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HomeMy WebLinkAboutCouncil Executive Report 07/2022 JULY 2022 2 INTRODUCTION This issue of the Council Executive Report provides a summary of the Town’s performance during July 2022. The information is organized in sections based on the Town’s General Plan: LAND MANAGEMENT: How Marana plans to use the land and where the Town expects growth. BUILT ENVIRONMENT: Man-made structures built on the land. It is used to describe all structures, facilities and other physical infrastructure, and includes urban and rural development, telecommunications, utility networks, transportation systems, and sewer treatment and conveyance systems. PEOPLE AND COMMUNITY: Marana values its citizens, businesses and visitors and strives to create a high quality of life. This theme ensures that citizen, business and visitor needs are addressed equally and includes public safety, parks and recreation, economic vitality and community involvement. RESOURCE MANAGEMENT: Provides guidance in managing Marana’s renewable and non-renewable resources. Elements include open space and trails, cultural resources, water resources and energy. COUNCILMEMBERS Mayor Ed Honea Vice Mayor Jon Post Councilmember Patti Comerford Councilmember Jackie Craig Councilmember John Officer Councilmember Herb Kai Councilmember Roxanne Ziegler 3 TABLE OF CONTENTS LAND MANAGEMENT Development Projects 4 BUILT ENVIRONMENT Capital Improvement Projects 5 Single Family Residential Permits - By Region 6 PEOPLE AND COMMUNITY Animal Services 7 New Business Licenses 7 Marana Monthly Roundup 7 RESOURCE MANAGEMENT Water/Water Reclamation 8 TOWN OF MARANA INVESTMENT PORTFOLIO SUMMARY (ATTACHMENT) Summary for FY22 Quarter 4 -- 4 LAND MANAGEMENT COMMERCIAL BUILDING PERMIT LOCATIONS – JULY 2022 COMMERCIAL BUILDING PERMIT – MONTHLY TREND 3 2 2 1 6 2 2 2111 6 2 2 2 For full project details, visit the Current and Proposed Projects Map. 2 1 5 6 4 4 1 5 6 6 7 5 3 3 2 3 6 5 11 7 11 7 4 3 6 4 5 10 6 0 5 10 15 20 Jul 2021 Aug 2021 Sep 2021 Oct 2021 Nov 2021 Dec 2021 Jan 2022 Feb 2022 Mar 2022 Apr 2022 May 2022 Jun 2022 Jul 2022 Remodels New Buildings TOTAL PERMITS ISSUED 6 July 38 6 Calendar Year to Date Fiscal Year to Date 2022 The Town of Marana Fiscal Year runs from July 1 to June 30 7 7 1 1 6 2 2 2 5For full project details, visit the Current and Proposed Projects Map. BUILT ENVIRONMENT CAPITAL DESIGN & CONSTRUCTION REPORT The following provides an update of major construction and design projects in the Town of Marana. Visit the Current and Proposed Projects Map for a comprehensive list. DESIGN 1. North Marana Sewer Interceptor Budget: $10,300,000 Status: 10% Design Fund Source: Federal 2. Tangerine Farms Rd, Extension Budget: $21,800,000 Status: 0% Design Fund Source: Transportation Fund 3. Tortolita Preserve Improvements Budget: $230,000 Status: 60% Design Fund Source: General Fund 4. Gladden Farms Baseball Fields Budget: $550,000 Status: 90% Design Fund Source: Impact Fees 5. Shared Use Path, CalPortland Extension Budget: $3,000,000 Status: 95% Design Fund Source: Park Impact Fees 6. Tangerine Rd Widening, Phase 2 Budget: $27,000,000 Status: 5% Design Fund Source: Transportation Funds, RTA, Federal 7. El Rio Preserve Expansion Budget: $485,000 Status: 0% Design Fund Source: General Fund 8. Marana Community Center/Aquatic Facility Budget: $47,000,000 Status: 0% Design Fund Source: Sales Tax 9. Rillito Village Tr Drainage Improvements Budget: $760,000 Status: 70% Design Fund Source: Transportation Fund 10. LED Street Lighting Near Crossroads Park Budget: $300,000 Status: 80% Design Fund Source: Transportation Funds 11. El Rio Disc Golf Budget: $240,000 Status: 30% Design Fund Source: General Fund 12. Twin Peaks Rd, Rattlesnake Pass Widening Budget: $18,000,000 Status: 80% Design Fund Source: Impact Fees, Transportation Funds 13. El Rio Recreation Area Parking Lot Budget: $170,000 Status: 60% Design Fund Source: General Fund 14. Heritage Park Pole Barn Budget: $140,000 Status: 80% Design Fund Source: General Fund CONSTRUCTION 1. Airport (PAPIs/MIRLs, Beacon) Budget: $1,750,000 Status: 10% Construction Fund Source: FAA, ADOT, TOM 2. Marana Drainage Improvements Budget: $305,125 Status: 80% Construction Fund Source: General Fund 3. Twin Peaks Rd - Sandario Rd Intersection Budget: $1,100,000 Status: 99% Construction Fund Source: Transportation Funds 4. 