Guest View-Council Member Mike Zinkin: "Oro Valley Spending Lacks Fiscal Restraint"

On July 1, a salary adjustment was awarded all Oro Valley town employees. The adjustment was a minimum of 2%.  Some employees (such as theEconomic Development Manager, the Town Clerk, the Human Resources Director, and Finance Manager) received adjustments closer to 6%. Keep in mind that the Town's contribution to the employee retirement in a percentage of their salary. As the salary goes up, the retirement contribution goes up.

This adjustment is for "non-sworn" employees only. The "sworn personnel" received a similar increase, based on the same study, when the majority voted for the Police memorandum of understanding.

Source: Town of Oro Valley

Between now and next June 30, every Oro Valley employee also will receive a merit increase. This increase will range from 3.5%, for an acceptable rating, to 4% for an outstanding rating. This adjustment does not allow for future Cost of Living ("COLA's").  In lieu of COLA's the employee will receive a merit increase ranging from 3.5 - 4%.

Then consider the fringe benefits received by the town's employees: A free health clinic, free health insurance, free dental insurance, and free vision insurance. Plus, overtime paid for hours scheduled in lieu of hours actually worked.

Doing all of this does not allow Oro Valley to over-seed our parks in the winter, restore Steam Pump Ranch, or engage in any other citizen-centric improvement.

The spending spiral must end.

I want to be clear.  I have never said not to give our employees a raise. In fact, I said give them a 2% increase and their step/merit increases; not an adjustment into a different system.  Yes, our employees had some years without raises, but that was driven by the economy.

Let the economy establish the baseline for increases, not the towns to which Oro Valley was compared in a questionable 2014 comparative wage salary study.  80% of the towns included in this study have both a Primary and Secondary Property Tax. Is this where the majority of council want to take Oro Valley?  Most of these towns are located in Maricopa County.  The average population of the towns is over 117,000, almost 3 times the population of Oro Valley.



On July 7,  Council Member's Bill Garner, Brendan Burns, and I sent a formal request to Town Manager Caton to determine what this year's Oro Valley employee "salary adjustment" is in real dollars.  We await his response.

In the meantime, it is time for the  council majority (Mayor Hiremath and Council Member's Hornat, Snider and Waters), in their role as candidates for office, to explain their rational for their vote to allow all of this to occur.

The council majority will tout "improvements" in the Aquatic Center and the Naranja Park fields. These were funded by dipping into Oro Valley's savings. This reckless spending does not allow us to live within our means. We even have to dip into savings (Contingency Reserves) for a software update and a purchase of a triple wide trailer.

Don't let these "improvements" overshadow the fact that Oro Valley is living beyond its means and that it is forecasted to continue to do so.
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You can learn more about Council Member Zinkin by visiting the  Town of Oro Valley town web site.
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Council Approves 2013-2014 Budget

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The Oro Valley Town Council approved the fiscal 2013 budget by a 5-2 margin last Wednesday. The dissenting votes were Council Member Garner and  Council Member Mike Zinkin,  They both want to see greater introspection of police spending and more funds allocated to areas such as parks and recreation and cultural services.

Council Member Burns voted for the budget as a show of confidence in town manager Caton, though at a previous council session he had said that he would not vote for this budget.

According to Finance Manager Stacey Lemos, the budget was the result of five month's of activities. There are two changes that were made from the town manager's recommended budget. One was to increase the funding the the Greater Oro Valley Chamber of Commerce to $30,000 from $20,000. The second was the move the remaining $197,000 in the library fund to the current budget, designated as a "council-designated contingency reserve." This is a reserve of funds that the council can designate for whatever use it wished. There were no other changes to the budget.

Lemos reminded the council that it can amend the budget at any time it wishes during the fiscal year.

There were a number of people who spoke at the public hearing.  None of the comments changed the budget in any way:

Resident John Musolf observed that the town has already spent, over the years, more than $600,000 on studies and surveys related to the Naranja Town Site.  He asked why the town needs to spend another $80,000 for external consultants to do a Naranja town site.  John's comments were ignored.

Several speakers spoke to extol the virtues of police chief Danny Sharp. They included Richard Tracey Sr., an Oro Valley resident with police experience. Tracey was a major contributor to the campaigns of Mayor Hiremath and Council Members Waters, Snider and Hornat.

