Interim Assistant Town Manager and Finance Director Stacey Lemos reviewed the mid-year budget update. She began with an overview of the General Fund:
| Adopted FY 2009/10 | Year to Date through December ’09 | Year End Estimated |
| Revenues | $27.9M | $12.5M | $26.4M |
| Expenditures | $29.5M | $12.9M | $27.6M |
| Increase/(Decrease) in Fund Balance | ($1.6M) | ($400k) | ($1.2M) |
She noted that the current fiscal year had a planned deficit of $1.6M; of which $1.2M was dedicated to one time non-recurring fees. She explained that:
~Revenues were estimated to be $1.5M under budget.
~Expenditures were estimated to be $1.9M under budget.
~The projected year end deficit of $1.2M was comprised of one time non-recurring items due to severance packages.
General Fund Revenues:
~Revenues expected $1.5M below budget
*Construction sales taxes expected at 30%, or $1.5M below budget
*Retail sales taxes expected at 22%, or $1.2M below budget
*Limited commercial development; VMS expansion delayed
*Single Family Residence (SFR) permits trending to budget
-32 permits issued through December
-Budgeted 60
*State shared revenues trending to budget
*Licenses and permits, charges for services, fines and interest income trending below budget
She reviewed the cumulative sales tax collections from Fiscal Year 2008/09 through December 2009. She noted that Retail, Utility and Restaurant/bar tax collections were above FY 2008/09. She stated that Construction and Hotel/Motel tax collections were below FY 2008/09.
She reviewed the General Fund's estimated expenditure savings of $1.9M:
| Vacancies/Hiring freeze | $674,000 |
| Department Operations and Maintenance Savings | $695,000 |
| Sales Tax Rebate Savings | $143,000 |
| Annexation Expenditures will not be incurred | $300,000 |
| Liability Insurance Premium Savings | $122,000 |
Ms. Lemos discussed the following funds:
~General Fund
*Deficit projected at $1.18M
-The result of one-time/non-recurring expenditures:
| Transfer to Steam Pump Ranch | $410,000 |
| Historic Inventory and ESLO | $150,000 |
| Construction of OVMP Police Substation | $350,000 |
| Open Enrollment Costs | $ 10,000 |
| Animal Licensing Feasibility Study | $ 10,000 |
| Election Costs | $140,000 |
| IT Virtual Data Center Project | $110,000 |
~Highway Fund:
| ADOPTED FY 2009/10 | YEAR TO DATE through DECEMBER | YEAR-END ESTIMATED |
| REVENUES | $4.7m | $1.8M | $3.8M |
| EXPENDITURES | $4.9M | $1.6M | $4.3M |
INCREASE/(DECREASE)
in FUND BALANCE | ($200k) | $200k | ($500k) |
She stated that the decrease in revenues was due to the lag in construction and the subsequent lack of construction sales taxes. She noted that the Pima Association of Governments (PAG) would reimburse the Town $100,000 for Town staff that spent time working on PAG projects.
Ms. Lemos noted that the Town Engineer believed that the Town’s road condition rating would fall as the result of spending $500-$600k on roadway surface treatments this year. She noted that the Town’s roadway surface treatments would be supplemented by Stimulus funds.
~Bed Tax Fund:
| ADOPTED FY 2009/10 | YEAR to DATE through DECEMBER | YEAR-END ESTIMATED |
| REVENUES | $1.3M | $378k | $844k |
| (Less GF Transfer) | ($700k) | ($294k) | ($700k) |
| EXPENDITURES | $500k | $156k | $407k |
INCREASE/(DECREASE)
in FUND BALANCE | $100k | ($72k) | ($263k) |
~Public Transit Fund:
| ADOPTED FY 2009/10 | YEAR to DATE through DECEMBER | YEAR-END ESTIMATED |
| REVENUES | $685k | $529k | $668k |
| EXPENDITURES | $658k | $257k | $630k |
INCREASE/(DECREASE)
in FUND BALANCE | $ 27k | $272k | $ 38k |
~Roadway Impact Fee Fund:
*Largest portion of the budget was $7M allotted for the Lambert Lane Widening Project
-The project would be rolled over into the next fiscal year
-Public Works Staff is working with PAG for a Transportation Improvement Plan (TIP) Amendment to provide funding for this project.
