%100% 100%100%100% FY2021 Actual FY2022 Actual FY2023 Target 100%100%100% Percentage of qualified cases receiving court appointed counsel Key Performance Indicators Strategic Goals Promptly disburse monies received by the court, which are held in trust and payable as restitution, bonds, or fees Provide participants in the court system with necessary services for the fair adjudication of cases Provide for a forum for fair, impartial, and efficient adjudication of alleged violations in an environment that is respectful and safe Percentage of cases referred to judicial commission Percentage of qualified cases receiving interpreter services Percentage of timely disbursements for bond refunds, restitution orders, fees to other government agencies, and payment for services Percentage of cases adjudicated Percentage of cases with customer service complaints 95Marana Council Study Session Meeting April 26, 2022 Page 101 of 197 Department Summary | Courts Staff Summary FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Full-time Equivalents 14.00 14.00 14.00 - % of town's FTEs 3.26% Expenditures By Fund FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 General Fund $1,088,655 $1,247,301 $1,250,506 $3,205 JCEF Fund 320 131,805 131,805 - Fill the Gap Fund - 34,500 34,500 - Local Technology Fund 207,119 437,500 78,000 (359,500) (3) Total Budget $1,296,094 $1,851,106 $1,494,811 ($356,295) Expenditures by Category FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Personnel & Benefits $1,002,652 $1,127,251 $1,141,306 $14,055 (1) Contracted Services 94,995 224,750 206,600 (18,150) (2) Operating Supplies & Equipment 12,128 149,105 146,905 (2,200) Capital Outlay 186,319 350,000 - (350,000) (3) Total Budget $1,296,094 $1,851,106 $1,494,811 ($356,295) 1 2 3 Budget Notes and Significant Changes Personnel &Benefits -Increase primarily attributed to compensation adjustments as a result of a compensation study being implemented in FY2023. Contracted Services -Decrease is primarily attributed in anticipated reduced costs for public defender services, jury fees and travel and training. Capital Outlay -The reduction represents the one-time contribution of funding in FY2022 from the Local Technology Fund toward the construction of the Court Jury Room addition. 96Marana Council Study Session Meeting April 26, 2022 Page 102 of 197 Department Summary | Public Works •FLEET-To have completed Sally Port Project and move in NLT end of FY2022 Budget. •Pavement Management Program. The Town is completing the preservation of 48 lane miles. •Completed MOC remodel for Public Works and new Gym. Completed Sally Port remodel for Fleet. •Upgraded decorative street lights in North Marana to LED, and installed advanced traffic signal management system and server. •Expand GPS Services to 142 vehicles due to vehicle growth. •Implement the Pavement Management Projects. •Initiate revisions to the Facilities Master Plan. •Expand traffic monitoring and implementation of traffic signal performance measures. •Implement the CIP projects on time,on budget and to the satisfaction of customers and stakeholders. PUBLIC WORKS Overview The Public Works Department is committed to providing the highest level of service and showcase Marana’s high standard of excellence while planning, designing, constructing, operating,and maintaining safe and reliable infrastructure for the community.The Department strives to spend taxpayer funds judiciously,execute cost-effective designs,and employ innovative ways to operate,improve,maintain,and enhance public facilities,roadways,bridges,sidewalks,ADA ramps,drainage-ways,landscaping,traffic signals,street lights, pavement markings,and Town fleet in an efficient manner and,subsequently,improve the quality of life in the Town. The airport which is a division of Public Works is presented as a separate department summary. Fiscal Year 2021-22 Accomplishments Fiscal Year 2022-23 Goals & Objectives 97Marana Council Study Session Meeting April 26, 2022 Page 103 of 197 Department Summary | Public Works FY2021 Actual FY2022 Actual FY2023 Target 100% FY2021 Actual FY2022 Actual FY2023 Target 5% FY2021 Actual FY2022 Actual FY2023 Target 100% FY2021 Actual FY2022 Actual FY2023 Target 35% FY2021 Actual FY2022 Actual FY2023 Target 100% Key Performance Indicators Strategic Goals To ensure that capital improvement projects adhere to aesthetic standards To ensure that capital rehabilitation projects adhere to aesthetic standards To ensure that capital improvement projects advance the community's economic development l Increase the capacity of roadway corridors through innovational use of technologies and decrease traffic delays To maintain the Town's streets at an acceptable high level Continue with the Pavement Preservation five-year plan Percentage increase of roadway capacity plus percentage decrease of traffic delays Percent of projects that advance economic development goals Percent of rehabilitation projects that are able to improve upon the aesthetics of the corridor Percent of projects that are able to improve upon the aesthetics of the corridor 98Marana Council Study Session Meeting April 26, 2022 Page 104 of 197 Department Summary | Public Works Staff Summary FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Full-time Equivalents 56.00 57.00 62.00 5.00 % of town's FTEs 14.44% Expenditures By Fund FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 General Fund $5,528,080 $7,388,998 $9,701,564 $2,312,566 (6) Highway User Revenue Fund 3,700,904 3,970,048 4,834,644 864,596 (7) South Benefit Area Impact Fee 13,888 5,573,071 9,511,439 3,938,368 Northwest Benefit Area Impact Fee 3,118 23,754 1,311,588 1,287,834 Transportation Fund 9,421,469 14,670,602 25,409,268 10,738,666 Pima Association of Governments - 189,000 740,250 551,250 1/2 Cent Sales Tax - - 12,000,000 12,000,000 Other Agency - 8,510,000 8,288,533 (221,467) Regional Transportation - 750,000 7,300,000 6,550,000 Northeast Benefit Area Impact Fee 46,028 32,336 131,681 99,345 Other Capital Projects Fund 4,091,045 561,149 513,679 (47,470) Total Budget $22,804,533 $41,668,958 $79,742,646 $38,073,688 Expenditures by Category FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Personnel & Benefits $4,104,075 $4,592,264 $5,464,757 $872,493 (1) Contracted Services 3,358,703 4,349,029 4,779,249 430,220 (2) Operating Supplies & Equipment 366,083 565,313 798,474 233,161 (3) Capital Outlay 12,872,363 31,862,352 68,098,666 36,236,314 (4) Debt Service 1,145 - 1,500 1,500 Restricted Budget 2,102,164 300,000 600,000 300,000 (5) Total Budget $22,804,533 $41,668,958 $79,742,646 $38,073,688 1 Budget Notes and Significant Changes Personnel &Benefits -Increase primarily attributed to compensation adjustments as a result of a compensation study being implemented in FY2023 as wells as the addition of four new positions that will help continue to provide customer service to both our residents and departments and deal with the ever increasing volume of work.The positions include a project manager,a construction inspector,a lead fleet technician and a facilities compliance specialist.The budget was also impacted by the transfer of the Town Engineer position from the Town Manager's Office. 99Marana Council Study Session Meeting April 26, 2022 Page 105 of 197 Department Summary | Public Works 2 3 4 5 6 7 8 Restricted Budget -Costs in this line item are associated with restricted contingency items in the Highway User Revenue Funds such as emergency road repair,storm damage repairs and $400,000 in restricted funding for the Ina Road Bridge project that has not yet been reconciled and closed out the the Arizona Department of Transportation. General Fund -Inrease is associated with the personnel and benefits changes noted above as well as inflationary costs,a number of maintenance and replacement costs, and capital projects including the emergency MMC generator upgrade and a roof replacement at the MOC. Highway User Revenue Fund -Increase is primarily associated with the purschase of equipment to replace old and aging vehicles including a 15 year old road grader. Budget capacity includes funding for the ADA compliance projects and carry-over funding for the pavement preservation program and some equipment that will not be delivered on time due to supply chain issues. Remaining Funds -Funding is programmed from several sources for a number of ongoing and new projects,including the Tangerine Widening and the Community and Aquatics Center.For more details please refer to the Town's Capital Improvement Plan section in this document. Contracted Services -Increase is primarily attributed to a number of facility related one- time projects,including cooling tower maintenance,flooring repairs,aging equipment replacement,and a remodel of the front desk receoptionist area at MMC building A.In addition the increase was also impacted by higher costs for goods and services. Operating Supplies &Equipment -Increases is attributed to a number of factors,including higher costs due to inflation, impacting the cost of fuel and equipment, as well as, increase developer reimbursements from the Northeast Benefit Area Impact Fee fund due to increased growth and construction activity in that benefit area.One-time budget capacity was also included to replace aging jury box seats,courtroom seating and other furniture and equipment at the Court. Capital Outlay -Inreases are associated with a number of new and ongoing projects includng the Community and Aquitics project and mutliple transportation projects. Please refer to the separate Capital Impovement Plan sectionin this document fo more details on all capital projects. 100Marana Council Study Session Meeting April 26, 2022 Page 106 of 197 Department Summary | Parks & Recreation •Implementation of the Parks and Recreation 10 Year Master Plan, which features a 50,000+square foot Community Center,and a year-round aquatics facility that includes a competition pool and a recreation pool. These facilities were identified as priorities during the extensive Master Plan process which recorded more than 6,000 contacts with citizens. •Worked with developers to construct two new lighted soccer fields at Gladden Farms Community Park.The addition of these two fields to the Parks and Recreation inventory will greatly increase the number of teams/participants who participate in activities that use diamond shaped fields that can be accommodated in Marana. •The Central Arizona Project (CAP)Trailhead was officially opened with a ribbon cutting ceremony on October 30, 2021.Project partners joined the Town of Marana to celebrate the new highly accessible outdoor amenity.The opening of this new trail system in Marana continues to meet the Town Strategic Goals (i.e.Recreation – Provide diverse recreational opportunities that create economic benefits and a healthy lifestyle.) •Marana Parks and Recreation received three Arizona Parks and Recreation state awards.Winning entries were:1.)The Spread the Love Campaign –Outstanding Community or Neighborhood Special Event 2.)#SplashSavvy –Outstanding Aquatics Program 3.)