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Regular Council Meeting Agenda Packet 06/07/2022
MARANA TOWN COUNCIL REGULAR COUNCIL MEETING NOTICE AND AGENDA 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers, June 7, 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 June 7, 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. As a courtesy to others, please turn off or put in silent mode all electronic devices. Meeting Times Welcome to this Marana Town Council meeting. Regular Council meetings are usually held the first and third Tuesday of each month at 6:00 PM at the Marana Municipal Complex, although the date or time may change and additional meetings may be called at other times and/or places. Contact the Town Clerk or watch for posted agendas for other meetings. This agenda may be revised up to 24 hours prior to the meeting. In such a case a new agenda will be posted in place of this agenda. Speaking at Meetings If you are interested in speaking to the Council during the Call to the Public or Public Hearings, you must fill out a speaker card (located in the lobby outside the Council Chambers) and deliver it to the Town Clerk prior to the convening of the meeting. Marana Regular Council Meeting June 7, 2022 Page 1 of 74 All persons attending the Council meeting, whether speaking to the Council or not, are expected to observe the Council rules, as well as the rules of politeness, propriety, decorum and good conduct. Any person interfering with the meeting in any way, or acting rudely or loudly will be removed from the meeting and will not be allowed to return. Accessibility To better serve the citizens of Marana and others attending our meetings, 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. Agendas Copies of the agenda are available the day of the meeting in the lobby outside the Council Chambers or online at www.maranaaz.gov under Agendas and Minutes. For questions about the Council meetings, special services or procedures, please contact the Town Clerk, at (520) 382-1999, Monday through Friday from 8:00 AM to 5:00 PM. 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. REGULAR COUNCIL MEETING CALL TO ORDER AND ROLL CALL PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE APPROVAL OF AGENDA CALL TO THE PUBLIC At this time any member of the public is allowed to address the Town Council on any issue within the jurisdiction of the Town Council, except for items scheduled for a Public Hearing at this meeting. The speaker may have up to three minutes to speak. Any persons wishing to address the Council must complete a speaker card located outside the Council Chambers and deliver it to the Town Clerk prior to the commencement of the meeting. Individuals addressing a meeting at the Call to the Public will not be provided with electronic technology capabilities beyond the existing voice amplification and recording capabilities in the facilities. Pursuant to the Arizona Open Meeting Law, at the conclusion of Call to the Public, individual members of the Council may respond to criticism made by those who have addressed the Council, and may ask staff to review the matter, or may ask that the matter be placed on a future agenda. Marana Regular Council Meeting June 7, 2022 Page 2 of 74 future agenda. PROCLAMATIONS MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS MANAGER’S REPORT: SUMMARY OF CURRENT EVENTS PRESENTATIONS CONSENT AGENDA The Consent Agenda contains items requiring action by the Council which are generally routine items not requiring Council discussion. A single motion and affirmative vote will approve all items on the Consent Agenda, including any resolutions or ordinances. Prior to a motion to approve the Consent Agenda, any Council member may remove any item from the Consent Agenda and that item will be discussed and voted upon separately. C1 Resolution No. 2022-052: Relating to Development; approving a Final Block Plat for San Luciano Townhomes Lot 1 and Lot 2 (Non-Buildable Lot), located at the southeast corner of the intersection of Oldfather Road and Gilbert Street (Spencer Hickman) C2 Resolution No. 2022-053: Relating to Development; approving an Amended Final Plat for Tangerine/I-10 Lots 3-5 & Block 1 generally located south of Tangerine Road and a quarter-mile west of Interstate 10 (Steve Cheslak) C3 Resolution No. 2022-054: Relating to Administration; approving and authorizing the Finance and Purchasing Director to execute a Deed of Gift donating a barcode printer to Pima Community College Police Department (Yiannis Kalaitzidis) C4 Approval of the Regular Council Meeting Summary Minutes of May 17, 2022 (Cherry L. Lawson) LIQUOR LICENSES BOARDS, COMMISSIONS AND COMMITTEES B1 Relating to Boards, Commissions and Committees; discussion and Marana Regular Council Meeting June 7, 2022 Page 3 of 74 B1 Relating to Boards, Commissions and Committees; discussion and consideration regarding recommendations from the Spring 2022 Marana Citizens' Forum on the topic "Enhancing Outdoor Recreation and Tourism Experience" (Andrea Caicedo) COUNCIL ACTION A1 Resolution No. 2022-055: Relating to Economic Development; extending the Marana Job Creation Incentive Program for ten additional years (Curt Woody) A2 Resolution No. 2022-056: Relating to Administration; adopting the Town of Marana Public Safety Personnel Retirement System (PSPRS) Pension Funding Policy for FY 2022-2023 (Yiannis Kalaitzidis) ITEMS FOR DISCUSSION / POSSIBLE ACTION D1 Resolution No. 2022-057: Relating to the Expenditure Limitation; proposing a permanent adjustment to the 1979-1980 Base Expenditure Limitation of the Town of Marana (Yiannis Kalaitzidis) D2 Relating to Development and Public Works; update, discussion, and possible direction regarding public and private projects and development applications on the Town’s Marana Current and Proposed Projects internet site (Jason Angell) D3 Relating to Legislation and Government Actions; discussion and possible action regarding all pending state, federal, and local legislation/government actions and on recent and upcoming meetings of the other governmental bodies (Terry Rozema) 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 Marana Regular Council Meeting June 7, 2022 Page 4 of 74 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 Regular Council Meeting June 7, 2022 Page 5 of 74 Council-Regular Meeting C1 Meeting Date:06/07/2022 To:Mayor and Council From:Spencer Hickman, Planner Date:June 7, 2022 Strategic Plan Focus Area: Not Applicable Subject:Resolution No. 2022-052: Relating to Development; approving a Final Block Plat for San Luciano Townhomes Lot 1 and Lot 2 (Non-Buildable Lot), located at the southeast corner of the intersection of Oldfather Road and Gilbert Street (Spencer Hickman) Discussion: Request Kimley-Horn and Associates, representing the owner, San Luciano Townhomes, LLC, has applied for approval of a final block plat for San Luciano Townhomes Lot 1 and Lot 2 (Non-Buildable Lot). Zoning On April 15, 1997, the Mayor and Town Council adopted Ordinance 97.10, annexing and approving the rezoning of the property that is the subject of this plat. Ordinance 97.10 rezoned the property from Pima County zone "Multiple Residence (CR-5)" to Marana zone "Multi-family Medium/High Density (MR-2)". Land Use The subject property was originally platted as the residential subdivision Oldfather Townhomes, Lots 1 Thru 31, Common Areas A and B, recorded at Book 35, Page 80 on November 29, 1982. The proposed final block plat will resubdivide the existing subdivision into two lots: Lot 1 (2.88 acres) and Lot 2 (2,012 square feet). Access and Traffic Access for the blocks is provided by the adjacent Oldfather Road on the west side of the Marana Regular Council Meeting June 7, 2022 Page 6 of 74 Access for the blocks is provided by the adjacent Oldfather Road on the west side of the property and Gilbert Street on the north side of the property. Utilities Tucson Water will provide water service to the site and Pima County Regional Wastewater Reclamation Department will provide the sewer service. Tucson Electric Power and Southwest Gas will also provide their respective services to the subdivision. Staff Recommendation: Staff has reviewed the proposed final block plat against the requirements of the Marana Town Code and the Marana General Plan. The Final Block Plat is in substantial conformance with all required development regulations, and staff recommends approval. Suggested Motion: I move to adopt Resolution No. 2022-052, approving the Final Block Plat for San Luciano Townhomes Lot 1 and Lot 2 (Non-Buildable Lot). Attachments Resolution No. 2022-052 San Luciano Final Block Plat San_Luciano_Location_Map San Luciano Application Marana Regular Council Meeting June 7, 2022 Page 7 of 74 - 1 - Resolution No. 2022-052 MARANA RESOLUTION NO. 2022-052 RELATING TO DEVELOPMENT; APPROVING A FINAL BLOCK PLAT FOR SAN LUCIANO TOWNHOMES LOT 1 AND LOT 2 (NON-BUILDABLE LOT) LOCATED AT THE SOUTHEAST CORNER OF THE INTERSECTION OF OLDFATHER ROAD AND GILBERT STREET WHEREAS Pima County approved a plat entitled Oldfather Townhomes, Lots 1 Thru 31, Common Areas A and B, recorded in the Pima County Recorder’s Office at Book 35, Page 80 on November 29, 1982, which subdivided a parcel of land, including the property that is the subject of this plat (the “Property”); and WHEREAS, on April 15, 1997, the Mayor and Town Council adopted Ordinance 97.10, annexing and approving the rezoning of the Property; and WHEREAS Ordinance 97.10 rezoned the Property from Pima County zone "Multiple Residence (CR-5)" to Marana zone "Multi-family Medium/High Density (MR-2)"; and WHEREAS Kimley-Horn and Associates, representing the Property owner, has applied for approval of a final block plat for the Property entitled San Luciano Townhomes Lot 1 and Lot 2 (Non-Buildable Lot); and WHEREAS the Marana Town Council, at the regularly scheduled meeting on June 7, 2022, determined that the final block plat for San Luciano Townhomes Lot 1 and Lot 2 (Non-Buildable Lot) should be approved. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Marana, Arizona, that the final block plat for San Luciano Townhomes Lot 1 and Lot 2 (Non-Buildable Lot), located at the southeast corner of the intersection of Oldfather Road and Gilbert Street is hereby approved. Marana Regular Council Meeting June 7, 2022 Page 8 of 74 - 2 - Resolution No. 2022-052 PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 7th day of June, 2022. Mayor Ed Honea ATTEST: Cherry L. Lawson, Town Clerk APPROVED AS TO FORM: Jane Fairall, Town Attorney Marana Regular Council Meeting June 7, 2022 Page 9 of 74 SAN LUCIANO TOWNHOMESLOT 1 OF 2REF: DPP2111-002PCM2201-002SEQ #_________________SEQ #_________________AND LOT 2 (NON-BUILDABLE LOT) PRV2201-004PREPARATIONDATE:” ” ”1NORTH05/17/202205/17/2022Marana Regular Council Meeting June 7, 2022Page 10 of 74 1LLOT 1LLOT 2SAN LUCIANO TOWNHOMESLOT 1 OF 2REF: DPP2111-002PCM2201-002SEQ #_________________SEQ #_________________AND LOT 2 (NON-BUILDABLE LOT) PRV2201-004PREPARATIONDATE:2NORTH05/17/202205/17/2022Marana Regular Council Meeting June 7, 2022Page 11 of 74 7,2291,204.8 Legend 1:3,820 Location Map Notes Notes!636.6318.31 THIS MAP IS NOT TO BE USED FOR NAVIGATION© Latitude Geographics Group Ltd. 636.6 0 Feet WGS_1984_Web_Mercator_Auxiliary_Sphere This map is a user generated static output from an Internet mapping site and is for reference only. Data layers that appear on this map may or may not be accurate, current, or otherwise reliable. Town of Marana Planning Marana Town Limits Parcel Labels Parcels (Black) Marana Regular Council Meeting June 7, 2022 Page 12 of 74 Development Services /maranaplanning@maranaAZ.gov 11555 West Civic Center Drive / Marana, AZ 85653 Ph (520) 382-2600 / Fax (520) 382-2641 / maranaAZ.gov PROJECT APPLICATION APPLICATION TYPE Annexation Development Plan Development Plan Package General Plan Amendment Rezone Minor Land Division Significant Land Use Change Conditional Use Permit Specific Plan Landscape Plan Native Plant Plan/Exception SWPP Variance Hydraulic Model Sewer Capacity Assurance Sign Program Plat Improvement Plan Report (Type): ______________Other: ___________________ PROJECT INFORMATION Project Name: Description of Project:Number of Lots: Parcel No.(s):Gross Area (Acres): Project Address: Ref. Project No.: CONTACT INFORMATION Owner:Contact Name: Address:City:State:Zip: Email:Phone No.: Applicant:Contact Name: Address:City:State:Zip: Email:Phone No.: Consultant/Engineer:Contact Name: Address:City:State:Zip: Email:Phone No.: OWNER/APPLICANT AUTHORIZATION I hereby certify that the information set forth in this application are true and correct to the best of my knowledge and that I am either the owner of the property or that I have been authorized in writing by the owner to file this application. (If applicant is not the owner, attach written authorization from the owner.) Applicant Name (PRINT)Signature Date FOR OFFICIAL USE ONLY Project No.______________________Date Received____________________Revision Date 03/29/2019 San Luicano Townhomes Section 31, T12S, R13E, G&SRB&M 2 225-38-4580 TO 225-38-4870 2.93 4190 W Peel Ln LJ Townhomes, LLC Richard Dunker 5727 N 7th St, Suite 407 Phoenix AZ 85014 rdunker@cox.net (602) 757-5350 Kimley-Horn and Associates Erin Harris 333 E Wetmore Rd. Suite 280 Tucson AZ 85705 erin.harris@kimley-horn.com (520) 615-9007 Kimley-Horn and Associates Erin Harris 333 E Wetmore Rd. Suite 280 Tucson AZ 85705 erin.harris@kimley-horn.com (520) 615-9007 Erin Harris 11/15/2021 PRV2201-004 1/18/2022 Marana Regular Council Meeting June 7, 2022 Page 13 of 74 Council-Regular Meeting C2 Meeting Date:06/07/2022 To:Mayor and Council From:Steven Cheslak, Principal Planner Date:June 7, 2022 Strategic Plan Focus Area: Not Applicable Subject:Resolution No. 2022-053: Relating to Development; approving an Amended Final Plat for Tangerine/I-10 Lots 3-5 & Block 1 generally located south of Tangerine Road and a quarter-mile west of Interstate 10 (Steve Cheslak) Discussion: Request On Point Surveying, PLLC, on behalf of Tangerine I-10, LLC and CTI, Inc. is requesting the approval of an amended final plat consisting of three lots and a block on approximately 38.78 acres located within the Tangerine Commerce Park Specific Plan area. Location The commercial subdivision is located south of Tangerine Road and a quarter-mile west of Interstate 10. Zoning The zoning for the proposed plat area, Tangerine Commerce Park Specific Plan (Ordinance No. 2005.27), was approved by the Mayor and Town Council on December 20, 2005, and has the land use designation of Commerce Park that allows for a variety of commercial and light industrial uses. All development within the subdivision will be subject to development plan approval and compliance with the Town's commercial design standards. Land Use/Transportation Access to the subdivision will be provided directly from Tangerine Road, Rillito Village Marana Regular Council Meeting June 7, 2022 Page 14 of 74 Access to the subdivision will be provided directly from Tangerine Road, Rillito Village Trail, and the future Tangelo Park Place. With the adoption of the 2040 General Plan, the Tangelo Park Place road alignment has been removed from the Future Circulation Map as a future major route with the required 150' right-of-way. Because of the road classification change, Tangelo Park Place is now planned to use the Town's standard 60' street section right-of-way, terminating in a cul-de-sac, to serve lots 3, 4 and 5 of this plat. The remaining portions of the existing 150' right-of-way will be abandoned and absorbed into the adjacent lots. Block 1 (2.097 acres), located directly over the Central Arizona Project (CAP) underground pipeline, will be dedicated to the Town and will serve as a future public trail, eventually providing access to the Town's shared-use path along the Santa Cruz River and regional CAP trail system connectivity. Due to the planned abandonment of right-of-way, additional land dedicated to the Town and minor, lot reconfiguration, the three lots of the amended plat have changed in size: Lot Existing Acreage (ac) Proposed Acreage (ac) 3 7.43 ac 7.99 ac 4 7.83 ac 8.718 ac 5 19.51 ac 19.975 ac Utilities All commercial parcels in the Tangerine Commerce Park Specific Plan area are served by Marana Water (water and sewer service), Southwest Gas and Tucson Electric Power. Staff Recommendation: Staff has reviewed the request against the requirements of the Tangerine Commerce Park Specific Plan, the Marana Town Code, and the Marana General Plan. This final plat is in substantial conformance with all required development regulations and staff recommends approval of the final plat. Suggested Motion: I move to adopt Resolution No. 2022-053, approving an Amended Final Plat for Tangerine/I-10 Lots 3-5 & Block 1 generally located south of Tangerine Road and a quarter-mile west of Interstate 10. Attachments Resolution No. 2022-053 PRV2111-003 Tangerine and I-10 Amended Final Plat Application Marana Regular Council Meeting June 7, 2022 Page 15 of 74 Location Map Marana Regular Council Meeting June 7, 2022 Page 16 of 74 00081374.DOCX /1 Resolution No. 2022-053 - 1 - MARANA RESOLUTION NO. 2022-053 RELATING TO DEVELOPMENT; APPROVING AN AMENDED FINAL PLAT FOR TANGERINE/I-10 LOTS 3-5 & BLOCK 1 GENERALLY LOCATED SOUTH OF TANGERINE ROAD AND A QUARTER-MILE WEST OF INTERSTATE 10. WHEREAS, on December 20, 2005, the Mayor and Town Council adopted Ordinance No. 2005.27, approving a rezoning to create the Tangerine Commerce Park Specific Plan, which rezoned approximately 494 acres of land, including the property that is the subject of this plat; and WHEREAS, also on December 20, 2005, the Mayor and Town Council adopted Resolution No. 2005-157, approving the Tangerine Commerce Park Right-of-Way Exchange and Development Agreement; and WHEREAS, on April 6, 2021, the Mayor and Town Council adopted Resolution No. 2021-041, approving the final plat for Tangerine/I-10 Lots 1 through 10, Parcel A; and WHEREAS On Point Surveying, PLLC, on behalf of Tangerine I-10, LLC and CTI, Inc., has applied for approval of an amended final plat for Lots 3-5 & Block 1 of Tangerine/I-10 Lots 1 through 10, Parcel A, generally located south of Tangerine Road and a quarter-mile west of Interstate 10; and WHEREAS the Marana Town Council, at the regularly scheduled meeting on June 7, 2022, determined that the amended final plat for Tangerine/I-10 Lots 3 -5 & Block 1 should be approved. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Marana, Arizona that the amended final plat for Tangerine/I-10 Lots 3-5 & Block 1 is hereby approved. Marana Regular Council Meeting June 7, 2022 Page 17 of 74 00081374.DOCX /1 Resolution No. 2022-053 - 2 - PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 7th day of June, 2022. Mayor Ed Honea ATTEST: Cherry L. Lawson, Town Clerk APPROVED AS TO FORM: Jane Fairall, Town Attorney Marana Regular Council Meeting June 7, 2022 Page 18 of 74 Marana Regular Council Meeting June 7, 2022Page 19 of 74 Marana Regular Council Meeting June 7, 2022Page 20 of 74 Marana Regular Council Meeting June 7, 2022Page 21 of 74 © Latitude Geographics Group Ltd. 0.6 THIS MAP IS NOT TO BE USED FOR NAVIGATION WGS_1984_Web_Mercator_Auxiliary_Sphere Miles0.6 Notes PRV2111-003 Tangerine and I-10 Amended Final Plat Legend This map is a user generated static output from an Internet mapping site and is for reference only. Data layers that appear on this map may or may not be accurate, current, or otherwise reliable. 