Mayor Loomis explained the logistics for the day.

Town Manager David Andrews gave an overview of the Town Manager’s recommended budget for FY 2008/09.  He stated that $3 Million has been cut from the departmental budgets due to the economic conditions.

Total Budget:  $201.0 million; an $82.2 million or 69% increase from the adopted FY 2007/08 Budget totaling $118.8 million.

Salaries: 1.5% COLA
             Merit/Step Increases up to 4%

Oro Valley FOP is requesting a 2.5% COLA.
Three options for funding the 2.5% COLA include:
~ An across-the-board 2.5% cut to all General Fund department operations and maintenance (O&M) Budgets. Smaller cuts would be necessary in the other Town funds (i.e. Highway, Transit, Stormwater, and Water Utility).
~Reconsideration of the current earmarked allocation of Town bed tax revenues to redirect a portion of those revenues to the General Fund.
~Consider renewal and extension of the utility sales tax (currently at 2%) that is slated to sunset on April 1, 2009.

Employee Benefits:
 
~15% increase in healthcare costs.
~Current estimated annual health insurance premium is: $1,726,546.

Retirement Contribution Rates:
ASRS    (.15%) Decrease
CORP    6.6% Increase
PSPRS   59% Increase

Personnel
Current Positions:           376.8
Recommended Positions:     5.0
TOTAL:                         381.8

Recommended Positions:
1 - Court clerk
1 - Safety and Risk Manager
1 - Senior Planner
1 - Assistant Planning and Zoning Administrator
.5 -  Office Assistant, Planning and Zoning
1 -   Meter Reader Supervisor
(.5) - Planning and Zoning Intern

Reclassifications:
Ten recommended

Market Adjustments:
Three recommended

Municipal Operations Center:
$30.4 million total

Water Rate Increase:
Monthly Increase:
Preferred - $2.99       Alternate - $2.17

Naranja Town Site
$48 million dollars if the bond passes in November of 2008.

Arroyo Grande Planning Area
Outside Counsel       $ 250,000
ESLO                      $ 175,000
Planner position        $   85,000
TOTAL                    $ 510,000

Reclaimed Water Phase II:
The extension will add 1,000 acre feet of reclaimed water. Bringing the total amount of reclaimed water to 2,500 acre feet.

Steam Pump Ranch:
$850,000 for capital improvements
$64,000 in routine maintenance costs

Community Funding Requests - process formalized this year. $429,000 recommended, subcommittee is recommending funding of $383,100. 
  

Action Item: Schedule a future Study Session on CAP Water and costs associated with that. (Water is an enterprise fund, which funds itself).

- Library Intergovernmental Agreement with Pima County changing - cost recovery 25% to 30% because of how county is reimbursing Town.  County removing the amount originally paid for IT and supplies.
- Reimbursements from County is declining.
Action Item: Future study sessions:
Discuss Pima County reimbursements to the town,Technology Replacement Plan for lap top computers donated to the library, and review a breakdown of separate library tax - what is Oro Valley's total and how this compares with what Pima County is paying for our library.
 

- Three positions requested - Senior Planner, Assistant Planning & Zoning Administrator, .5 Office Assistant.
- What was the amount of funding removed for expanding the distance for citizen notification effort from 300 feet to 600 feet?
- What is the detail behind the ($38,560) variance in the CPI & Clean-up program from FY 07/08 to FY 08/09.
- Cost of intern to work on CPI?
Action item - if given $500,000 what additional resources would be necessary?

- Research the budgeted cost of producing the Oro Valley Vista versus the previous year's black and white newsletter.
- Set policy and guidelines on distribution of the $1,500.00 budgeted for each Council member for minor Funding for Outside Sources.
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Mayor Loomis reviewed the topics for future budget sessions and study sessions as discussed.

Study Session adjourned at 4:30 p.m.