#SplashSavvy –Outstanding Education Program. •The Parks and Recreation Department will work with the contracted design team to complete the design of the Marana Community Center and Aquatic Complex.This process will include public outreach, as well as input from internal stakeholder departments.The goal is to complete the design process in Fiscal Year 2023. •In 2022,the long awaited completion of the CalPortland portion of the Shared Use Path.This 1.8 mile section will connect North Marana to the entire Shared Use Path,and will continue to increase visitation to Marana’s seven properties located along the Santa Cruz River. •In FY2023 the Parks and Recreation will open the new Saguaro Bloom Community Park,which will contain two playgrounds,a dog park,lighted tennis and basketball courts,walking paths,and open turf area. PARKS & RECREATION Overview The Town of Marana Parks and Recreation department is dedicated to developing and implementing quality parks,trails,and leisure services for our community with a proud commitment to excellence,safety,and sustainability. Fiscal Year 2021-22 Accomplishments Fiscal Year 2022-23 Goals & Objectives 101Marana Council Study Session Meeting April 26, 2022 Page 107 of 197 Department Summary | Parks & Recreation •Popular Parks and Recreation programs have seen drastic decreases in participation since the start of the pandemic.Parks and Recreation will seek to recapture public interest by working with staff to create safe recreation opportunities and by seeking partnerships that will allow for enhanced marketing and a greater reach to possible participants.We will seek to increase participation in the #RunMarana Race Series by more than 100%.Our goal will be to register a minimum of 800 participants for the series which will include; the Mother’s Day 55,Aquathon,Turkey Trot,Dirt Dash, and Egg Nog Jog. Fiscal Year 2022-23 Goals & Objectives (continued) 102Marana Council Study Session Meeting April 26, 2022 Page 108 of 197 Department Summary | Parks & Recreation FY2021 Actual FY2022 Actual FY2023 Target NA 29%75% FY2021 Actual FY2022 Actual FY2023 Target NA 44 88 FY2021 Actual FY2022 Actual FY2023 Target NA 348 800 Key Performance Indicators Strategic Goals Promote healthy and active lifestyles though dynamic programming, community partnerships, and high-quality recreational amenities for Marana residents and visitors. Capitalize on the uniqueness and value of the Sonoran Desert in our precreation programming, i l i d i i ff Maintain park facilities and spaces to the highest standard. % of daily park maintenance tasks tracked and recorded in Cartegraph # of Outdoor Recreation programs offered compared to previous year # of participants registered for #RunMarana race events 103Marana Council Study Session Meeting April 26, 2022 Page 109 of 197 Department Summary | Parks & Recreation Staff Summary FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Full-time Equivalents 42.00 52.00 55.00 3.00 % of town's FTEs 12.81% Expenditures By Fund FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 General Fund $4,182,710 $6,336,557 $8,349,648 $2,013,091 (4) Highway User Revenue Fund 1,695 378,500 524,050 145,550 (2) Park Impact Fee Fund 192,501 2,174,289 3,412,333 1,238,044 (4) Other Agency Capital Projects 29,510 2,058,000 10,000 (2,048,000) (5) Total Budget $4,406,416 $10,947,346 $12,296,031 $1,348,685 Expenditures by Category FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Personnel & Benefits $2,609,191 $3,785,147 $4,182,253 $397,106 (1) Contracted Services 379,391 1,064,012 1,485,447 421,435 (2) Operating Supplies & Equipment 1,059,448 1,187,706 1,924,300 736,594 (3) Capital Outlay 358,386 4,910,481 4,704,031 (206,450) (4) Total Budget $4,406,416 $10,947,346 $12,296,031 $1,348,685 1 2 3 Budget Notes and Significant Changes Personnel &Benefits -Increase primarily attributed to compensation adjustments as a result of a compensation study being implemented in FY2023,as well as the re-assignment of the Special Events Coordinator from the Town Manager's Office and two new positions that will help provide much needed assistance in the areas of irrigation and maintenance for parks operations. Contracted Services -Increase is primarily attributed to increased costs for a number of items including fertilizer,herbicide,vehicle maintenance,sod for fields maintenance,and the first of a 5 year park electrical maintenance program.One time funding is also included for the resurficing of the Heritage Park Splash Pad. Operating Supplies &Equipment -Increase is primarily attributed to increases of ongoing costs for a number of items including fuel,irrigation supplies,water utility costs,and a combination of increases for the Town's special events which include the one-time purchase of a Christmas tree. 104Marana Council Study Session Meeting April 26, 2022 Page 110 of 197 Department Summary | Parks & Recreation 4 5 Other Agency Capital Projects - FY2022 funding was primarily associated with the Community and Aquatics Center project which has been moved to the Half-Cent Sales Tax fund under the Public Works Department. Capital Outlay -Several projects have capacity either for design or construction in the current fiscal year including the El Rio Golf Course,the Gladden Farms Baseball Fields,the Honea Heights Park,East,and the Tangerine Sky Park, Phase 2,as well as carry over capacity for the ongoing Santa Cruz Shared Use Path at CalPortland project. 105Marana Council Study Session Meeting April 26, 2022 Page 111 of 197 Department Summary | Community and Neighborhood Services •Council Adopted the Town's first Neighborhood Preservation Ordinance. •Council Approved the first Code Enforcement Policy document. •Made significant update to Title 6, Animal Control, of the Town Code. •Established a retired American flag drop off location and program for proper destruction. •Creation of a Consolidated Plan for the Town's own Community Block Grant Program. •Create recycling opportunities for various household waste items. •Look at opportunities to bring free responsible pet ownership classes to Marana. COMMUNITY AND NEIGHBORHOOD SERVICES Overview Improving the quality of life for our residents and neighborhoods is the primary goal for Community and Neighborhood Services.Engaging the community in ongoing dialogue provides opportunities for the public and private sectors to:identify, refine and articulate needs;cooperatively problem-solve; collaboratively work to develop viable solutions to address needs;measure outcomes and celebrate successes; communicate regularly and clearly though relationships established by mutual trust and a shared vision. Fiscal Year 2021-22 Accomplishments Fiscal Year 2022-23 Goals & Objectives 106Marana Council Study Session Meeting April 26, 2022 Page 112 of 197 Department Summary | Community and Neighborhood Services FY2021 Actual FY2022 Actual FY2023 Target 98%95%90% 35 40 50 35 50 45 FY2021 Actual FY2022 Actual FY2023 Target 114 100 125 265 295 300 568 657 700 53%54%55% Key Performance Indicators To enhance the community, protect property values, and engage the community Tons of refuse collected in community dumpsters provided in Neighborhoods Tons of refuse collected from utilization of the Community Trailer by residents/ communities Strategic Goals To provide needed animal services to residents to protect pets and limit shelter intake Return more pets to owners than are taken to shelter Increase the voluntary compliance by property owners on violation notices Increasing number registered users on Marana Pets App Number of pets receiving services from Town sponsored microchipping, vaccination, licensing, spay & neuter clinics Pets Microchipped at Town Events 107Marana Council Study Session Meeting April 26, 2022 Page 113 of 197 Department Summary | Community and Neighborhood Services Staff Summary FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Full-time Equivalents 10.00 10.00 10.50 0.50 % of town's FTEs 2.44% Expenditures By Fund FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 General Fund $1,140,328 $1,172,319 $1,303,653 $131,334 (1) Community Development Block Grant 53,058 180,000 180,000 - Revolving Affordable Housing Fund 26,260 137,410 87,435 (49,975) (2) Total Budget $1,219,645 $1,489,729 $1,571,088 $81,359 Expenditures by Category FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Personnel & Benefits $840,046 $838,906 $945,374 $106,468 (1) Contracted Services 182,344 377,220 328,840 (48,380) (2) Operating Supplies & Equipment 129,311 270,103 296,874 26,771 (3) Capital Outlay 67,944 - - - Restricted Budget - 3,500 - (3,500) Total Budget $1,219,645 $1,489,729 $1,571,088 $81,359 1 2 3 Budget Notes and Significant Changes Personnel &Benefits -Increase primarily attributed to compensation adjustments as a result of a compensation study being implemented in FY2023 as wells as the addition one new part-time animal control officer. Contracted Services -Decrease is primarily attributed to a reduction in planned expenditures out of the Revolving Affordable Housing Fund which is budgeted so not to exceed projected available funding for FY2023. Operating Supplies &Equipment -Increase is primarily attributed to equipment needed for the new part-time animal control officer and vehicle replacement charges to be used in the future to replace existing vehicles and help ensure services are provided with no interruptions. 108Marana Council Study Session Meeting April 26, 2022 Page 114 of 197 Department Summary | Water •Replaced approximately 320 meters as part of the aging meter program. •Continued to maintain high levels of customer service and water system reliability during the global COVID-19 pandemic. •Completed the construction of the Tangerine W+ to X-Zone Booster Station. •Continued implementation of the asset management program and utilization of Cartegraph. •Recharged approximately 825 acre feet of treated effluent in FY2021-22 (ongoing). •Continue meter replacement program to replace 600 - 800 meters. •Complete construction of the Marana Park Reservoir and Equipping Marana Park Well. •Complete Impact Fee Study. •Complete Water Master Plan. •Complete implementation of new customer information system including new customer portal. WATER Overview Marana Water is committed to providing our customers with safe,reliable, efficient water and water reclamation services through utilization of the effective industry practices,state of the art technology,and the sustainable use of water resources. Fiscal Year 2021-22 Accomplishments Fiscal Year 2022-23 Goals & Objectives 109Marana Council Study Session Meeting April 26, 2022 Page 115 of 197 Department Summary | Water FY2021 Actual FY2022 Actual FY2023 Target 668 288 744 FY2021 Actual FY2022 Actual FY2023 Target 6%4.17%5% Key Performance Indicators Strategic Goals Provide resources necessary to maintain the water distribution system and accurately account for water produced and consumed Continuous increase in number of water customers Number of new water customers Percent of lost and unaccounted for water 110Marana Council Study Session Meeting April 26, 2022 Page 116 of 197 Department Summary | Water Staff Summary FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Full-time Equivalents 29.60 31.60 34.00 2.40 % of