0.280 1:18,056 Location MapTown of Marana Planning Marana Town Limits Parcel Labels Parcels (Black) Marana Regular Council Meeting June 7, 2022 Page 22 of 74 Council-Regular Meeting C3 Meeting Date:06/07/2022 To:Mayor and Council Submitted For:Yiannis Kalaitzidis, Finance Director From:Libby Shelton, Deputy Town Attorney Date:June 7, 2022 Strategic Plan Focus Area: Community Subject:Resolution No. 2022-054: Relating to Administration; approving and authorizing the Finance and Purchasing Director to execute a Deed of Gift donating a barcode printer to Pima Community College Police Department (Yiannis Kalaitzidis) Discussion: The Crime Scene Unit of the Marana Police Department (MPD) previously used a barcode printer to track evidence connected to investigations. In 2019, MPD transitioned to using the SAFE evidence system to track evidence. As such, MPD no longer needs to use the barcode printer to track evidence. Pima Community College Police Department can use the barcode printer to more efficiently track evidence related to its investigations. Since the MPD no longer needs to use the barcode printer and Pima Community College Police Department can use it, this resolution authorizes donation of the barcode printer to Pima Community College. Financial Impact: Due to the age of the equipment (over 10 years old), the value of the equipment is negligible and immaterial. This donation will have no financial impact to the Town. Staff Recommendation: Staff recommends adoption of the resolution. Marana Regular Council Meeting June 7, 2022 Page 23 of 74 Suggested Motion: I move to adopt Resolution No. 2022-054, approving and authorizing the Finance and Purchasing Director to execute a Deed of Gift donating a barcode printer to Pima Community College Police Department. Attachments Resolution No. 2022-054 Exhibit A to Resolution Marana Regular Council Meeting June 7, 2022 Page 24 of 74 Resolution No. 2022-054 MARANA RESOLUTION NO. 2022-054 RELATING TO ADMINISTRATION; APPROVING AND AUTHORIZING THE FINANCE AND PURCHASING DIRECTOR TO EXECUTE A DEED OF GIFT DONATING A BARCODE PRINTER TO PIMA COMMUNITY COLLEGE POLICE DEPARTMENT WHEREAS the Town of Marana Police Department (MPD) has a barcode printer used to assist with tracking evidence that is no longer in use because evidence is now tracked in the SAFE system; and WHEREAS since this equipment's sole design is for evidence tracking in a law enforcement capacity, it would be prudent to transfer these assets to another law enforce- ment agency; and WHEREAS the Pima Community College Police Department has a need for the equipment; and WHEREAS the Town Council finds that the donation of the equipment to the Pima Community College Police Department is in the best interests of the Town. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, AS FOLLOWS: SECTION 1. The deed of gift attached to and incorporated by this reference in this resolution as Exhibit A is hereby approved and the Finance and Purchasing Director is hereby authorized and directed to execute it on behalf of the Town. SECTION 2. The Town’s Manager and staff are hereby directed and authorized to undertake all other and further tasks required or beneficial to carry out the terms, obliga- tions, and objectives of this resolution. PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, this 7th day of June, 2022. Mayor Ed Honea ATTEST: Cherry Lawson, Town Clerk APPROVED AS TO FORM: _________ Jane Fairall, Town Attorney Marana Regular Council Meeting June 7, 2022 Page 25 of 74 Exhibit A to Marana Resolution No. 2022-054 00081371.DOC /11 DEED OF GIFT THE TOWN OF MARANA, an Arizona municipal corporation (“Marana”), hereby donates, conveys, assigns, and transfers any rights, if any, Marana may have unto: PIMA COMMUNITY COLLEGE POLICE DEPARTMENT, a department of an Arizona community college district (“PCC PD”) and its successors and assigns, to have and hold forever, the following described personal property, goods or chattels (“Assets”): Datamax Barcode printer, M-Class, Model: DMX-M-4206, S/N: 74232127 subject to the following terms and conditions: Marana warrants that Marana owns the Assets; that Marana has the right to convey the Assets to PCC PD; and that Marana does so free and clear of all encumbrances. Marana gives no guarantee or warranty, express or implied, as to condition, usability, merchantability or fitness of the Assets for a particular purpose. PCC PD hereby acknowledges that it has examined the Assets and has agreed to accept them “as is" and "where is.” PCC PD acknowledges that the acceptance of the Assets is at its own risk and hereby agrees to make no claims against Marana based upon alleged representations, warranties (apart from the warranties expressly set out above) or collateral agreements, especially with respect to the fitness of the Assets listed above for any particular purpose or for their safe use. IN WITNESS WHEREOF the parties have executed this instrument as of the last party’s signature date below. “Marana”: THE TOWN OF MARANA, an Arizona municipal corporation Yiannis Kalaitzidis Finance and Purchasing Director _____________ Date ATTEST: Cherry Lawson, Town Clerk “PCC PD”: PIMA COMMUNITY COLLEGE POLICE DEPARTMENT, a department of an Arizona community college district By: _______________________________ Its: ________________________________ _____________ Date Marana Regular Council Meeting June 7, 2022 Page 26 of 74 Exhibit A to Marana Resolution No. 2022-054 00081371.DOC /12 STATE OF ARIZONA ) ) ss. County of ____________ ) The foregoing instrument was acknowledged before me this ____ day of ________________, 2022, by _______________________________, the ______________________________of THE PIMA COMMUNITY COLLEGE POLICE DEPARTMENT, a department of an Arizona community college district, on behalf of the Pima Community College District. (Seal) Notary Public Marana Regular Council Meeting June 7, 2022 Page 27 of 74 Council-Regular Meeting C4 Meeting Date:06/07/2022 To:Mayor and Council Submitted For:Cherry L. Lawson, Town Clerk From:Cherry L. Lawson, Town Clerk Date:June 7, 2022 Subject:Approval of the Regular Council Meeting Summary Minutes of May 17, 2022 (Cherry L. Lawson) Attachments Regular Council Meeting Summary Minutes, 05/17/2022 Marana Regular Council Meeting June 7, 2022 Page 28 of 74 Marana Regular Council Meeting Summary Minutes May 17, 2022 P a g e | 1 MARANA TOWN COUNCIL REGULAR COUNCIL MEETING 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers, May 17, 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 SUMMARY MEETING MINUTES CALL TO ORDER AND ROLL CALL Mayor Honea called the meeting to order at 6:00 PM and directed the Clerk to call the roll. Mayor Honea, Vice Mayor Post, Council Members: Jackie Craig, Patti Comerford, Roxanne Ziegler, John Officer, and Herb Kai. PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE: Led by Mayor Honea. APPROVAL OF AGENDA Council Member Ziegler moved and Council Member Kai second the motion to approve the agenda as presented. Motion passes unanimously, 7-0. CALL TO THE PUBLIC PROCLAMATIONS Marana Regular Council Meeting June 7, 2022 Page 29 of 74 Marana Regular Council Meeting Summary Minutes May 17, 2022 P a g e | 2 MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS Mayor Honea reported that he and Town Manager Terry Rozema met with Pima County Administrator Jan Lesher and Board Chairperson Sharon Bronson, District 3 and had a good meeting with both. He believes the Pima County will work well with the Town on many projects, and he is excited about the town’s future relationship with the county. MANAGER’S REPORT: SUMMARY OF CURRENT EVENTS Town Manager Terry Rozema reported on the following: • Development Service Department issued 42 single-family residential permits as of this day. Last year at this same time, 82 permits in May 2021. Total number of permits for the year as of this day is 1,224. • Concert in the Courtyard returns on May 19, 2022 at 5:30 pm with the Little House of Funk band. • Town staff has interviewed the final four architectural firms last week Friday, and selected the company that will work with the town on the Community Center and Aquatic Center project. • Parks & Recreation sponsored the Mother’s Day 5K run and had 260 runners participate. Programming has continued with the Parks & Recreation Department. • Construction work to commence on Sandario and Twin Peaks to install a roundabout in that intersection. The intersection will closed starting June 1 through August 1. • The art installation on Sandario and Marana Main is nearly complete ahead of the July schedule. Ribbon cutting and the unveiling of the art piece will be held in June. • Construction on I-10 at night from 9 p.m. and 5 a.m. near Twin Peaks has begun. • Run for the Wall bikers will be in town on Thursday, May 19 from 7 a.m. to 9 a.m. at the Circle K. Come out to support them as they prepare to ride to Washington, DC to the Vietnam Wall. • Northwest Fire District will host a ribbon cutting on Thursday, May 19 at 9 a.m. for the opening of their new administration building. Please come out to support and attend this event. PRESENTATIONS P1 Relating to Budget; presentation of third quarter results (July-March) for the Town's General Fund and other selected major funds for the 2021-2022 fiscal year (Yiannis Kalaitzidis) Marana Regular Council Meeting June 7, 2022 Page 30 of 74 Marana Regular Council Meeting Summary Minutes May 17, 2022 P a g e | 3 Finance Director Yiannis Kalaitzidis presented third quarter results (July-March) for the Town's General Fund and other selected major funds for the 2021-2022 fiscal year as follows: The results are very positive for us still through the third quarter . This particular presentation, he noted amounts that are preliminary, unaudited and are likely to be adjusted as we move forward towards the end of the fiscal year. Overall, the Town’s revenues illustrate from the summary slide that we are doing very well fronts. In some cases, as in the bed tax fund. We actually have exceeded what we anticipated to get just because the capacity is comparable for hotel rooms as it used to be pre pandemic and the hotels are able to charge more than they used. For the general fund, we are nearing 100%. As mentioned in the past, this is due to two areas 1) is our retail sales tax is coming in much better than anticipated, and 2) due to development activity that is above expectations. All the other funds are pretty much where we anticipate them. That one exception is the Water Fund it shows that it is at 61%. That is a combination of two factors. We estimated higher on our budget for the commodity revenues than what we are receiving. In addition, the next item that affects that is that a portion of that percentage is 61% is transfers that have not taken place. However, all the fronts are very well. The same holds true for our expenditures. We are pretty much where we anticipated being at this time of year. In some cases, we are lower than what we had anticipated. Some of this deals with delayed purchases and construction. The Town continues to experience delays in receiving goods, as they are not there. Sometimes the delays can take anywhere from six to nine months to receive orders that were placed, including vehicles. In the Transportation Fund, we are moving forward with the designing of many projects. As Mr. Rozema stated earlier one of our big projects, the Community and Aquatics Center is moving forward. The Town is experiencing some budget appropriation