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HomeMy WebLinkAboutCouncil Presentation - Funding GrowthFUNDING GROWTH 3/14/2023 Questions on Growth Philosophy Aggressive Growth? •Issue debt to do projects •Less money for pay as you go projects •General Fund exposure for shortfalls •Operational issues •Difficult decisions in future 2 Controlled/Sustainable Growth? •Prioritize growth projects & areas •Some growth projects deferred •Fewer favorable developer agreements •Fewer developments •Stop being the bank for Dev. Available & Potential Sources Common •Transportation Fund •HURF •Impact Fees (DIF) •Improvement Districts •CFDs •General Fund one-time 3 Available •PAG/RTA/Developer •Protected agreements •State contributions •Federal/State grants •Forgivable loans •Increased sales taxes Challenges •Cash flow availability •Pay as you go vs. debt financing •Developer participation & D.A. amendments •Uncertain one-time revenues (Developers, RTA/PAG) •Special Districts & CFDs –more debt, higher taxes •Interfund loans (i.e. airport, water reclam. plant, etc.) 4 History •Water Reclamation Plant –Debt and interfund loans, serviced by DIF •Water Treatment plants –WIFA loan serviced by Gen. Fund •Twin Peaks Interchange –Debt paid by DIF •Tangerine Farms –Improv. District, Special Assessment •PD Facility –Increased sales tax, RICO (Pay as you go) •Tangerine Widening –State, RTA, Transportation Fund 5 Debt Payoff 6 Debt Information •Current Debt -$108,513,000 •Excludes recent WIFA loans •CFD -$21 million and rising •Debt Per Capita -$2,090 •Tucson -$417 •Oro Valley -$1,537 •Sahuarita -$1,676 7 Debt for big future projects: •Multigenerational Center •Reclamation Plant Expansion •Interchange Costs •Water Rights acquisitions •Anything over $10 million Challenges Town credit rating & funding future projects Debt load on operations and residents Asking the Questions on Growth Philosophy Aggressive Growth? •Issue debt to do projects •Less money for pay as you go projects •General Fund exposure for shortfalls •Operational issues •Difficult decisions in future 8 Controlled/Sustainable Growth? •Prioritize growth projects & areas •Some growth projects deferred •Fewer favorable developer agreements •Fewer developments •Stop being the bank for Dev. DISCUSSION 9 General Fund Available Reserves 10 $8.9 $9.3 $10.3 $11.0 $11.2 $11.8 $11.2 $13.4 $16.8 $9.7 $7.0 $7.9 $8.6 $14.6 $24.3 $42.7 $60.1 $47.4 $- $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 F/Y 2015 F/Y 2016 F/Y 2017 F/Y 2018 F/Y 2019 F/Y 2020 F/Y 2021 F/Y 2022 F/Y 2023*MILLIONSTarget Reserve Available Debt Per Capita Detail 11 12 13 14 15 16 17 18 19