town's FTEs 7.92% Expenditures By Fund FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Water Operating Fund $5,912,293 $8,960,652 $9,289,132 $328,480 (1) Water Capital Fund 126,550 4,967,088 10,760,061 5,792,973 (4) Water Infrastructure 277,242 3,849,262 12,152,310 8,303,048 (4) Renewable Resources Fund 11,970 765,266 5,358,968 4,593,702 (4) Total Budget $6,328,055 $18,542,268 $37,560,471 $19,018,203 Expenditures by Category FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Personnel & Benefits $2,273,762 $2,799,225 $3,206,561 $407,336 (1) Contracted Services 1,636,989 2,316,696 2,021,391 (295,305) (2) Operating Supplies & Equipment 1,883,735 2,495,288 2,700,504 205,216 (3) Capital Outlay 145,402 9,112,286 27,537,985 18,425,699 (4) Debt Service 294,074 1,501,773 1,894,030 392,257 (5) Restricted Budget 94,094 317,000 200,000 (117,000) (6) Total Budget $6,328,055 $18,542,268 $37,560,471 $19,018,203 1 2 3 Budget Notes and Significant Changes Personnel &Benefits -Increase primarily attributed to compensation adjustments as a result of a compensation study being implemented in FY2023 as well as the addition of two new positions and an increase of an existing part time FTE to a full FTE that will help continue to provide quality service to customers and deal with the ever-increasing volume of work.The new positions include a Civil Engineer and a Water Conservation Specialist. The latter will only be funded for the second half of the year. Contracted Services -Decrease is primarily due to a reduction in sampling related amounts,which are being adjusted to a proper level after experiencing the first full year of the water treatment plant operations. Operating Supplies &Equipment -Increase is primarily attributed to higher costs for water rights (CAP,CAGRD).Also,a portion of the increase is due to higher costs for chlorine as a result of inflation. 111Marana Council Study Session Meeting April 26, 2022 Page 117 of 197 Department Summary | Water 4 5 6 Debt Service -Increase is due to budget capacity toward debt issuance costs to provide financing for the NWRRDS project,as half of the project is funded by impact fees which have not yet been collected. Restricted Budget -For unanticipated expenses,including emergency water hauling due to a possible well failure which would require the hauling of water ir order to provide service to existing customers. Capital Outlay -The increase is attributed to a number of projects such as the Northwest Recharge and Recovery Distribution System (NWRRDS)and the Marana Park Reservoir and Well as well as,impact fee funding capacity if the opportunity arises to make new renewable water acquisitions.Capacity was also made available for the Continental Reserve 24-inch tie in project in case grant funding is made available through the Federal Goverment. For more details please refer to the Town's Capital Improvement Plan. 112Marana Council Study Session Meeting April 26, 2022 Page 118 of 197 Department Summary | Water Reclamation •Continued to work with local, state, and federal regulatory agencies to maintain compliance and operation of the wastewater reclamation facility and sanitary sewer conveyance system. •Completed the cleaning, CCTV, and manhole inspections of one quarter of the sanitary sewer conveyance system (~20 miles). •Completed construction of the Clark Farms Flow Splits and the Marana-Sanders 21-inch main. •Updated the Capacity, Management, Operations and Maintenance (CMOM) Plan. •Continued to implement the asset management program utilizing a Computerized Maintenance Management System (CMMS) - Cartegraph. •Successfully complete the design of the Sewer Conveyance System Project (Design/Build) in North Marana. •Successfully complete the 2nd Screw Press Project and the Marana WRF. •Successfully complete the Rillito Vista Lift Station Rehabilitation Project. •Clean, CCTV, and perform manhole inspections of the next quarter in the rotation of the sanitary sewer conveyance system (~20 miles). •Continue to work with local, state, and federal regulatory agencies to maintain compliance and operation of the wastewater reclamation facility and sanitary sewer conveyance system. WATER RECLAMATION Overview Marana Water is committed to providing our customers with safe,reliable, efficient water and water reclamation services through utilization of the effective industry practices,state of the art technology,and the sustainable use of water resources. Fiscal Year 2021-22 Accomplishments Fiscal Year 2022-23 Goals & Objectives 113Marana Council Study Session Meeting April 26, 2022 Page 119 of 197 Department Summary | Water Reclamation FY2021 Actual FY2022 Actual FY2023 Target 506 252 605 FY2021 Actual FY2022 Actual FY2023 Target 1 2 0 Key Performance Indicators Strategic Goals Provide resources necessary to maintain safe, compliant and environmentally friendly operation of the sanitary sewer conveyance system Continuous increase in number of sewer customers Number of new sewer customers Number of sanitary sewer overflows 114Marana Council Study Session Meeting April 26, 2022 Page 120 of 197 Department Summary | Water Reclamation Staff Summary FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Full-time Equivalents 7.00 7.00 8.00 1.00 % of town's FTEs 1.86% Expenditures By Fund FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Water Reclamation Operating Fund $2,523,971 $2,745,861 $3,531,229 $785,368 (4) Water Reclamation Capital Fund 578,970 6,058,000 9,468,962 3,410,962 (3) Water Reclamation Impact (Post SB)39,335 723,221 45,200 (678,021) (3) Total Budget $3,142,276 $9,527,082 $13,045,391 $3,518,309 Expenditures by Category FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Personnel & Benefits $577,130 $618,590 $761,337 $142,747 (1) Contracted Services 599,826 888,800 1,447,983 559,183 (2) Operating Supplies & Equipment 558,683 365,306 381,511 16,205 Capital Outlay 605,255 6,781,221 9,587,562 2,806,341 (3) Debt Service 801,382 873,165 866,998 (6,167) Restricted Budget - - - - Total Budget $3,142,276 $9,527,082 $13,045,391 $3,518,309 1 2 3 Budget Notes and Significant Changes Personnel &Benefits -Increase primarily attributed to compensation adjustments as a result of a compensation study being implemented in FY2023 as well as the addition of a new Water Reclammation Operator II needed for plant operations due to the continued strong growth and increased plant flows. Contracted Services -Increase is attributed to additional funding for one-time and ongoing system repairs,upgrades and rehabilitation that will help ensure the continued and uninterrupted system operations.Funding is also included for a sewer master plan and legal services. Capital Outlay - A number of ongoing projects are included in the FY2023 budget including the North Marana Sewer Interceptor Expansion,the Rillito Vista Lift Station upgrade and a second screw press for the water reclammation plant.For more details please refer to the Capital Improvement Plan.Impact fee funding was made available for the completion of the ongoing impact fee study. 115Marana Council Study Session Meeting April 26, 2022 Page 121 of 197 Department Summary | Water Reclamation 4 Water Reclammation Operating Fund -Increases primarily due to new position and compensation adjustments,along with increases costs for contracted services to ensure the continued maintenance and uninterrupted system operations. 116Marana Council Study Session Meeting April 26, 2022 Page 122 of 197 Department Summary | Airport •Conduct air traffic control Tower siting Study (FAA-Grant). •Construction of Runways 12-30 and Runways 3-21 MIRLs, Airport Beacon, and PAPIs (ADOT-Grant). •Construction of the J D Russell Company corporate aircraft hangar (East-Ramp). •Design West and East Hangar Apron Reconstruction (ADOT-Grant). •Runway 30 Safety Area Improvement Study (ADOT-Grant). •Apply for air traffic control tower environmental assessment (FAA-Grant). •Apply to Replace Existing AWOS with AWOS III P/T (ADOT-Grant). •ALP Update to reflect Runway 30 Safety Mitigation Project, ATCT Siting Study, and Land Releases (ADOT-Grant). •East Hangar Apron Reconstruction (ADOT-Grant). AIRPORT Overview The Airport department provides the community with a valuable general aviation air transportation resource that is part of the National Air Transportation System and enhances and promotes the aviation industry for the community while maintaining the highest level of safety and professional customer service.The department also markets and leases airport land for aviation related businesses and development. Fiscal Year 2021-22 Accomplishments Fiscal Year 2022-23 Goals & Objectives 117Marana Council Study Session Meeting April 26, 2022 Page 123 of 197 Department Summary | Airport FY2021 Actual FY2022 Actual FY2023 Target $275,000 $297,632 $300,000 FY2021 Actual FY2022 Actual FY2023 Target 1,500 1,683 1,800 FY2021 Actual FY2022 Actual FY2023 Target 88,000 91,838 93,000 Key Performance Indicators Strategic Goals Develop new airport hangars Increase airport corporate jet operations Increase land lease income Lease revenue Corporate jet operations Overall aircraft operations 118Marana Council Study Session Meeting April 26, 2022 Page 124 of 197 Department Summary | Airport Staff Summary FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Full-time Equivalents 3.00 3.00 4.00 1.00 % of town's FTEs 0.93% Expenditures By Fund FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Airport Operating Fund $856,828 $641,443 $620,359 ($21,084) Airport Capital Fund 268,812 3,953,418 5,205,893 1,252,475 (3) Total Budget $1,125,640 $4,594,861 $5,826,252 $1,231,391 Expenditures by Category FY2021 Actual FY2022 Adopted FY2023 Recom- mended Change FY2022 to FY2023 Personnel & Benefits $305,321 $295,278 $304,464 $9,186 (1) Contracted Services 48,246 142,365 215,115 72,750 (2) Operating Supplies & Equipment 44,195 62,800 63,400 600 Capital Outlay 89,960 3,953,418 5,243,273 1,289,855 (3) Restricted Budget 637,917 141,000 - (141,000) (4) Total Budget $1,125,640 $4,594,861 $5,826,252 $1,231,391 1 2 3 4 Budget Notes and Significant Changes Personnel &Benefits -Increase primarily attributed to compensation adjustments as a result of a compensation study being implemented in FY2023,as well as the re-assignment of an administrative assistant to the Airport from the Town Manager's Office. Contracted Services -The increase is primarily associated with funding for airport surface maintenance and landscaping services in lieu of inmates in the event that inmates services are not available. Capital Outlay -Funding is for a number of airport related capital projects,including the continuation of the multi-year Control Tower project.The Town's match for the current fiscal year amount to approximately a half million dollars budgeted as a transfer out from the General Fund. Restricted Budget -Primarily associated with a one-time contractual obligation that was settled in the prior fiscal year. 119Marana Council Study Session Meeting April 26, 2022 Page 125 of 197 120Marana Council Study Session Meeting April 26, 2022 Page 126 of 197 CAPITAL IMPROVEMENT PLAN 121Marana Council Study Session Meeting April 26, 2022 Page 127 