2022 Pavement Preservation Budget: $1,285,730 Status: 80% Construction Fund Source: HURF 6 BUILT ENVIRONMENT SINGLE FAMILY RESIDENTIAL PERMITS – BY REGION 14 Northwest Marana Includes Gladden Farms, Villages at Barnett 3 South Marana Includes Saguaro Bloom, Lazy K 20 Northeast Marana Includes Dove Mountain, Preserve at Twin Peaks 38 22 38 16 52 18 52 28 79 21 29 78 27 37 21 31 25 40 113 36 49 39 20 43 28 35 24 50 34 56 38 38 16 18 52 52 28 79 21 29 78 27 37 21 31 25 40 113 36 49 39 20 43 83 35 28 24 42 1538 16 52 21 27 31 113 39 28 15 11 16 3 22 18 28 29 37 25 36 20 35 42 10 25 20 38 52 79 78 21 40 49 43 83 24 38 22 14 98 86 159 128 85 96 198 102 146 81 59 63 37 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 TOTAL PERMITS ISSUED 37 686 37 July 2022 Calendar Year to Date Fiscal Year to Date JUL 21 AUG 21 SEP 21 OCT 21 NOV 21 DEC 21 JAN 22 FEB 22 MAR 22 APR 22 MAY 22 JUN 22 JUL 22 7 PEOPLE AND COMMUNITY MARANA ANIMAL SERVICES Service Metrics – June 2022 Pet Licenses Issued 270 Stray Pets 24 Stray Pets Returned to Owner 17 Pet Adoptions 53 Licensing Revenue $6,455.00 Program Donations $176.00 NEW BUSINESS LICENSES A total of 26 business licenses were filed in July. Commercial Real Estate 1 Contractor 5 Home Arms Retail 2 Manufacturing 1 Online Sales 1 Restaurant 3 Retail 3 Service 10 MARANA MONTHLY ROUNDUP The Marana Monthly Roundup is a video series that highlights the events and projects making headlines in the Town’s Newsroom. Visit the following link to watch the June and July Monthly Roundup: https://www.youtube.com/watch?v=EQwu08fpWj8 8 RESOURCE MANAGEMENT WATER/WATER RECLAMATION New Connections – July 2022 Meter Installs 38 Sewer Cards 18 Water Customers 10,394 Sewer Customers 5,995 Water Gallons Billed 95.77 million Millions of Water Gallons Per Month PREVIOUS YEAR CURRENT YEAR 62.2 Water Usage By Type / July 2022 0 20 40 60 80 100 120 JulJunMayAprMarFebJan 58.7 68.1 77.8 110.4 97.6 95.8 67% Single Family 2%Multi-Family Government2%4%Commercial Construction9% 16%Other Turf PFM Asset Management LLC NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE | pfmam.com PFM Asset Management LLC NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE Town of Marana Investment Portfolio Summary Quarter Ending June 30, 2022 480-271-0432 Luke Schneider, CFA, Managing Director Annette Gaston, Senior Managing Consultant Town of Marana as of 6/30/22Executive Summary1,2 11.Market Value and Book Value include $30,988,955 invested with the State Local Government Investment Pools 5 & 7 as of 6/30/2022. 2.Weighted average maturity includes LGIP balances and uses book values for weighting. Accrued interest and cash balances are excluded. Account Summary Beginning Values as of 3/31/22 Ending Values as of 6/30/22 Market Value $99,988,817 $99,790,116 Book Value $100,660,084 $100,647,698 Unrealized Gain/(Loss)($671,267)($857,582) Weighted Average YTM at Market 1.03%1.79% Weighted Average YTM at Cost 0.62%0.97% U.S. Treasury 38% Federal Agency 9% Corporate 2% Commercial Paper 20% LGIP 31% Sector Distribution AA+ 70% AA 1% AA- 1% A-1 23% A-1+ 5% Credit Quality (S&P Ratings) $0 $10 $20 $30 $40 $50 $60 $70 $80 MillionsWeighted Average Maturity: 161 days Maturity Distribution Town of Marana as of 6/30/22Security Type and Issuer Compliance1,2,3 21.Investment policy dated February 2020. 2.Maturity distribution does not include accrued interest. 