Americans with Disabilities Act Notification: In accordance with the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act of 1973 (Section 504), the Town of Cave Creek does not discriminate on the basis of disability in the admission of or access to, or treatment or employment in, its programs, activities, or services. For information regarding rights and provisions of the ADA or Section 504, or to request reasonable accommodations for participation in Town programs, activities, or services contact the Town Clerk, 37622 N. Cave Creek Rd., Cave Creek, AZ 85331; (480) 488- 1400.

NOTICE AND AGENDA REGULAR TOWN COUNCIL MEETING TOWN OF CAVE CREEK, ARIZONA Monday, August 6, 2018

AN EXECUTIVE SESSION WILL BE HELD AT 6:00 P.M. THE PUBLIC SESSION WILL BEGIN AT 7:00 P.M.

PLEASE NOTE: AN AUDIO RECORDING OF THE TOWN COUNCIL MEETING WILL BE AVAILABLE ONLINE WITHIN THREE BUSINESS DAYS OF THE MEETING.

The Town Council may recess the public meeting and convene in Executive Session for the purpose of discussion or consultation for legal advice with the Town Attorney regarding any item listed on this agenda pursuant to A.R.S. § 38-431.03 (A)(3) and (4).

The Chair reserves the right, with the consent of Council, to take items on the agenda out of order.

CALL TO ORDER 6:00 P.M. Ernie Bunch, Mayor, 37622 N. Cave Creek Road, Cave Creek, AZ.

ROLL CALL Mayor Ernie Bunch, Vice-Mayor Ron Sova, Council Members Susan Clancy, Mary Elrod, Thomas McGuire, David Smith and Eileen Wright. (one or more members may attend by technological means)

Page

EXECUTIVE SESSION 1. Discussion, consultation, direction and legal advice with the Town Attorney regarding the issuance and possible amendment to the Use Permit issued to Soberman’s Estates (Case No: SU- 18-01). A.R.S. 38-431.03(A) (3) and (4).

2. Discussion, consultation, direction and legal advice with the Town Attorney regarding contracting for services pertaining to options concerning the study of and possible zoning amendments regarding community residences and recovery communities. A.R.S. 38-431.03(A) (3) and (4).

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3. Discussion, consultation, direction and legal advice with the Town Attorney regarding options concerning the use and ownership of Town assets used in the Desert Hills Service Area. A.R.S. 38-431.03(A) (3) and (4).

Council Action Needed: Motion to convene into Executive Session.

PLEDGE OF ALLEGIANCE

PUBLIC ANNOUNCEMENTS

CALL TO THE PUBLIC

COUNCIL REQUESTS FOR FUTURE AGENDA ITEMS

TOWN MANAGER REPORT

ACTION ITEMS:

A. CONSENT AGENDA 5 - 182 1. Approval of the following Minutes: Approval of the June 4, 2018 Regular Town Council Meeting Minutes. Approval of the June 11, 2018 Special Town Council Work Session Minutes. Approval of the June 18, 2018 Special Town Council Work Session Minutes. Approval of the June 18, 2018 Regular Town Council Meeting Minutes.

Council Action Needed: Motion to approve the Consent Agenda.

B. GENERAL AGENDA ITEMS 1. COUNCIL DISCUSSION AND POSSIBLE DIRECTION TO STAFF REGARDING SOBERMAN'S ESTATES USE PERMIT (CASE NO. SU-18-01).

Placed on the agenda by the Town Attorney.

Public Comment.

Council Action Needed: Motion to give direction to the Town Attorney and/or the Town Manager to follow up on

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the decision of the Council regarding Soberman's Estates use permit (Case No. SU-18-01).

183 - 308 2. COUNCIL DISCUSSION AND APPROVAL OF RESOLUTION R2018-15 FINALLY DETERMINING AND ADOPTING ESTIMATES OF PROPOSED EXPENDITURES BY THE TOWN OF CAVE CREEK FOR THE FISCAL YEAR BEGINNING JULY 1, 2018 AND ENDING JUNE 30, 2019 ESTABLISHING THE ALTERNATIVE EXPENDITURE LIMITATION AMOUNT, AND DECLARING THAT SUCH SHALL CONSTITUTE THE ADOPTED BUDGET OF THE TOWN OF CAVE CREEK FOR SUCH FISCAL YEAR.

Placed on the agenda by the Town Manager and Finance Director, Town of Cave Creek.

