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TABLE OF CONTENTS Budget Award ...........................................................................................................................................................1 Manager’s Le er (published with approved budget ................................................................................................3 Elected Officials ........................................................................................................................................................6 Strategic Plan Focus Areas........................................................................................................................................7 Organiza onal Chart...............................................................................................................................................10 Budget Summary ....................................................................................................................................................11 Where Does the Money Come From: Major Revenue Sources ..............................................................................25 Fund Budge ng ......................................................................................................................................................41 Department Summaries and Performance Measures ............................................................................................59 Mayor and Council ..........................................................................................................................................65 Town Manager ................................................................................................................................................69 Economic Development ..................................................................................................................................73 Department of Law .........................................................................................................................................77 Town Clerk.......................................................................................................................................................81 Finance ............................................................................................................................................................85 Human Resources............................................................................................................................................89 Planning and Building ......................................................................................................................................93 Parks and Recrea on.......................................................................................................................................97 Public Works..................................................................................................................................................101 Police .............................................................................................................................................................105 Municipal Court .............................................................................................................................................109 Streets ...........................................................................................................................................................113 Wastewater ...................................................................................................................................................117 Non-Departmental ........................................................................................................................................121 Department History of Opera ng Expenditures ...........................................................................................123 Staffing Levels................................................................................................................................................129 General Planning Five-Year Plan ................................................................................................................................................133 Capital Improvement Plan .............................................................................................................................151 Debt ...............................................................................................................................................................185 Suppor ng Informa on The Budgetary Process ..................................................................................................................................191 Budget/CIP Calendar .....................................................................................................................................195 Financial and Budgetary Policies ...................................................................................................................197 Legal Requirements .......................................................................................................................................205 Official Budget Forms ....................................................................................................................................207

Supplemental Informa on Demographics and History ............................................................................................................................215 Glossary .........................................................................................................................................................219 Acronyms.......................................................................................................................................................223

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The Government Finance Officers Associa on of the United States and Canada (GFOA) presented a Dis nguished Budget Presentaon Award to the Town of Sahuarita, Arizona for its annual budget for the fiscal year beginning July 1, 2017. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an opera ons guide, and as a communica ons device. This award is valid for a period of one year only. We believe our current budget con nues to conform to program requirements,

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MANAGER’S BU U

A close look at budget priori es for the new fiscal year is upon us once again. Our annual budget represents the plan that allocates financial resources, entrusted to us by our residents, to accomplish important ini a ves, services and projects for our community. We plan accordingly, then, for our community’s future in ways that have the greatest poten al to support and expand exis ng public infrastructure, enhance quality of life and encourage economic growth. As another year passes we can once again say that we are on firm financial ground, because the choices we make are guided by concern for increasing our organiza onal effec veness and posi oning our town for con nued success in all endeavors. Economic Development In fiscal year 2018, we saw a number of economic development goals reached. Most notably, the town was successful in receiving a $3 million grant from the Economic Development Administra on, which when combined with a grant from Freeport McMoRan Community Founda on for $360,000—and a contribu on from the Town’s general fund for $1.5 million—will finance the construc on of a 32,000 sq. . facility we are calling the “Sahuarita Advanced Manufacturing and Technology Center (SAMTEC).” In 2019, we will see the design of the facility completed and construc on of the facility in 2020. This facility will mark the beginning of a Technology Park that will con nue to bring addi onal technology-related business into the Town along with highpaying and highly-sought-a er jobs. This past year also saw a new shopping center under construc on. The Crossing Shopping Center will bring in over 130,000 sq. . of commercial and retail space to include Sprouts, TJ Maxx, PetSmart, Beall’s, ModPizza, and other shopping choices for our community. In total over 350 new jobs will be created from this economic development project. Other notable addi ons to our community include a Circle K gas staon, Fry’s gas sta on and Panda Express restaurant. Another important goal of our developing community is the expansion of our southern boundaries to welcome La Posada into the Town of Sahuarita. This strategic annexa on not only brings a very important and well-managed elderly care service into the Town, but gives the Town a more prominent presence along our southern boundary.

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UDGET LETTER

We con nue to place a high priority as defined within the town’s Strategic Management Plan on Economic growth as is evident in all the construc on we see around town right now. We expect to see 300 new homes built in Sahuarita this coming year, increasing the inventory of homes available on the market. We haven’t seen this sort of up ck in home construc on for many years. This kind of construc on and investment in our community by developers is a testament to the bright and vibrant future the Town of Sahuarita will enjoy. Organiza onal Effec veness

Fiscal year 2018, saw the town’s departure from our contracted services with Pima Animal Care Center (PACC) in favor of partnering with the Humane Society of Southern Arizona (HSSA), and offering our own in-house services to residents. Based upon comments from our community and other feedback, we believe this change has resulted in be er, more efficient and streamlined service to our community. It is cri cal that town services be available to our residents where they need them and when they need them. Since June 2017, we’ve licensed 1,133 dogs and held two shot clinics, and offered free rabies shots to pets who needed them. In fiscal year 2019, we will con nue our support of this program to ensure that our services con nue to be rated highly. Community safety is essen al to our residents, and having an effec ve, well-trained police force is paramount in that ongoing endeavor. This year, our police department will welcome two new officers into its ranks. This addi on of resources to the department is made possible by federal funding from the COPS grant. The COPS grant will pay $250,000 of these officers’ payroll costs over three years. One of the ways that we can be most helpful and effec ve in our service to the public, is by providing mely and up-to-date informa on. For this reason, our communica ons team has completed a website overhaul and will soon release a mobile app for interac ng with the site. Every effort has been made to make the site more user friendly, intui ve, and easy to navigate. The informa on that users request the most is front and center; we’ve added a spotlight sec on for town events and important news; and moving forward, we plan to take advantage of our video spotlight sec on to highlight special events and create engaging content to keep residents informed. Sahuarita Works Our Public Works Department is one of the largest contributors to ensuring that Sahuarita remains a safe, clean and great place to live. It’s really difficult to summarize the major impact that this department has on the daily opera on of our town. One of the main priori es for Public Works is overseeing the maintenance and expansion of town infrastructure such as sewers and roads. The Town Council has given direc on to staff to give priority to maintenance of the town’s road infrastructure through strategic pavement preserva on ini a ves. This means that while you will see con nued construc on all over town, you will also witness many miles of road maintenance projects.

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MANAGER’S BUDGET LETTER

There are many more aspects to the budget than discussed here. I invite you to take a look at the approved budget document for more detail, and offer any feedback or ideas that you have to us. As we look ahead to fiscal year 2019 and look back at this financially successful year, we also want to celebrate the spirit of community that makes for such great collabora ve efforts in our town. We move ahead confident that we are ready for the challenges that tomorrow will bring and ready to make the most of the beau ful connec ons that abound, right here, right now.

Sincerely,

L. Kelly Udall, Town Manager

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MAYOR AND COUNCIL

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HOW DID THIS BUDGE E

ECONOMIC CO O C DEVELOPMENT NT

INFRASTRUCTURE RE

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PLANNING G COMMUNITY Y


ET COME TOGETHER?

FOR O OU OUR UR U Y’S FUTURE RE

O G ORGANIZATIONAL O AL EFFECTIVENESS SS

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QUALITY U Y OF LIFE FE


BUDGET SUMMARY - STRATEGIC PLAN - GOALS

Budget Decisions Guided by Strategic Planning

T

he Town of Sahuarita has made the conscien ous decision to use its Strategic Plan as a blueprint for fiscally responsible spending of your tax dollars. This ideal has kept the Town on firm financial foo ng and has ensured that planning for our community’s future takes precedent at every level of local governance and leadership. Directors and management staff are required to jus fy all expenditures under one of the following focus areas of the Strategic Plan.

Con nue to grow the Town’s economic base, bringing in jobs associated with retail, light manufacturing and quality commercial enterprises

Provide and maintain high-quality and cost-effec ve infrastructure

Promote planned growth that fosters high-quality and diverse development, facilitates sustainable infrastructure and assures quality services

Foster an organiza onal culture that embraces change, crea vity, innova on and calculated risk to ensure proac ve, consistent, efficient and accountable service to our community

Maintain a high quality of life that makes Sahuarita a community of choice for residents and business investment; encourage a unified community iden ty

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BUDGET SUMMARY - ORGANIZATIONAL CHART

Who Makes Decisions About the Town’s Budget?

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own residents elect the Sahuarita Town Council who hires and directs the town manager and town a orney. By extension, the council gives direc ves to staff through the town manager. Town Council mee ngs are open to the public and held biweekly when council is in session. At these mee ngs, town staff gives regular updates about projects and Council gives direcves to staff about how best to serve the needs of Sahuarita Residents. Town services include things like police, maintenance of roads, infrastructure and public parks.

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BUDGET S

Available Resources

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he 2019 budget uses available resources to achieve desired results. The budget totals $58,873,920 and is in balance, which means that total funding sources equal or exceed total budgeted expenditures. Budgeted expenditures total $40,942,360 and ending balances total $17,931,560. The budget is adopted for each of the Town’s seven funds as follows.

$17,500,000 $15,000,000 $12,500,000 $10,000,000 $7,500,000 $5,000,000 $2,500,000 $0 ($2,500,000)

General

HURF

Expenditures

GARS

QC CFD

RS CFD

CIIF

Wastewater

$16,534,340

Ending Balances

$16,958,980

$3,387,480

$991,420

$1,008,320

$4,457,130

$9,738,320

$4,825,350

$144,730

$113,910

$-

$-

$825,000

$(111,060)

The ending balance deďŹ cit in the Wastewater Fund is covered by the surpluses in the General and CIIF funds. See the Fund Budge ng sec on for more discussion.

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SUMMARY

Funding Sources

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he budget is funded from a combina on of revenues, debt proceeds, and beginning fund balances. Revenues come from recurring sources, such as taxes, and capital grants for one- me projects. In 2019 these sources provide $33.6 million, or 57%, of the total for the budget. Beginning fund balances, which represent available resources accumulated from prior years, provide $24.7 million, or 42%, of the total funding sources for the budget. The remaining $570,000, or 1% of the total budget, will be funded by capital leases.

Revenues are classiďŹ ed by source. Tax revenues are derived from the 2% transac on privilege tax, property taxes for the community facili es districts, the 4% construc on contrac ng tax, and franchise fees. Licenses and permits are collected from building permit and sewer connec on fees. Intergovernmental revenues are derived from state shared revenues and grants awarded from federal, state, and local governments. Charges for services are earned through sewer user fees, development review fees, recrea on program charges, and cost alloca on recovery. Other revenues are generated from ďŹ nes, forfeitures, investment earnings, developer contribu ons, and other miscellaneous items not classiďŹ ed elsewhere. Refer to the Major Revenue Sources sec on of this document for more informa on on revenues.

Where the Money Comes From Funding Sources: $58,873,920

Beginning Balances $24,694,340 42% Other $2,058,250 4% Capital Leases $570,000 1%

Governmental $14,853,560 25% Taxes $10,145,260 17%

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Licenses & Permits $1,940,770 3% Charges for Services $4,611,740 8%


BUDGET S

Expenditure and Use Classifications

E

xpenditures and other uses are classiďŹ ed by type. Approximately $17.9 million, or 31%, of the budgeted sources are not expected to be spent during the year and, therefore, will be the fund balances at the end of the year. Any fund balance that is not restricted may be used at the discre on of Town Council for emergencies, unforeseen events or opportuni es. Opera ons account for $23.8 million, or 40%, of the budget. Opera ons include current costs associated with the dayto-day ac vi es of the Town. These costs include payroll, contracted services, supplies, opera ng capital and other as provided on the next page. Capital outlay comprises $11.2 million, or 19%, of the budget. This appropria on will be used to build and/or purchase capital assets that are not considered to be part of the opera ng budget. The Capital Improvement Plan provides detailed descrip ons and budget plans for the Town’s capital projects and acquisi ons for the next ďŹ ve years. Debt service cons tutes $6.0 million, or 10%, of the budget and accounts for the semi-annual debt payments (principal and interest) and capital lease payments. This category also includes debt issuance costs and charges associated with maintaining required trust accounts.

Where the Money Goes Funding Uses: $58,873,920

Operations $23,786,130 40%

Ending Balances $17,931,560 31%

Debt Service $5,954,160 10% Capital Outlay $11,202,070 19%

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SUMMARY

Operational Expenditures by Category

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here are ďŹ ve categories of opera onal expenditures: (1) personnel, (2) services, (3) supplies, (4) other, and (5) opera ng capital.

The personnel category accounts for the largest component of opera ons. Costs in this category are those associated with maintaining a workforce and include salaries and wages, health and dental insurance, payroll taxes, pension plan contribu ons, worker’s compensa on, unemployment insurance, and uniform allowances. The services category, which accounts for outsourced services and other contractual obliga ons. This is the second largest category of opera ons. Services include u lity costs and professional services such as those performed by a orneys, auditors, ďŹ nancial advisors, and engineers. These services also include intergovernmental agreements with State and Pima County for services provided for tax collec ons, animal control, 911 dispatch, and incarcera on. The supplies category included items such as fuel, postage, police armory and range supplies, res, recrea on supplies, street signs and barricades, wastewater chemicals, and small equipment purchases. The other category accounts for items that are not accounted for in the other categories and includes travel and training, memberships, subscrip ons, insurance premiums, sponsorships, contribu ons to organiza ons to provide services to others, and internal costs alloca ons. Opera ng capital represents vehicle and equipment purchases, facility repairs and maintenance improvements, and capital-related studies with unit costs of $5,000 or more. These projects are smaller in scope, size, and cost of other capital projects but are o en necessary for departments to accomplish their opera onal objec ves.

Where the Money Goes Operations (by Category): $23,786,130

Capital $1,126,890 5%

Personnel $14,099,480 59%

Other $1,733,140 7% Supplies $1,083,580 5%

Services $5,743,040 24%

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BUDGET SUMMARY—OPERATIONS

Where Does the Money Go?

O

pera ons and capital outlay expenditures may also be classified by func onal area. See the Capital Plan sec on for more details on capital outlay. Where the Money Goes Operations (by Function): $23,786,130

Where the Money Goes Capital Outlay (by Function): $11,202,070

General Government $7,135,970 30%

Highways & Streets $6,177,110 55%

Sewer $2,078,640 9%

Recreation $338,000 3% Sewer $315,340 3%

Recreation $2,145,490 9%

Highways & Streets $3,418,950 14%

Public Safety $9,007,080 38% Public Safety $0 0%

General Government $4,371,620 39%

The general government func on accounts for the Mayor & Council, Town Manager, Economic Development, Town Clerk, Law, Finance, Human Resources, and Municipal Court departments, as well as the Planning & Zoning and Facili es divisions of the Planning & Building and Public Works departments, respec vely. A large por on of the Town’s workforce is accounted for in this func on, which explains its significant opera onal costs. Capital outlay includes the SAMTEC economic development project as well as indirect cost alloca ons made to the capital projects fund. The public safety func on includes the Police Department as well as the Planning & Building-Building Safety and Public Works – Engineering divisions. This func on is the costliest with respect to the Town’s opera ons mainly because its workforce is the largest. No major capital projects are planned for the year. The highways and streets func on accounts for opera onal costs of the Streets Department. This department focuses on the maintenance of the Town’s roadway system as well as other transporta ons issues, such as traffic signaling and street ligh ng. This func on has a capital outlay budget for major roadway improvement and traffic safety projects as well as allocated payroll. The recrea on func on accounts for the Parks & Recrea on Department. This department maintains all park and park facili es in the Town. The department also provides for recrea onal programming and various special events throughout the year. The capital budget includes monster ne ng, and facility improvements and repairs. The sewer func on accounts for the ac vi es of the wastewater u lity, including opera ng the treatment plant and customer support for the monthly billing and collec ons process. The capital budget includes the facility improvement, rehabilita on to the conveyance system, allocated payroll and indirect costs.

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BUDGET SUMMARY—DEBT SERVICE

Debt Service

D

ebt was used in the past to finance the acquisi on of assets and infrastructure. The debt service obliga on for each fund follows. Refer to the Debt sec on of this document for more informa on on debt repayment.

Where the Money Goes Debt Service: $5,954,160

CIIF Loans/Leases $2,186,780 37%

QCCFD Bonds $953,980 16%

WW Loans/Leases $2,431,370 41%

RSCFD Bonds $382,030 6%

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BUDGET SUMMARY—STAFFING

Staff Levels by Function

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mployees play the most significant part in providing services to our residents. The Town accounts for employees by funcon as shown on the chart below.

Staffing Levels by Function Full-Time Equivalent Employees (FTE): 147.4

Sewer 8.5 6%

General Gov't 40.0 27%

Recreation 17.4 12%

Public Safety 71.0 48% Highways & Streets 10.5 7%

Staff Changes Since Last Fiscal Year The following are posi on and staffing level changes made since last year’s budget was adopted. See the Employee Staffing sec on for more informa on.

Department Human Resources Parks & Recreation Police Planning & Building Public Works

Description HR Technician Recreation/event staff; increased hours & seasonal employees Police Officer (x2) & Sr. Office Assistant Building Inspector Construction Inspector & Sr. Office Assistant (PT to FT) Total FTE Changes

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FTE Change +1.0 +1.1 +3.0 +1.0 +1.5 +7.6


BUDGET SUMMARY—EXPENDITURES COMPARISON

Evaluation of Changes in Expenditures

E

Budgeted personnel costs are increasing $448,000. Of this amount, $513,600 relates to the net FTE addi ons, as iden fied on the previous page, and other reclassifica ons. $243,200 is associated with employee merits and associated cost increases to other benefits. $185,900 relates to an increase in health care insurance premiums and insurance elecons by staff. Cost reduc ons include $34,800 in contribu ons to re rement systems and $112,200 in payroll alloca ons to capital. The remaining net reduc on of approximately $348 thousand is mostly related to re rements and turnover of higher-paid employees with lower-paid employees. Costs for services are increasing $545,070. Of this amount, $655,000 is for pavement management, $111,800 for park facility and grounds repair and maintenance, $81,500 for right-of-way and traffic signal repairs and maintenance, $71,400 outsourced engineering and development services, $73,700 for intergovernmental services from the State and County for tax administra on, 911 dispatch, and elec ons. Decreases include $265,000 for street maintenance, $76,600 for management consul ng and professional services, $37,500 for wastewater collec on services, and $25,000 for grant-funded art program costs.

Millions

valua ng the changes between the budgeted expenditures for fiscal years 2018 and 2019 provides a be er understanding of how workforce, opera onal costs, community growth, and the economy as a whole can impact the budget from one year to the next. Major changes by expenditure category are explained below. Other cost changes are addressed in the Departmental sec on.

$16 $14 $12

$10 $8 $6 $4 $2 $0 FY 2019 FY 2018 % Change

Personnel $14,099,480 $13,651,480 3.3%

The supplies budget is decreasing by $121,730. There is an $111,000 decrease in grant-funded police equipment and $19,000 for fuel and res. An addi onal $14,000 has been budgeted for new street banners with logos as part of the Town branding effort. Other expenditures are going up by $7,760. Increases include $31,500 for marke ng and GV/Sahuarita Chamber of Commerce efforts, $12,000 in support of Veterans Court, and $30,400 net indirect cost alloca ons. These increases were mostly offset by decreases, including a $50,000 reduc on in wastewater bad debt es mates and $25,000 for centralized claims paid. The operating capital budget is increasing by $133,790. The Police Department budget in 2019 includes $127,000 more for facility improvements and grant-funded vehicles, which is the primary reason for the increase. See the Capital Improvement Plan section for more information. Debt service is increasing by $334,020. More replacement vehicles are being acquired and financed through capital leases, which accounts for $183 thousand of the increase to debt service. Another, $297 thousand and $390 thousand in the QC CFD and CIIF, respec vely, are increasing in accordance with approved debt payment schedules that accelerated debt refunding savings in prior years. These increases are offset with a $560 thousand decrease in debt issuance costs in the Rancho Sahuarita CFD; apart from the leases, no new debt issuances are planned for 2019. See the Debt sec on for informa on.

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Millions

BUDGET SUMMARY—EXPENDITURES COMPARISON $7 $6

$5 $4 $3 $2 $1

$0

Millions

FY 2019 FY 2018 % Change

Services

Supplies

Other

Operating Capital

Debt Service

$5,743,040 $5,197,970 10.5%

$1,083,580 $1,205,310 -10.1%

$1,733,140 $1,725,380 0.4%

$1,126,890 $993,100 13.5%

$5,954,160 $5,620,140 5.9%

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Capital outlay is decreasing by $5.75 million across the follow-

$16

ing func onal areas: $397 thousand in general government, $2.15 million in streets, $2.25 million in parks and recrea on, and $956 thousand in wastewater/sewer. The Town and the community facili es districts are not obtaining a signiďŹ cant amount of new debt in 2019. Absent this, there will not be as much funding available for capital projects as there was last year. See the Capital Improvement Plan sec on for informa on related to Town projects.

$14 $12 $10

$8 $6 $4

$2 $0 FY 2019 FY 2018 % Change

Capital Outlay $11,202,070 $16,954,100 -33.9%

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BUDGET SUMMARY—SUMMARY SCHEDULES Changes in Fund Balance Aggregate of Appropriated Funds Adopted Budget

2018 Amended Budget

Estimated Actual

2019 Budget Amount

$ 7,733,916 1,556,466 12,287,093 4,041,335 220,717 377,038 543,673 26,760,238

$ 8,505,630 1,886,830 15,186,200 4,303,880 278,620 263,220 1,051,140 31,475,520

$ 8,505,630 1,886,830 15,209,480 4,303,880 278,620 263,220 1,051,140 31,498,800

$ 9,041,510 1,858,860 11,247,150 4,253,730 199,760 521,220 411,600 27,533,830

$10,145,260 1,940,770 14,853,560 4,611,740 227,540 607,760 1,168,950 33,555,580

Expenditures: Operations: General Government Public Safety Highways & Streets Recreation Sewer Operations Total

5,248,825 8,032,783 1,952,810 1,657,399 1,764,720 18,656,537

6,241,400 9,380,880 2,975,190 1,939,660 2,175,110 22,712,240

6,241,400 9,404,160 2,975,190 1,939,660 2,175,110 22,735,520

5,947,530 8,746,180 2,852,480 1,837,490 2,025,810 21,409,490

7,135,970 9,007,080 3,418,950 2,145,490 2,078,640 23,786,130

Debt Service Capital Outlay Expenditures Total

14,750,654 4,458,266 37,865,457

5,620,140 17,015,100 45,347,480

5,620,140 17,015,100 45,370,760

5,072,580 5,609,360 32,091,430

5,954,160 11,202,070 40,942,360

Revenues Over (Under) Expenditures

(11,105,219)

(13,871,960)

(13,871,960)

(4,557,600)

(7,386,780)

Other Funding Sources/(Uses): Proceeds on Sale of Assets Capital Leases Net Debt Proceeds Net Other Funding Sources/(Uses) Change in Fund Balance Beginning Fund Balance Ending Fund Balance

69,723 548,858 9,997,694 10,616,275 (488,944) 23,400,595 $ 22,911,651

270,000 7,320,000 7,590,000 (6,281,960) 22,218,400 $ 15,936,440

270,000 7,320,000 7,590,000 (6,281,960) 22,218,400 $ 15,936,440

40,300 520,000 5,780,000 6,340,300 1,782,700 22,911,640 $ 24,694,340

54,000 570,000 624,000 (6,762,780) 24,694,340 $ 17,931,560

Revenues: Taxes Licenses & Permits Intergovernmental Charges for Services Fines & Forfeits Investment Earnings Miscellaneous Revenues Total

2017 Actual Amount

The 2018 es mated actuals are based on eight months of actual figures, July through February, and four months of es mated figures, March through June.

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BUDGET SUMMARY—S S Changes in Fund Balances Appropriated Funds Fiscal Year 2019 General Fund Revenues: Taxes Licenses & Permits Intergovernmental Charges for Services Fines & Forfeits Investment Earnings (Losses) Miscellaneous Revenues Total

$

6,491,810 1,537,270 7,781,140 927,080 193,540 316,270 58,850 17,305,960

HURF Fund $

GARS Fund

QC CFD Fund

- $ 2,377,880 5,760 2,383,640

- $ 599,700 15,000 34,000 1,690 30,000 680,390

RS CFD Fund

582,290 $ 50 425,980 1,008,320

CIIF Fund

57,620 $ 3,013,540 $ 4,094,840 20,130 37,460 344,320 249,800 422,070 7,395,640

Wastewater Fund

Total

- $10,145,260 403,500 1,940,770 - 14,853,560 3,669,660 4,611,740 227,540 226,400 607,760 60,000 1,168,950 4,359,560 33,555,580

Expenditures: Operations: General Government Public Safety Highways & Streets Recreation Sewer Operations Total

6,731,370 7,746,370 2,056,600 16,534,340

3,387,480 3,387,480

8,000 960,710 22,710 991,420

800 12,360 41,180 54,340

800 19,110 19,910

395,000 300,000 25,000 720,000

2,078,640 2,078,640

7,135,970 9,007,080 3,418,950 2,145,490 2,078,640 23,786,130

Debt Service Capital Outlay Expenditures Total

16,534,340

3,387,480

991,420

953,980 1,008,320

382,030 4,055,190 4,457,130

2,186,780 6,831,540 9,738,320

2,431,370 315,340 4,825,350

5,954,160 11,202,070 40,942,360

771,620

(1,003,840)

(311,030)

-

(4,035,060)

(2,342,680)

(465,790)

(7,386,780)

Other Funding Sources (Uses) Proceeds on Sale of Assets Capital Leases Net Transfers In (Out)

(3,725,250)

436,620

-

-

-

54,000 570,000 (1,396,450)

4,685,080

54,000 570,000 -

Change in Fund Balance

(2,953,630)

(567,220)

(311,030)

-

(4,035,060)

(3,115,130)

4,219,290

(6,762,780)

Fund Balance, 7/1/2018

19,912,610

711,950

424,940

-

4,035,060

3,940,130

(4,330,350)

24,694,340

16,958,980 $

144,730 $

113,910 $

- $

Revenues Over (Under) Expenditures

Fund Balance, 6/30/2019

$

- $

825,000 $

(111,060) $ 17,931,560

Beginning fund balances represent available resources accumulated from prior years. Ending fund balances represent resources available for future years and con ngencies. For the Wastewater (Enterprise) Fund, fund balance is essen ally equivalent to current and restricted assets less current liabili es and interfund advances (statement of net posi on).

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SUMMARY SCHEDULES Funding Sources Fiscal Year 2019 General Fund

HURF Fund

GARS Fund

QC CFD Fund

RS CFD Fund

CIIF Fund

Wastewater Fund

% of Sources

Total

Revenues: Taxes

$ 6,491,810

Licenses & Permits

1,537,270

Intergovernmental

7,781,140

$

2,377,880

$

-

$ 582,290

-

$

57,620 $ 3,013,540 $

-

-

599,700

-

-

-

403,500

4,094,840

-

17.2%

1,940,770

3.3%

14,853,560

25.2%

4,611,740

7.8%

227,540

0.4%

Charges for Services

927,080

-

15,000

-

-

-

Fines & Forfeits

193,540

-

34,000

-

-

-

Investment Earnings

316,270

5,760

1,690

50

20,130

37,460

226,400

607,760

1.0%

58,850

-

30,000

425,980

344,320

249,800

60,000

1,168,950

2.0%

680,390

1,008,320

422,070

7,395,640

4,359,560

33,555,580

57.0%

Miscellaneous Revenues Total

17,305,960

2,383,640

3,669,660

$ 10,145,260

-

Proceeds on Sale of Assets

-

-

-

-

-

54,000

-

54,000

0.1%

Capital Leases

-

-

-

-

-

570,000

-

570,000

1.0%

-

-

-

(1,396,450)

4,685,080

3,940,130

(4,330,350)

Net Transfers In (Out)

(3,725,250)

436,620

Beginning Fund Balances

19,912,610

711,950

Total Funding Sources % of All Funds

41.9%

$ 33,493,320 $ 3,532,210 $ 1,105,330 $ 1,008,320 $ 4,457,130 $ 10,563,320 $ 4,714,290 $ 58,873,920

100.0%

6.0%

1.9%

-

1.7%

22

4,035,060

0.0%

24,694,340

56.9%

424,940

-

7.6%

17.9%

8.0%

100.0%


BUDGET SUMMARY—S S Funding Uses Fiscal Year 2019 Fund/Department General Fund Mayor & Council Town Manager Law Town Clerk Finance Human Resources Planning & Building Parks & Recreation Public Works Police Municipal Court Non-Departmental Subtotal: HURF Fund GARS Fund QC CFD Fund RS CFD Fund CIIF Fund Wastewater Fund ALL FUNDS TOTAL

Personnel $

76,990 $ 500 $ 753,170 31,100 633,480 38,250 363,970 215,490 802,610 298,330 306,330 13,370 1,295,840 86,880 1,071,830 659,600 544,270 508,520 5,893,380 682,850 489,830 80,050 75,280 12,231,700 2,690,220

HURF Fund GARS Fund QC CFD Fund RS CFD Fund CIIF Fund Wastewater Fund ALL FUNDS TOTAL % of All Categories

6,250 $ 20,610 16,200 43,140 18,280 9,650 22,680 192,450 55,430 233,200 21,990 2,500 642,380

Capital

85,950 $ 38,470 13,250 30,380 327,380 14,380 19,780 120,720 10,050 112,500 25,150 106,140 904,150

Total

- $ 169,690 843,350 701,180 652,980 1,446,600 30,000 373,730 23,890 1,449,070 12,000 2,056,600 1,118,270 6,921,930 617,020 183,920 65,890 16,534,340

724,740 2,162,030 155,180 320,530 25,000 3,387,480 460,490 79,830 112,210 22,890 316,000 991,420 10,660 500 43,180 54,340 18,360 1,550 19,910 720,000 720,000 682,550 781,940 173,310 440,840 2,078,640 $ 14,099,480 $ 5,743,040 $ 1,083,580 $ 1,733,140 $ 1,126,890 $ 23,786,130 OPERATIONS

Fund/Department General Fund Mayor & Council Town Manager Law Town Clerk Finance Human Resources Planning & Building Parks & Recreation Public Works Police Municipal Court Non-Departmental Subtotal:

OPERATIONS Supplies Other

Services

Categories Total

% of All Funds

- $ 169,690 843,350 701,180 652,980 1,446,600 373,730 1,449,070 2,056,600 1,118,270 6,921,930 617,020 16,958,980 17,142,900 16,958,980 33,493,320

56.9%

3,387,480 144,730 3,532,210 991,420 113,910 1,105,330 54,340 953,980 1,008,320 19,910 382,030 4,055,190 4,457,130 720,000 2,186,780 6,831,540 825,000 10,563,320 2,078,640 2,431,370 315,340 (111,060) 4,714,290 $ 23,786,130 $ 5,954,160 $ 11,202,070 $ 17,931,560 $ 58,873,920

6.0% 1.9% 1.7% 7.6% 17.9% 8.0% 100.0%

(From Above)

$

169,690 $ 843,350 701,180 652,980 1,446,600 373,730 1,449,070 2,056,600 1,118,270 6,921,930 617,020 183,920 16,534,340

40.4%

Debt Service

Capital Outlay -

$

10.1%

Fund Balances -

19.0%

23

$

30.5%

100.0%


SUMMARY SCHEDULES Interfund Transfers Fiscal Year 2019 Transfer Recipient General Fund

Transfers From

General Fund

HURF GARS QC CFD RS CFD Fund Fund Fund Fund A $ 500,000 $ $ -

HURF Fund

$ -

GARS Fund

-

-

QC CFD Fund

-

-

-

RS CFD Fund

-

-

-

CIIF Fund Wastewater Fund Total

$ -

-

$ 500,000

-

-

63,380

-

-

-

-

CIIF Wastewater Fund Fund Total B C $ 1,112,500 $ 2,112,750 $ 3,725,250

-

D

-

63,380

-

-

-

-

-

-

-

-

C

-

2,579,220 D

-

-

-

6,890

$-

$ -

$ -

$ 1,182,770

2,579,220 6,890

$ 4,691,970

$ 6,374,740

Transfer Descrip ons A This transfer represents the General Fund’s contribu on towards the pavement management program in the HURF Fund.

B This transfer represents the General Fund’s contribute on the SAMTEC project funded out of the CIIF, which fulfills the local matching obliga on required by the EDA’s grant.

C These transfers represent forgiveness of a por on of the interfund advances made to the Wastewater Fund. The $4.7 million total was iden fied by consultants in the last rate study conducted for the Wastewater Fund.

D These transfers will reimburse the CIIF for vehicle lease costs associated with the Town’s motor pool replacement program.

24


WHERE DOES THE MO

25


ONEY COME FROM?

26


MAJOR REVEN N

Money Doesn’t Grow on Trees

T

he age-old adage is of course, a cliché, but like so many overused phrases, it does hold some wisdom in its essence. Our parents told us money doesn’t grow on trees because they meant to make us consider the meaning and importance of finite resources and scarcity. When we learn to truly value what we have, we more carefully consider our op ons for what to do with those resources. It makes priori zing, and making every dollar count, an absolute must. But there is something very tree-like about our funding: the sources of our major revenues are supported by many branches, leaves, and roots—all collec ng resources (life support) for the main trunk.

This sec on of the budget details and examines the sources of our funding for the purpose of looking forward and forming a basis for future planning. We spend great me and a en on examining the market trends related to our income, so that we are sure to plan accordingly. Major revenue sources for the Town of Sahuarita are town sales tax, construc on tax, franchise tax, building permit fees, sewer connec on fees, shared state sales tax, shared state income tax, shared state vehicle license tax, state shared highway user revenue fund, capital grants and sewer user fees.

27


NUE SOURCES

Total Projected Revenue 2019

Millions

Major Revenue Sources FY 2019

T

he following table displays 86% ($29.0 million) of the total revenues expected to be reported in ďŹ scal year 2019 and in which fund they are accounted.

$16.0

$14.0

$12.0

$10.0

$8.0

$6.0

$4.0

$2.0

$0.0 Sales Tax Construction Tax Franchise Tax Building Permit Fees Sewer Connection Fees State Sales Tax State Income Tax State Vehicle License Tax State Shared HURF Capital Grants Sewer User Fees

General $5,575,870

HURF

CIIF

Wastewater

$3,013,540

$350,550 $1,485,550 $403,500 $2,857,780 $3,534,770 $1,388,590 $2,352,880 $4,344,640 $3,669,660

28


MAJOR REVEN N

General Sales Tax (Taxes) Description and Use transac on privilege tax is assessed on sales ac vity within the Town limits. There are no restric ons placed on this revenue source. The revenues are recorded in the General Fund and are used to fund daily opera ons.

$250

$8.0 $7.0

$200

$6.0 $5.0

$150

$4.0

Per Capita

Millions

A

$100

$3.0 $2.0

$50

$1.0 $0.0 Revenue Per Capita

2014 actual

2015 actual

2016 actual

2017 actual

$4,432,280 $162

$4,740,679 $170

$4,969,422 $176

$5,094,675 $177

2018 estimated $5,575,870 $190

2019 projected $6,124,260 $199

2020 projected $6,616,640 $210

2021 projected $6,924,850 $215

2022 projected $7,232,350 $219

2023 projected $7,518,890 $223

$0

Current Rate Structure The Town operates under Arizona’s Model City Tax Code (h p://modelcitytaxcode.az.gov/). The Town assesses a 2.0% tax rate on most general, non-service business transac ons. The State of Arizona collects taxes on behalf of the Town and remits them to the Town on a weekly basis.

Assumptions Projec ons were based on es mated popula on and growth in commercial development. The es mates were derived using planning documents for new development in the Town. Ina onary factors and tax leakage assump ons were also considered in the projec ons.

Trend We expect a posi ve trend. General sales taxes per capita are projected to increase over me. More commercial development will result in less sales leakage, resul ng in a higher per capita capture rate.

29


NUE SOURCES

Construction Contracting Taxes (Taxes) Description and Use

A

$4.5

180%

$4.0

160%

$3.5

140%

$3.0

120%

$2.5

100%

$2.0

80%

$1.5

60%

$1.0

40%

$0.5

20%

$0.0 Revenue % of Debt Service

2014 actual

2015 actual

2016 actual

2017 actual

$2,484,010 138%

$1,860,564 113%

$2,131,797 136%

$1,860,616 113%

2018 estimated $2,604,160 162%

2019 projected $3,013,540 149%

2020 projected $3,128,770 151%

2021 projected $3,373,390 163%

2022 projected $3,438,030 139%

2023 projected $3,812,240 154%

% of Debt Service

Millions

transac on privilege tax is assessed on construc on contrac ng ac vity occurring within the Town limits. The Town Council has designated these revenues to pay for capital projects and associated debt. These tax revenues are recorded in the Capital Infrastructure Improvement Fund.

0%

Current Rate Structure The Town operates under Arizona’s Model City Tax Code (h p://modelcitytaxcode.az.gov/). The Town has a tax rate of 4.0% on all construc on contrac ng transac ons. The State of Arizona collects taxes on behalf of the Town and remits them to the Town on a weekly basis.

Assumptions Projec ons were based on growth es mates. The expecta on was derived using planning documents for new development, factored for items influencing the housing market in the State and na onwide. Infla onary impacts were also considered.

Trend We expect a posi ve trend. Taxes are expected to increase in the future as more commercial is expected to develop. The capital plan, however, assumes that more debt will be issued in the future as well.

30


MAJOR REVEN N

Franchise Taxes (Taxes) Description and Use

T

$14

$450

$400

$12

$350 $10

$300 $250

$8

$200

$6

$150

Per Capita

Thousands

he Town of Sahuarita collects franchise fees from cable and gas u lity providers pursuant to executed agreements. The agreements license the u li es to use the Town’s right-of-ways. There are no restric ons placed on this revenue source. The revenues are recorded in the General Fund and are used to fund daily opera ons.

$4

$100 $2

$50 $0 Revenue Per Capita

2014 actual

2015 actual

2016 actual

2017 actual

$303,600 $11

$316,332 $11

$318,035 $11

$310,987 $11

2018 estimated $350,550 $12

2019 projected $367,550 $12

2020 projected $376,200 $12

2021 projected $385,150 $12

2022 projected $394,150 $12

2023 projected $403,070 $12

$0

Current Rate Structure Franchise tax rates are 5.0% and 2.0% for cable and gas, respec vely. The rates are set forth in franchise agreements. The u lity companies pay the taxes to the Town on a quarterly basis.

Assumptions Projec ons were based on es mated growth in popula on. The es mate was derived using planning documents for new development.

Trend We expect to see a stable trend. Franchise taxes per capita are projected to be about the same as they have been in the past.

31


NUE SOURCES

Building Permit Fees (Licenses and Permits) Description and Use

F

140%

$1,800 $1,600

120%

$1,400 100%

$1,200 $1,000

80%

$800

60%

$600

% of Dept Exps

Thousands

ees are charged for the permission to construct or alter buildings, structures, and improvements within the Town limits. There are no restric ons placed on this revenue source. The revenues are recorded in the General Fund and are used to fund daily opera ons, namely those of the Planning & Building Department.

40%

$400 20%

$200 $0 Revenue % of Dept Exps

2014 actual

2015 actual

2016 actual

2017 actual

$779,759 69%

$1,075,344 97%

$1,395,961 120%

$1,349,627 112%

2018 estimated $1,485,550 114%

2019 projected $1,502,270 105%

2020 projected $1,518,990 103%

2021 projected $1,535,710 101%

2022 projected $1,527,350 98%

2023 projected $1,527,350 95%

0%

Current Rate Structure Building permi ng fees are calculated primarily by the type and size of the building structure. Mechanical, plumbing, and electrical fees are calculated based upon a standard percentage of the building permit valua on. The fees are collected when the permits are issued to the applicant.