of 197 122Marana Council Study Session Meeting April 26, 2022 Page 128 of 197 CAPITAL IMPROVEMENT PROGRAM Fiscal Year 2022 – 2023 Recommended CIP Plan Overview The Fiscal Year 2022-203 recommended Capital Improvement Plan (CIP) forecasts the Town’s capital investments over a five-year period. Capital investments involve major Town projects that have at least a five year useful life and at least a $100,000 total project budget. The CIP is both a fiscal and planning device that allows the Town to inventory and monitor all capital project costs, funding sources, departmental responsibilities, and timing schedules. Each year the CIP is reviewed within the context of ongoing Town, county, state, and federal planning programs and policies as well as the Town’s General and Strategic Plans. Capital improvements may include new construction or an expansion, upgrade, replacement, or other addition designed to improve, conserve, or maintain the value of Town assets or enhance service capacity and/or visual environment. At any given time, the Town has numerous capital projects in various stages that include the following: project planning, site selection, right-of-way acquisition, public hearing, utility relocation, site preparation, project agreement preparation, design, construction, and inspection. The first year of the CIP, along with any carry-forward of funds from the prior fiscal year, comprise the total budget for each CIP project beginning July 1 of the new fiscal year. The remaining four years of the CIP serve as a financial plan for capital investments. The five-year financial plan is reviewed and updated each year, and the Mayor and Council adopt the capital budget and the five-year financial plan after recommendations from staff and the public. The CIP committee met during the budget cycle to prioritize all requested CIP projects. The resulting recommendations were presented to the Town Council on March 22, 2022 at the Town Council CIP study session. Funding Sources The CIP presented incorporates a diverse financing plan. The plan not only utilizes development fees to ensure that new development is paying for cost associated with growth, but also includes funds from the General Fund that allow existing residents to contribute to the many projects that are planned. This is an important balance to maintain when a variety of projects are constructed which will benefit all residents of the community. Proceeds used for the various capital improvements projects may include: • Development related impact fees • Transportation sales tax funds (75% of the Town’s construction sales tax dollars are dedicated for transportation improvements) • Intergovernmental sources including: State of Arizona, Pima Association of Governments (PAG), Regional Transportation Authority (RTA) • American Rescue Plan Act (ARPA) 123Marana Council Study Session Meeting April 26, 2022 Page 129 of 197 • Water and sewer utility revenues • Water Infrastructure Financing Authority (WIFA) loans • Various grant and third-party contributions • General Fund revenues and reserves As shown by the following chart, the largest single CIP funding source comes from the Transportation Fund at $25.0 million. This funding source accounts for the majority of the Town’s road infrastructure projects and the reconstruction of neighborhood subdivisions. Developer Fees are the second largest funding source at $23.1 million. These are impact fee revenues associated with construction and development of new or expanded road, park, water, and sewer related infrastructure. Intergovernmental revenues are another large source in the fiscal year 2022-2023 CIP at $22.5 million. They contain HURF and other agency type funds, including anticipated funding from the State of Arizona to be used for the Tangerine Road widening project and from possible state and federal aviation capital improvement grants. The American Rescue Plan Act (ARPA) was signed into law on March 11, 2021. Among the provisions was $350 billion to help states, counties, cities and tribal governments mitigate the effects of COVID-19 and make meaningful investments into the community. Under ARPA, certain capital investments related to water and sewer infrastructure are eligible to receive funding. As such, the Town has programmed several water and water reclamation projects for fiscal year 2022-2023. On October 19, 2021, the Town of Marana passed ordinance No. 2021.022, increasing the local sales tax rate from 2.0% to 2.5% to help fund the design and construction of a new multigenerational recreation and aquatic center. The Town has programmed $12.0 million for fiscal year 2022-2023, with additional funding scheduled in future years. To help ensure the required expansion and rehabilitation of critical water and sewer infrastructure, the Town as programmed $8.9 million in loan proceeds to be aimed at specific water and sewer infrastructure projects. General water and sewer revenues are also programmed in fiscal year 2022- 2023 at $5.1 million to assist with critical projects. General Fund, $3.7M, 3% Intergov., $21.5M, 19% Impact Fees, $23.1M, 20% Other, $0.6M, 1% Transportation Fund, $25.0M, 22% 1/2 Cent Sales Tax, $12.0M, 11% Loan Proceeds, $8.9M, 8% ARPA, $14.1M, 12% Utility Revenues, $5.1M, 4% CIP Funding Sources$114.1 Million 124Marana Council Study Session Meeting April 26, 2022 Page 130 of 197 Capital Improvement Program Summary The cumulative five-year CIP for the Town of Marana totals $327.2 million from FY2023 through FY2027. The chart below shows the breakdown by CIP category for the five-year period with road infrastructure being the largest of the categories at $134.9 million and airport related projects the second largest at $61.9 million. The recommended fiscal year 2022-2023 CIP totals $114.1 million and is approximately 50% of the recommended annual budget. Road infrastructure encompasses the largest portion of the recommended CIP at $52.1 million. Water related projects are the second largest at $27.2 million or 24% of the CIP program. A breakdown is shown below. A detailed summary of all CIP projects encompassed in the Town of Marana’s five-year CIP program can be found in the following table. Airport, $61.5M, 19% Buildings, $1.9M, 1% Parks & Public Goods, $60.5M, 18% Road Infrastructure, $134.9M, 41% Water, $49.1M, 15% Water Reclamation, $18.9M, 6% 5-Year CIP (FY2023-2027) $327.2 Million Airport, $5.6M, 5%Buildings, $1.9M, 1%Parks & Public Goods, $17.9M, 16% Road Infrastructure, $52.1M, 46% Water, $27.2M, 24% Water Reclamation, $9.5M, 8% FY2023 CIP by Cateogry $114.1 Million 125Marana Council Study Session Meeting April 26, 2022 Page 131 of 197 FISCAL YEAR 2022-2023 TOWN OF MARANA FIVE YEAR CAPITAL IMPROVEMENT PROGRAM Project Name 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 Grand Total ADA Compliance Program 200,000 200,000 200,000 200,000 800,000 Adonis Road Extension Phase 2 2,600,000 2,600,000 Adonis Subdivision Drainage Improvements 35,000 35,000 Airport Control Tower, Siting Study 136,329 136,329 Airport Control Tower 301,000 1,300,000 12,000,000 13,601,000 Airport Drainage Study 400,000 400,000 Airport Land Acquisition 323,962 323,962 Airport MIRL, Beacon, PAPI Light Replacement 1,324,742 1,324,742 Airport Northwest Well Rehabilatation 140,000 140,000 Airport Part 150 Noise Study 250,000 250,000 Airport Runway 30 Safety Study 16,641 16,641 Airport Security Fence 323,962 323,962 Airport Southeast Well Site Upgrade 675,000 675,000 Barnett Channel, Tangerine Farms ConArch 698,600 698,600 B-Zone Booster and Transmission Line 381,002 4,032,276 4,413,278 B-Zone Reservoir 65,250 552,450 617,700 CAP Subcontract - NIA Reallocation 220,581 215,500 215,500 215,500 867,081 Civic Center Dr, Electrical Improvements 270,500 270,500 Camino De Oeste Road Restoration 273,020 273,020 Continental Ranch Park to Loop Extension 50,000 300,000 350,000 Continental Reserve 24-inch Tie-in 2,783,987 2,783,987 Cortaro Farms Beautification 25,000 25,000 Crossroads Park Entry Path Loop Improvements 90,000 90,000 C-Zone Booster 192,188 1,627,187 1,819,375 Dove Mountain Blvd & Moore Rd Signal 740,250 740,250 East Apron Reconstruction Phase 1 2,425,000 2,425,000 East Apron Reconstruction Phase 2 2,055,000 2,055,000 East Tangerine Water Pipeline Upsizing 2,579,742 2,579,742 El Rio Disc Golf 292,905 292,905 El Rio Preserve CMID Connection 18,331 18,331 El Rio Preserve Expansion 85,000 400,000 485,000 El Rio Recreation Area Parking Lot 132,347 132,347 Gladden Farms Baseball Fields 513,043 513,043 126Marana Council Study Session Meeting April 26, 2022 Page 132 of 197 FISCAL YEAR 2022-2023 TOWN OF MARANA FIVE YEAR CAPITAL IMPROVEMENT PROGRAM Project Name 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 Grand Total Gladden Farms Bike Park 200,000 800,000 1,000,000 Hartman Booster Station Electrical Upgrade 220,000 220,000 Heritage Park Pole Barn 97,223 97,223 Heritage Park Water Plant 315,741 5,012,382 5,328,123 Honea East Well Upgrade 216,550 216,550 Honea Heights Sewer Program 75,000 75,000 75,000 75,000 75,000 375,000 Honea Heights Park, East 200,000 850,000 1,050,000 Integrated Water Resources Plan & DAWS 346,850 346,850 LED Street Lighting AZ Pavilions 549,000 549,000 LED Street Lighting Near Crossroads Park 259,815 259,815 LED Street Lighting, Business Park Dr 420,000 420,000 Lon Adams Road Reconstruction 5,744,285 5,744,285 Marana Community Center & Aquatic Complex 12,000,000 35,000,000 47,000,000 Marana Gateway Monument Signage 160,000 160,000 160,000 480,000 Marana Main Street Extension 300,000 3,000,000 3,300,000 Marana Park Reservoir 4,462,387 4,462,387 Marana Park Well 1,206,980 1,206,980 Marana Park Well, Booster & Electrical Upgrade 220,000 220,000 Marana Road Realignment 133,501 133,501 Water Reclamation Facility 2nd Screw Press 1,176,570 1,176,570 MMC Campus Improvements 512,179 512,179 MMC Drainage Improvements 122,993 122,993 MMC Generator Upgrade 800,000 800,000 MMC Interior Lighting Improvements 258,000 258,000 MOC Parking Lot Reconstruction 26,651 26,651 MOC Roof & HVAC Replacement 300,000 300,000 MOC Security Walls, New Entry Gate 314,000 314,000 Moore Rd Rehabilitation from Sanders Rd to I-10 500,000 500,000 Moore Rd Rehabilitation East & West of Dove Mtn 220,000 220,000 Marana Police Department Console Modernization 75,108 75,108 New Renewable Water Resource Acquisition 4,444,750 4,444,750 8,889,500 North Marana Drainage Improvements 200,000 200,000 North Marana Pavement Rehabilitation Phase 2 550,000 550,000 127Marana Council Study Session Meeting April 26, 2022 Page 133 of 197 FISCAL YEAR 2022-2023 TOWN OF MARANA FIVE YEAR CAPITAL IMPROVEMENT PROGRAM Project Name 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 Grand Total North Marana Sewer Interceptor 7,459,392 7,645,877 15,105,269 Northwest Recharge, Recovery, & Delivery System 9,884,621 4,170,578 14,055,199 Ora Mae Harn Park Facility Expansion 400,000 400,000 Oshrin Line Replacement 215,000 125,000 140,000 480,000 Oshrin Well Rehabilatation 140,000 140,000 Palo Verde Well Rehabilatation 140,000 140,000 Picture Rocks Interconnect 183,563 1,370,600 1,554,163 Pines Settlement Repair 1,120,000 1,120,000 Pioneer Well Electrical Upgrade 