Tracey "likes what he sees" when it comes to the efficiency of the The Oro Valley Police Department.  "We have a safe community and well run police department."  He criticized Council Member Zinkin for even questioning the police budget in any way.  Apparently, to Mr. Tracey, Council Members should be "seen buy not heard."  Zinkin later noted that his question of the police budget has nothing to do with Chief Sharp.

Resident Don Bristow noted:  "Its interesting on how everyone is focusing on [Chief] Danny Sharp when the real issue is the budget.  Obviously, the 14% increase, bigger than any other department, the Council should be asking questions." He noted that it is the job of those on council to question the budget.

Town resident and employee Carmen Traveso noted that hearing, several weeks ago, that having employees even pay a portion of their own health premiums was really distressing for her.  "We haven't had raises in four years."  Also, she noted, that "Im a good representative of  what this time is a made of...it is the employees that make this a great place to live."  Council Member Zinkin apologized for making this suggestion at the last council meeting.  "I have utmost respect for the town's employees."

"There's more to a balanced budget than dollars and cents. There's also the service obligation," noted resident Bill Adler.  He noted that there is not money in the budget for historic preservation.  There was, however, thanks to Council Member Snider, an extra $10,000 to give to the Chamber.
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Not All On Council Agree That "The Budget Is Fine" for 2013-2014

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Council Member Mary Snider announced at last week's Oro Valley Town Council Meeting that "The budget is fine."  Apparently, there is nothing in the budget with which she does not agree; except for the "need" to increase the town's contribution to the Greater Oro Valley Chamber of Commerce.

Her opinion, however, is not shared by all council members. and residents.

Oro Valley Town Manager Caton has, on several occasions, noted the significant time and effort expended in creating the budget. He and his team have used the General Plan and the Strategic Plan as the guide for creating this year's plan.  The plan's core themes are:

• Investment in town employees
• Investment in infrastructure and town assets
• Investment in technology
• Economic development as a key strategy to achieve a healthy financial environment
• Support of quality-of-life programs and services for the community
• Revenue enhancements and expenditure reductions.

"As our economy is still very fragile, we are seeing signs of steady, slow growth and the budget reflects the changing market," Caton noted at last week's meeting.  Caton is confident in the future: "In the coming fiscal  year, we are conservative in our revenue estimates but we are seeing returns on these previous year investments specifically including the areas of special events, annexation, economic development, and business activity."  Caton is proud that Oro Valley has received national awards for its previous budgets.
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No one doubts the effort nor the intent of the budget.  Still, even the most well-prepared budget requires thorough independent inspection on behalf of the residents of Oro Valley.
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Council Member Zinkin identified more than $429,000 in potential savings in this year's proposed budget, savings which, he believes, should be added to our Parks, Rec and Cultural Service program for over-seeding our parks in the winter; establishing a dog park; installing water fountains along the CDO Trail, and increasing cultural services

Council Member Snider spent time rebutting Council Member Zinkin on all items on which Zinkin spoke.  Apparently, there there is nothing in the budget with which she does not agree. 

Council Member Garner recommended considering leasing a police evidence facility as a means of reducing cost, the purchase of hybrid police vehicles to reduce fuel costs, and stated:  Garner advocates managing the Oro Valley Police Department in a "...very efficient way."

"All I'm driving for is efficiency" in Oro Valley spending, he noted. "Let's manage. Let's get efficient. Let's look at things that do in this community so that we can be #1."

Council Member Snider also spoke on her survey of take home cars, all of which support the use of take home cars for police officers.  For example, she noted, all Sahuarita Officers have take home cars.   Previously, she had said that Oro Valley should not be compared to other cities and towns when it comes to public safety issues.  Commissioner Garner noted: "I would have no problem with the [Oro Valley} take home policy if Oro Valley would acknowledge that this is a benefit....then compensation would be adjusted accordingly."

Council Member Burns has "...some major problems with this budget...mostly because I don't think that it fits with the vision of what Oro Valley is or what it wants to become. I don't think that we are making the proper investments to develop arts, culture, or recreation.... Our parks and recreation are woefully inadequate...families are a woefully under-represented in this town when it comes to services and I think that this needs to change."  

