[00:00:04]
>> TO ORDER? ROLL CALL, PLEASE.
[ CALL TO ORDER AND ROLL CALL]
>> COUNCILMEMBER KAI. COUNCIL MEMBER MURPHY?
>> COUNCIL MEMBER MURPHY IS ATTENDING THE MEETING VIA ZOOM, AND SHE IS ONLINE, CORRECT?
>> YEAH, I'M PRESENT. I CAN HEAR YOU.
>> PLEASE STAND FOR THE PLEDGE OF ALLEGIANCE.
FOLLOWED BY A MOMENT OF SILENCE.
>> PLEASE BE SEATED. APPROVAL OF AGENDA.
[ APPROVAL OF AGENDA]
>> ALL THOSE IN FAVOR? [BACKGROUND]
[ DISCUSSION/DIRECTION/POSSIBLE ACTION]
>> ITEM D1, RELATING TO BUDGET, REVIEW, DISCUSSION, CONSIDERATION, AND DIRECTION TO STAFF REGARDING THE FISCAL YEAR 2025-2026, MANAGER'S RECOMMENDED BUDGET FOR THE TOWN OF MARANA.
>> WE'RE ALL HERE TONIGHT TO TALK ABOUT SOMETHING THAT HAPPENS.
I HOPE SOME YEARS THAT WE WOULD HAVE TO. CAN WE SKIP IT? I RAISED THE QUESTION, WHY DO WE ALWAYS HAVE THESE STUDY SESSIONS IN THIS ROOM? I'VE HAD THAT QUESTION FROM OTHER COUNCIL MEMBERS.
I KNOW FROM MEMBERS OF OUR WATCHING AUDIENCE AT HOME.
IT'S BECAUSE WE WANT TO MAKE SURE THAT WE HAVE A GOOD CONVERSATION.
WE WANT TO MAKE SURE THAT EVERYBODY HAS THE OPPORTUNITY TO HAVE A REALLY GOOD DISCOURSE WITH AMONG STAFF AND COUNCIL.
THAT'S WHY WE HOLD THESE MEETINGS IN THIS ROOM AND SO PLEASE FEEL FREE TO DISCUSS TONIGHT'S ITEM.
WITH THAT, I WILL TURN IT OVER TO OUR MANAGER, TERRY ROSEMAN.
>> THANK YOU MR. MAYOR, VICE MAYOR AND MEMBERS OF COUNCIL.
BEFORE I ACTUALLY GET INTO THE PRESENTATION FOR TONIGHT, I DID WANT TO TAKE A MOMENT TO INTRODUCE SOMEBODY ACTUALLY SITTING BEHIND.
BUT DANIELLE TANNER, DANIEL, IF YOU COULD STAND UP, DANIEL IS THE NEW EXECUTIVE ASSISTANT IN THE TOWN MANAGER'S OFFICE.
AND WE FEEL VERY GRATEFUL TO HAVE HER AS A PART OF OUR TEAM HER FIRST DAY WAS YESTERDAY.
I WANTED THE COUNCIL TO BE INTRODUCED.
[APPLAUSE] LET'S JUMP INTO THE BUDGET HERE.
I'M SURE YOU ALL HAD THE OPPORTUNITY OVER THE PAST WEEK TO LOOK THROUGH THE BUDGET AND LOOK AT IT AS THE MAYOR HAS INDICATED, THIS IS SOMETHING WE DO EVERY YEAR.
IT'S NOT SOMETHING, HOWEVER, THAT IS PERFUNCTORY.
THERE'S A LOT OF MEAT AND SUBSTANCE BEHIND IT, A LOT OF REASON RATIONALE FOR WHY WE DO THIS AND YOU MISS MANY.
YOU PROBABLY NOTICED THAT WE DID MANAGE TO CUT THE BUDGET BY ABOUT $62 MILLION.
I'D LIKE TO SAY THAT WAS THE APPROVAL.
I WAS REALLY A BYPRODUCT OF THE FACT THAT WE HAVE A BUNCH OF CAPITAL PROJECTS THAT WERE COMPLETED OR REPLETE A BIG PORTION OF THAT THE MONTH, AND WE'LL TALK ABOUT THAT HERE A LITTLE BIT AS WELL.
THE BUDGET IS ABOUT $411 MILLION AND I WOULD BE REMISS WITH THE FIRST BUDGET MEETING WITHOUT MAYOR HONE.
WE DIDN'T MENTION THAT ACCORDING TO HIM, THE VERY FIRST BUDGET FOR THE TOWN OF MARANA WAS $40,000.
NOW, I DON'T KNOW IF THE RECORD REFLECTS THAT OR NOT, BUT THAT WAS SOMETHING HE WAS ALWAYS VERY FOND OF SAYING.
FROM $40,000 TO $411 MILLION, WE'RE GOING TO GET INTO THIS.
AS ALWAYS, JUST AN OUTLINE OF WHAT WE'RE GOING TO BE TALKING ABOUT TONIGHT, I GET ITEMS OF THE GORI SLIDES OF THE ACCOMPLISHMENTS, AND JOHN GETS STUCK WITH THE GORI SLIDE.
I WILL TOUCH ON THE ACCOMPLISHMENTS AND THEN GANI IS GOING TO TAKE IT FROM THERE.
TALK ABOUT THE OUTLOOK FROM AN ECONOMIC STANDPOINT.
WHAT ARE REVENUE PROJECTIONS ARE LOOKING LIKE A BUDGET OVERVIEW INVESTMENT SUMMARY.
WE STAND WITH THE MONIES IN THE GENERAL FUND AND OTHER FUNDS,
[00:05:03]
AND THEN TALK ABOUT SELECTED BUDGET SUMMARIES.I'LL JUMP RIGHT INTO ACCOMPLISHMENTS, ACTUALLY BEFORE I GET TO ACCOMPLISHMENTS.
I REALIZE THAT THIS IS SOMETHING THAT A COUPLE OF SLIDES THAT WE PUT ON EVERY SINGLE YEAR AND I KNOW THIS ISN'T SO MUCH FOR THE PURPOSE OF EDUCATING THE COUNSEL.
I'VE JUST BEEN NOTIFIED BY PATRICK KAVANAGH THAT HE IS ALSO ONLINE RIGHT NOW.
YOU CAN MARK HIM AS A PENDING.
>> I BELIEVE THAT WE UNLESS WE'VE CHANGED OUR RESOLUTION AND RESOLUTIONAL ALLOW ONE MEMBER TO APPEAR BY.
>> JUST NOT HAVE HIM ON THE ROLE CALL.
HE CAN STILL LISTEN, I SUPPOSE. BUT NOT PARTICIPANT.
>> SILL LISTEN, BUT NOT PARTICIPATE.
>> VERY GOOD. THANK YOU. AGAIN, THESE NEXT TWO SLIDES REALLY AREN'T SO MUCH FOR THE PURPOSE OF EDUCATING ANYBODY PERHAPS IN THIS ROOM, BUT CERTAINLY AS A REMINDER OF THE FOUNDATION OF WHAT HAS REALLY BEEN THE CORNERSTONE VALUES FOR THIS COMMUNITY FOR A VERY LONG TIME, AND IT WAS THIS COMMUNITY WAS CREATED, WAS FORMULATED BY PEOPLE WHO WERE HIGHLY DEDICATED TO SEEING THIS COMMUNITY COME IN INTO BEING A GROUP OF PEOPLE WHO GATHERED TOGETHER AND WORKED TOGETHER AS A TEAM, DEMONSTRATED GREAT RESPECT FOR ONE ANOTHER AND FOR THE RESIDENTS OF THIS COMMUNITY AND WHO EXHIBITED INCREDIBLE INNOVATION IN THE WAY THEY WENT ABOUT FORMULATING THIS COMMUNITY, RECOGNIZING THE THINGS THAT HAD TO BE ACCOMPLISHED.
TAKING SIGNIFICANT RISK IN ORDER FOR THIS COMMUNITY TO BE HERE.
THOSE CORE VALUES ARE REALLY THE FOUNDATION FOR THE CULTURE THAT WE ARE WORKING TO BUILD HERE AT THE TOWN OF MARANA AND I WILL SAY THAT OVER THE YEARS, I THINK WE CONTINUE TO MAKE GREATER AND GREATER STRIDES IN THIS AREA.
FOR THE RESIDENTS OF OUR COMMUNITY TO KNOW AND UNDERSTAND THOSE THINGS THAT WE HOLD VERY NEAR AND DEAR TO US, AND I'LL JUMP INTO THE NEXT SLIDE THAT REALLY SETS THE STAGE FOR THIS ORGANIZATION.
TALKING ABOUT OUR VISION, IT'S SOMETHING WE DO ALL THE TIME HERE, OUR VISION AND OUR MISSION, SOMETHING THAT EVERYBODY IS VERY FAMILIAR WITH, AND THAT'S BECAUSE IF YOU DON'T KNOW WHERE YOU'RE GOING, ANY ROAD WILL GET YOU THERE, AND PEOPLE WILL GO WHATEVER DIRECTION THEY WANT TO GO.
WE HAVE A VERY CLEAR VISION, AND THAT VISION TELLS US, HERE'S WHERE WE'RE HEADED, AND WHERE WE'RE HEADED IS WHERE A TRAIL BLAZING COMMUNITY.
RAISING THE BAR FOR THE BEST QUALITY OF LIFE.
I TALK ABOUT ALL THE TIME WITH OUR STAFF, AND I THINK IT'S IMPORTANT FOR OUR COMMUNITY TO KNOW THAT WE'RE HERE FOR THE SOLE PURPOSE OF HELPING PEOPLE HAVE A BETTER DAY.
THAT'S WHAT RAISING THE BAR FOR THE BEST QUALITY OF LIFE IS, AND THAT'S ONE INTERACTION, ONE ENCOUNTER AT A TIME.
I THINK OUR STAFF IS VERY COMMITTED TO DOING THAT.
THAT'S WHERE WE'RE HEADED AND HOW DO WE GET THERE? WE PROVIDE FIVE STAR SERVICE.
I KNOW THAT AT VARIOUS TIMES IT'S BECOME A FUNNY THING, BUT IT REALLY IS A VERY REAL THING FOR THE PEOPLE IN THIS ORGANIZATION AND I UNDERSTAND WHAT THAT MEANS.
I DON'T THINK IT'S ANY COINCIDENCE THAT THE TOWN OF MARANA HAS THE ONLY DOUBLE FIVE STAR RESORT IN THE ENTIRE STATE, AND THIS ORGANIZATION IS STRIVING TO BE THE ONLY FIVE STAR GOVERNMENT ENTITY IN THE STATE OF ARIZONA.
ALL OF THAT IS SAID FOR THE PURPOSE OF UNDERSTANDING WHY WE'RE HERE TONIGHT, WHICH IS TO TALK ABOUT BUDGET.
YOU CAN'T TALK ABOUT THE MONIES THAT WE BRING INTO THIS COMMUNITY, THE TAXES THAT ARE COLLECTED FROM THE RESIDENTS AND FROM THOSE WHO VISIT US WITHOUT TALKING ABOUT WHAT IT IS WE'RE DOING WITH THAT MONEY.
THIS NEXT PORTION IS REALLY ABOUT EXPLAINING, EVERY SINGLE ONE OF YOU HAVE BEEN INVOLVED IN ALL OF THESE THINGS I'M ABOUT TO TALK ABOUT, SO YOU'RE WELL AWARE OF THEM.
I DO THINK THAT SOMETIMES IT'S VERY EASY TO LOSE SIGHT OF HOW MUCH GOES ON IN THIS TOWN.
WE'RE GOING TO RUN THROUGH, WE'RE NOT GOING TO RUN THROUGH ALL OF THEM AND WE WILL BE HERE ALL NIGHT.
BUT WE'RE GOING TO HIGHLIGHT A NUMBER OF ACCOMPLISHMENTS, AND I THINK IT REALLY DOES SPEAK TO OUR COMMUNITY AND LET OUR COMMUNITY KNOW WHAT WE'RE DOING WITH THE TAX DOLLARS HERE.
NUMBER 1 ON THE LIST, YOU CAN'T TALK ABOUT ACCOMPLISHMENTS WITHOUT TALKING ABOUT THE MARK.
WE ARE LITERALLY A WEEK AND A HALF AWAY FROM OPENING THE MARANA AQUATICS A RECREATION CENTER.
THIS HAS BEEN A HUGE ENDEAVOR,
[00:10:01]
A VERY BOLD MOVE FROM THE COUNCIL SEVERAL YEARS AGO TO RECOGNIZE THAT THIS WAS THE NUMBER ONE THING THAT OUR COMMUNITY WANTED AND TO SAY, GIVE DIRECTION TO JIM CONROY AND TO THE REST OF US AS STAFF TO SAY, MAKE THIS HAPPEN AND MAKE IT HAPPEN NOW, NOT 10 YEARS FROM NOW.I THINK JIM WOULD AGREE WITH ME QUITE INCREDIBLE THAT YOU TALKED ABOUT IT FOUR YEARS AGO, AND HERE WE ARE WITH A COMPLETED BUILDINGS.
KUDOS TO THE COUNCIL AND ALL OF STAFF FOR THAT.
THE NEW SHARED USE PATH AT CALPORTLAND, THAT WAS SEVEN YEARS IN THE MAKING.
IT TOOK SEVEN YEARS OFF OF JAMES LIFE.
PUTTING THAT AGREEMENT TOGETHER, BUT SHE GOT IT DONE AND GOT IT ACROSS THE FINISH LINE.
OUR PARKS FOLKS WERE ABLE TO OPEN THAT UP AND WHAT AN INCREDIBLE AMENITY FOR OUR ENTIRE COMMUNITY, NOT JUST THE PEOPLE IN NORTH MARANA, BUT TYING ALL OF NORTH MARANA TO THE REST OF OUR COMMUNITIES THROUGHOUT NEIGHBORHOODS THROUGHOUT.
WE'RE UNDERWAY FOR A SIGNIFICANT PARK THAT'S GOING TO BE SAGUARO BLOOM.
THEY HAVE LITERALLY NO PARK AMENITIES OVER THERE.
THIS IS GOING TO BE A VERY WELCOME AMENITY FOR THOSE RESIDENTS IN THAT AREA.
PHASE 1 IS NEAR COMPLETION AND WE'LL START PHASE 2, NOT TOO FAR IN THE DISTANT FUTURE.
I THINK WE'LL BE COMPLETING A SOMETIME ABOUT THIS TIME NEXT YEAR.
>> LITTLE BIT BEFORE. EARLY PART OF 2026.
THEY'RE GOING TO HAVE BASEBALL FIELDS AND SOCCER FIELD, AND JUST A WONDERFUL NUMBER OF AMENITIES THERE, BASKETBALL COURTS, ETC.
I THINK PICKLEBALL COURTS TO PICKLEBALL COURTS THREE OF THEM.
KUDOS TO THE FINANCE DEPARTMENT AND MELISSA AND A NUMBER OF OTHER PEOPLE WORKED REALLY HARD IN PUBLIC WORKS TO SECURE FUNDING FOR THE CORTARO INTERCHANGE.
OUR COMMUNITY HAS BEEN GROUSING PERHAPS ABOUT THE NEED FOR IMPROVEMENTS THERE.
ALTHOUGH THE COUNCIL MADE SOME MOVES TO IMPROVE THAT MANY YEARS AGO, IT'S CLEAR THAT WE HAVE TO DO A GREAT SEPARATED INTERCHANGE THERE.
OBTAINING $20 MILLION TO HELP WITH THE DESIGN OF THAT, AND WE JUST WERE INFORMED YESTERDAY THAT ADOT IS GOING TO PROVIDE ANOTHER $64 MILLION TO THAT FOR THE DESIGN AND SOME OF THE LAND ACQUISITION AND THINGS OF THAT NATURE.
THAT WAS A YEAR LONG PROJECT, AT LEAST, THAT WAS SPEARHEADED BY OUR PUBLIC WORKS DEPARTMENT AND A CONSULTANT, AND THAT'S GOING TO REALLY HELP US AS WE CONTINUE TO PLAN FOR THE FUTURE.
THE COUNCIL HAS GIVEN A SPECIFIC DIRECTION TO US AS STAFF THAT TRANSPORTATION IS A NUMBER ONE PRIORITY.