Public Hearing

Council Action Needed: Motion to adopt Resolution R2018-15, a Resolution of the Mayor and Council of the Town of Cave Creek finally determining and adopting estimates of proposed expenditures by the Town of Cave Creek for the fiscal year beginning July 1, 2018 and ending June 30, 2019 establishing the alternative expenditure limitation amount, and declaring that such shall constitute the adopted budget of the Town of Cave Creek for such fiscal year.

309 - 320 3. PRESENTATION AND POSSIBLE COUNCIL DISCUSSION OF THE QUARTERLY FINANCIAL REPORT BY THE TOWN FINANCE DIRECTOR.

Placed on the Agenda by the Town Manager.

Public Comment.

Council Action Needed: No action required, presentation only.

321 - 324 4. PRESENTATION TO COUNCIL ON THE RESULTS OF WESTECH EVALUATION OF THE WATER TREATMENT PLANT MIXED MEDIA FILTERS FOLLOWED BY A PROPOSAL AND REQUEST FOR COUNCIL TO APPROVE REPLACEMENT OF THE MEDIA IN THREE FILTERS AND THE ADDITION OF 18" OF ANTHRACITE TO FILTER #4 IN

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ONE PROJECT, IN FY2019, RATHER THAN SPREADING THE PROJECT AND COST OVER TWO YEARS.

Placed on the Agenda by the Town Utility Director.

Public Comment.

Council Action Needed: 1. Motion to approve the purchase of replacement media and Anthracite from WesTech for the Water Treatment Plant Mixed Media Filters for an amount not to exceed $68,133.00 and; 2. Motion to approve Contract to secure a Mobile Trailer Mounted Water Production Unit from WesTech for $146,000 and, 3. Motion to approve Filter Media Replacement by MGC Construction for an amount not to exceed $65,046.41 all pursuant to Town of Cave Creek Town Code § 37.07.

ADJOURNMENT 1. POSTED THIS _____ day of August, 2018 BY:______Jane Fuller, Deputy Town Clerk

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1 MINUTES 2 REGULAR TOWN COUNCIL MEETING 3 TOWN OF CAVE CREEK, ARIZONA 4 MONDAY JUNE 4, 2018 5 6 7 CALL TO ORDER 6:03 P.M. Ernie Bunch, Mayor, 37622 N. Cave Creek Road, Cave Creek, AZ. 8 9 MOTION TO CONVENE INTO EXECUTIVE SESSION AT: 6:03 P.M. 10 ADJOURNED EXECUTIVE SESSION: 7:01PM 11 12 CALL TO ORDER REGULAR SESSION: 7:04 PM 13 14 Mayor Bunch called the meeting to order. 15 16 Roll Call: Assistant Planner Marie Carsia 17 18 Council Present: Mayor Ernie Bunch, Vice-Mayor Ron Sova, Council Members Susan Clancy, 19 Mary Elrod, Thomas McGuire, David Smith and Eileen Wright. 20 21 Council Absent: NONE 22 23 Staff Present: Town Manager Carrie Dyrek 24 Deputy Town Clerk Jane Fuller 25 Town Marshal Adam Stein 26 Town Planner Ian Cordwell 27 Town Attorney Bill Sims (by phone) 28 29 Mr. Bunch: All right, welcome everybody to the Regular Town Council Meeting, Monday, June 4th. 30 Mr. Smith, would you lead us in the pledge of allegiance, please? 31 32 PLEDGE OF ALLEGIANCE 33 Mr. Smith led all those in attendance in the pledge of allegiance. 34 35 Mr. Bunch: Under public announcements, I don't have a lot going on, just realized that yesterday was 36 the tragic anniversary of the day that Billy Joe McAllister jumped off the Tallahatchie Bridge. But, 37 Councilwoman Ms. Elrod, I believe you have got something you would like to share with us. 38 39 PUBLIC ANNOUNCEMENTS 40 Ms. Elrod: Yes. I am going to be having three debates which will be posted in the newspapers. I would 41 like to give a heads up on any questions that you have concerns about, please email them to me at m. 42 [email protected]. 43 44 Mr. Bunch: Anybody else? All right, we are sitting here looking at each other. Call to the public, do we 45 have anything? All right. Council requests for future agenda items? Seeing, hearing none, Town 46 Manager.

