HomeMy WebLinkAbout04/22/2003 Study Session Minutesti
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PLACE AND DATE
Marana Operations Center, Apri122, 2003
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CALL TO ORDER
I
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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.
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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.
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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 $2.8M or 61 % in the FY04 budget.
VI. ADJOURNMENT
There was no motion to adjourn. The meeting ended at approximately 7:00 p.m.
CERTIFICATION
I hereby certify that the foregoing are the true and correct minutes of the
Budget Study Session meeting held on April 22, 2003. I further certify that a
quorum was present. `a`,`O~~'~,'I,'I
.4°.0~~~,OPPORR~E i
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J elyn Bro on, Town Clerk ~$~ii Aj,,~
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