WITH THAT, WE HAVE A COUPLE OF PROJECTS THAT ARE WELL UNDERWAY, AND WE CERTAINLY WITHIN A YEAR.
TWIN PEAKS ROAD PASS WAGING PROJECT IS WELL UNDERWAY.
IF YOU HAVEN'T GOTTEN OUT THERE TO SEE THAT, IT'S REALLY BEAUTIFUL.
AND TANGERINE ROAD WAGING IS COMING RIGHT ALONG AS WELL.
THE EASTBOUND LANES HAVE BEEN LAID DOWN AND THEY'RE WORKING NOW ON THE EASTBOUND LANES.
I THINK WE'RE GETTING CLOSE TO GETTING A PERMIT FOR THE IMPROVEMENTS THAT WE NEED TO DO TO THE MARANA INTERCHANGE.
ALL OF THOSE THINGS, VERY BIG PROJECTS FOR OUR COMMUNITY.
A LOT OF MONEY GOES INTO THOSE.
I'M NOT TELLING ANYBODY ANYTHING THAT THEY DON'T ALREADY KNOW, WHEN I SAY, $50 MILLION FOR THESE PROJECTS IS WHAT WE'RE LOOKING AT.
A LOT INVESTED INTO THESE PROJECTS.
WE DID GET THE PROPOSAL TO PARTNER WITH SOMEBODY TO DEVELOP OUR DOWNTOWN.
WE SELECTED SOMEBODY, AND WE ARE WORKING NOW TO SOLIDIFY AN AGREEMENT.
THAT WILL GET US DOWN THE ROAD IN TERMS OF DESIGN AND CONSTRUCTION WITHIN THE YEAR, SO WE'RE VERY EXCITED ABOUT THAT.
AGAIN, SOMETHING THAT THE COUNCIL HAS GIVEN DIRECTION FOR AND HAS WANTED FOR A VERY LONG TIME TO KNOW THAT WE'RE RIGHT ON THE PRECIPICE OF THAT BECOMING A REALITY IS CERTAINLY EXTREMELY EXCITING.
GREAT VIDEO THAT WE HAD AT THE STATE OF THE TOWN BY STEPHANIE BOW, WHERE YOU REALLY GET TO SEE THE THINGS THAT WE HAVE AVAILABLE FOR PEOPLE IN THIS COMMUNITY, AND THERE'S SO MUCH PACKED INTO THAT,
[00:15:02]
AND THAT'S SOMETHING THAT WE BE VERY HELPFUL FOR US MOVING FORWARD.WE SUCCESSFULLY LAUNCHED A NEW WATER BILLING SYSTEM.
I KNOW THIS WAS SPECIFICALLY PUT INTO THE PRESENTATION FOR VICE MAYOR BECAUSE DRAINAGE IS A VERY YEAR AND YEAR.
SHE LOVES TALKING ABOUT IT, SO WE WANTED TO MAKE SURE WE GOT THAT ONE IN.
WE LAUNCHED A NEW TOWN WEBSITE.
I WILL SAY WE'VE GOTTEN INCREDIBLE REVIEWS FROM THE COMMUNITY ON THE IMPROVEMENTS THAT WERE MADE TO THAT.
TIP OF THE HAT TO VICK HALFWAY AND HER TEAM ON THAT.
MPD. AS WE KNOW, WE GOT A WORLD CLASS POLICE DEPARTMENT, A WORLD CLASS LEADER AND CHIEF BRIDGET LEADING TO HEAL AND THEY WERE SUCCESSFUL AND BEING RE-ACCREDITED.
THIS IS THE FIRST RE ACCREDITATION OR YOUR SECOND FIRST RE ACCREDITATION SECOND, SO IT WAS THE SECOND. I THOUGHT IT'S BEEN A WHILE.
SECOND RE ACCREDITATION, AND THAT JUST MEANS THAT THEY'RE ATTAINING THE VERY HIGHEST STANDARDS AND EXPECTATIONS IN THE LAW ENFORCEMENT PROFESSION.
WITH BRINGING ON AMANDA, OUR ORG DEVELOPMENT MANAGER INTO THE ORGANIZATION, WE ARE TAKING SIGNIFICANT STRIDES, AND I'LL TIP MY HAT TO CURRY HALE BECAUSE HE'S TOLD ME FOR YEARS, WE NEED TO GET THIS ORG DEVELOPMENT MANAGER.
THIS PERSON IS GOING TO HELP TAKE US TO THE NEXT LEVEL, AND WE ARE ABSOLUTELY SEEING THAT.
WITH THE TRAINING THAT SHE'S PUTTING ON, WITH THE MENTORSHIP PROGRAM THAT SHE'S PUTTING TOGETHER, THE SUPERVISOR ACADEMY, ALL OF THOSE THINGS ARE REALLY MAKING THIS ORGANIZATION GEL IN INCREDIBLE WAY AND PROVIDING OR PRODUCING BETTER LEADERS IN HE ORGANIZATION.
TRANSPORTATION MASTER PLAN WE ALREADY TALKED ABOUT THAT. THAT'S UNDER TWICE.
FACILITIES MASTER PLAN, KICKED OFF THE TOURS OF MASTER PLAN AND LAUNCHED NEW DISCOVER MARANA WEBSITE.
I THINK THOSE ARE ALL OF THE ACCOMPLISHMENTS.
>> ANY QUESTIONS FROM THE COUNCIL ON ANY OF THOSE THINGS WE COVERED HERE ON THE ACCOMPLISHMENTS OF THINGS.
MOVING RIGHT INTO THIS, AND I'M GOING TO SLIDE THE COM DOWN TO GANI.
THIS IS THE ORDER IN WHICH HE'S GOING TO GO THROUGH THINGS.
I WILL TURN THINGS OVER TO HIM TO PRESENT THE NUMBERS.
>> THANK YOU. MR. MAYOR, VICE MAYOR, COUNCIL MEMBERS.
SIMILAR TO PREVIOUS YEARS, WE ARE HAPPY AGAIN TO PRESENT YOU WITH A COMPLETE BUDGET AT THIS STAGE.
WE'VE BEEN DOING THIS NOW FOR THE LAST FEW YEARS.
BEFORE WE USED TO DO JUST SELECT FUNDS, BUT WE'RE HAPPY AND FORTUNATE TO BE ABLE TO GIVE YOU A COMPLETE BUDGET AT THIS STAGE.
HAVING SAID THAT, WHAT WE'RE LOOKING FOR TODAY, AS THE MAYOR POINTED OUT, IS ANY FEEDBACK, ANY DIRECTION, FROM WHAT YOU'VE SEEN, FROM WHAT YOU'VE READ, FROM ANY THOUGHTS THAT YOU HAVE.
AS WE CONTINUE TO GO THROUGH THIS BUDGET PROCESS, WE CAN MAKE THOSE ADJUSTMENTS, WE CAN MAKE THOSE REFINEMENTS.
THIS IS OUR FIRST MANAGER'S RECOMMENDED BUDGET.
OUR NEXT ITERATION, WHICH WILL BE IN A FEW WEEKS FROM NOW.
WHEN WE COME BACK TO YOU, WILL INCLUDE ANY COMMENTS OR FEEDBACK FROM COUNSEL, BUT ALSO ANY REFINEMENTS, ADDITIONS, ANYTHING THAT MIGHT HAVE BEEN MISSED OR ADJUSTMENTS FROM THE DEPARTMENTS.
AT THAT POINT, WE WILL ESTABLISH A CEILING FOR THE BUDGET.
BUT FOR NOW, WE'RE FORTUNATE ENOUGH TO HAVE THE TIME TO TALK ABOUT IT AND TO PRESENT YOU WITH WHAT NORMALLY DOESN'T CHANGE DRASTICALLY AND TENTATIVE BUDGET.
WITH THAT, I'M GOING TO START OFF BY TAKING A QUICK LOOK AT THE ECONOMY.
THE BEST WAY TO [INAUDIBLE] THAT THIS IS TO SAY THAT I'M GOING TO BE AS BRIEF AS POSSIBLE WITH SOME OF THE SLIDES THAT DEAL WITH THE ECONOMY AND SOME OF THE REVENUES, BUT PLEASE FEEL FREE TO STOP ME AND ASK ANY QUESTIONS OR ADD ANY COMMENTS.
A LOT HAS BEEN HAPPENING JUST IN THE LAST FEW WEEKS IN A MONTH OF APRIL.
WHEN WE DEVELOPED OUR ECONOMIC OUTLOOK, WE LOOKED AT WHAT THE STATE WAS PROVIDING.
WE LOOKED AT THOSE DATA POINTS, AND THIS IS THE INFORMATION THAT WE ALSO PRESENTED TO YOU IN FEBRUARY WHEN WE DID THE COUNCIL RETREAT.
WE ARE STILL, EVEN WITH REVENUES THAT HAVE BEEN ADJUSTED BY THE STATE JUST LAST WEEK.
[00:20:06]
SOME OF THESE NUMBERS ARE A LITTLE LOWER OF WHAT THE STATE IS EXPECTING TO GET ON THEIR FORECAST.FOR 2025, THEY'RE EXPECTING INSTEAD OF 2.7 MAYBE ABOUT 2.6.
FOR FISCAL YEAR 26 NEXT FISCAL YEAR, THEY'RE NOW LOOKING AT IT AND THEY'RE SAYING, WELL, WE THINK IT'S GOING TO BE MAYBE CLOSER TO 2.8% INSTEAD OF 3.4 THAT THEY HAD ORIGINALLY LOOKED AT IN JANUARY.
EVEN WITH THOSE CHANGES THAT THEY'RE LOOKING AT, WE'RE STILL GROWING.
THEY'RE STILL SEEING THE ECONOMY AT THE STATE LEVEL GROWING, BUT A LITTLE BIT SLOWER THAN ANTICIPATED WITH THE INFORMATION THEY HAVE SO FAR.
AGAIN, THIS SITUATION IS FLUID FOR EVERYBODY, INCLUDING OURSELVES.
WE'RE GOING TO CONTINUE TO MONITOR WHAT IS HAPPENING.
THE GOOD NEWS THAT I CAN SHARE WITH YOU AT THIS STAGE IS THAT WE CONTINUE TO PRESENT A BALANCED BUDGET.
OUR ONGOING REVENUES COVER OUR ONGOING EXPENSES.
NOT ONLY THAT, BUT IN THE GENERAL FUND, AGAIN, THIS YEAR, WE'RE FORTUNATE ENOUGH AFTER MAKING ALL THE INVESTMENTS THAT WE HAVE MADE THAT WE WILL COVER AS WE MOVE FORWARD WITH THIS PRESENTATION.
AFTER ALLOWING DEPARTMENTS TO LOOK AT THEIR BUDGETS AND ADJUST FOR ANY MARKET ADJUSTMENTS FOR ANY NEEDS THAT THEY HAVE THAT WERE JUSTIFIED THROUGH THE PROCESS.
AT THIS POINT, WITH THE REVENUES AS THEY SIT AND THE EXPENSES AS PRESENTED, WE ARE STILL ESTIMATING THAT THE GENERAL FUND HAS UNUSED ONGOING CAPACITY OF ABOUT $2.6 MILLION.
THAT'S JUST A GOOD STARTING POINT FOR US TO SAY, EVEN IF OUR REVENUE NUMBERS CHANGE A LITTLE BETWEEN NON WHAT THE FINAL BUDGET IS, WE PROBABLY WILL BE ABLE TO WEATHER THE STORM WITHOUT HAVING TO MAKE ANY RADICAL CHANGES TO OUR OVERALL BUDGET AS PRESENTED HERE TODAY.
LOOKING AT MORE OF A NATIONAL LEVEL BUT ALSO A LITTLE BIT LOW.
THE NATIONAL UNEMPLOYMENT RATE HAS BEEN GOING UP OVER THE LAST FEW MONTHS.
WHEN WE PRESENTED IN FEBRUARY, IT STOOD AT ABOUT 4%.
NOW IT STANDS AT ABOUT 4.2% AS OF LAST MONTH.
THAT'S STILL A RESPECTABLE NUMBER.
THAT STILL MEANS ACCORDING TO MOST ECONOMISTS THAT WE DON'T HAVE A HUGE UNEMPLOYMENT ISSUE AT THIS POINT.
NATIONAL INFLATION IS ABOUT 2.4% AS OF LAST MONTH.
THE FED RATE, THIS IS THE ONE THING THAT IN SOME OF OUR ESTIMATES, WE EXPECTED THE FED TO CUT RATES A LITTLE FASTER THAN THEY ARE AND THEN THEY'RE PLANNING TO.
RIGHT NOW, THE LAST COMMUNICATION IS THEY'RE GOING TO LOOK AT DATA AND CHANCES ARE IF THEY DO ANY CUTS, IT WILL NOT BE MORE THAN A HALF A PERCENT FROM THIS POINT BETWEEN NOW AND THE END OF THE CALENDAR YEAR.
BUT THEY KEEP POINTING OUT THAT THE DATA WILL REALLY LEAD THEM TO WHAT HAPPENS OVER THE NEXT SEVERAL MONTHS IN THIS CALENDAR.
FOR NOW FROM WHAT WE SEE IN OUR NUMBERS, LOOKING AT ALL OF OUR REVENUES THROUGH THE MONTH OF MARCH.
WE ACTUALLY HAVE ALL OF OUR IMPORTANT REVENUES, OUR SALES TAXES, OUR STATE SHARE REVENUES.
THEY'RE COMING IN PRETTY MUCH WHERE WE WANT TO SEE THEM.
WE'RE ACTUALLY SEEING THREE QUARTERS THROUGH THE YEAR COLLECTING ABOUT THREE QUARTERS OF OUR REVENUES, WHICH IS GREAT.
WE'RE RIGHT ON THE MONEY OR IN SOME CASES, JUST A LITTLE BIT ABOVE THAT.
FOR NOW, WE'RE STILL DEALING LOCALLY WITH A STABLE REVENUE STREAM.
BUT AGAIN, WE'RE GOING TO SEE WHAT HAPPENS OVER THE NEXT FEW MONTHS? WE'RE GOING TO SEE WITH EVERYTHING THAT'S HAPPENING ON THE GLOBAL STAGE, WHAT IMPACT THAT MAY OR HOPEFULLY MAY NOT HAVE ON US? YES, SIR.
>> QUICK QUESTION, YOUR HONOR. IF YOU READ YOUTUBE OR WHATEVER THEY'RE SAYING, WE'RE IN A RECESSION.
WE'RE A HEAD OF THAT WAVE OR WHATEVER, YOU KNOW.
I KNOW OUR BUDGET IS BASED VERY CONSERVATIVELY, WHICH I THINK IS VERY GOOD.
BUT WOULD THAT BE AN IMPACT IF A RECESSION GOING TO SHOW UP PROBABLY TOWARDS THE MID OR END OF THE YEAR? HOW WOULD THAT IMPACT OUR BUDGET? OR DO YOU SEE ANYTHING WE CAN PREPARE FOR IT?
>> MR. MAYOR, VICE MAYOR, COUNCIL ON KAI.
I THINK THAT THERE IS A POSSIBILITY RIGHT NOW FROM EVERYTHING THAT I SEE IN THE NEWS.
THERE IS PRETTY MUCH EVERY OPINION OUT THERE THAT THERE MAY BE A RECESSION, THERE MAY NOT BE A RECESSION, IT MIGHT BE SLOW GROWTH.
[00:25:02]
REALLY, IT'S VERY EARLY TO TELL, BUT IN THE HYPOTHETICAL THAT THERE IS A RECESSION, I THINK WE ARE IN A VERY STRONG POSITION TO WEATHER IT BEING CONSERVATIVE.HAVING THE RESERVES THAT WE HAVE HAD CONSISTENTLY, WE WILL SEE THE SLIDE FOR THE GENERAL FUND SPECIFICALLY.
HAVING MENTIONED EARLIER THAT WE HAVE ON OUR REVENUE SIDE, ABOUT $2.6 MILLION OF ONGOING RECURRING REVENUES THAT WE CAN SEE REDUCE COMING INTO US AS REVENUE BEFORE WE HAVE TO REALLY WORRY ABOUT WHAT DO WE DO NOW.
AT THIS POINT, I BELIEVE, WITH THE STEPS THAT COUNSEL HAS TAKEN IN THE PAST, WITH THE STEPS THAT THE TOWN MANAGER'S OFFICE HAS REALLY TAKEN OVER THE LAST SEVERAL YEARS OF MAKING A POINT OF INVESTING IN THE TOWN, INVESTING IN THE DEPARTMENTS AND WHAT THE CITIZENS NEED.