issues with morning project on Adams project in the past that came in way above what we thought we budgeted. Therefore, we are not stopping, but we are reevaluating those as we move into next budget cycle. He reviewed the Water Operating Fund again stating, we are at 61%. He pointed out that our charges for services is at 69%. Therefore, that is a little bit lower than the 75% approximately would like to see it at this time of the year. Mr. Kalaitzidis stated that the Town is trending higher than the two previous fiscal years, as the town budgeted a little more optimistically than we should have when the budget was developed. Our Airport Fund is doing as anticipated. Charges for services are at 79%. It is lower than where it was last year at this time, but that is due to two factors. One is we no longer have Marana Regular Council Meeting June 7, 2022 Page 31 of 74 Marana Regular Council Meeting Summary Minutes May 17, 2022 P a g e | 4 the commercial aircraft, that was parked at the airport for the majority of or the first half of the year actually last year. Additionally, we are no longer an entertaining any non- aeronautical activities at the airport, as part of FAA regulations. As a result, the revenues are reduced in that fund. However, it is meeting our budget expectations. We anticipated that we budgeted for that and we are we are supposed to be. Mr. Kalaitzidis stated that the interactive presentation would be available on the Town’s website under the Finance Department. CONSENT AGENDA C1 Resolution No. 2022-045: Relating to Personnel; approving and adopting amendments to the Personnel Policies and Procedures; revising Chapter 1 - General Employment Rights and Responsibilities, Section 1-2-8 "Use of Public Property," Chapter 2, Employment Process, Section 2-1-4 "Non-Competitive Process", Section 2-6-1 "Procedure", Chapter 3 - Classification and Compensation, Section 3-7-4 "On Call/Stand- By Assignments and Pay", Section 3-7-5 "Shift Differential Pay" Chapter 4 - Employment Benefits and Leaves, Section 4-8-5 "Town-Assigned Administrative Leave", Chapter 6 - Performance Management and Employee Development, Section 6-2-6 "Application and Reimbursement Procedures", Section 6-4-2 "As a Condition of Professional Growth", Chapter 7 - Safety and Health, Section 7-5-6 "Drug Testing" (Curry C. Hale) C2 Resolution No. 2022-046: Relating to Parks and Recreation; approving and authorizing the Parks and Recreation Director to execute a Facility Usage Agreement between the Town of Marana and Leman Academy of Excellence, Inc. (Jim Conroy) C3 Resolution No. 2022-047: Relating to Development; approving the final block plat for Mandarina Blocks 1-7 and Parcels A, B & C, generally located north of Tangerine Road and east of Interstate 10 within portions of Section 36, Township 11 South and Range 11 East and Section 31, Township 11 South and Range 12 East (Steve Cheslak) C4 Resolution No. 2022-048: Relating to Administration; designating Yiannis Kalaitzidis as the Chief Fiscal Officer for officially submitting the Fiscal Year 2023 Expenditure Limitation Report to the Arizona Auditor General (Libby Shelton) 5. C5 Approval of the Regular Council Meeting Summary Minutes of May 3, 2022 (Cherry L. Lawson) Council Member Kai moved and Vice Mayor Post second the motion to approve the Consent Agenda as presented. Motion passes unanimously, 7-0. LIQUOR LICENSES Marana Regular Council Meeting June 7, 2022 Page 32 of 74 Marana Regular Council Meeting Summary Minutes May 17, 2022 P a g e | 5 BOARDS, COMMISSIONS AND COMMITTEES COUNCIL ACTION A1 Resolution No. 2022-049: Relating to Real Estate; approving and authorizing the Mayor to sign the Easement Purchase and Sale Agreement in favor of Metropolitan Domestic Water Improvement District and an Electrical Right-of-Way Easement in favor of Trico Electric Cooperative, Inc. over Marana Regional Airport property (George Cardieri) Real Property Manager George Cardieri provided an overview of Resolution No. 2022- 049 approving and authorizing the Mayor to sign the Easement Purchase and Sale Agreement in favor of Metropolitan Domestic Water Improvement District and an Electrical Right-of-Way Easement in favor of Trico Electric Cooperative, Inc. over Marana Regional Airport property. Metropolitan Domestic Water Improvement District has submitted a real property application request for a new easement over Marana Regional Airport property to serve power to one of their future well sites for the Northwest Recharge Recovery and Delivery System. Metro has agreed to acquire the easement on behalf of Trico for $8,000, which is the town's estimated value based on the current market analysis. If approved, Metro will install an underground conduit through the easement area for Trico service line, and would be obligated to restore the surface area to the to the town satisfaction. The easement request has been fully evaluated by all concerned town departments and is acceptable to town staff. Council Member Kai moved and Vice Mayor Post second the motion approving Resolution No. 2022-049. Motion passes unanimously, 7-0. A2 Ordinance No. 2022.009: Relating to Finance; amending the Town of Marana Comprehensive Fee Schedule; and designating an effective date (Yiannis Kalaitzidis) Resolution No. 2022-050: Relating to Finance; declaring as a public record filed with the Town Clerk the amendments to the Town of Marana Comprehensive Fee Schedule adopted by Ordinance No. 2022.009 (Yiannis Kalaitzidis) Mr. Kalaitzidis provided an overview of Ordinance No. 2022.009 and Resolution No. 2022-050 amending the Town of Marana Comprehensive Fee Schedule and designating an effective date. As presented to Council on March 15 as part of our annual process, we review our fees and work internally to ensure that those fees are appropriate and relevant. The Town Marana Regular Council Meeting June 7, 2022 Page 33 of 74 Marana Regular Council Meeting Summary Minutes May 17, 2022 P a g e | 6 works to ensure that we streamline wherever possible to make them more usable and modernized for our customers. The Town does not expect any significant financial impact to our revenues from the changes and recommendations we are making tonight. Town staff continue to upgrade and simplify the fees, as we have reached out to our stakeholders, including Sahba for comments. In addition to posting all the required notices, both 60 and 15 days before this meeting. The Town received positive comments from Sahba, as they appreciate us providing fees that are in packages making it easier. Town staff is seeking Council’s approval for the amendments to the Comprehensive Fee Schedule. If approved and after this evening meeting, the fees will become effective on July 1. Vice Mayor Post, moved and Council Member Officer second the motion approving Ordinance No. 2022.009 and Resolution No. 2022-050 amending the Town of Marana Comprehensive Fee Schedule and designating an effective date. Motion passes unanimously, 7-0. A3 PUBLIC HEARING: Resolution No. 2022-051: Relating to Budget; adopting the fiscal year 2022-2023 tentative budget (Yiannis Kalaitzidis) [6:18 PM Minutes:] Mayor Honea opened the item to receive public testimony. Mr. Kalaitzidis provided a PowerPoint Presentation on this item. A brief overview of the presentation is provided below. (A copy of the presentation is on file in the Town Clerk’s Office for review, as well as available on the town’s website at www.maranaaz.gov for viewing of the video of the item.) • The Tentative Budget is presented on the required Auditor General Forms o Schedule A – Summary Schedule of Estimated Revenues and Expenditures/Expenses o Schedule B – Tax Levy and Tax Rate Information o Schedule C – Revenues Other Than Property Taxes o Schedule D – Other Financing Sources/<Uses> and Interfund Transfers o Schedule E – Expenditures/Expenses by Fund o Schedule F – Expenditures/Expenses by Department (as applicable) o Schedule G – Full-time Employees and Personnel Compensation • Expenditure by Category $233.5 Million o Operating, $95.0M = 41% o Debt Service, $13.2M = 5% o Capital Outlay $125.3M = 54% • Revenues - $161.7M o Sales Tax, $50.5M = 29% Marana Regular Council Meeting June 7, 2022 Page 34 of 74 Marana Regular Council Meeting Summary Minutes May 17, 2022 P a g e | 7 o Bonds/loan, 15.2M = 9% o Other, 11.7M = 7% o Charges for Services, $11.9M = 7% o Licenses, Permits and Fees, $23.7M = 14% o Intergovernmental, $60.1M = 35% • FY2023 Tentative Budget Summary o General Fund $ 73,268,176 o Special Revenue Funds 10,487,968 o Capital Projects Funds 69,992,530 o Debt Service Funds 6,405,137 o Enterprise Funds 56,594,941 o Internal Service Funds 5,289,950 Primary entity 222,038,702 o Component Units o Special Districts 11,454,435 • Total $ 233,493,137 Council Member Craig stated Ben Bernanke, the Federal Chair just recently predicted stagflation, asking whether this comment give the Town any pause in the budget. Mr. Kalaitzidis replied stating the Town do monitor news on a daily basis, as we have an ever-changing economic environment. We are thankful that our revenues have been very strong recently, but we are moving forward cautiously. However and unfortunately, this time there are many opinions and what we would like to see is more data. We would like to see more information, but we are taking all the opinions very seriously. He believes the Town would be in a good position to respond provided there are no catastrophic events. However, even then, we are still in a sound financial position. [6:29 PM Minutes:] Mayor Honea closed the public hearing to public testimony. Council Member Kai moved and Council Member Ziegler second the motion to establish the overall expenditure limitation for fiscal year 2022/2023 at $233.5M, adopting Resolution No. 2022-051. Motion passes unanimously, 7-0. ITEMS FOR DISCUSSION / POSSIBLE ACTION D1 Relating to Public Art; discussion and selection of a name for the public art piece at the roundabout located at Sandario Road and Marana Main Street (Andrea Caicedo) Assistant to the Town Manager Andrea Caicedo provided an overview of the item stating Council approved the design of a public art project that would go in the center island of the Sandario Road and Marana Main Street roundabout. The Public Art project was made possible by a grant from Pima Association of Governments, Transportation, Marana Regular Council Meeting June 7, 2022 Page 35 of 74 Marana Regular Council Meeting Summary Minutes May 17, 2022 P a g e | 8 Art by Youth Program. The Town worked closely with artist Trevor O’Toole, Marana High School Welding Program instructor, and two students to create the public art piece. Due to several factors, there were some delays to the installation of the art piece. However, as Mr. Rozema mentioned earlier, installation of the. Public art piece is now back on track and completion and is scheduled for mid-June. The art piece features a man riding a horse with saguaro and a steer nearby. Many have informally referred to this public art piece as horse and rider or cattle driver. However, given its importance as the first public art piece in the designated downtown Marina area, as artwork that is intended to capture Marana’s past and heritage, the name of the art should also represent the area in a unique and creative way. In April, town staff as well as Council submitted name ideas for the public art piece. We received over 100 submissions. The Town Manager’s office narrowed the list at to the names that best represented at the art. The following are potential names for Councils consideration. • Chasing Dreams • Cowboy Dreams • Cowboy’s Heaven • Heritage Roundup • Marana Skies • Spirit of the West • Sunset Ride • Under Marana Skies • Spirit of Marana Mayor Honea and Council Members discussed the suggested names, and came to a consensus on number 9 ‘Spirit of Marana.’ Council Member Ziegler moved and Council Member Officer second the motion to name the public art piece at the roundabout located at Sandario Road and Marana Main Street as, “Spirit of Marana.” Motion passes unanimously, 7-0. D2 Relating to Legislation and Government Actions; discussion and possible action regarding all pending state, federal, and local legislation/government actions and on recent and upcoming meetings of the other governmental bodies (Terry Rozema) Mr. Rozema reported no updates to any of the bills that the Town has been tracking, and the budget has yet to be passed. Marana Regular Council Meeting June 7, 2022 Page 36 of 74 Marana Regular Council Meeting Summary Minutes May 17, 2022 P a g e | 9 Mayor Honea reported that he believes that it will be in June, maybe early for the budget to be adopted. The biggest problem the state has since they have too much money, and they are trying to figure out what to do. 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 Mayor Honea asked for a motion to adjourn the meeting. Vice Mayor Post, moved and Council Member Officer second the motion to adjourn the meeting. Motion passes unanimously 7-0. Meeting adjourned at 6:37 PM. CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council meeting held on May 17, 2022. I further certify that a quorum was present. ________________________________________ Cherry L. Lawson, Town Clerk Marana Regular Council Meeting June 7, 2022 Page 37 of 74 Council-Regular Meeting B1 Meeting Date:06/07/2022 To:Mayor and Council Submitted For:Andrea Caicedo, Assistant to the Town Manager From:Andrea Caicedo, Assistant to the Town Manager Date:June 7, 2022 Strategic Plan Focus Area: Community Strategic Plan Focus Area Additional Info: Principle Statement 2: We will approach citizen engagement in unique and creative ways. Goal: Evaluate and continuously improve the Marana Citizens' Forum and ensure Forum recommendations are implemented wherever possible. Subject:Relating to Boards, Commissions and Committees; discussion and consideration regarding recommendations from the Spring 2022 Marana Citizens' Forum on the topic "Enhancing Outdoor Recreation and Tourism Experience" (Andrea Caicedo) Discussion: A presentation of recommendations will be made by Chelsey Pings on behalf of the Marana Citizens' Forum related to the Spring 2022 Forum topic "Enhancing Outdoor Recreation and Tourism Experience." The Forum delegates held six sessions during March - May 2022 on what improvements can be made to enhance outdoor recreation and tourism in Marana. The delegates approached this topic from several perspectives, which included identifying current gaps. In doing so, the Forum came up with the recommendations that will be presented tonight. Marana Regular Council Meeting June 7, 2022 Page 38 of 74 Staff Recommendation: Presentation only. Suggested Motion: Presentation only. Attachments No file(s) attached. Marana Regular Council Meeting June 7, 2022 Page 39 of 74 Council-Regular Meeting A1 Meeting Date:06/07/2022 To:Mayor and Council Submitted For:Curt Woody, Director of Economic Development and Tourism From:Jane Fairall, Town Attorney Date:June 7, 2022 Strategic Plan Focus Area: Commerce Strategic Plan Focus Area Additional Info: Principle Statement 2: We will seek and retain diverse industries and commerce. Initiative 2. Research, evaluate, and implement economic development tools and strategies to support business development and expansion. Subject:Resolution No. 2022-055: Relating to Economic Development; extending the Marana Job Creation Incentive Program for ten additional years (Curt Woody) Discussion: The Marana Job Creation Incentive Program (MJCIP) was created in 2010, and extended and expanded in 2012, 2017, and 2021. The MJCIP is designed to attract "Targeted Employers" to Marana. Under the MJCIP, a Targeted Employer is eligible to receive certain economic incentive reimbursements from Marana construction sales tax proceeds generated by the Targeted Employer. The economic incentives currently authorized under the MJCIP include certain employee relocation expenses, roadway beautification reimbursements, training costs, sustainable development activities, public infrastructure costs (including development impact fees for public infrastructure purposes), and other similar incentives. The MJCIP defines a Targeted Employer as any business or industry that relocates or expands into facilities that generate at least $24,000 in Marana construction sales tax and creates at least ten new Marana jobs with wages that equal or exceed $40,000. Retail businesses are generally excluded from the program, except for auto and RV dealerships. Marana Regular Council Meeting June 7, 2022 Page 40 of 74 In April 2017, the Council extended the MJCIP for 5 years, until April 2022. The proposed resolution will further extend the program for an additional 10 years, until April 2032. Staff Recommendation: Staff recommends extension of the MJCIP for an additional ten years. Suggested Motion: I move to adopt Resolution No. 2022-055, extending the Marana Job Creation Incentive Program for ten additional years. Attachments Resolution No. 2022-055 Marana Regular Council Meeting June 7, 2022 Page 41 of 74 00081202.DOCX /1 Marana Resolution No. 2022-055 - 1 - MARANA RESOLUTION NO. 2022-055 RELATING TO ECONOMIC DEVELOPMENT; EXTENDING THE MARANA JOB CREATION INCENTIVE PROGRAM FOR TEN ADDITIONAL YEARS WHEREAS A.R.S. § 9-500.11 authorizes the Town to make expenditures in support of economic development; and WHEREAS the Mayor and Council originally adopted the Marana Job Creation Incentive Program (MJCIP) on May 4, 2010 by the adoption of Resolution No. 2010-044; and WHEREAS the Mayor and Council expanded and extended the MJCIP on November 7, 2012 by the adoption of Resolution No. 2012-087; and WHEREAS the Mayor and Council further expanded and extended the MJCIP on April 4, 2017 by the adoption of Resolution No. 2017-029; and WHEREAS the Mayor and Council further expanded the MJCIP on April 20, 2021 by the adoption of Resolution No. 2021-052; and WHEREAS the MJCIP was scheduled to sunset in April 2022 in accordance with Section 1 of Resolution No. 2017-029; and WHEREAS the Mayor and Council find that extension of the Marana Job Creation Incentive Program is appropriate and prudent to address a continuing need to attract job growth and private investment in the town limits; and WHEREAS the Mayor and Council find that, as extended pursuant to this resolution, the Marana Job Creation Incentive Program will generate more direct and indirect revenue than the cost of the program. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, AS FOLLOWS: SECTION l. The Marana Job Creation Incentive Program is hereby extended retroactively from April 4, 2022 for a period of ten years through April 4, 2032. SECTION 2. Except as modified by this resolution and by Resolution No. 2017-029 and Resolution No. 2021-052, the Marana Job Creation Incentive Program adopted by Marana Resolution No. 2012-087 shall remain in full force and effect. Marana Regular Council Meeting June 7, 2022 Page 42 of 74 00081202.DOCX /1 Marana Resolution No. 2022-055 - 2 - PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, this 7th day of June 2022. Mayor Ed Honea ATTEST: Cherry L. Lawson, Town Clerk APPROVED AS TO FORM: Jane Fairall, Town Attorney Marana Regular Council Meeting June 7, 2022 Page 43 of 74 Council-Regular Meeting A2 Meeting Date:06/07/2022 To:Mayor and Council From:Yiannis Kalaitzidis, Finance Director Date:June 7, 2022 Strategic Plan Focus Area: Community Strategic Plan Focus Area Additional Info: PRINCIPLE STATEMENT 1: We will maintain a safe and well-managed community. Subject:Resolution No. 2022-056: Relating to Administration; adopting the Town of Marana Public Safety Personnel Retirement System (PSPRS) Pension Funding Policy for FY 2022-2023 (Yiannis Kalaitzidis) Discussion: Arizona Revised Statutes (A.R.S.) §38-863.01 requires that all jurisdictions that participate in the Public Safety Personnel Retirement System (PSPRS) must annually adopt and post on the governing body's website a PSPRS pension funding policy for employees who were hired before July 1, 2017 (Tier 1 & 2). It excludes the health premium subsidy/benefit and employees hired on or after July 1, 2017 (Tier 3) funds. The attached document is the annual update of the Town's PSPRS Funding Policy, compiled using the League of Arizona Cities and Towns model policy along with feedback received from Council during the first adoption of the policy on May 7, 2019. There are no significant changes from the prior year policy. The League's draft policy allows each jurisdiction to develop different options on how to maintain an appropriate funding ratio for the pension plan or, at its simplest form, allows the Town to do nothing more