Burns recommended that the Chief of Police report to the town manager and not to the council; thus  removing discussion of the police budget from the political realm. 

Council Member Hornat said he supports the town salary and wage survey only because the town manager thought it should be in the budget.  Otherwise, his experience tells him that it will be of no benefit to the town. He supports doing a Naranja plan as long as it focuses on return on investment.  "Sometimes you have to spend money because you have it." "I'm not ready to take a chance" on reduced police staffing.  

Oro Valley resident John Musolf commented on a substantial sum in the budget for a police evidence facility. Chief Sharp stated, at the study session of April 24, that a consulting study, dated in 2007, justified the facility.  John, and others, feel otherwise.

On May 15, it is likely that town council will approve the town manager's recommended budget  as submitted.  We base this conclusion on the nature and depth of the questions offered by Council Members Hiremath, Snider, Waters and Hornat.  It is clear that the are supportive of all spending in the budget.  As they are the majority, this budget will pass.
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Oro Valley Council Considers Revising Town Codes

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There are a number of important items on tonight's Oro Valley Town Council a meeting agenda.  The agenda includes includes a major change to the building code; presentation of the Oro Valley five-year fiscal forecast; adoption of the proposed $93.9 million budget for 2013-2014; approval of the public participation plan for the town's general plan update; and discussion of what to do with the $197,000 that remains in the Oro Valley Library fund. These funds are no longer needed for the library since  Pima County now runs a library.

Any one of these items is worthy of  an entire Council meeting.   

• Has the Council really completed discussion on the $94 million budget?  There and been two public meetings.  Are we to assume that the Council had done sufficient diligence to warrant approval? 
• Then there is the hundred pages worth of code changes, purported "updates" to the code.   Some of these have far reaching impacts on you.

"In it, 'big brother' Oro Valley sets minimum requirements for anything you can think of.  You need to put  carbon monoxide detectors in your home.  Changes will require arc fault detection in all rooms,  require that electrical outlets be put in large foyers,  increase the insulation factors in ceilings and walls, increase the insulation factor in duct work,  require automatic timers for pool heaters, require covers for heated pools, and require high-efficiency lamps for permanently installed fixtures.   

The changes require a permit for pool repairs unless the repairs do not involve electrical, mechanical and plumbing; the cost is less than $1K in a 12 month time period.  

Isn't all this worthy of detailed inspection and discussion? 

• And what of the $197,000?    It seems like some on council want to spend the money before the end of this fiscal year. Otherwise it will be carried into next year.   Why not simply transfer into the contingency fund?
• Has sufficient time been spent discussing the public participation plan?   The last time we heard about it he was just being introduced two weeks ago.

We don't know how long tonight's council meeting will run. We are more concerned with the diligence with which each item is going to be considered by Council. It it possible for Council to give thoughtful consideration of so many important items in one meeting?

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Challenging The Budget-- What Is The Role Of Town Council?

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"Our job is to set policy. Stay at that $50,000 foot level.  Feel free to ask whatever question you would like.  I do not want this to turn into a 'tit for tat'. " That is how Mayor Satish Hiremath opened the Town Of Oro Valley Town Council 2013-2014 budget session last week.

Later, the Mayor stated his view of the council's role in the budget process.  His view is that the council provides overall guidance to the budget, insuring that it is directionally within their policy and philosophical goals.  For example, in  the Mayor's view, it is not the role of council to instruct Mr. Caton to move funds among departments.  If the council would want to make a change like this, the Mayor stated that they would go to Mr. Caton, tell him what they want to accomplish and then let him, working with the directors, determine how to make it so. (Source: 4-24 Oro Valley Town Council Special Session, 50 minute mark [approx]).

Mr. Caton agrees. "I believe that is correct.  The budget preparation is a 5-6 month process.  It involves many stakeholders including community, employees, council.  We use two primary documents as our guiding light.  One...is the general plan...and also the recently approved council strategic plan.  So we use those to make our recommendations for the allocation of resources to deliver the programs and services for the community.  It is ultimately the council's responsibility to adopt that budget but we provide a recommendation on the best way of allocation."

It appears that not all council members agree that with the Mayor's view.