BUT NOT JUST SPENDING MONEY JUST BECAUSE WE MIGHT HAVE IT.
I THINK THAT ATTITUDE AND THE CONSERVATIVE APPROACH THAT WE TAKE IN GENERAL IS GOING TO BENEFIT US IF WE SEE A DOWNTURN.
>> WITH THAT, WE STILL SEE SLIGHT OVERALL GROWTH IN SOME OF OUR CATEGORIES.
WE STILL ARE AN ATTRACTIVE COMMUNITY.
BUSINESSES STILL WANT TO LOCATE HERE.
IN THAT RESPECT, I THINK THAT CONTINUES TO BE GOOD NEWS FOR US, AND WE STILL CONTINUE TO SEE POPULATION GROWTH BECAUSE OF ALL THE BUILDING THAT WE HAVE, ESPECIALLY WITH RESIDENCES AND SINGLE FAMILY RESIDENTIAL CONSTRUCTION.
WE WILL COVER MORE OF THAT IN A LITTLE BIT.
OVERALL, THE REVENUES OUTLOOK, I'M GOING TO GO PRETTY FAST HERE BECAUSE WE REALLY DIDN'T CHANGE MUCH FROM WHAT YOU SAW IN FEBRUARY.
WE STILL PRETTY MUCH EXPECT A $46.6 MILLION ALMOST AT THE SAME LEVEL AS WE ANTICIPATED WILL GET BY THE END OF THIS.
THE ONE AREA WHERE WE ADJUSTED IS CONTRACTED SALES TAX BECAUSE WE WERE VERY CONSERVATIVE IN THE PAST.
WE ARE ADJUSTING THAT TO COME CLOSER TO WHAT WE'VE BEEN TRENDING RATHER THAN WHAT WE THOUGHT MIGHT HAPPEN IN THE PAST.
WITH STATE SHARED REVENUES, AGAIN, WE'RE WE WERE EXPECTING A 10% DECREASE ON THE URBAN REVENUE SHARE.
THAT'S THE INCOME TAX DISTRIBUTION THAT THE STATE SHARES WITH ALL MUNICIPALITIES.
THOSE REVENUES HAVE COME IN BETTER FOR THE STATE, AND AS A RESULT, WE ACTUALLY DON'T EXPECT A DOUBLE DIGIT DROP IN THAT AREA.
WE EXPECT MAYBE A DROP AROUND 2.6%.
GREAT NEWS FOR US, WE WILL STILL SEE SOME INCREASE THERE.
THIS IS ONE AREA FROM MY COMMENT EARLIER, FROM WHAT THE STATE IS LOOKING AT.
WHERE WE ARE WAITING FOR MORE INFORMATION FROM THE LEAGUE OF CITIZEN TOWNS AND FROM THE STATE TO SEE IF WE NEED TO MAKE ANY ADJUSTMENTS.
BUT RIGHT NOW, BASED ON TREND AND BASED ON WHAT WE HAVE, WE FEEL FAIRLY COMFORTABLE THAT IF THERE ARE ANY CHANGES, HOPEFULLY THAT WILL NOT BE SIGNIFICANT FOR WHAT WE HAVE PRESENTED HERE.
LOOKING AT LICENSES FEES AND PERMITS.
THIS IS THE PICTURE OVER THE LAST FEW YEARS AND THROUGH THE END OF MARCH FOR FISCAL YEAR 25.
IF YOU RECALL FOR FISCAL YEAR 25, WE BUDGETED ABOUT 161 PERMITS.
THAT'S WHAT WE THOUGHT WE WERE GOING TO SEE COME TO US.
TODAY, I GOT THE NUMBERS, WHAT WE HAVE ISSUED FOR SFRS AND CUSTOM HOMES THROUGH THE DAY TO DAY, IT'S ABOUT 61.
THROUGH MARCH, WE'RE AVERAGING ABOUT 78, IT LOOKS LIKE WE SHOULD BE ABLE TO STAY ON THAT AVERAGE THROUGH THE END OF THIS MONTH.
IF WE ASSUME WE'RE GOING TO GO THROUGH THAT FOR THE REST OF THE YEAR, HOPEFULLY WE WILL BE CLOSE TO 1,000 PERMITS, 915 PLUS, HOPEFULLY.
IF OUR HOME BUILDERS REALLY DO WHAT THEY DID LAST MONTH, OR IT WAS OVER 100 PERMITS, WE MIGHT BREAK THEN THOUSAND AND GET CLOSE TO OUR BUDGET.
LOOKING THEN AT OUR REVENUES, IF YOU WILL RECALL, THIS IS ONE AREA, I WILL SPEND ANOTHER MINUTE, JUST AS A REMINDER.
THESE NUMBERS HAVE NOT CHANGED FROM WHEN WE PRESENTED IN FEBRUARY, BUT I JUST WANTED TO REMIND THAT THE REASON WE HAVE THE 786 PERMITS IS NOT DUE TO LACK OF INTEREST OR DESIRE FROM HOMEBUILDERS TO COME TO MARANA AND BUILD.
LOOKING AT WHAT OUR DEVELOPMENT SERVICES FOLKS PROVIDED US.
THEY ACTUALLY WENT OUT TO THE HOMEBUILDERS AND TO THE DEVELOPERS, AND THEY ASKED EACH ONE OF THEM, WHAT DO THEY THINK THEY'LL BE ABLE TO DO NEXT YEAR.
A LOT OF WHAT WE'RE SEEING HERE, PART OF THE REASON WE'RE SEEING 786 AND NOT SOMETHING HIGHER, AGAIN, IS NOT LACK OF DESIRE, BUT RATHER IT'S LACK OF AVAILABILITY OF LOTS.
[00:30:03]
AS YOU KNOW, WE HAVE A LOT OF INTEREST IN MARANA FROM DEVELOPERS AND HOMEBUILDERS.IT JUST SO HAPPENED THAT THE TIMING OF AVAILABLE LOTS FOR ISSUANCE OF SINGLE FAMILY RESIDENCES IS NOT TO THE LEVEL THAT IT HAS BEEN IN PREVIOUS YEARS.
WE DO HAVE DEVELOPERS WHO ARE ACTIVELY WORKING ON CREATING THOSE LOTS, CREATING THAT FOR HOME BUILD TIME, AND WE'RE HOPING A LOT OF THAT WILL HAPPEN IN FISCAL YEAR 26.
>> YES. I COULDN'T HEAR THE WORD YOU WERE USING.
>> THE NUMBERS ARE PRETTY GOOD.
>> DO YOU THINK THE GOVERNORS, I DON'T KNOW IF YOU'D CALL IT A MANDATE OR WHAT WITH THE AFFORDABLE HOUSING? IS THAT GOING TO AFFECT US IN ANY WAY? I KNOW WE'VE HAD STUDY SESSIONS AND THINGS AND IDEAS.
JASON, HAD SHOWN US SOME PICTURES ON HERE WE CAN DO THIS CHEAPER AND THAT CHEAPER.
IS THAT GOING TO AFFECT ANYTHING IN ANY WAY?
>> WITHOUT KNOWING MORE DETAILS ABOUT THE LEGISLATION, WHAT WILL HAPPEN AND HOW IT WILL AFFECT PROFITABILITY OR HOW IT WOULD CHANGE WHAT PRODUCTS? THE DEVELOPERS AND HOME BUILDERS MIGHT INTRODUCE DUE TO THAT.
I'M NOT SURE THAT I CAN ANSWER IN A GOOD WAY.
>> THAT CAN BE KICKED DOWN THE ROAD, NOT FOR US, BUT FOR THEM FOR QUITE A WHILE. THIS IS WHAT I'M HEARING.
>> I'M SORRY. I DON'T HAVE A BETTER ANSWER.
I THINK THOSE CONVERSATIONS ARE STILL HAPPENING.
>> THAT'S WHAT I WANT TO HEAR.
>> I'VE NOT HEARD ANYTHING IN TERMS OF ANY ADVANCEMENT THAT THERE MAY BE BETWEEN THE THREE POT PRIMARY GROUPS THAT ARE TRYING TO REVOLUTION OR COMPROMISE.
LEAGUE OF CITIES AND TOWNS CONTINUES TO WORK ON IT WITH THE HOME BUILDERS ALONG WITH THE GOVERNOR'S OFFICE TO GET SOMETHING THAT'S PALATABLE TO.
>> COULD VERY WELL BE, MAYBE SOMETHING THAT DOES [INAUDIBLE].
>> MAYOR POST, JUST BEFORE ANY CONTINUES, I JUST WANTED TO CLARIFY ON THE RECORD THAT COUNCILOR KAVANAUGH IS WATCHING THE MEETING VIA THE LIVE STREAM.
HE IS NOT PARTICIPATING VIA THE TEAMS.
>> YEAH. I JUST WANTED TO SAY THAT ON THE RECORD.
>> WITH THAT, THEN I WILL JUMP INTO OUR BUDGET OVERVIEW.
AS MR. ROSE MENTIONED, OUR BUDGET THIS YEAR IS LOWER.
WE HAVE HUNDRED ALMOST 12 MILLION NOT QUITE.
THE BIG DIFFERENCE HERE REALLY HAS TO DO WITH CAPITAL PROJECTS.
WE STILL HAVE A LOT OF PROJECTS, AS YOU KNOW, FROM THE PRESENTATION A FEW WEEKS AGO, AS PART OF OUR CAPITAL PROJECTS, BECAUSE WE ARE GROWING AS A TOWN AND THERE'S A LOT OF IMPORTANT THINGS THAT WE WANT TO DO.
BUT HAVING SPENT QUITE A BIT OF MONEY BETWEEN THE MARK AND A COUPLE OF THE PROJECTS, THE TANGERINE [INAUDIBLE], THE RATTLESNAKE PASS, THAT'S WHAT'S REALLY REFLECTED IN THE LOWER AMOUNT.
LAST YEAR IS HAVING SPENT QUITE A BIT OF MONEY.
OVERALL, OUR OPERATING BUDGET STANDS AT ABOUT 125 MILLION.
IT'S ABOUT 30% OF OUR TOTAL BUDGET.
DEBT SERVICE ABOUT $19 MILLION.
THAT'S FAIRLY CONSISTENT WITH WHAT WE HAD LAST YEAR. YES, SIR.
>> IS THAT A GOOD PERCENTAGE? HOW DO YOU GUYS FEEL ABOUT THAT?
>> I WILL ANSWER THAT IN THE NEXT SLIDE, YES, I THINK THAT'S A REASONABLE PERCENTAGE.
THE REVENUES ALSO FOLLOW HERE, WE DO HAVE A NUMBER OF INTERGOVERNMENTAL REVENUES.
THIS IS WHERE WE'RE HOPING THAT SOME OF THE PROJECTS, SOME OF THE CAPITAL OUTLAY, WILL BE FUNDED BY EITHER THE FEDERAL GOVERNMENT OR BY RTA PAC, THE STATE, WHICHEVER THE APPROPRIATE BODY IS.
THAT'S BUILT INTO THIS TO OUR REVENUES, BUT WE ALSO HAVE A NUMBER OF FUNDS THAT ARE ASIDE PART OF OUR RESERVES OR PART OF OUR FUND BALANCE THAT WILL HELP US WITH A LOT OF THE CONSTRUCTION, INCLUDING IN OUR TRANSPORTATION FUND, SOME IN OUR.
FOR THOSE INSTANCES WHERE WE MIGHT HAVE A SHORTFALL DUE TO TIMING, AS YOU KNOW, SOMETIMES WITH IMPACT FEES, THE CASH ISN'T THERE YET.
WE MIGHT LOOK AT HOW WE FUND THOSE THROUGH FINANCING, GOING OUT AND BORROWING THE MONEY AND THEN RECOVERING, COLLECTING THAT MONEY AFTERWARDS THROUGH IMPACT FEES TO PAY THEM BACK.
[00:35:02]
THAT COVERS A LITTLE BIT OF THAT.TO YOUR QUESTION, AGAIN, THAT 124.7 MILLION.
USUALLY, THIS IS THE SLIDE THAT I LIKE TO LOOK AT TO SAY, HOW ARE WE DOING? HOW ARE WE REALLY MANAGING OUR OPERATIONS.
BECAUSE CAPITAL PROJECTS, A LOT OF THEM ARE WHAT ARE THE NEEDS OF THE COMMUNITY OVER A PERIOD OF TIME? IN ORDER FOR ME TO ANSWER THE QUESTION, WELL, HOW CONSISTENT ARE WE? I LIKE TO LOOK AT THIS GRAPHIC? WHAT PERCENTAGES ARE PERSONNEL AND BENEFITS COMPARED TO OUR OPERATING AND OUR CONTRACT PURSES? PAYROLL VERSUS NON PAYROLL.
WE HAVE BEEN FAIRLY CONSISTENT OVER THE YEARS OF HAVING OUR PAYROLL HOVER AROUND 50%.
>> OF THE REST OF THE NEEDS THAT WE HAVE OF OPERATING AND CONTRACTED SERVICES.
WE ARE SPENDING A LOT OF RESOURCES AND MAKING GOOD INVESTMENTS WITH OUR STAFF AND THE SERVICES WE PROVIDE AND WE SPLIT THAT FAIRLY EQUALLY BETWEEN THE OTHER NEEDS WHERE WE HAVE TO GO OUT AND BUY THOSE SUPPLIES, GET THOSE CONTRACTED SERVICES FOR THINGS THAT WE DON'T SPECIALIZE IN HERE.
IN THAT RESPECT, MR. MAYOR, YES, I THINK THAT WITH THE WAY WE ARE SET UP AND THE WAY WE'VE BEEN BUDGETING AND DEPARTMENTS COOPERATING AND COORDINATING WITH US, I THINK WE CONTINUE TO DO A GOOD JOB OF HOW OUR MAKEUP, OUR STRUCTURE IS PUT TOGETHER IN BUDGET TIME.
>> IS THERE A STANDARD FOR DEBT RATIO?
>> I DON'T KNOW THAT THERE IS A SPECIFIC STANDARD FOR DEBT RATIO, BUT WE ARE IN PRETTY GOOD SHAPE RIGHT NOW.
I APOLOGIZE, GIVE ME JUST ONE SECOND.
LOOKING AT SOME OF THE NUMBERS, IF WE LOOK AT THAT $19 MILLION OF ANNUAL DEBT SERVICE, A QUARTER OF THAT, APPROXIMATELY, IS GETTING PAID BY OUR SPECIAL DISTRICTS, OUR CFDS.
THAT'S NOT SOMETHING THAT COUNTS AGAINST THE TOWN.
>> THE 19 MILLION, A QUARTER OF THAT?
>> CFDS AND THE SPECIAL DISTRICT.
ABOUT $4.2 MILLION OF NEXT YEAR'S IS GOING TO BE THAT.
>> THE ACTUAL TOWN DEBT REPAYMENT IS ROUGHLY $15 MILLION?
>> CORRECT. THEN WE HAVE ABOUT A QUARTER OF ALSO THE DEBT BEING PAID BY IMPACT FEES, BY GROWTH.
THE OTHER 50% IS WHAT WE PAY THROUGH OUR UTILITY AND OUR EXCISE TAXES, THE OTHER MONEY THAT WE HAVE.
THAT'S ABOUT THE BREAK OUT WE HAVE RIGHT NOW.
I SHOULD SAY, NOT AS WE MOVE FORWARD, BUT $3.5 MILLION OFF THAT DEBT FOR THE NEXT FISCAL YEAR IS RELATED TO THE ANNUAL DEBT SERVICE PAYMENT FOR THE MONTH.
AS YOU RECALL, THAT IS MONEY THAT WE HAVE A DEDICATED FUNDING SOURCE TO PAY IT BACK AND PAY IT BACK SOONER THAN.
>> THAT $15 MILLION, HOW MUCH OF IT IS PAID FOR BY ENTERPRISE FUNDS? YOU COULD BE JUST GENERAL.
I DON'T KNOW IF THAT'S POSSIBLE FOR FINANCIAL.
>> JUST OVER FOUR MILLION DOLLARS.
>> JUST OVER FOUR MILLION DOLLARS BUDGETED FOR EXPENSES.