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47 CALL TO THE PUBLIC 48 None 49 50 COUNCIL REQUESTS FOR FUTURE AGENDA ITEMS: 51 None 52 53 TOWN MANAGER REPORT 54 Ms. Dyrek: Last weekend, May 30, 2018 at 5:00pm was the deadline for residents to file as a candidate 55 for a Mayor Council seat. We have eleven candidates for the six Council seats and two candidates for 56 Mayor. That election is scheduled for Tuesday, August 28. The general plan question for ratification will 57 also be on that ballot. Next Monday is the special budget work session at 6:00pm here in the council 58 chambers. That is Monday, June 11, 2018. The tentative budget hearing is scheduled for Monday, June 59 8, 2018. That is a regular council meeting at 7:00pm. 60 61 Mayor Bunch: Monday June what? 62 63 Ms. Dyrek: 18th, did I say 8th? I am sorry. 64 65 Mr. Bunch you said the 8th, and I am saying okay we are going to have the workshop and then we are 66 going to have it two days before we are going to look at it. 67 68 Ms. Dyrek: sorry the 18th. 69 70 Mr. Bunch: Can’t get anything by me. Will that be all? Action items, consent agenda. 71 72 ACTION ITEMS: 73 A. CONSENT AGENDA 74 1. Approval of a #6 Bar Liquor License for Prickly Pear Inn as requested by the Agent Paul 75 William Morina. 76 77 Mr. Bunch: Do we have a motion to approve? 78 79 Ms. Clancy: So moved. 80 81 Vice Mayor Sova: Second. 82 83 Mr. Bunch: All those in favor signify by saying aye. 84 85 Mr. Bunch Aye, Mr. Sova Aye, Mr. McGuire Aye, Ms. Wright Aye, Ms. Elrod Aye, Mr. Smith Aye, 86 Ms. Clancy Aye. 87 88 Mr. Bunch: All right, ayes clearly have it. Moving on to agenda item number one. 89 90 B. GENERAL AGENDA ITEMS 91 1. COUNCIL DISCUSSION AND POSSIBLE APPROVAL OF A COMMUNITY GRANT TO 92 THE CAVE CREEK MUSEUM.

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93 Ms. Dyrek: Mayor, Members of Council, you had a presentation from the executive director if the 94 Museum at a previous council meeting. At this time, they are requesting that the funds that were in this 95 year's budget, the $10,000 for the Museum requires Council action in order to provide that donation to 96 them. We have got that on the agenda for your discussion and by action this evening. I believe she is 97 here to answer any questions you may have. 98 99 Mr. Bunch: Do we have questions from the Council? 100 101 Mr. Sova: Mr. Mayor, Madam Manager, how many years have we been, has the Town been contributing 102 grant towards the Museum? 103 104 Ms. Dyrek: Mayor, Vice-Mayor, I have been here 20 years and I believe we have been providing funds 105 nearly all of those 20 years. I don’t know the exact dollar amounts, but Evelyn may know the exact 106 answer, but a very long time. 107 108 Mr. Bunch: It is a shame someone from the Museum doesn’t have that history for us. 109 110 [laughs] 111 112 Ms. Clancy: I would like to make a comment about that. It has, over the years just turned into something 113 in our Town we can be very, very, very proud of. If for those who go, well I've been there once, it is 114 constantly changing. It is constantly different. Both of you, kudos to you for all of the years that you 115 have put in and all the volunteers. I just don’t think anybody realized how many volunteers go up there 116 and work. So, it has been money well spent is what I am getting to. 117 118 Mr. Bunch: Any more questions from Council? All right. Did one of you all want to come up and talk to 119 us at all? You don’t have to, but you are allowed to. 120 121 Ms. Brace: I want to thank Town Council for so supporting the Museum over all of these years. As I 122 have only been in the leadership here less than a year, I know that there is a long history of very strong 123 connection between the Town and the Museum. It is a private, non-profit 501c3, but it is well loved and 124 well supported by this community. I thank you for all the years that you have dedicated funds and 125 support and everything else. Is there any questions any of you have for me? 126 127 Mr. Bunch: Questions from Council? All right, none. It doesn’t look like we've got public comment on 128 this. Do we have any speakers on this one? Nope? Okay, we are back to Council for a motion. 129 130 Mr. McGuire: This is a motion to approve a community grant of $10,000 to the Cave Creek Museum. 131 132 Ms. Clancy: Second. 133 134 Mr. Bunch: All right, Council comments? 135 Mr. McGuire: The Museum has been a great asset to the community. One of the things we have to 136 understand is that in terms of record keeping, the Museum provides a direct service to the Town of Cave 137 Creek. If it were not for the Museum, that function would have to be done by our Town government. 138