Last week, Council Member Zinkin questioned Oro Valley Police Chief Dan Sharp on the police budget. He asked questions regarding the extensive overtime budgeted.  He queried about a substantial budget request to build an evidence facility, a facility that Chief Sharp started was justified by a 2007 summary of overall town facility needs.  He asked about the Chief Sharp's use of a ratio of 2.4 police per resident, noting that other "safe" towns had far lower ratios.  He asked why the police department needed its own information technology department.  He asked about the substantial increase in spending on police (video).   Chief Sharp responded directly to each question.  The dialogue brought forth the reasoning behind the police department proposed budget.

Apparently, Council Member Zinkin sees the role of the town council differently than the Mayor regarding inspection of and approval of the budget.  It appears that he believes that it is not the job of a council member to merely review the town's recommended budget. Nor is it any council member's job to assume that someone has done this for them.  It is council member's job to challenge these budgets on behalf of the residents of the town. So, when a council member does challenge a budget, they are doing the job they were elected to do.

What do you think?  Which position do you believe best produces a fiscally responsible budget?  Is the role of the council to do a budget oversight or is it their role to dig into the budget to determine that the town is spending your money wisely?  Or, perhaps, you think it is something in between?

What's your opinion?
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You Are Oro Valley's Source Of Sustainable Revenue

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If we asked you your budget for the year would you add your saving account to it?  Well, that's what the Town Of Oro Valley does, and all other municipalities, in describing the dollar size of their budgets.

The actual 2013-2014 Oro Valley Town Manager Recommended Budget is $ 62.2 million in revenues and $60.7 million in spending, a surplus of $1.5 million.  This surplus will bring total unspent Oro Valley "contingency reserves" to $33.9 million at the end of 2014.  Thats a nice cushion!

You think that its time to rescind the 2% increased in the utility tax? You think?  You think that Oro Valley needs any more sources of sustainable revenues (i.e property tax)?  You think?

The general fund is the fund that is used to fund the police and town operations is almost half the total revenue source. The police budget is almost half of that fund.

The major source of revenues to the fund is money that you put into it, either from the sales taxes you pay in Oro Valley or from money "state shared revenues". And where does the state get its money? From sales taxes and from an income tax.   These are taxes that you pay.

If you look at the water utility fund, you find that 95% of the revenues come from water sales.  You also pay for that!  Plus, of course, you pay a utility tax on top of that that goes just to the town.

The bulk of the dollars in the other funds also comes from you. Two are add-ons to the water bill. Another is the self-insurance fund, which was part of the general fund.  A fourth comes from the gasoline tax you pay.

Funding sources other than you are few in number and in dollars.  They include impact fee funds and seizure funds.  We're talking may $2 Million.

So, the next time that a politician says that Oro Valley needs yet another sustainable revenue source, tell them: "Don't look at me."  Oh yes, and do ask for them to rescind the utility tax.
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Is Oro Valley One Of The Safest Communities?

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Is Oro Valley one of the safest communities?  We've been told this is so.  We want to believe it is so.  But, we can't find any published "lists' that say it.

On one list of the top 13 Gilbert is #5. Surpise is #13.  On another list, Scottsdale is #7.   On yet another list, Florence is listed as #17.  Three lists. No Oro Valley.

Of course, in fairness to our community, if you put all of these lists "side by side" you would probably find few towns that appeared on more than one list.  Really, not being on one of these lists doesn't really mean anything.  So much for the published lists.

Still, we wonder, how can we measure Oro Valley's "safeness?"

Perplexed, we emailed Oro Valley Police Department information officer Kara Riley.  Our message to Kara: "We've been told that Oro Valley is one of the safest cities. Do you know if this is so? If so, how do we measure it? Do you have any statistics or info on this that I could review?"  Lieut. Riley's response:

"The Oro Valley Police Department has been reported to be one of the safest communities in the state relating to comparisons of Part 1 crime utilizing the Federal Bureau of Investigation Uniform Crime Reports from time to time. "

So, we tracked down the UCR statistics for Arizona for the latest reporting year, which was 2011.  There we found that Oro Valley experienced the 4th lowest violent crime rate per 1000 residents, at .58; and the 13th lowest property crime rate per 1000 residents at 17.89.  By comparison, during  the same time period, Marana, our next door neighbor, was ranked 16th and 44th in terms of violent crime and property crime.