220,000 220,000 Postvale Rd. to Grier Rd. Rehabilitation Phase 2 260,000 260,000 Rillito Village Tr. Drainage Improvements 795,815 795,815 Rillito Vista Lift Station Upgrade 671,400 671,400 Rwy 30 Safety Mitigation 150,000 150,000 Runway 3-21, Taxiway B2 Reconstruction, Hangar 6 Removal 1,127,924 6,000,000 7,127,924 Saguaro Bloom Community Park, Phase 2 350,000 3,000,000 3,350,000 Saguaro Bloom Generator Replacement 120,000 120,000 Sandario Well Rehabilitation 140,000 140,000 Sanders Rd 24-inch Water Line 356,095 4,522,407 4,878,502 Santa Cruz Shared Use Path, at Calportland 2,289,290 2,289,290 SCADA & Integrated Telemetry 247,893 300,000 547,893 Sewer Conveyance System Rehabiltation 41,600 661,282 552,533 574,635 1,830,050 Silverbell Rd. Sidewalk, Twin Peaks to Coachline 215,000 215,000 Silverbell Rd. Widening, Ina Rd. to Sunset Rd.400,000 2,000,000 2,400,000 South Marana Pavement Rehabilitation Phase 2 600,000 600,000 Streets Impact Fee Study 60,347 60,347 TABY Downtown Artwork 17,501 17,501 Tangerine 16-Inch with Break Tanks 560,700 100,000 660,700 Tangerine Farms Rd. Extension 2,800,000 10,000,000 9,000,000 21,800,000 Tangerine Farms Rd. Irrigation Improvements 120,000 600,000 720,000 Tangerine Rd. Widening Phase 2A 15,835,081 13,443,452 29,278,533 Tangerine Rd. Widening Phase 2B 21,286,848 15,000,000 36,286,848 Tangerine Sky Park Phase 2 200,000 1,100,000 1,300,000 128Marana Council Study Session Meeting April 26, 2022 Page 134 of 197 FISCAL YEAR 2022-2023 TOWN OF MARANA FIVE YEAR CAPITAL IMPROVEMENT PROGRAM Project Name 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 Grand Total Taxiway A Reconstruction 700,000 8,860,000 9,560,000 Taxiway C Reconstruction 190,000 2,310,000 2,500,000 Taxiways B and E Lighting Upgrade 1,650,000 1,650,000 Tortolita Preserve Improvements 251,549 251,549 Town Street Lighting Program 100,000 100,000 100,000 100,000 100,000 500,000 Twin Peaks Rd. & Sandario Rd. Intersection 1,110,657 1,110,657 Twin Peaks Rd. Rehabilitation 450,000 450,000 Twin Peaks Rd. Restoration to West Town Limits 300,000 5,000,000 5,300,000 Twin Peaks Rd. at Rattlesnake Pass Widening 17,553,323 17,553,323 Water Impact Fee Study 107,612 107,612 Water Operations New Field Office 40,000 360,000 400,000 Water Quality Blend Evaluation 120,000 120,000 West Apron Reconstruction Phase 1 1,002,181 2,250,000 3,252,181 West Apron Reconstruction Phase 2 7,290,000 7,290,000 Grand Total 114,104,958 91,789,003 34,186,595 40,799,047 46,311,663 327,191,266 129Marana Council Study Session Meeting April 26, 2022 Page 135 of 197 130Marana Council Study Session Meeting April 26, 2022 Page 136 of 197 OPERATING CAPITAL AND PROJECTS 131Marana Council Study Session Meeting April 26, 2022 Page 137 of 197 132Marana Council Study Session Meeting April 26, 2022 Page 138 of 197 Operating Capital and Projects Operating capital and projects capture costs associated with the repair and maintenance of capital assets, replacement of equipment, studies, and all other project type costs that do not result in the acquisition or construction of a capital infrastructure asset. Operating Capital and Projects Recommended Budget Town Manager Master Transportation Plan 320,000 Website Implementation 34,400 Total for Town Manager $354,400 Town Clerk 2022 Scheduled elections 90,000 Restricted – in the event of an unscheduled special election 60,000 Total for Town Clerk $150,000 Finance New Software for Budget report 30,000 Total for Finance $30,000 Technology Services New Permitting/Licensing System 275,000 Council Chambers Display Replacements 30,000 Computer Replacements 150,000 Police Radio Replacements 40,000 Total for Technology Services $495,000 Development Services Master Plan Development– per 2040 General Plan 300,000 Development of Drainage Study Reference Document 50,000 IPlan Tables for Plan Examiners 90,000 Total for Development Services $440,000 Police MPD Console Modernization – carry over 75,108 Total for Police $75,108 Public Works Furniture Replacement 65,000 Sally Port setup project - MMC 40,800 Facilities Master Plan – continued 50,000 MMC Remodel of Receptionist Area 135,000 133Marana Council Study Session Meeting April 26, 2022 Page 139 of 197 Operating Capital and Projects Recommended Budget Furniture for Courts 85,000 Replacement of aging HVAC, Bard Units & Water Heaters 137,000 Propane Fuel Tank at MOC 20,000 MOC Building L remodel and Locker Rooms 55,000 MMC 3rd Floor Balcony Tile Replacement 25,000 Total for Public Works $612,800 Parks and Recreation Recreation Management Software 45,000 40 Foot Christmas Tree 200,000 Continental Ranch & Crossroads Park Appliance Replacement 28,000 Pro Force Debris Blower 9,775 Field Pro 6040 40,600 Kubota RTV 16,000 Kickbroom Towable Sweeper 34,500 Resurfacing Splash Pad 130,000 Total for Parks and Recreation $503,875 Community and Neighborhood Services CDBG Program Consolidate Plan Consulting Services 50,000 Total for Community and Neighborhood Services $50,000 Water Operating Water Master Plan Update 65,320 Total for Water Operating $65,320 Wastewater Operating Sewer Master Plan Update 59,433 Saguaro Bloom Lift Station Grinder 185,000 Towable Generator 30,000 UV Weir replacement 76,500 WRF Sand Filter Rehabilitation 120,000 Sand Filter Compression Replacement 90,000 Total for Wastewater Operating $560,933 Airport Operating Surveillance Cameras/Security 50,000 Toro Mower Replacement 19,580 Total for Airport Operating $69,580 New Vehicle Purchases (Not part of replacement program) Vehicles for 4 Police Officers & 2 Detectives 403,600 134Marana Council Study Session Meeting April 26, 2022 Page 140 of 197 Operating Capital and Projects Recommended Budget Vehicle for Building Inspector 43,400 Vehicle for Fleet Superintendent 45,400 Vehicles for Irrigation Control Technician and Maintenance Associate III 120,000 Vehicle for Traffic Manager 36,700 Vehicle for Engineering Specialist 43,400 Vehicles for Construction Inspector and Project Manager 86,800 Vehicle for Facilities Compliance Specialist 36,500 Vehicle for Crime Scene Unit - Van 87,000 Vehicle for Water Reclamation Operator II 43,400 Total for New Vehicle Purchases $946,200 Vehicle Replacements* Unit 574-2013 Tahoe SSV PPV 4x4 89,100 Unit 576-2013 Chevy Caprice 86,350 Unit 583-2013 Chevy Caprice 86,350 Unit 594-2014 Tahoe PPV 86,350 Unit 597-2014 Tahoe PPV 86,350 Unit 598-2014 Tahoe PPV 86,350 Unit 1002-2014 Tahoe SSV PPV 4x4 89,100 Unit 1019-2015 Tahoe PPV 86,350 Unit 1021-2015 Tahoe PPV 86,350 Unit 606-2001 GMC 6500 Series 140,250 Unit 845-2003 Ingersol Rand Bobcat 79,200 Unit 2015-2010 Ford F150 Super Cab 4x4 54,450 Unit 2024-2012 E450 Passenger Bus 86,790 Unit 430-2004 Chevy Silverado Crew Cab 4x4 74,800 Unit 614-2011 Ford F640 Super 162,700 Road Grader Replacement – HURF 450,000 Vermeer V2501D Replacement -HURF 52,250 Brush Chipper BC 100XL - HURF 58,000 Carry-forward purchases** 6 PD Units: 573-2013, 1015-2015, 525-2010, 545-2011, 580-2013, 593-2014 390,000 Unit 1024-2016 Ford Fusion 32,000 Unit 2051-2015 Ford Explorer SUV 38,000 New Vehicles for 5 new police officers (FY2022) 325,000 New Vehicle for Parks new position – Maintenance III (FY2022) 38,750 Total for Vehicle Replacements $2,764,840 Grand Total $ 7,118,056 135Marana Council Study Session Meeting April 26, 2022 Page 141 of 197 * Vehicle Replacements reflect the use of replacement dollars set aside in previous fiscal years and reflect the organization’s commitment in ensuring employees have safe and reliable vehicles and equipment needed to provide a high level of service. **Some vehicle replacements presented above were scheduled for purchase in the prior year, but a shortage of components will delay delivery by the manufacturer until fiscal year 2023-2023. Thus, the corresponding vehicles and updated budget amounts were carried forward to this year’s proposed budget. 136Marana Council Study Session Meeting April 26, 2022 Page 142 of 197 Capital Projects A complete list of the Town’s five year Capital Improvement Plan is included in a different section of this document. The following projects and initiatives, being funded in part or in whole by the General Fund, are being considered in the 2022-2023 fiscal year budget process and are currently factored in when calculating the estimated ending fund balance for fiscal year 2022-2023. Many of these projects were included in the prior year budget and are being continued into the current year budget. Project* Description Recommended Budget Civic Center Dr., Electrical Improvements Electrical improvements at Civic Center Drive roundabout $270,500 El Rio Preserve Expansion Design to increase recreational and educational programming at El Rio Preserve 85,000 Crossroads Park Entry Path Improvements Update the loop entry to park for walkers and cyclists 90,000 El Rio Disc Golf course For the design of the El Rio Disc Golf course 52,905 El Rio Recreation Area Parking Lot To create additional parking at the El Rio Recreation area 132,347 Heritage Park Pole Barn To repair/replace the Heritage Park Pole Barn which is structurally compromised 97,223 Marana Gateway Monument Signage Create permanent structures at key Marana roadways and intersections 160,000 Tortolita Preserve Improvements For the design of improvements at the Tortolita Preserve trailhead 121,549 Tangerine Sky Park, Phase 2 Design for the expansion of the Park 200,000 Town Street Lighting Program Continued funding toward lighting at specific Town locations 100,000 MMC Generator Upgrade Replace and upgrade aging generator to provide coverage to all electrical systems 800,000 MPD Console Modernization Replacement of consoles and furniture for dispatchers 75,108 MMC Interior Lighting Improvements Conversion of existing lighting to LEDs 258,000 MOC Roof & HVAC Replacement Replace aging roof and HVAC equipment 300,000 MOC Security Walls & New Entry Gate Security and safety improvements at the MOC 314,000 MMC Building A Waterproofing and Drainage Improvements Funding to address water related damage to MMC Building A 122,993 Total for General Fund $3,179,625 * Some of the projects above started construction in fiscal year 2022 and will be completed in fiscal year 2022- 2023. Thus, amounts presented above reflect estimates of budget appropriation that may be needed to finish the projects and may be adjusted further prior to the issuance of the final budget. 