Assumptions Projec ons were based on the number of permits expected to be issued for each year. The expecta on was derived using planning documents for new development as well as expecta ons about factors inuencing the housing market in the State and na onwide.

Trend We will likely see a slightly nega ve trend. Compared to the past, future revenues are expected to cover a lower percentage of the direct costs to operate the Planning and Building Department. Costs increase over me due to ina onary factors. The increase in new growth is not expected to occur at quite the same rate, crea ng the slightly nega ve trend. Accordingly, future fee increases may be warranted.

32


MAJOR REVEN N

Sewer Connection Fees (Licenses and Permits) Description and Use

A

Thousands

fee is charged when new homes and businesses connect to the Town’s sewer system. Sewer connec on fees are used to pay capital costs (and associated debt) to expand, improve, and maintain the wastewater treatment facili es. The fees are recorded in the Wastewater Enterprise Fund. $700

30%

$600

25%

$500

20%

$400 15% $300 10%

$200

5%

$100 $0 Revenue % of WW Debt Svc

2014 actual

2015 actual

2016 actual

2017 actual

$409,467 17.2%

$169,543 7.1%

$194,696 8.3%

$156,362 6.4%

2018 estimated $332,310 13.7%

2019 projected $403,500 16.6%

2020 projected $479,130 19.7%

2021 projected $332,960 13.7%

2022 projected $635,170 26.1%

2023 projected $439,800 18.0%

0%

Current Rate Structure The Town’s u lity currently only serves two developments in the Town. For these developments, the Town is contractually obligated to charge the same fee that the Pima County Wastewater U lity charges. Charges are based upon the size of the water meter the home or business uses. The fees are collected when building permits are issued.

Assumptions Projec ons were based on the number of permits expected to be issued. The expecta on was derived using planning documents for new development as well as expecta ons about factors influencing the housing market in the State and na onwide.

Trend We expect to see a posi ve trend. More growth is expected to occur in the u lity’s service area than in the past. This will generate more revenues. As the debt service obliga on is expected to remain flat, a higher percentage of these costs will be covered by the connec on fees.

33


NUE SOURCES

State Shared Sales Taxes (Intergovernmental) Description and Use

Millions

I

ncorporated ci es and towns receive a por on of the State’s sales tax collec ons. There are no restric ons placed on this revenue source. The revenues are recorded in the General Fund and are used to fund daily opera ons. $4.0

$120

$3.5

$100

$3.0

$60

$2.0 $1.5

Per Capita

$80

$2.5

$40

$1.0 $20

$0.5 $0.0 Revenue Per Capita

2014 actual

2015 actual

2016 actual

2017 actual

$2,198,614 $80

$2,308,388 $83

$2,385,534 $85

$2,620,019 $91

2018 estimated $2,756,440 $94

2019 projected $2,857,780 $93

2020 projected $2,991,470 $95

2021 projected $3,146,410 $98

2022 projected $3,370,820 $102

2023 projected $3,531,350 $105

$0

Current Rate Structure The State’s transac on privilege tax rate is 5.6%. The State’s distribu on is based upon the Town’s popula on figures in propor on to the popula ons of other municipali es. Historically, the popula on figures were adjusted every five years. However, beginning in 2017, the popula on basis has been adjusted annually based upon US Census es mates. Distribu ons are made twice a month.

Assumptions The Arizona Department of Revenue provides the Town with projected revenues for the upcoming fiscal year. Future projecons are based upon the Town’s es mated growth compared to the State’s projec ons for its future growth.

Trend We expect to see a posi ve trend. State shared sales taxes per capita are projected to increase over me. The State’s economy is growing and the Town’ popula on growth is expected to outpace the Statewide average.

34


MAJOR REVEN N

State Shared Income Taxes (Intergovernmental) Description and Use

I

$140

$5.0 $4.5

$120

$4.0 $100

$3.5 $3.0

$80

$2.5 $60

$2.0

$1.5

Per Capita

Millions

ncorporated ci es and towns receive a por on of the State’s income tax collected in the fiscal year two years prior. There are no restric ons placed on this revenue source. The revenues are recorded in the General Fund and are used to fund daily opera ons.

$40

$1.0 $20

$0.5 $0.0 Revenue Per Capita

2014 actual

2015 actual

2016 actual

2017 actual

$2,815,436 $103

$3,057,758 $110

$3,041,180 $108

$3,470,987 $121

2018 estimated $3,560,890 $121

2019 projected $3,534,770 $115

2020 projected $3,717,200 $118

2021 projected $3,890,230 $121

2022 projected $4,204,510 $127

2023 projected $4,446,590 $132

$0

Current Rate Structure The State distributes to the municipali es 15% of the total income taxes it collected from two years prior. The State’s distribuon is based upon the Town’s popula on figures in propor on to the popula ons of other municipali es. Historically, the popula on figures were adjusted every five years. However, beginning in 2017, the popula on basis has been adjusted annually based upon US Census es mates. Distribu ons are made monthly.

Assumptions The Arizona Department of Revenue provides the Town with projected revenues for the upcoming fiscal year. Future projecons are based upon the Town’s es mated growth compared to the State’s projec ons for its future growth.

Trend We expect to see a posi ve trend. State shared income taxes per capita are projected to increase over me. The State’s economy is growing and the Town’ popula on growth is outpacing the Statewide average.

35


NUE SOURCES

State Shared Vehicle License Taxes (Intergovernmental) Description and Use

$2,000

$60

$1,800

$50

$1,600 $1,400

$40

$1,200 $30

$1,000

Per Capita

Thousands

I

ncorporated ci es and towns receive a por on of the State’s vehicle license tax collec ons. There are no restric ons placed on this revenue source. The revenues are recorded in the General Fund and are used to fund daily opera ons.

$800 $20

$600 $400

$10

$200 $0 Revenue Per Capita

2014 actual

2015 actual

2016 actual

2017 actual

$962,878 $35

$1,006,277 $36

$1,058,242 $37

$1,215,841 $42

2018 estimated $1,287,750 $44

2019 projected $1,388,590 $45

2020 projected $1,479,520 $47

2021 projected $1,580,010 $49

2022 projected $1,723,280 $52

2023 projected $1,835,540 $54

$0

Current Rate Structure The State’s distribu on is based upon the Town’s popula on figures in propor on to the popula ons of other municipali es. Historically, the popula on figures were adjusted every five years. However, beginning in 2017, the popula on basis has been adjusted annually based upon US Census es mates. Distribu ons are made twice a month.

Assumptions The Arizona Department of Transporta on provides projec ons for statewide revenue collec ons. The Town’s projec ons start with the statewide figure and allocate a propor on of it based upon the Town’s projected popula on rela ve to that of the Statewide projected popula on for the year in ques on.

Trend The expected trend is posi ve. State shared vehicle license taxes per capita are projected to increase over me. The State’s economy is growing and the Town’ popula on growth is outpacing the Statewide average.

36


MAJOR REVEN N

Highway User Revenue Funds (HURF) (Intergovernmental) Description and Use

I

Millions

ncorporated ci es and towns receive a por on of the State’s HURF collec ons. The Arizona Cons tu on restricts the use of HURF. Funding must be used exclusively for street and highway purposes, excluding use for traffic law enforcement or administra on of traffic safety programs. These revenues are recorded in the HURF Special Revenue Fund.

$3.0

$90

$80 $2.5 $70 $60 $50 $1.5 $40

Per Capita

$2.0

$30

$1.0

$20 $0.5 $10 $0.0 Revenue Per Capita

2014 actual

2015 actual

2016 actual

2017 actual

$1,652,277 $60

$1,794,793 $64

$1,868,903 $66

$2,056,468 $71

2018 estimated $2,212,570 $75

2019 projected $2,352,880 $76

2020 projected $2,479,000 $79

2021 projected $2,510,610 $78

2022 projected $2,674,820 $81

2023 projected $2,784,850 $82

$0

Current Rate Structure The majority of the HURF is generated from the tax on fuel sales ($0.18 per gallon) and a por on on vehicle license taxes. Ci es and towns receive 27.5% of total HURF collected. The funds are distributed based on two calcula ons. First, 50% of the available funds are distributed based on popula on figures in propor on to other local jurisdic ons. Second, the remaining 50% is distributed to coun es based on fuel sales and further to ci es and towns based on popula on propor on in the county. Distribu ons are received monthly.

Assumptions The Arizona Department of Transporta on provides projec ons for statewide revenue collec ons. The Town’s projec ons start with the statewide figure and allocate a propor on of it based upon the Town’s projected popula on rela ve to that of the Statewide projected popula on for the year in ques on.

Trend We expect a posi ve trend. State shared HURF per capita are projected to increase a li le over me. The State’s economy is growing and the Town’ popula on growth is outpacing the Statewide average. Alterna ve fuel and more fuel efficient vehicles are expected to slow the revenue growth.

37


NUE SOURCES

Capital Grants (Miscellaneous and Intergovernmental) Description and Use

T

90%

$12

80%

$10

70% 60%

$8

50%

$6

40% 30%

$4

20%

$2

10%

$0 Misc Revenue Gov't Revenue % of Capital

% of Capital

Millions

he Town receives grant funding from other governmental en es such as the State of Arizona, Pima County, and the Regional Transporta on Authority. The Town may also receive capital grants from non-governmental en es (miscellaneous revenue). Capital grant revenues are used for the acquisi on and construc on of capital assets, as restricted in the grant or intergovernmental agreements. These revenues are typically recorded in the HURF or the CIIF funds depending on the funding source and nature of the grant agreement.

2014 actual

2015 actual

2016 actual

2017 actual

$$9,087,167 75%

$72,438 $10,738,963 82%

$2,900,000 $2,343,948 85%

$31,191 $1,271,688 33%

2018 estimated $49,000 $947,400 19%

2019 projected $249,800 $4,094,840 58%

2020 projected $$0%

2021 projected $325,000 $8%

2022 projected $$0%

2023 projected $$0%

0%

Current Rate Structure Capital grant agreements are typically structured to reimburse the Town for actual costs incurred. Grant agreements are in place with the Pima Associa on of Governments and the Regional Transporta on Authority.

Assumptions Agreements are in place for much of the projected revenues. These agreements primarily reimburse the Town for costs incurred. Therefore, revenues will be realized to the extent that expenditures are incurred on capital projects.

Trend We expect the trend to be nega ve. The propor on of capital projects funded by grants varies year-to-year but historically has exceeded 55%. Many of the Town’s major roadway projects were front-loaded into the long-term plans of the RTA and PAG and were completed. As such, there is not as much capital grant funding available to the Town beyond 2019.

38


MAJOR REVEN N

Sewer User Fees (Charges for Services) Description and Use

S

Millions

ewer user fees are charged to the households and businesses served by the wastewater u lity. Sewer user fees are used to pay the opera ng costs of the wastewater u lity and to pay a por on of the debt service costs. The fees are recorded in the Wastewater Enterprise Fund. $6.0

$900

$800 $5.0 $4.0

$600 $500

$3.0 $400 $2.0

Per Customer

$700

$300 $200

$1.0 $100 $0.0 Revenue Per Customer

2014 actual

2015 actual

2016 actual

2017 actual

$2,940,100 $544

$3,085,168 $563

$3,198,886 $576

$3,250,867 $578

2018 estimated $3,342,270 $583

2019 projected $3,669,660 $627

2020 projected $4,016,370 $673

2021 projected $4,382,010 $720

2022 projected $4,775,660 $769

2023 projected $5,204,890 $822

$0

Current Rate Structure Customers are charged a fixed monthly service fee and a volumetric fee based on the amount of water they consume. Fees are set at rates needed to pay for opera ons and maintenance. Addi onally, the fees pay a por on of debt service and, pursuant to exis ng debt agreements, are set to ensure the revenue-to-debt coverage ra os are met. The fees are reviewed periodically to determine if they are adequate to meet the obliga ons of the enterprise.

Assumptions The majority of the projected revenues will be collected from exis ng customers. New customers of the u lity will generate addi onal revenues. The expecta on for new customers was derived using planning documents for new development and expecta ons about factors influencing the housing market in the State and na onwide.

Trend Revenues will trend posi vely. Annual 7% rate increases are expected for the next five years, which will produce higher sewer user fees per customer over me. Also, we expect there to be more commercial development in the next five years, which will drive the average up.

39


NUE SOURCES

40


HOW DOES FUND B

41


BUDGETING WORK? T

he Town organizes its ac vi es into seven different funds. Each fund in the Town of Sahuarita is a separate set of accounts that iden fies and predicts unique sources and uses of funding. When summed together, these funds form the legal budget (see Legal Requirements sec on for more informa on). Each fund is accounted for separately.

What is Fund Accounting and Why is it Different from Business Accounting? Governments and businesses perform their accoun ng in very different ways in order to accomplish different purposes. The Governmental Finance Officers Associa on describes the differences in the following way: For purposes of determining profitability, it typically suffices to look at a business “taken as a whole.” Such a “big picture” approach, however, normally is insufficient for assessing stewardship and compliance. What is really needed in this la er case is some tool for organizing and presen ng data about financial resources that highlights the fact that certain resources have been “segregated for the purposes of carrying on specific ac vies or a aining certain objec ves in accordance with special regula ons, restric on, or limita ons.” For state and local governments, that tool is fund accoun ng.

What are the Funds Used by the Town? The Town uses the following seven funds to account for all of its financial ac vity.

x x x x x x

General Fund Highway User Revenue Fund (HURF) Grants and Restricted Sources Fund (GARS) Quail Creek Community Facili es District Fund (QC CFD) Rancho Sahuarita Community Facili es District Fund (RS CFD) Capital Infrastructure Improvement Fund (CIIF) x Wastewater Fund (WW)

What is a Balanced Budget? A fund is considered to be in balance when its financial sources equal its uses. Sources are made up of all money received during the year plus all savings from prior years, and uses are made up of all money spent during the year plus all money to be saved for future years. For prac cal purposes, however, it may be be er to consider a fund in balance when there is at least as much money coming in as going out. When each fund is in balance, the sum of these funds (the budget taken as a whole) will be in balance.

42


FUND BUD D

Appropriated Funds and Fund Types Governmental Funds GENERAL

SPECIAL REVENUES

CAPITAL PROJECTS

Accounts for and reports all financial resources not accounted for and reported in another fund.

Accounts for and reports the proceeds of specific revenue sources that are restricted or commi ed to expenditure for specified purposes other than debt.

Accounts for and reports financial resources that are restricted, commi ed, or assigned to expenditure for capital outlays, including the acquisi on or construc on of capital facili es and other assets.

General Fund*

HURF Fund

CIIF Fund*

GARS Fund

QC CFD Fund RS CFD Fund

Proprietary Fund SPECIAL REVENUES Reports ac vity for which a fee is charged to external users for goods and services. Wastewater Enterprise Fund*

* Any budgeted fund that represents 10% or more of the total appropriated revenues or expenditures is considered a major fund.

43


DGETING

Department Funding by Source DEPARTMENT

GENERAL FUND

HURF FUND

GARS FUND

QC CFD FUND

MAYOR AND COUNCIL TOWN MANAGER

LAW

TOWN CLERK

FINANCE

HUMAN RESOURCES PLANNING AND BUILDING PARKS AND RECREATION PUBLIC WORKS

POLICE

MUNICIPAL COURT

STREETS

WASTEWATER

NONDEPARTMENTAL

44

RS CFD FUND

CIIF FUND

WW FUND


FUND BUD D

What is the General Fund? Purpose: The General Fund serves as the chief opera ng fund of the Town. It is used to account for all financial resources except those required to be accounted for in other funds.

2

019 budgeted revenues exceed expenditures by $771,620 and are 14.9% and 4.0%, respec vely, more than last year’s budget. The General Fund ending balance is expected to decline by $2.95 million. The decrease is a ributable to transfers of resources to the HURF and CIIF to provide funding for pavement management and the SAMTEC capital project, and to the Wastewater fund to forgive a por on of the interfund advance.

Services: x

Law & Order

x

Development Assistance

x

x

Millions

General Fund $25.0

$20.0

$15.0

Parks Maintenance and Recrea on

$10.0

Administra on and Support Services

$5.0

$0.0 Ending Fund Balance

2017 Actual 19,294,255

2018 Estimate 19,912,610

2019 Budget 16,958,980

The ending fund balance is projected to be nearly $17.0 million. Of this amount, $4.57 million is non-spendable, funding that is advanced to the Wastewater Fund to manage its unassigned deficit posi on. The remaining $12.4 million is 75% of the General Fund's budgeted expenditures, well above the 25% stabiliza on reserve level required by Town ordinance and policy. The General Fund reserves commitment includes amounts ($1.22 million) needed to cover the opera onal reserve deficiencies of the HURF and Wastewater Funds. The Town Council has also assigned $100,000, available for the Town Manager to handle unan cipated needs during the year. Finally, the Town Council has adopted a policy establishing a $10 million target for unassigned reserves by 2020. Unassigned balances at 2018 year-end are projected to be $5.99 million.

45


DGETING

General Fund 2017 Actual Amount

Adopted Budget

2018 Amended Budget

Estimated Actual

2019 Budget Amount

% Change From From Amended Estimated

SOURCES Revenues: Taxes Licenses & Permits Intergovernmental Charges for Services Fines and Forfeitures Investment Earnings Miscellaneous Subtotal: Other Sources: Transfers Out Subtotal: Beginning Fund Balance: Nonspendable Committed Unassigned Subtotal: TOTAL SOURCES

$ 5,401,454 $ 5,650,300 $ 5,650,300 $ 5,926,420 $ 6,491,810 1,396,504 1,339,950 1,339,950 1,520,550 1,537,270 7,306,848 7,578,350 7,578,350 7,605,080 7,781,140 779,218 958,960 958,960 901,460 927,080 191,424 190,750 190,750 173,390 193,540 120,243 239,780 239,780 239,780 316,270 54,130 66,350 66,350 45,980 58,850 15,249,821 16,024,440 16,024,440 16,412,660 17,305,960

14.9% 14.7% 2.7% -3.3% 1.5% 31.9% -11.3% 8.0%

9.5% 1.1% 2.3% 2.8% 11.6% 31.9% 28.0% 5.4%

(3,725,250) (3,725,250)

38.2% 38.2%

462.3% 462.3%

3,382,917 4,502,470 4,502,470 5,111,290 5,966,050 4,752,160 4,507,590 4,507,590 4,819,510 5,355,390 10,555,791 10,098,980 10,098,980 9,363,450 8,591,170 18,690,868 19,109,040 19,109,040 19,294,250 19,912,610 $33,681,556 $32,438,480 $32,438,480 $ 35,044,410 $33,493,320

32.5% 18.8% -14.9% 4.2% 3.3%

16.7% 11.1% -8.2% 3.2% -4.4%

$ 109,752 $ 137,550 $ 137,550 $ 137,470 $ 169,690 505,501 540,420 540,420 529,020 576,820 228,494 245,860 245,860 232,980 266,530 641,872 698,420 698,420 657,890 701,180 496,464 578,880 578,880 485,850 652,980 1,270,644 1,423,180 1,423,180 1,352,700 1,446,600 236,500 279,940 279,940 247,300 373,730 1,209,030 1,312,040 1,312,040 1,295,670 1,449,070 1,614,975 1,897,330 1,897,330 1,795,500 2,056,600 864,667 1,008,570 1,008,570 1,045,120 1,118,270 6,423,746 7,026,530 7,026,530 6,596,370 6,921,930 562,774 602,080 602,080 574,180 617,020 222,882 154,420 154,420 181,750 183,920 14,387,301 15,905,220 15,905,220 15,131,800 16,534,340

23.4% 6.7% 8.4% 0.4% 12.8% 1.6% 33.5% 10.4% 8.4% 10.9% -1.5% 2.5% 19.1% 4.0%

23.4% 9.0% 14.4% 6.6% 34.4% 6.9% 51.1% 11.8% 14.5% 7.0% 4.9% 7.5% 1.2% 9.3%

4,572,500 5,355,390

-10.8% 11.1%

-23.4% 11.1%

100,000 100,000 100,000 100,000 100,000 500,000 500,000 500,000 500,000 8,830,805 5,988,850 5,988,850 8,527,050 6,931,090 19,294,255 16,533,260 16,533,260 19,912,610 16,958,980 $33,681,556 $32,438,480 $32,438,480 $ 35,044,410 $33,493,320

0.0% -100.0% 15.7% 2.6% 3.3%

0.0% -100.0% -18.7% -14.8% -4.4%

(259,133) (259,133)

(2,695,000) (2,695,000)

(2,695,000) (2,695,000)

(662,500) (662,500)

USES Current Expenditures: Mayor & Council Town Manager Economic Development Law Town Clerk Finance Human Resources Planning & Building Parks & Recreation Public Works Police Municipal Court Non-Departmental Subtotal: Ending Fund Balance: Nonspendable Committed for Reserves Assigned for: Contingencies Asset Maintenance Unassigned Subtotal: TOTAL USES

5,111,290 4,752,160

5,124,900 4,819,510

5,124,900 4,819,510

46

5,966,050 4,819,510


FUND BUD D

What is the Highway User Revenue Fund? Purpose: The Highway User Revenue Fund (HURF) is a Special Revenue Fund that accounts for the Town’s share of the State’s motor fuel tax revenues. HURF revenues are restricted for transporta on purposes.

I

n 2019, total revenues are expected to decrease by 42.6% below last year’s budget. There will not be as much State HURF capital grant funding available for Town projects, which accounts for the decline. Transfers out to the CIIF, where project costs are recorded and reimbursed, are decreasing commensurate to the decline in capital grant funding. The Streets Department opera ng costs are budgeted to increase by 20.8%, mostly to enhance the Town’s pavement management program (see Streets Department sec on for more informa on on significant changes). The General Fund will transfer in $500 thousand to help subsidize the pavement management program.

Services: x

x

Maintain Streets and Bridges Street Ligh ng

T Thousands

HURF Fund $1,000 $900 $800 $700 $600 $500 x

Maintain Traffic Control Systems

$400 $300

x

Pavement Management

$200 $100 $0

Ending Fund Balance

2017 Actual 936,262

2018 Estimate 711,950

2019 Budget 144,730

Ending fund balances will decrease by $567 thousand. As the Town’s infrastructure ages, the fund will need to consume more resources to maintain adequate roadway condi ons. Ending fund balance is projected to be $145 thousand, which is restricted for streets/transporta on purposes only. This balance falls short of the 25% opera onal reserve requirement of the fund by $702 thousand. As such, the General Fund has set aside addi onal reserves to cover this shor all.

47


DGETING

Highway User Revenue Fund 2017 Actual Amount

Adopted Budget

2018 Amended Budget

Estimated Actual

2019 Budget Amount

% Change From From Amended Estimated

SOURCES Revenues: Intergovernmental Investment Earnings Miscellaneous Subtotal:

$ 4,494,357 $ 4,141,310 $ 4,141,310 $ 2,362,570 $ 2,377,880 5,146 10,740 10,740 12,000 5,760 3,210 470 4,502,713 4,152,050 4,152,050 2,375,040 2,383,640

Other Sources: Transfers In Transfers Out Subtotal:

(2,315,863) (1,749,950) (1,749,950) (2,315,863) (1,749,950) (1,749,950)

Beginning Fund Balance: Restricted for HURF Subtotal:

TOTAL SOURCES

(29,110) (29,110)

500,000 (63,380) 436,620

-42.6% -46.4% -42.6%

0.6% -52.0% -100.0% 0.4%

-96.4% 117.7% -125.0% -1599.9%

671,434 791,080 791,080 936,260 711,950 671,434 791,080 791,080 936,260 711,950 $ 2,858,284 $ 3,193,180 $ 3,193,180 $ 3,282,190 $ 3,532,210

-10.0% -10.0% 10.6%

-24.0% -24.0% 7.6%

$ 1,922,022 $ 2,804,080 $ 2,804,080 $ 2,570,240 $ 3,387,480 1,922,022 2,804,080 2,804,080 2,570,240 3,387,480

20.8% 20.8%

31.8% 31.8%

936,262 389,100 389,100 711,950 144,730 936,262 389,100 389,100 711,950 144,730 $ 2,858,284 $ 3,193,180 $ 3,193,180 $ 3,282,190 $ 3,532,210

-100.0% -62.8% 10.6%

-79.7% -79.7% 7.6%

USES Current Expenditures: Streets Subtotal: Ending Fund Balances: Restricted for Streets Subtotal:

TOTAL USES

48


FUND BUD D

What is the Grants and Restricted Sources Fund? Purpose: The Grants and Restricted Sources (GARS) Fund is a Special Revenue Fund that accounts for federal, state, and local opera ng grants and other opera ng revenues whose use is restricted for certain purposes.

T

he Police Department was awarded new federal and state grants to reimburse the Town for a majority of the payroll costs associated with adding new Officers to the Department. This grant ac vity will be recorded in the GARS fund and accounts for the more than 30% increases in intergovernmental revenues and Police Department expenditures.

Services: x

x

x

Enhance the Town’s Policing Sponsorships for Fiesta Sahuarita Support Ac vi es of the Court

Thousands

GARS Fund $800 $700 $600 $500 $400 $300 $200 x

Account for Grant Ac vity

$100 $0

Ending Fund Balance

2017 Actual 480,080

2018 Estimate 424,940

2019 Budget 113,910

The GARS fund balance is budgeted to decrease $311 thousand. The Police Department will purchase equipment and make facility improvements using resources previously accumulated for such purposes. The ending fund balance is projected to be $114 thousand, which is restricted for use by the Police Department and Municipal Court. These balances will be consumed over me as the Town iden fies appropriate uses for them.

49


DGETING

Grants and Restricted Sources Fund 2017 Actual Amount

Adopted Budget

2018 Amended Budget

Estimated Actual

2019 Budget Amount

% Change From From Amended Estimated

SOURCES Revenues: Intergovernmental Charges for Services Fines & Forfeitures Investment Earnings Miscellaneous Subtotal: Beginning Fund Balance: Restricted for Police Restricted for Courts Subtotal:

TOTAL SOURCES

$ 372,109 $ 416,540 $ 439,820 $ 332,100 $ 599,700 11,250 15,000 15,000 10,000 15,000 29,293 87,870 87,870 26,370 34,000 2,617 3,060 3,060 3,660 1,690 42,652 32,500 32,500 35,500 30,000 457,921 554,970 578,250 407,630 680,390

36.4% 0.0% -61.3% -44.8% -7.7% 17.7%

80.6% 50.0% 28.9% -53.8% -15.5% 66.9%

504,082 430,340 430,340 434,520 372,410 39,800 46,670 46,670 45,560 52,530 543,882 477,010 477,010 480,080 424,940 $ 1,001,803 $ 1,031,980 $ 1,055,260 $ 887,710 $ 1,105,330

-13.5% 12.6% -10.9% 4.7%

-14.3% 15.3% -11.5% 24.5%

$ 485,695 $ 760,380 $ 783,660 $ 433,270 $ 960,710 22,053 10,500 10,500 17,500 8,000 13,975 15,000 15,000 12,000 22,710 521,723 785,880 809,160 462,770 991,420

22.6% 100.0% 51.4% 22.5%

121.7% -54.3% 89.3% 114.2%

434,520 192,560 192,560 372,410 52,880 45,560 53,540 53,540 52,530 61,030 480,080 246,100 246,100 424,940 113,910 $ 1,001,803 $ 1,031,980 $ 1,055,260 $ 887,710 $ 1,105,330

-72.5% 14.0% -53.7% 4.7%

-85.8% 16.2% -73.2% 24.5%

USES Current Expenditures: Police Economic Development Parks and Recreation Subtotal: Ending Fund Balances: Restricted for Police Restricted for Municipal Court Subtotal:

TOTAL USES

50


FUND BUD D

What is the Quail Creek Communities Facilities District Fund? Purpose: The Quail Creek Community Facili es District (QC CFD) Fund is a blended component unit of the Town, a Special Revenue Fund that accounts for the District’s acquisi on, construc on, and maintenance of major capital facili es within the District boundaries. District funds are restricted for District purposes only.

T

he QC CFD budgeted fund balance is unchanged from last year. The District levies a property tax to pay for debt service and opera ons. The District consumes its opera onal resources to pay for District administra on, street and park maintenance costs. It requires contribu ons from the developer to pay the por on of debt service not sufficiently funded by the property tax levy.

QC CFD FUND Services: x

Maintain and Landscape District Streets

x

Maintain Por ons of Quail Creek Veteran’s Municipal Park

x

Pay Debts

$1

$0

-$1 Ending Fund Balance

2017 Actual -

51

2018 Estimate -

2019 Budget -


DGETING

Quail Creek Communities Facilities District Fund 2017 Actual Amount

Adopted Budget

2018 Amended Budget

Estimated Actual

2019 Budget Amount

% Change From From Amended Estimated

SOURCES Revenues: Taxes Investment Earnings (Losses) Miscellaneous Subtotal:

$

Other Sources: Face Amount of Refunding Debt Net Premium on Refunding Debt Subtotal: Beginning Fund Balance: Restricted for QC CFD Subtotal: TOTAL SOURCES

465,336 $ 508,470 $ 508,470 $ 508,470 $ 582,290 651 20 50 276,843 195,220 195,220 195,220 425,980 742,830 703,690 703,690 703,710 1,008,320 9,940,000 57,694 9,997,694

-

-

-

-

14.5% 118.2% 43.3% -

14.5% 118.2% 43.3% -

$ 10,740,524 $ 703,690 $ 703,690 $ 703,710 $ 1,008,320

43.3%

43.3%

$

800 12,360 41,180 54,340

-77.6% -25.1% 50.7% 14.6%

0.0% -25.7% 37.3% 14.6%

670,000 279,480 4,500 953,980 1,008,320

83.6% -2.5% 0.0% 45.4% 43.3%

83.6% -2.5% 0.0% 45.4% 43.3%

$ 10,740,524 $ 703,690 $ 703,690 $ 703,710 $ 1,008,320

43.3%

43.3%

USES Current Expenditures: General Government Streets Park and Recreation Subtotal: Debt Service: Principal Interest Other Debt Issuance Costs Subtotal: Subtotals Combined: Ending Fund Balance: Restricted for QC CFD Subtotal: TOTAL USES

133 $ 10,107 28,449 38,689 9,770,000 435,812 3,750 492,273 10,701,835 10,740,524

3,570 $ 16,510 27,330 47,410 365,000 286,780 4,500 656,280 703,690

52

3,570 $ 16,510 27,330 47,410 365,000 286,780 4,500 656,280 703,690

800 $ 16,640 29,990 47,430 365,000 286,780 4,500 656,280 703,710


FUND BUD D

What is the Rancho Sahuarita Communities Facilities District Fund? Purpose: The Rancho Sahuarita Community Facili es District (RS CFD) Fund is a blended component unit of the Town, a Special Revenue Fund that accounts for the District’s acquisi on and maintenance of major capital facili es within the District boundaries. District funds are restricted for District purposes only.

T

he RS CFD fund balance is budgeted to decrease by more than $4.0 million, consuming all of its available resources (i.e., unspent bond proceeds) to acquire infrastructure. The District will levy a property tax to pay for debt service and operaons and maintenance. Developer contribu ons will pay for any funding shor alls.

Services: x

x

District Administra on Streets Engineering

Thousands

RSCFD FUND $4,500 $4,000 $3,500 $3,000 $2,500 $2,000

x

Infrastructure Acquisi on

$1,500 $1,000

x

Pay Debts

$500 $0 Ending Fund Balance

2017 Actual -

53

2018 Estimate 4,035,060

2019 Budget -


DGETING

Rancho Sahuarita Communities Facilities District Fund 2017 Actual Amount

Adopted Budget

2018 Amended Budget

Estimated Actual

2019 Budget Amount

% Change From From Amended Estimated

SOURCES Revenues: Taxes Investment Earnings (Losses) Misc-Developer Contributions Subtotal:

$

Other Sources: Face amount of long-term debt Subtotal: Beginning Fund Balance: Restricted for Capital Acquisition Restricted for RS CFD Subtotal: TOTAL SOURCES

2,303 $ 40,860 $ 40,860 $ 142 17,493 338,200 338,200 19,938 379,060 379,060 -

7,320,000 7,320,000

7,320,000 7,320,000

2,144 2,144 $ 22,082 $ 7,699,060 $ 7,699,060 $

2,460 $ 10,160 14,880 27,500 5,780,000 5,780,000

57,620 20,130 344,320 422,070 -

41.0% 1.8% 11.3%

2242.3% 98.1% 2214.0% 1434.8%

-100.0% -100.0%

-100.0% -100.0%

5,807,500 $

4,035,060 4,035,060 4,457,130

-42.1%

-23.3%

800 $ 16,640 17,440

800 19,110 19,910

-56.5% 22.5% 14.2%

0.0% 14.8% 14.2%

USES Current Expenditures: General Government Streets Subtotal: Debt Service: Principal Interest Other Debt issuance costs Subtotal: Capital Outlay: Infrastructure Subtotal: Subtotals Combined: Ending Fund Balance: Restricted for Capital Acquisition Restricted for RS CFD Subtotal: TOTAL USES

$

1,401 $ 20,681 22,082 22,082 -

1,840 $ 15,600 17,440

1,840 $ 15,600 17,440

362,950 560,000 922,950

362,950 560,000 922,950

345,000 345,000

377,030 5,000 382,030

3.9% -100.0% -58.6%

-100.0% 10.7%

6,758,670 6,758,670 7,699,060

6,758,670 6,758,670 7,699,060

1,410,000 1,410,000 1,772,440

4,055,190 4,055,190 4,457,130

-40.0% -40.0% -42.1%

187.6% 187.6% 151.5%

-

-

$ 22,082 $ 7,699,060 $ 7,699,060 $

54

4,035,060 4,035,060 5,807,500 $

4,457,130

-42.1%

-100.0% -100.0% -23.3%


FUND BUD D

What is the Capital Infrastructure Improvement Fund? Purpose: The Capital Infrastructure Improvement Fund (CIIF) is a Capital Projects Fund that accounts for the acquisi on, construc on, replacement, and major repairs of capital facili es and other assets.

T

he CIIF fund balance is budgeted to decrease $3.12 million. $2.58 million of this amount stems from a transfer to the Wastewater Fund to reect forgiveness of interfund advances. The General Fund will transfer in $1.18 million to pay for the a por on of the SAMTEC project costs, providing the local matching requirements of the federal EDA’s $3.0 million grant. Other reduc ons to fund balance are the result of the Town using resources accumulated in previous years to purchase equipment and capital projects (see the Capital Improvement Plan for more informa on).

Services: x

Construct and Acquire Assets and Infrastructure

Millions

CIIF Fund $6.0

$5.0

$4.0

$3.0 x

Manage Projects

x

Pay Debts

$2.0

$1.0

$0.0 Ending Fund Balance

2017 Actual 5,922,601

2018 Estimate 3,940,130

2019 Budget 825,000

The ending fund balance is projected to be $825 thousand, which has been assigned for to construct and acquire assets and infrastructure in the future. This amount exceeds the minimum fund balance amount required by Town policy.

55


DGETING

Capital Infrastructure Improvement Fund 2017 Actual Amount

2018 Amended Budget

Adopted Budget

Estimated Actual

2019 Budget Amount

% Change From From Amended Estimated

SOURCES Revenues: Taxes Licenses and Permits Intergovernmental Investment Earnings (Losses) Miscellaneous Subtotal: Other Sources: Capital Leases Transfers In Transfers Out Proceeds on the Sale of Assets Subtotal: Beginning Fund Balance: Restricted for Grant Projects Assigned to Interfund Advances Assigned for Debt Service Assigned for Capital Projects Subtotal:

TOTAL SOURCES

$ 1,864,823 $ 2,306,000 $ 2,306,000 $ 2,604,160 $ 3,013,540 3,600 6,000 113,779 3,050,000 3,050,000 947,400 4,094,840 42,565 79,250 79,250 79,250 37,460 122,516 150,000 150,000 49,000 249,800 2,147,283 5,585,250 5,585,250 3,685,810 7,395,640

30.7% 34.3% -52.7% 66.5% 32.4%

15.7% -100.0% 332.2% -52.7% 409.8% 100.7%

570,000 1,182,770 (2,579,220) 54,000 (772,450)

111.1% -63.7% -121.5%

9.6% 70.2% 34.0% -161.5%

22,000 22,000 27,300 2,579,222 3,304,840 3,304,840 2,579,220 2,579,220 231,218 231,220 231,220 231,220 361,220 3,659,603 3,222,600 3,222,600 3,084,860 999,690 6,470,043 6,780,660 6,780,660 5,922,600 3,940,130 $ 11,481,798 $ 15,952,220 $ 15,952,220 $ 10,863,680 $ 10,563,320

-100.0% -22.0% 56.2% -69.0% -41.9% -33.8%

-100.0% 0.0% 56.2% -67.6% -33.5% -2.8%

$ 1,174,731 $ 1,157,500 $ 1,157,500 $ 1,181,500 $ 1,708,870 474,833 447,320 447,320 455,320 472,910 1,900 5,000 5,000 5,000 5,000 1,651,464 1,609,820 1,609,820 1,641,820 2,186,780

47.6% 5.7% 0.0% 35.8%

44.6% 3.9% 0.0% 33.2%

4,766,620 300,000 2,121,920 363,000 7,551,540 9,738,320

-9.6% -9.9% -17.2% -80.3% -24.6% -16.2%

255.1% -24.8% 25.8% -80.4% 43.0% 40.7%

27,300 2,579,222 3,304,840 3,304,840 2,579,220 231,218 361,220 361,220 361,220 3,084,861 663,740 663,740 999,690 825,000 5,922,601 4,329,800 4,329,800 3,940,130 825,000 $ 11,481,798 $ 15,952,220 $ 15,952,220 $ 10,863,680 $ 10,563,320

-100.0% -100.0% 24.3% -80.9% -33.8%

-100.0% -100.0% -17.5% -79.1% -2.8%

298,609 2,565,863 2,864,472

270,000 3,258,310 58,000 3,586,310

270,000 3,258,310 58,000 3,586,310

520,000 694,970 40,300 1,255,270

USES Debt Service: Principal Interest Other Subtotal: Capital Outlay: General Government Public Safety Highways and Streets Culture and Recreation Subtotal: Subtotals Combined: Ending Fund Balance: Restricted for Grant Projects Assigned to Interfund Advances Assigned for Debt Service Assigned for Capital Projects Subtotal:

TOTAL USES

752,826 325,009 2,718,732 111,166 3,907,733 5,559,197

5,274,360 333,100 2,564,140 1,841,000 10,012,600 11,622,420

56

5,274,360 333,100 2,564,140 1,841,000 10,012,600 11,622,420

1,342,500 399,000 1,686,230 1,854,000 5,281,730 6,923,550


FUND BUD D

What is the Wastewater Fund? Purpose: The Wastewater Fund is an Enterprise Fund used to account for sewer service opera ons and the acquisi on and construc on of capital assets associated with this line of business.

T

he Wastewater Fund budgeted ending balance is expected to improve by $4.22 million. The General Fund and CIIF will transfer in a total of $4.69 million, represen ng forgiveness of interfund advances. Revenues are increasing by 8.5% due to 7% user rate increases enacted last year and expected again mid-year 2019; and increases in investment earnings stemming from the accumula on and apprecia on of long-term storage (effluent recharge) credits. In total, revenues are expected to increase by $342 thousand. Opera ng and debt service costs are decreasing by $96 thousand, or 2.1%. Another $315 thousand will be spent on capital projects. Total expenditures will exceed revenues resul ng in a net $140 thousand decrease to fund balance. Debt service net revenue coverage ra o (including the rate stabiliza on fund) is expected to be 1.45, exceeding the 1.20 is the minimum required by the WIFA system revenues loan agreement.