than memorialize our current obligations and practices. Our obligations have always stemmed from the actuarial reports prepared annually for the pension plan. Marana Regular Council Meeting June 7, 2022 Page 44 of 74 The policy includes the following elements as required by state statute: Formally accepts the employee's share of the assets and liabilities under the system based on the system's actuarial valuation report. The policy also includes funding objectives that address: How to maintain stability of the Town's contributions to the pension plan How and when the Town's funding requirement will be met Defines the Town's funded ratio target under the system and the timeline for reaching the targeted funded ratio. All amounts, the ratio and the funded ratio target and timeline for reaching the targeted funded ratio were obtained from the most recent actuarial report prepared for the pension plan as issued in December 2021. The policy will be posted on the Town's website upon approval in a public meeting. Staff Recommendation: Staff recommends adoption of Resolution No. 2022-056 adopting a pension funding policy for the PSPRS. Suggested Motion: I move to adopt Resolution No. 2022-056, adopting the Town of Marana Public Safety Personnel Retirement System (PSPRS) Pension Funding Policy for FY 2022-2023. Attachments Resolution No. 2022-056 Exhibit A to Resolution FY2023 PSPRS Policy Presentation Marana Regular Council Meeting June 7, 2022 Page 45 of 74 00081377.DOCX /1 Resolution No. 2022-056 - 1 - 5/31/2022 5:11 PM MARANA RESOLUTION NO. 2022-056 RELATING TO ADMINISTRATION; ADOPTING THE TOWN OF MARANA PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM (PSPRS) PENSION FUNDING POLICY FOR FY 2022-2023 WHEREAS A.R.S. § 38-863.01 requires each governing body of an employer with employees in the Public Safety Personnel Retirement System (PSPRS) to annually adopt a pension funding policy for the system for employees who were hired before July 1, 2017; and WHEREAS the Town has developed a pension funding policy with funding objec- tives as required by the statute; and WHEREAS the Town Council finds that it is in the best interests of the community to adopt the PSPRS funding policy. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, AS FOLLOWS: SECTION 1. The Town of Marana Public Safety Personnel Retirement System (PSPRS) Pension Funding Policy for FY 2022-2023 attached to and incorporated in this resolution as Exhibit A is hereby adopted. SECTION 2. The Town’s Manager and staff are hereby directed and authorized to undertake all other and further tasks required or beneficial to carry out the terms, ob- ligations, and objectives of the PSPRS funding policy. PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, Ari- zona, this 7th day of June, 2022. Mayor Ed Honea ATTEST: Cherry L. Lawson, Town Clerk APPROVED AS TO FORM: Jane Fairall, Town Attorney Marana Regular Council Meeting June 7, 2022 Page 46 of 74 Town of Marana Public Safety Personnel Retirement System Pension Funding Policy The intent of this policy is to clearly communicate the Council’s pension funding objectives and its commitment to our employees and the sound financial management of the Town and to comply with new statutory requirements of Laws 2018, Chapter 112. The Town’s police employees who are regularly assigned hazardous duty participate in the Public Safety Personnel Retirement System (PSPRS). Public Safety Personnel Retirement System (PSPRS) PSPRS is administered as an agent multiple-employer pension plan. An agent multiple- employer plan has two main functions: 1) to comingle assets of all plans under its administration, thus achieving economy of scale for more cost efficient investments, and invest those assets for the benefit of all members under its administration and 2) serve as the statewide uniform administrator for the distribution of benefits. Under an agent multiple-employer plan each agency participating in the plan has an individual trust fund reflecting that agencies’ assets and liabilities. Under this plan all contributions are deposited to and distributions are made from that fund’s assets, each fund has its own funded ratio and contribution rate, and each fund has a unique annual actuarial valuation. The Town of Marana has one trust fund for police employees. Council formally accepts the assets, liabilities, and current funding ratio of the Town’s PSPRS trust funds from the June 30, 2021 actuarial valuation, which are detailed below. Trust Fund Assets Accrued Liability Unfunded Actuarial Accrued Liability Funded Ratio Marana Police – Tier 1 & Tier 2 Pension $ 28,703,577 $ 45,970,934 $ 17,267,357 62.4% PSPRS Funding Goal Pensions that are less than fully funded place the cost of service provided in earlier periods (amortization of UAAL) on the current taxpayers. Fully funded pension plans are the best way to achieve taxpayer and member intergenerational equity. Most funds in PSPRS are significantly underfunded and falling well short of the goal of intergenerational equity. Exhibit A to Marana Resolution No. 2022-056 Marana Regular Council Meeting June 7, 2022 Page 47 of 74 The Council’s PSPRS funding ratio goal is 100% (fully funded) by June 30, 2036. Council established this goal for the following reasons: • The PSPRS trust funds represent only the Town of Marana’s liability. • A fully funded pension is the best way to achieve taxpayer and member intergenerational equity. Council has taken the following actions to achieve this goal: • Maintain ARC payment from operating revenues – Council is committed to maintaining the full ARC payment (normal cost and UAAL amortization) from operating funds. The estimated combined ARC for FY2022 is $2,212,390 and will be able to be paid from operating funds without diminishing Town services. • Authorize the Town Manager to propose additional measures as part of the annual budget process based on projected financial conditions and Town operational needs. Such measures may include the following: o Pre-payment of the estimated combined ARC amount at the beginning of each fiscal year, as permitted by the pension plan. o Additional payments above the ARC. Based on these actions the Council plans to achieve its goal of 100% funding by June 30, 2036, in accordance with the amortization timeline set forth by the PSPRS June 30, 2021 Actuarial Valuation. Definitions Several terms are used throughout this policy: Unfunded Actuarial Accrued Liability (UAAL) – Is the difference between trust assets and the estimated future cost of pensions earned by employees. This UAAL results from actual results (interest earnings, member mortality, disability rates, etc.) being different from the assumptions used in previous actuarial valuations. Annual Required Contribution (ARC) – Is the annual amount required to pay into the pension funds, as determined through annual actuarial valuations. It is comprised of two primary components: normal pension cost – which is the estimated cost of pension benefits earned by employees in the current year; and, amortization of UAAL – which is the cost needed to cover the unfunded portion of pensions earned by employees in previous years. The UAAL is collected over a period of time referred to as the amortization period. The ARC is a percentage of the current payroll. Funded Ratio – Is a ratio of fund assets to actuarial accrued liability. The higher the ratio the better funded the pension is with 100% being fully funded. Intergenerational equity – Ensures that no generation is burdened by substantially more or less pension costs than past or future generations. Exhibit A to Marana Resolution No. 2022-056 Marana Regular Council Meeting June 7, 2022 Page 48 of 74 PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM (PSPRS) FUNDING POLICY UPDATE Yiannis Kalaitzidis 6/1/2021 Marana Regular Council Meeting June 7, 2022 Page 49 of 74 NET UNFUNDED LIABILITY Trust Fund –FY 2021 Assets Accrued Liability Unfunded Actuarial Accrued Liability Funded Ratio Tier 1 & Tier 2 Pension $ 28,703,577 $ 45,970,934 $ 17,267,357 62.4% 2 $13,125,163 $14,801,652 $15,094,737 $16,424,786 $17,929,819 $17,267,357 2016 2017 2018 2019 2020 2021 Marana Regular Council Meeting June 7, 2022 Page 50 of 74 FY 2023 EMPLOYER CONTRIBUTION RATES* 3 FY 2022 FY 2023 FY 2023 Cost (Estimated) Normal Cost 13.07%13.43%$809,602 Amortization of Unfunded Liabilities 23.64%23.27%$1,402,788 Total Contribution 36.71%36.70%$2,212,390 Rate Change -0.01% Marana Regular Council Meeting June 7, 2022 Page 51 of 74 FUNDING OBJECTIVES Maintain Stability •Contribute 100% of ARC Define Funded Target Ratio •Actuarial report funded target ratio is at 100% How and when funding requirement will be met •Determined based on Funded ratio determination •Determined on decision to contribute additional funding over ARC •Determined based on accuracy of actuarial report assumptions 4 Marana Regular Council Meeting June 7, 2022 Page 52 of 74 STAFF RECOMMENDATION •Accept actuarial report’s funded target ratio and date (100% by 2036) •Always contribute 100% of ARC from operating revenues •Authorize Town Manager to propose additional measures as part of the annual budget process based on projected financial conditions and Town operational needs Prepayment of annual employer PSPRS contributions Additional payment above the ARC 5 Marana Regular Council Meeting June 7, 2022 Page 53 of 74 Policy Impact Prepayment of annual employer PSPRS contributions Additional payment above the ARC $6 million budgeted for FY 2023 planned to be made in July Funding will improve from 62.4% to 75.5% (Estimated) Contribution rate will improve from 36.80% to 28.01% (Estimated) Benefit will be realized for FY 2025 Contributions 6 Marana Regular Council Meeting June 7, 2022 Page 54 of 74 DISCUSSION 7 Marana Regular Council Meeting June 7, 2022 Page 55 of 74 Council-Regular Meeting D1 Meeting Date:06/07/2022 To:Mayor and Council From:Yiannis Kalaitzidis, Finance Director Date:June 7, 2022 Strategic Plan Focus Area: Commerce, Community, Heritage, Recreation, Progress & Innovation Strategic Plan Focus Area Additional Info: The ability to adjust the Town's expenditure limitation at a proper level is critical in providing essential services described in all sections of the Town's strategic plan. Subject:Resolution No. 2022-057: Relating to the Expenditure