>> NOW WE'RE DOWN TO $11 MILLION.
[OVERLAPPING] WE'RE DOWN TO EIGHT.
>> WE BASICALLY NOW HAVE MONEY THAT WE'RE PAYING BACK FOR THIS STRUCTURE THAT WAS BUILT SEVERAL YEARS AGO.
THIS OPENED UP ABOUT 20 YEARS AGO.
WE HAVE A NUMBER OF OTHER PROJECTS THAT WE'RE PAYING FOR.
>> THOSE ARE ALL [INAUDIBLE] OUT OF THE GENERAL FUND?
>> WE HAVE THE ABILITY TO FINANCE CRITICAL PROJECTS GOING FORWARD?
>> ESPECIALLY IF THEY CAN BE ATTACHED TO A REPAYMENT MECHANISM.
>> I THINK THAT IS A CORRECT STATEMENT, YES.
>> WHAT ARE YOU THINKING WHEN YOU SAY CRITICAL PROJECT?
[00:40:03]
>> I STILL WANT TO THROW THAT 45 MILLION AT IT AND CALL IT A DAY, BUT MAYOR, I GOT YOU.
>> OVERALL, FOR OUR BUDGET, IF WE LOOK AT THE BREAKOUT, AND SORRY, THIS IS JUST A LOT OF NUMBERS ON A SLIDE, THE GENERAL FUND, WE ACTUALLY WENT DOWN.
THE REASON THAT OVERALL WE CAME DOWN IS YOU WILL RECALL LAST YEAR, WE MADE A SINGLE PAYMENT OF $13.6 MILLION TO PAY DOWN OUR UNFUNDED LIABILITY THAT THE ACTUARIES CALCULATED AS OF THE END OF 2024.
>> IS THAT INCLUDED IN YOUR DEBT REPAYMENT, OR IS THAT A DIFFERENT CATEGORY?
>> DIFFERENT CATEGORY, NOT PART OF WHAT WE WERE TALKING ABOUT.
WE DID DROP DOWN SOME MONEY, BUT WE DID OFFSET THAT WITH SOME INCREASES THAT I WILL COVER IN A LITTLE BIT, NEW POSITIONS, RAISES, ETC.
NOT VERY MUCH CHANGE IN OUR SPECIAL REVENUE FUNDS.
CAPITAL PROJECTS FUNDS, BIG DROP $78 MILLION.
THAT IS BECAUSE OF THE COMMENT I MADE EARLIER, WE HAVE BUILT QUITE A BIT.
DEBT SERVICE, NOT VERY MUCH CHANGE.
ENTERPRISE FUNDS, WE DO HAVE AN INCREASE OF ABOUT $28 MILLION.
THAT DEALS MOSTLY WITH US NOW COMING ON THE TIME WHERE WE WANT TO EXPAND OUR WATER RECLAMATION PLANT.
THAT'S WHAT'S REFLECTED THERE, IS YEAR 1 OF THE EXPANSION OF THE WATER RECLAMATION PLANT AND RELATED RECHARGE PAY SETS.
THAT'S THE MAJORITY OF THAT INCREASE.
THEN OUR INTERNAL SERVICE FUNDS, THAT'S OUR SELF INSURED MEDICAL TRUST FUND AND DENTAL ENVISION.
WE'VE EXPERIENCED SOME CLAIMS OVER THE LAST COUPLE OF YEARS THAT WERE HIGHER THAN OTHERS.
THIS IS WHERE WE ARE FOLLOWING OUR CONSULTANTS ESTIMATES AND WHAT WE'RE SEEING THROUGH TREND AND OTHER INDUSTRY-RELATED INCREASES IN INCREASING WHAT WE ANTICIPATE WILL BE NEXT YEAR'S BUDGET FOR THIS AREA.
>> YONIE [PHONETIC], CARL IS HERE TOO, THE MEDICAL INCREASE IS FOR JUST MEDICAL AND NOT DENTAL OR VISION, YOU'RE SAYING THAT 5% OF THAT IS WE DON'T HAVE TO PAY OUT OF 9% THAT'S INCREASED IF I READ THE VERBIAGE RIGHT.
>> MR. MAYOR, VICE MAYOR ZIEGLER, I APOLOGIZE IF THE WAY I'VE WRITTEN THAT IS CONFUSING.
THE TOWN AND THE EMPLOYEES ORIGINALLY, IF WE SPLIT IT EVENLY, WE BOTH INCREASE AT 9.9%.
THE TOWN MANAGER'S OFFICE IN CONSULTATION WITH HR AND THE CONSULTANTS DECIDED THAT INSTEAD OF ALSO PASSING AN INCREASE OF 9.9% TO EMPLOYEES, EMPLOYEES WOULD ONLY TAKE 5% OF THAT INCREASE ON THEIR END, AND THAT DIFFERENCE, THE ADDITIONAL MONEY WOULD BE COVERED BY THE TOWN.
THAT NET DIFFERENCE IS ABOUT $40,000 MORE MONEY TO BE PAID BY THE TOWN.
>> YEAH. INSTEAD OF EMPLOYEES EXPERIENCING A 9.9% INCREASE, THEY WILL ONLY EXPERIENCE A 5% INCREASE.
>> NO PROBLEM. FINALLY, WITH SPECIAL DISTRICTS WHERE WE WON'T COVER THEM ANYWHERE HERE, BUT WE WILL TALK ABOUT THEM IN TENTATIVE BUDGET INDIVIDUALLY, WE ARE SEEING A DROP HERE SIMPLY BECAUSE GLADDEN FARMS ISSUED DEBT LAST YEAR.
THEY DON'T PLAN ON ISSUING AGAIN.
WE DO HAVE THE SAGUARO CFD STILL WISHING TO ISSUE DEBT.
THEY PLANNED IT FOR A COUPLE OF YEARS. THEY HAVE A DEBT THERE.
I THINK THEY ARE ACTUALLY WORKING ON IT TO DO IT THIS UPCOMING FISCAL YEAR.
THE OTHER THING THAT WE'RE ALSO SEEING HERE IS THE ESTABLISHMENT OF THE NEWLY FORMED MANDARINA DISTRICT WHERE WE HAVE INCLUDED SOME DEBT ISSUANCE JUST TO ALLOW FOR THAT RATE TO ACTIVATE BEFORE WE HAVE ANYBODY MOVING INTO THE NEIGHBORHOOD, AVOID ANY CONFUSION [INAUDIBLE] AS WE'VE EXPERIENCED MAYBE IN THE PAST.
>> YONIE, WHEN THE TOWN MAKES A FINANCIAL INVESTMENT IN A, SAY, A PARK IN A DEVELOPMENT THAT HAS AN ONGOING CFD, IS THE TOWN ELIGIBLE FOR REPAYMENT THROUGH THAT CFD?
>> THAT'S A GOOD QUESTION, MR. MAYOR, I HAVE NEVER EXPERIENCED THE TOWN DOING THAT.
>> ONLY GOOD QUESTIONS OVER HERE.
[00:45:03]
>> MR. MAYOR, VICE MAYOR, MEMBERS OF COUNCIL, YOU MAY RECALL WHEN EACH COMMUNITY FACILITIES DISTRICT IS ESTABLISHED, THERE'S A BOND ELECTION THAT IS HELD, AND THAT BOND ELECTION SETS THE MAXIMUM AUTHORIZATION OF DEBT THAT CAN BE ISSUED BY THAT DISTRICT.
I DON'T REMEMBER THE EXACT NUMBERS, BUT IT COULD BE WHAT HAS HAPPENED IN THE CASE OF, LET'S SAY, GLADDEN PHASE 1.
WE MAY HAVE SET THE LIMIT AT $50 OR $60 MILLION IN TOTAL AUTHORIZATION, BUT THEY MAY ONLY UTILIZE THE FIRST $15 OR $20 MILLION ASSOCIATED WITH REIMBURSEMENTS THAT WERE ANTICIPATED OUT OF THE CFD.
THE SOMEWHAT SHORT ANSWER IS THAT, YES, FUTURE PROJECTS COULD BE REIMBURSED OUT OF THE CFD, BUT IT'S GOING TO BE LIMITED TO THAT PORTION OF THE PROJECT THAT BENEFITS THE DISTRICT.
THEY CAN ONLY BE OBLIGATED TO PAY THAT PORTION THAT THEY BENEFIT FROM IT.
IF THEY BENEFIT 50%, THEN THEY CAN ONLY BE ASKED TO PAY FOR 50% OF IT OR 25% OR WHATEVER THE APPROPRIATE PERCENTAGE IS, AND IT'S SOMETHING THAT WOULD HAVE TO BE REVIEWED ON A CASE BY CASE, PROJECT BY PROJECT.
>> IF THE TOWN MADE IMPROVEMENTS TO A NEW PARK THAT BENEFITED THE DEVELOPMENT AS A WHOLE, THEY POTENTIALLY COULD BE ELIGIBLE FOR REPAYMENT THROUGH THAT CFD.
>> WE WOULD HAVE TO EVALUATE IT, CORRECT.
SOMEONE WOULD HAVE TO WORK TO CALCULATE WHAT IS THEIR BENEFIT, AND THEN THAT PORTION OF IT COULD BE ELIGIBLE FOR REIMBURSEMENT.
>> A LOT OF TIMES IT'S NOT NECESSARILY THAT THE DEVELOPER DOESN'T WANT TO HAVE ENHANCED AMENITIES.
THEY DON'T WANT TO PAY FOR IT UP FRONT AND THEN WAIT FOR IT TO THEN BE RETURNED THROUGH THE CFD, IT'D TAKE YEARS; IS THAT CORRECT? BUT POTENTIALLY, THE TOWN MIGHT BE ABLE TO FRONT THAT MONEY FOR ENHANCED PROJECT OF PARKS OR WHATEVER THEY MIGHT BE, AND THEN COLLECT YEARS LATER.
>> YEAH. THAT'S AN APPROACH THAT WE HAVEN'T TAKEN.
THUS FAR, WITH CFDS, WITH COMMUNITY FACILITIES DISTRICTS, WE'VE REQUIRED OR OBLIGATED THE DEVELOPER TO CONSTRUCT IT, AND THEN WE ACQUIRE IT WHEN IT'S COMPLETED.
I THINK THE STATUTES ALLOW FOR WHAT YOU'RE ASKING OR SUGGESTING AND IT'S SOMETHING THAT WE CAN EVALUATE, BUT AGAIN, I THINK IT WOULD STILL BE ON A CASE BY CASE BASIS TO MAKE SURE THAT THEY'RE ONLY BEING CHARGED FOR THAT PORTION.
THE OBLIGATION, BASICALLY, APPROXIMATELY, IS ACTUAL BENEFITS THAT THEY'RE GIVEN.
>> YES. CAN WE BACK UP? WE TALKED ABOUT THE POLICE DEPARTMENT PENSION PLAN WE PAID OFF.
HOW MUCH OF THAT WAS PAID OFF PREVIOUSLY AND HOW MUCH MORE DO WE HAVE TO GO? IS THERE A NUMBER THAT YOU CAN GIVE US?
>>WE PAID A COUPLE OF YEARS BEFORE THE BEGINNING OF THIS YEAR, WE HAD PAID SIX MILLION DOLLARS.
THEN ONCE WE RECEIVED THE NUMBERS THAT WERE AVAILABLE LAST YEAR, THE OUTSTANDING AMOUNT WAS 13.6.
AS OF THAT MOMENT IN TIME, AS OF JULY 1ST OF 2024, WHICH WERE THE LATEST NUMBERS THAT WE UTILIZED THAT WERE AVAILABLE, WE PAID ALL OF IT OFF.
>> IT'S ALL TAKEN CARE OF. HOWEVER, WHAT HAPPENS NOW IS THE IMPACT OF OUR DOWN PAYMENT OVER OUR PAYOFF DOESN'T REALLY TAKE EFFECT UNTIL ABOUT 13 MONTHS LATER.
JUST BECAUSE OF THE WAY THAT THE ACTUARIES CALCULATE THE NUMBERS, THEY WANT TO SEE IT, AND THEN ONCE THEY SEE IT HIT, THAT'S WHEN THEY UPDATE THEIR NUMBERS.
THAT'S WHY WE HAVE TO WAIT UNTIL FISCAL YEAR '27 BEFORE WE ACTUALLY SEE THE TRUE IMPACT, BUT IF THE INVESTMENTS AT THE STATE LEVEL PERFORM AS THEY WERE ANTICIPATED, AND IF WE CONTRIBUTE ALL THE MONEY THAT THE ACTUARY EXPECTED US TO CONTRIBUTE, AND IF ALL THE ASSUMPTIONS WERE TRUE BASICALLY, THEN WE WOULD EXPECT TO BE AT 100% FUNDED.
REALISTICALLY, THAT WILL PROBABLY BE SOMEWHERE IN THE 90% WITH EVERYTHING THAT WE'RE SEEING HAPPENING RIGHT NOW.
>> [INAUDIBLE] WE GET OFF OF US ANYWAY.
>> CORRECT. I HOPE, I SHOULDN'T SAY I THINK, BUT I HOPE BECAUSE I CAN'T TELL THE FUTURE, WHEN DECEMBER COMES AROUND AND THE ACTUARY PROVIDES US THE REPORT THAT WILL INCLUDE THAT INFORMATION, WE WILL SEE SOMETHING THAT WILL BE 95% OR BETTER AS FAR AS THE FUNDED RATE.
>> YES, VICE MAYOR. DID YOU HAVE A QUESTION?
>> YES. THANK YOU, MAYOR. UNDER SPECIAL DISTRICTS, THIS IS A LOT OF INFORMATION.
[00:50:02]
IT SAYS THAT OUR RATES ARE $2.50 AND THEN THIRTY CENTS FOR CFDS ON $100 ASSESSED VALUE.IT SAYS EXCEPTION OF A GLADDEN CFD, WHERE RATES WILL BE REDUCED TO $2.25 FOR 100 OF LIMITED ASSESSED VALUE.
I JUST HAVE A QUESTION. IT'S ALWAYS BEEN 2.50.
>> YES. MR. MAYOR, VICE MAYOR. YOU ARE CORRECT.
WE ARE THANKFUL AND HAPPY TO NOT HAVE GLADDEN CFD ISSUE ANY MORE DEBT.
THEY DECLARED A FEW YEARS BACK WHEN THEY ISSUED THE LAST DEBT ISSUANCE THAT THIS IS IT, WE'RE NOT ISSUING ANY MORE DEBT.
WHAT HAPPENS NOW IS IT IS STATE LAW THAT SAYS THAT YOU SHOULD NOT COLLECT MORE THAN 10% OF WHAT YOU NEED TO MAKE YOUR DEBT SERVICE PAYMENTS, INCLUDING A FACTOR FOR DELINQUENCIES, UNPAID, LEVIES, ETC.
AFTER WE RUN THE NUMBERS AND PUT THEM THROUGH THAT CALCULATION, IF WE DID NOT REDUCE THE RATE, WE WOULD BE IN VIOLATION OF STATE STATUTE.
>> CORRECT. THAT'S THE GOOD NEWS BECAUSE WHAT ENDS UP HAPPENING REALLY IS ASSESSED VALUES WENT UP WITHIN THAT PARTICULAR CFD, BUT THE DEBT DIDN'T.
AS THE VALUE OF THE PROPERTIES GOES UP, WE CHARGE THEM LESS IN THE RATE, BUT WE'RE STILL COLLECTING THE MONEY WE NEED TO COLLECT TO MAKE THE DEBT SERVICE PAYMENTS.
DOLLAR WISE, WE'RE STILL COLLECTING ABOUT THE SAME AMOUNT OF MONEY FROM EVERYBODY.
>> I'M OFF GRID HERE FOR A SECOND, AND THIS IS FOR FAUSTO [PHONETIC] BECAUSE I KNOW HE'S OVER THERE WAIT FOR A DRAINAGE QUESTION.
WE'RE GETTING READY TO DO THE DESIGN FOR THE BARNETT CHANNEL.
DO YOU KNOW WHAT WE'RE LOOKING AT FOR THE DESIGN? I KNOW YOU'VE TOLD US BEFORE, HOW MUCH WILL THAT BE?
WE WERE ACTUALLY GOING TO MOVE INTO A DCR, A DESIGN CONCEPTS REPORT.