3.Accrual basis earnings does not include LGIP balances. Security Type Book Value % of Portfolio Permitted by Policy U.S. Treasury $38,863,278 39%100.0% Federal Agency $9,248,532 9%100.0% Corporates $2,027,356 2%40.0% Commercial Paper $19,519,576 19%50.0% AZ LGIP $30,988,955 31%100.0% Total Book Value $100,647,698 100.00% Maturity Book Value % of Portfolio Permitted by Policy 0-6 Months $78,705,194 78%No Limit 6-12 Months $4,597,477 5%No Limit 1-2 Years $12,650,028 13%No Limit 2-3 Years $2,786,350 3%No Limit 3-4 Years $1,908,650 2%No Limit 4-5 Years $0 0%No Limit Over 5 Years $0 0%0% Total Book Value $100,647,698 100.00% Accrual Basis Earnings 4/1/22 through 6/30/22 Estimated Earnings $137,092 Total Estimated Earnings $137,092 Issuer Book Value % of Portfolio Permitted by Policy FNMA $1,989,844 2.0%100% FHLB $2,464,653 2.4%100% FHLMC $4,794,034 4.8%100% U.S. Treasury $38,863,278 38.6%100% Apple Inc $522,628 0.5%5% Blackrock Inc $500,276 0.5%5% Visa $505,320 0.5%5% Wal-Mart Stores Inc $499,131 0.5%5% JP Morgan $3,897,543 3.9%5% Manhattan Asset $3,290,907 3.3%5% MUFG Bank $3,878,982 3.9%5% Ing Funding $3,881,222 3.9%5% Old Line Funding $3,287,749 3.3%5% LMA Americas $1,283,174 1.3%100% AZ LGIP $30,988,955 30.8%100% Total Book Value $100,647,698 100.00% Town of Marana as of 6/30/22Economic Update 3 Current Market Themes▸The U.S. economy is characterized by:▹High inflation▹A strong labor market▹Depressed consumer confidence▹Growing potential for economic recession▸The Federal Reserve is tightening monetary policy▹More aggressive rate hikes to battle persistent inflation▹Short-term fed funds rate projected to reach 3.75% by year end▹Start of balance sheet reduction; pace to double beginning in September▸Asset prices have fallen sharply in 2022 as a result▹The impact of higher rates on bond prices and equity valuations▹Wider credit spreads▹High commodity prices, rising labor costs, and the continuing conflict in Ukraine▹High levels of volatility and uncertainty Portfolio Strategy▸Utilize bouts of increased market volatility and wider spreads (underperformance in non-U.S. Treasury sectors) to build upon positions in spread sectors (namely corporates and asset- backed securities).▸Maintain a modestly defensive duration bias relative to benchmarks, as the Fed is expected to continue on the path to monetary policy tightening via additional rate hikes and balance sheet reductions.▸Maintain broad diversification by sector, industry, and issuer focusing on those issuers and industries benefiting most from the continued economic recovery. ▸Seek to increase allocations to credit, while remaining cautious on mortgage-backed securities. Town of Marana as of 6/30/22Treasury Yields Continue to Rise 4Source: Bloomberg, as 7/12/2022. ▸The 2-year Treasury rose 50 basis points during the second quarter. 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0% 2.2% 2.4% 2.6% 2.8% 3.0% 3.2% 3.4%Jun-20Jul-20Aug-20Sep-20Oct-20Nov-20Dec-20Jan-21Feb-21Mar-21Apr-21May-21Jun-21Jul-21Aug-21Sep-21Oct-21Nov-21Dec-21Jan-22Feb-22Mar-22Apr-22May-22Jun-222-Year Treasury Yields June 2020 –June 2022 Disclaimer Investment advisory services are provided by PFM Asset Management LLC (“PFMAM”), an investment adviser registered with the U.S. Securities and Exchange Commission and a subsidiary of U.S. Bancorp Asset Management, Inc. (“USBAM”).USBAM is a subsidiary of U.S. Bank National Association (“U.S. Bank”).U.S. Bank is a separate entity and subsidiary of U.S. Bancorp. U.S. Bank is not responsible for and does not guarantee the products, services or performance of PFMAM.The information contained is not an offer to purchase or sell any securities. Additional applicable regulatory information is available upon request. For more information regarding PFMAM’s services or entities, please visit www.pfmam.com. Disclaimer Investment advisory services are provided by PFM Asset Management LLC (“PFMAM”), an investment adviser registered with the U.S. Securities and Exchange Commission and a subsidiary of U.S. Bancorp Asset Management, Inc. (“USBAM”).USBAM is a subsidiary of U.S. Bank National Association (“U.S. Bank”).U.S. Bank is a separate entity and subsidiary of U.S. Bancorp. U.S. Bank is not responsible for and does not guarantee the products, services or performance of PFMAM.The information contained is not an offer to purchase or sell any securities. Additional applicable regulatory information is available upon request. For more information regarding PFMAM’s services or entities, please visit www.pfmam.com. 5