137Marana Council Study Session Meeting April 26, 2022 Page 143 of 197 138Marana Council Study Session Meeting April 26, 2022 Page 144 of 197 CARRY FORWARD REQUESTS 139Marana Council Study Session Meeting April 26, 2022 Page 145 of 197 140Marana Council Study Session Meeting April 26, 2022 Page 146 of 197 Carry Forward Requests The following items, present select projects that were requested for carry forward into the fiscal year 2022-2023 budget. The amounts included within this section are projected carry forward, and only reflect the request to expend remaining budget approved in the prior fiscal year. Transportation related, infrastructure projects and impact fee funded projects are not included below. A complete list of the Town’s five year Capital Improvement Plan is included in a different section of this document. Carry Forward Requests - Updated Recommended Budget Police Vehicles for new officer positions 325,000 MPD Console Modernization 75,108 Total for Police $400,108 Public Works Vehicle for Custodian position 36,500 MMC Interior Lighting Improvements 158,000 MOC Security Walls & New Entry Gate 314,000 Civic Center Dr., Electrical Improvements 74,150 MMC Building A Waterproofing and Drainage Improvements 108,448 Total for Police $691,098 Parks and Recreation El Rio Recreation Area Parking Lot 132,347 Heritage Park Pole Barn 97,223 El Rio Disc Golf Course 52,905 F350 Crew Cab 38,750 Total for Parks and Recreation $321,225 Vehicle Replacements Vehicles from the FY2022 planned replacements 460,000 Total for Vehicle Replacements $460,000 General Fund Total $1,872,431 141Marana Council Study Session Meeting April 26, 2022 Page 147 of 197 142Marana Council Study Session Meeting April 26, 2022 Page 148 of 197 AUTHORIZED PERSONNEL 143Marana Council Study Session Meeting April 26, 2022 Page 149 of 197 144Marana Council Study Session Meeting April 26, 2022 Page 150 of 197 RECOMMENDED AUTHORIZED POSITION SCHEDULE FISCAL YEAR 2022-2023 2020 2020 2021 2021 2022 2022 2023 Adopted Actual Adopted Estimated Adopted Estimated Budget Town Manager Town Manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Deputy Town Manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Assistant Town Manager 1.00 1.00 1.00 1.00 - - - Executive Assistant to the Town Manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Town Engineer - - - - 1.00 1.00 - Administrative Assistant 1.00 1.00 1.00 1.00 1.00 1.00 - Assistant to the Town Manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Communication and Marketing Division Communications Manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Communications Specialist 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Graphics Designer 1.50 1.50 1.50 1.50 1.50 - - Visual Communications Designer - - - - - 1.50 2.50 Special Events Division Special Events Coordinator 1.00 1.00 1.00 1.00 1.00 - - Special Events Programmer 1.00 1.00 1.00 1.00 - - - Total Town Manager Office 11.50 11.50 11.50 11.50 10.50 9.50 8.50 Town Clerk Town Clerk 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Deputy Town Clerk 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Executive Assistant 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Records Clerk 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Total Town Clerk 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Human Resources Human Resources Director 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Human Resources Deputy Director 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Risk Manager - - - - 1.00 1.00 1.00 Sr. Human Resources Analyst 2.00 2.00 2.00 2.00 2.00 2.00 2.00 HRIS Administrator - - - - - - 1.00 Human Resources Analyst 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Executive Assistant 1.00 1.00 1.00 1.00 1.00 1.00 1.00 145Marana Council Study Session Meeting April 26, 2022 Page 151 of 197 RECOMMENDED AUTHORIZED POSITION SCHEDULE FISCAL YEAR 2022-2023 2020 2020 2021 2021 2022 2022 2023 Adopted Actual Adopted Estimated Adopted Estimated Budget Human Resources, continued Safety Division Emergency Management and Safety Coordinator 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Total Human Resources 7.00 7.00 7.00 7.00 8.00 8.00 9.00 Finance Finance Director 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Finance Deputy Director 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Finance Manager - - - - 1.00 1.00 1.00 Revenue & Customer Manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Senior Budget Analyst - - 1.00 1.00 1.00 1.00 1.00 Budget Analyst 1.00 1.00 - - - - - Payroll Administrator 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Payroll Technician - - - - - - 1.00 Procurement Officer 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Procurement Buyer - - - - - - 1.00 Financial Specialist - - - - 1.00 1.00 1.00 Procurement Agent 1.00 1.00 1.00 1.00 - - - Grants Manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Senior Accountant 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Senior Accounting Associate 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Accounting Associate 0.75 0.75 0.75 0.75 0.75 0.75 1.00 License & Tax Specialist 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Administrative Assistant 0.50 0.50 0.50 0.50 - - - Asset Systems Manager 1.00 1.00 1.00 1.00 - - - Customer Service Representative 2.00 2.00 2.00 2.00 2.00 2.00 3.00 Total Finance 16.25 16.25 16.25 16.25 15.75 15.75 19.00 Legal Town Attorney 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Deputy Town Attorney 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Senior Assistant Town Attorney 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Assistant Town Attorney 1.00 1.00 1.00 1.00 1.00 2.00 2.00 Associate Town Attorney 1.00 1.00 1.00 1.00 1.00 - - Paralegal - - - - 1.00 - - 146Marana Council Study Session Meeting April 26, 2022 Page 152 of 197 RECOMMENDED AUTHORIZED POSITION SCHEDULE FISCAL YEAR 2022-2023 2020 2020 2021 2021 2022 2022 2023 Adopted Actual Adopted Estimated Adopted Estimated Budget Legal, continued Senior Legal Assistant - - - - - 1.00 1.00 Legal Assistant 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Legal Document Specialist 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Legal Clerk - - - - 1.00 1.00 1.00 Administrative Assistant 0.50 0.50 0.50 0.50 - - - Total Legal Department 7.50 7.50 7.50 7.50 9.00 9.00 9.00 Technology Services Technology Services Director 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Technology Services Deputy Director - - - - - - 1.00 Technology Manager 2.00 2.00 2.00 2.00 1.00 1.00 1.00 Technology Supervisor - - - - 2.00 2.00 2.00 Senior Network Administrator 1.00 1.00 1.00 1.00 1.00 2.00 2.00 Network Administrator 1.00 1.00 1.00 1.00 1.00 - - Database Administrator 1.00 1.00 1.00 1.00 - - - Software Developer 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Senior GIS Analyst 1.00 1.00 1.00 1.00 1.00 1.00 1.00 GIS Analyst 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Technology Analyst 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Technology Support Supervisor - - - 1.00 1.00 1.00 1.00 Technology Support Specialist II 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Technology Support Specialist I 1.00 1.00 1.00 - - - 1.00 Asset Systems Manager - - - - 1.00 1.00 1.00 Assets Coordinator - - - - 3.00 3.00 3.00 Total Technology Services 14.00 14.00 14.00 14.00 18.00 18.00 20.00 Office of Economic & Tourism Development Director of Economic and Tourism Development 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Tourism & Marketing Manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Economic Development Specialist 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Graphics Designer 0.50 0.50 0.50 0.50 0.50 - - Visual Communications Designer - - - - - 0.50 0.50 Total Office Economic & Tourism Development 3.50 3.50 3.50 3.50 3.50 3.50 3.50 147Marana Council Study Session Meeting April 26, 2022 Page 153 of 197 RECOMMENDED AUTHORIZED POSITION SCHEDULE FISCAL YEAR 2022-2023 2020 2020 2021 2021 2022 2022 2023 Adopted Actual Adopted Estimated Adopted Estimated Budget Community & Neighborhood Services Community & Neighborhood Services Director 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Community Outreach Coordinator 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Housing Rehabilitation Specialist 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Community Services Specialist 1.00 - - - - - - Executive Assistant 1.00 1.00 1.00 1.00 1.00 1.00 Code Enforcement Division Chief Code Enforcement & Animal Control Officer 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Code Enforcement Officer II 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Code Enforcement Officer I 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Animal Services Division Animal Control Officer 3.00 3.00 3.00 3.00 3.00 3.00 3.50 Total Community & Neighborhood Services 10.00 10.00 10.00 10.00 10.00 10.00 10.50 Development Services Development Services Administration Development Services Director 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Business Process Supervisor - 1.00 1.00 1.00 1.00 - - Development Services Analyst 1.00 1.00 Business Process Analyst 1.00 - - - - - - Executive Assistant 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Building Safety Chief Building Official 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Assistant Building Official 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Chief Building Inspector 1.00 1.00 1.00 1.00 - - - Senior Plans Examiner 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Plans Examiner 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Building Inspector II 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Building Inspector I 1.00 1.00 2.00 2.00 2.00 3.00 3.00 Permit Clerk 3.00 3.00 2.00 2.00 1.00 - - Development Coordinator 1.00 1.00 1.00 1.00 2.00 - - Business Process Supervisor - - - - - 1.00 1.00 Permit Technician - - - - - 3.00 3.00 148Marana Council Study Session Meeting April 26, 2022 Page 154 of 197 RECOMMENDED AUTHORIZED POSITION SCHEDULE FISCAL YEAR 2022-2023 2020 2020 2021 2021 2022 2022 2023 Adopted Actual Adopted Estimated Adopted Estimated Budget Development Services, continued Engineering Development Services Deputy Director - - - - 1.00 1.00 1.00 Town Engineer 1.00 1.00 1.00 1.00 - - - Engineering Deputy Director 1.00 1.00 1.00 1.00 - - - Civil Engineer - - - - 1.00 1.00 1.00 Environmental Project Manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Environmental Specialist - - - - - - 1.00 Engineering Specialist 2.00 2.00 2.00 2.00 2.00 2.00 3.00 Development Engineering Division Manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Development Coordinator 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Real Property Manager - - - - 1.00 1.00 1.00 Real Property Coordinator - - - - 1.00 1.00 1.00 Senior Executive Assistant 1.00 1.00 1.00 1.00 1.00 - - Planning Planning Manager - - - - 1.00 1.00 1.00 Development Coordinator - - - - - 1.00 1.00 Principal Planner 1.00 1.00 1.00 1.00 - - - Senior Planner 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Total Development Services Department 30.00 30.00 30.00 30.00 31.00 33.00 35.00 Police Chief of Police 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Deputy Chief of Police 1.00 1.00 1.00 1.00 1.00 - - Police Captain 1.00 1.00 1.00 1.00 1.00 2.00 2.00 Police Lieutenant 2.00 2.00 3.00 3.00 3.00 4.00 4.00 Police Sergeant 11.00 11.00 13.00 13.00 14.00 14.00 15.00 Police Officer 74.00 74.00 66.00 66.00 70.00 70.00 74.00 Police Detective - - 5.00 5.00 5.00 5.00 6.00 Police Records Supervisor 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Police Telecommunications Manager 1.00 1.00 1.00 1.00 1.00 - - Police Telecommunications Supervisor 1.00 1.00 1.00 1.00 2.00 2.00 2.00 Dispatcher 13.00 13.00 13.00 13.00 13.00 13.00 13.00 Police Records Specialist 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Police Records Clerk 4.00 4.00 4.00 4.00 4.00 4.00 4.00 149Marana