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139 Ms. Clancy: This is more of a personal note, but Evelyn probably knows more about when my son had 140 his stroke and he really needed to get his brain going. He worked many summers inventorying 141 everything in the Museum at a computer. He thoroughly benefitted from it. I can't thank you enough for 142 doing that for him. Today, he is doing great. Thank you, it really helped, thank you. 143 144 Mayor Bunch: Councilwoman Elrod do you have comments? 145 Ms. Elrod: I have a question. How many other sponsors do you have? 146 147 Ms. Brace: It is set up in a way that members who buy a membership become sponsors. We are working 148 on a couple of new programs that would enable us to expand current membership. That is going to be 149 coming this fall. It will include an enhanced or a more nuanced graduation of business and executive 150 memberships. So, that is something we are working on. 151 152 Ms. Elrod: So, members are members through a membership, but what I am asking is how many, are 153 you actively searching for other sponsors to help grow the Museum? Or are you just relying on the 154 Town's involvement that way? 155 156 Ms. Brace: No, we are relying entirely on the Town, no. We do our own fundraising and in some of 157 those instances depending on the scope or the size of the fundraiser, we are working on the home tour at 158 this point, which we are seeking major sponsorship for some of the aspects of that program. We are also 159 seeking more outside the box kind of executive memberships and sponsors. So, we are bringing on new 160 personnel that will be dedicated specifically to the development of the Museum. 161 162 Ms. Elrod: I would personally really like to start seeing more of the Museum become more self- 163 sustaining, such as the rodeo has become and the library has become. They are very successful. We have 164 many issues in this Town and many issues that money is very, we need to count every penny. I totally 165 support the Museum. I love our history, especially since our family has been here over 80 years, but I 166 cannot support giving funds unless you are doing more to show that you are actively out there, you 167 know, giving me names of other supporters that you have. 168 169 Ms. Clancy: Quick question, what has the home tour brought in over the years? 170 171 Ms. Brace: It ranges depending on whose homes are on the tour and what kind of feature there are. In 172 the past, it has raised about $20,000. Last year it was about $12,000. We also added a few others, for 173 example the kitchen garden boutique raised a little money beyond the ticket prices. 174 175 Ms. Clancy: I can remember years my husband served on the Board of Directors for 15 years or more 176 and I know that one time we sat around figuring out how can we get, well, grants. We just didn’t seem to 177 qualify. We are such a small little town and so on and so forth. I know that over the years they are 178 always, Evelyn has always pursued ways in which to bring more money in. 179 Ms. Brace: We have a dedicated person at this point whose sole responsibility is pursuing grants. 180 181 Ms. Clancy: Good, so that will help. 182 183 Ms. Brace: We are, like I said, looking beyond what we have in the past for broader support. 184

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185 Mr. Sova: Question. It sounds like the Museum does not have any corporate sponsors at this time, 186 correct? 187 Ms. Brace: We have business members. 188 189 Mr. Sova: Not members, corporate sponsors, such as an example, Sanderson Ford has in the Town of 190 Carefree. If not, is your goal to go after some? 191 192 Ms. Brace: Absolutely, absolutely. We do receive grants from companies like APS and we are 193 broadening our scope of what we are reaching for. So, the dedicated position that came on June 1, 2018, 194 that person is our development director and she will be applying and pursuing those kinds of things. One 195 of the things that I have done recently is to reach out to the Arizona Community Foundation and we are 196 in talks with them to start working on things like endowment and board development. 197 198 Ms. Elrod: So, you are pursuing corporations, thank you, Vice-Mayor, such as APS. 199 200 Ms. Brace: APS is one of our grantors, so the idea is to go beyond what we have typically done. That is 201 to pursue larger companies in the valley. 202 203 Ms. Elrod: My main concern was I just didn’t want to see you relying solely on the $10,000 that the 204 Town gives. 205 206 Ms. Brace: Oh, no. We have a lot more funding sources than the $10,000 that the Town provides. 207 208 Ms. Elrod: So, how does the $10,000 help? 209 210 Ms. Brace: We use that in our advertising and some of the specific programs that are tied in with 211 community events. For example, we help with the parade and the programming at Wild West Days and 212 for the rodeo. So, we are probably going to look a little beyond the two events during our program year 213 and expand what kind of services the Museum in turn provides the Town and the community. 214 215 Mr. Bunch: We actually have a motion from the table. We are actually supposed to be commenting and 216 we are out of questions. So, any comments? 217 218 Mr. McGuire: I have done some occasional volunteering at the Museum and I noticed that a large 219 number of the people who are coming to the Museum are not people who live in Cave Creek. Those are 220 people who are attracted here specifically by our Museum. 221 222 Mr. Bunch: Councilwoman Ms. Wright, any comments? 223 224 Ms. Wright: No, just thank you. 225 226 Mr. Bunch: Councilman Mr. Smith? 227 Mr. Smith: Nope. 228 229 Mr. Bunch: I love the Museum, it is a, 230