Services: x

x

U lity Billing and Collec ons Treat Sewage

x

Recharge Effluent

x

Pay Debts

Millions

Wastewater Fund $0.0 -$0.5 -$1.0 -$1.5 -$2.0 -$2.5 -$3.0 -$3.5 -$4.0 -$4.5 -$5.0 Ending Fund Balance

2017 Actual (3,721,547)

2018 Estimate (4,330,350)

2019 Budget (111,060)

The ending fund balance is projected to be -$111 thousand. Of this amount, pursuant to debt agreements, $2.11 million and $750 thousand are restricted for debt service and rate stabiliza on, respec vely. $1.59 million of ending balances are assigned to long-term storage credits, which are being held for sale but not expected to be liquidated during the year. The General Fund will be required to advance $4.56 million to cover the fund’s unassigned deficits. The longer term outlook for the fund is addressed in the 5 Year Plan sec on of the Budget.

57


DGETING

Wastewater Fund 2017 Actual Amount

Adopted Budget

2018 Amended Budget

Estimated Actual

2019 Budget Amount

% Change From From Amended Estimated

SOURCES Operating Revenues: User Charges Subtotal: Non-Operating Revenues: Investment Earnings (Losses) Sewer Connection Fees Miscellaneous Subtotal: Subtotal: Other Sources: Capital Leases Transfers In Transfers Out Subtotal: Beginning Fund Balance: Restricted for Debt Service Restricted for Rate Stabilization Fund Assigned for Long-term Storage Credits Unassigned (Deficit) Subtotal:

TOTAL SOURCES

$ 3,250,867 $ 3,329,920 $ 3,329,920 $ 3,342,270 $ 3,669,660 3,250,867 3,329,920 3,329,920 3,342,270 3,669,660

10.2% 10.2%

9.8% 9.8% 28.4% 21.4% 100.0% 19.1% 11.2%

205,674 156,362 96,552 458,588 3,709,455

66,610 546,880 74,650 688,140 4,018,060

66,610 546,880 74,650 688,140 4,018,060

176,350 332,310 70,550 579,210 3,921,480

226,400 403,500 60,000 689,900 4,359,560

239.9% -26.2% -19.6% 0.3% 8.5%

250,249 9,133 259,382

1,190,000 (3,360) 1,186,640

1,190,000 (3,360) 1,186,640

(3,360) (3,360)

4,691,970 (6,890) 4,685,080

294.3% 105.1% 105.1% 294.8% -139536.9%

2,108,048 2,108,050 2,108,050 2,108,050 2,108,050 750,000 750,000 750,000 750,000 750,000 1,101,040 1,347,000 (5,835,824) (7,797,440) (7,797,440) (7,680,640) (8,535,400) (2,977,776) (4,939,390) (4,939,390) (3,721,550) (4,330,350) $ 991,061 $ 265,310 $ 265,310 $ 196,570 $ 4,714,290

0.0% 0.0% 9.5% -12.3% 1676.9%

0.0% 0.0% 22.3% 11.1% 16.4% 2298.3%

$ 1,370,851 $ 1,619,680 $ 1,619,680 $ 1,578,950 $ 1,592,670 364,908 505,430 505,430 446,860 485,970 1,735,759 2,125,110 2,125,110 2,025,810 2,078,640

-1.7% -3.9% -2.2%

0.9% 8.8% 2.6%

USES Current Expenditures: Wastewater Utility Finance Subtotal: Debt Service: Principal Interest Subtotal:

1,565,306 832,049 2,397,355

1,648,620 782,470 2,431,090

1,648,620 782,470 2,431,090

1,593,230 836,250 2,429,480

1,652,600 778,770 2,431,370

0.2% -0.5% 0.0%

3.7% -6.9% 0.1%

Capital Outlay: Plant, Conveyance and Equipment Subtotal: Subtotals Combined:

579,494 579,494 4,712,608

1,270,930 1,270,930 5,827,130

1,270,930 1,270,930 5,827,130

71,630 71,630 4,526,920

315,340 315,340 4,825,350

-75.2% -75.2% -17.2%

340.2% 340.2% 6.6%

2,108,048 2,108,050 2,108,050 2,108,050 2,108,050 750,000 750,000 750,000 750,000 750,000 1,101,040 1,347,000 1,593,520 (7,680,635) (8,419,870) (8,419,870) (8,535,400) (4,562,630) (3,721,547) (5,561,820) (5,561,820) (4,330,350) (111,060) $ 991,061 $ 265,310 $ 265,310 $ 196,570 $ 4,714,290

0.0% 0.0% -45.8% -98.0% 1676.9%

0.0% 0.0% 18.3% -46.5% -97.4% 2298.3%

Ending Fund Balance: Restricted for Debt Service Restricted for Rate Stabilization Fund Assigned for Long-term Storage Credits Unassigned (Deficit) Subtotal:

TOTAL USES

58


HOW DO WE ACCOM M

59


MPLISH OUR GOALS?

60


DEPARTMENT SUMMARIES AN N

“A

neew fi new n fiscal yyear gives us a moment tto reflect refl flect on n the things that work wor so well for fo or ou our ur comm community, munity, as well on those tho ose wh where here we w strive striive to break new ground. In keeping with our ideals, we have ve m modified odified our Strategic Plan to span 2016 201 16-20 2019. 2 019. This framework will guide our endeavors toward con nual improvement in economic development, infr infrastructure, ra astructur cturre, planning for our community communittty ty’ y’s ffuture future, e e, organiza onal effec veness veness, eness esss, a and quality of life for for all alll Sahuaritans. Sah huari uariitan tan nss.” n – L. Kelly Udall, Town Manager er

61


ND PERFORMANCE MEASURES

M

ajor j items and p projects j p proposed p for inclusion in the Town w ’s budget wn’ wn g are ed closelyy to the Strategic g Plan. The Strategic g Plan focus areas are Economic Development, p , Infrastructure,, Planningg for our Community ty’s Future, Organiza onal Effec veness, and Quality of Life. e e.

Throughout g the Department p Summaries and Performance Measures sec on you y will find these focus areas referenced by use of the icons below. w w. For an example p of such use of icons throughout this secon, please see the following page. e e.

62


DEPARTMENT SUMMARIES AN N

THE KEY TO OUR BUDGET P Con nue to grow the Town’s economic base, bringing in jobs associated with retail, light manufacturing and quality commercial enterprises

Provide and maintain high-quality and cost-effec ve infrastructure

Promote planned growth that fosters high-quality and diverse development, facilitates sustainable infrastructure and assures quality services

Foster an organiza onal culture that embraces change, crea vity, innova on and calculated risk to ensure proac ve, consistent, efficient and accountable service to our community

Maintain a high quality of life that makes Sahuarita a community of choice for residents and business investment; encourage a unified community iden ty

63


ND PERFORMANCE MEASURES

PROCESS IS HERE IN DETAIL

64


DEPARTMENT SUMMARIES AN N

Mayor and Council DEPARTMENT INFORMATION

Yisel Suarez, Execu ve Assistant ysuarez@sahuaritaaz.gov 520-822-8816

MISSION STATEMENT:

The Mayor and Council set public policy and provide staff with direc on to

meet community needs.

TOWN COUNCIL (0.0 FTE, $169,690) The Council establishes goals and objec ves, adopts public policies, and approves the annual budget to meet the community’s needs. All powers of the Council are exercised by ordinance, resolu on, order, or mo on. The Town Council is comprised of seven elected officials. Council Members serve overlapping four-year terms with elec ons held in the Fall of even-numbered years, with a Mayor and Vice Mayor selected by the Council a er each elec on. As the Town’s governing body, the Council establishes goals and objec ves, adopts public policies, and approves the annual budget to meet the community’s needs. All powers of the Council are exercised by ordinance, resolu on, order, or mo on.

65


ND PERFORMANCE MEASURES MAYOR AND COUNCIL COSTS BY CATEGORY $180,000 $160,000 $140,000

Capital

$120,000

Other

$100,000

FY 2019 $ 0 $85,950

Supplies $ 6,250

$80,000

Services

$60,000

$

500

Personnel $76,990

$40,000 $20,000 $0

FY 2017

$109,752

0%

FY 2018

FY 2019

$137,550

$169,690

FUNDING 0% 0% 0%

2019 COST CHANGES

0%

Department Budget Has Changed by:

General Fund

+23%

GARS QCCFD

INCREASES

RSCFD

DECREASES

CIIF Re rement contribu ons: +$17,790

Other 100%

Ci zen survey: -$10,000

Chamber of Commerce: +$20,000

STAFFING 2017

7 Elected

2018

7 Elected

2019

7 Elected

$ Budgeted Per Resident: $5.45 66


DEPARTMENT SUMMARIES AN N

MAYOR AND CO

Goal #1

Goal #2

Goal #3

Goal #4

Goal #5

ECONOMIC DEVELOPMENT Con nue to grow the Town’s economic base, bringing in jobs associated with retail, light manufacturing and quality commercial enterprises

INFRASTRUCTURE Provide and maintain high-quality and cost-effec ve infrastructure

PLANNING FOR OUR COMMUNITY’S FUTURE Promote planned growth that fosters high-quality and diverse development, facilitates sustainable infrastructure and assures quality services

ORGANIZATIONAL EFFECTIVENESS Promote planned growth that fosters high-quality and diverse development, facilitates sustainable infrastructure and assures quality services

QUALITY OF LIFE Maintain a high quality of life that makes Sahuarita a community of choice for residents and business investment. Encourage a unified community iden ty

67


ND PERFORMANCE MEASURES

OUNCIL GOALS Expand the local economy through a comprehensive business and industry recruitment, reten on and expansion program to generate revenues and provide job opportuni es for our community Revise the Strategic Plan for economic development Promote tourism of our community and the Green Valley Region Provide and maintain public streets and rights-of-way Provide and maintain parks, trails and recrea on facili es Maintain and operate wastewater plant and collec on system to ensure system integrity Provide effec ve management of town-owned buildings Manage storm water drainage Complete work on major planning efforts to guide the Town’s future Facilitate development opportuni es Plan and pursue future service delivery opportuni es Deliver high-quality, business friendly services Build a financially resilient government Iden fy and seek opportuni es to expand and advance the use of technology in the delivery of services A ract, engage, and retain highly-qualified employees to create an organiza on of excellence Con nuous improvement Effec ve opera on of town-owned infrastructure Assure that the Town con nues to be a safe community Provide parks, facili es, programs and events that foster a healthy lifestyle and enhance the lives of residents. Incorporate art and culture into Town projects and events to promote the rich, culturally diverse history of Sahuarita

68


DEPARTMENT SUMMARIES AN N

Town Manager

GENERAL INFORMATION L. Kelly Udall, Town Manager kudall@sahuaritaaz.gov 520-822-8816

MISSION STATEMENT: The Town Manager directs and coordinates staff to implement Town Council policies and programs with the highest level of professionalism and customer service. As a division of the Town Manager’s Department, Economic Development seeks to a ract and retain a diversity of firms to create and sustain high-wage jobs, genera ng wealth and revenues for the community. TOWN MANAGER (4.0 FTE, $576,820) The Town Manager provides the professional leadership necessary to implement and administer the programs and policies established by the Mayor and Council. The Manager informs and advises the Council on ma ers of concern to the Town. The Manager studies, evaluates, and proposes alterna ve solu ons for Council considera on, prepares and implements the annual financial plan, and coordinates the ac vies of all departments under his authority with the goal of providing high levels of comprehensive and effec ve services to the residents.

DEPARTMENT HIGHLIGHTS

x

Implemented the Town's first Animal Services Program which includes enforcement, licensing and educa on, enhancing customer service for the residents

x

Successfully annexed La Posada Park Centre into the Town, adding over 700 new residents and approximately 100 acres

x

x

x

x

A $3.0 million Economic Development Administra on grant award for the Sahuarita Advanced Manufacturing and Technolo- x gy Center (SAMTEC) project x A total of $180,000 in grant awards from Freeport McMoRan for x the SAMTEC project and the BizEDGE small business assistance x program x Successfully implemented an agreement with the Sahuarita School District to partner in the crea on of three lighted sports fields. The Town's contribu on is $1,391,950

x

Comple on of the Sahuarita Town District Vision Plan and Phase I Opportuni es. A Sahuarita District website was created for public informa on (www.sahuaritanow.com)

x

Copper Point Development Specific Plan approved by Council; pending public vote. Nov. 2018

69

UA-MPA Program, developed a Lead Genera on & Targeted Sector Prospect List for the recruitment and a rac on of new employers/businesses to Sahuarita TOWN AWARDS AAED Golden Prospector Award Deal of the Year SAMTEC AAED Golden Prospector Award Sahuarita Marke ng Brochure Universal Public Procurement Cer fica on Council (UPPCC) Agency Cer fica on Award in the small agency category Procurement Manager of the Year—Cherie Odeski Recognized (3) Town of Sahuarita Employees in the 2017 Employee Awards (2) Above and Beyond: Yisel Suarez and Donnell Rogers and (1) Manager’s Choice in Excellence Awards: Deborah Morales


ND PERFORMANCE MEASURES TOWN MANAGER COSTS BY CATEGORY $700,000 $600,000

Capital

$500,000

Other

$400,000

FY 2019 $ 0 $ 15,670

Supplies $ 15,110

$300,000

Services

$200,000

$ 20,600

Personnel $525,440

$100,000 $0

FY 2017

$505,501

0%

FY 2018

FY 2019

$540,120

$576,820

FUNDING 0% 0% 0%

2019 COST CHANGES

0%

Department Budget Has Changed by:

General Fund

+7%

GARS QCCFD

INCREASES

RSCFD

DECREASES

CIIF 100%

Management retreat: +$10,000

Other

No signiямБcant decreases

Furniture: +$5,000

STAFFING 2017

4.0 FTE

2018

4.0 FTE

2019

4.0 FTE

$ Budgeted Per Resident: $18.51 70


DEPARTMENT SUMMARIES AN N

TOWN MANAGER GOALS AND

Goal #1

Implement direc ves and goals to achieve results in the Strategic Plan Focus Areas iden fied by Mayor and Council to include, but not limited to: Economic Development, Infrastructure, Planning for Our Community's Future, Organiza onal Effec veness, and Quality of Life.

Goal #2

Ensure the alignment and development of strategic plans in conjunc on with Mayor and Council priori es while providing organizaonal leadership and management.

Goal #3

Provide effec ve and efficient cons tuent services

Goal #4

Provide responsible, fiscal management

71


ND PERFORMANCE MEASURES ACTUAL ESTIMATED TARGET FY 2017 FY 2018 FY 2019

MEASURES Number of Strategic Plan objec ves achieved in a year

43/107

83/107

107

4

5

NA

3

3

3

Number of procurement contracts approved by Council

26

25

30

Number of manager/employee mee ngs

6

6

6

Number of town-wide community events

12

20

21

Percentage of residents who believe that the Town of Sahuarita government acts in the best interests of the community (Biannual Ci zen Survey)

NA

60

NA

Percentage of residents ra ng the Town as a good or excellent place to live (Biannual Ci zen Survey)

NA

95

NA

92,000

92,000

92,000

Are all departments opera ng within their budget

Y

Y

Y

Town's fund balance is within financial policy

Y

Y

Y

Audit of town's finances is without findings

Y

Y

Y

Successful agreements associated with development adopted by council Number of Professional Development Programs (3 Employee Apprecia on Programs, educa onal reimbursement, Employee Morale Commi ee)

Funding of community service programs (emergency housing and food, animal control, WW u lity assistance)

72


DEPARTMENT SUMMARIES AN N

Economic Development GENERAL INFORMATION Victor Gonzalez, Director vgonzalez@sahuaritaaz.gov 520-822-8817

MISSION STATEMENT:

The Economic Development Department will aid the growth of the town’s economic base, bringing in jobs associated with retail, light manufacturing and quality commercial enterprises.

ECONOMIC DEVELOPMENT (2.0 FTE, $274,530) The purpose of economic development is to a ract and retain appropriate commercial and industrial development businesses, offering residents high-paying employment opportuni es. Cul va ng rela onships with company representa ves, landowners, real estate brokers, governmental agencies, and Mexico is cri cal to the mission for economic development. The department seeks to improve the economic wellbeing and quality of life of the community by building on local and regional assets, industry sector opportuni es and addressing barriers to growth.

DEPARTMENT HIGHLIGHTS

x

x

A $3.0 million Economic Development Administra on grant award for the Sahuarita Advanced Manufacturing and Technology Center (SAMTEC) project x A total of $180,000 in grant awards from Freeport McMoRan for x the SAMTEC project and the BizEDGE small business assistance program

x

Successfully implemented an agreement with the Sahuarita School District to partner in the crea on of three lighted sports fields. The Town's contribu on is $1,391,950

x

Comple on of the Sahuarita Town District Vision Plan and Phase I Opportuni es. A Sahuarita District website was created for public informa on (www.sahuaritanow.com)

x

UA-MPA Program, developed a Lead Genera on & Targeted Sector Prospect List for the recruitment and a rac on of new employers/businesses to Sahuarita

73

TOWN AWARDS AAED Golden Prospector Award Deal of the Year SAMTEC AAED Golden Prospector Award Sahuarita Marke ng Brochure


ND PERFORMANCE MEASURES ECONOMIC DEVELOPMENT COSTS BY CATEGORY $300,000 $250,000

Capital

$200,000

Other

$150,000

FY 2019 $ 0 $ 29,300

Supplies $ 7,000 Services

$100,000

$ 10,500

Personnel $227,730 $50,000

$0

FY 2017

$250,547

FY 2018

FY 2019

$256,360

$274,530

FUNDING 0%

0% 3% 0%

2019 COST CHANGES

0%

Department Budget Has Changed by:

+7%

General Fund GARS

INCREASES

QCCFD RSCFD CIIF

Staff reclassifica ons: +$11,380

Other 97%

DECREASES Grant-funded small business development services: -$10,500

Marke ng outreach: +$10,000 So ware support: -$5,000

Grant-funded Shark Tank Program: +$8,000

STAFFING 2017

2.0 FTE

2018

2.0 FTE

2019

2.0 FTE

$ Budgeted Per Resident: $8.81 74


DEPARTMENT SUMMARIES AN N

ECONOMIC DEVELOPMENT GOALS A

Goal #1

Build on Sahuarita's abundant assets and advantages

Goal #2

Expand Sahuarita's internal capacity to facilitate and accommodate economic development

Goal #3

Retain and grow exis ng economic drivers and employers

Goal #4

Strengthen present and future employment and business centers through investment

Goal #5

Grow and a ract quality ďŹ rms and jobs (domes c and global) in targeted sectors

75


ND PERFORMANCE MEASURES ACTUAL ESTIMATED TARGET FY 2017 FY 2018 FY 2019

AND MEASURES Number of area businesses assisted

80

80

80

Number of retail prospects

12

15

15

Number of major employers visited

8

10

10

Number of acres cer ďŹ ed shovel-ready

0

10

10

Number of targeted sector prospects

10

13

13

Number of user visits to the BizHub

50

120

120

94,000

94,000

94,000

Number of visitors to Sahuarita a rac ons

Number of jobs added in Sahuarita

2% increase

76


DEPARTMENT SUMMARIES AN N

Department of Law GENERAL INFORMATION Daniel J. Hochuli, Esq., Town A orney dhochuli@sahuaritaaz.gov 520-822-8832

MISSION STATEMENT: The mission of the Department of Law is to protect the Town, its resources, and its residents in civil and criminal ma ers.

CIVIL DIVISION (3.0 FTE, $478,560) The Civil Division of the Department of Law provides legal advice to the Town Council, Town Manager, Department Directors and other Town staff in order to ensure compliance with state and federal laws. This includes compliance with the Arizona open mee ng laws, public records laws, and many other laws that are peculiar to municipali es. The Civil Division also prepares agreements with developers for provision of infrastructure, coordinates the acquisi on of land for public uses, works with the Town Clerk to assure compliance with all elec on laws and regula ons, and performs other legal tasks as required. The Town A orney is required by state law to read, approve, and sign all contracts, intergovernmental agreements, resolu ons, and ordinances prior to their submission to the Town Council, in order to assure that not only is the document in compliance with state law, but also within the authority of the Town.

CRIMINAL DIVISION (2.0 FTE, $222,620) The Criminal Division of the Department of Law is responsible for the prosecu on of misdemeanor crimes that occur within the Town’s boundaries. It represents the State in all such cases, and in so doing safeguards the cons tu onal rights of defendants and the rights of vic ms and their families. Its mission is to ensure that jus ce is served and that a fair, though ul, and appropriate resoluon is achieved in all ma ers.

DEPARTMENT HIGHLIGHTS

x

x

x x x

x

The department con nues to work coopera vely with Town staff, developers and merchants to foster and promote economic development, by preparing development agreements that encourage economic development. The Civil Division con nues to work with the wastewater billing department to reduce delinquent accounts, including pursuing collec on of small claims court judgments, through the recording of liens, garnishments, and other necessary measures. The Civil Division con nually works with all Town departments to reduce liability and resolve disputes. The Civil Division is working on accomplishing the first bond issue for the Rancho Sahuarita Community Facili es District, providing for the acquisi on of public infrastructure in the District. The Civil Division completed the acquisi on of the real property necessary for the development of the SAMTEC project, and will be working on the final leases with the tenants. The Civil Division completed the pre-annexa on and development agreement, and is working to complete the annexa on of the La Posada Centre.

x

x x

x

77

The Civil Division has completed the acquisi on of right-of-way necessary for the Phase 1 of Quail Creek Crossing Blvd., and upon comple on of the design, will acquire the right-of-way necessary for Phases 2 and 3. The Criminal Division con nues to exhibit supreme customer service by maintaining improved contact with vic ms and ci zens due to increased availability. The Prosecutor con nues to represent the Town on the Southern Arizona DUI Task Force, Animal Cruelty Task Force of Southern Arizona, and the Coali on Against Retail The (formerly the Retail The Summit), a mul jurisdic onal commi ee working to reduce shopli ing and retail the in the region. The Prosecutor has collaborated with the Grant-Funded Vic m Advocate on over 50 cases and con nues to work closely with the Vic m Advocate to con nue successful prosecu on of cases.


ND PERFORMANCE MEASURES DEPARTMENT OF LAW COSTS BY CATEGORY $800,000

$700,000

FY 2019 $ 0 $ 13,250

$600,000

Capital

$500,000

Other

$400,000

Supplies $ 16,200

$300,000

Services

$200,000

Personnel $633,480

$ 38,250

$100,000

$0

FY 2017

$641,872

0%

FY 2018

FY 2019

$698,420

$701,180

FUNDING 0%

0%

2019 COST CHANGES

0%

Department Budget Has Changed by:

+0%

General Fund GARS QCCFD

INCREASES

RSCFD

DECREASES

CIIF Other

Public defender: +$10,000

100%

Contracted legal services: -$15,000

STAFFING 2017

5.0 FTE

2018

5.0 FTE

2019

5.0 FTE

$ Budgeted Per Resident: $22.51 78


DEPARTMENT SUMMARIES AN N

DEPARTMENT OF LAW GOALS AN

Goal #1

Assure that Town opera ons comply with all federal, state and local laws and regula ons by mely response to requests for legal analysis, advice and answers to legal issues.

Goal #2

Provide excellent service to internal client departments.

Goal #3

Expedi ously review Council materials to meet agenda deadlines

Goal #4

Preserve and protect vic ms' rights during criminal case prosecuon.

Goal #5

Fair and even-handed administra on of jus ce to all defendants.

79


ND PERFORMANCE MEASURES ACTUAL ESTIMATED TARGET FY 2017 FY 2018 FY 2019

ND MEASURES No ces of Claim filed

1

4

0

Losses to Town as a result of li ga on (in dollars)

0

0

0

Lawsuits filed against Town

0

0

0

Number of regulatory ac ons against Town by state or federal agencies

0

0

0

100%

100%

100%

Project delayed to such an extent that follow-up is required by departments regarding status of requests for work from the Department of Law

0%

0%

0%

Number of agenda extensions requested due to delays in legal review

0%

0%

0%

Number of vic m cases filed requiring vic m no fica on

215

216

217

100%

100%

100%

Number of cases filed

439

442

445

Number of cases resolved at first contact

196

186

191

Number of cases ending in plea agreements

176

195

222

Contracts approved by packet deadline

Percentage of vic m no ces mely sent.

80


DEPARTMENT SUMMARIES AN N

Town Clerk

GENERAL INFORMATION Lisa Cole, MMC, Town Clerk lcole@sahuaritaaz.gov 520-822-8802

MISSION STATEMENT: The mission of the Town Clerk’s Department is to uphold public trust and offer access to ma

ers of pub-

lic interest by maintaining public records, answering all media inquiries, cul va ng awareness and engagement for Town programs, services and events, and providing efficient and responsive customer service to the community.

TOWN CLERK (4 FTE, $355,310) The department provides administra ve support for legisla ve services, records and informa on management, regulatory licensing and elec on services. Du es include the prepara on of agendas, mee ng no ces and minutes; maintenance of the Town Code; administra on of the appointment process to boards and commissions; safeguarding the Town seal; maintenance and preserva on of accurate Council records; oversight of the Records and Informa on Management Program; dissemina on of public informa on; and processing of liquor, business and bingo licenses.

ELECTIONS (0.0 FTE, $47,800) The division administers all municipal and special district elec ons in accordance with legal requirements. Including the candidate nominaon process; ini a ve, referendum and recall pe ons; campaign finance; financial disclosure statements; and voter educa on and informa on.

COMMUNICATIONS (1.0 FTE, $249,870) The division coordinates programs and policies focusing on the innova ve use of social media, digital communica on, and progressive tools to serve and engage the community. Ac vi es include responding to media inquiries, administra on of the Town website and the produc on and design of newsle ers, presenta ons, surveys, publica ons, promo onal items, press releases and videos.

DEPARTMENT HIGHLIGHTS

x x x

x x

x Implemented online business licensing so ware to streamline the applica on and renewal process Facilitated transi on to the new brand iden ty through the use x of new logo on town vehicles, signs, banners and uniforms Launched a newly designed Town website with increased funconality for the Economic Development, Parks & Recrea on and x Police departments Coordinated and supported the annual State of the Town address Designed the Annual Adopted Budget document for fiscal year 2018 that won the Dis nguished Budget Presenta on Award

81

Assisted economic development with the inaugural marke ng and promo on campaign for BizHub EDGE compe on Assisted formula on of Beau fully Connected concept for site selector brochure Assisted design and crea on of content for informa on kiosk in BizHub lobby


ND PERFORMANCE MEASURES TOWN CLERK COSTS BY CATEGORY $700,000

$600,000

Capital

$500,000

Other

$400,000

FY 2019 $ 0 $ 30,380

Supplies $ 43,140

$300,000

Services

$200,000

$215,490

Personnel $363,970

$100,000

$0

FY 2017

$496,464

0%

FY 2018

FY 2019

$578,880

$652,980

FUNDING 0%

2019 COST CHANGES

0% 0%

Department Budget Has Changed by:

+13%

General Fund GARS QCCFD

INCREASES

RSCFD

DECREASES

CIIF Elec ons: +$47,800

Other

Medical insurance: -$14,650

100% Communica on/marke ng services: +$22,890

STAFFING 2017

5.0 FTE

2018

5.0 FTE

2019

5.0 FTE

Banners/logos: +$14,000

$ Budgeted Per Resident: $20.96 82


DEPARTMENT SUMMARIES AN N

TOWN CLERK GOALS AND ME

Goal #1

Provide courteous, efficient and responsive customer service to the community

Goal #2

Develop and enhance online self-service op ons

Goal #3

Enhance public access to electronic Town records

COMMUNICATIONS GOALS AND

Goal #1

Enhance civic engagement through online presence, social media, and public par cipa on

83


ND PERFORMANCE MEASURES ACTUAL ESTIMATED TARGET FY 2017 FY 2018 FY 2019

EASURES Percentage of customer survey ra ngs mee ng or exceeding expecta ons

100%

100%

100%

Percentage of public records request not completed within 5 business days

31%

50%

30%

58

75

50

Percentage of business licenses issued within 7 business days of receipt

97%

98%

99%

Percentage of audio minutes posted to website within three business days a er mee ng

100%

100%

100%

Percentage of approved mee ng minutes posted to the website within two business days a er mee ng

100%

100%

100%

Number of pages of public records available on the town website

6,270

9,000

12,000

Number of public records requests received

ACTUAL ESTIMATED TARGET FY 2017 FY 2018 FY 2019

D MEASURES Number of Twi er followers

1,860

2,150

2,300

Number of Facebook likes

1,711

2,100

2,500

Number of digital newsle er recipients

1,137

1,200

1,300

162,764

165,000

175,000

101

110

100

Number of visits to town website

Number of media inquiries

84


DEPARTMENT SUMMARIES AN N

Finance Department GENERAL INFORMATION A.C. Marrio , CPA, Finance Director amarrio @sahuaritaaz.gov 520-822-8844

MISSION STATEMENT: The mission of the Finance Department is to protect the Town’s financial and technological resources, to provide quality informa on about the Town’s finances to residents and stakeholders, and to provide superior technological services to all departments.

FINANCE (5.0 FTE, $599,020) Finance provides a variety of financial services to the Council, Town staff, and residents. Services include accoun ng and financial repor ng, budge ng, payroll, accounts payable, u lity billing and special financial analyses.

RISK MANAGEMENT (0.0 FTE, $279,710) The division provides centralized claim management services over property and general liability claims via membership in the Arizona Municipal Risk Reten on Pool.

TECHNOLOGY (4.0 FTE, $694,470) Technology provides advising, service and support for all departments of the Town; responsibili es include the network infrastructure, security, administra on, a ached devices and so ware in addi on to technical training, contract nego a on, project management, maintenance and support.

WASTEWATER BILLING & COLLECTIONS (2.0 FTE, $485,970) The division provides monthly sewer billing and collec ons for the Wastewater U lity. Services also include compiling and analyzing customer consump on data, responding to customer inquiries/requests and maintaining customer accounts, cash handling, and extensive collec on efforts on delinquent customer accounts.

DEPARTMENT HIGHLIGHTS

2018 Accomplishments x

x x

x x x

Received awards from the GFOA for the Town’s 2018 Budget and Comprehensive Annual Financial Report for the fiscal year ended June 30, 2017

2019 Goals x

x Completed a $4.2 million debt refunding, which resulted in a net present value savings of nearly $504 thousand x Worked with consultants to complete a 10 year financial plan x and rate study for the Wastewater Enterprise Fund; implemented Council-approved Wastewater Code changes accordingly x Con nued to expand and implement collec on efforts on delinquent wastewater customer accounts x Upgraded audio/visual equipment in all conference rooms. Built out and upgraded IT network infrastructure, including the deployment of a new storage area network (SAN), and expanded phone system capabili es

85

Issue high quality financial reports for submi al to the GFOA budget and CAFR award programs Implement new travel and training policies, procedures, and forms Expand the u liza on of the financial system’s capabili es. Work with consultants to complete the Strategic Plan for Technology Procure and rollout 40 new worksta ons; deploy Microso Office 2016/365 to the domain Provision public Wi-Fi at the Lake Park


ND PERFORMANCE MEASURES FINANCE DEPARTMENT COSTS BY CATEGORY $2,500,000

$2,000,000

Capital Other

$1,500,000

FY 2019 $125,000 $488,040

Supplies $ 69,230 $1,000,000

Services

Personnel $931,790

$500,000

$0

$445,110

FY 2017

$1,810,716

FY 2018

FY 2019

$2,120,210

$2,059,170

FUNDING

2019 COST CHANGES Department Budget Has Changed by:

24%

General Fund

-3%

GARS

QCCFD 6%

INCREASES

RSCFD

DECREASES

CIIF 70%

Wastewater

STAFFING 2017

11.0 FTE

2018

11.0 FTE

2019

11.0 FTE

Medical insurance: +$36,290

IT capital projects: -$65,000

Indirect cost alloca on: +$58,960

WW collec ons and bad debts: -$87,500

Banking, credit cards, and audit fees: +$19,000

WW rate study and IT strategic plan: -$47,700

IT hardware maintenance and technical services: +$10,950

Risk mgmt. claims paid: -$20,000

$ Budgeted Per Resident: $66.10 86


DEPARTMENT SUMMARIES AN N

FINANCE GOALS AND MEA

Goal #1

Protect the Town's financial resources through compliance with laws, policies, and procedures

Goal #2

Protect the Town's financial resources by minimizing risk exposure to the Town

Goal #3

Maintain healthy reserves

Goal #4

Provide quality informa on to all stakeholders

Goal #5

Perform work efficiently

Goal #6

Ensure mely Wastewater U lity billing prac ces

Goal #7

Enhance technology customer sa sfac on by mee ng or exceeding established service levels

Goal #8

Ensure the Town's technology assets are maintained, reliable, and secure

87


ND PERFORMANCE MEASURES ACTUAL ESTIMATED TARGET FY 2017 FY 2018 FY 2019

ASURES Number of audit findings, reportable condi ons, and/or viola on no ces related to compliance

0

0

0

Average number of days a er month-end bank reconcilia ons are completed

29

23

20

Number of general liability or property claims filed

6

11

<10

$13,366

$21,063

<$25,000

1.09

1.02

0.86

0

0

0

99%

≥99.9%

100%

2

2

2

Ra o of Finance Division cost to budgeted Town-wide opera onal costs

2.5%

2.3%

2.6%

Ra o of Technology Division cost to budgeted Town-wide opera onal costs

2.3%

2.4%

2.5%

Wastewater Billing & Collec on Division net cost per customer

$45.18

$34.99

<$34.99

Percent of bills sent by targeted billing date

100%

100%

100%

Number of service ckets submi ed

1,188

1,300

1,250

Percent of service requests completed within defined meframes

85.9%

80.0%

80.0%

Percent of surveys indica ng customer was sa sfied with support provided

NA

90%

90%

Percent of me network is available for services (based on 24/7 access)

99%

97%

99%

0

0

0

Value of claim losses

Ra o of spendable General Fund ending fund balances to General Fund expenditures (healthy ≥ 0.25)

Accuracy of the Comprehensive Annual Financial Report. Number of auditor iden fied adjustments Percent of financial reports that are issued mely, within defined meframes

Number of awards received for high quality financial repor ng

Number of audit findings, reportable condi ons, and/or viola on no ces

88


DEPARTMENT SUMMARIES AN N

Human Resources

GENERAL INFORMATION Michelle Malo , Human Resources Director mmalo @sahuaritaaz.gov 520-822-8812

MISSION STATEMENT:

The mission of the Human Resources Department is to work collabora vely with all Town departments to recruit, develop and retain a high-performing workforce promo ng a healthy, safe and produc ve work environment and providing quality services to the public.

HUMAN RESOURCES (3.0 FTE, $373,730) The purpose of the Human Resources Department is to provide a variety of personnel services for the Town staff and residents. Services include a aining and retaining qualified staff, offering compe ve wages and benefits, and fostering employee engagement.

DEPARTMENT HIGHLIGHTS

x

Revised the Town’s Personnel Policy Manual to reflect changes to sick leave, vaca on leave, annual leave, nepo sm, benefits and mekeeping policies.

x

The Employee Wellness Commi ee provided three trainings for employees on emo onal intelligence, personal savings / budge ng and the Rally Program through United Health Care. All three events were successful with good employee a endance

x

The Safety Commi ee con nues to have monthly mee ngs to discuss employee injuries and inves gate incidents as needed to ensure that safety is a top priority for all employees

x

Con nue to research, plan and coordinate the tes ng policies and processes for sworn tes ng for all new sworn posi ons, promo ons and special assignments

x

HR represents the town with the Pima Associa on of Government Travel Reduc on Program Regional Task Force; earned the Bronze Award in 2017 for the TRP Recogni on Program for the Travel Reduc on Program Survey

x

Coordinated with United Health Care and the local Walgreen’s pharmacy to provide on-site flu shots to employees and their spouse

x

The Safety Commi ee coordinated with Rural Metro Fire to prox vide voluntary CPR and AED Training for all employees. The training went very well and 38 employees par cipated in the training

89

HR represents the town with the Healthy Pima Employer Wellness Alliance monthly mee ngs and wellness trainings


ND PERFORMANCE MEASURES

HUMAN RESOURCES COSTS BY CATEGORY $400,000

$350,000

FY 2019 $ 30,000 $ 14,380

$300,000

Capital

$250,000

Other

$200,000

Supplies $ 9,650

$150,000

Services

$100,000

Personnel $306,330

$ 13,370

$50,000

$0

FY 2017

$236,500

0% 0%

FY 2018

FY 2019

$279,940

$373,730

FUNDING 0%

2019 COST CHANGES

0% 0%

Department Budget Has Changed by:

+34%

General Fund GARS QCCFD

INCREASES

RSCFD

DECREASES

CIIF Addi onal staï¬&#x20AC;: +$75,190

Other

Computer so ware: -$8,000

100% Performance management system: +$30,000

STAFFING 2017

2.0 FTE

2018

2.0 FTE

2019

3.0 FTE

$ Budgeted Per Resident: $12.00 90


DEPARTMENT SUMMARIES AN N

HUMAN RESOURCES GOALS AND

Goal #1

Annually evaluate and update total compensa on packet to maintain compe ve wages and benefits to recruit and retain quality professional staff

Goal #2

Monitor that staffing levels are appropriate to provide internal and external customers with excellent service

Goal #3

Promote safe workplace prac ces by providing educa on and training to ensure the health and welfare of employees and the public

Goal #4

Evaluate methods for fostering employee engagement and an effecve evalua on system

91


ND PERFORMANCE MEASURES ACTUAL ESTIMATED TARGET FY 2017 FY 2018 FY 2019

D MEASURES Average pay for performance increase

3.7%

3.6%

3.6%

Average years of service

8.6

7.5

7.5

Average number of all employees on the payroll during the repor ng period (includes Elected Officials)

144

148

153

Number of full and part- me posi ons that required external recruitment during the repor ng period

29

27

10

Ra o of town staff to Sahuarita popula on (1:1000)

4.8

4.9

4.9

Total number of OSHA Recordable Accidents / Injuries for all Town employees

9

5

5

Total number of injury cases with days away from work

2

2

1

Total number of injury cases with restric ons or job transfer

2

3

1

Longest number of days with no injuries

83

120

200

Percentage of employee performance reviews completed on schedule

43%

54%

75%

Percentage of employees who le employment during the repor ng period

17%

14%

7%

0

0

0

Number of employee formal grievances filed during the repor ng period

92


DEPARTMENT SUMMARIES AN N

Planning and Building GENERAL INFORMATION

Sarah More, Planning and Building Director smore@sahuaritaaz.gov 520-822-8853

MISSION STATEMENT: The mission of the Planning and Building Department is to ensure the safety of the public through building and fire code educa on, professional assistance, and enforcement; and plan for Sahuarita’s future physical, environmental, economic, and cultural needs, and manage development in the community.

PLANNING AND ZONING (5.0 FTE, $624,630) The Planning and Zoning Division reviews all building plans, business licenses, development plans and subdivision plats for zoning compliance. We prepare and revise the General Plan and the Zoning Code and review proposals for such amendments as well as rezonings, condional uses and variances.

BUILDING SAFETY (8.0 FTE, $824,440) The Building Safety Division reviews building plans for permi ng, issues permits and inspects construc on of new development. We assist the public and applicants in preparing submi als and answer ques ons about code compliance. We perform annual fire inspec ons of commercial developments and assure subdivisions meet fire codes.

DEPARTMENT HIGHLIGHTS

2018 Accomplishments x

2019 Goals

Con nued excellent track record of on- me reviews and service. x 95% of building plan reviews were completed in 10 business days x Major updates for Zoning Code adopted in response to federal and state law, including content-neutral sign standards and wireless communica on facility standards x Major Projects: The Crossing at Sahuarita, The Corner at Rancho Sahuarita, Santa Cruz Meadows Tenta ve Plat, Entrada del Rio Tenta ve and Final Plats, and Circle K

Consistently meet or exceed processing mes for plan reviews and inspec ons

x

x Processed: 1 new Specific Plan, 1 Specific Plan Amendment, 3 Development Plans, 3 Tenta ve Plats, 2 Final Plats, 2 Condi onal Use Permits, 3 Wireless Communica on Facili es, and 5 zoning code amendments.