Council Study Session Meeting April 26, 2022 Page 155 of 197 RECOMMENDED AUTHORIZED POSITION SCHEDULE FISCAL YEAR 2022-2023 2020 2020 2021 2021 2022 2022 2023 Adopted Actual Adopted Estimated Adopted Estimated Budget Police, continued Crime Scene Property & Evidence Supervisor 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Property & Evidence Records Clerk 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Crime Analyst 1.00 1.00 1.00 1.00 1.00 - - Senior Crime Analyst - - - - - 1.00 1.00 Crime Scene Specialist 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Administrative Supervisor 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Customer Service Representative - - - - 1.00 1.00 1.00 Customer Service Clerk 1.00 1.00 1.00 1.00 - - - Administrative Assistant 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Total Police Department 121.00 121.00 121.00 121.00 127.00 127.00 133.00 Courts Town Magistrate 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Court Operations Specialist 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Court Administrator 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Court Probation Monitor 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Court Security Officer 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Court Collections Specialist 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Court Supervisor 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Senior Courtroom Specialist 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Courtroom Specialist 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Court Clerk 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Senior Court Clerk 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Total Courts 14.00 14.00 14.00 14.00 14.00 14.00 14.00 Public Works Public Works Administration Public Works Director 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Public Works Deputy Director 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Traffic Manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Executive Assistant 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 1.00 1.00 1.00 1.00 150Marana Council Study Session Meeting April 26, 2022 Page 156 of 197 RECOMMENDED AUTHORIZED POSITION SCHEDULE FISCAL YEAR 2022-2023 2020 2020 2021 2021 2022 2022 2023 Adopted Actual Adopted Estimated Adopted Estimated Budget Public Works, continued Fleet Division Superintendent 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Lead Fleet Technician 1.00 1.00 1.00 1.00 1.00 1.00 2.00 Fleet Technician II 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Fleet Technician I 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Equipment Mechanic 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Streets Division Superintendent 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Traffic Technician III 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Traffic Technician II 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Traffic Technician I 1.00 1.00 1.00 - - - - Signs & Markings Technician - - - 1.00 1.00 1.00 1.00 Signs & Marking Specialist 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Public Works Supervisor 2.00 2.00 2.00 2.00 1.00 2.00 2.00 Equipment Operator II 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Equipment Operator I 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Maintenance Associate III 7.00 7.00 7.00 7.00 3.00 2.00 2.00 Maintenance Associate II 4.00 4.00 4.00 4.00 4.00 4.00 4.00 Maintenance Associate I 1.00 1.00 1.00 1.00 4.00 4.00 4.00 Engineering Aide 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Senior Engineering Specialist - - - - - 1.00 1.00 Engineering Specialist 1.00 1.00 1.00 1.00 1.00 - - Assets Coordinator 1.00 1.00 1.00 1.00 - - - Facilities Division Superintendent 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Public Works Supervisor 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Facilities Tradesman 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Facilities Technician II 2.00 2.00 2.00 2.00 3.00 3.00 3.00 Facilities Technician I 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Facilities Compliance Specialst - - - - - - 1.00 Custodian II - - - - 1.00 - - Lead Custodian - - - - - 1.00 1.00 Custodian I - - - - 3.00 - - Custodian - - - - - 3.00 3.00 151Marana Council Study Session Meeting April 26, 2022 Page 157 of 197 RECOMMENDED AUTHORIZED POSITION SCHEDULE FISCAL YEAR 2022-2023 2020 2020 2021 2021 2022 2022 2023 Adopted Actual Adopted Estimated Adopted Estimated Budget Public Works, continued Capital Improvement Program Town Engineer - - - - - - 1.00 CIP Engineering Division Manager 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Project Manager 3.00 3.00 3.00 3.00 3.00 3.00 4.00 CIP Process Analyst 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Construction Inspector 3.00 3.00 3.00 3.00 3.00 3.00 4.00 Right of Way Inspector 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Project Coordinator - CIP 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Engineering Document Clerk 1.00 - - - - - - Real Property Coordinator - 1.00 1.00 1.00 - - - Total Public Works Department 56.00 56.00 56.00 56.00 57.00 57.00 62.00 Parks & Recreation Parks & Recreation Administration Parks and Recreation Director 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Parks and Recreation Deputy Director 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Executive Assistant 1.00 1.00 1.00 1.00 2.00 2.00 2.00 Superintendent 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Business Process Manager 1.00 1.00 1.00 1.00 1.00 - - Business Process Supervisor - - - - - 1.00 1.00 Special Events Coordinator - - - - - 1.00 1.00 Recreation Division Recreation Coordinator 1.00 - - - - - - Recreation Supervisor - 1.00 1.00 1.00 1.00 1.00 1.00 Recreation Programmer 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Maintenance Division Superintendent 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Parks Maintenance Supervisor 3.00 3.00 3.00 3.00 4.00 4.00 4.00 Irrigation Control Specialist 2.00 2.00 2.00 2.00 2.00 - - Irrigation Control Technician - - - - - 2.00 3.00 Assets Coordinator 1.00 1.00 1.00 1.00 - - - Maintenance Associate III 10.00 10.00 10.00 10.00 15.00 15.00 16.00 Maintenance Associate II 4.00 4.00 4.00 4.00 4.00 4.00 4.00 Maintenance Associate I 5.00 5.00 5.00 5.00 7.00 7.00 7.00 152Marana Council Study Session Meeting April 26, 2022 Page 158 of 197 RECOMMENDED AUTHORIZED POSITION SCHEDULE FISCAL YEAR 2022-2023 2020 2020 2021 2021 2022 2022 2023 Adopted Actual Adopted Estimated Adopted Estimated Budget Parks & Recreation, continued Aquatics Division Recreation Coordinator 1.00 - - - - - - Aquatic Maintenance Technician - - - - 1.00 1.00 1.00 Recreation Supervisor - 1.00 1.00 1.00 1.00 1.00 1.00 Recreation Programmer 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Special Interests Division Customer Service Representative 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Recreation Coordinator 1.00 - - - - - - Recreation Supervisor - 1.00 1.00 1.00 1.00 1.00 1.00 Recreation Programmer 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Outdoor Division Recreation Coordinator 1.00 - - - - - - Recreation Supervisor - 1.00 1.00 1.00 1.00 1.00 1.00 Recreation Programmer - - - - 1.00 1.00 1.00 Maintenance Associate III 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Maintenance Associate I 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Total Parks Department 42.00 42.00 42.00 42.00 52.00 53.00 55.00 Water Department Water Director 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Water Deputy Director 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Water Business Services Coordinator 1.00 1.00 1.00 1.00 1.00 - - Water Business Services Supervisor - - - - - 1.00 1.00 Water Business Services Analyst - - - - 1.00 - - Water Business Manager - - - - - 1.00 1.00 Water Distribution Supervisor 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Water Production Supervisor 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Water Resource Coordinator 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Water Quality Supervisor - - 1.00 1.00 1.00 - - Chief Water Quality Operator - - - - - 1.00 1.00 Water Quality Specialist 1.00 1.00 - - - - - Water Quality Technician 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Water Construction Inspector 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Water Conservation Specialist - - - - - - 1.00 153Marana Council Study Session Meeting April 26, 2022 Page 159 of 197 RECOMMENDED AUTHORIZED POSITION SCHEDULE FISCAL YEAR 2022-2023 2020 2020 2021 2021 2022 2022 2023 Adopted Actual Adopted Estimated Adopted Estimated Budget Water Department, continued Facilities Tradesman - - 1.00 1.00 1.00 1.00 1.00 Water Operator III 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Water Operator II 6.00 6.00 7.00 7.00 7.00 7.00 7.00 Water Operator I 1.00 1.00 1.00 1.00 2.00 2.00 2.00 Civil Engineer 1.00 1.00 1.00 1.00 2.00 1.00 2.00 CIP Engineering Division Manager - - - - - 1.00 1.00 Water Billing Specialist 2.60 2.60 2.60 2.60 2.60 2.60 3.00 SCADA Administrator 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Water Technology Support Specialist II 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Assets Coordinator 1.00 1.00 1.00 1.00 - - - Executive Assistant 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Water Operations Manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Total Water Department 27.60 27.60 29.60 29.60 31.60 31.60 34.00 Water Reclamation Department Water Reclamation Operations Manager 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Chief Water Reclamation Operator 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Water Reclamation Operator II 2.00 2.00 2.00 2.00 2.00 2.00 3.00 Water Reclamation Operator I 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Water Reclamation Mechanic 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Associate Water Reclamation Mechanic 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Total Water Reclamation Department 7.00 7.00 7.00 7.00 7.00 7.00 8.00 Airport Operations Airport Director 1.00 1.00 1.00 - - - - Airport Manager - - - 1.00 1.00 1.00 1.00 Airport Operations Supervisor 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Administrative Assistant 1.00 Maintenance Associate III 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Total Airport Operations 3.00 3.00 3.00 3.00 3.00 3.00 4.00 TOTAL TOWN AUTHORIZED POSITIONS 375.35 375.35 377.35 377.35 402.35 404.35 429.50 154Marana Council Study Session Meeting April 26, 2022 Page 160 of 197 155Marana Council Study Session Meeting April 26, 2022 Page 161 of 197 Marana Council Study Session Meeting April 26, 2022 Page 162 of 197 Fiscal Year 2022-2023 Manager’s Recommended Budget 4/26/2022 Terry S. Rozema, Town Manager Marana Council Study Session Meeting April 26, 2022 Page 163 of 197 Overview •Accomplishments •Economic Outlook •Revenue Outlook •Budget Overview •Investment Summary •Selected Budget Summaries •Next Steps 2 Marana Council Study Session Meeting April 26, 2022 Page 164 of 197 CORE VALUES 3 Marana Council Study