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231 Mr. Sova: What about me? 232 Mr. Bunch: Oh, I'm sorry, Vice-Mayor Mr. Sova? [laughs] Comment? If you say no, I am going to blank 233 you! 234 235 [laughs] 236 237 Mr. Sova: No, just a follow-up. 238 239 Ms. Brace: I was going to tell Mary that the $10,000 that the Town provides is about 10% of our total 240 income annually. We are going to be pursuing closer to $200,000 in support in the next year. 241 242 Ms. Elrod: That is what I want to hear. 243 244 Mr. Sova: My comment/question is I assume when you and your group are going out looking for 245 corporate sponsors, you would look for it to be on a perennial basis and not just an annual basis? So, it 246 would constantly be there for a very, very long time. 247 248 Ms. Brace: That is the goal. 249 250 Mr. Sova: Thank you. 251 252 Mr. Bunch: Jane, the roll please? 253 254 Mr. McGuire: Yes, Ms. Wright: Yes, Ms. Elrod: Yes, Mr. Sova: Yes, Mr. Smith: Yes, Ms. Clancy: 255 Absolutely. 256 257 Mayor Bunch: Yes. All right, by 7-0, you guys get your check now. Moving on to agenda item number 258 two. 259 2.260 2. THE PLANNING COMMISSION HAS CONTINUED THE FOLLOWING CASE TO A 261 DATE CERTAIN JUNE 7, 2018. 262 263 Case No. SUP-18-01 264 Applicant: Mitchell T. Prager 265 Location: 3010 E. Cloud Road 266 Maricopa Parcel No.: 211-67-073 267 Zoning: Desert Rural Residential DR-190 268 269 Mr. Bunch: I am assuming that Mr. Mr. Cordwell is going to talk to us about this. This is the SUP-18- 270 01, the Mitchell Prager, Cloud Road thing. So, go ahead Mr. Mr. Cordwell. 271 272 Mr. Cordwell: Yes. Mayor, members of the Council, very briefly, you don’t need to take any action or 273 discussion tonight. The case was continued to the planning commission date, this coming Thursday. The 274 attorney is going to have an executive session with the planning commission before that meeting. I 275 believe, with the Council before that. If the planning commission makes a recommendation on that date, 276 we will re-advertise for the Council at some future date.