Partner with regional jurisdic ons and local stakeholders to evaluate the 2018 Interna onal building codes; target goal is 3rd quarter FY19 to present to Mayor and Council for adop on

x

Began implementa on of technology goal for new permi ng so ware, online submi als, electronic plan review, and GIS, in order to enhance customer service

x

x

93

Con nue to evaluate/refine zoning codes for opportuni es to modernize and streamline, including streamlined residen al zones Con nue implementa on efforts for new technology, par cularly for permi ng tracking so ware, online submi als, electronic plan review, and GIS. Ensure that our technology enables the best possible customer service.


ND PERFORMANCE MEASURES

PLANNING AND BUILDING COSTS BY CATEGORY $1,600,000 $1,400,000

$1,200,000

Capital

$1,000,000

Other

FY 2019 $ 23,890 $ 19,780

$800,000

Supplies $

22,680

$600,000

Services

86,880

$400,000

Personnel $1,295,840

$

$200,000 $0

FY 2017

$1,209,030

FY 2018

FY 2019

$1,357,040

$1,449,070

FUNDING 0%

0%

2019 COST CHANGES

0%

Department Budget Has Changed by:

+7%

General Fund GARS QCCFD

INCREASES

RSCFD CIIF

Addi onal staï¬&#x20AC;: +$86,400

Other

DECREASES Development services ERP costs: -$21,110

100% Building code books: +7,020

STAFFING 2017

12.0 FTE

2018

12.0 FTE

2019

13.0 FTE

$ Budgeted Per Resident: $46.51 94


DEPARTMENT SUMMARIES AN N PLANNING AND ZONING GOALS A

Goal #1

Effec ve and efficient development review

Goal #2

Streamlining and moderniza on of the zoning code

Goal #3

Maintenance and upda ng as necessary of the General Plan

Goal #4

Provide excellent customer service

BUILDING SAFETY GOALS AND

Goal #1

Complete 100% of inspec on stops the next day or when requested

Goal #2

Complete single family residence (from a model plan) plan reviews within 5 business days of a complete submi al

Goal #3

Complete commercial plan reviews within 10 business days of a complete submi al

95


ND PERFORMANCE MEASURES ACTUAL ESTIMATED TARGET FY 2017 FY 2018 FY 2019

ND MEASURES Number of Development Plans reviewed (in process) during the repor ng period

3

3

3

Number of Plats reviewed (in process) during the repor ng period

5

6

5

100%

100%

100%

Number of SpeciďŹ c Plan amendments processed

2

3

2

Number of zoning code amendments ini ated

3

2

1

Number of zoning code amendments adopted

2

3

2

Number of major general plan amendments processed

0

0

0

Percentage of posi ve comment cards received

100%

100%

100%

Percent of zoning complaints inves gated within 3 5 business days of the complaint

80%

80%

90%

Percent of reviews completed within target goal (4 weeks)

ACTUAL ESTIMATED TARGET FY 2017 FY 2018 FY 2019

MEASURES Total number of building inspec on stops

4078

4026

4100

Percentage of building inspec on stops completed on me or when requested

100%

100%

100%

248

289

300

1

1

1

100%

100%

100%

Total number of permits issued - Commercial

22

16

16

Average me for commercial plan reviews (in business days)

11

12

10

97%

96%

97%

Total number of permits issued - Residen al Average me for single family residence (from a model plan) plan review (in business days) Percentage of single family residence (from a model plan) plan reviews completed within 5 business days of a complete submi al

Percentage of commercial plan reviews completed within 10 business days of a complete submi al

96


DEPARTMENT SUMMARIES AN N

Parks and Recreation GENERAL INFORMATION

Nane e Smejkal, Parks and Recrea on Director nsmejkal@sahuaritaaz.gov 520-822-8894

Mission Statement: The Parks and Recrea

on Department provides parks, natural areas, facili es, programs, and services that

preserve and enhance quality of life for the Sahuarita community.

Administration & Events (3.8 FTE, $513,050) Provide leadership, support, planning and guidance to deliver high quality parks, recrea on and community services and park facili es. Produce Town special events and coordinate interdepartmental review of special event permit applica ons from the public. Provide staff liaisons to the Parks and Recrea on Commission and Sahuarita Teen Advisory Council.

Recreation (8.6 FTE, $465,360) Operate Anamax Recrea on Center and provide a variety of classes and programs for children and adults. Coordinate sports field and picnic ramada schedules and issue permits. Work with Sahuarita Unified School District and non-government organiza ons for ac vity delivery through shared-use of facili es.

Parks & Facilities (5.0 FTE, $1,167,080) Maintain and operate five Town parks and two shared-use “school parks.” Oversee new construc on and park improvements, and ini ate sustainable and efficient maintenance prac ces. Coordinate Adopt-A-Park program volunteers.

DEPARTMENT HIGHLIGHTS

x x

x x x x x

Implemented CivicRec reserva on and registra on recrea on management so ware Entered into an Inter-governmental Agreement with Sahuarita Unified School District and provided $1.392 M for sports field construc on and light systems at new K-8 school Completed grading, infrastructure, and enclosed yard at the future park maintenance building site at Anamax Park Implemented Town-managed dog licensing program and vaccina on clinics Increased seasonal concert series to year-round format on the first Saturday of each month Improved audio/video capabili es at Anamax Recrea on Center through installa on of 65” smart TV Restructured and implemented a comprehensive fee schedule

x

x

x

x

97

Enhanced parks: ba ng cage at baseball field and LED lights at basketball court (North Santa Cruz), fence at playground and recoated skate spot (Anamax), asphalt slurry seal on pathways (Parque Los Arroyos), drainage at soccer field #1 and installed a rain gauge (Quail Creek – Veterans Municipal) Sahuarita Teen Advisory Council implemented and a ended a Pima Associa on of Governments teen leadership conference in Tucson Implemented new programs: Spring Camp, Junior Staff in Training; added sessions for Flip Gymnas cs, Taekwondo, Fit Body and Adult So ball Updated the Parks and Recrea on web pages in conjunc on with the roll out of the new Town website


ND PERFORMANCE MEASURES

PARKS AND RECREATION COSTS BY CATEGORY $2,500,000

$2,000,000

Capital Other

$1,500,000

FY 2019 $ 37,000 $ 176,900

Supplies $ 200,160 $1,000,000

Services

Personnel $1,071,830

$500,000

$0

$ 659,600

FY 2017

FY 2018

$1,720,999

FY 2019

$1,939,660

$2,145,490

FUNDING 2% 1% 1%

2019 COST CHANGES 0%

Department Budget Has Changed by:

+11%

General Fund GARS

INCREASES

QCCFD

DECREASES

RSCFD CIIF

Addi onal staff/hours: +$32,520

Other

No significant decreases

96% Park maintenance services: +111,790

Special events: +$15,510

STAFFING 2017

15.3 FTE

2018

16.3 FTE

2019

17.4 FTE

Boat and shade structure replacements: +$37,000

$ Budgeted Per Resident: $68.87 98


DEPARTMENT SUMMARIES AN N PARKS AND RECREATION GOALS A

Goal #1

Eï¬&#x20AC;ec ve provision of recrea on programs

Goal #2

Ease of customer interface and convenience

Goal #3

Maintain and enhance parks and recrea on facili es

Goal #4

Provide excellent and engaging services

Goal #5

Understand and meet public need for reserved areas

Goal #6

Op mize use of schools and other quasi-public facili es for Town programs

99


ND PERFORMANCE MEASURES ACTUAL ESTIMATED TARGET FY 2017 FY 2018 FY 2019

ND MEASURES Number of recrea on class/program registered par cipants

1,410

1,685

1,948

Number of par cipants at Sahuarita Teen Advisory Council ac vi es

298

300

500

Number of program sessions offered

149

171

177

Percentage of program sessions mee ng enrollment minimums

88%

75%

85%

13,302

11,240

12,220

Number of member accounts in CivicRec

NEW MEASURE

922

1,400

Percentage of registra on/reserva on transac ons occurring online

NEW MEASURE

32%

40%

20,789

20,500

25,000

NEW MEASURE

1,700

2,000

13

18

17

2,640

2,900

3,000

17

15

19

107/81

107/81

114/88

NEW MEASURE

6%

6%

94%

98%

100%

A endance at town-produced special events

31,621

46,109

50,000

Number of volunteer hours in support of parks and recrea on

4,898

4,361

4,500

Number of permits issued - sports fields

88

89

100

Number of permits issued - picnic ramadas

166

170

185

Number of permits issued - special events

31

30

30

Number of permits issued - Anamax Recrea on Center mee ng rooms

27

25

30

Number of hours reserved for Town use - pools

60

103

105

Number of hours reserved for Town use - indoor gyms/rooms

288

319

360

Number of drop in recrea on par cipants (i.e. aqua cs, open gym, fitness)

Number of webpage views

Number of dog licenses issued Number of park and recrea on facility improvement projects completed Labor hours invested in maintenance tasks: preventa ve, rou ne, complaint, repair Number of abated vandalism (including graffi ) incidents in parks Number of total park acres and developed park acres operated by town Number of patron-ini ated enhancements implemented Percentage of class/program surveys ra ng good or be er (3 or higher 1 - 5 scale)

100


DEPARTMENT SUMMARIES AN N

Public Works

GENERAL INFORMATION M.J. Dillard, Public Works Director/Town Engineer mdillard@sahuaritaaz.gov 520-822-7100

MISSION STATEMENT: The mission of the Public Works Department is to provide and maintain high-quality and costeffec ve infrastructure, including the transporta on network, wastewater system, drainage ways and public facili es for the Sahuarita Community.

ADMINISTRATION AND ENGINEERING (5.0 FTE, $614,920) The engineering division manages public works projects within the Town’s Capital Improvement Plan (CIP), conducts reviews of public infrastructure within development projects, and manages the permi ng of the floodplain, public Right-of-Way, and porons of development project construc on. These efforts promote planned growth that fosters high quality and diverse development, facilitates sustainable infrastructure and assures quality service. The end goal of delivering public projects and coordina on with private development is to provide and maintain high quality and cost-effec ve infrastructure including drainage ways, sewer systems, roadways, and traffic opera on systems. The engineering division also par cipates in town-wide and regional planning efforts to guide the Town’s future and facilitate development opportuni es. These efforts include coordina on with regional stakeholders and agencies, including local u lity providers, local property owners/developers, other Town departments, state and federal agencies.

FACILITIES (1.0 FTE, $503,350) The Public Works Department is responsible for effec ve management of Town owned buildings, including the up-keep and maintenance of the Town Hall Complex. Staff a ends to minor remodeling projects, repairs, pain ng, maintaining equipment, and daily maintenance of the buildings. Facili es Staff also provide high-quality, business-and resident-friendly services and hospitality func ons se ng up rooms for mee ngs and special events. The availability of well-maintained public facili es, such as the Town Hall Complex, encourages a unified community iden ty and promotes a high quality of life that makes Sahuarita a community of choice for residents and business investment.

DEPARTMENT HIGHLIGHTS

x

x x

Pima Mine Road Bridge Replacement project received the American Public Works Associa on (APWA) Na onal award for Structure of the Year, Small/Rural Community Completed the construc on of Turn Lane Improvements at three intersec ons on Rancho Sahuarita Worked with Pima County and the Transporta on Advisory Commi ee on the first two years of the Pima County property Tax Pavement Preserva on Program for local (residen al) roads, and completed the first year of pavement improvements

x

x

x x

101

Collaborated with ADOT and regional jurisdic ons on the scoping phase of the Sonoran Corridor and started work on the Purpose and Need phase Developed a 10-year pavement maintenance program for arterial and collector roadways, and completed the fall 2017 and spring 2018 pavement maintenance work Developed a 10-year traffic signal maintenance and replacement program Completed a pilot pavement project to use “Green Asphalt” in Sahuarita, to see if we can get be er performance for less cost


ND PERFORMANCE MEASURES

PUBLIC WORKS COSTS BY CATEGORY $1,200,000 $1,000,000

Capital

$800,000

Other

FY 2019 $ 0 $ 10,050

Supplies $ 55,430

$600,000

Services

$400,000

$508,520

Personnel $544,270 $200,000 $0

FY 2017

$977,813

FY 2018

$1,008,570

FUNDING 0%

0%

0%

FY 2019

$1,118,270

2019 COST CHANGES

0%

Department Budget Has Changed by:

+11%

General Fund GARS

INCREASES

QCCFD RSCFD CIIF

New staff and staffing allocaon changes: +$127,570

Other

DECREASES Consul ng and professional services: -$26,000

100% Water heater and HVAC parts: +$17,300

STAFFING 2017

4.5 FTE

2018

4.5 FTE

2019

6.0 FTE

$ Budgeted Per Resident: $35.89 102


DEPARTMENT SUMMARIES AN N

PUBLIC WORKS GOALS AND M

Work with development review applica ons toward posi ve outcomes, assuring open communica on and comple ng plan review promptly

Goal #1

Goal #2

Provide eï¬&#x20AC;ec ve management of town-owned buildings

103


ND PERFORMANCE MEASURES ACTUAL ESTIMATED TARGET FY 2017 FY 2018 FY 2019

MEASURES Number of private improvement agreement permits issued

27

40

50

Development plans reviewedâ&#x20AC;&#x201C; percentage completed within target (4 weeks)

4

2

3

Development plans reviewedâ&#x20AC;&#x201C; percentage completed in 2 weeks or less

3

2

3

Number of right of way use permits issued

34

52

70

Number of improvement plans reviewed

26

15

15

Percentage of Annual Inspec ons Passed

100%

100%

100%

-12%

-6%

-12%

Percent change in energy costs since 2015 (1st full year a er energy audit) Note: 2018 temperatures higher than usual for a longer period of me

104


DEPARTMENT SUMMARIES AN N

Police Department GENERAL INFORMATION

John Noland, Police Chief jnoland@sahuaritaaz.gov 520-344-7000

MISSION STATEMENT: Making Sahuarita a safe place to live, work, and play. POLICE DEPARTMENT (58.0 FTE, $8,182,640) The Sahuarita Police Department is comprised of two divisions. Each division has separate bureaus and each bureau has a number of employees assigned to them. These bureaus are some mes separated or categorized in to teams, squads, or sec ons. The Field Services Division consists of the Patrol Bureau and a Traffic and SRO Bureau. The patrol bureau has six squads assigned to different shi s. Each squad has a sergeant and a number of officers. Patrol provides 24/7 response to crimes in progress and other policing incidents needing to be addressed by uniformed officers. The Traffic and SRO Bureau consists of Motorcycle/Traffic Enforcement Officers and School Resource Officers (SROs). Motorcycle Officers are assigned to patrol teams, but have the primary du es of enforcing traffic laws and inves ga ng traffic collisions. SROs work primarily at each of Town’s high schools. SROs address policing issues and youth educa onal opportuni es within the Sahuarita Unified School District. The Special Services Division consists of the Inves ga ons Bureau, Office of Professional Standards Bureau, and the Records Bureau. The Inves ga ons Bureau is responsible for conduc ng inves ga ons outside the regular capabili es of patrol officers. This bureau includes the Property & Evidence Sec on that has Crime Scene Specialists (CSS). CSS are responsible for the care and custody of all evidence and property taken in by the police department and crime scene processing. The Office of Professional Standards (OPS) manages training for all employees, maintains officer training records, and records associated with equipment and fleet vehicles. Addi onally, the OPS conducts personnel inves ga ons associated to ci zen complaints. The Records Bureau manages and retains all police reports, assures compliance with state and federal laws associated with police reports and repor ng prac ces, and handles public requests at the police department’s front counter and requests by phone.

DEPARTMENT HIGHLIGHTS

xThe SPD ini ated or advanced mul ple IT projects such as Digital Training Bulle ns and the use of LEA so ware to track and document personnel training department wide. The use of Nixle to advance Social Media outreach was implemented internally and is scheduled to move to public groups this coming year to help be er communicate with the public

xSPD projects included advancement of the SPD UAV program, training with so ware to help accurately document crime scenes through advanced aerial photography. SPD UAVs where used to document mul ple crimes scenes during the last year and also helped the SPD search for at risk missing persons

xThe SPD fully implemented a Body Worn Camera (BWC) program in xThe SPD completed approximately three thousand hours of adthe patrol bureau. Patrol officers now “wear” and u lize a BWC while vanced officer training that included advanced inves ga on, supervi- on patrol and are able to video and audibly record inves ga ons and sion, leadership, community policing, and officer safety training enforcement contacts with the public xThe Department implemented a SRO posi on at Walden Grove HS via a grant and a Supervisor posi on in the records bureau. Addi onally, the Town Council funded an Animal Control /Community Services Officer posi on to address animal control educa on, safety, and enforcement at the local level.

105


ND PERFORMANCE MEASURES

POLICE DEPARTMENT COSTS BY CATEGORY $9,000,000 $8,000,000

$7,000,000

Capital

$6,000,000

Other

$5,000,000

FY 2019 $ 616,000 $ 113,890

Supplies $ 336,200

$4,000,000

Services

$3,000,000

$ 762,680

Personnel $6,353,870

$2,000,000 $1,000,000

$0

FY 2017

$7,234,451

FY 2018

$8,120,010

FUNDING

$8,182,640

2019 COST CHANGES

0%

0%

FY 2019

4%

Department Budget Has Changed by:

12%

+1%

General Fund GARS QCCFD RSCFD

INCREASES

DECREASES

Addi onal staff: +$254,550

Staff replacements/changes: -$282,510

Medical insurance: +$80,360

Grant-funded equipment/ supplies: -$111,000

CIIF 84%

Other

Vehicles and facility modifica ons: +$127,900

STAFFING 2017

53.0 FTE

2018

55.0 FTE

2019

58.0 FTE

Over me: +$23,030

$ Budgeted Per Resident: $262.65 106


DEPARTMENT SUMMARIES AN N POLICE DEPARTMENT GOALS AN

Goal #1

Implement public access/subscribership to NIXLE (social media) to assist with Community Policing, Emergency Management, and clear and mely communica on with the public

Goal #2

Fill both School Resource Officer (SRO) posi ons and develop and ini ate a plan for a full service SRO Program

Goal #3

Con nue DUI and Traffic educa on and enforcement

Goal #4

U lize SPD Training plan along with mentoring to further career development and succession planning

Goal #5

Fully develop Animal Control/Community Services Officer Program

Goal #6

Con nue Emergency Disaster response capabili es through training & exercises and implementa on of Mobile Command Post

Goal #7

Maintain or decrease response mes for top priority calls

107


ND PERFORMANCE MEASURES ACTUAL ESTIMATED TARGET FY 2017 FY 2018 FY 2019

D MEASURES Ini ate a roll-out process in coordina on with SUSD to educate public and establish public user group(s) to NIXLE

NEW

NEW

100%

Track number of NIXLE no fica ons

NEW

NEW

100%

Track number of Facebook and other social media no fica ons/posts

NEW

NEW

100%

Track all school calls for service to include those involving weapons or arrests

NEW

NEW

100%

Track all SRO training/ instruc onal sessions performed by SROs

NEW

NEW

100%

Number of special opera ons conducted through DUI AZGOHS grant

NEW

NEW

8

Number of accidents where seat belts were not fastened

NEW

NEW

TBD

Number of personal injury accidents

NEW

NEW

TBD

Number of property damage only accidents

NEW

NEW

TBD

Number of DUI Offenses

NEW

NEW

TBD

Number of educa onal/training efforts by officers, traffic officers, and SROs

NEW

NEW

4

Review Training Plan to ensure it meets mandatory, essen al, and desirable training courses

NEW

NEW

100%

Develop and iden fy mentorship program par cipants. Provide training where possible

NEW

NEW

100%

Track number of public educa on efforts

NEW

NEW

100%

Track number of animals taken into protec ve custody

NEW

NEW

100%

Track number of calls for service related to Animal Control issues/incidents

NEW

NEW

100%

Track number of animals turned over to Humane Society or other similar contracted service

NEW

NEW

100%

Track number of animals returned to owners

NEW

NEW

100%

Track number of viola ons

NEW

NEW

100%

Number of Emergency/Disaster training exercises

NEW

NEW

2

Number of incidents and/or ac vi es the Command Post used for

NEW

NEW

4

Comple on of new mobile Command Post

NEW

NEW

75%

Number of training courses a ended by SPD personnel

NEW

NEW

8

Respond to Priority 1 calls in less than 5 minutes

NEW

NEW

TBD

Respond to Priority 2 calls in less than 8 minutes

NEW

NEW

TBD

108


DEPARTMENT SUMMARIES AN N

Municipal Court

GENERAL INFORMATION Honorable Maria Avilez, Town Magistrate 520-344-7150

MISSION STATEMENT: The mission of the Sahuarita Municipal Court is to uphold the law and administer jus

ce fairly and effi-

ciently, trea ng all who come to the Court with dignity and respect.

MUNICIPAL COURT (6.0 FTE, $617,020) The Sahuarita Municipal Court is responsible for the processing and adjudica on of all cases filed in the court, including the trial or other disposi on of criminal misdemeanors, criminal traffic viola ons, civil traffic viola ons, and Town code and ordinance viola ons commi ed within the Town’s boundaries. The court is further responsible for collec on and processing of fines, surcharges, res tu on and other fees. The court issues and processes protec ve orders including injunc ons against harassment, injunc ons against workplace harassment, and orders of protec on. The court also provides other services, including processing new passport applicaons, issuing marriage licenses, and limited notary services. Services rendered by the court are governed by rules set by the Arizona Supreme Court and guided by statutes enacted by the Arizona Legislature.

DEPARTMENT HIGHLIGHTS

xManagement con nues to work with staff on new and con nued xThe court has enhanced security measures by u lizing an outside court processes. A variety of projects have been delegated to court vendor: Vet-Sec, which has eliminated the gap in coverage and has staff to con nue to bring new case management system AJACS up to allow the court to have security five days a week, 8 a.m. – 5 p.m. date. xThe court has entered into a new collabora on with CENPATICO xSahuarita Municipal Court (SMC), in conjunc on with the Sahuarita and Pima County A orney’s Office Vic m Witness Advocates by P.D. has successfully implemented ECita ons. coordina ng the physical presence of a representa ve to support and provide input on behalf of the vic m(s) or defendant(s). xJudge Avilez con nues involvement in other court ac vi es. She CENPATICO assists with mental health and/or behavioral diversions serves as the Vice Pres. of the Arizona Magistrates Associa on. She and assessments. The court also con nues to be involved in the was also appointed in 2006 by the Chief Jus ce of the AZ Supreme RMVTC (Reginal Municipali es Veteran’s Treatment Court) as an Court as a Commissioner on the Commission for Minori es and con- op on for Veterans. nues to serve as a sub-commi ee par cipant in the development of the Fifth Arizona Statewide Report Card, which assesses xThe court provides fair and objec ve resolu on of disputes and overrepresenta on of minority youth in the juvenile system, and she enforcement par cipates in the Regional Municipali es Veterans Treatment Court. • The court has automated email and text message reminders to assist court users when they need to appear in court or make a payxJudge Avilez con nues to par cipate in local schools’ ac vi es: guest speaker at the Sahuarita Middle school’s Career Day and reads ment, to avoid a delinquency no ce. for the Elementary School Love of Reading week. xThe SMC (Sahuarita Municipal Court) con nues to be used as a model court when policies and procedures are needed at other courts.

109


ND PERFORMANCE MEASURES

MUNICIPAL COURT COSTS BY CATEGORY $700,000 $600,000

Capital

$500,000

Other

$400,000

FY 2019 $ 0 $ 25,150

Supplies $ 21,990

$300,000

Services

$200,000

$ 80,050

Personnel $489,830

$100,000

$0

FY 2017

$562,774

FY 2018

FY 2019

$602,080

$617,020

FUNDING

2019 COST CHANGES

0%0% 0%

0%

Department Budget Has Changed by:

+2%

General Fund GARS

INCREASES

QCCFD RSCFD

DECREASES

CIIF No significant increases

Other

No significant decreases

100%

STAFFING 2017

7.0 FTE

2018

6.0 FTE

2019

6.0 FTE

$ Budgeted Per Resident: $19.81 110


DEPARTMENT SUMMARIES AN N

MUNICIPAL COURT GOALS AND

Provide be er customer service to all li gants entering the courthouse by way of choices in payment method (phone/web), marriage license and passport services

Goal #1

Con nue to execute cases in a mely manner as required to use resources eďŹ&#x20AC;ec vely in delivering desired outcomes

Goal #2

*Please note that, un l the AOC corrects glitches and creates case reports in the Court's new case management system, you will not see numbers for the DUI Clearance Rate, nor the percentage of adjudicated cases.

Goal #3

Con nue to provide quality safety measures for all li gants that enter the courthouse

111


ND PERFORMANCE MEASURES

ACTUAL ESTIMATED TARGET FY 2017 FY 2018 FY 2019

MEASURES IVR- Payments made over the phone

327

300

300

WEB- Payments made on the court's main webpage of the Town's website

300

300

300

Number of marriage licenses issued

44

50

50

Number of passports issued

500

500

500

Court Visitors scanned/walked through magnetometer

17,018

17,000

17,000

Number of items scanned through the X-Ray machine

12,296

12,000

12,000

275

275

275

Percentage of cases adjudicated (cases closed vs. cases opened) criminal misdemeanors/civil and criminal traï¬&#x192;c/protec ve orders*

DUI clearance rate*

Number of items of contraband detected while entering the courthouse

112


DEPARTMENT SUMMARIES AN N

Streets

GENERAL INFORMATION M.J. Dillard, Public Works Director/Town Engineer mdillard@sahuaritaaz.gov 520-344-7100

MISSON STATEMENT: The mission of the Streets Department is to provide quality maintenance and opera

ons of roadways

and infrastructure throughout the Town of Sahuarita.

STREETS (10.5 FTE, $3,418,950) The Public Works, Streets Department is responsible for effec ve management of Town-owned infrastructure and public Right-of-Way, specifically the bridges, drainage structures, street lights, traffic signs and signals, bicycle and pedestrian facili es, and landscaping within the public Right-of-Way, to ensure the facili es fulfill the func on for which they were designs. Well maintained public transporta on and drainage facili es promote and enhance the quality of life throughout our community. The Streets Department also plays a key role with the engineering division to ensure that recurring opera on & maintenance costs are considered and accounted for when planning for capital projects. As part of the ongoing effort toward con nuous improvement in its annual maintenance costs, the Streets Department maintains an ac ve Town-wide volunteer program and Inmate Labor Program.

DEPARTMENT HIGHLIGHTS

x

x

x

Volunteers assisted the Department with “Adopt-A-Roadway”, “Adopt-A-wash”, “Adopt-An-Underpass” and other vital programs. Volunteers play a key role in enhancing the quality of life for the community, while helping the Department achieve its goal of organiza onal effec veness. The Department con nues to u lize the Department of Correcons Work Release Program for removal of trash and weeds and general landscaping in the Right-of-Way areas. This program helps the Department achieve its goal of effec ve maintenance, and the Town helps the inmates and the community by providing training and job experience that the inmates can use upon their release. As part of the on-going goal to provide effec ve opera on of Town-owned infrastructure, the Department con nues the development of an asset management system for tracking inspec on, repair and maintenance ac vi es.

x

x x

113

The Department con nues to enhance civic engagement through online repor ng of poten al issues, ques ons, or concerns. Ci zen feedback is essen al to the Department’s opera ons. The “Request Tracker” link on the Town’s website and the “YourGov” smart phone applica on allow ci zens to report concerns directly to the Public Works Department. Public Works has developed a 10-year pavement maintenance plan for arterials and collectors. The department has completed the crack seal of locals (residen al) roads in advance of the pavement treatments completed by the Pima County property tax Pavement Program.


ND PERFORMANCE MEASURES

STREETS COSTS BY CATEGORY $3,500,000 $3,000,000

Capital

$2,500,000

Other

$2,000,000

FY 2019 $ 25,000 $ 322,480

Supplies $ 155,680

$1,500,000

Services

$1,000,000

$2,191,050

Personnel $ 724,740

$500,000

$0

FY 2017

$2,250,919

FY 2018

$3,086,190

FUNDING

FY 2019

$3,418,950

2019 COST CHANGES

0% 0% 1%

Department Budget Has Changed by:

+11%

General Fund GARS

INCREASES

QCCFD

DECREASES

RSCFD CIIF HURF 99%

STAFFING 2017

9.7 FTE

2018

10.7 FTE

2019

10.5 FTE

Pavement management program: +$654,920

Street maintenance: -$265,000

ROW and traï¬&#x192;c signal repair and maintenance: +$81,460

Payroll alloca on and other changes: -$97,000

Indirect cost alloca on: +$27,260

PAG youth art program: -$25,000

Purchase used street sweeper: Street maintenance supplies: +$25,000 -$21,000

$ Budgeted Per Resident: $109.72 114


DEPARTMENT SUMMARIES AN N

STREETS GOALS AND MEAS

Goal #1

Establish, maintain and update preventa ve maintenance plans for Town Infrastructure assets

Goal #2

Provide events and Programs that Foster Community Engagement and Enhance the Lives of Residents

115


ND PERFORMANCE MEASURES ACTUAL ESTIMATED TARGET FY 2017 FY 2018 FY 2019

SURES Total hours of inmate labor

Average number of days to repair a pothole a er no fica on Percent of public roadways that are swept at least four mes per year Average number of days to repair a traffic signal outage

21,000

25,875

26,000

1

1

1

100%

100%

100%

1

1

1

41%

52%

Percentage of pavement in good or be er condi on per the Paser Index Total number of volunteers par cipa ng in Adopt-a-Road, Adopt-a-Wash, or Adopt-an-Underpass Events (removed Bufflegrass event)

531

632

600

Total number of volunteer hours contributed to Adopt-a-Road, Adopt-a-Wash, or Adopt-an-

581

887

700

Total number of trash bags collected during Adopt-a-Road, Adopt-a-Wash, or Adopt-an-Underpass

487

575

550

0

220

220

Total number of Buffelgrass bag collected (more effec ve to spray than pull)

116


DEPARTMENT SUMMARIES AN N

Wastewater

GENERAL INFORMATION M.J. Dillard, Public Works Director/Town Engineer mdillard@sahuaritaaz.gov 520-344-7100

MISSION STATEMENT: The Wastewater Department’s mission is to protect public health, safety and the environment by providing quality service, environmental stewardship, and preserving renewable resources.

WASTEWATER DEPARTMENT (6.5 FTE, $1,592,670) The Public Works, Wastewater Department overseeing all aspects of providing quality and efficient wastewater collec on and treatment. This effort includes assuring compliance with all regula ons, providing, opera on and maintenance for the system, and responding to customer service requests related to the sewer facili es. Responsibili es also include facilita ng new development connec vity to the system, planning and policy development for pursuing future delivery and treatment opportuni es, overseeing the design and construc on of new infrastructure, and assuring new development provide the appropriate infrastructure for service.

DEPARTMENT HIGHLIGHTS

x

x

x x

x

Treated 293 million gallons of wastewater, and recharged 288 million gallons of treated effluent back into the aquifer. Con nued the preventa ve maintenance program on the 50 plus miles of distribu on lines and over 1,200 manholes within the system. Work includes camera inspecon, high pressure cleaning, and determining if there are any deficiencies that require our a en on Installed the new wastewater modular building, and moved staff in Organized and lead tours of the treatment facility to help educate the community about wastewater treatment and reclama on. Par cipated in the County-wide Greasecycle event that collected a Town record breaking amount of 1,400 gallons (1026 pounds) of grease. Not only will we not have to treat this grease in our facility, but the collected grease will now be converted into biodiesel.

x

Currently working on permi ng two fully constructed recharge basins so we can expand the amount of A+ effluent we can return to the aquifer x Inves ga ng opportuni es for dewatering treatment op ons to reduce costs of opera ng the system x Completed the annual update of the Wastewater Capacity report; this report provides an internal audit of the wastewater treatment plant capacity measured against historic trends and an cipated growth; results of this analysis will enable the Town to proac vely adjust its planning, design, permi ng and growth

117


ND PERFORMANCE MEASURES

WASTEWATER COSTS BY CATEGORY $1,800,000 $1,600,000

$1,400,000

Capital

$1,200,000

Other

$1,000,000

FY 2019 $ 0 $281,780

Supplies $122,360

$800,000

Services

$600,000

$635,160

Personnel $553,370

$400,000 $200,000

$0

FY 2017

$1,370,851

FY 2018

FY 2019

$1,619,680

$1,592,670

FUNDING 0%

2019 COST CHANGES

0% 0% 0%

Department Budget Has Changed by:

-2%

General Fund GARS

INCREASES

QCCFD RSCFD CIIF

DECREASES

Construc on services-manhole Staï¬&#x192;ng alloca on changes: adjustments: +$16,000 -$20,350

Wastewater 100%

STAFFING 2017

6.3 FTE

2018

6.3 FTE

2019

6.5 FTE

SCADA so ware support: +$16,140

Indirect cost alloca on: -$56,630

Regulatory permit consultant: +$20,000

Greasecycle event adver sing: -$15,500

$ Budgeted Per Customer: $273.28 118


DEPARTMENT SUMMARIES AN N

WASTEWATER GOALS AND MEAS

Goal #1

Support the Sahuarita Unified School District and regional higher educa on ins tu ons

Goal #2

Maintain and Operate the wastewater plant and collec on system in an integral and efficient manner

119


ND PERFORMANCE MEASURES

ACTUAL FY 2017

ESTIMATED FY 2018

TARGET FY 2019

Number of volunteer hours contributed to SUSD Water Fes val

4

22

20

Number of volunteers hours suppor ng Career day

0

20

20

Number of gallons of waste treated

280,000,000

292,783,376

300,000,000

Number of gallons of treated A+ eï¬&#x201E;uent recharged into the aquifer

275,000,000

287,532,086

294,000,000

Linear feet of sewer distribu on lines videoed and maintained under the preventa ve program

52,800

52,800

52,800

Number of gallons of grease recycled and kept out of the treatment plant through our greasecycle program

60

1037

1050

SURES

120


DEPARTMENT SUMMARIES AN N

Non-Departmental GENERAL INFORMATION

(0.0 FTE, $453,920) The Non-Departmental sec on of the budget accounts for opera ng costs and items not specifically iden fiable to any other Town Department. These costs provide for animal control services, contracts for some social services, and costs associated with the Town’s general motor pool.