JUST TO HELP US GET OUR ARMS AROUND ALL THE MOVING PARTS AS PART OF THAT PROJECT, BUT WITH THAT, THAT'LL HELP US GET A BETTER UNDERSTANDING OF THE TOTAL COST OF THAT PROJECT, AND THEN ALSO GOING INTO THE DESIGNS.
THE LANGUAGE WILL BE SET UP AS WE MAY HAVE THE POTENTIAL, IF WE BELIEVE THAT CONSULTANT CAN DO THE DESIGN AS WELL, WE CAN MOVE DIRECTLY TO THAT TO HELP FAST TRACK THAT PROJECT.
>> THAT WAS A GOOD ANSWER FOR I DON'T KNOW.
>> I KNOW. I WAS JUST GOING TO SAY YOU DON'T WANT TO THROW ANYTHING OUT THERE NOW.
>> AT THIS POINT, WE HAVE THREE MILLION IDENTIFIED.
>> THAT IS THREE MILLION IDENTIFIED IN THE BUDGET, THAT IS THE NUMBER THAT WE'RE NOT 100% SURE OF AT THIS POINT.
>> WHAT IS INCLUDED IN THE NEW BUDGET? WE TALKED ABOUT A LOT ABOUT NUMBERS.
WE HAVE COMPENSATION ADJUSTMENT, SOME OF THE HIGHLIGHTS FOR STAFF, AND WE'RE ADDING 21 NEW FTES.
EARLIER TODAY, I WAS ASKED A QUESTION, ARE WE AT 500 YET? I HAVE TO SAY, NOT QUITE. WE'RE AT 496.6.
WE'VE ADDED CLOSE TO, NOT QUITE, BUT CLOSE TO 100 POSITIONS IN FOUR FISCAL QUARTERS.
>> FOUR HUNDRED AND NINETY SIX.
>> DO YOU KNOW ALL THEIR NAME? [LAUGHTER]
>> WELL, WE'LL FIND OUT TOMORROW AT THE APPRECIATION LUNCH.
>> MR. MAYOR AND VICE MAYOR, MEMBERS OF COUNCIL, IF I CAN JUMP IN ON THIS.
I THINK THAT IS REALLY IMPORTANT AND ERIC AND I HAVE BOTH TALKED ABOUT THIS AND LOOKED AT WHAT OTHER JURISDICTIONS HAVE IN TERMS OF NUMBERS OF EMPLOYEES PER POPULATION AND I WILL TELL YOU THAT IT'S ALL OVER THE MAP, AND IT'S REALLY HARD TO PIN SOMETHING DOWN BECAUSE EVERY JURISDICTION IS DIFFERENT IN TERMS OF WHAT THEY OFFER WITH REGARD TO SERVICES.
SOME JURISDICTIONS HAVE FIRE DEPARTMENTS AND SOME DON'T, AND SO YOU LOOK AT SOME THAT ARE WAY MUCH HIGHER THAN US, WELL, JUST BECAUSE THEY HAVE A FIRE DEPARTMENT.
SOME ARE LOWER THAN US, BUT THEN YOU LOOK AND YOU REALIZE THEY DON'T HAVE ANIMAL SERVICES AND THEY DON'T HAVE WATER AND THEY DON'T HAVE WASTEWATER.
[00:55:01]
DEPENDS ON WHAT THE COMMUNITY NEEDS.BECAUSE I DID STRUGGLE WITH THIS.
ARE WE GROWING TOO FAST OR DO WE HAVE TOO MANY EMPLOYEES? I WILL SAY THAT AFTER WRESTLING WITH THAT A LITTLE BIT, I'VE COME TO THE CONCLUSION THAT I THINK WE'RE IN A REALLY GOOD PLACE AND A REALLY GOOD POSITION.
OUR DEPARTMENT HEADS THEY'RE TOP NOTCH.
THEY DON'T COME ASKING FOR THINGS THAT THEY DON'T NEED.
ALTHOUGH WE WRANGLED THROUGH THIS NUMBER FROM 42 DOWN TO 21, AND SOME PEOPLE WERE DISAPPOINTED, THEY DIDN'T GET POSITIONS THAT THEY WERE REALLY HOPING TO GET, I FEEL THAT RIGHT NOW WE'RE IN A GOOD PLACE.
>> BUT I'VE BEEN HERE A LONG TIME, AND I'VE SEEN THE THOUGHT PROCESS THAT GOES THROUGH PUTTING ON A NEW FTE, AND I ABSOLUTELY AGREE THAT EVERY EMPLOYEE THAT'S HIRED IS WELL THOUGHT OUT, NEEDED AND NOT PUT IN PLACE UNTIL ALL THOSE CRITERIA IS MET.
BUT I HAD NOT HEARD THAT WE WERE APPROACHING 500 IN THAT.
>> WHAT'S THE NUMBER FOR OUR POLICE DEPARTMENT OUT OF THIS 500?
>> FOUR HUNDRED AND EIGHTY. [LAUGHTER] COMMISSIONED OFFICER, THEY'RE APPROACHING 120, I THINK 117 AND WITH THE TWO NEW THE TWO NEW ONES ARE AT 119.
THEN TOTAL NUMBER YOU'RE APPROACHING.
I WAS GOING TO SAY 150 BUT 147.
>> I THOUGHT IT WAS HIGHER THAN THAT.
>> THAT HAS ME ASKING THE QUESTION, HOW ARE WE DOING ON OUR PERCENTAGE, OUR GOAL OF OFFICERS PER THOUSAND?
>> SIX NEW OFFICERS THIS YEAR WOULD HAVE PUT US RIGHT AT THE 2.0.
WE DID TWO OFFICERS THIS YEAR AND THAT WAS PARTLY BECAUSE THE DEPARTMENT ALSO NEEDED SOME CIVILIAN STAFF, CRIME SCENE TECHNICIAN AS WELL AS A REDACTION SPECIALIST, SO WE'RE A LITTLE BIT BELOW THAT 2.0 NUMBER PER POPULATION, BUT I STILL FEEL FROM THE STANDPOINT OF WHERE WE'RE AT WITH CALLS FOR SERVICE, WHERE WE'RE AT WITH CRIME RATES THAT WE'RE IN A VERY COMFORTABLE POSITION.
>> THAT'S AN EASY ONE. HOW'S THAT COMPARED TO THE REGION?
>> I THINK WE'RE WAY BETTER THAN THE REST OF THE REGION WITH THE EXCEPTION OF PROBABLY ORO VALLEY.
ORO VALLEY IS PROBABLY RIGHT AT ABOUT 2-2.1.
IF I WERE TO CALCULATE WHERE THEIR POPULATION IS AND I THINK THERE'S A 106 OFFICERS, BUT OF COURSE, THE POPULATION IS A LITTLE BIT LOWER THAN OURS.
I DID SPENT SOME TIME EARLIER THIS YEAR LOOKING AT THAT.
I WILL SAY WE ARE ONE OF THE HIGHER OFFICERS PER 1,000 RESIDENTS IN THE ENTIRE STATE.
>> TERRY, I THINK THAT'S GOOD. WE HAVE PROBABLY THE BEST RESPONSE TIME FOR OUR CITIZENS.
>> I APPRECIATE YOU BRINGING THAT UP, COUNCILMEMBER KAI, BECAUSE THAT WAS ANOTHER THING THAT I LOOKED AT BECAUSE CHIEF REALLY DID STUMP HARD FOR THOSE SIX TOTAL OFFICERS.
BUT THEY DID LOOK AT THOSE THINGS, OUR RESPONSE TIMES. THEY HAVE NOT SUFFERED.
THE OTHER THING THAT WAS REALLY IMPORTANT TO ME WHEN WE LOOKED AT THAT NUMBER WAS THE FACT THAT THEY HAVE BEEN UNDERSTAFFED FOR QUITE SOME TIME AND THEY HAD, I WANT TO SAY 14 OR SO POSITIONS, THAT THEY WERE DOWN.
I REALLY WANTED TO SEE ONCE THEY GOT FULLY STAFFED AND GOT ALL THOSE PEOPLE OUT INTO PATROL, HOW THAT WAS GOING TO AFFECT OUR RESPONSE TIMES, OUR CALLS FOR SERVICE, OUR CRIME RATE, OUR ONSITE ACTIVITY, ALL OF THOSE THINGS THAT I THINK ARE REALLY IMPORTANT TO KEEP A COMMUNITY SAFE.
I FEEL REAL COMFORTABLE WITH WHAT THE CHIEF HAS RECOMMENDED.
BUT AGAIN, HE AND I TALKED ABOUT THE NEED TO GETTING THEM FULLY STAFFED, WHAT THAT DOES FOR THEM.
>> YOU LOBBIED HARD FOR THAT NUMBER A FEW YEARS AGO, HAS THAT BEEN A POSITIVE?
>> I THINK IT IS A POSITIVE THING.
THE THING THAT THE CHIEF AND I TALKED ABOUT IS NOT GETTING LAZY WITH THAT NUMBER AND THINKING THAT'S THE NUMBER WE HAVE TO ACHIEVE AND THAT'S ALL WE HAVE TO DO TO JUSTIFY NEW POSITIONS.
[01:00:05]
WELL, WE NEED FIVE MORE, OR WE'RE NOT GOING TO BE AT 2.0.I THINK THAT THAT'S LAZY AND SO NEITHER OF THE CHIEF, I PROBABLY AM A LITTLE BIT LAZY, BUT THE CHIEF'S NOT LAZY.
WE DON'T WANT TO FALL INTO THAT WHERE WE JUST RELY ON THAT NUMBER AND SAY, THAT'S THE SOLE THING THAT WE LOOK TO.
WE WANT TO MAKE SURE THAT WE'RE LOOKING AT THE ENTIRE ORGANIZATION.
>> AS WE DO WITH ALL POSITIONS.
>> I'M SORRY, VICE MAYOR. NO. I WAS GOING TO TURN THE TIME BACK OVER HERE.
>> I'M LOOKING AT THE FTES FOR '25, '26.
MOST OF OUR AQUATIC FOLKS IN MARANA HAVE BEEN IN THE '24, '25, CORRECT, SO THEY'RE ALREADY ON BOARD.
>> THEN POLICE, WE GOT TWO AND THEN WE HAVE CRIME SCENE AND [INAUDIBLE] RECORDS.
GOOD? I GOT A LOT OF PEOPLE OUT THERE.
IT'S JUST FOUR FOR THE POLICE?
>> I WAS TRYING TO GIVE YOU SOME HELP THERE, CHIEF.
YOU GUYS DO A PRETTY GOOD JOB.
>> AT THE END OF THE DAY LAST MAY IT WAS EITHER ANOTHER OFFICER OR BULLETS ON THE ONE BEFORE.
>> THANK YOU. ANOTHER ITEM THAT I THOUGHT MIGHT BE OF INTEREST TO COUNCIL IS, WE'RE OPENING UP THE MARK.
HOW MUCH IS THE MARK GOING TO COST.
FIRST ESTIMATE IS WE HAVEN'T RUN IT YET.
THE DEPARTMENT GOT TOGETHER, THEY PUT TOGETHER NUMBERS, THEY LOOKED AT OTHERS, AND THEY SAID, WE THINK WE CAN DO IT WITH 3.2 MILLION AND THAT IS JUST ON THE EXPENSE SIDE.
>> JUST FOR EXPENSES. NOW, WE ALSO SAID WE THINK WE'RE GOING TO BRING IN ABOUT $900,000, AND THAT WAS A CONSERVATIVE INITIAL NUMBER.
I KNOW THAT JIM IS PROBABLY GOING TO TELL US THAT HE HAS OVER 140 MEMBERSHIPS AT THIS POINT ALREADY BEFORE WE EVEN OPEN THE DOORS, SO HOPEFULLY WE'LL DO BETTER THAN 900,000, BUT I THINK IT'S PROBABLY A GOOD CONSERVATIVE START.
THE NET COST RIGHT NOW SITS AT 2.3 MILLION FOR THAT OPERATION.
>> MR. MAYOR, VICE MAYOR, MEMBERS OF COUNCIL, IF I COULD JUST INTERJECT HERE.
I THINK CERTAINLY WE'VE TALKED ABOUT THIS WITH REGARD TO GOOD YEAR AND WHAT THEY SAW FAR EXCEEDING THOSE NUMBERS.
I JUST RECENTLY TALKED TO A RETIRED CITY MANAGER WHO NOW IS IN OUR COMMUNITY AND WORKED FOR A COMMUNITY ABOUT OUR SIZE IN COLORADO.
SHE PULLED ME ASIDE AND SAID, GET READY BECAUSE THAT COMMUNITY CENTER AND AQUATIC CENTER IS GOING TO CREATE AN INCREDIBLE AMOUNT OF REVENUE FOR THE TOWN.
NOW, I DON'T KNOW IF IT'S GOING TO CREATE AN INCREDIBLE AMOUNT OF REVENUE FOR THE TOWN, BUT I DO THINK THAT WE'VE BEEN VERY CONSERVATIVE, HIGHLY CONSERVATIVE WITH WHAT WE ANTICIPATE IS GOING TO BE BROUGHT IN JUST WITH THE DIFFERENT PROGRAMS AND STUFF THAT THEY'RE OFFERING OVER THERE THAT PEOPLE ARE SIGNING UP WITH.
THEY'RE APPROACHING $100,000, AND WE HAVEN'T EVEN OPENED THE DOORS IN WITH PEOPLE WHO ARE SIGNING UP, NOT JUST FOR MEMBERSHIPS, BUT FOR PROGRAMS AND THINGS OF THAT NATURE THAT ARE GOING TO TAKE PLACE OVER THERE; SWIM LESSONS, AND WHATNOT.
I DO THINK THAT WE'RE GOING TO SEE AN INCREDIBLE AMOUNT OF INTEREST WE ALREADY HAVE, AND I THINK ONCE THE DOORS ACTUALLY OPEN, AND PEOPLE WALK IN AND THEY THEY FAINT BECAUSE IT'S SO AMAZING, THEY'RE GOING TO WANT TO BE A PART OF IT, SURE.
>> BUT I WILL NOTE THAT WE KNEW WE WERE GOING TO HAVE TO HAVE A GAP IN FUNDING THIS OPERATIONS AND SO IF IT DOES, IT DOES, IF IT DOESN'T, WE WENT INTO THIS WITH FULL KNOWLEDGE THAT THAT MIGHT HAVE TO COME OUT OF THE GENERAL FUND.
>> WHERE DID WE GO AVONDALE WHEN WE LOOKED.
>> GOOD YEAR. LOOK AT WHAT WE SAW THERE.
THEY HADN'T BEEN OPEN HOW LONG? I KNOW EVERYBODY HAS SEEN IT.
PEOPLE ARE JUST CRAZY ABOUT THIS, IT'S FANTASTIC.
[01:05:01]
I'M LOOKING TO SEE THAT IT WON'T TAKE US THAT LONG.BECAUSE THERE'S JUST SUCH AN INTEREST AND THE RATES ARE FANTASTIC.
I THINK THIS IS REALLY WHEN THE MARANA DOWNTOWN COMES ON THAT, YOU'RE JUST GOING TO SEE IT PERFORM.
>> WE TALKED ABOUT THE CAPITAL PROJECTS, BUT ONE THING I WANTED TO POINT OUT IS THAT THIS FISCAL YEAR '26 IS THE LAST PAYMENT THAT WE MAKE FOR THE TANGERINE ROAD FARMS ROAD IMPROVEMENT DISTRICT.
THAT IS SOMETHING THAT WE STARTED ALMOST 20 YEARS AGO, AND I'M HAPPY TO SAY IN JANUARY IT WILL BE PAID OFF.
IT DOESN'T GIVE ANY BREATHING ROOM TO THE GENERAL FUND.
IT'S AN IMPROVEMENT DISTRICT, BUT IT'S ALWAYS GOOD TO SAY WE'VE PAID IT OFF, SO GREAT NEWS ON THAT.
AS FAR AS INVESTMENTS AND INITIATIVES THAT WE DO EVERY YEAR, WE TOUCHED ON MANY OF THESE ALREADY, SO I'LL GO PRETTY FAST.
WE HAVE ABOUT $4.1 MILLION IN INCREASES, THAT'S THE DEPOSITIONS, THAT'S THE 4% MERIT BASED ADJUSTMENT PLAN FOR EMPLOYEES FOR THE YEAR.