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277 Mr. Bunch: Okay, and the reason that we had this on our agenda tonight and we are not talking about is 278 because it was previously advertised for this date, if I understand. 279 280 Mr. Cordwell: Correct. Just trying to keep the agenda in the future clear for the budget, so now we will 281 completely skip the budget. 282 Mr. Bunch: So, now this is just to keep us out of trouble. 283 284 Mr. Cordwell: Right. 285 286 Mr. Bunch: All right, do we even need to do anything? Or are we done? 287 288 Mr. Cordwell: I don’t believe you do. 289 290 Mr. Bunch: All right, so we are moving on to agenda item number three. [laughs] Do I even need to read 291 this one, Town Manager? 292 293 Ms. Dyrek: Yes, please. 294 2953. 3. COUNCIL DISCUSSION AND POSSIBLE APPROVAL OF THE PURCHASE OF A 2018 296 INTERNATIONAL WATER TRUCK UNDER STATE CONTRACT NO. ADSPO14-063235 297 FOR THE AMOUNT OF $138,309.90. 298 299 Ms. Dyrek: Mayor and members of Council, staff had a quote from the state contract from this company 300 for the water truck. Today, they were informed that the water truck was sold to another entity and they 301 have another truck on the assembly being built; however, it would not, it was the same price, arrive by 302 June 30. The procurement regulations require that any work being contracted for is complete, or we take 303 delivery of a purchase by the last day of the fiscal year in order to fund this in this fiscal year. They 304 cannot commit to a June 30 deadline; therefore, there is no reason for Council to take any action because 305 it would not meet the procurement regulations. 306 307 Mr. Bunch: Isn't that special. 308 309 Ms. Dyrek: Now, if I could just add though, then this would have to come out of next year's budget, 310 which at this point it is not in next year's budget. They have different things. So, it will be up to the staff 311 to decide if this is a priority for next year and they will have to push back the items that are budgeted for 312 next fiscal year's budget. 313 314 Mr. Bunch: Now, understanding that the truck that we are currently using is 18 years old and as I recall 315 the last time this came to Council, I jumped up and down and made them by a new tank instead of a new 316 truck. Because it was a whole lot cheaper to put a new tank on that thing since it still ran. So, if you 317 guys, in your budget decide what you want to do, we will just see what happens when it comes back. 318 Moving right along. Agenda item number four. 319 320 4. COUNCIL DISCUSSION AND POSSIBLE APPROVAL OF RESOLUTION R2018-13, A 321 RESOLUTION DECLARING AS A PUBLIC RECORD SECTION 52.404 ACTIVATION OF

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322 WATER SERVICE AND SECTION 52.405 REACTIVATION OR TRANSFER OF WATER 323 SERVICE. 324 325 Mr. Bunch: This was placed on the agenda by the Town Attorney, which I see his vacant chair, but I am 326 sure Mr. Sims is still sitting there. 327 328 Mr. Sims introduced (by phone). 329 Mr. Sims: Yes, sir. This implements, and I admit it has taken some time. This implements by Ordinance 330 the elements of the Water Policy that you approved last December. This changes your Town Code. This 331 changed the Subdivision Code and the Zoning Code. This accomplishes the guts of the Water Policy that 332 you approved in December. The follow-ons will be provisions for the Subdivision Code and the Zoning 333 Code. 334 335 Ms. Dyrek: Which are required to go before the planning commission prior to coming to Council. 336 337 Mr. Sims: Yes, yes. 338 339 Mr. Sims: That is why we've done it. I apologize Carrie, thank you for jumping in. This does not change, 340 it is exactly what you approved last December. We recommend approval. 341 342 Mr. Bunch: Right, okay. Questions from Council? Doesn’t look anybody has got any questions. There is 343 public comment on this. Do we have any slips on this one? 344 345 Public Comment 346 No public comment. 347 348 Mr. Bunch: Well, goodness gracious, I guess we are back to Council for a motion. Do we have a 349 motion? 350 351 Mr. Sova: I will make a motion to approve Resolution R2018-13, a Resolution of the Mayor and Town 352 Council of the Town of Cave Creek, Maricopa County, Arizona, declaring as a public record certain 353 documents filed with the Town Clerk and entitled: "Section 52.404 Activation of Water Service" and 354 "Section 52.405 Reactivation or Transfer of Water Service." 355 356 Mr. McGuire: Second. 357 Mr. Bunch: Vice-Mayor, comments? 358 359 Mr. Sova: No. 360 Mr. Bunch: Councilman Mr. McGuire? 361 362 Mr. McGuire: The Council established a water policy and something that was long overdue and 363 implementing that policy will be an important part of that process. 364 365 Mr. Bunch: Councilwoman Ms. Wright? 366 367 Ms. Wright: No, I'm great.