NON-DEPARTMENTAL COSTS BY CATEGORY $600,000

Capital

FY 2019 $270,000

Other

$106,140

Supplies

$ 2,500

Services

$ 75,280

$500,000

$400,000 $300,000

$200,000

Personnel $ $100,000

$0

FY 2017

$544,256

FY 2018

FY 2019

$428,230

$453,920

FUNDING General Fund GARS QCCFD 41% 59%

RSCFD CIIF Other

0%

121

0


ND PERFORMANCE MEASURES

NON-DEPARTMENTAL COST CHANGES AND STAFFING

2019 COST CHANGES Department Budget Has Changed by:

+6% INCREASES AZ Dept of Revenue Fees: +$17,000

DECREASES No significant decreases

Veteran’s Court Program: +$12,000

STAFFING 2017

No FTE

2018

No FTE

2019

No FTE

$ Budgeted Per Resident: $14.59 122


DEPARTMENT HISTORY OF O Summary of Operating Expenditures by Department and Fund

DEPT

MAYOR & COUNCIL

TOWN MANAGER

ECONOMIC DEVELOPMENT

LAW

TOWN CLERK

2017 Actual Amount

Categories

2018 Budget Adopted Amended

2019 Budget Amount

Estimated Actual

General Fund GARS QCCFD RSCFD CIIF Other

$

109,752 -

$

137,550 $ -

137,550 $ -

137,470 -

$

169,690 -

Department Total

$

109,752

$

137,550 $

137,550 $

137,470

$

169,690

General Fund GARS QCCFD RSCFD CIIF Other

$

505,501 -

$

540,420 $ -

540,420 $ -

529,020 -

$

576,820 -

Department Total

$

505,501

$

540,420 $

540,420 $

529,020

$

576,820

General Fund GARS QCCFD RSCFD CIIF Other

$

228,494 22,053 -

$

245,860 $ 10,500 -

245,860 $ 10,500 -

232,980 17,500 -

$

266,530 8,000 -

Department Total

$

250,547

$

256,360 $

256,360 $

250,480

$

274,530

General Fund GARS QCCFD RSCFD CIIF Other

$

641,872 -

$

698,420 $ -

698,420 $ -

657,890 -

$

701,180 -

Department Total

$

641,872

$

698,420 $

698,420 $

657,890

$

701,180

General Fund GARS QCCFD RSCFD CIIF Other

$

496,464 -

$

578,880 $ -

578,880 $ -

485,850 -

$

652,980 -

Department Total

$

496,464

$

578,880 $

578,880 $

485,850

$

652,980

123


OPERATING EXPENDITURES Summary of Operating Expenditures by Department and Fund

DEPT

FINANCE

HUMAN RESOURCES

PLANNING & BUILDING

PARKS & RECREATION

PUBLIC WORKS

2017 Actual Amount

Categories

2018 Budget Adopted Amended

2019 Budget Amount

Estimated Actual

General Fund GARS QCCFD RSCFD CIIF Wastewater

$ 1,270,644 133 101 174,930 364,908

$ 1,423,180 $ 1,423,180 $ 1,352,700 800 800 800 800 800 800 190,000 190,000 190,000 505,430 505,430 446,860

$

1,446,600 800 800 125,000 485,970

Department Total

$ 1,810,716

$ 2,120,210 $ 2,120,210 $ 1,991,160

$

2,059,170

General Fund GARS QCCFD RSCFD CIIF Other

$

236,500 -

$

279,940 $ -

279,940 $ -

247,300 -

$

373,730 -

Department Total

$

236,500

$

279,940 $

279,940 $

247,300

$

373,730

General Fund GARS QCCFD RSCFD CIIF Other

$ 1,209,030 -

$ 1,312,040 $ 1,312,040 $ 1,295,670 45,000 45,000 45,000 -

$

1,449,070 -

Department Total

$ 1,209,030

$ 1,357,040 $ 1,357,040 $ 1,340,670

$

1,449,070

General Fund GARS QCCFD RSCFD CIIF Other

$ 1,614,975 13,975 28,449 63,600 -

$ 1,897,330 $ 1,897,330 $ 1,795,500 15,000 15,000 12,000 27,330 27,330 29,990 -

$

2,056,600 22,710 41,180 25,000 -

Department Total

$ 1,720,999

$ 1,939,660 $ 1,939,660 $ 1,837,490

$

2,145,490

General Fund GARS QCCFD RSCFD CIIF Other

$

864,667 113,146 -

$ 1,008,570 $ 1,008,570 $ 1,045,120 -

$

1,118,270 -

Department Total

$

977,813

$ 1,008,570 $ 1,008,570 $ 1,045,120

$

1,118,270

124


DEPARTMENT HISTORY OF O Summary of Operating Expenditures by Department and Fund

DEPT

POLICE

MUNICIPAL COURT

STREETS

Categories

Budget Adopted Amended

2019 Budget Amount

Estimated Actual

$ 6,423,746 485,695 325,010 -

$ 7,026,530 $ 7,026,530 $ 6,596,370 760,380 783,660 433,270 333,100 333,100 399,000 -

$

6,921,930 960,710 300,000 -

Department Total

$ 7,234,451

$ 8,120,010 $ 8,143,290 $ 7,428,640

$

8,182,640

General Fund GARS QCCFD RSCFD CIIF Other

$

562,774 -

$

602,080 $ -

602,080 $ -

574,180 -

$

617,020 -

Department Total

$

562,774

$

602,080 $

602,080 $

574,180

$

617,020

General Fund GARS QCCFD RSCFD CIIF HURF

$

10,107 20,681 298,109 1,922,022

$

$ $ 16,510 16,640 16,510 15,600 15,600 16,640 250,000 250,000 250,000 2,804,080 2,804,080 2,570,240

$

12,360 19,110 3,387,480

$ 2,250,919

$ 3,086,190 $ 3,086,190 $ 2,853,520

$

3,418,950

$

$

$ $ 1,619,680 1,619,680 1,578,950

$

1,592,670

$ 1,370,851

$ 1,619,680 $ 1,619,680 $ 1,578,950

$

1,592,670

General Fund GARS QCCFD RSCFD CIIF Other

$

222,882 1,300 320,074 -

$

154,420 $ 2,770 1,040 270,000 -

154,420 $ 2,770 1,040 270,000 -

181,750 270,000 -

$

183,920 270,000 -

Department Total

$

544,256

$

428,230 $

428,230 $

451,750

$

453,920

General Fund GARS QCCFD RSCFD CIIF Wastewater Department Total

NON DEPARTMENT

2018

General Fund GARS QCCFD RSCFD CIIF Other

Department Total

WASTEWATER UTILITY

2017 Actual Amount

1,370,851

125


OPERATING EXPENDITURES Summary of Operating Expenditures by Department and Category

DEPT

MAYOR & COUNCIL

Categories Personnel Services Supplies Other Capital Department Total

TOWN MANAGER

Personnel Services Supplies Other Capital Department Total

ECONOMIC DEVELOPMENT

Personnel Services Supplies Other Capital Department Total

LAW

Personnel Services Supplies Other Capital Department Total

TOWN CLERK

2017 Actual Amount

Personnel Services Supplies Other Capital Department Total

2018 Budget Adopted Amended

2019 Budget Amount

Estimated Actual

$

59,483 3,263 47,006 -

$

59,200 $ 10,200 5,300 62,850 -

59,200 $ 10,200 6,150 62,000 -

58,340 11,700 6,140 61,290 -

$

76,990 500 6,250 85,950 -

$

109,752

$

137,550 $

137,550 $

137,470

$

169,690

$

477,905 4,162 10,719 12,715 -

$

505,980 $ 9,160 9,930 15,350 -

505,980 $ 9,160 9,930 15,350 -

496,280 8,880 9,610 14,250 -

$

525,440 20,600 15,110 15,670 -

$

505,501

$

540,420 $

540,420 $

529,020

$

576,820

$

177,471 51,441 6,981 14,654 -

$

207,460 $ 31,000 5,100 12,800 -

207,460 $ 30,200 5,900 12,800 -

201,930 19,500 11,850 17,200 -

$

227,730 10,500 7,000 29,300 -

$

250,547

$

256,360 $

256,360 $

250,480

$

274,530

$

582,363 26,153 20,238 13,118 -

$

622,120 $ 43,250 16,700 16,350 -

622,120 $ 43,250 16,700 16,350 -

593,240 38,250 16,150 10,250 -

$

633,480 38,250 16,200 13,250 -

$

641,872

$

698,420 $

698,420 $

657,890

$

701,180

$

333,907 134,893 17,261 10,403 -

$

370,540 $ 161,810 17,350 29,180 -

370,540 $ 161,810 17,350 29,180 -

307,880 139,630 18,260 20,080 -

$

363,970 215,490 43,140 30,380 -

$

496,464

$

578,880 $

578,880 $

485,850

$

652,980

126


DEPARTMENT HISTORY OF O Summary of Operating Expenditures by Department and Category

DEPT

FINANCE

Categories Personnel Services Supplies Other Capital Department Total

HUMAN RESOURCES

Personnel Services Supplies Other Capital Department Total

PLANNING & BUILDING

Personnel Services Supplies Other Capital Department Total

PARKS & RECREATION

Personnel Services Supplies Other Capital Department Total

PUBLIC WORKS

2017 Actual Amount

Personnel Services Supplies Other Capital Department Total

$

822,588 394,969 72,302 345,927 174,930

2018 Budget Adopted Amended

836,120 431,710 62,470 470,860 190,000

$

931,790 445,110 69,230 488,040 125,000

$ 1,810,716

$ 2,120,210 $ 2,120,210 $ 1,991,160

$

2,059,170

$

215,730 10,341 4,130 6,299 -

$

232,240 $ 13,370 17,950 16,380 -

232,240 $ 13,370 17,950 16,380 -

215,610 12,400 9,450 9,840 -

$

306,330 13,370 9,650 14,380 30,000

$

236,500

$

279,940 $

279,940 $

247,300

$

373,730

$ 1,139,240 35,037 22,080 12,673 -

$ 1,196,120 $ 1,196,120 $ 1,184,990 83,060 83,060 76,230 15,380 15,380 15,310 17,480 17,480 19,140 45,000 45,000 45,000

$

1,295,840 86,880 22,680 19,780 23,890

$ 1,209,030

$ 1,357,040 $ 1,357,040 $ 1,340,670

$

1,449,070

$

$ 1,028,750 $ 1,028,750 $ 563,030 547,730 195,590 199,840 152,290 152,290 11,050

993,510 537,240 167,450 139,290 -

$

1,071,830 659,600 200,160 176,900 37,000

$ 1,720,999

$ 1,939,660 $ 1,939,660 $ 1,837,490

$

2,145,490

$

421,405 409,519 27,804 5,939 113,146

$

422,880 578,120 35,150 8,970 -

$

544,270 508,520 55,430 10,050 -

$

977,813

$ 1,008,570 $ 1,008,570 $ 1,045,120

$

1,118,270

926,109 518,031 120,721 107,144 48,994

127

$

865,390 $ 493,480 68,680 502,660 190,000

2019 Budget Amount

Estimated Actual

416,700 $ 540,400 37,900 13,570 -

865,390 $ 495,180 66,980 502,660 190,000

416,700 $ 540,400 37,900 13,570 -


OPERATING EXPENDITURES Summary of Operating Expenditures by Department and Category

DEPT

POLICE

Categories Personnel Services Supplies Other Capital Department Total

MUNICIPAL COURT

Personnel Services Supplies Other Capital Department Total

STREETS

Personnel Services Supplies Other Capital Department Total

WASTEWATER UTILITY

Personnel Services Supplies Other Capital Department Total

NON DEPARTMENT

2017 Actual Amount

Personnel Services Supplies Other Capital Department Total

2018 Budget Adopted Amended

2019 Budget Amount

Estimated Actual

$ 5,420,623 548,209 291,242 486,064 488,313

$ 6,278,440 $ 6,278,440 $ 5,858,360 768,380 768,380 674,990 470,700 470,700 274,640 114,390 114,390 161,650 488,100 511,380 459,000

$

6,353,870 762,680 336,200 113,890 616,000

$ 7,234,451

$ 8,120,010 $ 8,143,290 $ 7,428,640

$

8,182,640

$

465,825 57,915 19,467 19,567 -

$

474,240 $ 81,650 21,340 24,850 -

474,240 $ 81,650 21,340 24,850 -

458,100 75,990 19,340 20,750 -

$

489,830 80,050 21,990 25,150 -

$

562,774

$

602,080 $

602,080 $

574,180

$

617,020

$

627,982 1,216,770 132,956 213,699 59,512

$

821,690 $ 821,690 $ 682,060 1,763,900 1,763,900 1,692,750 204,930 197,230 177,450 295,670 293,560 295,670 7,700 7,700

$

724,740 2,191,050 155,680 322,480 25,000

$ 2,250,919

$ 3,086,190 $ 3,086,190 $ 2,853,520

$

3,418,950

$

$

607,530 585,280 116,360 261,870 7,910

$

553,370 635,160 122,360 281,780 -

$ 1,370,851

$ 1,619,680 $ 1,619,680 $ 1,578,950

$

1,592,670

$

134,013 2,101 88,068 320,074

$

- $ 58,250 2,500 97,480 270,000

- $ 58,250 2,500 97,480 270,000

74,870 2,500 104,380 270,000

$

75,280 2,500 106,140 270,000

$

544,256

$

428,230 $

428,230 $

451,750

$

453,920

527,852 453,218 77,458 304,878 7,445

128

572,610 $ 577,030 115,960 354,080 -

579,210 $ 577,030 115,960 339,570 7,910


STAFFING G Department Staffing Levels Summary Full-Time Equivalent (FTE)

DEPARTMENT Mayor and Council Town Manager Economic Development Law Town Clerk Finance Human Resources Planning and Building Parks and Recreation Public Works Police Municipal Court Streets Wastewater TOTALS

Number of Personnel

DEPARTMENT Mayor and Council Town Manager Economic Development Law Town Clerk Finance Human Resources Planning and Building Parks and Recreation Public Works* Police Municipal Court Streets Wastewater TOTALS *

FY 2017 Adopted Amended FTE 4.0 2.0 5.0 5.0 11.0 2.0 12.0 15.3 4.5 53.0 7.0 9.7 6.3 136.7

FTE 4.0 2.0 5.0 5.0 11.0 2.0 12.0 15.3 4.5 53.0 7.0 9.7 6.3 136.7

FY 2018 Change Adopted FTE 1.0 2.0 (1.0) 1.0 3.0

FTE 4.0 2.0 5.0 5.0 11.0 2.0 12.0 16.3 4.5 55.0 6.0 10.7 6.3 139.7

FY 2019 Change Adopted FTE 1.0 1.0 1.1 1.5 3.0 (0.2) 0.2 7.6

FTE 4.0 2.0 5.0 5.0 11.0 3.0 13.0 17.4 6.0 58.0 6.0 10.5 6.5 147.4

FY 2017 Adopted Amended

FY 2018 Change Adopted

FY 2019 Change Adopted

HEAD COUNT

HEAD COUNT

HEAD COUNT

HEAD COUNT

HEAD COUNT

HEAD COUNT

7 4 2 5 5 11 2 12 20 21 53 7 * * 149

7 4 2 5 5 11 2 12 20 21 53 7 * * 149

0 0 0 0 0 0 0 0 6 1 2 -1 * * 8

7 4 2 5 5 11 2 12 26 22 55 6 * * 157

0 0 0 0 0 0 1 1 3 1 3 0 * * 9

7 4 2 5 5 11 3 13 29 23 58 6 * * 166

For head count, Streets and Wastewater employees were included in Public Works.

129


G LEVELS Full-time Equivalent Town Government Employees by Function Last 10 Years Full-time Equivalent Employees 2012 2013 2014 2015 2016 2017

2010

2011

-

-

-

-

-

-

-

5.0 3.0 4.0 -

4.0 3.0 4.0 -

3.3 3.0 -

3.3 3.0 -

3.3 2.0 -

5.0 1.0 -

2.0 2.0

2.0 2.0

2.0 2.0

3.0 -

3.5 -

3.4 -

3.4 -

5.0 3.0 2.0 4.6 1.0 8.0 38.6

5.0 3.0 2.0 4.6 1.0 8.0 38.1

5.0 3.0 2.0 4.6 1.0 8.0 37.3

Public Safety Planning & Building-Building Safety Public Works-Engineering Police Dept Public Safety Total

10.8 3.9 55.2 69.9

7.0 3.8 52.4 63.2

Culture & Recreation Parks & Recreation Administration & Special Events Maintenance Recreation Culture & Recreation Total

2.0 5.0 8.1 15.1

Highways & Streets Streets Highways & Streets Total Sewer Wastewater Utility Finance-Billing & Collections Sewer Total Total

Function/Department/Division General Government Mayor & Council (7 seats) Town Manager Administration Economic Dev./[Communications] Economic Development Law Civil Prosecution Town Clerk Town Clerk Communications Finance Finance Technology Human Resources Planning & Building-Planning & Zoning Public Works-Facilities Municipal Court General Government Total

2018

2019

-

-

-

4.0 2.0 -

4.0 2.0 -

4.0 2.0 -

4.0 2.0

2.5 1.5

3.0 1.0

3.0 2.0

3.0 2.0

3.0 2.0

3.6 -

4.0 1.0

4.0 1.0

4.0 1.0

4.0 1.0

4.0 1.0

5.0 3.0 2.0 5.2 1.0 8.0 37.9

5.0 3.0 2.0 5.4 1.0 8.0 37.3

5.0 3.0 2.0 5.0 1.0 8.0 39.0

5.0 4.0 2.0 5.0 1.0 8.0 40.0

5.0 4.0 2.0 5.0 1.0 7.0 40.0

5.0 4.0 2.0 5.0 1.0 6.0 39.0

5.0 4.0 3.0 5.0 1.0 6.0 40.0

7.0 3.2 50.9 61.1

6.0 3.5 51.0 60.5

6.0 3.5 50.0 59.5

7.0 3.5 51.0 61.5

7.0 3.5 51.0 61.5

7.0 3.5 53.0 63.5

7.0 3.5 55.0 65.5

8.0 5.0 58.0 71.0

2.0 5.0 8.1 15.1

2.0 5.0 8.1 15.1

2.0 5.0 8.1 15.1

2.0 5.0 8.1 15.1

3.0 5.0 6.7 14.7

3.5 5.0 6.6 15.1

3.7 5.0 6.6 15.3

3.7 5.0 7.6 16.3

3.8 5.0 8.6 17.4

14.5 14.5

15.1 15.1

13.5 13.5

14.0 14.0

14.0 14.0

12.7 12.7

12.7 12.7

9.7 9.7

10.7 10.7

10.5 10.5

8.2 8.2 146.3

8.2 8.2 139.6

8.0 8.0 135.0

7.3 7.3 134.7

7.3 7.3 133.1

6.8 6.8 134.7

6.8 1.0 7.8 137.1

6.3 2.0 8.3 136.8

6.3 2.0 8.3 139.8

6.5 2.0 8.5 147.4

130


STAFFING G

131


G LEVELS

132


WHERE WILL WE B I

n order to develop a budget and to ensure that the Town con nues to remain on excellent financial foo ng, a five year plan is evaluated and updated each year. As with any planning tool, this document uses es mates and expecta ons to project future results. In order to achieve accurate results, the plan must accurately iden fy the elements which drive results. While it may be simplis c to iden fy revenues as the driving force behind our five year plan, it is an essen al first

step. Without changes to the tax rate or structure, revenues are largely outside the control of the Town. Conversely, determining what services the Town will provide—and thereby establishing budget levels—are under the control of the Town Council. These budgeted expenditure levels are typically established only a er revenue forecasts are determined, to see what can be afforded. The approach used in developing the five year financial plan is consistent with the methods used to develop the budget.

133 133

In order to produce forecasts that are reasonably conserva ve, numerous scenarios are considered and evaluated, including best and worst cases. The extreme cases are interes ng to consider but would likely lead to irraonal decisions. We ul mately reach and agree on forecasts that are somewhere between the extremes but, in our best judgment, have more upside than downside to them.


BE IN FIVE YEARS? Past Growth and Future Projections The following assump ons were used in developing the five year financial plan: x x x x x x x x x x

The base year for forecasts is the budget for fiscal year 2018 Economic growth will occur at a slow-moderate pace Based upon planning documents, there will be some commercial development Unless noted elsewhere, there will be no changes to opera onal service levels Personnel costs increase over me more than other costs due to merit increases and rising costs for health insurance and re rement contribu ons No future changes to tax rates or structure No future changes to fees or fee structures unless noted No future changes in policies and procedures No future changes in legisla on that would impact Town finances Infla onary factors were included in projec ons Past Growth and Future Projections

40,000 40 000

350

35,000

300

30,000

250 200

20,000 150

15,000 100

10,000

50

5,000 0

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

New Homes

267

169

206

277

248

300

306

312

318

315

315

Population

26,747

27,322

27,856

28,230

28,794

29,368

30,792

31,517

32,267

33,021

33,768

% Change

1.7%

2.1%

2.0%

1.3%

2.0%

2.0%

4.8%

2.4%

2.4%

2.3%

2.3%

134

0

New Homes

Population

25,000


GENERAL PLA PLANNING ANNING

BRINGING A FOREC C FINANCIAL FORECAST PHILOSOPHY (1) We exist for the be erment of our residents. Therefore, we will maintain founda onal service levels in core func ons. (2) We will live within our means. (3) We will pay our debt and meet debt obliga ons. (4) We will use a performance measurement program to measure and improve our effec veness and efficiency. (5) We will maintain healthy reserves in the General Fund.

T

ENDIN Restricted

Res

$35,000,000

$30,000,000

$8,535,400

$25,000,000

$20,000,000

$4,562,630 $11,844,830

$15,000,000 $9,459,480 $10,000,000

$5,000,000

$4,819,510 $5,355,390 $8,030,000

$3,116,690 $0 2018

2019

he focus of the Town’s appropriated funds is to provide informa on on near-term inflows, ou lows, and balances of spendable resources. Such informa on is useful in assessing the Town’s financial requirements. In par cular, available fund balances serve as a useful measure of a government’s net resources available for spending at the end of a par cular fiscal year. The following summarizes Town ac vity over the next five years, by char ng ending fund balances for all funds in the aggregate. The black ar135


G G—FIVE FIVE YEAR PLA PLAN AN

CAST INTO FOCUS FORECAST RESOURCES

NG FUND BALANCES ALL FUNDS

serves

Available

WW Deficits

$2,641,190 $4,813,170

$4,184,870

$4,818,510 $17,261,070

$11,958,700

$13,618,390

$5,613,950

$5,832,740

$6,020,960

$3,022,260

$3,861,820

$3,130,410

$2,473,660

2020

2021

2022

2023

Internal Resources Finance and Investment Advisory Commi ee Town Council/departments/staff Exis ng plans and policies

$10,118,220

$5,559,160

External Resources League of Arizona Ci es and Towns Joint Legisla ve Budget Commi ee Arizona Department of Revenue Arizona Department of Transporta on Office of the Arizona State Treasurer University of Arizona Eller College of Management Arizona State University W.P. Carey School of Business Government Finance Officers Associa on Governmental Accoun ng Standards Board Local developers’ growth projec ons

Tools and Techniques Regression analysis Ra o analysis Trend analysis FISCALS applica on

ea represents balances that are contractually restricted for specific purposes. The Town has established policies to set aside fund balances for stabiliza on reserves. These are shown in dark gray. The light gray areas represent balances over-and-above the restricted and commitment levels and are generally available for Council purposes. The chart also shows how much greater fund balances would have been had there been no deficits in the Wastewater Fund. This area is boxed in red dashes. 136


GENERAL PLANNING G

General Fund Summary x Revenues will grow 22% between 2019 and 2023. See the Major Revenues sec on for more informa on. x Expenditures will increase 14% between 2019 and 2023. Expenditures only include costs for items built into the 2019 budg-

x x x x x x

GENERAL FUND Millions

x

et; factored in future years for infla on, known and commi ed items, local matching requirements on grants, and cyclical costs (e.g., elec ons). The five-year plan assumes that certain economic metrics will be obtained pursuant to an economic development agreement, resul ng in a $400 thousand payout in 2020. Pursuant to Town policy, revenues will exceed expenditures each year. The fund balance reduc on in 2019 relates to interfund transfers. Transfers to the CIIF will be used to assist with the comple on of the SAMTEC project. This project will generate future lease revenues that will result in pay back to the General Fund. The $500 thousand transfers to the HURF will be used to enhance the Town’s pavement management program. The $2.1 million transfer to the Wastewater Fund represents forgiveness of a por on of the interfund advance used to cover deficits in the Wastewater Fund. This transfer will have the effect of reducing the nonspendable fund balance in the General Fund for 2019. Nonspendable fund balances, which relate to the Wastewater Fund’s opera ng deficit, are expected to decrease $3.1 million between 2019 and 2023. Pursuant to Town policy, reserve commitments will be fully funded. Nearly $1.3 million (annual average) of the reserves relate to other funds that are unable to establish sufficient reserves on their own. The five-year plan assumes that the Town Council will con nue to assign $100 thousand annually to the Town Manager to contend with budget con ngencies.

$25.0 $20.0 $15.0 $10.0 $5.0 $0.0 ($5.0)

2018

2019

2020

2021

2022

2023

Ending Balances

$19,912,610

$16,958,980

$17,616,240

$18,852,540

$20,506,430

$22,360,650

Annual Change

$618,360

$(2,953,630)

$657,260

$1,236,300

$1,653,890

$1,854,220

137


Gâ&#x20AC;&#x201D;FIVE YEAR PLAN GENERAL FUND 2018

2019

2020

2021

2022

2023

Estimated

Forecasted

Forecasted

Forecasted

Forecasted

Forecasted

Amounts

Amounts

Amounts

Amounts

Amounts

Amounts

SOURCES REVENUES: Taxes Sales taxes

$

Franchise taxes GPLET Licenses and Permits

5,575,870 350,550 1,520,550

$

6,124,260 367,550 1,537,270

$

6,616,640 376,200 1,553,990

$

6,924,850 385,150 1,620 1,570,710

$

7,232,350 394,150 1,660 1,562,350

$

7,518,890 403,070 1,700 1,562,350

Intergovernmental State shared sales taxes State shared income taxes State shared vehicle license taxes

2,756,440 3,560,890 1,287,750

2,857,780 3,534,770 1,388,590

2,991,470 3,717,200 1,479,520

3,146,410 3,890,230 1,580,010

3,370,820 4,204,510 1,723,280

3,531,350 4,446,590 1,835,540

692,150 106,060 99,850 3,400 173,390 239,780

704,350 108,940 110,290 3,500 193,540 316,270

677,380 110,380 114,620 3,500 198,200 387,180

694,050 110,860 119,100 3,500 203,020 424,290

690,500 110,380 123,610 3,500 207,870 459,380

682,990 110,380 128,070 3,500 212,670 459,380

21,600 15,000 9,380 16,412,660 6.6%

21,600 25,000 12,250 17,305,960 5.4%

199,800 25,000 15,000 18,466,080 6.7%

199,800 25,000 15,000 19,293,600 4.5%

199,800 25,000 15,000 20,324,160 5.3%

199,800 25,000 15,000 21,136,280 4.0%

(662,500) (662,500)

(500,000) (1,112,500) (2,112,750) (3,725,250)

(500,000) (500,000)

(500,000) (500,000)

(500,000) (500,000)

(500,000) (500,000)

Charges for Services Indirect cost recovery Development fees Recreation fees Other Fines and fees Investment Earnings Miscellaneous Leases Insurance recoveries Other Subtotal: Revenues OTHER SOURCES: Trans out to HURF Transfers Out to CIIF Transfers Out to Wastewater Subtotal: Other Sources BEGINNING FUND BALANCES: Nonspendable Committed Unassigned Subtotal: Beginning Fund Balances

TOTAL SOURCES

$

5,111,290 5,966,050 4,572,500 4,828,380 4,823,040 4,194,740 4,819,510 5,355,390 5,559,160 5,613,950 5,832,740 6,020,960 9,363,450 8,591,170 6,827,320 7,173,910 8,196,760 10,290,730 19,294,250 19,912,610 16,958,980 17,616,240 18,852,540 20,506,430 35,044,410 $ 33,493,320 $ 34,925,060 $ 36,409,840 $ 38,676,700 $ 41,142,710

USES CURRENT EXPENDITURES: Departmental Expenditures

4.7%

$

Subtotal: Current Expenditures

15,131,800 15,131,800

$ 16,534,340 16,534,340

$ 17,308,820 17,308,820

1.4%

$ 17,557,300 17,557,300

3.5%

$ 18,170,270 18,170,270

3.4%

$ 18,782,060 18,782,060

ENDING FUND BALANCES: Nonspendable Committed for Reserves Assigned for Contingencies Assigned for Asset Maintenance Unassigned Subtotal: Ending Fund Balances

TOTAL USES

$

5,966,050 4,572,500 4,828,380 4,823,040 4,194,740 2,651,060 4,819,510 5,355,390 5,559,160 5,613,950 5,832,740 6,020,960 100,000 100,000 100,000 100,000 100,000 100,000 500,000 8,527,050 6,931,090 7,128,700 8,315,550 10,378,950 13,588,630 19,912,610 16,958,980 17,616,240 18,852,540 20,506,430 22,360,650 35,044,410 $ 33,493,320 $ 34,925,060 $ 36,409,840 $ 38,676,700 $ 41,142,710

138


GENERAL PLANNING G

Highway User Revenue Fund Summary x

State shared HURF revenues will grow 18% between 2019 and 2023. See the Major Revenues sec on for more informa on.

x

The Streets Department opera ng budget will grow 14% between 2019 and 2023.

x

Beginning in 2019, the pavement management program will be recorded en rely in HURF. In 2018, $250 thousand was specific to arterial and collector roadways and was recorded in the CIIF. This program will be done in accordance with the Streets Department 10-year plan to the extent that funding is available. The General Fund will transfer in $500 thousand each year to help fund the program.

x

Transfers out to the CIIF are needed to reimburse the CIIF for capital project costs incurred on street projects and for vehicle purchases/leases.

x

Ending balances are not sufficient to cover the opera ng reserves required by policy. Deficiencies will average $708 thousand annually and be reserved by the General Fund.

HURF FUND $800,000 $600,000 $400,000 $200,000 $0 ($200,000) ($400,000) ($600,000) ($800,000)

2018

2019

2020

2021

2022

2023

Ending Balances

$711,950

$144,730

$63,420

$68,720

$66,310

$72,760

Annual Change

$(224,310)

$(567,220)

$(81,310)

$5,300

$(2,410)

$6,450

139


Gâ&#x20AC;&#x201D;FIVE YEAR PLAN HIGHWAY USER REVENUE FUND (HURF) 2018

2019

2020

2021

2022

2023

Estimated

Forecasted

Forecasted

Forecasted

Forecasted

Forecasted

Amounts

Amounts

Amounts

Amounts

Amounts

Amounts

SOURCES REVENUES: Intergovernmental State Shared HURF PAG Investment Earnings Miscellaneous Subtotal: Revenues

1.8%

6.3%

5.4%

1.3%

6.5%

4.1%

2,212,570 150,000 12,000 470 2,375,040

2,352,880 25,000 5,760 2,383,640

2,479,000 25,000 1,590 2,505,590

2,510,610 25,000 1,030 2,536,640

2,674,820 25,000 1,040 2,700,860

2,784,850 25,000 1,070 2,810,920

(29,110) (29,110)

500,000 (63,380) 436,620

500,000 (39,690) 460,310

500,000 (59,550) 440,450

500,000 (43,220) 456,780

500,000 (43,220) 456,780

936,260 936,260 $ 3,282,190

711,950 711,950 $ 3,532,210

144,730 144,730 $ 3,110,630

63,420 63,420 $ 3,040,510

68,720 68,720 $ 3,226,360

66,310 66,310 $ 3,334,010

OTHER SOURCES: Transfers In from General Fund Transfers Out to CIIF Subtotal: Other Sources BEGINNING FUND BALANCES: Restricted for HURF Subtotal: Beginning Fund Balances

TOTAL SOURCES USES EXPENDITURES: Streets Department Pavement Management Program Subtotal: Current Expenditures ENDING FUND BALANCES: Restricted for HURF Subtotal: Ending Fund Balances

TOTAL USES

$ 1,760,240 $ 1,672,560 $ 1,728,650 $ 1,773,750 $ 1,840,500 $ 1,900,010 810,000 1,714,920 1,318,560 1,198,040 1,319,550 1,361,240 2,570,240 3,387,480 3,047,210 2,971,790 3,160,050 3,261,250 23 7% 31 8% -10 0% -2 5% 6 3% 3 2% 711,950 711,950 $ 3,282,190

144,730 144,730 $ 3,532,210

140

63,420 63,420 $ 3,110,630

68,720 68,720 $ 3,040,510

66,310 66,310 $ 3,226,360

72,760 72,760 $ 3,334,010


GENERAL PLANNING G

Grants and Restricted Sources Fund Summary x

Revenues in the GARS mostly comes from grants and other contribu ons. These revenues are recognized to the extent that there are related grant/program expenditures. This ac vity has no impact on fund balance.

x

The fund also receives revenues from RICO seizures and Court fines. These sources come without a spending obliga on and may be accumulated over me. These accumulated balances are restricted for purposes related to the Police Department and Municipal Court.

x

Some expenditures in this fund are one- me in nature. Therefore, fund balance projec ons will con nue to increase un l uses can be iden fied and programmed into the five-year plan, such as is the case in 2019.

GARS FUND $500,000 $400,000 $300,000 $200,000 $100,000 $0 ($100,000) ($200,000) ($300,000) ($400,000)

2018

2019

2020

2021

2022

2023

Ending Balances

$424,940

$113,910

$100,790

$147,950

$206,050

$292,850

Annual Change

$(55,140)

$(311,030)

$(13,120)

$47,160

$58,100

$86,800

141


Gâ&#x20AC;&#x201D;FIVE YEAR PLAN GRANTS AND RESTRICTED SOURCES 2018

2019

2020

2021

2022

2023

Estimated

Forecasted

Forecasted

Forecasted

Forecasted

Forecasted

Amounts

Amounts

Amounts

Amounts

Amounts

Amounts

543,100 15,000 83,500 690 22,000 664,290

$ 426,890 15,000 84,000 930 22,000 548,820

$ 469,280 15,000 84,500 1,140 22,000 591,920

100,760 30 100,790 765,080

136,920 11,030 147,950 $ 696,770

183,020 23,030 206,050 $ 797,970

602,130 15,000 617,130

$ 475,720 15,000 490,720

$ 490,120 15,000 505,120

136,920 11,030 147,950 765,080

183,020 23,030 206,050 $ 696,770

216,320 76,530 292,850 $ 797,970

SOURCES REVENUES: Intergovernmental

$

Charges for Services Fines & Forfeitures Investment Earnings Miscellaneous Subtotal: Revenues

332,100 10,000 26,370 3,660 35,500 407,630

$

599,700 15,000 34,000 1,690 30,000 680,390

$

434,520 45,560 480,080 887,710

372,410 52,530 424,940 $ 1,105,330

$

433,270 17,500 12,000 462,770

$

$

372,410 52,530 424,940 887,710

52,880 61,030 113,910 $ 1,105,330

600,200 15,000 83,000 430 22,000 720,630

$

BEGINNING FUND BALANCES: Restricted for Police Restricted for Municipal Court Subtotal: Beginning Fund Balances

TOTAL SOURCES

$

52,880 61,030 113,910 834,540

$

USES EXPENDITURES: Police

$

Town Manager Parks & Recreation Municipal Court Subtotal: Expenditures

960,710 8,000 22,710 991,420

647,750 15,000 71,000 733,750

$

ENDING FUND BALANCES: Restricted for Police Restricted for Municipal Court Subtotal: Ending Fund Balances

TOTAL USES

$

142

$

100,760 30 100,790 834,540

$


GENERAL PLANNING G

Quail Creek Community Facilities District Fund Summary x

The fund’s secondary property tax rate will be $3.30 per $100 of assessed valua on and remain unchanged over the fiveyear planning meframe. $3.00 of the rate is used for debt service and $0.30 is used for opera ng expenditures. Growth in the tax base is associated with new development and changes in property valua ons.

x

Miscellaneous income represents developer contribu ons which will be used to pay the difference between the annual debt service requirements and the property tax for debt service. As such, this obliga on declines as the property taxes increase.

x

The fund consumes all of its resources each year, resul ng in ending balances of $0.

QUAIL CREEK CFD FUND $1

$0

($1)

2018

2019

2020

2021

2022

2023

Ending Balances

$-

$-

$-

$-

$-

$-

Annual Change

$-

$-

$-

$-

$-

$-

143


Gâ&#x20AC;&#x201D;FIVE YEAR PLAN QUAIL CREEK COMMUNITY FACILITIES DISTRICT (QC CFD) 2018

2019

2020

2021

2022

2023

Estimated

Forecasted

Forecasted

Forecasted

Forecasted

Forecasted

Amounts

Amounts

Amounts

Amounts

Amounts

Amounts

SOURCES REVENUES: Taxes Investment Earnings (Losses)

$

Miscellaneous Subtotal: Revenues

497,800 20 205,890 703,710

$

582,290 50 425,980 1,008,320

$

673,020 50 345,310 1,018,380

$

768,670 50 258,020 1,026,740

$

869,460 50 165,490 1,035,000

$

975,580 50 67,500 1,043,130

703,710

$ 1,008,320

$ 1,018,380

$ 1,026,740

$ 1,035,000

$ 1,043,130

$

$

$

$

$

BEGINNING FUND BALANCES: Restricted for QC CFD Subtotal: Beginning Fund Balances

TOTAL SOURCES

$

USES CURRENT EXPENDITURES: General Government

$

Streets Parks and Recreation Subtotal: Current Expenditures

800 16,640 29,990 47,430

800 12,360 41,180 54,340

840 12,980 48,980 62,800

880 13,630 57,210 71,720

920 14,310 65,890 81,120

970 15,030 75,010 91,010

DEBT SERVICE: Principal Interest Other Subtotal: Debt Service Subtotal: Expenditures

365,000 286,780 4,500 656,280 703,710

670,000 279,480 4,500 953,980 1,008,320

685,000 266,080 4,500 955,580 1,018,380

705,000 245,520 4,500 955,020 1,026,740

725,000 224,380 4,500 953,880 1,035,000

745,000 202,620 4,500 952,120 1,043,130

703,710

$ 1,008,320

$ 1,018,380

$ 1,026,740

$ 1,035,000

$ 1,043,130

ENDING FUND BALANCES: Restricted for QC CFD Subtotal: Ending Fund Balances

TOTAL USES

$

144


GENERAL PLANNING G

Rancho Sahuarita Community Facilities District Fund Summary x

The fund’s secondary property tax rate will not exceed $4.99 per $100 of net assessed valua on (NAV). Up to $4.69 of the rate is used for debt service and $0.30 is used for opera ng expenditures. In 2022, the growth in the tax base will be sufficient to meet debt service obliga ons. The tax rate will decline accordingly. Unless the District issues more debt in the future, by 2023 the total tax rate could reduce to $3.93 per $100 of NAV.

x

$5.78 million of general obliga on bonds were issued in 2018. Of this amount, $4.0 million will be available and used in 2019 to acquire infrastructure in the District.

x

Miscellaneous income represents developer contribu ons which will be used to pay for shor alls in the District’s net revenues, namely those associated with debt service.

x

The fund consumes all of its resources each year, resul ng in ending balances of $0.

RANCHO SAHUARITA CFD FUND $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 ($1,000,000) ($2,000,000) ($3,000,000) ($4,000,000) ($5,000,000)

2018

2019

2020

2021

2022

2023

Ending Balances

$4,035,060

$-

$-

$-

$-

$-

Annual Change

$4,035,060

$(4,035,060)

$-

$-

$-

$-

145


Gâ&#x20AC;&#x201D;FIVE YEAR PLAN RANCHO SAHUARITA COMMUNITY FACILITIES DISTRICT (RS CFD) 2018

2019

2020

2021

2022

2023

Estimated

Forecasted

Forecasted

Forecasted

Forecasted

Forecasted

Amounts

Amounts

Amounts

Amounts

Amounts

Amounts

$ 135,520 305,900 441,420

$ 329,030 118,390 447,420

$ 457,520 457,520

$ 463,380 463,380

SOURCES REVENUES: Taxes Investment Earnings (Losses)

$

Miscellaneous-Developer Contributions Subtotal: Revenues

2,460 10,160 14,880 27,500

$

57,620 20,130 344,320 422,070

OTHER SOURCES:

5,780,000 5,780,000

Debt Proceeds Subtotal: Other Sources

-

-

-

-

-

BEGINNING FUND BALANCES: Restricted for Capital Acquisition Restricted for RS CFD Subtotal: Beginning Fund Balances

TOTAL SOURCES

$ 5,807,500

4,035,060 4,035,060 $ 4,457,130

$ 441,420

$ 447,420

$ 457,520

$ 463,380

$

$

$

$

$

$

USES CURRENT EXPENDITURES: General Government Streets Subtotal: Current Expenditures

800 16,640 17,440

800 19,110 19,910

530 15,000 15,530

1,040 20,000 21,040

2,390 29,620 32,010

2,500 34,540 37,040

DEBT SERVICE: Principal Interest Other Debt Issuance Costs Subtotal: Debt Service

345,000 345,000

377,030 5,000 382,030

129,000 291,890 5,000 425,890

136,000 285,380 5,000 426,380

142,000 278,510 5,000 425,510

150,000 271,340 5,000 426,340

1,410,000 1,410,000 1,772,440

4,055,190 4,055,190 4,457,130

441,420

447,420

457,520

463,380

4,035,060 4,035,060 $ 5,807,500

$ 4,457,130

$ 441,420

$ 447,420

$ 457,520

$ 463,380

CAPITAL OUTLAY: Infrastructure Subtotal: Capital Outlay Subtotal: Expenditures ENDING FUND BALANCES: Restricted for Capital Acquisition Restricted for RS CFD Subtotal: Ending Fund Balances

TOTAL USES

146


GENERAL PLANNING G

Capital Infrastructure Improvement Fund Summary x

Unrestricted revenues (taxes and investment income) will grow 29% between 2019 and 2023, averaging $3.26 million annually. See the Major Revenues sec on for more informa on on construc on contrac ng taxes.

x

Transfers in from other funds represent interfund reimbursements for capital costs incurred in the CIIF.

x

The $2.60 million transfer to the Wastewater Fund represents forgiveness of a por on of the interfund advance used to cover deficits in the Wastewater Fund. This will eliminate the fund balances that are assigned to interfund advances.

x

Debt service costs increase over me. Town con nues to replace its motor pool via capital lease financing and, in 2021, new debt is expected to be issued to finance the Quail Crossing Boulevard Extension project.

x

Capital outlay costs include project costs, payroll costs, and indirect cost alloca ons. See the Capital Improvement Plan secon for more informa on on project costs.

x

Ending balances available for capital projects will remain rela vely flat un l 2022, where they decline significantly. Most available resources are programmed to fund projects in the Capital Improvement Plan.

x

Ending fund balances will exceed the minimum fund balance requirement outlined in Town policy.