`Would provide funding for this project over the next five years
| ADOPTED FY 2009/10 | YEAR to DATE through DECEMBER | YEAR-END ESTIMATED |
| REVENUES | $7.0M | $576k | $3.5M |
| EXPENDITURES | $6.0M | $346k | $3.9M |
INCREASE/(DECREASE)
in FUND BALANCE | $1.0M | $230k | ($400k) |
~Stormwater Utility Fund:
*The Lomas de Oro project will roll into Fiscal Year 2010-2011
| ADOPTED FY 2009/10 | YEAR to DATE through DECEMBER | YEAR-END ESTIMATED |
| REVENUES | $2.7M | $297k | $1.2M |
| EXPENDITURES | $2.8M | $334k | $1.2M |
| ESTIMATED SURPLUS/(DEFICIT) | ($ 100k) | ($ 37k) | - |
Water Utility Fund Overview:
| ADOPTED FY 2009/10 | YEAR to DATE through DECEMBER | YEAR-END ESTIMATED |
| REVENUES | $16.9M | $6.1M | $14.6M |
| EXPENDITURES | $17.7M | $4.8M | $14.4M |
| ESTIMATED SURPLUS/(DEFICIT) | ($ 800k) | $1.3M | $ 200k |
Discussion noted the following:
~The cost for Management Studies was not included in expenditures
*The cost was not budgeted
*Projects were expected to be incurred in the next fiscal year
~Arizona Department of Transportation (ADOT) will spend $2M of Stimulus funds
~The Overall Condition Index (OCI) rating after surface treatments were completed was 80.1
*80.1 was considered quite high
~Pavement preservation was annual $2M project
~Lack of treatment could potentially cost more in the long run
*Possible to delay treatment for two years
-OCI would decrease to 78
-Would take time to raise the OCI rating
~Recovery Act Funds
*Money disbursed directly to ADOT
*A Staff member would work part time with ADOT when projects were active
~Staff time spent on Pima Association of Governments (PAG) projects were reimbursable by PAG
Transit Administrator Aimee Ramsey presented the item. She noted that expenses incurred for the Park and Ride were reimbursable by the Regional Transportation Authority (RTA).
Ms. Ramsey reviewed the funding sources for the Transit Services Division:
~47% or $302k from the General Fund
~27% or $179k from Local Transportation Assistance Fund (LTAF)
~9% or $59,983 from LTAF II
~9% or $58,568 from RTA Reimbursement
~8% or $50,900 from Farebox
~>1% or $2,469 from Miscellaneous
She reviewed the Expenditures:
~Expenditures currently under budget
~Staffing is at 66%
~2010 Projected Expenditures - $561,259
*66% or $373,190 to Personnel
*16% or $88k to Operations and Maintenance (O&M)
*9% or $50k to RTA Park and Ride
*7% or $36,869 to Transfer to Fleet
*2% or $13,200 to Capital Outlay
Ms. Ramsey discussed the current service levels:
~33.8% decrease in drivers on staff
~Average number of daily passengers capped at 60
*Averaged 70 riders daily last year
~No same-day service
~Volunteer staffing is volatile
*A base service level is needed with a fixed number of dependable drivers
~Service needs to be stabilized
Ms. Ramsey reviewed transit costs for Coyote Run:
| AREA | CURRENT FARE | FULL RECOVERY
with LTAF | FULL RECOVERY
without LTAF |
| ZONE A | $ 4 | $12 | $24 |
| ZONE B | $ 8 | $24 | $48 |
| ZONE C | $12 | $48 | $96 |
She noted that Transit was subsidized by local governments or an alternative tax.
She explained the elements of an Enterprise fund:
~Provides goods or services to the public for a fee that will allow the entity to be self-supporting
~Must have a consistent client base for adequate funding
~Works well for utilities
~Must benefit everyone
She summarized that no transit system paid for itself. She stated that, in order to gain public support, there must be a benefit for everyone.
Discussion noted the following:
~Advertising on a full size bus could capture $3,000
~A full wrap on a Coyote Run bus (covering the complete exterior) could capture $1,500
*Maintenance and cost to "wrap" the bus would be additional expenditures
*Advertising would be on the outside the bus only
-Buses were not equipped to place advertising on the inside
~Transit has a fleet of nine buses
~Riders turned away were mostly senior citizens
*ADA certified passengers typically book two weeks in advance
~The RTA paid $40 per hour or $179,000 annually for service in Oro Valley
*The RTA will review the option to terminate service on March 4, 2010
~Ridership remained low at 6 passengers
~Ridership along Oracle Road has been increasing
~A five mile one way cab ride cost is $9.00
~A cab ride to Tucson Mall would cost $22.00
~Most Coyote Run passengers could not use cab service due to the lack of assistance that the individuals would require
~Coyote Run is unique and the ridership is predominantly comprised of senior citizens.
Mayor Loomis opened the floor for public comment.
Oro Valley resident John Musolf stated that the public transit division should be eliminated. He noted that there were no alternatives offered in the presentation. He recommended that a non-profit organization take over this service.