WE TALKED A LITTLE BIT ABOUT THE PENSION RATES SO I'M NOT GOING TO GO INTO THAT AND THE SAME ON THE HEALTHCARE PREMIUMS. WE TALKED ABOUT THE 21 NEW POSITIONS.
THEY'RE SPREAD OUT THROUGH MULTIPLE DEPARTMENTS AS ALWAYS WITH ATTENTION TO WHERE ARE THE SERVICES NEEDED, HOW CAN WE PROVIDE MAXIMUM BENEFIT FOR SERVICES TO OUR RESIDENTS? BUT ALSO MAKE SURE THAT WE HAVE SUPPORT FOR SOME INTERNAL SERVICES DEPARTMENT, INCLUDING FINANCING IF I'M BEING A LITTLE BIASED FOR THIS YEAR.
AS FAR AS OTHER RESOURCES AND TOOLS, ONE THING THAT HAS BEEN DIFFICULT FOR US SINCE COVID WAS VEHICLES.
WE'VE HAD, AS YOU KNOW, A BACKLOG, WE'VE HAD A LOT OF CARRY FORWARDS.
I'M HAPPY TO SAY THAT WE SEEM TO HAVE CAUGHT UP.
WE HAVE RELATIVELY LITTLE CARRY FORWARD VEHICLES IN THIS YEAR'S BUDGET, WE STILL HAVE SOME, AND WE ANTICIPATE TO HAVE A LITTLE BIT.
BUT IT'S REALLY NOT DUE TO SUPPLY CHAIN ISSUES.
IT'S JUST THE NORMAL COURSE OF BUSINESS.
SOMETHING IS A LITTLE LATER SOMETIMES THAN WHAT YOU ANTICIPATED.
THAT'S ESPECIALLY GREAT NEWS FOR OUR POLICE DEPARTMENT BECAUSE THEY WERE THE ONES THAT WERE IMPACTED QUITE BADLY FROM THAT, AND WE HAD QUITE A BIG BACKLOG OVER THE LAST COUPLE OF YEARS, BUT WE'RE ALMOST FULLY OUTFITTED WITH VEHICLES FOR OUR OFFICERS, SO THAT'S GREAT NEWS.
FINALLY, IN ADDITION TO VEHICLES AND OTHER EQUIPMENT, WE HAVE A NUMBER OF PROJECTS.
I'M NOT GOING TO COVER SO MUCH A LOT OF THE CAPITAL PROJECTS, BUT I WANT TO HIGHLIGHT A FEW.
WE CONTINUE TO MOVE FORWARD WITH TECHNOLOGY PROJECTS.
WE HOPE IN NEXT FISCAL YEAR TO HAVE A NUMBER OF IMPORTANT ONES, INCLUDING OUR DEVELOPMENT SERVICES SOFTWARE REPLACED, AND IT WILL BRING US FORWARD TO REPLACE THE EXISTING SOFTWARE, AND IT WILL MAKE IT MUCH MORE CUSTOMER FACING AS A PRODUCT WHERE A LOT OF THE SUBMISSIONS, BUT ALSO PAYMENTS, CAN BE MADE ONLINE.
LIKEWISE FOR A BUSINESS LICENSES.
THE DEPARTMENT IS CONTINUING TO WORK ON A UTILITY RATE OF FEE STUDY AT THE WATER DEPARTMENT, WHICH WILL BE COMING TO COUNCIL PRETTY SOON IN THE NEXT COUPLE OF MONTHS, I BELIEVE, TWO OR THREE MONTHS BEFORE WE MOVE FORWARD TO THE PUBLIC FACING PART OF THAT PROCESS, AND THEN SUBSEQUENTLY ANY APPROVALS BY COUNCIL AND LIKELY HAVE ANY RATES GOING INTO EFFECT IN EARLY CALENDAR 2026.
THE DEPARTMENT IS WORKING ON A LOT OF WATER METER REPLACEMENTS.
WE WERE VERY LUCKY TO RECEIVE A GRANT FROM WIFA OF OVER $1,000,000, WHERE WE HAD TO MATCH SOME MONEY.
BUT THE MAJORITY OF THAT MATCH WAS NORMALLY WHAT WE SPENT ON REALLY THE REPLACEMENT ON AN ANNUAL BASIS SO WE REALLY GOT TO REPLACE FOUR TIMES ALMOST THE METERS FOR ABOUT THE SAME AMOUNT OF MONEY.
THERE IS SOME WORK WE'RE PUTTING FOR THE COURT ROOM REMODEL AND OTHER FACILITIES UPDATES AND REPAIRS, INCLUDING THE ED HONEA MMC SPACE OPTIMIZATION, WHICH IS A LITTLE BIT OF WORK THAT NEEDS TO BE DONE IN THIS BUILDING, IN THIS STRUCTURE.
AS YOU RECALL, THIS BUILDING WAS DEDICATED ON MAY 3RD OF 2005.
IT'S BEEN 20 YEARS NOW, SO WE DO NEED TO.
>> IS THAT A MULTI YEAR PLAN AND HOW MUCH MONEY ARE WE ALLOCATING EVERY YEAR FOR THAT?
[01:10:04]
>> IT'S A MULTI YEAR PLAN, AND IT'S ABOUT $14,500,000 OVER THE COURSE OF THREE YEARS WITH ABOUT A THIRD OF THAT BEING ALLOCATED IN EACH YEAR, SO JUST UNDER 5,000,000.
THEN WE STILL HAVE MONEY FOR TANGERINE SKY PARK PHASE 2.
I KNOW THAT JIM WANTED THAT TO BE THERE, SO WE MADE SURE THAT THERE IS A REMINDER.
>> THAT IS CURRENTLY VAN PARKING.
>> WHEN DOES THAT GO INTO EFFECT? I'M SORRY.
WHEN IS THAT AVAILABLE FOR RESIDENTS TO PLAY?
>> CONSTRUCTION WILL START THIS SUMMER.
I DON'T THINK WE'RE GOING TO BE OPEN BY THE END OF THE SUMMER.
WE'LL HAVE TO SEE HOW IT GOES.
>> DOCUMENTS. YOU SHOULD HEAR SOMETHING PRETTY SOON IN REGARD TO THE BID PROCESS GOING PUBLIC [OVERLAPPING].
>> THAT IS WITH EVERYTHING DONE THE PARKING LOT.
>> PARKING LOT, ESSENTIALLY, THE SCOPE IS PARKING LOT AND SPLASH PATH.
WE'VE BEEN NEEDED ADDITIONAL PARKING ALMOST AS THE DAY WE OPENED [INAUDIBLE].
THERE'LL BE A NEEDED IMPROVEMENT.
>> THAT WAS THE EXCITING PART AND I'M GOING TO GO INTO THE BORING PART BUDGET SUMMARY.
I WANT TO SPEND A LOT OF TIME HERE, PLEASE FEEL FREE TO CALL ME BACK.
A LITTLE BIT ON THE GENERAL FUND, WE ALREADY COVERED WHAT THE REVENUES WE'RE DOING HERE AND THE EXPENSES WIDE THEY ARE LOWER.
TRANSFER HAVE REALLY INCREASED MAINLY BECAUSE OF US PLANNING TO FUND CAPITAL PROJECTS FROM THE GENERAL FUND, BUT RATHER THAN SPENDING THE MONEY IN THE GENERAL FUND, SEPARATING THAT EXPENSE INTO A DIFFERENT FUND.
MAKING THE TRACKING AND THE ACCOUNTING PORTION OF IT A BIT EASIER FOR US ON THE ACCOUNTING SIDE.
THAT CHANGE IN FUND BALANCE OF $17,000,000, REALLY JUST COMMUNICATES SIMPLY THE NUMBER OF CAPITAL PROJECTS WE HAVE, BUT ALSO THE FACT THAT A LOT OF THE CAPITAL PROJECTS FUNDED BY THE GENERAL FUND HAVE BEEN CARRIED FORWARD FROM THE PREVIOUS YEAR TO THE CURRENT YEAR.
WE ARE HOPING TO ACTUALLY GET MOVING WITH A LOT OF THOSE IN THE CURRENT YEAR.
WE'VE BEEN GOING THROUGH QUITE A BIT OF DESIGN SIMILAR SITUATIONS.
LOOKING AT THE GENERAL FUND RESERVES, THIS IS SOMETHING THAT I PROBABLY WILL SPEND A COUPLE OF MINUTES.
WE HAVE LOOKED AT WHAT 2025 WAS GOING TO LOOK LIKE AT THE END OF LAST FISCAL YEAR.
THAT'S WHAT WE PRESENTED IN FEBRUARY.
THAT NUMBER WAS QUITE LOWER THAN WHAT WE HAVE HERE FOR 2025.
THE NUMBER THAT WE HAVE HERE IS ABOUT $99.3.
A LOT OF THAT DIFFERENCE HAS TO DO ABOUT 20 MILLION OF THAT DIFFERENCE HAS TO DO WITH TWO THINGS.
THE ALMOST FIVE MILLION DOLLARS OF UNSPENT CONTINGENCY MONEY THAT WE NORMALLY WHEN WE DEVELOPED IN THE PAST THIS ESTIMATE.
WE ALWAYS SAID, THAT FIVE MILLION, WE'RE GOING TO SAY IT SPENT, EVEN THOUGH WE HARDLY EVER SPENT.
THAT REFLECTED IN OUR ESTIMATES.
THE OTHER PART WAS IN THE NEIGHBORHOOD OF $15 MILLION OF MONEY FOR PROJECTS THAT WAS BUDGETED BUT WAS CARRIED FORWARD.
STILL THINGS WE'RE GOING TO DO, BUT WE DIDN'T DO LAST YEAR, SO 20 PLUS MILLION ARE THOSE TWO COMPONENTS.
THE REST OF THE DIFFERENCE, THE REST OF THIS INCREASE FROM THE $66 THAT YOU HAVE SEEN IS A COMBINATION OF MONEY THAT REVENUES THAT ARE GOING TO COME IN, WE ANTICIPATE HIGHER THAN WHAT WE ORIGINALLY THOUGHT THAN WHAT WE BUDGETED AND EXPENSES, MONEY FOR OPERATING PURPOSES, NON-CAPITAL PURPOSES THAT WE DON'T THINK WE'RE GOING TO SPEND.
SAVINGS, WHETHER IT WAS BECAUSE PD HAD 14 VACANCIES THAT WE'RE TRYING TO FILL AND ALL OF THOSE, NOW THEY'RE FILLED, BUT UNTIL THEY WERE FILLED, THEY WERE PRODUCING SAVINGS FOR US.
THAT'S HOW WE GET TO THE $99.3 MILLION DOLLAR.
BUT WE STEP INTO THE NEW YEAR, AND IN THE NEW YEAR, THE $85 MILLION AVAILABLE FOR PROJECTS, AFTER WE STILL PUT ASIDE ALMOST $22 MILLION AS A TARGET RESERVE.
FOR THAT INSTANCE WHERE SOMETHING GOES BUMP IN THE NIGHT AND OUR REVENUES DON'T COME IN AS WE EXPECTED.
WE HAVE THAT RAINY DAY FUND SO WE CAN CONTINUE PROVIDING UNINTERRUPTED SERVICES TO A RESIDENTS.
BUT BEYOND THAT $85 MILLION THIS TIME AROUND AND MOVING FORWARD, WE'RE TAKING A LESS CONSERVATIVE APPROACH IN DEVELOPING THIS ESTIMATE.
[01:15:01]
WE NORMALLY WOULD TAKE THE FIVE MILLION DOLLARS, AND WE WOULD SAY, YOU KNOW WHAT? ALL OF THAT IS SPENT.THAT WOULD REDUCE OUR BALANCE HERE.
INSTEAD WITH THIS ESTIMATE, WE'RE SAYING, WELL, NORMALLY, WE REALLY USE LESS THAN A MILLION DOLLAR IN ANY GIVEN YEAR.
WE'RE PUTTING FOUR MILLION DOLLARS BACK INTO THIS AVAILABLE FOR US TO SPEND.
WE DID A FEW OF THOSE ITEMS, AND THAT'S WHERE WE COME UP WITH THE $85.4 MILLION DOLLAR AVAILABLE FOR [NOISE] PROJECTS MOVING FORWARD.
AS YOU HAVE SEEN IN THE PAST, IN FEBRUARY PRESENTATION, WE DEFINITELY HAVE MANY NEEDS.
WE ARE DEFINITELY PLANNING TO MAKE GOOD USE OF THAT RESERVE WITH COUNSEL'S APPROVAL, OF COURSE, AS WE MOVE FORWARD.
>> BUT FIRST OF ALL, I JUST SAID THE MAYOR, LESS CONSERVATIVE AMOUNT.
I'M SURPRISED THIS ONE OVER HERE DIDN'T JUMP OUT OF [OVERLAPPING].
I'VE NEVER HEARD YOU QUITE SAY THAT [LAUGHTER] AND SECONDLY [LAUGHTER] THAT'S ALWAYS CONSERVATIVE, WHICH WE'RE NOT COMPLAINING.
AT ALL. BUT ON THE FIVE MILLION DOLLARS AND YOU SAID THAT WE DON'T USUALLY END UP SPENDING THAT.
WHY DON'T WE FREE UP TWO MILLION DOLLARS AND USE IT SOMEWHERE? LIKE TRANSPORTATION.
[INAUDIBLE] TO A LARGE EXTENT WE DO THAT.
THE FIVE MILLION DOLLARS IS BUDGET CAPACITY.
IT'S BUDGET AUTHORIZATION IN CASE THERE IS A NEED FOR SOMETHING THAT WE DIDN'T PLAN FOR.
>> IT DOESN'T STOP US FROM PLANNING AND SCHEDULING FUNDING FOR PROJECTS.
SPECIFICALLY, FOR INSTANCE, THE TANGERINE FARMS ROAD EXPANSION.
THERE IS FUNDING IN THE BUDGET FOR THAT TRANSPORTATION OUT OF THE GENERAL FUND.
FOR TRANSPORTATION RELATED PROJECT FROM THE GENERAL FUND.
BUT REALLY ALL THE FIVE MILLION DOES IS IT BASICALLY SAYS THERE WAS SOMETHING THAT WE COULD NOT HAVE ANTICIPATED THAT SHOWED UP IN THE MIDDLE OF THE YEAR.
RATHER THAN ROBBING A ROAD TRANSPORTATION OR OTHER PROJECT, WE HAVE THAT MONEY, THAT BUDGET AUTHORIZATION AVAILABLE, ALWAYS, OF COURSE, COMING TO COUNSEL IN A PUBLIC MEETING AND ASKING FOR AUTHORIZATION TO USE THE MONEY [INAUDIBLE].
>> HOW MANY TIMES HAVE WE HAD TO USE ANYTHING OUT OF THE FIVE MILLION?
>> THIS YEAR WE'VE USED IT TWICE.
>> JUST OVER A MILLION DOLLARS AND THE LATEST ONE WAS ABOUT $700,000 IN LAST WEEK'S MEETING, I BELIEVE, FOR THE USE FOR A DRAINAGE RELATED PROJECT THAT FAST IS WORKING ON.
>> IS THAT 1.7 MILLION OUT OF THE 500?
>> IT WAS A LITTLE OVER, SO WE HAD PROBABLY ONE AND A QUARTER MILLION OUT OF THE FIVE IS WHAT WE USED SO FAR.
>> APPROXIMATELY WHAT'S GOING ON OVER THERE.
>> ONLY THE 700,000 FOR FAST FOR THAT [OVERLAPPING]
>> OF COURSE. HOW MANY TIMES IN THE PAST FIVE YEARS HAVE WE USED IT?
>> WE USE IT ANNUALLY FOR DIFFERENT REASONS FOR DIFFERENT AMOUNTS IN PRIOR YEARS, FOR INSTANCE.
>> WE DON'T BRING IT DOWN. I'M SORRY I DIDN'T ASK THE QUESTION.
HOW MANY TIMES IN FIVE YEARS HAVE WE USED IT THAT WE BROUGHT IT DOWN BELOW 2.5 MILLION?
>> I DON'T RECALL HAVING BROUGHT IT TO THAT LOW LEVEL.
IN THE PAST, I'LL GIVE YOU A COUPLE OF EXAMPLES THAT COME TO MIND.
WE'VE USED IT WHEN THE FOOD BANK HAD NEED.
THAT WAS NOT SOMETHING THAT ANY OF US COULD HAVE ANTICIPATED.