Millions

CIIF FUND $5.0 $4.0 $3.0

$2.0 $1.0 $0.0 ($1.0) ($2.0) ($3.0) ($4.0)

2018

2019

2020

2021

2022

2023

Ending Balances

$3,940,130

$825,000

$864,750

$1,878,630

$293,230

$313,250

Annual Change

$(1,982,470)

$(3,115,130)

$39,750

$1,013,880

$(1,585,400)

$20,020

147


Gâ&#x20AC;&#x201D;FIVE YEAR PLAN CAPITAL INFRASTRUCTURE IMPROVEMENT FUND (CIIF) 2018 Estimated Amounts

2019 Forecasted Amounts

2020 Forecasted Amounts

2021 Forecasted Amounts

2022 Forecasted Amounts

2023 Forecasted Amounts

$ 2,604,160 6,000 947,400 79,250 49,000 3,685,810

$ 3,013,540 4,094,840 37,460 249,800 7,395,640

$ 3,128,770 12,920 3,141,690

$ 3,373,390 21,330 325,000 3,719,720

$ 3,438,030 16,770 3,454,800

$ 3,812,240 4,650 3,816,890

662,500 29,110 3,360 40,300 520,000 1,255,270

1,112,500 63,380 6,890 (2,579,220) 54,000 570,000 (772,450)

39,690 6,890 45,000 510,000 601,580

59,550 6,890 58,000 3,275,000 650,000 4,049,440

43,220 6,890 54,000 600,000 704,110

43,220 6,890 54,000 600,000 704,110

27,300 2,579,220 231,220 3,084,860 5,922,600 $ 10,863,680

2,579,220 361,220 999,690 3,940,130 $ 10,563,320

825,000 825,000 $ 4,568,270

864,750 864,750 $ 8,633,910

787,100 1,091,530 1,878,630 $ 6,037,540

293,230 293,230 $ 4,814,230

$ 1,181,500 455,320 5,000 1,641,820

$ 1,708,870 472,910 5,000 2,186,780

$ 1,889,930 364,210 5,000 2,259,140

$ 1,972,670 472,690 5,000 150,000 2,600,360

$ 2,280,820 443,440 5,000 2,729,260

$ 2,382,880 421,040 5,000 2,808,920

1,342,500 399,000 1,686,230 1,854,000 5,281,730 6,923,550

4,766,620 300,000 2,121,920 363,000 7,551,540 9,738,320

436,700 300,000 385,280 322,400 1,444,380 3,703,520

535,250 350,000 2,594,670 675,000 4,154,920 6,755,280

507,170 300,000 1,060,380 1,147,500 3,015,050 5,744,310

485,420 300,000 309,640 597,000 1,692,060 4,500,980

2,579,220 361,220 999,690 3,940,130 $ 10,863,680

825,000 825,000 $ 10,563,320

864,750 864,750 $ 4,568,270

787,100 1,091,530 1,878,630 $ 8,633,910

293,230 293,230 $ 6,037,540

313,250 313,250 $ 4,814,230

SOURCES REVENUES: Taxes Licenses and Permits Intergovernmental Investment Earnings Miscellaneous Subtotal: Revenues OTHER SOURCES: Transfer In From General Fund Transfers In From HURF Transfer In From WW Trasfers Out to WW Proceeds on Sale of Assets Debt Proceeds Capital Leases Subtotal: Other Sources BEGINNING FUND BALANCES: Restricted: Grants Restricted: Unused Debt Proceeds Assigned to Interfund Advances Assigned for Debt Service Available for Capital Projects Subtotal: Beginning Fund Balances

TOTAL SOURCES USES DEBT SERVICE: Principal Interest Other Debt Issuance Costs Subtotal: Debt Service CAPITAL OUTLAY: General Government Public Safety Highways and Streets Culture and Recreation Subtotal: Capital Outlay Subtotal: Expenditures ENDING FUND BALANCES: Restricted: Unused Debt Proceeds Assigned to Interfund Advances Assigned for Debt Service Available for Capital Projects Subtotal: Ending Fund Balances

TOTAL USES

148


GENERAL PLANNING G

Wastewater Enterprise Fund Summary x

User charges are expected to increase by 42% between 2019 and 2023. In accordance with a rate study recently completed, 7% user fee increases are programmed each year over this meframe. The study iden fied several financial goals to be achieved over a 10 year meframe, beginning in 2019. These goals include paying off all interfund advances, having sufficient debt service revenue coverage so that the rate stabiliza on fund is no longer needed, and to develop fund reserves. See the Major Revenues sec on for more informa on.

x

Long-term storage credits represent the value of the newly generated effluent recharge credits as cer fied by the Arizona Department of Water Resources. Both the value and number of credits generated each year is expected to increase over me with new development connec ons. A por on of investment earnings is associated with the apprecia on in value of long-term storage credits already on account. The cumula ve value is reflected in assigned fund balances.

x

Connec on fees will be earned to the extent there is new development in the U lity’s designated management area. See the Major Revenues sec on for more informa on.

x

Transfers in from the General Fund and CIIF represent forgiveness of a por on of the interfund advances.

x

Departmental opera ng expenditures are expected to increase by 12% between 2019 and 2023. These costs are reflec ve of an cipated growth from new development connec ons as well as infla onary increases.

x

Unassigned fund balances will be in deficit posi on each year. As such, the General Fund will be required to set aside reserves on behalf of the Wastewater Fund, averaging $551 thousand annually. Unassigned fund balances are expected to improve by $5.66 million between 2019 and 2023.

Millions

WASTEWATER FUND $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 ($1.0) ($2.0) ($3.0) ($4.0) ($5.0)

2018

2019

2020

2021

2022

2023

Ending Balances $(4,330,350)

$(111,060)

$54,440

$486,630

$1,509,520

$2,716,180

Annual Change

$4,219,290

$165,500

$432,190

$1,022,890

$1,206,660

$(608,800)

149


Gâ&#x20AC;&#x201D;FIVE YEAR PLAN WASTEWATER FUND 2018

2019

2020

2021

2022

2023

Estimated

Forecasted

Forecasted

Forecasted

Forecasted

Forecasted

Amounts

Amounts

Amounts

Amounts

Amounts

Amounts

$ 3,154,140 175,780 12,350 3,342,270

$ 3,442,430 215,230 12,000 3,669,660

$ 3,757,070 247,300 12,000 4,016,370

$ 4,100,470 269,540 12,000 4,382,010

$ 4,475,250 288,410 12,000 4,775,660

$ 4,884,290 308,600 12,000 5,204,890

(17,160) 193,510 70,550 90,000 242,310

22,740 203,660 60,000 316,030 87,470

70,270 323,100 50,000 324,500 154,630

53,170 343,240 40,000 332,960 -

13,570 355,680 30,000 338,610 296,560

30,230 368,490 20,000 303,050 136,750

579,210 3,921,480

689,900 4,359,560

922,500 4,938,870

769,370 5,151,380

1,034,420 5,810,080

858,520 6,063,410

(3,360) (3,360)

2,112,750 2,579,220 (6,890) 4,685,080

(6,890) (6,890)

(6,890) (6,890)

(6,890) (6,890)

(6,890) (6,890)

2,108,050 750,000 1,101,040

2,108,050 750,000 1,347,000

2,108,050 750,000 1,593,520

2,108,050 750,000 2,014,900

2,108,050 750,000 2,441,750

2,108,050 750,000 2,836,340

SOURCES OPERATING REVENUES: User Charges - Residential User Charges - Commercial Other Charges Subtotal: Operating Revenues NON-OPERATING REVENUES: Investment Earnings (Losses) Long-term Storage Credits Miscellaeous Sewer Connection Fees - Residential Sewer Connection Fees - Commercial Subtotal: Non-Operating Revenues Subtotal: Revenues OTHER SOURCES: Transfers In from General Fund Transfers In from CIIF Transfers Out To CIIF Subtotal: Other Sources BEGINNING FUND BALANCES: Restricted for Debt Service Restricted for Rate Stabilization Fund Assigned for Long-term Storage Credits Unassigned (Deficits) Subtotal: Beginning Fund Balances

TOTAL SOURCES

(7,680,640) (8,535,400) (4,562,630) (4,818,510) (4,813,170) (4,184,870) (3,721,550) (4,330,350) (111,060) 54,440 486,630 1,509,520 $ 196,570 $ 4,714,290 $ 4,820,920 $ 5,198,930 $ 6,289,820 $ 7,566,040

USES CURRENT EXPENDITURES: Wastewater Operations Subtotal: Current Expenditures

5.5% 2.6% 2.7% 3.2% 2.9% 2.9% $ 2,025,810 $ 2,078,640 $ 2,134,270 $ 2,201,570 $ 2,265,890 $ 2,331,570 2,025,810 2,078,640 2,134,270 2,201,570 2,265,890 2,331,570

DEBT SERVICE: Principal Interest Subtotal: Debt Service

1,593,230 836,250 2,429,480

1,652,600 778,770 2,431,370

1,713,820 664,700 2,378,520

1,777,690 600,830 2,378,520

1,843,930 534,580 2,378,510

1,912,650 465,860 2,378,510

71,630 71,630

315,340 315,340

253,690 253,690

132,210 132,210

135,900 135,900

139,780 139,780

4,526,920

4,825,350

4,766,480

4,712,300

4,780,300

4,849,860

CAPITAL OUTLAY: Capital Projects Subtotal: Capital Outlay Subtotal: Expenditures ENDING FUND BALANCES: Restricted for Debt Service Restricted for Rate Stabilization Fund Assigned for Long-term Storage Credits Unassigned (Deficits) Subtotal: Ending Fund Balances

TOTAL USES

2,108,050 750,000 1,347,000 (8,535,400) (4,330,350) $ 196,570 $

2,108,050 750,000 1,593,520 (4,562,630) (111,060) 4,714,290 $

150

2,108,050 750,000 2,014,900 (4,818,510) 54,440 4,820,920 $

2,108,050 750,000 2,441,750 (4,813,170) 486,630 5,198,930 $

2,108,050 750,000 2,836,340 (4,184,870) 1,509,520 6,289,820 $

2,108,050 3,249,320 (2,641,190) 2,716,180 7,566,040


P

roviding the capital assets (infrastructure, facili es, and equipment) needed for public services is among the most important responsibili es of Town oďŹ&#x192;cials. These assets are the primary method for the Town to accomplish several goals. Construc on of capital infrastructure is a method of carrying out partnership plans with private en es. These assets provide a means of suppor ng and encouraging development in accordance with public plans. Construc on of capital facili es is a method of providing a work environment to public employees and a gathering place for general ci zenry. And ďŹ nally, purchase of capital equipment is a method of mul plying the output of public employees.

151


The capital plan is the Town’s mul -year blueprint for crea ng and maintaining the crucial infrastructure that will support Sahuarita. Each year, in conjunc on with the annual budge ng process, the departments of the Town Manager and Finance coordinate the process of revising and upda ng the plan. The values, priori es, goals, and objec ves established by Sahuarita’s elected officials and ci zens determine the broad parameters for incorpora ng new capital improvement projects into the plan. Other documents, such as the Town’s General Plan, are important assets that guide the prepara on of the plan.

152


GENERAL PLANNING - CAPITAL IMP P

WHAT IS THE CAPITAL

A

capital improvement plan (CIP) is the document that local governments use as a mul -year map of planned and funded capital projects and other asset acquisi ons. Items included in the CIP are assets that (individually) cost more than $10,000 and have a useful life of more than one year.

quate equipment to fulfill cri cal services.

la on. One example would be the construc on of a new road.

The CIP allocates project costs by year according to when spending is an cipated to occur. Appropria ons of funds, sufficient to cover expenditure levels, are made each year as part of the process of developing the annual budget.

2. Replace end-of-life assets refers to the natural life cycle of assets which are consumed and need to be replaced in order to provide the same service to our ci zens. One example would be the replacement of a bridge when it has become unsafe.

The Town’s CIP includes the following characteris cs:

The CIP es mates the impact of projects on the opera ng budget. Some projects add recurring expenditures and new posi ons. Others result in expenditure savings or possibly generate addi onal revenues.

The CIP covers a five year period, the budget year and four planning years. The Town reviews and updates the CIP annually. The first year of the CIP is incorporated into the annual budget. The CIP accounts for minor projects such as office remodeling and projected ongoing equipment replacement plans. Expenditures occur each year and are necessary to ensure the Town has ade-

3. Enhance exis ng assets refers to the improvement of current infrastructure in order to provide be er or more efficient service to our ci zens. One example would be the improvement of a 4way stop sign to a lighted traffic signal in order move traffic more efficiently.

A capital project falls into one of three categories: Financing Op ons 1. New construc on refers to the creaon of new infrastructure which did not exist before. This is needed to provide appropriate service to a growing popu-

153

The Town’s staff conducts a thorough review of all funding op ons in order to determine the most efficient and least


PROVEMENT PLAN - INTRODUCTION

IMPROVEMENT PLAN?

costly method of paying for capital needs. There are generally three categories of funding available:

The following category descrip ons may be helpful in understanding the charts: Local funding refers to the money which has been saved from previous years combined with revenue received in the current year. Local funding is the most flexible resource available. It is also used to make debt payments and to provide a local matching source, required in many grant agreements. Grants, contribu ons and restricted sources refer to funding which comes from partner-en es. Some partners, such as the Pima County Regional Transporta on Authority, provide financing through grants to reimburse the Town for expenditures. Other part-

ners may provide money, land, or rights to access land in order to accomplish a mutually beneficial goal, such as a water company joining a partnership to improve a bridge and improve the water line a ached to that bridge. Debt refers to funding which comes from a structured borrowing of money from the capital markets. Debt is o en used when there are insufficient funds on hand to acquire a new asset. Smaller payments are then made over a long -term period of me. Those who benefit from the existence of the new asset are the ones who provide the revenues that are used to make the debt payments; a concept known as intergenera onal equity. A more detailed discussion of each category, including the amount of funding available from various sources follows.

LOCAL FUNDING General Fund The General Fund sources are unrestricted and may be used to fund capital projects. The General Fund may far for project costs directly or may transfer resources to other funds if those funds are incurring the costs.

Capital Fund (CIIF) The Capital Infrastructure Improvement Fund (CIIF) is the financing source that includes the Town’s 4.0% tax on new construc on, investment earnings, and accumulated reserves (i.e., beginning fund balances). The Town evaluates the amount of money which has been received in the past as well as the (Con nued pg. 155)

154


GENERAL PLANNING - CAPITAL IMP P

HOW IS THE CAPITAL IMPR RO (Con nued from pg. 140)

lege tax on all purchases within its boundaries. Pursuant to regionalized transporta on planning, the Town receives an allotment of these tax collec ons to use on specific projects.

expecta on of future revenues to determine the amount of funding available from local sources.

Federal and State Grants, Contribu ons and Restricted Sources

This process requires significant analysis and es ma on of future capital purchases made from local source as well as es ma on of internal wastewater deficits. The informa on is derived and analyzed concurrently between the plan of capital finance as well as the 5 year plan(s) for the various funds, and the projec on of major revenues. Demands on this local source are significant.

Grants and contribu ons represent grants and awards from federal, state, and other sources. Most of these require the Town to incur project costs and subsequently submit financial reports for reimbursement. The Town must submit grant proposals which are reviewed and approved by the gran ng authority in order to access grant funds. Restricted sources represent revenues that have been collected pursuant to federal and state law, whose use is limited for specified purposes.

Wastewater Fund This source includes system revenues of the wastewater u lity, including sewer user and connec on fees, accumulated reserves, and investment earnings. The Town evaluates the funding deficiency from the wastewater u lity system in the current year as well as projec ng the projected cash deficits or surpluses in future years.

Partnerships The Town is ac vely seeking partners to increase the public infrastructure within the Town for the benefit of our ci zens and our region. We obtain funding from partners who share an interest in increasing the public infrastructure within the Town boundaries.

GRANTS, CONTRIBUTIONS & RESTRICTED SOURCES Highway Fund (HURF)

DEBT Periodically the Town may obtain debt proceeds by entering

The State of Arizona assesses a tax on fuel sales. The Town receives an allotment of the tax collec ons to use on specific capital projects.

into long-term debt arrangements with lending ins tu ons,

These collec ons may be distributed by the Arizona Department of Transporta on, but the monies are mostly authorized and distributed through an intermediary; the Pima Associa on of Governments. In order to obtain funding the Town must submit a proposal for a grant and have the grant proposal approved by either the ADOT or the PAG.

by issuing bonded debt to investors. The debt proceeds are

RTA Transporta on Tax

posed by Arizona State statutes:

The Regional Transporta on Authority (RTA) is a Countywide jurisdic on that assesses a 0.5% transac on privi-

1.) Under Arizona law, the ci zens of the Town can vote to

such as banks or the Water Infrastructure Finance Authority (WIFA); or the Town may access the capital markets directly then used to construct or acquire capital assets. Annual debt service payments are made from local revenue sources.

Legal Debt Limit The Town is subject to the following debt limita ons im-

issue general obliga on bonds for an amount up to 20% of

155


PROVEMENT PLAN - INTRODUCTION

ROVEMENT PLAN FUNDED? its secondary assessed property valua on for speciďŹ c services, such as transporta on, water, sewer, ligh ng, parks and recrea onal facili es. 2.) Under Arizona law, the ci zens of the Town can vote to issue general obliga on bonds for an amount up to 6% of secondary assessed valua on for general municipal purposes. The ci zens of the Town have not voted to authorize any general obliga on bonds that would apply against these debt limits. The total debt capacity in 2019 is projected to be approximately $60.8 million. The Quail Creek Community Facili es District and the Ranch Sahuarita Community Facili es District are legally separate en

es and, therefore, their debt obliga ons do not count

towards the Townâ&#x20AC;&#x2122;s debt limita on.

156


GENERAL PLANNING - CAPITAL IMPRO O

157


OVEMENT PLAN - UNFUNDED WISHLIST

M

any projects considered were deemed a high enough priority that they would have been included in the five-year CIP to some extent but for lack of sufficient resources were not. These projects are shown here, which the Town considers as its “wish list” of unfunded projects.

Sahuarita Pool and Recrea on Complex ($15+ million) n) n

06K01 01

Build 40,000 sq. . recrea on facility with aqua c center er

Municipal Opera ons Center ($6 million) n)

06FM6 M6

Acquire site and construct a facility for maintenance and other opera ons ns

North Santa Cruz Park Expansion 2 ($3.54 million) n)

08K03 03

Add splash p park, p , two mull --purpose p p fields and one li le league baseball field, ligh ng, picnic facili es, and a basketball court rt

Quail Creek Veterans ns-Municipal Park Expansion 2B ($3.57 million) n)

17K06 06

Add lighted sports fields, parking, picnic facili es, hardscape courts and landscaping ng

Anamax Park Expansion 2B 2B ($871 thousand) d)

17K08 08

Add baseball field, parking, ligh ng, remove sep c system and connect to County sewer system m

Town District/Public Plaza zaa ($5+ million) n)

18ND1 D1

Develop p a place p for commerce, social interac on, and leisure ac vi es mix in an a rac ve , pedestrian friendly, outdoor se ng. g g. 158


GENERAL PLANNING - CAP P

Summary The plan takes into considera on all known capital needs and es poten al revenue sources to those needs. As the Town con nues to grow, new needs will undoubtedly surface, causing the plan to fluctuate and require more resources. For this reason, the Town always considers all requests, but only those projects of the highest priority that fit within the available dollars are included in the plan. All other projects may be reconsidered in future years if more funding becomes available. The CIP does not include the assets acquired by the community facili es districts as those projects go through a separate planning process and are established in development agreements.

The CIP includes 32 projects totaling $23,898,840 for fiscal years 2019 through 2023. Of these, ten are considered projects of interest and are highlighted on two-page spreads. These projects will cost $18,690,250 in total over the next five years. The remaining 22 projects will cost $5,208,590 over the next five years. The 2019 budget incorporates the first year of the CIP.

Millions

Project Costs by Year $10.0 $9.0 $8.0

$7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0

FY 2019

FY 2020

FY 2021

159

FY 2022

FY 2023


PITAL IMPROVEMENT PLAN DEPARTMENT EXPENDITURE SUMMARY DEPARTMENT Human Resources Non-Departmental Finance-Technology Police Municipal Court Planning & Building Parks & Recreation Streets Wastewater Utility

FY 2019 FY 2020 FY 2021 $ 30,000 $ $ $ 4,506,300 210,000 300,000 125,000 125,000 125,000 521,000 300,000 350,000 71,000 23,890 375,000 322,400 675,000 3,600,760 1,455,960 3,532,440 240,000 175,000 50,000 $ 9,421,950 $ 2,659,360 $ 5,032,440 $

GRAND TOTAL

FY 2022 FY 2023 $ $ 300,000 300,000 125,000 125,000 300,000 300,000 1,147,500 597,000 2,106,650 1,383,940 50,000 50,000 4,029,150 $ 2,755,940 $

TOTAL 30,000 5,616,300 625,000 1,771,000 71,000 23,890 3,116,900 12,079,750 565,000 23,898,840

FUNDING SOURCE SUMMARY SOURCE Capital Fund (CIIF) General Fund HURF Fund Restricted Funds Grants- Federal Grants - Private Partners Debt RTA Transportation Tax Wastewater Fund

GRAND TOTAL

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 $ 1,723,000 $ 1,117,800 $ 1,125,000 $ 1,872,500 $ 1,344,700 $ 1,678,390 500,000 500,000 500,000 500,000 1,214,920 818,560 698,040 819,550 861,240 221,000 48,000 2,874,000 284,800 325,000 2,334,400 787,100 1,185,840 240,000 175,000 50,000 50,000 50,000 $ 9,421,950 $ 2,659,360 $ 5,032,440 $ 4,029,150 $ 2,755,940 $

TOTAL 7,183,000 3,678,390 4,412,310 269,000 2,874,000 609,800 3,121,500 1,185,840 565,000 23,898,840

Projects by Function

Funding Sources $5,246,310 22%

$1,794,890 7%

$565,000 2%

$6,342,300 27%

$10,861,390 45%

$3,116,900 13%

$3,121,500 13%

$4,669,640 20%

Grants

Unrestricted local

Restricted local

$12,079,750 51%

Debt/Capital Leases

Streets

160

Parks

Public Safety

Sewer

General


GENERAL PLANNING - CAP P PROJECTS EXPENDITURES BY DEPARTMENT DEPARTMENT PROJECT

YEAR 1 FY 2019

PROJ #

YEAR2 FY 2020

YEAR 3 FY 2021

YEAR 4 FY 2022

YEAR 5 FY 2023

TOTAL YEARS 1-5

Human Resources Performance Management System Human Resources

16HR1

$ $

Non-Departmental Motor Pool Vehicle Replacement Program Advanced Manufacturing and Technology Center Non-Departmental Total

xxND1 17ND1

$

270,000 $ 4,236,300 $ 4,506,300 $

210,000 $ 210,000 $

300,000 $ 300,000 $

300,000 $ 300,000 $

300,000 $ 1,380,000 4,236,300 300,000 $ 5,616,300

Finance-Technology Server & Computer Replacement Program Technology Total

xxIT1

$ $

125,000 $ 125,000 $

125,000 $ 125,000 $

125,000 $ 125,000 $

125,000 $ 125,000 $

125,000 $ 125,000 $

Police Police Patrol Vehicle Replacement Program Police Training Room Police Interview Room Police Detective Work Area Records Workspace Police Total

xxPD1 16PD6 18PD1 18PD2 19PD1

$

300,000 $ 162,000 25,000 24,000 10,000 521,000 $

300,000 $ 300,000 $

350,000 $ 350,000 $

300,000 $ 300,000 $

300,000 1,550,000 162,000 25,000 24,000 10,000 300,000 $ 1,771,000

Municipal Court Court Security Upgrades Court Total

14CT1

$ $

Planning & Building ArcGIS ESRI Planning & Building Total

19PB1

$ $

Parks & Recreation Park Playground Canopy Replacement Program Park Maintenance Facility Lighting System at SUSD Practice Fields Sahuarita Lake Park Hardscape Repairs Splash Pad Boat Replacement SUSD K-8 Fields Partnership Accessible Pathway Anamax Dog Park Pump Track Inclusive Playground & Pathway Connections Quail Creek VMP Monster Netting Pickleball Courts Parks & Recreation Total

xxK01 14K04 15K01 15K05 17K05 17K07 18K01 18K02 18K04 18K05 19K02 19K03

$

Streets Pavement Preservation Quail Crossing Blvd Extension-Phase 1 Interchange Improvements: Sahuarita Rd/I-19 Pima Mine Road Bike Lanes/Paved Shoulders Signalized Intersection at La Posada Quail Crossing Blvd Extension-Phase 2 Streets Total

xxS01 05P01 05P03 16S03 19S01 19S02

$ 1,714,920 $ 1,318,560 $ 1,198,040 $ 1,319,550 $ 1,361,240 $ 1,185,840 22,700 35,000 450,000 215,000 137,400 2,334,400 787,100 $ 3,600,760 $ 1,455,960 $ 3,532,440 $ 2,106,650 $ 1,383,940 $

Wastewater Utility Sewer Conveyance System Rehab Program Wastewater Plant Expansion Phase 5b Wastewater Modular Building Wastewater Utility Total GRAND TOTAL

$

xxWW1 04W02 16W03

$

$

30,000 $ 30,000 $

-

$ $

23,890 $ 23,890 $

-

$ $

71,000 $ 71,000 $ -

$ $

-

$ $

-

$ $

-

$ $

30,000 30,000

625,000 625,000

-

$ $

-

$ $

-

$ $

71,000 71,000

-

$ $

-

$ $

-

$ $

23,890 23,890

25,000 $ $ 25,000 $ $ 25,000 $ 75,000 50,000 50,000 572,000 572,000 103,000 103,000 757,500 757,500 12,000 12,000 390,000 390,000 35,000 35,000 62,400 62,400 650,000 650,000 150,000 150,000 260,000 260,000 $ 375,000 $ 322,400 $ 675,000 $ 1,147,500 $ 597,000 $ 3,116,900

50,000 $ 128,000 62,000 240,000 $

50,000 $ 75,000 50,000 175,000 $

50,000 $ 50,000 $

50,000 $ 50,000 $

50,000 $ 50,000 $

6,912,310 1,185,840 22,700 35,000 450,000 3,473,900 12,079,750 250,000 203,000 112,000 565,000

$ 9,421,950 $ 2,659,360 $ 5,032,440 $ 4,029,150 $ 2,755,940 $ 23,898,840

161


PITAL IMPROVEMENT PLAN PROJECTS BY FUNDING SOURCE SOURCE PROJECT

PROJ#

YEAR 1 FY 2019

Capital Fund (CIIF) Motor Pool Vehicle Replacement Program Server & Computer Replacement Program Police Patrol Vehicle Replacement Program Park Playground Canopy Replacement Program Interchange Improvements: Sahuarita Rd/I-19 Court Security Upgrades Park Maintenance Facility Lighting System at SUSD Practice Fields Sahuarita Lake Park Hardscape Repairs Splash Pad SUSD K-8 Fields Partnership Accessible Pathwa Anamax Dog Park Pump Track Inclusive Playground & Pathway Connections Quail Creek VMP Monster Netting Pickleball Courts Signalized Intersection at La Posada Quail Crossing Blvd Extension-Phase 2 Capital Fund (CIIF) Total

xxND1 $ 270,000 $ xxIT1 125,000 xxPD1 300,000 xxK01 25,000 05P03 14CT1 14K04 50,000 15K01 15K05 103,000 17K05 18K01 18K02 35,000 18K04 18K05 19K02 150,000 19K03 19S01 450,000 19S02 215,000 $ 1,723,000 $

210,000 $ 125,000 300,000 23,000 62,400 260,000 137,400 1,117,800 $

General Fund Arterial and Collector Roadway Enhancements Performance Management System Advanced Manufacturing & Technology Center Boat Replacement ArcGIS ESRI Planning & Building Total

xxS01 $ 500,000 $ 16HR1 30,000 17ND1 1,112,500 17K07 12,000 19PB1 23,890 $ 1,678,390 $

HURF Fund Pavement Preservation Grants-Federal Total

xxS01

$ 1,214,920 $ $ 1,214,920 $

Restricted Funds Court Security Upgrades Police Training Room Police Interview Room Police Detective Work Area Records Workspace Restricted Funds Total

14CT1 16PD6 18PD1 18PD2 19PD1

$

$

YEAR2 FY 2020

$ 162,000 25,000 24,000 10,000 221,000 $

YEAR 3 FY 2021

YEAR 4 FY 2022 300,000 $ 125,000 300,000 -

500,000 $ 500,000 $

500,000 $ 500,000 $

500,000 $ 500,000 $

500,000 $ 2,500,000 30,000 1,112,500 12,000 23,890 500,000 $ 3,678,390

818,560 $ 818,560 $

698,040 $ 698,040 $

819,550 $ 819,550 $

861,240 $ 4,412,310 861,240 $ 4,412,310

48,000 $ 48,000 $

300,000 $ 1,380,000 125,000 625,000 300,000 1,550,000 25,000 75,000 22,700 22,700 23,000 50,000 572,000 572,000 103,000 757,500 757,500 390,000 390,000 35,000 62,400 325,000 325,000 150,000 260,000 450,000 352,400 1,125,000 $ 1,872,500 $ 1,344,700 $ 7,183,000

-

$

$

-

$ $

17ND1 $ 2,874,000 $ $ 2,874,000 $

-

$ $

Grants - Other Advanced Manufacturing & Technology Center Inclusive Playground & Pathway Connections Pima Mine Road Bike Lanes/Paved Shoulders Grants - Partners Total

17ND1 $ 18K05 16S03 $

-

$

$

$ 325,000 325,000 $

Debt Quail Crossing Blvd Extension-Phase 2 Long-Term Debt Total

19S02

$ $

$ $

-

$ $

2,334,400 $ 2,334,400 $

RTA Transportation Tax Quail Crossing Blvd Extension-Phase 1 RTA Transportation Tax Total

05P01

$ 1,185,840 $ $ 1,185,840 $

-

$ $

-

Wastewater Enterprise Fund Sewer Conveyance System Rehab Program Wastewater Plant Expansion Phase 5b Wastewater Modular Building Wastewater Enterprise Fund Total GRAND TOTAL

xxWW1 $ 04W02 16W03 $

-

50,000 $ 128,000 62,000 240,000 $

50,000 $ 75,000 50,000 175,000 $

$ 9,421,950 $

2,659,360 $

162

TOTAL YEARS 1-5

300,000 $ 125,000 350,000 25,000 -

Grants- Federal Advanced Manufacturing & Technology Center Grants-Federal Total

249,800 $ 35,000 284,800 $

YEAR 5 FY 2023

$ $

50,000 $ 50,000 $

$

$

-

-

$ $

-

$ 2,874,000 $ 2,874,000

-

$

$

$

-

787,100 $ 787,100 $

-

$ 3,121,500 $ 3,121,500

-

$ 1,185,840 $ 1,185,840

-

$

$ $

50,000 $ 50,000 $

$

$

50,000 $ 50,000 $

48,000 162,000 25,000 24,000 10,000 269,000

249,800 325,000 35,000 609,800

250,000 203,000 112,000 565,000

5,032,440 $ 4,029,150 $ 2,755,940 $ 23,898,840


GENERAL PLANNING - CAPITAL IMPROV V

Pavement Preservation Description Maintenance and rehabilita on of exis ng arterial and collector roadways throughout Town, as needed and iden fied through preliminary studies and/or maintenance history. Poten al projects may include chip seals, overlays, fog seals, or other pavement treatments/improvements intended to extend the useful life of the asset, Department staff will priori ze the list of arterial and collector roadways based on pavement condi on, traffic volume, loca on, u lity conflicts, cost, and other factors as applicable. The proposed pavement preserva on program is based on iden fied funding.

Justification Without regularly scheduled maintenance, arterial and collector roads have a 20-year life. The life of a road, however, may be extended up to four mes with regularly scheduled yearly maintenance that includes crack and fog sealing, pot hole and pavement patching. Further, chip seals and overlays should be completed on regularly scheduled intervals depending on the date of construc on and the type of road. Allowing roads to fail in the absence of a pavement preserva on program can cost up to 5 mes the cost of preserva on.

Summary of Operational Costs and Benefits This project includes pavement maintenance projects intended to extend the useful life of the facility. Rou ne ongoing maintenance is included in the Streets opera ng budget.

163


VEMENT PLAN - PROJECTS OF INTEREST

xxS01 Costs by Year

Funding Sources General Fund

36%

Program

Year

HURF

64%

Ongoing

PRIOR

$1,714,920

FY 2019

$0

$1,318,560

FY 2020

$0

$1,198,040

FY 2021

$0

$1,319,550

FY 2022

$0

$1,361,240

FY 2023

$0

Ongoing

FUTURE

Useful Life 20 Years

Total Cost $6,712,310

164

Operations


GENERAL PLANNING - CAPITAL IMPROV V

Quail Crossing Blvd Extension Phasess Description Quail Crossing Boulevard Phase 1 includes construc on of two lane roadway and drainage improvements from Nogales Highway to the east towards the Santa Cruz River. Quail Crossing Boulevard Phase 2 includes the design and construc on of approximately 1.2 miles of two lane roadway, drainage improvements and an at grade crossing of the Santa Cruz River to connect the proposed Quail Crossing Phase 1 project with Old Nogales Highway. The construc on of this project would also require the installa on of a traffic signal at the intersecon of Quail Crossing Blvd and Old Nogales Highway.

Justification The project is needed for future commercial development and provides access to undeveloped parcels of land. Ul mately, the project will benefit residents from the southern por on of the town by providing a more direct route to I-19 and the exis ng/ future commercial developments to the west.

Summary of Operational Costs and Benefits The comple on of the project will result in addi onal miles of road requiring on-going maintenance. Within the 5-year planning horizon it is an cipated that the road will require one minor treatment (slurry seal) and seasonal sweeping. The at-grade crossing will require addi onal labor by the Streets Department to ensure that the closure/warning gates and beacons and new traffic signal are func oning correctly. At-grade crossing will overtop mul ple mes a year. Assuming 3x annually for debris removal/sweeping and minor repairs. Every 5 years (outside of the planning horizon) an cipate $40K for rehab on soil cement. 3 years a er comple on the road would require a minor maintenance treatment.

165


VEMENT PLAN - PROJECTS OF INTEREST

05P01/19S02

s 1 and 2

Costs by Year

Funding Sources Debt

55%

Construction

Year

RTA

39%

$1,029,170

PRIOR

Capital Fund

6%

$1,400,840

FY 2019

$4,000

$137,400

FY 2020

$4,000

$2,334,400

FY 2021

$26,500

$787,100

FY 2022

$14,000

$0

FY 2023

$21,500

$0

FUTURE

Useful Life

Total Cost $5,688,910

20/10 Years

166

Operations


GENERAL PLANNING - CAPITAL IMPROV V

SUSD Ball Field Partnership Projects Description Ligh ng System at SUSD Prac ce Fields (15K01): Install lights and electrical service at two exis ng sports fields located in the north east area of Sahuarita Unified School District (SUSD) main campus. SUSD K-8 Fields Partnership (18K01): Install sports field ligh ng at new SUSD K-8 school. Cost includes Town share of field design and construc on. A future phase adds a play structure.

Justification (15K01): Provides two lighted fields for public use during non school hours, weekends/holidays to meet the demand for field inventory from sports organiza ons. An increased inventory of fields allows the Parks and Recrea on Department to periodically rest and rejuvenate fields in accordance with best prac ces for turf management. (18K01): Provides three new lighted sports fields for public use during non school hours, weekends/holidays to meet the requests for field use from sports organiza ons. An increased inventory of fields allows the Parks and Recrea on Department to periodically rest and rejuvenate fields in accordance with best prac ces for turf management.

Summary of Operational Costs and Benefits Electricity and water, shared maintenance pending IGA terms.

167


VEMENT PLAN - PROJECTS OF INTEREST

15K01/18K0 Costs by Year

Funding Sources Capital Fund

100%

Useful Life

Construction

Year

Operations

$1,391,950

PRIOR

$0

$0

FY 2019

$17,380

$0

FY 2020

$34,750

$0

FY 2021

$34,750

$390,000

FY 2022

$34,750

$572,000

FY 2023

$40,750

$0

FUTURE

Total Cost $2,353,950

30+ Years

168


GENERAL PLANNING - CAPITAL IMPROV V

Sahuarita Advanced Manufacturing an n Description The proposed Sahuarita Advanced Manufacturing and Technology Center (SAMTEC) project, is a mul -tenant center that provides flexible space for the innova on and commercializa on and small-scale manufacturing of new technologies in the region. The project will retain and support the expansion of Hydronalix, a mari me robo cs company and Control Vision—an op cal sensor and control systems company; both currently located in Sahuarita. The flex-space and facility ameni es at SAMTEC will also support the a rac on of high-valued firms focused on innova on and commercializa on. The proposed project will leverage grant funding from the Economic Development Administra on Economic Adjustment Assistance Program.

Justification The project will address the needs iden fied within Sahuarita’s Blueprint for Economic Prosperity and Growth strategic plan, providing economic diversifica on and furthering Sahuarita’s ability to: x x x

Invest in and strengthen present and future employment centers; Generate jobs commensurate with professional skills and backgrounds of ci zens; Provide industrial space (the primary factor that is preven ng the Town from compe ng for economic development prospects in the near term is the lack of); x Diversify Sahuarita’s economy by addressing Town’s over-dependence in mining which puts the Town at-risk to cyclical economic condi on x Provide job opportuni es for the affected employees of the Sierrita Mine and Mill shut-down.

Summary of Operational Costs and Benefits Tenants of the building are expected to enter into triple-net lease agreements. Lease revenues will be used to reimburse the Town for its capital investment.

169


VEMENT PLAN - PROJECTS OF INTEREST

17ND

nd Technology Center

Costs by Year

Funding Sources Federal Grants

62%

Construction

Year

General Fund

31%

$618,700

PRIOR

Private Partners

7%

$4,236,300

FY 2019

$0

$0

FY 2020

-$180,000

$0

FY 2021

-$180,000

$0

FY 2022

-$180,000

$0

FY 2023

-$180,000

$0

FUTURE

Useful Life

Total Cost $4,855,000

50 Years

170

Operations


GENERAL PLANNING - CAPITAL IMPROV V

Splash Pad Description Install a splash pad recrea onal water feature at a Town park.

Justification Provides a new amenity that can be used by all ages and abili es. Creates an outdoor community gathering spot, expands recrea onal opportuni es, serves as an oasis for cooling oďŹ&#x20AC;, and provides a catalyst for any adjacent business or service.

Summary of Operational Costs and Benefits Water and electricity, supplies, equip repair, maintenance.

171


VEMENT PLAN - PROJECTS OF INTEREST

17K05 Costs by Year

Funding Sources Capital Fund

100%

Useful Life

Construction

Year

$0

PRIOR

$0

FY 2019

$0

$0

FY 2020

$0

$0

FY 2021

$0

$757,500

FY 2022

$0

$0

FY 2023

$16,000

$0

FUTURE

Total Cost $757,500

20 Years

172

Operations


GENERAL PLANNING - CAPITAL IMPROV V

Community Pump Track Description Install bicycle pump track in the area north of Field 1 at Anamax Park.

Justification Provides a new amenity that can be used by bicycle riders of all ages and skill levels. The circuit consists of banked turns and bumps and is ridden without pedaling through a pumping ac on that creates momentum via up and down body movement of upper body and arms. Ac ve, healthy living through outdoor ac vi es is supported by this amenity.

Summary of Operational Costs and Benefits Weed removal and occasional refreshing of earthen circuit.

173


VEMENT PLAN - PROJECTS OF INTEREST

18K04 Costs by Year

Funding Sources Capital Fund

100%

Useful Life

Construction

Year

$0

PRIOR

$0

FY 2019

$0

$62,400

FY 2020

$0

$0

FY 2021

$250

$0

FY 2022

$250

$0

FY 2023

$250

$0

FUTURE

Total Cost $62,400

20 Years

174

Operations


GENERAL PLANNING - CAPITAL IMPROV V

Inclusive Playground and Pathways Description Inclusive playground and accessible pathway connec ons at a Town park.

Justification An inclusive play area provides a universal design where children with and without disabili es can play and exercise together on the apparatus. With though ul design, the area can also feature elements that adults can enjoy. Accessible pathways to the equipment provide compliance with the ADA and connect with exis ng routes on the selected site.

Summary of Operational Costs and Benefits Playground cleaning, inspec on, and replacement parts.

175


VEMENT PLAN - PROJECTS OF INTEREST

18K05 Costs by Year

Funding Sources Capital Fund

50%

Construction

Year

Private Partners

50%

$0

PRIOR

$0

FY 2019

$0

$0

FY 2020

$0

$650,000

FY 2021

$0

$0

FY 2022

$2,500

$0

FY 2023

$2,500

$0

FUTURE

Useful Life

Total Cost $650,000

20 Years

176

Operations


GENERAL PLANNING - CAPITAL IMPROV V

La Posada Intersection Improvementss Description This project will design and construct a new signalized intersec on at E. Con nental Road and S. Park Center Ave/Whitehouse Canyon Road near La Posada.

Justification This project will fulďŹ ll the Town's agreement as part of an annexa on agreement with La Posada.

Summary of Operational Costs and Benefits The new signal and upgraded roadway will be added to our current inventory, opera on and maintenance.

