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HomeMy WebLinkAbout04/22/2003 Study Session Minutesti 4 zl A Y ~i 4F~ }5 ~~,~~ ~~:J lF RF tF ~~~ y ~~ -+4 .L~ N~rr w4 ~Fhy "44 'f '~ 1 ,... .. _ ~.. ~. J,. ~. Y. ~. 1 4 ~ .y, r F. r. Y~ ~ ~. 1. ~_ ' PLACE AND DATE Marana Operations Center, Apri122, 2003 ~~ kl t Yf'i}' b ~ k ti ~. \ q ~ ~ ~ ,; ~ s t CALL TO ORDER I . The informal meeting began at 6:00 p.m. without a call to order. II. PLEDGE OF ALLEGIANCE There was no pledge of allegiance given at this meeting. III. ROLL CALL The roll was not called at the study session. The attendees are listed below: COUNCIL Bobby Sutton, Jr. Mayor Present Herb Kai Vice Mayor Present Jim Blake Council Member Present Patti Comerford Council Member Present Tim Escobedo Council Member Present - Ed Honea Council Member Present Carol McGorray Council Member Present STAFF Michael Hein Town Manager Present Michael Reuwsaat Assistant Town Manager Present Jocelyn Bronson Town Clerk Present Roy Cuaron Finance Director Present IV. APPROVAL OF AGENDA Due to the informality of the study session, there was no motion to approve the agenda. V. GENERAL ORDER OF BUSINESS A. COUNCIL ACTION 1. Overview of Fiscal Year'04 Budget Roy Cuaron began the meeting by giving a brief history of the budget process. He explained that the focus of the FY04 budget was different than in past years because there were more special revenue funds than usual. 1 -,~, ~ e ^ R ` ~r~ rvr ... ~ wth s .. _.~__ ~~ r~n .' He said that these types of revenues were restricted in their uses either by statutory regulations or by Council ordinances. Two informational handouts were distributed to the attendees and have been made a permanent part of this record. A discussion of the general fund makeup took place and several primary revenue sources comprising the income monies were listed. The categories mentioned included sales tax, state-shared revenues, urban revenue, auto lien taxes, building and development fees, fines and forfeitures, franchise fees, business licenses, and other miscellaneous incomes as well as cash reserves. Sales tax, estimated at $12.6M for the FY04 budget and representing a 9% increase over the FY03 budget, accounted for over 52% of the general fund revenues. The major industry groups within the sales tax category were retail trade and construction. State shared revenues were estimated at $2.9M, a decrease of 5.5% from the FY03 budget, and building and development fees were expected to total $2.8M, an increase of 12% from this year's budget. Court fines and forfeitures projections did not increase over the FY03 budget but this was a 31 % increase over the estimated actual. Franchise fees revenues for FY04 were projected at double the FY03 budget due to a 3% to 5% increase in the franchise fees. Other miscellaneous fees and income sources were considered to be significant and included one-time non-recurring revenues such as investment income, fire dispatch service fees, special event revenue, developer contributions, land sales, and management fees. Cash reserves, by direction of Council, can only be used for one-time, non-recurring capital expenditures and have historically been used to fund construction and acquisition of park amenities. The FY04 proposed cash reserves total $909K which is a decrease of 83k immovemenOts was $ 92K withhvehicOle cash reserves allocation for par p and equipment purchases receiving $117K. Summarizing the general fund numbers, Mr. Cuaron stated that if the proposed FY04 budget was adopted as presented, the total revenues would increase by $4.6M, an increase of 6.33% over the FY03 budget. He said that general fund xevenues were up nearly $5.1M over FY03, an increase of 27%, however, $4.1M of the increase was due to one-time non- recurring revenues. 2 :'<'r `~' ,_ ., , ,~. The study session continued with the Finance Director explaining the projected figures for special revenues, transportation funds, grants, and enterprise and bond funds revenues. Council Member Honea had several questions regarding the $21.2M estimadt {hat focused on the increase in complex. A lengthy discussion followe costs from the original estimated budget of $14M. Some of the points discussed included the additional amenities, square footage, and surrounding infrastructure comprising the Town Center that had been added since the complex's inception in 1999. Town staff was directed to provide a detailed cost estimate for the municipal complex at the next budget study session. Mr. Cuaron concluded this portion of the study session by stating that the FY04 revenue projections reflected the staff's cautious optimism while taking into account historical trends and new developments. He said that the revenue forecast was realistic an nhnue efficientband of ectivexservice to provide sufficient resources to co delivery. The fixed expenses category was discussed next. Mr. Cuaron briefly synopsized the various expenditures and pointed out that there were general increases throughout this category. He said that the total fixed expenses were expected to increase by $2.8M or 61 % in the FY04 budget. VI. ADJOURNMENT There was no motion to adjourn. The meeting ended at approximately 7:00 p.m. CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the Budget Study Session meeting held on April 22, 2003. I further certify that a quorum was present. `a`,`O~~'~,'I,'I .4°.0~~~,OPPORR~E i e 1-- ~ o00 ~ J elyn Bro on, Town Clerk ~$~ii Aj,,~ ''~,~~%t 111~~ ~```` 3