PD, OUR POLICE DEPARTMENT, WE HAD AN ISSUE WITH SOME OF THE EQUIPMENT, SOME OF THE RADIOS WERE ALL OF A SUDDEN, THERE WERE COMPATIBILITY ISSUES.
WE CAME TO COUNSEL A COUPLE OF YEARS BACK.
THAT WAS IN THE NEIGHBORHOOD OF $700,000.
THE COUNSEL APPROVED TO MAKE SURE THAT WE DIDN'T HAVE ISSUES.
MANY TIMES, ALSO, THE MONEY IS NOT SPENT OUT OF THE GENERAL FUND, SOMETIMES THAT IS TRANSFERRED TO ANOTHER FUND, AND IT'S ONLY THE AUTHORIZATION GOES TO ANOTHER FUND.
THE MONEY EXISTS SOMEWHERE ELSE, IT CAN BE SPENT THERE.
IT'S JUST THAT THE BUDGET AUTHORITY WAS NOT EXISTENT.
IT'S USED IN THOSE TYPES OF SITUATIONS ALSO.
>> EXCUSE ME. MR. MAYOR, VICE MAYOR MEMBERS OF COUNCIL.
I THINK I REALLY UNDERSTAND WHAT YOU'RE TRYING TO GET AT VICE MAYOR.
I THINK IF WE LOOK AT IT THIS WAY, THAT THE FIVE MILLION DOLLARS IS REALLY THERE FOR
[01:20:01]
THOSE THINGS THAT WE COULDN'T ANTICIPATE.IF WE WANT TO TAKE SOME MONEY, IF SOMETHING COMES UP, WHERE WE SAY, WE WANT TO PUT SOME MONEY TOWARDS TRANSPORTATION, YOU PULL IT OUT OF THIS FIVE MILLION, BUT THAT FIVE MILLION IS COMING FROM THE GENERAL FUND.
IF WE NEED MONEY FOR SOMETHING AND WE KNOW IN ADVANCE THAT WE'RE GOING TO NEED IT, THEN PULLING IT OUT OF THE GENERAL FUND, IDENTIFYING PULLING IT OUT OF THE GENERAL FUND WOULD BE PROBABLY MORE [INAUDIBLE].
WE CAN CERTAINLY PULL MONEY OUT OF THAT FIVE MILLION, OR WE JUST SAY, LOOK, WE ANTICIPATE IN THIS TRANSPORTATION, THESE TRANSPORTATION PROJECTS.
WE NEED THIS AMOUNT OF MONEY, WE NEED $2.5 MILLION, THEN WE TAKE IT OUT OF THERE.
WE NEED $10 MILLION, WE TAKE IT OUT OF THERE.
I THINK IT'S JUST A MATTER OF HAVING DIFFERENT POTS OF MONEY AND DECIDING WHERE WE WANT TO PULL IT FROM.
[OVERLAPPING] BECAUSE EVENTUALLY THAT MONEY'S GOING RIGHT BACK INTO THE GENERAL FUND.
>> I WAS JUST TRYING TO, SEVERAL YEARS AGO, AND WE DIDN'T HAVE THIS MUCH MONEY IN THE RESERVE FUND, BUT WE STARTED GOING UP AND UP AND UP AND WE HARDLY EVER USED IT.
BECAUSE I REMEMBER ME GOING LET'S USE SOME RESERVE FUND MONEY.
WE WEREN'T OF THE MIND TO DO THAT AT THAT TIME.
I DON'T THINK THAT'S FAIR NOW.
I THINK BECAUSE THERE'S NO IT'S RIDICULOUS TO CARRY A RESERVE FUND THAT'S VERY HIGH AND JUST LET'S SIT THERE.
WE'RE NOT IN THAT POSITION NOW, AND I UNDERSTAND THAT. HERE'S THAT [OVERLAPPING].
>> SOME OF THAT MONEY IS ALREADY SPOKEN FOR.
>> THERE'S ALREADY PROJECTS THAT THE MAYOR AND COUNCIL HAS SAID, WE WANT YOU TO MOVE FORWARD WITH THOSE.
ALTHOUGH WE HAVEN'T SPENT IT YET TANGERINE FARMS LOOP EXTENSION, FOR EXAMPLE, IS ONE OF THOSE IN THE [INAUDIBLE] INTERCHANGE.
THERE'S MONEY THAT ALTHOUGH IT LOOKS LIKE THERE'S A LOT THERE.
THERE'S LARGE POTS OF IT, LARGE SECTIONS OF IT THAT NEED TO COME OUT TO PAY FOR THESE THINGS THAT WE'VE ALREADY SAID, THESE ARE IMPORTANT AND WE NEED TO GET THEM DONE.
>> THAT'S WHERE THE TRANSFERS COME FROM, RIGHT?
>> TRANSFERS IN AND OUT. I SEE ALL YOUR LITTLE SAD FACES ON THERE.
[LAUGHTER] TALKING ABOUT TAKING MONEY AND GRANT SOMEWHERE ELSE.
DO YOU WANT TO JUST KEEP IT AT FIVE.
I JUST I DON'T LIKE THAT. NEVER MIND.
>> MOVING ON TO THE NEXT FUND. THE BED TAX FUND.
THIS IS SOMEWHERE WE'RE FOLLOWING TREND WE'RE INCREASING THE REVENUES FROM LAST YEAR, BUT WHAT WE'RE REALLY DOING HERE IS PRETTY MUCH MATCHING THE TREND THAT WE'VE BEEN EXPERIENCING OVER THE LAST COUPLE OF YEARS.
CLOSE TO 185 IS WHERE WE'RE SEEING THE COMING.
ON THE EXPENSE SIDE, THERE'S A COUPLE OF THINGS OF KNOW WERE HERE.
WE DIDN'T REALLY HAVE A LOT OF CHANGES.
WE MADE TWO CHANGES TO THE BUDGET.
WE INCREASED THE AMOUNT OF RESTRICTED TO A MILLION DOLLARS THAT'S WHERE THE NEGATIVE FUND BALANCE OF ALMOST A MILLION DOLLARS COMES INTO PLAY.
THAT REALLY REFLECTS A MILLION DOLLARS SET ASIDE [NOISE] FOR UNANTICIPATED NEEDS FOR OPPORTUNITIES NOT YET IDENTIFIED BY THE DEPARTMENT.
BUT THEY WANTED TO HAVE THAT BUDGET CAPACITY ALBEIT RESTRICTED.
IN CASE THERE WAS AN OPPORTUNITY IDENTIFIED DURING THE YEAR, THEY COULD GO TO THE TOWN MANAGER AND WITH TOWN MANAGER APPROVAL, BE ABLE TO MOVE FORWARD WITH IT AND BE FLEXIBLE AND NIMBLE IN THEIR APPROACH.
THE OTHER ITEM OF NOTE THAT YOU PROBABLY [NOISE] ARE AWARE OF NOW AND IS IN THE BOOK, IS THAT WE ARE UNFORTUNATELY YEAR 6 OF OUR CONTRACT WITH WELL, IT'S NOT YEAR 6, BUT IT'S YEAR 6 OR FIVE PREVIOUS YEARS OF OUR CONTRACT WITH THE STATE LOAN AGENCY.
WHAT THAT MEANS IS THAT THE AMOUNT THAT WE PAY FOR THE PRESERVE IS NOW SET TO ESCALATE.
AS YOU IF YOU RECALL FROM PRIOR CONVERSATIONS, THE TERMS OF THE AGREEMENT ARE THE GREATER OF 10% OR THE CUMULATIVE AMOUNT OF THE CPI FOR THE USC'S AVERAGE OVER THAT FIVE YEAR PERIOD.
UNFORTUNATELY, WITH INFLATION HAVING BEEN WHAT IT HAS BEEN FOR THE LAST FIVE YEARS, WE ANTICIPATE AN INCREASE OF PROBABLY IN THE NEIGHBORHOOD OF ABOUT 23%.
THAT'S YET TO BE DETERMINED BY THE TIME WE GET TO THE MONTH OF SEPTEMBER AND WHAT THOSE CBI FIGURES LOOK LIKE.
BUT THAT WOULD BE ABOUT $145,000 THE CURRENT PAYMENT OF $632,000 AND CHANGE WOULD TRANSITION CLOSER TO $778,000 WITH THAT ESTIMATE?
[01:25:07]
>> YOU AND I TALKED ABOUT THIS THE OTHER DAY, SO I'M GLAD TO HEAR THE NUMBERS IS STILL THE SAME.
I DON'T LIKE IT THAT HIGH, BUT BECAUSE I SAID SOMETHING TO SOMEBODY ABOUT THIS AND I SAID, NO, IT'S NOT THAT HIGH.
BUT YOU'VE SAID IT AGAIN. I'M GOING TO, AND I DON'T.
YOU'VE NEVER STRAIGHT ON THAT.
IT'S 22%, YOU THINK HIGHER? IT'S THREE.
>> IT'S AN INTERNAL ESTIMATE, THE FINAL NUMBER.
BUT REALLY THE FINAL NUMBER WILL BE BASED ON THE REST OF THE MONTHS THAT WE HAVEN'T EXPERIENCED YET AND WHAT INFLATION WILL BE DURING THAT TIME.
OVER THE FIVE YEAR PERIOD ALL THE WAY THROUGH SEPTEMBER, SO.
>> WHEN IS PAYMENT WE USUALLY MAKE IT?
>> WE NORMALLY MAKE THAT PAYMENT IN OCTOBER.
>> IT WILL BE THE HIGHER AMOUNT.
>> YES. IT WILL BE THE HIGHER AMOUNT.
>> IF I CAN JUST FOR A MINUTE.
WE HAVE ANNOUNCED PUBLICLY AT A COUPLE OF PUBLIC MEETINGS THAT THE TOWN OF MARANA IS GOING TO YOU HAVEN'T SAID BY THE TORTOLITA RESERVE? BUT THERE'S PEOPLE THAT ARE AND HERE'S ONE HERE.
THE POTENTIAL IS I'M GETTING THINGS FROM DIFFERENT PEOPLE, AND WE'RE GOING TO BUY THE FOR TOILET TO PRESERVE.
I SAID THAT'S NOT WHAT THE MAYOR SAID, AND I JUST WANT TO GO ON RECORD HERE TO SAY, THAT'S NOT WHAT HE SAID.
HE SAID THAT WE'RE TRYING TO DO THAT AND TO MAKE THINGS CLEAR BECAUSE I DON'T THINK I'VE EVER MADE IT CLEAR OR PEOPLE IS, WE HAVE BEEN TRYING TO DO THAT AS AN OPTION OVER 15 PLUS YEARS.
THAT'S NOTHING NEW. WE HAVE ALWAYS HAD THAT AS AN OPTION.
BUT EVERY TIME WE GO UP AND IT'S BEEN, I THINK, OVER A YEAR, AT LEAST ONCE A YEAR, AND IT'S BEEN I THINK TERRY'S OUR FOURTH TOWN MANAGER OR FIFTH.
I THINK IT GOES BACK TO HEINE WHO DID THE DEAL.
IT'S BEEN A LOT OF TOWN MANAGERS.
I JUST WANT TO MAKE IT REALLY CLEAR THAT FOR THOSE THAT ARE PUTTING IT OUT THERE IN A DIFFERENT WAY OR MAYBE NOT A VERY CLEAR WAY, THAT TOWN MARANA DOES NOT OWN THE TOTAL IN PRESERVE.
>> THE PEOPLE IN DOVE MOUNTAIN DO NOT OWN, THEY TOTALLY PRESERVE.
ARIZONA STATE LAND OWNS THE PRESERVE, AND WE HAVE A 99-YEAR LEASE AND WE'RE GOING TO CONTINUE TO NEGOTIATE WITH THEM.
BUT THEY'RE GOING TO WANT SOMETHING, AND WE'VE ALWAYS KNOWN THAT.
I THINK SOME OF THEIR ASKS COULD BE ON YOUR PALATE, IT DOESN'T PLAY, FOR THE TOWN OF MARANA.
BUT THAT'S ALL I WANTED TO SAY IS FOLKS, PLEASE BE CAREFUL ON HOW YOU SAVE IT.
>> OUR GOAL IS TO TRY TO ACQUIRE, TOTALLY TO PRESERVE, AND HAVE THE TOWN BE THE ENTITY THAT OWNS IT.
WE WENT AND EXPRESSED THAT GOAL TO THE ARIZONA STATE LAND DEPARTMENT, AND THEY WERE VERY RECEPTIVE TO THAT.
BUT THAT IS NOT ANYWHERE AS EASY AS IT SOUNDS.
THERE WILL BE A LOT OF FINANCIAL ANALYSIS THAT GOES ALONG WITH THAT.
I BELIEVE THAT IT'S POSSIBLE THAT WE CAN DO THAT, BUT IT IS A LONG ROAD BEFORE THAT IS DONE.
WHILE IT REMAINS THE GOAL OF THIS COUNCIL TO PURCHASE THAT.
THERE'S A LOT OF WORK TO DO BOTH HERE INTERNALLY AND WITH THE STATE LAND DEPARTMENT TO MAKE THAT HAPPEN.
IN THE MEANTIME, THE LEASE IS BEING PAID, IT'S SAFE, IT'S NOT GOING ANYWHERE.
BUT SOMETIME BEFORE THE TERM OF THAT LEASE IS UP, WE WILL FIGURE OUT A WAY TO OWN IT.
>> YES. MAYOR, VICE MAYOR, I THINK YOU BOTH STATED IT VERY WELL.
THE TOWN HAS BEEN INTERESTED IN A DEAL THAT IS MORE PALATABLE FOR THE TOWN.
[01:30:07]
TRYING TO GET THERE IS NOT AN EASY THING.IT SOUNDS LIKE A VERY SIMPLE, THE TOWN BUYS IT, BUT THE FACT OF THE MATTER IS IT HAS TO GO OUT TO BID.
THAT'S THE LAW. THERE'S ISSUES WITH THAT.
SOMEBODY COULD OUTBID US AND THEN WHAT DOES THAT LOOK LIKE?
>> WE'RE STILL PAYING THE LEASE TO SOMEBODY ELSE NOW.
WE HAVE TO PLACE OURSELVES IN A POSITION WHERE WE WORK OUT A DEAL THAT MAKES SENSE FOR STATE LAND.
I THINK WE ARE AND PROBABLY AS GOOD A POSITION AS WE'VE EVER BEEN BECAUSE OF THE STATE'S DESIRE TO OPEN UP STATE LAND.
THE GOVERNOR HAS STATED THAT IN NUMEROUS PUBLIC ADDRESSES THAT SELLING OFF PUBLIC LAND IS REALLY A MAJOR PRIORITY FOR HER.
IF THAT'S A MAJOR PRIORITY, I'M NOT SAYING THAT WE'RE IN THE DRIVER'S SEAT BECAUSE I DON'T BELIEVE THAT THAT'S THE CASE, BUT I THINK IT PUTS US IN A LITTLE BIT BETTER POSITION WHEN IT COMES TO BARGAINING AND WORKING OUT THE DEAL.
>> ON THAT NOTE, STATE LAND EMPLOYEES WERE EXTREMELY RECEPTIVE TO US, COULD NOT HAVE BEEN NICER.
UNDERSTOOD OUR DESIRE TO WANT TO OWN THIS, PRESERVE.
WE DISCUSSED SEVERAL AVENUES OF HAVING DOING THAT.
WE LEFT THE MEETING ENCOURAGED, BUT YET KNOWING THERE IS A LONG ROAD TO GO.
>> I THINK IT SUMMARIZES IT FOR ME.
>> I HAVE A REASON OF SAYING THIS.
FOR THE YEARS THAT WE'VE HAD IT, EVERYBODY KNOWS WHY WE'VE HAD IT ALMOST EVERYBODY.
WHEN WE GO UP THERE AND WE COME BACK, WE GET THE SAME REPORT, TERRY, I'M JUST SAYING.
THEY'RE VERY ENCOURAGED BY US COMING UP AND THEY WANT TO TALK ABOUT IT, AND WE'RE TRYING TO GET TO IT.
BUT IT'S BEEN YEARS AND YEARS.
THAT'S JUST WHAT I'M SAYING IS FOLKS THAT ARE GOING AROUND SAYING WE'RE GOING TO GET THIS DONE.