Limitation; proposing a permanent adjustment to the 1979-1980 Base Expenditure Limitation of the Town of Marana (Yiannis Kalaitzidis) Discussion: The Arizona State Constitution and Arizona Revised Statutes impose an expenditure limitation on every city and town in the state. The state-imposed limitation uses expenditures of local revenues from Fiscal Year 1979-1980 as a baseline. Each year, the Economic Estimates Commission (EEC) adjusts baseline expenditures based on a standard inflation rate and the population growth in the community to establish a new expenditure limitation (see Attachment A in the backup materials for FY 2022-2023 final estimates). Expenditures from certain revenues are specifically excluded from the state-imposed expenditure limitation. For example, revenues received from the issuance of bonds, revenues received from interest or dividends, revenue from federal grants, and intergovernmental revenue already subject to another entity’s expenditure limitation, are all exempt from the expenditure limit. If the state-imposed limitation does not allow for the expenditure of sufficient local funds (less the exemptions listed above), state law provides four options to potentially solve this problem. Marana Regular Council Meeting June 7, 2022 Page 56 of 74 • Alternative expenditure limitation (local home rule option) • A permanent base adjustment • A capital projects accumulation fund • A one-time override All the options require voter approval. If none of the options are approved by the voters, the state-imposed limitation will apply. The last two options are also considered short term, one-time solutions which makes them less viable alternatives for long-term operational stability and service delivery. The state-imposed limitation has not been adequate to support the needs of a fast-growing town such as the Town of Marana due to a number of factors. First, the state-imposed expenditure limitation, which is calculated with population and inflation factors, is based on projections for one year’s needs. In a high-growth community, this does not allow for a Town to plan infrastructure and town services to stay ahead of the growth curve (i.e., building a water treatment facility with excess capacity, instead of one year’s capacity needs). Second, the Town has changed significantly since 1979-1980, when the baseline was established and the Town’s population was at 1,425. Current citizens expect increased services and amenities that may not have been required 40 years ago. The increased expectations of the residents are not adequately factored into the population and inflation calculation performed by the State. As a result, the state-imposed limitation is based on decades old expectations, instead of those of today’s residents. In addition, in 1980, the Town did not provide certain services including water or water reclamation services to residents. Therefore, the budget in 1980 did not include any expenditures for these services that would be adjusted for population growth and inflationary increases. The budget in the water and water reclamation funds for fiscal year 2022-2023 is in excess of $50 million, and is not accounted for in the state-imposed limitation. This similar impact is true for the Town’s transportation fund and other capital project activities. Finally, the state-imposed limitation does not account for additional revenue sources received since 1979-1980. In 1980, the Town had virtually no retail activity and residents had to shop outside the Town boundaries. The Town has developed a number or retail areas, including Arizona Pavilions and the Tucson Premium Outlets that serve both residents and non-residents. The Town has also established development impact fees to pay for infrastructure for new growth. Both of these additional local revenue sources are subject to the state-imposed limitation, but are not factored into the population or inflationary calculation performed by the State. Without an alternate expenditure limitation, the Town would be unable to spend local revenues for new infrastructure and enhanced service levels. As the state-imposed expenditure limitation for the Town of Marana is insufficient to allow the Town to expend its local revenues and provide the basic services that the residents require, one of the alternative options must be selected and placed on the Marana Regular Council Meeting June 7, 2022 Page 57 of 74 ballot for voter approval. The two viable options for long term-operations and stability are the Home Rule option and Permanent Base Adjustment. The Home Rule option has been in place for the Town since 1985. Town residents are familiar with this option as they have approved Home Rule ballot measures in recent years. The current Home Rule option is valid until FY 2023-2024. The Home Rule option reduces the state reporting requirements, which staff estimates to be a savings of 200 hours of staff time per year. However, it does require approval every four years, which has inherent risks, increases election costs, and incurs significant staff time to prepare for the election every four years. A Permanent Base Adjustment modifies the expenditure limitation base from 1979-1980. The permanent adjustment allows the Town to increase the base expenditures from 1979-1980 and calculates the impact of the population and inflation factor on that new base, which results in an increase of the current and future year’s expenditure limitations. If the base is adjusted properly, voter participation could be limited to once every 20 years, or so. The Permanent Base Adjustment would not change the Town's conservative, balanced budget approach of ensuring that ongoing revenue sources adequately support ongoing program costs. An election for the Permanent Base Adjustment option would be new to Marana voters and require that we initiate an outreach and education campaign. The Permanent Base Adjustment reduces election costs, and if approved, provides stability to operations by reducing the inherent risks of voter approvals every four years for the Home Rule option. A Permanent Base Adjustment does have additional reporting requirements, but the requirements would be offset from the reduction of election costs and staff time every four years. Due to the stability provided by the Permanent Base Adjustment and a reduction of election costs and staff time, staff recommends proceeding with the Permanent Base Adjustment option for a November 2022 election. If the Permanent Base Adjustment does not pass, the Town would still be on the Home Rule option through FY 2023-2024, and could take either option to the voters again in August 2024. Staff recommends that the Town’s current base of $202,239 be adjusted to $2,000,000, a change of $1,797,761 to reflect the Town’s growth and allow the Town use the state calculated limitation in future years rather than returning to voters every 4 years for the Home Rule option. Analysis In order to develop the adjusted expenditure limitation base amount, staff analyzed the following data: 10-year history of the operating, contingency and capital budgets Projected historical 10-year growth rates for 20 years Projected expenditures limitations inflationary and population growth factors The difference between projected 20-year budget and project 20-year Marana Regular Council Meeting June 7, 2022 Page 58 of 74 state-imposed limitation In addition to the data analyzed, two additional criteria were considered in developing the base adjustment amount. The first criteria was to establish a base adjustment amount that would provide adequate expenditure limitation capacity for at least a 20-year horizon. The second criteria was to establish a base adjustment that would pass a "reasonableness" test, while providing a level of flexibility for unforeseen circumstances. Based on the criteria and data analyzed above, staff recommends a permanent base adjustment to $2,000,000, or an adjustment of $1,797,761 to the current base limit. Staff’s recommendation is projected to provide adequate capacity for the next 18-22 years before considering another Permanent Base Adjustment or Home Rule option election. Furthermore, this recommendation is projected to provide 10%-45% contingency over the first 10 years. Staff also considered a permanent base adjustment to $1,800,000. However, this analysis provided adequate capacity for approximately 15-18 years before considering another Permanent Base Adjustment or Home Rule option election. A Permanent Base Adjustment may be referred to the voters by an affirmative vote of two-thirds of the members of the Town Council. If Council approves tonight’s resolution, staff will start the process of calling an election for the proposed Permanent Base Adjustment in November 2022. Approval of the resolution and subsequent approval by the voters would provide longer-term stability for the budget and core services. If the resolution is not approved, the Town will continue with the Home Rule option and continue to seek voter approval every four years. Staff Recommendation: Staff recommends approval of Resolution No. 2022-057, proposing a permanent adjustment to the 1979-1980 Base Expenditure Limitation of the Town of Marana. Suggested Motion: I move to adopt Resolution No. 2022-057, proposing a permanent adjustment to the 1979-1980 Base Expenditure Limitation of the Town of Marana. Attachments Resolution No. 2022-057 Attachment A - FY 2022-23 final estimates Presentation Marana Regular Council Meeting June 7, 2022 Page 59 of 74 00081350.DOCX /1 1 Resolution No. 2022-057 MARANA RESOLUTION NO. 2022 -057 RELATING TO THE EXPENDITURE LIMITATION; PROPOSING A PERMANENT ADJUSTMENT TO THE 1979-1980 BASE EXPENDITURE LIMITATION OF THE TOWN OF MARANA WHEREAS the Arizona State Constitution permits the submission to the voters of a city or town a permanent adjustment to the city or town’s base expenditure limitation; and WHEREAS the Mayor and Council of the Town of Marana find that submitting a permanent base adjustment to Marana voters is in the best interests of the Town and its citizens. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, that the following permanent base adjustment be submitted to the voters of the Town of Marana: Shall the expenditure base of the Town of Marana be permanently adjusted by $1,797,761? PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, by a vote of ____ in favor and ____ opposed, this 7th day of June, 2022. Mayor Ed Honea ATTEST: Cherry L. Lawson, Town Clerk APPROVED AS TO FORM: Jane Fairall, Town Attorney Marana Regular Council Meeting June 7, 2022 Page 60 of 74 Prepared by EEC Staff, 3/25/2022 FINAL FY 2022/23 POPULATION **POPULATION INFLATION FY 1979/80 EXPENDITURE CITY 2021 1978 FACTOR FACTOR*BASE LIMIT LIMITATION APACHE JUNCTION 39,009 9,500 4.1062 3.3100 $7,081,484 $96,247,271 AVONDALE 90,755 6,900 13.1529 3.3100 $1,525,417 $66,409,925 BENSON 5,365 3,925 1.3669 3.3100 $1,317,815 $5,962,212 BISBEE 4,968 6,860 0.7242 3.3100 $1,625,337 $3,896,045 BUCKEYE 101,987 3,175 32.1219 3.3100 $5,000,000 $531,611,084 BULLHEAD CITY 42,027 13,830 3.0388 3.3100 $5,493,553 $55,256,384 CAMP VERDE 12,216 5,650 2.1621 3.3100 $2,637,112 $18,872,615 CAREFREE 3,708 1,744 2.1261 3.3100 $1,642,262 $11,557,360 CASA GRANDE 56,242 14,100 3.9888 3.3100 $18,793,221 $248,122,301 CAVE CREEK 5,021 2,025 2.4795 3.3100 $656,393 $5,387,063 CHANDLER 280,197 23,500 11.9233 3.3100 $7,245,951 $285,965,702 CHINO VALLEY 13,429 2,400 5.5954 3.3100 $255,094 $4,724,497 CLARKDALE 4,563 1,200 3.8025 3.3100 $3,255,616 $40,975,601 CLIFTON 3,909 4,515 0.8658 3.3100 $1,656,956 $4,748,340 COLORADO CITY 2,507 1,730 1.4491 3.3100 $987,191 $4,735,133 COOLIDGE 14,291 6,775 2.1094 3.3100 $1,530,413 $10,685,255 COTTONWOOD 12,185 4,200 2.9012 3.3100 $7,000,000 $67,219,800 DEWEY-HUMBOLDT 4,440 4,080 1.0882 3.3100 $1,533,271 $5,522,868 DOUGLAS 16,302 12,600 1.2938 3.3100 $17,190,988 $73,619,712 DUNCAN 692 700 0.9886 3.3100 $177,389 $580,440 EAGAR 4,474 2,450 1.8261 3.3100 $627,268 $3,791,456 EL MIRAGE 36,101 4,025 8.9692 3.3100 $4,874,680 $144,717,948 ELOY 16,485 6,300 2.6167 3.3100 $4,400,000 $38,108,689 FLAGSTAFF 76,960 32,000 2.4050 3.3100 $26,522,966 $211,134,938 FLORENCE 25,250 3,175 7.9528 3.3100 $1,165,610 $30,682,720 FOUNTAIN HILLS 23,906 10,190 2.3460 3.3100 $4,107,576 $31,896,371 FREDONIA 1,374 850 1.6165 3.3100 $329,695 $1,764,018 FINAL FY 2022/23 EXPENDITURE LIMITATIONS: CITIES & TOWNS Marana Regular Council Meeting June 7, 2022 Page 61 of 74 Prepared by EEC Staff, 3/25/2022 FINAL FY 2022/23 POPULATION **POPULATION INFLATION FY 1979/80 EXPENDITURE CITY 2021 1978 FACTOR FACTOR*BASE LIMIT LIMITATION FINAL FY 2022/23 EXPENDITURE LIMITATIONS: CITIES & TOWNS GILA BEND 1,893 1,575 1.2019 3.3100 $684,678 $2,723,826 GILBERT 273,796 4,250 64.4226 3.3100 $2,346,450 $500,348,278 GLENDALE 250,585 84,000 2.9832 3.3100 $67,955,628 $671,002,519 GLOBE 7,161 6,550 1.0933 3.3100 $2,436,186 $8,815,882 GOODYEAR 101,662 2,500 40.6648 3.3100 $4,125,000 $555,220,547 GUADALUPE 5,329 4,300 1.2393 3.3100 $549,792 $2,255,270 HAYDEN 512 1,200 0.4267 3.3100 $3,750,000 $5,295,938 HOLBROOK 4,877 5,450 0.8949 3.3100 $2,585,121 $7,657,025 HUACHUCA CITY 1,626 1,690 0.9621 3.3100 $317,153 $1,010,010 JEROME 467 395 1.1823 3.3100 $132,688 $519,247 KEARNY 1,741 2,665 0.6533 3.3100 $950,057 $2,054,349 KINGMAN 33,716 8,745 3.8555 3.3100 $9,426,488 $120,295,418 LAKE HAVASU CITY 57,974 13,000 4.4595 3.3100 $9,711,264 $143,347,001 LITCHFIELD PARK 6,957 3,835 1.8141 3.3100 $3,542,818 $21,272,984 MAMMOTH 1,079 1,960 0.5505 3.3100 $1,225,048 $2,232,243 MARANA 55,174 1,425 38.7186 3.3100 $202,239 $25,918,356 MARICOPA 61,109 3,790 16.1237 3.3100 $10,601,417 $565,786,812 MESA 510,792 130,000 3.9292 3.3100 $54,090,640 $703,470,338 MIAMI 1,539 2,615 0.5885 3.3100 $878,262 $1,710,858 NOGALES 19,921 11,740 1.6968 3.3100 $3,245,377 $18,227,669 ORO VALLEY 48,222 1,475 32.6929 3.3100 $1,400,000 $151,497,048 PAGE 7,618 4,375 1.7413 3.3100 $6,429,631 $37,057,140 PARADISE VALLEY 12,707 10,425 1.2189 3.3100 $10,185,794 $41,094,603 PARKER 3,431 2,485 1.3807 3.3100 $1,145,364 $5,234,326 PATAGONIA 807 925 0.8724 3.3100 $213,500 $616,528 PAYSON 16,502 4,305 3.8332 3.3100 $1,267,280 $16,078,997 PEORIA 195,585 10,500 18.6271 3.3100 $18,247,857 $1,125,073,900 PHOENIX 1,630,201 717,000 2.2736 3.3100 $229,200,625 $1,724,887,333 Marana Regular Council Meeting June 7, 2022 Page 62 of 74 Prepared by EEC Staff, 3/25/2022 FINAL FY 2022/23 POPULATION **POPULATION INFLATION FY 1979/80 EXPENDITURE CITY 2021 1978 FACTOR FACTOR*BASE LIMIT LIMITATION FINAL FY 2022/23 EXPENDITURE LIMITATIONS: CITIES & TOWNS PIMA 2,921 1,465 1.9939 3.3100 $1,250,000 $8,249,486 PINETOP-LAKESIDE 4,044 2,635 1.5347 3.3100 $1,214,814 $6,171,109 PRESCOTT 46,826 19,250 2.4325 3.3100 $8,495,931 $68,405,377 PRESCOTT VALLEY 47,998 1,520 31.5776 3.3100 $380,054 $39,723,527 QUARTZSITE 2,417 2,115 1.1428 3.3100 $974,825 $3,687,362 QUEEN CREEK 66,275 2,525 26.2475 3.3100 $818,277 $71,090,489 SAFFORD 10,324 6,200 1.6652 3.3100 $20,484,597 $112,903,308 SAHUARITA 35,588 1,629 21.8465 3.3100 $713,697 $51,608,270 SAINT JOHNS 3,434 4,100 0.8376 3.3100 $819,104 $2,270,798 SAN LUIS 36,081 1,690 21.3497 3.3100 $724,909 $51,226,925 SCOTTSDALE 243,528 83,000 2.9341 3.3100 $55,861,444 $542,507,696 SEDONA 9,784 7,050 1.3878 3.3100 $2,960,687 $13,600,121 SHOW LOW 11,966 3,800 3.1489 3.3100 $5,943,667 $61,950,213 SIERRA VISTA 45,851 24,050 1.9065 3.3100 $10,055,882 $63,456,605 SNOWFLAKE 6,266 3,000 2.0887 3.3100 $741,469 $5,126,076 SOMERTON 14,477 3,540 4.0895 3.3100 $681,742 $9,228,228 SOUTH TUCSON 4,603 6,275 0.7335 3.3100 $1,879,168 $4,562,636 SPRINGERVILLE 1,724 1,400 1.2314 3.3100 $3,043,401 $12,404,845 STAR VALLEY 2,526 2,255 1.1202 3.3100 $744,113 $2,758,980 SUPERIOR 2,415 4,700 0.5138 3.3100 $682,763 $1,161,214 SURPRISE 149,710 3,550 42.1718 3.3100 $9,500,000 $1,326,077,781 TAYLOR 4,065 1,740 2.3362 3.3100 $245,508 $1,898,453 TEMPE 181,548 102,000 1.7799 3.3100 $95,579,379 $563,090,807 THATCHER 5,368 3,170 1.6934 3.3100 $2,610,674 $14,632,847 TOLLESON 7,309 4,190 1.7444 3.3100 $966,494 $5,580,409 TOMBSTONE 1,313 1,600 0.8206 3.3100 $508,007 $1,379,867 TUCSON 546,061 311,400 1.7536 3.3100 $188,097,586 $1,091,763,849 Marana Regular Council Meeting June 7, 2022 Page 63 of 74 Prepared by EEC Staff, 3/25/2022 FINAL FY 2022/23 POPULATION **POPULATION INFLATION FY 1979/80 EXPENDITURE CITY 2021 1978 FACTOR FACTOR*BASE LIMIT LIMITATION FINAL FY 2022/23 EXPENDITURE LIMITATIONS: CITIES & TOWNS TUSAYAN 614 606 1.0132 3.3100 $470,573 $1,578,141 WELLTON 2,482 900 2.7578 3.3100 $460,150 $4,200,313 WICKENBURG 7,715 3,300 2.3379 3.3100 $6,600,000 $51,072,705 WILLCOX 3,229 2,985 1.0817 3.3100 $10,497,909 $37,588,020 WILLIAMS 3,384 2,100 1.6114 3.3100 $1,254,501 $6,691,215 WINKELMAN 294 1,010 0.2911 3.3100 $3,000,000 $2,890,481 WINSLOW 9,019 7,725 1.1675 3.3100 $4,995,579 $19,304,949 YOUNGTOWN 7,060 2,100 3.3619 3.3100 $1,119,748 $12,460,304 YUMA 97,953 34,500 2.8392 3.3100 $15,663,245 $147,198,479 TOTAL 5,837,518 1,896,649 3.0778 $1,035,519,511 $12,884,402,080 * SOURCE: BEA Feb 2022 - (2021 GDP Implicit Price Deflator/1978 GDP Implicit Price Deflator) = 118.49/35.798 ** FIGURES AS OF July 15 (SOURCE: Arizona Office of Economic Opportunity). Includes annexations for: Chandler, Phoenix, Thatcher and Yuma Marana Regular Council Meeting June 7, 2022 Page 64 of 74 Permanent Base Adjustment Discussion Yiannis Kalaitzidis, Finance Director 6/7/2022 Marana Regular Council Meeting June 7, 2022 Page 65 of 74 Background •Arizona Constitution and Arizona Revised Statutes impose an expenditure limitation on every City and Town in the State. •Baseline expenditures from FY 1979-80 •FY 79/80 base -$202,239 •State Economic Estimates Commission adjusts limitation each year •Standard inflation rate (3.31000) •Population growth (38.7186) •FY 22/23 expenditure Limitation $25,918,356 2 Marana Regular Council Meeting June 7, 2022 Page 66 of 74 Background •Expenditures from certain revenue sources are excluded from the expenditure limitation •Bond proceeds •Interest income •Grants •Intergovernmental revenues •CFDs & Improvement Districts 3 Marana Regular Council Meeting June 7, 2022 Page 67 of 74 Without Home Rule Fiscal Year Estimated Expenditures Projected State- Imposed Expenditure Limitation (Including Estimated Exclusions)Shortfall 2022-2023 $233.5M $75.9M $157.7M 4 Marana Regular Council Meeting June 7, 2022 Page 68 of 74 State Imposed Limitation not adequate for current service levels •Assumes the 1979/80 budget provided equivalent service levels to today •Utility Service not provided by Town in 1979/80 •Increased expectation for services above 1980 levels (Parks & Rec, Streets, etc.) •Does not account for new revenue sources •Impact fees for new growth •Increases in sales taxes and rates •Additional utility revenues •Does not account for increases in commercial activity •Growth factor covers population and average inflation •Growth of regional shopping •Growth of Tourism 5 Marana Regular Council Meeting June 7, 2022 Page 69 of 74 Impact of Growth - Examples Fiscal Year State Imposed Limit Increase from prior year General Fund Revenue increase Amount of General Fund Revenue in Excess of Limit Increase FY 2020-2021 1,316,034 6,021,123 4,705,089 FY 2019-2020 1,272,510 2,602,494 1,329,984 FY 2018-2019 1,014,961 3,732,426 2,717,465 FY 2017-2018 1,106,520 4,008,877 2,902,357 6 Marana Regular Council Meeting June 7, 2022 Page 70 of 74 Options other than the State Imposed Limitation Home Rule Permanent Base Adjustment Capital Projects acquisition One-time Override All require voter approval 7 Marana Regular Council Meeting June 7, 2022 Page 71 of 74 Comparison Home Rule option •Voters required to approve every 4 years •Sets limit at adopted budget •Reduces reporting requirements •Election costs and staff time preparing for election •Risk of not obtaining voter approval 8 Permanent Adjustment option •Fewer Elections – reduced costs •Risk of not obtaining voter approval •Increased reporting requirements for audit* •Might limit unanticipated growth* * Risk may be minimized Marana Regular Council Meeting June 7, 2022 Page 72 of 74 Base Adjustment Options – FY 2022-2023 *Population @ 55,174, GDP @ 3.3100, Population Factor @ 38.7186 9 Base Limit Amount State Imposed Limit* Current Budget FY 1979/80 Base Limit - current $202,239 $25,918,356 $233,493,137 FY 1979/80 Base Limit –scenario 1 $2,000,000 $256,317,132 $233,493,137 FY 1979/80 Base Limit –scenario 2 $1,800,000 $230,685,419 $233,493,137 Scenario 1 –Projected to last 18-22 years Scenario 2 –Projected to last 15-18 years Marana Regular Council Meeting June 7, 2022 Page 73 of 74 DISCUSSION 10 Marana Regular Council Meeting June 7, 2022 Page 74 of 74