177


VEMENT PLAN - PROJECTS OF INTEREST

19S01

s

Costs by Year

Funding Sources Capital Fund

100%

Useful Life

Construction

Year

$0

PRIOR

$450,000

FY 2019

$1,200

$0

FY 2020

$1,200

$0

FY 2021

$1,200

$0

FY 2022

$1,200

$0

FY 2023

$1,200

$0

FUTURE

Total Cost $450,000

15 Years

178

Operations


GENERAL PLANNING - CAPITAL IMPROVEMEN N

Human Resources Performance Management System 16HR1

Acquisition $

-

Total Cost: $30,000

$

30,000

New so ware package to track employee performance and write eï¬&#x20AC;ec ve evalua ons.

$

-

$

-

$

-

$

-

$

-

Non-Departmental

Operations PRIOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FUTURE

$

-

$

-

$

-

$

-

$

-

Acquisition

Motor Pool Vehicle Replacement Program xxND1

$ $

270,000

Total Cost: $1,380,000

$

210,000

Ongoing replacement of older vehicles. Between seven to ten vehicles will be replaced per year. Does not include police patrol vehicles.

$

300,000

$

300,000

$

300,000

-

$

Finance-Technology

-

Operations PRIOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FUTURE

$

-

$

-

$

-

$

-

$

-

Acquisition

Server and Computer Replacement Program xxIT1

$ $

125,000

Total Cost: $625,000

$

125,000

Ongoing replacement of old technology, including servers, computers, switches, routers, phones, etc.

$

125,000

$

125,000

$

125,000

-

$

Municipal Court

-

Operations PRIOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FUTURE

$

(5,800)

$

(5,800)

$

(5,800)

$

(5,800)

$

(5,800)

Acquisition

Court Security Upgrade 14CT1

$

-

Total Cost: $71,000

$

-

Upgrade the Municipal Court's security ves bule with more advanced technology equipment including a new x-ray machine, metal detector and handheld wand.

$

71,000

$

-

$

-

$

-

$

-

179

Operations PRIOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FUTURE

$

-

$

-

$

-

$

-

$

-


NT PLAN - OTHER PURCHASES AND PROJECTS

Police

Police Patrol Vehicle Replacement Program xxPD1 Total Cost: $1,550,000 Ongoing replacement of older patrol vehicles, including motorcycles. About six to seven vehicles will be replaced per year. Cost includes vehicle equipment and installa on.

Acquisition $

-

$

300,000

$

300,000

$

350,000

$

300,000

$

300,000

$

-

PRIOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FUTURE

$

-

$

(2,950)

$

(5,900)

$

(9,320)

$

(12,250)

Construction

Police Training Room 16PD6

$

5,000

Total Cost: $167,000

$

162,000

Facility improvement crea ng a mul purpose room for trainings and mee ngs, accommoda ng up to 40 people.

$

-

$

-

$

-

$

-

$

-

Police Interview Room 18PD1

Operations

Operations PRIOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FUTURE

$

-

$

-

$

-

$

-

$

-

Construction $

2,500

Total Cost: $27,500

$

25,000

Modify Police Department building, crea ng two interview rooms to facilitate complex mul -suspect, vic m, and witness inves ga on.

$

-

$

-

$

-

$

-

$

-

Operations PRIOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FUTURE

$

-

$

-

$

-

$

-

$

-

Construction

Police Detec ve Work Area 18PD2

$

2,500

Total Cost: $26,500

$

24,000

Police Department building modifica on, crea ng one large workroom for Police Detec ves to promote greater teamwork and flow of informa on on interconnected cases.

$

-

$

-

$

-

$

-

$

-

180

Operations PRIOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FUTURE

$

-

$

-

$

-

$

-

$

-


GENERAL PLANNING - CAPITAL IMPROVEMENT P

Police (con’t)

Construction

Police Records Workspace 19PD1

$

-

Total Cost: $10,000

$

10,000

Police Department building modifica on to work sta ons and service windows for be er efficiency.

$

-

$

-

$

-

$

-

$

-

Planning & Building

Operations PRIOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FUTURE

$

-

$

-

$

-

$

-

$

-

Acquisition

ArcGIS ESRI System 19PB1

$

-

Total Cost: $23,890

$

23,890

Acquire four core licenses that will provide GIS tools for mapping and graphics that will integrate with exis ng development services so ware.

$

-

$

-

$

-

$

-

$

-

Parks & Recreation

Operations PRIOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FUTURE

$

(2,500)

$

(2,500)

$

(2,500)

$

(2,500)

$

(2,500)

Acquisition

Park Playground Canopy Replacement Program xxK01

$

-

$

25,000

Total Cost: $75,000

$

-

Ongoing replacement of playground shade structure canopies at Town parks. Provides year-round enjoyment of playgrounds and extends useful life of equipment under the canopy.

$

25,000

$

-

$

25,000

$

-

Operations PRIOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FUTURE

$

-

$

-

$

-

$

-

$

-

Construction

Park Maintenance Facility 14K04

$

512,050

Total Cost: $1,688,050

$

50,000

Construct park maintenance shop and fenced yard, including office space, maintenance supply/ equipment storage, recrea on ac vity and events supply/equipment storage, workshop, vehicle storage, bulk storage. Early costs include design and site work. Future costs are for construc on.

$

-

$

-

$

-

$

-

$

181

1,126,000

Operations PRIOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FUTURE

$

-

$

-

$

-

$

-

$

-


PLAN - OPERATING CAPITAL AND MINOR PROJECTS

Parks & Recreation (con’t)

Construction

Sahuarita Lake Park Hardscape Repairs 15K05

$

Total Cost: $103,000

$

-

Replace/reconstruct sidewalk sec ons, seat wall/ planter, and other hardscape around Sahuarita Lake Park. Correct sidewalk se ling and improves public safety in the park around the lake. Will also improve water circula on and skimmer baskets.

$

-

$

-

$

-

$

-

-

$

103,000

$

-

Total Cost: $12,000

$

12,000

Replace boat and trailer used to maintain Sahuarita Lake.

$

-

$

-

$

-

$

-

$

-

Total Cost: $35,000

Install accessible concrete pathway in the Anamax dog park. Provides accessibility from the dog park entrance pads to its ramadas and drinking fountain.

PRIOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FUTURE

$

-

$

-

$

-

$

-

$

-

Acquisition

Boat Replacement 17K07

Accessible Pathway at Anamax Dog Park 18K02

Operations

Operations PRIOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FUTURE

$

-

$

-

$

-

$

-

$

-

Construction $

-

$

35,000

$

-

$

-

$

-

$

-

$

-

Operations PRIOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FUTURE

$

-

$

-

$

-

$

-

$

-

Acquisition

Quail Creek VMP Monster Ne ng 19K02

$

Total Cost: $150,000

$

Install containment net along the east side of the mul purpose fields at Quail Creek-Veteran's Municipal Park, keeping errant balls from imentering traffic on the adjacent Old Nogales Highway.

$

-

$

-

$

-

$

-

$

-

182

150,000

Operations PRIOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FUTURE

$

-

$

-

$

-

$

-

$

-


GENERAL PLANNING - CAPITAL IMPROVEMENT PLL

Parks & Recreation (con’t)

Construction

Pickleball Courts 19K03

$

-

Total Cost: $260,000

$

-

Install fenced pickleball courts at a Town park.

$

260,000

$

-

$

-

$

-

$

-

Streets

$ $

-

Total Cost: $36,136,910

$

-

Reconstruct interchange to accommodate six lanes of through traffic. The Design Concert Report was completed in 2009. Will require future funding from Arizona Department of Transporta on.

$

-

$

-

$

22,700

$

32,800,000

3,314,210

$

-

$

-

$

250

$

250

$

250

Operations PRIOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FUTURE

$

-

$

-

$

-

$

-

$

-

Construction $

39,000

$

35,000

Total Cost: $74,000

$

-

Connect bike lanes (paved shoulders) on Pima Mine Road from the Desert Diamond Casino to Rancho Sahuarita Boulevard.

$

-

$

-

$

-

$

-

Wastewater Utility

PRIOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FUTURE

Construction

Interchange Improvements Sahuarita Rd/Interstate 19 05P03

Pima Mine Rd. Bike Lanes / Paved Shoulders 16S03

Operations

Operations PRIOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FUTURE

$

600

$

600

$

1,850

$

600

$

600

Construction

Sewer Conveyance System Rehab Program xxW01

$

-

$

50,000

Total Cost: $250,000

$

50,000

Ongoing improvements to system manholes and pipelines. Project improvements will extend the useful life or enhance the u liza on of the sewer conveyance system.

$

50,000

$

50,000

$

50,000

$

-

183

Operations PRIOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FUTURE

$

-

$

-

$

-

$

-

$

-


LAN - OPERATING CAPITAL AND MINOR PROJECTS

Wastewater Utility (con’t)

Construction

WW Plant Expansion-Phase 5b 04W02

$

Total Cost: $203,000

$

128,000

$

75,000

$

-

$

-

$

-

$

-

Permit two fully constructed infiltra on basins and installing smaller blowers.

-

Operations PRIOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FUTURE

$

-

$

-

$

-

$

-

$

-

Construction

WW Modular Building 16W03

$

533,960

Total Cost: $645,960

$

62,000

Acquire and install modular building at wastewater treatment plant site. Need to provide for ADA access and pave an area for parking.

$

50,000

$

-

$

-

$

-

$

-

Operations PRIOR FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FUTURE

$

-

$

-

$

-

$

-

$

-

ALL PROJECTS NET OPERATING IMPACTS SUMMARY DEPARTMENT Human Resources Non-Departmental Finance-Technology Police Municipal Court Planning & Building Parks & Recreation Streets Wastewater Utility

GRAND TOTAL

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 TOTAL $ $ $ $ $ $ (180,000) (180,000) (180,000) (180,000) (720,000) (5,800) (5,800) (5,800) (5,800) (5,800) (29,000) (2,950) (5,900) (9,320) (12,250) (30,420) (2,500) (2,500) (2,500) (2,500) (2,500) (12,500) 17,380 34,750 35,000 37,500 59,500 184,130 5,800 5,800 29,550 15,800 23,300 80,250 $ 14,880 $ (150,700) $ (129,650) $ (144,320) $ (117,750) $ (527,540)

184


185


T

he Town uses debt to acquire public infrastructure and assets. This debt is paid back over a meframe that is no longer than the life of the infrastructure and assets acquired. This provides for intergenera onal equity in public financial management—a concept where taxpayers finance all current expenditure and sponsor in the financing of inherited produc ve assets with respect to how much benefit is received from the assets. Stated another way, those who benefit are the ones who pay for the benefit received. The enhancements were for many different func ons of the Town, including streets, parks, judicial courts, police headquarters, and general government. Informa on about total debt, each debt instrument, its use and its repayments follow.

186


GENERAL PLA A

Quail Creek Community Facilities District QC CFD General Obligation Bonds In December 2016, the Quail Creek CFD issued $9.94 million in general obliga on bonds (Series 2016) to refund the Series 2006 general obliga on bonds, which were used to ďŹ nance the construc on and acquisi on of sewer lines, streets, wash crossings, and a park. Interest averages 3.026% and is payable semiannually, calculated based upon the principal amount of the balance outstanding during such period. The bonds are payable through 2030 from the Districtâ&#x20AC;&#x2122;s property tax revenues. The Quail Creek developer is obligated to make contribu ons to cover any short falls between property tax collec ons and annual debt service payments.

Remaining principal and interest on QC CFD debt total:

Year Ending June 30 Principal 2019 $ 670,000 2020 685,000 2021 705,000 2022 725,000 2023 745,000 2024 770,000 2025 795,000 2026 815,000 2027 840,000 2028 865,000 2029 890,000 2030 920,000 TOTAL $9,425,000

187

Interest $ 279,463 266,063 245,513 224,363 202,613 180,263 157,163 133,313 108,863 83,663 57,713 29,900 $1,968,888

Total Debt Payment $ 949,463 951,063 950,513 949,363 947,613 950,263 952,163 948,313 948,863 948,663 947,713 949,900 $11,393,888


ANNING - DEBT

Rancho Sahuarita Community Facilities District RS CFD General Obligation Bonds In March 2018, the Rancho Sahuarita CFD issued $5.78 million in general obliga on bonds (Series 2018) to ďŹ nance the acquision of roadway improvements. Interest (rate: 5.05%) is payable semiannually, calculated based upon the principal amount of the balance outstanding during such period. The bonds are payable through 2043 from the Districtâ&#x20AC;&#x2122;s property tax revenues. The Rancho Sahuarita developer is obligated to make contribu ons to cover any short falls between property tax collec ons and annual debt service payments.

Remaining principal and interest on QC CFD debt total:

Year Ending June 30 Principal 2019 $ 2020 129,000 2021 136,000 2022 142,000 2023 150,000 2024 157,000 2025 165,000 2026 174,000 2027 182,000 2028 191,000 2029 201,000 2030 211,000 2031 222,000 2032 233,000 2033 245,000 2034 257,000 2035 270,000 2036 284,000 2037 298,000 2038 313,000 2039 329,000 2040 346,000 2041 363,000 2042 381,000 2043 401,000 TOTAL $5,780,000

Interest $ 377,024 291,890 285,376 278,508 271,337 263,762 255,833 247,501 238,714 229,523 219,877 209,727 199,071 187,860 176,094 163,721 150,743 137,108 122,766 107,717 91,910 75,296 57,823 39,491 20,251 $4,698,915

188

Total Debt Payment $ 377,024 420,890 421,376 420,508 421,337 420,762 420,833 421,501 420,714 420,523 420,877 420,727 421,071 420,860 421,094 420,721 420,743 421,108 420,766 420,717 420,910 421,296 420,823 420,491 421,251 $10,478,915


GENERAL PLA A

Capital Infrastructure Improvement Fund Excise Tax Refunding Obligations In March 2015, the Town entered into a $8.84 million loan agreement with Wells Fargo Bank, N.A. to refund $8.125 million of the outstanding GADA 2006 loan obliga on, which was used to finance the construc on of the municipal complex. The Town has pledged future excise taxes toward repayment. Interest (rate: 1.98%) is payable semiannually and is calculated based upon the principal amount of the balance outstanding during such period. The loan is payable from the revenues of the Town’s governmental funds through 2025. In November 2017, the Town entered into a $4.213 million loan agreement with Chase Bank, N.A. to refund $3.855 million of the outstanding GADA 2009 loan obliga on. The Town has pledged future excise taxes toward repayment. Interest (rate: 2.06%) is payable semiannually and is calculated based upon the principal amount of the balance outstanding during such period. The loan is payable from the revenues of the Town’s governmental funds through 2029.

Greater Arizona Development Authority (GADA) Loan In June 2009, the Town entered into a $6.7 million loan agreement with GADA to finance the construc on of roadway and park improvements. The Town has pledged its State-shared revenues and excise tax collec ons. Interest (rates: 4.25%4.375%) is payable semi-annually and is calculated based upon the principal amount of the loans outstanding during such period. The loans are payable from the revenues of the Town’s governmental funds through 2020.

Capital Leases The Town has entered into five-year capital lease agreements, through 2023, to finance the acquisi on of vehicles.

Remaining principal and interest on all CIIF debt total:

Year Ending Principal June 30 2019 $ 1,708,870 2020 1,889,930 2021 1,972,670 2022 2,010,820 2023 2,097,880 2024 1,642,000 2025 1,677,000 2026 455,000 2027 462,000 2028 474,000 2029 484,000 TOTAL $14,874,170

189

Interest $ 472,910 364,210 341,690 312,440 300,840 105,048 72,187 38,625 29,252 19,735 9,970 $2,066,908

Total Debt Payment $ 2,181,780 2,254,140 2,314,360 2,323,260 2,398,720 1,747,048 1,749,187 493,625 491,252 493,735 493,970 $16,941,078


ANNING - DEBT

Wastewater Fund Water Infrastructure Finance Authority (WIFA) Loans In April 2008, the Town entered into two loan agreements with WIFA to provide funds for the construc on and design of several wastewater treatment plant expansions; a system revenue loan for $28.35 million and a non-system revenue loan for $3.52 million. Interest (rate: 3.723%) is payable semi-annually and is calculated based upon the principal amount of the loan outstanding during such period.

For the 2008 WIFA System Revenues Loan, the Town has pledged wastewater system resources, net of specified opera ng expenses. Annual principal and interest payments on the loan are expected to require all of the wastewater system’s net revenues. For the 2008 WIFA Non-System Revenues Loan, the Town has pledged wastewater system resources, net of specified opera ng expenses, and the excess of non-system revenues (i.e. excise taxes) not pledged towards other debt. Annual principal and interest payments on the loan are expected to obligate less than 5% of pledged resources.

Capital Lease The Town has entered into ten-year capital lease agreements, through 2025, to finance the acquisi on of modular building for the u lity.

Remaining principal and interest on all Wastewater Fund debt total:

Year Ending June 30 Principal 2019 $ 1,652,600 2020 1,713,820 2021 1,777,690 2022 1,843,930 2023 1,912,650 2024 1,983,925 2025 2,057,860 2026 2,104,895 2027 2,183,261 2028 2,264,544 TOTAL $19,495,175

Interest $ 778,770 664,700 600,830 534,580 465,860 394,582 320,647 243,957 165,592 84,309 $4,253,827

190

Total Debt Payment $ 2,431,370 2,378,520 2,378,520 2,378,510 2,378,510 2,378,507 2,378,507 2,348,852 2,348,852 2,348,853 $23,749,002


191


192


SUPPORTING INFORMATION N

FUND COMPOSITION

T

he Town’s financial repor ng en ty is comprised of seven funds: (1) General Fund, (2) Highway User Revenue Fund, (3) Grants & Restricted Sources Fund, (4) Quail Creek Community Facili es District Fund, (5) Rancho Sahuarita Community Facili es District Fund, (6) Capital Infrastructure Improvement Fund, and (7) Wastewater Enterprise Fund. The Town adopts budgets for all of these funds.

BASIS OF

PRESENTATION As in prior years, departments are budgeted on a func onal unit basis

to emphasize the programma c components of Town Services. Accordingly, the fiscal year 2017 budget shows the costs associated with each department and for capital projects.

BUDGETARY CONTROL The Town’s adopted budget serves as a legal opera ng plan for the fiscal year. While its primary func on is to provide a planning and alloca on tool, it also serves management by providing the basis for measuring performance during the year. The adopted budget has two levels of budgetary constraints: 1) within the opera ng funds, expenditures may not legally exceed appropriaons at the department level and 2)

193

within the Capital Infrastructure Improvement Fund expenditures may not legally exceed the func onal level of budgeted projects. To monitor compliance with these budgetary constraints, revenue and expenditure reports and budgetversus-actual analyses are prepared periodically by the Finance Department and are reported to the Town Manager and the Town Council. These reports provide not only a mechanism for monitoring performance, but also for adjus ng (when necessary) departmental opera ng plans and resource u liza on.

BUDGET AMENDMENTS While state statutes prohibit the Town from exceeding the final adopted budget amount, the budget


N - THE BUDGETARY PROCESS

is s ll just a planning document, and as such remains sufficiently flexible to accommodate changes that may occur during the fiscal year. There are two categories of change that may be needed: 1.) those affec ng line items within a single department and 2) those requiring a transfer between departments or funds. In the first instance, the Town Manager retains the authority to modify line item amounts within the departmental budgets, provided the total program budgeted amount remains unchanged. In the second instance, the Town Manager has the authority to evaluate departmental requests for changes between departments and make recommenda ons for approval to the Town Council. Should the

Town Manager recommend the change to the Town Council, the recommenda on will be considered at a regularly scheduled, open mee ng of the Town Council.

BUDGET PREPARATION AND APPROVAL Zero-Base Budgets Every department shall develop an annual budget using a zero base budget methodology. Under this approach, no target is established. The department evaluates its current level of opera ons, its programma c structure, and its staffing in the context of its mission statement and the department’s goals and objec ves. Organiza onal revisions are made, if

194

beneficial to the achievement of department goals. Programs are then divided into services which define the department’s product, or benefit, to the Town. Each program is individually budgeted and can be individually evaluated. Each line item for each program is evaluated and jus fied. During the year, the actual cost of each program can be captured and variances from budget monitored and analyzed. Capital Improvement Budget On an annual basis, the Town Manager prepares a five-year Capital Improvement Plan (CIP), the first year of which becomes the capital budget. A summary of capital improvement projects for the next five years is provided in Capital Improvement Plan sec on of this document.


SUPPORTING INFORMATIO ON Date December 2017

Action Budget/CIP Calendar Finance establishes dates for milestone events and components needed to develop the budget.

January 2017 (various dates)

Preliminary revenue projections prepared by Finance Finance prepares five-year revenues projections for all Town funds. Staff meetings-financial/budget overview During the month of January, the Finance Director communicates with other department heads in order to share the results of preliminary revenue projections and to ensure all departments understand the deadlines and the information required to fulfill each deadline. Meetings with Technology Division to review technological needs During the month of January, the Technology Manager meets with departments to determine any technological needs and identify the most efficient and effective methods for the Town to address its needs.

January 19, 2018

New position requests and other personnel changes due to Human Resources and Finance Departments need to submit the Position Justification Form and Position Analysis Questionnaire, as applicable, for new positions and reclassifications being requested.

January 26, 2018

CIP Project Sheets due to Finance Capital Improvement Plan worksheets need to be completed in order for any CIP project to be considered by the Town Manager for recommendation as part of the Budget. Preliminary departmental (Level 1) budget requests due to Finance (MUNIS) Initial identification of expenditures levels and expected revenue collections need to be entered by each department in order to meet the preliminary (Level 1) cut off.

February 9, 2018 Final departmental (Level 2) budget requests due to Finance (MUNIS) Requests for expenditure levels must be reviewed and approved by each department head by this date. February 26 â&#x20AC;&#x201C; March 9, 2018

Departmental meetings with Town Manager to review budget requests Meetings are held by the Town Manager with each department head to review the budget request and determine how the Town Manager will use the requests to create the Managerâ&#x20AC;&#x2122;s recommended budget for Town Council.

195


N - BUDGET/CIP CALENDAR Date March 12 â&#x20AC;&#x201C; 23, 2018

Action Department follow-up meetings with Town Manager (as needed) Initial meetings may leave questions unresolved. This step provides time for resolution prior to the creation of the Town Managerâ&#x20AC;&#x2122;s recommended budget.

April 25, 2018

Manager Recommended Budget and CIP delivered to Town Council Members Once the Town Manager has finalized a recommendation for the whole Town, a study document is prepared for the Town Council. This document is provided to the Council in preparation for the first public review of the budget by the Council.

May 14, 2018

Town Council budget study session Public meeting at the Town Manager presents the Recommended Budget. Council may request the Manager adjust any or all items in the budget at this time. Community Facility District Boards Tentative Budget approval In compliance with State statutes, the governing boards of the Quail Creek and Rancho Sahuarita Community Facilities Districts hold public meetings to adopt the Tentative Budget.

May 29, 2018

Town Council budget study session Public meeting at the Town Manager presents the Recommended Five-Year Capital Improvement Plan (CIP). Council may request the Manager adjust any or all items in the CIP at this time. Community Facility District Boards budget adoption In compliance with State statutes, the governing boards of the Quail Creek and Rancho Sahuarita Community Facilities Districts hold public hearings prior to adopting the budget and establishing the tax levy for the upcoming year.

June 11, 2018

Town Council Tentative Budget approval In compliance with State statute, the Council holds a public meeting to adopt the Tentative Budget, which will then be advertised along with a public hearing notice for the following Council Meeting at which the budget is scheduled to be adopted.

June 25, 2018

Public hearing and Town Council adoption of the budget and CIP adoption In compliance with State statutes, the Council holds a public hearing prior to adopting the budget and CIP.

196


SUPPORTING INFORMATION - FINA A

Financial and Budgetary Policies

A

dopted financial polices reflect the Town’s commitment to sound financial management and fiscal integrity. They also provide stability by helping Town officials plan fiscal strategy with a consistent approach. The Town has an important responsibility to its ci zens to carefully account for public funds, to manage its finances wisely, and to plan for the adequate funding of services desired by the public, including the provision and maintenance of public facili es. These policies set forth guidelines against which current budgetary performance can be measured and proposals for future programs can be evaluated. General Financial Goals x To maintain a financially viable municipal government that can provide an adequate level of services. x To maintain financial flexibility to be able to con nually adapt to local and regional economic changes. x To maintain and enhance the sound fiscal condi on of the Town. x To deliver quality services in an affordable, efficient, and cost-effec ve basis providing full value for each tax dollar. x To maintain a high credit ra ng to ensure the Town has access to long-term debt at the most affordable cost.

Following these principles will enhance the Town’s financial health as well as its image and credibility with its ci zens, the public in general, bond ra ng agencies, and investors. To achieve these purposes it is important to regularly engage in the process of financial planning including reaffirming and updated these financial guidelines. Policy changes will be needed as the Town con nues to grow and become more diverse and complex in the services it provides, as well as the organiza on under which it operates to provide these services.

1.0

Fiscal Planning and Budge ng Policies Fiscal planning refers to the process of iden fying resources and alloca ng those resources among numerous and complex compe ng purposes. The primary vehicle for this planning is the prepara on, monitoring, and analysis of the Town’s budget.

1.1

The Town will adopt a balanced budget by June 30 of each year. The total of proposed expenditures shall not exceed the total of es mated income and fund balances.

1.1.1

Each year the Town Manager shall prepare and recommend to the Town Council a preliminary budget where revenues equal or exceed expenditures in the General Fund. The Town Manager may also present budget alternaves that deviate from this provision in order to accommodate circumstances that may arise in any given year.

1.2

The Town will prepare a budget in accordance with the framework established by the Na onal Advisory Council on State and Local Budge ng and the Government Finance Officers Associa on.

1.3

The budget will be used as a fiscal control device as well as a financial and service level plan.

1.4

All departments will par cipate in the responsibility of mee ng policy goals and ensuring long-term financial health.

1.5

Town Council and Town Management exercise budgetary control. Except as provided in this sec on, all budget transfers or appropria ons of fund balances require the approval of the Town Council.

1.5.1

Budget transfers of fund balances assigned to Management for con ngencies require the approval of the Town Manager. The Town Manager will provide the Town Council a report accoun ng for such transfers.

1.5.2

Budget transfers between accounts within the same department require the approval of the Town Manager or Finance Director.

1.6

The Finance Director will prepare a budget calendar no later than January of each year.

197


ANCIAL AND BUDGETARY POLICIES 1.7

Budget development will use strategic mul -year fiscal planning, conserva ve revenue and expenditure forecasts.

1.8

The budget will be prepared in accordance with State Law in the format approved by the Arizona Auditor General and be consistent with generally accepted accoun ng principles (GAAP) where possible.

1.8.1

Budgetary schedules shall be prepared to demonstrate total financial sources equal total uses for each fund.

1.8.1.1

Budgeted financial sources shall include revenues, beginning fund balances, net debt proceeds, net interfund transfers, and other inflows.

1.8.1.2

Budgeted uses shall include expenditures, ending fund balances, and other ou lows.

1.8.2

All funds will use the current financial resources measurement focus and will account for budgeted revenues and expenditures under the modified accrual basis of accoun ng.

1.8.2.1

Revenues are recognized when they become both measurable and available.

1.8.2.2

Expenditures are recognized when they become incurred and measurable, and/or require the use of current financial resources.

1.8.2.1

Deprecia on is not budgeted.

1.8.2.2.2 Capital purchases are budgeted as expenditures in all funds. 1.8.2.2.3 Compensated absence liabili es that become due are budgeted as expenditures in all funds. 1.8.2.2.4 Debt payments are budgeted as expenditures in all funds. 1.8.2.3

The use of the modified accrual basis of accoun ng for budgetary purposes in the Wastewater Enterprise Fund departs from GAAP, which prescribes the use of the full accrual basis of accoun ng for proprietary funds in the annual financial statements.

1.9

Alterna ves for improving the efficiency and effec veness of the Town’s programs and the produc vity of its employees will be considered during the budget process. Duplica on of services and inefficiencies should be eliminated wherever they are iden fied.

1.10

The Town shall establish appropriate management controls to monitor expenditure budgets to ensure they do not exceed authoriza ons.

1.11

During the course of the year, the Town Manager is charged with the responsibility to take steps to reduce expenditures or increase revenues to the extent necessary to ensure that actual changes to fund balances in the General Fund are no lower than that planned for in the budget at the close of the fiscal year. The Town Manager may ins tute a cessa on during the fiscal year on hirings, promo ons, transfers, and capital equipment purchases. Such acon will only occur a er sending the Town Council no ce of such ac ons.

1.12

The Town will avoid budgetary and accoun ng procedures which balance the current budget at the expense of future budgets.

2.0

Revenue Policies Because revenues are sensi ve to both local and regional economic condi ons, revenue es mates should be conserva ve.

2.1

Staff will es mate annual revenues by an objec ve, analy cal process u lizing trend, judgmental, and sta s cal analysis as appropriate.

2.2

The Town will a empt to maintain a diversified and stable revenue system in order to:

2.2.1

Decrease reliance on general taxa on for discre onary but desirable programs and services and rely more on fees and charges.

2.2.2

Decrease the vulnerability of programs and services to reduc ons in tax revenues as a result of economic fluctuaons.

2.2.3

Increase the level of self-support for new program ini a ves and enhancements.

2.3

One- me revenues will be limited to the purpose for which they are intended or, to the extent possible, for one-

198


SUPPORTING INFORMATION - FINA A me expenditures. 2.4

User fees and charges for services will be reviewed periodically to determine the adequacy of cost recovery.

3.0

Expenditure Policies Management must ensure compliance with the legally adopted budget. In addi on, purchases and expenditures must comply with legal requirements and policies and procedures set forth by the Town Council.

3.1

Expenditures will be controlled by an annual appropriated budget, established by the Town Council.

3.2

Department heads are responsible for monitoring expenditures to prevent exceeding their total departmental expenditure budget. It is the responsibility of these department heads to immediately no fy the Finance Director and Town Manager of any circumstances that could result in a departmental budget being exceeded.

3.3

The Town will maintain a purchasing system that provides needed commodi es and services in a mely manner to avoid interrup ons in the delivery of services. All purchases shall be made in accordance with the State statutes, the Town’s procurement code, purchasing policies, guidelines, and procedures.

3.4

The Town will endeavor to obtain supplies, equipment, and services that provide the best value.

3.5

The Town will make all payments within established terms.

3.6

The Arizona Cons tu on sets a limit on the expenditures of local jurisdic ons. The Town will comply with these expenditure limita ons and will submit an audited expenditure limita on report, audited financial statements, and audited reconcilia on report as defined by the Uniform Expenditure Repor ng System to the State Auditor General within prescribed melines.

3.7

The Town will maintain a level of expenditures which will provide for the health, safety and welfare of the residents of the community.

3.8

The Town will maintain capital assets and infrastructure at a sufficient level to protect the Town’s investment, to minimize future replacement and maintenance costs, and to con nue service levels.

4.0

Grants Many grants require appropria on of funds, either for the original grant or to con nue programs a er the grant funding has expired. The Town should review these grant programs prior to determining whether applica on should be made for these grant funds.

4.1

The Town shall only apply for those grants that are consistent with the objec ves iden fied by Council. The poten al for incurring ongoing costs, to include the assump on of support for grant funded posi ons from local revenues, will be considered prior to applying for a grant.

4.2

The Town shall a empt to recover all allowable costs—direct and indirect—associated with the administra on and implementa on of programs funded through grants. The Town may waive or reduce indirect costs if doing so will significantly increase the effec veness of the grant.

4.3

The Town will maintain a system of internal controls which provide reasonable assurance of compliance with laws, regula ons, and the provisions of contract and grant agreements.

4.3.1

The objec ves of internal control pertaining to the compliance requirements for grant programs are as follows:

4.3.1.1

Transac ons are properly recorded and accounted for to:

4.3.1.1.1 Permit the prepara on of reliable financial statements and grant reports; 4.3.1.1.2 Maintain accountability over assets; and

199


ANCIAL AND BUDGETARY POLICIES 4.3.1.1.3 Demonstrate compliance with laws, regula ons, and other requirements; 4.3.2

Transac ons are executed in compliance with laws, regula ons, and the provisions of contracts or grant agreements that could have a direct and material effect on a grant program; and

4.3.3

Funds, property, and other assets are safeguarded against loss from unauthorized use or disposi on.

5.0

User Fee Cost Recovery and Indirect Cost Alloca ons User fees and charges are payments for voluntarily purchased, publicly provided services that benefit specific individuals. The Town relies on user fees and charges to supplement other revenue sources in order to provide public services. Indirect cost charges are assessed to recover a por on of the costs for services provided between various funds.

5.1

The Town may establish user fees and charges for certain services provided to users receiving a specific benefit.

5.2

User fees shall be reviewed periodically to calculate their full cost recovery levels, to compare them to the current fee structure, and to recommend adjustments where needed. The calcula on of full cost will include all reasonable and jus fiable direct and indirect cost components.

5.3

The Town shall establish a cost alloca on plan to determine annually the administra ve service charges due to the appropriate cost centers. Where appropriate, funds shall pay these indirect cost charges for services provided by another fund.

6.0

Cash Management and Investment

Cash management includes the ac vi es undertaken to ensure maximum cash availability and maximum investment yield on a government’s idle cash, and the cash collec on func on. 6.1

The Town shall maintain and comply with a wri en investment policy that has been approved by the Town Council. The investment policy will emphasize safety and liquidity before yield.

6.2

The Town will collect, deposit, and disburse all funds on a schedule that insures op mum cash availability for investment.

6.3

In order to maximize yields from its overall por olio, the Town will consolidate cash balances from various funds for investment purposes, and will allocate investment earnings to each par cipa ng fund.

6.4

The Town will project its cash needs to op mize the efficiency of the investment and cash management program.

6.5

The Town will conduct its treasury ac vi es with financial ins tu ons based upon wri en contracts.

6.6

Ownership of the Town’s investment securi es will be protected through third party custodial safekeeping.

6.7

All Town bank accounts shall be reconciled and reviewed on a monthly basis.

6.8

The Town may use short-term debt to cover temporary or emergency cash flow shortages. All short-term borrowing will be subject to Council approval.

7.0

Capital Asset Accoun ng, Deprecia on, and Replacement An effec ve capital asset accoun ng system is important in managing the Town’s capital asset investment.

7.1

The Town will maintain a capital assets system for assets with values of $5,000 or more. All items less than $5,000 will be recorded as opera ng expenditures.

7.2

Annual budgets including reserves will provide for adequate design, construc on, maintenance and replacement of Town’s capital assets in accordance with the current year of the capital improvement plan.

200


SUPPORTING INFORMATION - FINA A 7.3

The Town will project equipment replacement and maintenance needs for the next five years and will update this projec on each year.

7.4

The Town will ensure that deprecia on expense is allocated in a systema c and ra onal manner to those periods expected to benefit from the use of the asset.

7.4.1

The straight-line method of deprecia on, using the half-year conven on, will be used for all depreciable assets.

7.4.2

The useful life of an asset will be based upon the Town’s history with said asset or similar asset type. In the absence of an adequate history, the Town will follow useful life guidelines provided by reputable organiza ons such as the Government Finance Officers Associa on.

7.5

Vehicles will be replaced on an as needed basis a er considera on of safety issues and financial impacts.

7.6

An inventory of capital assets shall be performed on a periodic basis, at least every 3 years.

7.7

The Town will evaluate prominent events or changes in circumstances affec ng capital assets to determine whether impairment of a capital asset has occurred and whether the assets need to be revalued in accordance with Governmental Accoun ng Standards Board Statement No. 42.

8.0

Capital Improvement Plan Policies The purpose of the Capital Improvement Plan is to systema cally iden fy, plan, schedule, finance, track and monitor capital projects to ensure cost-effec veness as well as conformance to established policies.

8.1

The Town will make all capital improvements in accordance with an adopted and funded capital improvement plan.

8.2

The Town will develop an annual five-year plan for capital improvements, including design, development, and implementa on.

8.3

Staff will iden fy the es mated capital costs, the es mated opera ng costs, poten al funding sources and project schedule for each capital project proposal before it is submi ed to the Council for approval.

8.4

The Town will use intergovernmental assistance and other outside resources whenever possible to fund capital improvements providing that these improvements are consistent with the capital improvement plan and Town priori es.

8.5

When current revenues or resources are available for capital improvement projects, considera on will be given first to those capital assets with the shortest useful life and/or to those capital assets whose nature makes them compara vely more difficult to finance with debt financing. Using cash for projects with shorter lives and debt for projects with longer lives facilitates “intergenera onal equity.

8.6

Staff will monitor projects in progress to insure their mely comple on or the adjustment of the Capital Improvement Plan as approved by Council. A quarterly status report will be presented to the Town Council to monitor each project’s progress and to iden fy any significant issues.

8.7

The current year of the capital improvement plan will become the capital budget.

9.0

Long-Term Debt Policies The Town u lizes long-term debt to finance capital projects with long useful lives. Financing capital projects with debt provides for an “intergenera onal equity”, as the actual users of the capital asset pay for its cost over me,

201


ANCIAL AND BUDGETARY POLICIES rather than one group of users paying in advance for the costs of the asset. The purpose of this debt management policy is to provide for the preserva on and eventual enhancement of the Town’s bond ra ngs, the maintenance of adequate debt service reserves, compliance with debt instrument covenants and provisions, and required disclosures to investors, underwriters and ra ng agencies. These policy guidelines will also be used when evalua ng the purpose, necessity and condi on under which debt will be issued. These policies are meant to supplement the legal framework of public debt laws provided by the Arizona Cons tu on, State statutes, federal tax laws, and the Town’s current debt resolu ons and covenants. The Arizona Cons tu on limits a Town’s bonded debt capacity (outstanding principal) to certain percentages of the Town’s secondary assessed valua on by the type of project to be constructed. There is a limit of 20% of secondary assessed valua on for projects involving water, sewer, ar ficial ligh ng, parks, open space, recrea onal facility improvements, and transporta on. There is a limit of 6% of secondary assessed valua on for any other general purpose project. 9.1

The overall debt management policy of the Town is to ensure that financial resources of the Town are adequate in any general economic situa on to not preclude the Town’s ability to pay its debt when due.

9.2

The Town will confine long-term borrowing to capital improvements, capital acquisi ons, and the refinancing of prior year long-term debt.

9.3

The life of the debt service payments will not exceed the useful life of the capital assets acquired with the debt proceeds.

9.4

Proceeds from long-term debt will not be used to fund current on-going opera ons.

9.5

The issuance of variable rate debt by the Town will be subject to the most careful review and will be issued only in a prudent and fiscally responsible manner.

9.6

The Town shall make every effort to combine debt issuances in order to minimize issuance costs.

9.7

The investment of bond proceeds shall at all mes comply with the requirements of debt covenants.

9.8

The Town shall comply with all U.S. Internal Revenue Service arbitrage rebate requirements.

9.9

Before any new debt is issued, the impact of debt service payments on total annual fixed costs will be analyzed.

9.10

The Town will maintain a revenue-to-debt service ra o of at least 5 to 1 for its governmental ac vi es debt.

9.11

The Town will only issue new debt if, in the Capital Infrastructure Improvement Fund, the projected net recurring funding sources exceed the es mated annual debt service expenditures in each year of the five year period covered in the Capital Improvement Plan.

10.

Fund Balance Policies Fund balance is an important indicator of the Town’s financial posi on. Adequate fund balances must be maintained to allow the Town to con nue providing services to the community.

10.1

In accordance with Governmental Accoun ng Standards Board Statement No. 54, fund balances will be classified in the following components:

10.1.1

Nonspendable fund balance: balances that are not in spendable form or with a requirement to maintain intact

10.1.2

Restricted fund balance: balances that have externally enforceable limita ons on their use imposed by creditors, grantors, contributors, cons tu onal limita ons, or legal limita ons

202


SUPPORTING INFORMATION - FINA A 10.1.3

Commi ed fund balance: balances that have self-imposed limita ons resul ng from formal ac on taken by the Town Council

10.1.4

Assigned fund balance: balances that have limita ons resul ng from intended use

10.1.5

Unassigned fund balance: all residual net resources in the total fund balances not otherwise included in one of the above categories

10.2

Fund balances will be reserved to offset difficult economic mes, stabilize fluctua ons in cash flow requirements, and provide for emergency situa ons.