TO ME RIGHT NOW, THE MOST IMPORTANT THING IS TRANSPORTATION.
I'LL SAY IT NOW IS ANY MONEY THAT COMES INTO THIS TOWN FOR WHATEVER REASON, JOHNNY, COVID, WE'VE GOT MONEY AND THIS.
I THINK EVERY BIT OF THAT OR MOST OF IT SHOULD GO TO TRANSPORTATION.
I JUST WANT TO GET PEOPLE CLEAR THAT THIS IS GOING TO BE A LONG TIME. I JUST LEAVE IT AT THAT.
>> BY BACK OF THE NAPKIN ANALYSIS WOULD TELL ME THAT RIGHT NOW CURRENTLY IS NOT SAVINGS OF TIME TO BUY IT, 700,000 IS PROBABLY A REASONABLE RATE.
WE HAVE TIME BEFORE THERE'S A COST SAVINGS BENEFIT TO PAYING ON DEBT SERVICE OR PAYING THE LEASE.
WE HAVE TIME TO PUT TOGETHER A DEAL THAT IS BENEFICIAL TO BOTH PARTIES AND THAT MOVES FORWARD.
WE JUST WANT TO MAKE SURE THAT WE CONTINUE TO HAVE DISCUSSION WITH ARIZONA STATE LAND DEPARTMENT.
I THINK THAT THERE WILL BE A TIME THAT THIS IS ABLE TO CONVERGE AND WE BOTH WENT.
>> I LIKE TO DO ONE THING. I AGREE WITH MAYOR ON THIS AND THE THING THAT I SAW IN THE BEGINNING ON LEARNING ABOUT THE PRESERVE IS 50 YEARS FROM NOW, WHAT THAT PAYMENT IS.
IF WE ARE DOING WHAT WE CAN NOW TO REDUCE THAT, AND THE BEST WAY TO DO THAT IS US TO OWN THE LAND.
WE'VE GOT TO WORK EVERYTHING WE CAN DO TO GET THAT BECAUSE IF YOU LOOK AT THOSE NUMBERS, IT WORKS. THEIR SYSTEM.
IT ONLY WORKS FOR ONE PARTY IN THIS, THEM, BUT WE'RE THE ONES THAT BEAR THE BURDEN OF ALL OF IT AND THE SOONER WE CAN DO THAT, WE NEED TO HAVE A WAY OF RELAYING THAT TO THE PUBLIC AND BEING ABLE TO SHOW THAT NUMBER THAT JUST GETS RIDICULOUSLY HIGH WHEN NOBODY IN THIS ROOM OR NOBODY LOOKING AT IT NOW IS GOING TO SEE IN THE FUTURE.
>> MAYOR, YOUR TALK WITH STATE LAND, DO THEY TALK ABOUT PUTTING THE LAND UP FOR PUBLIC AUCTION NO MATTER WHAT THEY DO AND THE RISK THERE.
>> THEY'RE PRESERVING. THEY WON'T PUT IT UP FOR AUCTION UNLESS WE PUSH THAT ISSUE.
THEY'RE HAPPY IN THEIR POSITION.
THEM PUTTING IT UP FOR AUCTION WOULD BE AT OUR NEGOTIATED REQUEST THAT THEY PUT THAT UP FOR AUCTION.
[01:35:05]
THEY'RE THRILLED BECAUSE THAT MONEY IS OPERATING MONEY FOR THEM.IF THEY SELL IT, IT GOES INTO A DIFFERENT POT.
BUT RIGHT NOW THAT'S OPERATING MONEY THAT THEY GET TO USE INTERNALLY, AND SO THEY'RE THRILLED WITH WHAT'S GOING ON.
>> I'M CONCERNED IF THEY DECIDE TO PUT IT UP FOR AUCTION BEFORE THEY MAKE A DECISION ON WHAT TO DO, THAT COULD BE A RISK FOR US.
>> I DON'T BELIEVE. I THINK COUNCILMEMBER KAI, I DON'T THINK BASED ON THE CONVERSATION WE HAD WITH THEM THAT THERE'S ANY INTENT TO SELL IT UNLESS WE'RE AT A POINT WHERE WE'RE REALLY READY AND WILLING TO BID ON IT AND FEEL COMFORTABLE THAT WE CAN WIN THE BID.
BECAUSE AT SOME POINT THIS DOESN'T BECOME BENEFICIAL, PROFITABLE FOR SOMEBODY ELSE TO BUY IT BECAUSE THE LEASE GOES WITH IT.
AT SOME POINT THAT DOESN'T BECOME PROFITABLE.
WE NEED TO FIND THAT SWEET SPOT, I THINK, IS WHAT THE MAYOR IS TALKING ABOUT FINDING THAT SWEET SPOT WHERE IT MAKES SENSE.
>> BUT WHAT WE DO NEED TO AVOID DOING, AND THIS IS WHAT MAKES IT DIFFICULT IS WE'RE NOT WILLING THIS TIME AROUND TO LET THEM RECONFIGURE IT AND CANCEL THE LEASE.
WE WANT THE PRESERVE INTACT, AND THAT'S THE GOAL THIS TIME AROUND. THAT'S IMPORTANT.
WE GOT TRAILS UP THERE, THE COMMUNITY LOVES IT, WE FENCED IT.
WE DON'T WANT TO SPLIT UP PARCEL OF, AND THEN WE MAKE A DEAL.
THAT'S NOT THE GOAL. THE GOAL IS TO HAVE THAT PARTICULAR PRESERVE.
>> MR. MAYOR, I THINK WE PROBABLY WRAP UP THIS CONVERSATION.
WE'RE GETTING A LITTLE BIT INTO THE DETAILS OF THE LEASE AND THE NEGOTIATIONS REGARDING THE LEASE RELATE TO THAT.
>> THAT'S PROBABLY GOOD LEGAL ADVICE.
>> THANK YOU, MAYOR. [OVERLAPPING]
>> THAT MOVES US ON TRANSPORTATION.
>> SPEAKING OF TRANSPORTATION IS NEXT.
>> EVEN THOUGH WE HAVE A LOT OF DOLLARS HERE, WE DON'T HAVE A LOT OF CHANGES ON CONTRACTED SERVICES OR REVENUES OR OPERATING EQUIPMENT.
IF YOU RECALL LAST YEAR, WE CARRIED FORWARD ABOUT $1.7 MILLION IN PAVEMENT PRESERVATION.
A LOT OF THE MOVING PARTS HERE IS THAT IS COMING OFF.
BUT WE ARE INCLUDING ALMOST $1 MILLION OF THIRD PARTY MONEY, PEOPLE THAT COME TO US AND THEY PAY US TO DO A PORTION OF A PROJECT ON THEIR PROPERTY.
IT IS TO THE TOWN'S BENEFIT BECAUSE AS WE GO OUT AND WE DO PAVEMENT PRESERVATION, WE DON'T HAVE TO INCONVENIENCE EVERYBODY 10-15 TIMES FOR ALL THESE LITTLE PROJECTS.
WE HAVE ABOUT $1 MILLION OUT OF THAT $2.2 MILLION DEFICIT FOR THAT.
ALMOST ALL OF THAT DEFICIT HAS TO DO WITH THAT TYPE OF ONE TIME REQUEST.
ONE TIME PROJECTS, WE STILL HAVE $200,000 THAT'S IN THERE FOR MONSOON OR OTHER UNANTICIPATED EMERGENCY NEEDS.
A NUMBER OF EQUIPMENT AND VEHICLE PURCHASES RELATED SPECIFICALLY TO HURF, SOME INCREASES FOR LANDSCAPE.
THAT'S WHAT WE'RE SEEING THERE AND SOME CARRY FORWARDS.
OTHER THAN THAT, REALLY, THE DEPARTMENT IS STILL WORKING ON THE PAVEMENT ASSESSMENT THAT THEY'RE HOPING TO FINALIZE THIS FISCAL YEAR, AND THEN THIS BUDGET WILL PUT US IN GOOD POSITION NEXT YEAR TO MOBILIZE AND DO ANY OF THAT WORK THROUGH THIS UPDATED ASSESSMENT THAT THE DEPARTMENT IS WORKING ON.
FROM THERE, WE GO TO THE WATER OPERATING AND WASTEWATER OPERATING.
EVEN THOUGH THE NUMBERS DIFFER HERE, A LOT OF THE CHANGES THAT WE WILL SEE IN BOTH THESE SLIDES ARE PRETTY MUCH OF SIMILAR NATURE.
OUR CHARGES FOR SERVICES HAVE TO DO WITH JUST BASICALLY, FOR THE MOST PART, ACCOUNT GROWTH.
THAT'S WHAT WE'RE EXPERIENCING.
EXPENDITURES, YOU CAN SEE, HAVE NOT CHANGED VERY MUCH.
TRANSFERS THAT ARE USUALLY MONEY THAT WE RECEIVE TO MAKE THE DEBT SERVICE PAYMENTS ARE PRETTY STEADY FOR THE TRANSFERS IN AND THE TRANSFERS OUT ARE MONEY THAT IF CERTAIN PROJECTS MOVE FORWARD, WE MIGHT UTILIZE FROM THIS SOURCE TO PAY FOR THOSE PROJECTS.
BUT OTHERWISE, WE DON'T HAVE A LOT OF CHANGES HERE, AND I'M GOING TO GO PRETTY FAST.
SAME VERY SIMILAR SITUATION FOR WASTEWATER.
[01:40:04]
AGAIN, ACCOUNT GROWTH, PRETTY STEADY EXPENDITURES AND THE SAME PICTURE FOR TRANSFERS IN AND TRANSFERS OUT.LEAVING US REALLY WITH THE AIRPORT, WHICH THIS IS THE OPERATING SIDE.
IN YOUR BUDGET BOOK, YOU WILL SEE THAT IS COMBINED CAPITAL AND OPERATING.
WHAT YOU'RE SEEING ON THE CAPITAL SIDE IS THE RESULT OF THE AIRPORT CIP PLAN, THAT IS SOMETHING THAT IS VETTED BY OUR DEPARTMENT, BUT REALLY DETERMINED LARGELY BY THE FEDS AND THE STATE.
WHILE IF YOU WERE TO LOOK AT LAST YEAR, WE HAD A LOT OF MONEY BUDGETED IN FISCAL YEAR '25.
ONCE WE CAME INTO FISCAL YEAR '25 AS A BUDGET YEAR, THE FEDS CAME IN AND THEY SAID, WE LIKE THE PROJECTS YOU HAVE HERE.
BUT WE WILL ADJUST THE TIMING OF WHEN THOSE WILL GET DELIVERED.
WE REALLY ARE BEING ASKED TO PRETTY MUCH SPEND ABOUT THE SAME MONEY OVER THE FIVE-YEAR PERIOD, JUST AT A DIFFERENT TIME OVER THAT FIVE-YEAR PERIOD.
THAT'S WHAT WE'RE SEEING IN THE FISCAL YEAR '26 BUDGET, WE'RE SEEING ABOUT $4 MILLION FOR CAPITAL INSTEAD OF THE 16 WE HAD LAST YEAR, AND AS A RESULT OF THAT, WE'RE ALSO SEEING REDUCED INTERGOVERNMENTAL REVENUES SINCE THE FEDERAL AND STATE RESOURCES PAID 90-95% OF THOSE PROJECTS.
ON THE OPERATING SIDE, WE DON'T HAVE A LOT OF CHANGES.
OUR REVENUES ARE GOING UP SLIGHTLY BECAUSE WE DID RENEGOTIATE OUR LEASE AT THE AIRPORT.
THAT'S THE MAJORITY OF THE INCREASE THAT YOU'RE SEEING HERE.
EXPENDITURES ARE GOING DOWN A LITTLE BIT.
WE COMPLETED SOME ONE TIME PROJECTS RELATED TO SECURITY AND SOME CAMERA SURVEILLANCE INSTALLATION AT THE AIRPORT, WHICH ALSO THANKFULLY HAS THE GENERAL FUND CONTRIBUTING A BIT LESS MONEY THAN LAST YEAR FOR A BREAK EVEN POINT.
>> I WANT TO SAY SOMETHING HERE ABOUT THE AIRPORT.
THIS WILL BE THE FIRST YEAR, I THINK THAT I'M NOT GOING TO LINE IN MIDDLE.
>> SECONDLY, BECAUSE OF OUR NEW MAYOR ANY GET HEADACHES WHEN I TALK ABOUT THAT? IT IS MY GIFT TO YOU.
>> FLYING THROUGH TO NEXT STEPS.
AS I MENTIONED AT THE BEGINNING OF THE PRESENTATION, THE NEXT STEP IS THE TENTATIVE BUDGET.
WE ARE PLANNING TO COME BACK TO COUNCIL ON 20 MAY.
THERE WILL BE SOME CHANGES, AS THERE HAVE ALWAYS BEEN IN PREVIOUS YEARS.
WE WILL PROVIDE COUNCIL WITH AN UPDATED DOCUMENT, THE BUDGET YOU HAVE IN FRONT OF YOU.
AS BEFORE, WE HOPE TO HAVE A SINGLE PAGE SUMMARY.
THAT WAY, YOU DON'T HAVE TO READ THE FULL DOCUMENT AGAIN.
I BELIEVE THAT'S WORKED WELL IN PRIOR YEARS.
I HOPE TO REPEAT THAT AGAIN THIS YEAR.
THEN AFTER THAT TENTATIVE ADOPTION ON MAY 20, AND WE HOPE TO COME BACK ON JUNE 17 FOR A FINAL ADOPTION FOR THE BUDGET FOR FISCAL YEAR '26.
WITH THAT, I WILL BE HAPPY TO TAKE ANY ADDITIONAL COMMENTS OR FEEDBACK.
>> DO WE HAVE ANY QUESTIONS FOR JON OR TOWN MANAGER ROSEMAN?
>> I WOULD LIKE TO THANK YOU GUYS FOR ALL OF THE HARD WORK THAT YOU PUT INTO BRINGING FORWARD THE MANAGER'S RECOMMENDED BUDGET.
I KNOW THAT THERE WAS A LOT OF STAFF TIME, DIRECTOR TIME, DEPARTMENT TIME, AND I HAD A LOT OF HARD WORK. I HEAR ABOUT IT.
NOBODY WANTS TO DO ANYTHING TO WORK ON THE BUDGET.
THAT THING. [LAUGHTER] ANYWAY, I KNOW THAT A LOT OF HARD WORK HAS GONE INTO IT. IT'S A GREAT BUDGET.
MEETS ALL THE REQUIREMENTS THAT COUNCIL HAS SET FORWARD, AND IT LOOKS GOOD.
EVERYBODY GOOD WHEN WE WRAP UP?
>> I WOULD LIKE TO SAY THAT TO BE HONEST, I THINK YOU'RE USING GOOD NUMBERS.
I THINK YOU NEED TO BE VERY CONSERVATIVE ON YOUR NUMBERS BECAUSE YOU CAN'T PROJECT TOO HIGH BECAUSE SOMETIME WE NEVER GET THERE.
I THINK THAT'S GOING TO PROTECT US IN A WAY WITH YOUR CONSERVATIVE ESTIMATES.
>> THANK YOU. ANYBODY ELSE? NO. WE DON'T NEED AN EXEC SESSION.
>> WE WOULD MR. MAYOR ASK FOR A MOTION.
THERE'S A SUGGESTED MOTION TO MOVE.
>> THOUGH WE JUST DIDN'T COMPLAIN ABOUT IT, AND MOVED FORWARD.
>> PLEASE, I WOULD ENTERTAIN A MOTION.
D1? YOU HAVE TO MAKE IT SHORT REALLY.
[01:45:03]
>> THERE IS A SUGGESTED MOTION.
>> THERE IS A SUGGESTED MOTION FOR YOU.
>> I'M GOING TO MAKE A SUGGESTED MOTION.
I MOVE TO DIRECT THE TOWN MANAGER TO INCORPORATE THE ITEMS DISCUSSED THIS EVENING AND THE PREPARATION OF THE TENTATIVE BUDGET, WHICH WILL BE CONSIDERED FOR POSSIBLE ADOPTION ON MAY 20, 2025.
>> MOTION ON THE SECOND. ALL THOSE IN FAVOR.
>> MOTION PASSES. THANK YOU VERY MUCH.
>> ANY FUTURE AGENDA ITEMS? MOTION TO ADJOURN?
>> WE'RE ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.