If you believe these statistics, one would conclude that Oro Valley is a safer town than most in Arizona.  Why might this be the case?

• Is it because of excellent work by our Oro Valley Police?
• Is it because of Oro Valley's land-locked geography, where there is only 1 road that goes north of the Tortolitas and only two that go south to Tucson?
• Is it because there is no "escape" to the east, because there are no routes over the Catalinas?
• Is it because so many residents are older. Older people are less likely than younger people to create mayhem?

Or is it because of all these things?

We don't know; but we have noticed that there are those who always point to Oro Valley's "safeness" as a reason to approve ever increasing Oro Valley police department budgets.  They seem to feel that dollars spent equate one-to-on with safety.   We disagree. "There are many factors that cause the nature and type of crime to vary from place to place." (Source: FBI UCR Website).  We have noted several of these.  

We agree that a strong police presence is required in today's dangerous world.  We don't agree, because it yet to be proven, that ever increasing spending on pubic safety is the only way to achieve that goal.
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Caton Recommends Big Increase In Spending On Police

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Tomorrow evening, Oro Valley Town Council is meeting in a study session to discuss the 2013-2014 town manager recommended budget. We highlighted the budget the other day and are posting entitled "XXX".  Greg Caton, Oro Valley town manager, presented the budget to the town Council last Wednesday. You can view his presentation here.

The total budget is $93.9 million. 

2013-2014: All Funds

This includes nine major funds and some smaller, miscellaneous funds. The fund that is used to fund the operations of the town is the general fund. This fund is the most discretionary all funds. The fund also includes the contingency fund.  The recommended general fund budget totals 28.3 million excluding these contingency reserves of 9.8 million.

The general fund is the fund that pays for the day-to-day operations of the town. So for example it does not include the operations of the water department or the highway department.  It is funding for the police and General Government.

2013-2014 Recommended Operating Fund

In the largest chunk of spending is for the police department.  This year, the recommended budget for the police department is $13.8 million from the general fund and $226,000 special revenue funds. The total is $14.1 million.  Last year the approved budget included $13 million for the police of 12.7 million came from the general fund.  In 2011, police funding was $12.1 million. 

In three years, the plan spending on our police is increased from 46% of the operating fund to 49% of the operating fund.

The budget also includes operating fund spending increases in Oro Valley Development and Infrastructure Department, 3.6%, and Oro Valley Parks and Recreation, 26.2%; plus $634,000 in personnel increases.

We hope that these increases and spending on such items as "studies" get the attention they merit on the part of town council.  Otherwise, we would wonder: Are they doing their job?
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Caton To Unveil $94 million 2013-14 Budget Tonight

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Tonight night, the Oro Valley Town Council will consider a conditional use permit for a 27 large single-family residence subdivision in Rancho Vistoso and hold a public hearing on a ordinance amendment that would allow liquor to be sold at Steam Pump Ranch.

In addition, town manager Greg Caton will present the Town Managers Recommended Budget for  2013-14.   Here are some highlights:

• The recommended budget is $93.9 Million, a decrease of 1.6% from 2012-2013
• "The Town Council has made financial decisions the last three years that have put the Town on a sustainable financial path."
• "The Town has reduced staff considerably over the past five years. In FY 2008/09, the adopted budget included 389 full-time equivalent (FTE) positions. The Recommended FY 2013/14 Budget includes a total of 330 authorized FTE positions"
• "This year we are fulfilling the commitment to step and merit pay increases for employees. The Recommended Budget includes $567,000 to implement these increases for all eligible employees in FY 2013/14."

  