Session Meeting April 26, 2022 Page 165 of 197 5-STAR SERVICE 4 “2ND SAFEST CITY IN ALL OF AZ WITH A POPULATION OF OVER 30K” “NATIONAL AWARD FOR COMMUNICATIONS STRATEGIC PLAN” “NATIONAL DIGITAL CITIES RECOGNITION” Marana Council Study Session Meeting April 26, 2022 Page 166 of 197 ACCOMPLISHMENTS •Completed Court Jury Assembly Room •Completed Camino De Oeste Road Restoration •Completed Marana Road and Sanders Road Restoration •El Rio Preserve CMID Connection 5 Marana Council Study Session Meeting April 26, 2022 Page 167 of 197 ACCOMPLISHMENTS •Marana PD achieved reaccreditation for the third year of the Arizona Law Enforcement Accreditation Program (ALEAP) •FAA Air Traffic Control Tower moving forward •Market Study and Employee Compensation •Design phase of Community Center and Aquatics Facility begins 6 Marana Council Study Session Meeting April 26, 2022 Page 168 of 197 FY2023 Manager’s Recommended Budget Manager’s Recommended Budget –Complete Budget General Fund Special Revenue Funds Capital Projects Funds (including impact fees) Debt Service Funds Internal Service Funds Enterprise Funds Special Taxing Districts 7 Marana Council Study Session Meeting April 26, 2022 Page 169 of 197 ECONOMIC OUTLOOK 8 Marana Council Study Session Meeting April 26, 2022 Page 170 of 197 F/Y 2023 Economic Outlook •Economy is strong •F/Y 2022 growth levels are not sustainable •Revenue growth returning to “normal” levels •Cautious approach 9 JLBC Recommended Forecast –April 2022 Marana Council Study Session Meeting April 26, 2022 Page 171 of 197 FY2023 Economic Outlook •National Unemployment Rate – 3.6% •Recovered 90.4% of job losses •Pima County job recovery at 88.5% •Government and Leisure & Hospitality still lagging •National Inflation –8.5% (40 year high) •Interest rates rising •Fed –how to raise rates without impacting growth •Impacts to global economy 10 *U of A Eller School, Economic and Business Research Center and Rounds Consulting Group presentation to JLBC Marana Council Study Session Meeting April 26, 2022 Page 172 of 197 REVENUES OUTLOOK 11 Marana Council Study Session Meeting April 26, 2022 Page 173 of 197 Sales Taxes 12 Change from FY2022 Budget: 17.0% or $3.3M Retail: 27.9% Utilities: 3.7% Contracting: 10.0% Restaurants: 20.2% * Actuals Estimated $29.0 $30.5 $34.0 $36.6 $26.3 $26.9 $24.4 $31.0 $36.2 $- $5 $10 $15 $20 $25 $30 $35 $40 F/Y 2018-19 F/Y 2019-20 F/Y 2020-21 F/Y 2021-22*F/Y 2022-23 BudgetedMillions Actual Revenue Budgeted Revenue Marana Council Study Session Meeting April 26, 2022 Page 174 of 197 State Shared Revenues 13 Change from FY2022 Budget: 9.2% or $1.3M Shared Sales Tax: 14.9% Urban Revenue: 8.2% Auto Lieu: 3.6% * Actuals Estimated **Excludes one-time ARPA funding $12.0 $13.1 $15.4 $16.5 $11.7 $12.8 $13.0 $14.6 $17.0 $- $2 $4 $6 $8 $10 $12 $14 $16 $18 F/Y 2018-19 F/Y 2019-20 F/Y 2020-21 F/Y 2021-22*F/Y 2022-23 BudgetedMillions Actual Revenue Budgeted Revenue Marana Council Study Session Meeting April 26, 2022 Page 175 of 197 Licenses, Fees & Permits 14 Single Family Residence Building Permits by Fiscal Year (F/Y 2022 Budget: 940) *Fiscal Year 2022 actual is estimated 687 794 802 855 1,067 1,460 0 200 400 600 800 1,000 1,200 1,400 1,600 F/Y 2017 F/Y 2018 F/Y 2019 F/Y 2020 F/Y 2021 F/Y 2022* Marana Council Study Session Meeting April 26, 2022 Page 176 of 197 Licenses, Fees & Permits 15 Change from F/Y 2022 Budget: 47.7% or $2.8M SFR F/Y 2023 Budget: 1,250 * Actuals Estimated $5.9 $6.0 $7.2 $10.0 $4.8 $4.9 $4.4 $5.8 $8.6 $- $2 $4 $6 $8 $10 $12 F/Y 2018-19 F/Y 2019-20 F/Y 2020-21 F/Y 2021-2022*F/Y 2022-23 BudgetedMillions Actual Revenue Budgeted Revenue Marana Council Study Session Meeting April 26, 2022 Page 177 of 197 BUDGET OVERVIEW 16 Marana Council Study Session Meeting April 26, 2022 Page 178 of 197 Manager’s Recommended Budget Fiscal year 2022-2023 Overview 17 Operating, $95M, 42% Capital Outlay, $118.6M, 52% Debt Service, $12.9M, 6% Expenditure by Category $226.4 Million Sales Tax, $50.5M, 31% Intergovernmental, $55M, 34% Licenses, Permits & Fees, $23.7M, 15% Charges for Services, $11.9M, 7% Other, $11.7M, 7% Bonds/loan, $8.9M, 6% Revenues $161.7 Million Marana Council Study Session Meeting April 26, 2022 Page 179 of 197 Manager’s Recommended Budget Fiscal year 2022-2023 Overview 18 •Structurally balanced budget •Baseline budget •Budget consistent with growth expectations •Contingency -$5 million Personnel and Benefits, $50.3M 53% Contracted Services, $19.5M, 21% Operating Supplies & Equipment, $25.1M, 26% Operating Budget by Line Item $95.0 Million Marana Council Study Session Meeting April 26, 2022 Page 180 of 197 FY 2023 Recommended Budget Summary 19 Primary Entity 2022 Adopted 2023 Recommended $ Change % Change General Fund $ 55,152,321 $ 72,726,793 $ 17,574,472 31.9% Special Revenue Funds 10,568,485 10,488,072 (80,413)-0.8% Capital Projects Funds 36,518,156 69,958,272 33,440,116 91.6% Debt Service Funds 5,908,375 6,405,137 496,762 8.4% Enterprise Funds 32,664,211 56,414,314 23,750,103 72.7% Internal Service Funds 5,067,470 5,289,950 222,480 4.4% Primary entity 145,879,018 221,282,538 75,403,520 51.7% Component Units Special Districts 13,036,512 5,154,435 (7,882,077)-60.5% Total $ 158,915,530 $ 226,436,973 $ 67,521,443 42.5% Marana Council Study Session Meeting April 26, 2022 Page 181 of 197 Included in the Budget •Compensation adjustments and 27.15 new FTEs -$4.9 million •Unfunded liability reduction -$6 million to PSPRS •Federal stimulus -$8.2 million for 2nd ARPA payment •CFD –No new debt issuance, no changes to tax rates •Capital projects -$118.6 million 20 Marana Council Study Session Meeting April 26, 2022 Page 182 of 197 Investment & Initiatives 21 Marana Council Study Session Meeting April 26, 2022 Page 183 of 197 Current Employees Compensation & Benefits adjustments - $4.9m •6% adjustment (4% merit based, 2% retention based) •Additional increases for market based adjustments •Pension rate contributions –slight decreases •Rates unchanged for health care premiums •Tuition reimbursement maintained at $25,000 •Increased benefits –Holiday and on-call overtime 22 Marana Council Study Session Meeting April 26, 2022 Page 184 of 197 Strategic Positions Working Position Title FTE •Police Officer 3 •Sergeant 1 •Detective 2 •Irrigation Control Tech.1 •Maintenance Assoc III 1 •Visual Communications Designer 1 •Tech Services Deputy Director 1 •Tech Support Specialist I 1 •Construction Inspector 1 •Facilities Compliance Specialist 1 23 Working Position Title FTE •Lead Fleet Tech 1 •Project Manager 1 •Engineering Specialist 1 •Environmental Specialist 1 •Development Coordinator*1 •Business Process Supervisor*1 •Customer Service Rep.1 •Payroll Tech.1 •Procurement Specialist 1 •Accounting Associate .25 27.15 New FTEs -$2.6M ($2.3M in Gen. Fund) Marana Council Study Session Meeting April 26, 2022 Page 185 of 197 Strategic Positions Working Position Title FTE •Systems Administrator 1 •Animal Control Officer .5 •Conservation Specialist I 1 •Civil Engineer/Hydraulic Mod.1 •Water Billing Specialist .4 •Reclamation Operator II 1 24 27.15 New FTEs -$2.6M ($2.3M in Gen. Fund) Marana Council Study Session Meeting April 26, 2022 Page 186 of 197 Resources & Tools Budgeted Expenditures $7.1M ($5.8M in Gen. Fund) •Vehicles & Equipment •New & replacement vehicles including delayed purchases •Projects •Permitting/Licensing software •Various master plan updates •MMC & MOC facilities updates & repairs •Heritage Park Splash Pad resurfacing 25 Marana Council Study Session Meeting April 26, 2022 Page 187 of 197 BUDGET SUMMARIES 26 Marana Council Study Session Meeting April 26, 2022 Page 188 of 197 General Fund Budget Summary •Personnel: 31.9% •Contracted Services: 35.2% 27 Category F/Y 2022 Budget F/Y 2023 Recommended $ Change % Change Revenue $ 53,735,342 $ 71,134,734 $ 17,399,392 32.4% Expenditures 50,152,321 67,726,793 17,574,472 35.0% Transfers Out 4,286,035 20,719,476 16,433,441 383.4% Change in fund balance $ (703,014)$ (17,311,535)$(16,608,521)2,362.5% •Operating Supp & Equip: 28.4% •Capital Outlay: 71.1% Expenditures Marana Council Study Session Meeting April 26, 2022 Page 189 of 197 General Fund Reserves 28 *Estimated based on projections $8.9 $9.3 $10.3 $11.0 $11.2 $11.8 $11.2 $13.4 $17.8 $9.7 $7.0 $7.9 $8.6 $14.6 $24.3 $41.5 $58.6 $41.7 $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 F/Y 2015 F/Y 2016 F/Y 2017 F/Y 2018 F/Y 2019 F/Y 2020 F/Y 2021 F/Y 2022*F/Y 2023*MILLIONSTarget Reserve Available Marana Council Study Session Meeting April 26, 2022 Page 190 of 197 Bed Tax Fund Budget Summary 29 Category F/Y 2022 Budget F/Y 2023 Recommended $ Change % Change Revenue $ 1,243,341 $ 1,338,158 $ 94,817 7.6% Expenditures 1,243,341 1,338,158 94,817 7.6% Change in fund balance $ -$ -$ -0 % Revenue •Sales: 7.6% Expenditures •Personnel: 5.6% •Contracted Services: 8.4% •Operating Supp & Equip: 6.0% Marana Council Study Session Meeting April 26, 2022 Page 191 of 197 HURF Fund Budget Summary 30 Category F/Y 2022 Budget F/Y 2023 Recommended $ Change % Change Revenue $ 3,917,106 $ 4,223,697 $ 306,591 7.8% Expenditures 4,348,548 5,358,694 1,010,146 23.2% Change in fund balance $ (431,442)$ (1,134,997)$ (703,555)163.1% Revenue •Intergovernmental: 7.8% Expenditures •Contracted Services: 4.3% •Operating Supp. & Equip: 12.4% •Capital Outlay: 575.7% Marana Council Study Session Meeting April 26, 2022 Page 192 of 197 Water Operating Fund Budget Summary 31 Category F/Y 2022 Budget F/Y 2023 Recommended $ Change % Change Revenue $ 8,097,282 $ 8,305,134 $ 207,852 2.6% Expenditures 8,960,652 9,289,132 328,480 3.7% Transfers In 1,217,635 1,221,578 3,943 0.3% Transfers Out 621,320 2,827,893 2,206,573 355.1% Change in fund balance $ (267,055)$ (2,590,313)$ (2,323,258)870.0% Revenue •Charges for Services: 1.7% Expenditures •Personnel: 14.6% •Contracted Services: 15.7% •Oper. Supp. & Equip: 17.1%Marana Council Study Session Meeting April 26, 2022 Page 193 of 197 Wastewater Operating Fund Budget Summary 32 Category F/Y 2022 Budget F/Y 2023 Recommended $ Change % Change Revenue $ 2,373,902 $ 3,053,875 $ 679,973 28.6% Expenditures 2,745,861 3,531,229 785,368 28.6% Transfers In 809,070 809,070 -0.0% Transfers Out 1,066,400 2,087,970 1,021,570 95.8% Change in fund balance $ (629,289)$ (1,756,254)$ (1,126,965)179.1% Revenue •Charges for Services: 24.8% Expenditures •Personnel: 23.1% •Contracted Services: 62.9% •Oper. Supp. & Equip: 4.4%Marana Council Study Session Meeting April 26, 2022 Page 194 of 197 Airport Operating Fund Budget Summary 33 Category F/Y 2022 Budget F/Y 2023 Recommended $ Change % Change Revenue $ 343,834 $ 349,672 $ 5,838 1.7% Expenditures 641,443 602,559 (38,884) -6.1% Transfers In 297,609 252,887 (44,722) -15.0% Change in fund balance $ -$ -$ -- % Revenue •Charges for Services: 1.6% Expenditures •Personnel: 3.1% •Contracted Services: 24.1% Marana Council Study Session Meeting April 26, 2022 Page 195 of 197 Key Dates 34 Dates:Stage in Budget Process Task Description May 17, 2022 Approving Council Adoption of Tentative Budget June 14, 2022 Approving Council Adoption of Final Budget Marana Council Study Session Meeting April 26, 2022 Page 196 of 197 DISCUSSION 35 Marana Council Study Session Meeting April 26, 2022 Page 197 of 197