10.2.1

Stabiliza on reserves shall be established each year and be incorporated into the budget.

10.2.1.1 Each fund should maintain minimum fund balances equivalent to 25% of its adopted opera ng budget for the year. The General Fund minimum balance requirement shall also include any opera ng reserve deficiencies of other funds. 10.2.1.2 Each fund should maintain minimum fund balances equivalent to 20% of its adopted capital outlay budget, adjusted for amounts not subjec ng the Town to obliga on, for the year. The Capital Infrastructure Improvement Fund minimum balance requirement shall also include any capital reserve deficiencies of other funds. 10.2.2

Stabiliza on reserves may only be appropriated by authoriza on of the Town Council. A plan will be developed to adequately replenish reserves when appropria ons are projected to reduce reserves below the required minimum levels.

10.3

Unassigned fund balances will be maintained to provide for unforeseen opportuni es.

10.3.1

The Town desires to have a $10 million unassigned fund balance in the General Fund by the end of fiscal year 2020. Town Management shall develop a financial plan to reach this target. Un l such me, any appropria ons that cause this fund to decrease shall be accompanied with a plan to replenish the balance within a reasonable meframe.

10.4

When more than one resource is available to fund outlays for a par cular purpose, the most constrained source will be depleted before others sources are consumed; star ng with restricted fund balances, followed by commi ed fund balances, assigned fund balances and lastly unassigned fund balances.

11.0

Enterprise Funds Government enterprises generate revenue to offset the cost of providing certain services. User charges are established to offset the cost of providing these services. The accoun ng systems must be established to separate these revenues and expenses.

11.1

Separate funds will be established and maintained to properly account for each enterprise opera on. Enterprise funds will not be used to subsidize the opera ons of other funds. Inter-fund charges will be assessed for the administra ve support of the enterprise ac vity.

11.2

The Town will establish rates and fees at levels to fully cover the total direct and indirect costs, including operaons, capital outlay, unrestricted cash reserve balances, debt service, and debt coverage requirements.

12.0

Accoun ng, Audi ng, and Financial Repor ng Accoun ng, audi ng, and financial repor ng form the informa onal infrastructure for public finance. Internal

203


ANCIAL AND BUDGETARY POLICIES and external financial reports provide important informa on to the Town’s legisla ve body, management, ci zens, investors, and creditors. 12.1

The Town's accoun ng and financial repor ng systems will be maintained in conformance with generally accepted accoun ng principles and standards promulgated by the Governmental Accoun ng Standards Board.

12.2

Financial reports for each quarterly period will be submi ed to the Finance and Investment Advisory Commi ee and the Town Council.

12.3

The Finance and Investment Advisory Commi ee will provide financial oversight and will recommend ways to improve processes and procedures as needed.

12.4

Relevant and comprehensive disclosure will be provided in the general financial statements and bond representaons.

12.5

The Comprehensive Annual Financial Report will present the status of the Town’s finances on a basis of generally accepted accoun ng principles.

12.6

An annual audit will be performed by an independent public accoun ng firm with the subsequent issue of an official Comprehensive Annual Financial Report and Annual Expenditure Limita on Report.

12.7

The Town will develop and manage its accoun ng system to provide reasonable assurance regarding:

12.7.1

The safeguarding of assets against loss from unauthorized use or disposi on.

12.7.2

Reliability of financial records for preparing financial statements and maintaining accountability for assets.

12.8

The Comprehensive Annual Financial Reports and Annual Adopted Budgets will be posted on the Town’s website and made available to the public.

12.9

The Town will par cipate in the Government Finance Officers Associa on’s award programs with the intent of receiving the Cer ficate of Achievement for Excellence in Financial Repor ng and the Dis nguished Budget Presenta on Award.

13.0

Risk Management Risk management is involved in the iden fica on, evalua on, and treatment of the Town’s exposure to risk. Risk management has become increasingly important in guarding against economic loss an in ensuring public safety in a me of increasing public liability and li ga on.

13.1

The Town shall make diligent efforts to prevent or mi gate the loss of Town assets and to reduce the Town’s exposure to liability through training, risk financing, and the transfer of risk when cost effec ve.

13.2

The Town shall manage its exposure to risk through the purchase of third-party insurance for general liabili es, automo ve liabili es, property losses, and workers’ compensa on.

13.3

When applicable, the Town will control its exposure to risk through the use of “hold harmless” agreements in Town contracts by requiring contractors to carry liability insurance, including errors and omissions coverage for architectural, engineering, and other professional firms.

204


SUPPORTING INFORMATIO O

STATE SPENDING LIMITATION

T

he Town of Sahuarita, like all coun es and municipali es in Arizona, is subject to numerous budgetary and related legal requirements. Ar cle 9, Sec on 20, (1) of the Arizona Cons tu on sets limits on the Town’s legal budget capacity. In general, the Town Council cannot authorize expenditures of local revenues in excess of the expenditure limita ons determined annually by the Arizona Economic Es mates Commission. This limita on is based upon a calculated amount of expenditures for fiscal year 1979-80 (prior to the Town’s incorpora on), adjusted to reflect subse-

quent infla on and popula on growth. Not subject to this limit are items such as bond proceeds, related debt service, interest earnings, special voter approved districts, certain highway user revenue funds, federal funds, monies received pursuant to intergovernmental agreements, and state grants which are to be used for specific purposes. The Town demonstrates compliance with these requirements by filing the audited Annual Expenditure Limita on Report with the Office of the Arizona Auditor General.

TENATIVE BUDGET PREPARATION AND PUBLICATION State law (ARS §42-17101) requires that on or before the third Monday in July of each fiscal year, the Town Council must prepare an es mate of ex-

205

penditures and revenues. Town of Sahuarita refers to these es mates as the Tenta ve Budget. According to ARS §42-17101, this Tenta ve Budget must be included in the Town Council mee ng minutes and, must be fully itemized in accordance with forms supplied by the Auditor General. (See the Official Budget Forms sec on.) ARS §42-17102 defines the contents of the es mates. The Tenta ve Budget and the reports include all monies used for Town purposes including interest and principal payments on bonds. ARS §42-17103 requires publica on of the Tenta ve Budget once a week for at least two consecu ve weeks. The published Tenta ve Budget must be accompanied by a no ce of the scheduled date and me for a public hearing regarding the budget.


ON - LEGAL REQUIREMENTS

ARS §42-17104 specifies that the Town Council shall hold a public hearing and special mee ng at which any taxpayer may appear and speak for or against any proposed expenditure. This mee ng is held on the date the budget is adopted. ARS §42-17105 prescribes that once the Tenta ve Budget has been published, expenditures may not be increased above the published amounts; however, they may be decreased. In effect, with the publica on of the Tenta ve Budget, the Town Council has set its maximum limits for expenditures, but these limits may be reduced upon final adop on.

FINAL BUDGET ADOPTION State law (ARS §42-17105) specifies that a er the hearing required by ARS

§42-17104, the Town Council must adopt the es mate of proposed expenditures for the fiscal year at a special mee ng called for that purpose. The adopted expenditures then become the budget for the upcoming fiscal year and shall not exceed the total amount proposed for expenditures in the published es mates (i.e., the Tenta ve Budget). According to ARS §42-17106, once adopted, no expenditures shall be made for a purpose not included in the budget and no expenditures shall be made in excess of the amounts specified for each purpose in the budget, except as provided by law. This restric on applies whether or not the Town has at any me received, or has on hand, funds or revenue in excess of those required to meet expenditures incurred under the budget.

206

BUDGET REVISIONS ARS §42-17106 requires that no expenditures be made for a purpose not included in the adopted budget in any fiscal year in excess of the amount specified for each purpose in the budget. ARS §42-17106 permits the Town Council, on the affirma on of a majority of the supervisors at a duly no ced public mee ng, to authorize the transfer of funds between programs if the funds are available, if the transfer is in the public interest and based on a demonstrated need, so long as the transfer does not violate the set spending limita ons.


E

2018 Actual Expenditures/Expenses**

C D D D D

2019 Estimated Revenues Other than Property Taxes

2019 Other Financing Sources

2019 Other Financing (Uses)

2019 Interfund Transfers In

2019 Interfund Transfers (Out)

207

** ***

*

33,493,320

2019 Budgeted Expenditures/Expenses

FUNDS

10,102,990

10,102,990

63,380

500,000

0

0

3,838,100

656,320

5,171,950

10,681,110

12,651,190

0

0

0

0

0

0

0

0

0

10,563,320

10,563,320

2,579,220

1,182,770

0

624,000

7,395,640

3,940,130

10,863,680

15,952,220

Special Revenue Capital Projects Debt Service Fund Fund Fund

Permanent Fund

0

0

0

0

0

0

0

0

0

$ $

$

2018 61,307,200 $ (8,877,750) 52,429,450 15,572,674 36,856,776 $ 36,833,497 $

4,714,290

4,714,290

6,890

4,691,970

0

0

4,359,560

(4,330,350)

196,570

265,310

58,873,920

58,873,920

Schedule A

0

6,374,740

6,374,740

0

624,000

32,899,260

656,320

0

24,694,340

56,785,770

61,307,200

Total All Funds

Includes Expenditure/Expense Adjustments Approved in the current year from Schedule E. Includes actual amounts as of the date the proposed budget was prepared, adjusted for estimated activity for the remainder of the fiscal year. Amounts on this line represent Fund Balance/Net Position amounts except for amounts not in spendable form (e.g., prepaids and inventories) or legally or contractually required to be maintained intact (e.g., principal of a permanent fund).

2019 58,873,920 (6,107,950) 52,765,970 14,455,452 38,310,518 38,310,519

0

0

0

0

0

0

0

0

0

Enterprise Internal Funds Available Service Funds

The city/town does not levy property taxes and does not have special assessment districts for which property taxes are levied. Therefore, Schedule B has been omitted.

EXPENDITURE LIMITATION COMPARISON 1. Budgeted expenditures/expenses 2. Add/subtract: estimated net reconciling items 3. Budgeted expenditures/expenses adjusted for reconciling items 4. Less: estimated exclusions 5. Amount subject to the expenditure limitation 6. EEC expenditure limitation

33,493,320

3,725,250

0

0

0

17,305,960

0

19,912,610

35,044,410

32,438,480

General Fund

2019 Total Financial Resources Available

LESS: Amounts for Future Debt Retirement:

E

B

2019 Secondary Property Tax Levy

2019 Reduction for Amounts Not Available:

B

2019 Primary Property Tax Levy

2019 Fund Balance/Net Position at July 1***

E

2018 Adopted/Adjusted Budgeted Expenditures/Expenses*

Fiscal Year

S c h

TOWN OF SAHUARITA Summary Schedule of Estimated Revenues and Expenditures/Expenses Fiscal Year 2019

SUPPORTING INFORMATION N


N - OFFICIAL BUDGET FORMS TOWN OF SAHUARITA Tax Levy and Tax Rate Information Fiscal Year 2019 2018 1. Maximum allowable primary property tax levy. A.R.S. §42-17051(A)

$

2. Amount received from primary property taxation in the current year in excess of the sum of that year's maximum allowable primary property tax levy. A.R.S. §42-17102(A)(18)

$

3. Property tax levy amounts A. Primary property taxes B. Secondary property taxes C. Total property tax levy amounts

$

$ $

4. Property taxes collected* A. Primary property taxes (1) Current year's levy (2) Prior years’ levies (3) Total primary property taxes B. Secondary property taxes (1) Current year's levy (2) Prior years’ levies (3) Total secondary property taxes C. Total property taxes collected

2019

$ 562,370 562,370

$

656,320 656,320

$ $ $ $ $

517,540 6,430 523,970 523,970

5. Property tax rates A. City/Town tax rate (1) Primary property tax rate (2) Secondary property tax rate (3) Total city/town tax rate B. Special assessment district tax rates Secondary property tax rates - As of the date the proposed budget was prepared, the city/town was operating two special assessment districts for which seconda property taxes are levied. For information pertaining to these special assessment districts and their tax rates, please contact the city/town. * Includes actual property taxes collected as of the date the proposed budget was prepared, plus estimated property tax collections for the remainder of the fiscal year.

Schedule B

208


SUPPORTING INFORMATION N TOWN OF SAHUARITA Revenues Other Than Property Taxes Fiscal Year 2019 ESTIMATED REVENUES 2018

SOURCE OF REVENUES

ACTUAL REVENUES* 2018

ESTIMATED REVENUES 2019

GENERAL FUND Local taxes Transaction privilege taxes Franchise fees

$

5,338,030 312,270

Licenses and permits Planning & Building permit fees Public Works permit fees Animal license fees Other

$

1,304,150

5,575,870 350,550

$

6,124,260 367,550

35,000 800

1,363,830 121,620 33,700 1,400

1,397,890 103,580 35,000 800

2,696,620 3,560,890 1,320,840

2,756,440 3,560,890 1,287,750

2,857,780 3,534,770 1,388,590

Charges for services Development fees Recreation fees Other departmental fees Indirect cost recovery

80,920 120,930 2,830 754,280

106,060 99,850 3,400 692,150

108,940 110,290 3,500 704,350

Fines and forfeits Court fines and fees

190,750

173,390

193,540

Interest on investments Investment earnings

239,780

239,780

316,270

25,000 21,600 19,750

15,000 21,600 9,380

25,000 21,600 12,250

Intergovernmental State shared sales taxes State shared income taxes State shared vehicle license taxes

Miscellaneous Insurance recoveries Leases Other Total General Fund $

16,024,440

$

16,412,660

$

17,305,960

* Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year.

Schedule C (1 of 2)

209


N - OFFICIAL BUDGET FORMS TOWN OF SAHUARITA Revenues Other Than Property Taxes Fiscal Year 2019 ESTIMATED REVENUES 2018

SOURCE OF REVENUES

ACTUAL REVENUES* 2018

ESTIMATED REVENUES 2019

SPECIAL REVENUE FUNDS Highway User Revenue Fund State shared fuel taxes Intergovernmental-State Intergovernmental-Local Investment earnings Miscellaneious Grants & Restricted Sources Fund Fines and forfeitures Intergovernmental-Federal Intergovernmental-State Intergovernmental-Local Impound fees Investment earnings Miscellaneous Quail Creek CFD Property taxes-allowance for uncollectibles Investment earnings (losses) Miscellaneous/Developer contributions Rancho Sahuarita CFD Property taxes-allowance for uncollectibles Investment earnings (losses) Miscellaneous/Developer contributions

$

2,270,470 1,720,840 150,000 10,740

$

$

4,152,050

$

$

$

$

87,870 323,540 60,550 32,450 15,000 3,060 32,500 554,970

$

(13,040) $

$

195,220 182,180

$

$

$

2,212,570 150,000 12,000 470 2,375,040 26,370 236,860 34,040 61,200 10,000 3,660 35,500 407,630

$

2,352,880 25,000 5,760

$

2,383,640

$

34,000 438,710 128,540 32,450 15,000 1,690 30,000 680,390

$

(23,710) $ 20 205,890 182,200 $

(14,930) 50 425,980 411,100

$

(1,480) 20,130 344,320 362,970

$ 338,200 338,200

$

10,160 14,880 25,040

5,227,400

$

2,989,910

$

3,838,100

2,306,000

$

2,604,160 6,000

$

3,013,540

$

3,000,000 1,094,840 37,460 249,800 7,395,640

$

7,395,640

3,329,920 $ 136,220 74,650 546,880 (69,610) 4,018,060 $

3,329,920 $ 193,510 82,900 332,310 (17,160) 3,921,480 $

3,657,660 203,660 72,000 403,500 22,740 4,359,560

Total Enterprise Funds $

4,018,060

$

3,921,480

$

4,359,560

TOTAL ALL FUNDS $

30,855,150

$

27,009,860

$

32,899,260

$ Total Special Revenue Funds $ CAPITAL PROJECTS FUNDS Capital Infrastructure Improvement Fund (CIIF) Transaction privilege taxes $ Permits Intergovernmental-Federal Intergovernmental-Local Investment earnings Miscellaneous $

$

3,050,000

Total Capital Projects Funds $ ENTERPRISE FUNDS Wastewater Fund Sewer user charges $ Long-term Storage Credits Other Sewer connection fees Investment earnings (losses) $

79,250 150,000 5,585,250

$

947,400 79,250 49,000 3,685,810

5,585,250

$

3,685,810

* Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year.

Schedule C (2 of 2)

210


SUPPORTING INFORMATION N TOWN OF SAHUARITA Other Financing Sources/<Uses> and Interfund Transfers Fiscal Year 2019 OTHER FINANCING 2019 SOURCES <USES>

FUND GENERAL FUND Highway User Revenue Fund CIIF Wastewater Fund

INTERFUND TRANSFERS 2019 IN <OUT>

$

$

$

$

500,000 1,112,500 2,112,750

Total General Fund $

$

$

$

3,725,250

$

$

SPECIAL REVENUE FUNDS Highway User Revenue Fund: General Fund CIIF

$

63,380

Total Special Revenue Funds $ CAPITAL PROJECTS FUNDS CIIF: General Fund Highway User Revenue Fund Wastewater Fund

$

624,000

$

$

$

$

500,000

$

624,000

$

$

$

$

1,182,770

2,579,220 $

624,000

6,890

$

$

4,691,970

$

6,890

$

$

6,374,740

$

6,374,740

Schedule D

211

2,579,220

$ 2,112,750 2,579,220

Total Enterprise Funds $ TOTAL ALL FUNDS $

$

63,380

$ 1,112,500 63,380 6,890

Total Capital Projects Funds $ ENTERPRISE FUNDS Wastewater Fund: General Fund CIIF

$ 500,000


N - OFFICIAL BUDGET FORMS TOWN OF SAHUARITA Expenditures/Expenses by Fund Fiscal Year 2019

FUND/DEPARTMENT

ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2018

GENERAL FUND Mayor & Council $ Town Manager Economic Development Law Town Clerk Finance Human Resources Planning & Building Parks & Recreation Public Works Police Municipal Court Non-Departmental Contingency/Ending Balances Total General Fund $

137,550 786,280 698,420 578,880 1,423,180 279,940 1,312,040 1,897,330 1,008,570 7,026,530 602,080 154,420 16,533,260 32,438,480

EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2018

ACTUAL EXPENDITURES/ EXPENSES* 2018

$

$

$

$

$

$

SPECIAL REVENUE FUNDS Highway User Revenue Fund Streets $ Contingency/Ending Balances Grants & Restricted Sources Fund Town Manager Economic Development Parks & Recreation Police Contingency/Ending Balances Quail Creek CFD General government Streets Parks & Recreation Debt Service Rancho Sahuarita CFD General government Streets Debt Service Capital Outlay Contingency/Ending Balances Total Special Revenue Funds $

12,627,910

$

CAPITAL PROJECTS FUNDS General Governement $ Public Safety Highways & Streets Culture & Recreation Debt Service Contingency/Ending Balances Total Capital Projects Funds $

5,274,360 333,100 2,564,140 1,841,000 1,609,820 4,329,800 15,952,220

$

$

$

$

ENTERPRISE FUNDS Wastewater Operations $ Billing & Collections Debt Service Capital Outlay Ending Fund Deficits Total Enterprise Funds $ TOTAL ALL FUNDS $

1,619,680 $ 505,430 2,431,090 1,270,930 (5,561,820) 265,310 $ 61,283,920 $

$

2,804,080 389,100

BUDGETED EXPENDITURES/ EXPENSES 2019

137,470 529,020 232,980 657,890 485,850 1,352,700 247,300 1,295,670 1,795,500 1,045,120 6,596,370 574,180 181,750 19,912,610 35,044,410

$

2,570,240 711,950

$

$

169,690 576,820 266,530 701,180 652,980 1,446,600 373,730 1,449,070 2,056,600 1,118,270 6,921,930 617,020 183,920 16,958,980 33,493,320

3,387,480 144,730

10,500

17,500

15,000 760,380 246,100

12,000 433,270 424,940

8,000 22,710 960,710 113,910

3,570 16,510 27,330 656,280

800 16,640 29,990 656,280

800 12,360 41,180 953,980

1,840 15,600 922,950 6,758,670

800 16,640 345,000 1,410,000 4,035,060 10,681,110

800 19,110 382,030 4,055,190

23,280

23,280

23,280

$

$ $

1,342,500 399,000 1,686,230 1,854,000 1,641,820 3,940,130 10,863,680

$

10,102,990

$

4,766,620 300,000 2,121,920 363,000 2,186,780 825,000 10,563,320

$

1,578,950 $ 446,860 2,429,480 71,630 (4,330,350) 196,570 $ 56,785,770 $

1,592,670 485,970 2,431,370 315,340 (111,060) 4,714,290 58,873,920

* Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year.

Schedule E

212


SUPPORTING INFORMATION N TOWN OF SAHUARITA Expenditures/Expenses by Department Fiscal Year 2019

DEPARTMENT/FUND Town Manager General Fund $ Grants & Restricted Sources Department Total $

ADOPTED BUDGETED EXPENDITURES/ EXPENSES 2018 786,280 10,500 796,780

Economic Development General Fund $ Grants & Restricted Sources Department Total $

EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED 2018

ACTUAL EXPENDITURES/ EXPENSES* 2018

BUDGETED EXPENDITURES/ EXPENSES 2019 $

576,820

$

576,820

$

$

$

$

$

266,530 8,000 274,530

$

$

$

$

$

Finance General Fund $ Quail Creek CFD Rancho Sahuarita CFD CIIF Wastewater Fund Department Total $

1,423,180 800 800 190,000 505,430 2,120,210

$

$

$

$

Planning & Building General Fund $ CIIF Department Total $

1,312,040 45,000 1,357,040

$

$

$

$

762,000 17,500 779,500

1,352,700 800 800 190,000 446,860 1,991,160

$

$

1,446,600 800 800 125,000 485,970 2,059,170

1,295,670 45,000 1,340,670

$

1,449,070

$

1,449,070 2,056,600 22,710 41,180 25,000 2,145,490

Parks & Recreation General Fund $ Grants & Restricted Sources Quail Creek CFD CIIF Department Total $

1,897,330 15,000 27,330

$

$

1,795,500 12,000 29,900

$

1,939,660

$

$

1,837,400

$

Police General Fund $ Grants & Restricted Sources CIIF Department Total $

7,026,530 760,380 333,100 8,120,010

$

$

6,596,370 433,270 399,000 7,428,640

Streets Highway User Revenue Fund $ Quail Creek CFD Rancho Sahuarita CFD CIIF Department Total $

2,804,080 16,510 15,600 250,000 3,086,190

$

3,387,480 12,360 19,110

$

2,570,240 16,640 16,640 250,000 2,853,520

$

3,418,950

Non-Departmental General Fund $ Quail Creek CFD Rancho Sahuarita CFD CIIF Department Total $

154,420 2,770 1,040 270,000 428,230

181,750

$

183,920

270,000 451,750

$

270,000 453,920

23,280 $

23,280

$

$

$

$

6,921,930 960,710 300,000 8,182,640

* Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year.

Schedule F

213


$

2.6 10.9

2.2 2.2

8.5 8.5 147.4

CAPITAL PROJECTS FUNDS CIIF Total Capital Projects Funds

ENTERPRISE FUNDS Wastewater Fund Total Enterprise Funds

TOTAL ALL FUNDS

214 $

$ $

$ $

$

$

8.3

125.8

SPECIAL REVENUE FUNDS Highway User Revenue Fund Quail Creek CFD Rancho Sahuartia CFD Grants and Restricted Sources Total Special Revenue Funds

GENERAL FUND

FUND

Full-Time Equivalent (FTE) 2019

$

$ $

$ $

$

$

$

1,453,120

60,780 60,780

19,650 19,650

51,950 109,820

57,870

1,262,870

Retirement Costs 2019

Schedule G

10,050,840

520,070 520,070

175,000 175,000

334,630 844,010

509,380

8,511,760

Employee Salaries and Hourly Costs 2019

$

$ $

$ $

$

$

$

1,787,480

114,310 114,310

25,910 25,910

37,720 139,770

102,050

1,507,490

Healthcare Costs 2019

TOWN OF SAHUARITA Full-Time Employees and Personnel Compensation Fiscal Year 2019

$

$ $

$ $

$

$

$

1,111,110

54,380 54,380

15,520 15,520

36,190 91,630

55,440

949,580

Other Benefit Costs 2019

$

$ $

$ $

$

$

$

14,402,550

749,540 749,540

236,080 236,080

460,490 1,185,230

724,740

12,231,700

Total Estimated Personnel Compensation 2019

N - OFFICIAL BUDGET FORMS


T

hough the Town of Sahuarita is rela vely new, people have lived in the area in small communi es for thousands of years. Archaeologists believe the region—located in Southern Arizona—to be the longest con nuously inhabited place in all of North America. As the Town sits directly on both banks of the Santa Cruz River, there’s no doubt that long before us came many, many others. Archaeology in the area, and the oral history of the Tohono O’odham show us that the land is blessed with a rich cultural legacy. The Santa Cruz River Valley and the land abu ng the Santa Rita Mountains was a place where Nave Americans inhabited villages and worked intensive agricul-

TOTAL POPULATION 30,225

31 Squa

EDUCA

MEDIAN AGE

48.08% Male

High School

37

17.65

Some College 28.58

51.92% Female

HOUSING

#5

UNEMPLOYMENT RATE

Owners: 83.3% Renters: 16.7%

3.3% 215

MEDIAN EX

$6


ture by way of complex irriga on systems. As one of Arizona’s fastest-growing communi es, the Town of Sahuarita is the newest jurisdic on in Pima County, incorporated in 1994 with a popula on of over 30,000. The Town of Sahuarita’s popula on increased nearly 700 percent during the period from the 2000 Census to the Census of 2010. At just over 30 square miles in area, Sahuarita is located 15 minutes south of Tucson and 40 minutes north of the Mexican border. For current demographics informa on visit Zoom Prospector. For approxima ons of sta s cs at the me of this publica on see the numbers above.

are Miles

ATIONAL ATTAINMENT

AGE DISTRIBUTION

5%

Associates Degree 10.84%

8%

Bachelor’s OR Higher 37.49%

XPENDITURES

65,246

MEDIAN INCOME $73,579 216

0-9

4,351

40-49

2,772

10-19

3,413

50-59

2,583

20-29

3,446

60-64

1,687

30-39

4,181

65+

6,998


H

istorically, mining has been a major industry in the area. Other major employers include Raytheon defense contractor, the University of Arizona, and DavisMonthan Air Force Base, in Tucson, Arizona. In 2017, the town was the recipient of a major grant from the Economic Development Administra on for $3 million. This grant will allow the town to establish Sahuarita Advanced Manufacturing and Technology Center (SAMTEC) that will house two local businesses in need of expansion and plant the seed for a technology cluster in the area, a rac ng other employers.

COLLECTIONS BY TAX TYPE â&#x20AC;&#x201D; YEA Category Retail Trade Communications & Utilities Restaurants & Bars Rental & Leasing Other Total General Tax Construction Tax Total Tax

YTD 2018 $ 3,399,635 805,207 549,029 304,412 142,191 $ 5,200,474

YTD 2017 $ 3,058,021 716,863 508,865 308,238 90,343 $ 4,682,329

2,909,431 8,109,905

1,750,612 6,432,941

$

217

$

% Change 11.2% 12.3% 7.9% -1.2% 57.4% 11.1% 66.2% 26.1%


“We move ahead confident that we are ready for the challenges that tomorrow will bring and ready to make the most of the beau ful connec ons that abound, right here, right now.” L. Kelly Udall, Town Manager

AR-TO-DATE THROUGH APRIL

218


SUPPORTING INFOR R

GLOSSARY Accrual Basis - A basis of accoun ng in which transac ons are recognized at the me they are incurred, as opposed to when cash is received or spent. Adopted - As used in fund, summaries, department and program summaries within the budget, represents the budget as approved by the Town Council. Alloca on -A part of a lump sum appropria on, which is designated for expenditure by specific organiza on units and/or for special purposes, ac vi es, or objects. Appropria on - A legal authoriza on granted by Town Council to make expenditures and to incur obliga ons for specific purposes. An appropria on is usually limited in amount and dura on when it may be expended. Assessed Valua on - A value that is established by the County Assessor for real and personal property to use as a basis for levying property taxes. Asset - Resources owned or held by a government, which have monetary value. Available (Undesignated) Fund Balance - Refers to the funds remaining from the prior year, which are available for appropria on and expenditure in the current year. Bonds - A wri en instrument to pay a sum of money at a specified interest rate, on a specific date or dates in the future, called maturity dates. The interest payments and the repayment of the principal are detailed in a bond resolu on or ordinance. Two common types of bonds are general obliga on and revenue bonds, which are most commonly used for construc on of large capital projects such as buildings, streets, and sewers. The difference between a note and a bond is that a bond is used for a longer period of me and requires more formality. Bond Refinancing - The payoff and re-issuance of bonds, to obtain be er interest rates and/or bond condi ons. Budget - A plan of financial opera on represen ng an es mate of proposed expenditures and the proposed means of financing them for a given period. This official public document reflects decisions, measures service needs, establishes the alloca on of resources and is the pecuniary plan for achieving goals and objec ves. Budget Calendar - The schedule of key dates or events, which the Town follows in the prepara on, adop on, and administra on of the budget. Budget Message - The opening sec on of the budget, which provides the Town Council and the public with a general summary of the most important budget issues, changes from recent fiscal years, and recommenda ons regarding the financial policy for the coming fiscal year. Budgetary Adjustment - A procedure to revise a budget appropria on either by Town Council approval, through the adop on of a supplemental appropria on ordinance for any interdepartmental or inter-fund adjustments, or by the Town Manager authoriza on to adjust appropria ons within a departmental budget. Budgetary Basis - This refers to the form of accoun ng u lized throughout the budget process. These generally take one of three forms: GAAP, Cash, Modified Accrual, or some type of statutory form. Budgetary Control - The control or management of a governmental unit or enterprise in accordance with an approved budget for the purpose of keeping expenditures within the limita ons of authorized appropria ons and available revenues. Capital Asset - Tangible assets cos ng $5,000 or more with a useful life of at least one year. Capital Budget - The appropria on of bonds or opera ng revenue for improvements to facili es and other infrastructure.

219


RMATION - GLOSSARY

Capital Improvements - Expenditures related to the acquisi on, expansion, or rehabilita on of an element of the government’s physical plant; some mes referred to as infrastructure. Capital Improvements Plan (CIP) - The CIP is a comprehensive plan of capital investment projects which iden fies priori es as to need, method of financing, cost, and revenues that will result during a five year period. The program is a guide for iden fying current and future fiscal year requirements and becomes the basis for determining the annual capital budget. Capital Outlay - Expenditures resul ng in the acquisi on or addi on to the government’s capital assets. Cash Basis - A basis of accoun ng in which transac ons are recognized only when cash is increased or decreased. Con ngency - A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted. Contractual Services - Services rendered to the Town in the form on contractual, professional, maintenance, and vehicle maintenance services. This also includes expenses for rentals, dues and memberships that may be charged by employees. Cost Center - An organiza onal budget/opera ng unit within each Town department or program. COLA - Cost Of Living Adjustment Debt - An obliga on resul ng from borrowing money or from the purchase of goods and services. Types of governmental debt include bonds, loans, me warrants, and notes. Debt Service - The amount of interest and principal the Town must pay each year on net direct long-term debt plus the interest it must pay on direct short-term debt. Deficit - The excess of an en ty’s liabili es over its assets or the excess of expenditures over revenues during a single accoun ng period. Department - A major administra ve division of the Town, which indicates overall management responsibility for an opera on or a group of related opera ons within a func onal area. Deprecia on - Consump on of the service life of fixed assets, due to normal wear, deteriora on, environmental elements, passage of me, and obsolescence. The por on of the cost of a capital asset charged as an expense during a specified period based on service life of the asset and ul mately expending the en re cost of the asset. Dis nguished Budget Presenta on Awards Program - A voluntary awards program administered by the Government Finance Officer Associa on to encourage governments to prepare budget documents of the highest quality. Encumbrance - The legal commitment of appropriated funds to purchase an item or service. To encumber funds means to set aside or commit funds for a future expenditure. Es mated Revenue - The amount of projected revenue to be collected during the fiscal year. Expenditure/Expense - Decreases in net financial resources in accordance with budgeted appropria ons. Expenditures include opera ng expenses such as the acquisi on of assets or goods and services. Expenditure Limita on - An amendment to the Arizona State Cons tu on, which limits annual expenditures of all municipali es. The limit is set by the Economic Es mates Commission based on popula on growth and infla on. All municipali es have the op on of Home Rule where the voters approved a four-year expenditure limit based on revenues received.

Fiscal Year - Time period designated by the Town signifying the beginning and ending period for recording financial transac ons. The Town has a fiscal year beginning July 1 and ending June 30.

220


SUPPORTING INFORMA A Franchise Fee - A fee paid by public service business (i.e., u lity) for the special privilege to use Town streets, alleys, and property in providing their services to the ci zens of the community. Full Time Equivalent (FTE) - A part- me posi on converted to the decimal equivalent of a full- me posi on based on, 2088 hours per year, or a full value of one for a full- me posi on. Func on -Ac vity, which is performed by one or more organiza onal units for the purposes of accomplishing a goal. Fund - An accoun ng en ty having a set of self-balancing accounts and records all financial transac ons for specific ac vi es or government func ons in a aining certain objec ves governed by special regula ons, restric ons, or limita on. Fund Balance - Fund Balance is the excess of resources over expenditures. The beginning fund balance represents the unused accumula on of resources from prior years (i.e., the previous year’s ending fund balance). General Obliga ons Bonds - Bonds that finance a variety of public projects and require voter approval. These bonds are backed by full faith and credit of the Town. Limita ons for bonding capacity are set by State Statute. Generally Accepted Accoun ng Principles (GAAP) -Uniform minimum standards for financial accoun ng and recording, encompassing the conven ons, rules, and procedures that define accepted accoun ng principles. Goal - A long-term, a ainable target for an organiza on - its vision of the future. Grant - Contribu ons or gi s of cash or other assets from another government to be used for a specified purpose, ac vity, or facility. Improvement Districts - Improvement Districts are formed consis ng of property owners desiring improvements, primarily street reconstruc on, to their property. Bonds are issued to finance these improvements, which are repaid by assessments on affected property owners. Indirect Cost - A cost necessary for the func oning of the organiza on as a whole, but which cannot be directly assigned, such as administra ve support, facility maintenance, or custodial services. Interfund Transfer - The movement of monies between funds of the same governmental en ty. Intergovernmental Revenue - Revenues from other governments in the form of grant, en tlements, shared revenues, or payments in lieu of taxes. Levy - To impose taxes for the support of government ac vi es. Long Term Debt - Debt with a maturity of more than one year a er the date of issuance. Modified Accrual Basis - Under the modified accrual basis of accoun ng, recommended for use by governmental funds, revenues are recognized in the period in which they become available and measurable, and expenditures are recognized at the me a liability is incurred pursuant to appropria on authority. Objec ve - A specific measurable and observable result of an organiza on’s ac vity, which advances the organiza on toward its goal. Opera ng Expenses - The cost of personnel, contractual services, supplies, and other costs required for a department to func on. Opera ng Revenue - Funds that the government receives as income to pay for ongoing opera ons, including such items as taxes, user fees, interest earnings, and grant revenues. Opera ng revenues are used to pay for day-to-day services. Opera ng Supplies - Costs of goods consumed by the Town in the course of its daily opera ons.

Opera ng Transfers - Legally authorized transfers from a fund receiving revenue to the fund through which the resources are to be expended.

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ATION - DEMOGRAPHICS

Pay-As-You-Go Financing - A term used to describe a financial policy by which the capital program is financed from current revenues rather than through borrowing. Performance Indicators - Measurable means of evalua ng the effec veness of a cost center in accomplishing its defined objec ves. Personnel Services - Cost related to compensa ng employees, included wages, insurance, payroll taxes, re rement contribu ons, allowances for clothing, and automobiles, training, conferences, and travel to mee ngs. Policy - A plan, course of ac on, or guiding principle designed to set parameters for decisions and ac ons. Program - A group of homogenous cost centers within a department; a departmental division. Program Goal - The underlying reason(s) for a department/division to exist and/or the service provided. Property Tax Levy - The total amount to be raised by general property taxes for purposes specified in the Tax Levy Ordinance. In Arizona, the property tax system is divided into a primary and secondary rate. Reserve - An account used to indicate that a por on of a fund’s assets are legally restricted for a specific purposed and is, therefore, not available for general appropria on. Reserve/Con ngency -A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted for. Resolu on - A special or temporary order of a legisla ve body requiring less formality than an ordinance or statute.

Resources -Total amounts available for appropria on including es mated revenues, fund transfers, and beginning balances. Revenue - Receipts from taxes, intergovernmental sources, and user fees or resources from voter-authorized bonds, system development fees, and grants. Risk Management - An organized a empt to protect a government’s assets against accidental loss in the most economical method. Secondary Property Taxes - An unlimited tax levy restricted to general bonded debt obliga ons and for voter approved budget overrides. Source of Revenue - Revenues are classified according to their source or point of origin. Tax Levy - The resultant product when the tax rate per one hundred dollars is mul plied by the tax base.

Taxes -Compulsory charges levied by a government for the purpose of financing services performed for the common benefit of the people. This term does not include specific charges made against par cular persons or property for current or permanent benefit, such as special assessments. Transfers In/Out - Amounts transferred from one fund to another to assist in financing the services for the recipient fund. User Charges - The payment of a fee for direct receipt of a public service to the party who benefits from the service.

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SUPPORTING INFOR R

ACRONYMS AELR ADEQ ADOR ADOT AGA AOC ASRS CAFR CFD CIIF CIP COLA CSD CST FIAC FTE GAAP GADA GARS GASB GFOA GO GV HR HURF JCEF LGIP LTAF M&C NSCP PAG PC PD PSPRS PW QC CFD RICO RS CFD RTA SUSD TAC TPT UERS VIPS VLT WIFA WW WWTP

Annual Expenditure Limita on Report Arizona Department of Environmental Quality Arizona Department of Revenue Arizona Department of Transporta on Associa on of Governmental Accountants Arizona Office of the Courts Arizona State Re rement System Comprehensive Annual Financial Report Community Facili es District Capital Infrastructure Improvement Fund Capital Improvement Plan Cost of Living Adjustment Con nental School District Construc on Sales Tax Finance and Investment Advisory Commi ee Full-Time Equivalent Generally Accepted Accoun ng Principles Greater Arizona Development Authority Grants and Restricted Sources (Fund) Government Accoun ng Standards Board Government Finance Officers Associa on General Obliga on (Bonds) Green Valley Human Resources Highway User Revenue Fund Judicial Court Educa on Fund Local Government Investment Pool Local Transporta on Assistance Fund Mayor & Council North Santa Cruz Park Pima Associa on of Governments Pima County Police Department Public Safety Personnel Re rement System Public Works Quail Creek Community Facili es District Racketeer Influenced & Corrupt Organiza ons Rancho Sahuarita Community Facili es District Regional Transporta on Authority Sahuarita Unified School District Technical Advisory Commi ee Transac on Privilege Tax (Sales Tax) Uniform Expenditure Repor ng System Volunteers in Police Service Vehicle License Tax Water Infrastructure Financing Authority of Arizona Wastewater Wastewater Treatment Plant

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RMATION - GLOSSARY

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Profile for sahuaritaaz

Town of Sahuarita - Approved Budget - 2019  

The 2019 budget document details the town's planned expenditures and goals in keeping with its Strategic Plan.

Town of Sahuarita - Approved Budget - 2019  

The 2019 budget document details the town's planned expenditures and goals in keeping with its Strategic Plan.