  Page VI of Recommended Budget

• "Since the Town has more to benefit from a culture supportive of health and wellness, we have added funding ($20,000) to the health and wellness program."
• "The Recommended Budget includes $1 million for the pavement preservation program in the Highway Fund, which maintains the current condition of our streets and roads. The amount of maintenance expected to be delivered remains at a level which will not allow our roadway infrastructure to deteriorate."
• "The Recommended Budget includes the replacement of eight (8) police vehicles, one (1) general administration vehicle, one (1) truck for Development and Infrastructure Services (DIS) operations, one (1) utility vehicle for Parks and Recreation, and matching funds for one (1) grant-funded Transit vehicle for a total budgeted cost $483,000. The Water Utility will replace two (2) vehicles per the replacement schedule totaling $44,000. In addition, the Recommended Budget includes $108,000 set aside as a reserve for future replacement of the new vehicles purchased during FY 2012/13."
• For Naranja Park: "First, grants will be pursued for further improvements to the archery range, and the Recommended Budget includes $20,000 to assist with matching funds. Second, $40,000 has been allocated to update the Naranja Park Master Plan. It is anticipated that the update will span two fiscal years, with the total project cost estimated at $80,000."
• "An amount of $350,000 has been allocated in the Recommended Budget to construct" a police evidence storage facility
• The recommended budget includes  about $600,000 in technology investment
• "The Town is considering the development of a business incubator/bioscience accelerator in order to further promote Innovation Park and strengthen the Town’s foothold in the bioscience and high-tech industry. An amount of $30,000 has been budgeted for an Economic Feasibility Study of this concept."
• "To extend the Town’s rebranding effort, $10,000 has been allocated for banners to hang from light poles along the Town’s main corridors."
• "To further promote arts and culture in Oro Valley, the Town will continue its partnership with the Southern Arizona Arts & Cultural Alliance (SAACA) to provide programs such as the concert series and other related events."
• "An amount of $70,000 has been included in the Recommended Budget to build a ramada structure" at Steam Pump Ranch
• "An amount of $30,000 has been included in the Recommended Budget to conduct a formal community survey. The last time the Town conducted a community survey was in 2008. General Plan"As the Town prepares to update its General Plan for approval by voters in 2016, the Recommended Budget includes $206,500 to be allocated primarily for outside consultant assistance and public outreach efforts in this area."

A recommendation to return the utility tax to 2%, which was voted upon by the citizens, from 4% which was voted by the prior council, is not included in the budget.

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Guest View-John Musolf: Where's Do The Savings Go?

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Several months ago, the Town Council approved a $2.1 million expenditure to TEP for three TEP projects to underground power lines.  The funds were "appropriated" from the general fund's contingency reserve.  Generally, the contingency fund grows either from direct appropriation in the budgeting process or as a result of what's not spent at the end of any budget year.

During the FY2012/2013 budget year the Town announced the savings of some recurring expenditures:

• Library About $585,000 savings from the turnover of the Oro Valley Library to PIMA County.
• Coyote Run About $200,000 savings from the RTA funding of Coyote Run Recreation Room
• About $30,000 savings from the cancellation lease of Oro Valley Recreation Room. Tucson
• Regional Economic Opportunity (TREO) About $42,000 savings from the cancellation of the TREO contract. 

What historically has occurred in the budgeting process is the redistribution of those savings like this to other departments to increase their service budgets for new projects or services for the following budget year.

Instead of doing this,  let’s distribute those savings back to the general fund contingency reserve.

These savings of $852,000 would give the Town of Oro Valley a good start towards replenishing the general fund contingency reserve.
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Bits and Pieces

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This week, Oro Valley Police arrested a man for taking videos in one of the ladies changing rooms at Target. The man,Eduardo Dominguez, is charged with two counts of surreptitious videotaping.
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This week, the town issued its monthly "Economic Development Report". The Good Egg Restaurant is listed as a possible tenant at Rooney Ranch-Target Center.  Other possible new tenants in Oro Valley include Cattleman's Cafe (San Jose Plaza on Oracle), Mathnasium (Oracle Road) and a Memory Care Facilty in Innovation Park.  Securaplane's expansion to Innovation Park is also listed. We reported on this a monh or so ago.
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The results are in on this holiday season's "Shop OV" campaign.  The town awarded 40 gift card and free services awards to those who participated in the weekly drawing.  Congratulations to Oro Valley resident Diane Gill, winner of the $500 grand prize. (Oro Valley Press Release)
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Van Flowers will speak at 1PM tomorrow at Oro Valley's Second Saturday at Steam Pump Ranch. Doors open from 11am to 2PM
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Read about exciting discoveries at Oro Valley's BIO5 U of A facility.
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The Town of Oro Valley will host a public forum on the 2013-2014 budget. "The purpose of the forum is to provide information on the Town's 2013-14 budget, educate residents on the budget process and solicit input." (Source: Oro Valley Press Release) ---