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368 Mr. Bunch: Ms. Elrod? All right. Yeah, this is just following on with what we have already done to get it 369 done right. All those in favor of the motion, signify by saying aye. 370 371 Mr. Bunch Aye, Mr. Sova Aye, Mr. McGuire Aye, Ms. Wright Aye, Ms. Elrod Aye, Mr. Smith Aye, 372 Ms. Clancy Aye. 373 374 Mr. Bunch: Any opposed? Ayes clearly have it, 7-0. Moving right along to agenda item number five. 375 376 5. COUNCIL DISCUSSION AND APPROVAL OF FIRST READING OF ORDINANCE NO. 377 O2018-01 AMENDING THE TOWN OF CAVE CREEK CODE SECTION 52.404 ENTITLED 378 ACTIVATION OF WATER SERVICE AND SECTION 52-405 ENTITLED REACTIVATION 379 OR TRANSFER OF WATER SERVICE. 380 381 Mr. Bunch: Reads kind of like that other one. Do you want to explain this to us, Mr. Sims? 382 383 Mr. Sims: I am confused. I didn't realize we had it on twice, let me look. 384 385 Ms. Dyrek: Mayor, Members of Council, the first item was a resolution that declared the text a public 386 record and that allows us, when you adopt the ordinance, you are adopting it by reference and we are 387 publishing just the ordinance. It is a process set up in state statute. 388 389 Mr. Sims: Thank you Carrie, you are right. 390 391 Ms. Dyrek: This is the actual ordinance itself. So, we are first reading, you won't see the resolution 392 again, it declares it a public record, first reading. Then the next Council meeting will have second 393 reading and then a 30 day wait until it takes effect. 394 395 Mr. Bunch: Any questions? 396 397 Mr. Sims: Thank you, Carrie. Carrie is right. 398 399 Mr. Bunch: All right, looks like Councilwoman Ms. Wright has got a question. 400 401 Ms. Wright: Question please, yes. For Carrie, or for somebody. So, where is the amended version, I 402 guess? It says this has been amended but there is not documents that has been red-lined that shows a 403 number five, the amended the Town of Cave Creek code section, blah, blah. Am I looking right at it 404 someplace? 405 406 Mr. Sims: All we are doing is, there shouldn’t be, we are just attaching everything you approve as an 407 exhibit in the resolution and then the ordinance then adopts the resolution. I don’t think there needs to 408 be, there shouldn't be a red line. 409 410 Ms. Wright: So, something has been amended. What has been amended? Because if something is 411 amended, you have to have a red lined copy of something to see what was amended? 412

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413 Mr. Sims: No you don’t. No you don’t. If you read it, what we have done is we have added a new 414 section is all. That's all. What we have said is, what we have adopted was is in the Resolution and then 415 when you look at the Ordinance, you are right, we do have to change some numbers, sections 405-410, 416 renumbered 406-411. 417 418 Ms. Wright: So, that is it? The numbers? 419 420 Mr. Sims: Yeah. 421 422 Ms. Wright: So, but it doesn’t indicate that any place, I guess is my issue. So, it doesn’t show what is 423 amended. There is… 424 425 Mr. Sims: Well, read it. Read section two. It says we are adopting a new section 404 and 405 and then 426 we are changing all the numbers. 427 428 Ms. Clancy: renumber 52-406 to 52-411. 429 430 Ms. Wright: Okay, thank you. 431 432 Mr. Bunch: Any other questions from Council? All right, doesn't look like we've got any public 433 comment on this one, but I don’t suppose you have got any? All right, we are back to Council for a 434 motion. 435 436 Mr. Sova: I'll make a motion. 437 438 Ms. Clancy: Yea, Council discussion and approval of first reading of Ordinance. 439 440 Mr. Sova: Council action to give first reading to Ordinance No. O2018-01 An Ordinance of the Mayor 441 and Council of the Town of Cave Creek, Arizona, adopting and making a part of the Town Code that 442 certain document entitled Section 52-404 Activation of Water Service and Section 52-405 Reactivation 443 or Transfer of Water Service and declared to be a public record by Resolution No. R2018-13. 444 445 Mr. McGuire: Second. 446 447 Mr. Bunch: Vice-Mayor? 448 Mr. Sova: No comments. 449 450 Mr. Bunch: Council Mr. McGuire? Comments, anyone? All right, all those in favor, signify by saying 451 aye. 452 Mr. Bunch Aye, Mr. Sova Aye, Mr. McGuire Aye, Ms. Wright Aye, Ms. Elrod Aye, Mr. Smith Aye, 453 Ms. Clancy Aye. 454 455 Mr. Bunch: Opposed? 7-0, motion carries. Again, to item number six. 456 457 6. COUNCIL DISCUSSION AND APPROVAL OF RESOLUTION R2018-09 AUTHORIZING 458 THE MAYOR TO EXECUTE ON BEHALF OF THE TOWN AN INTERGOVERNMENTAL

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459 AGREEMENT BETWEEN THE TOWN OF CAVE CREEK AND MARICOPA COUNTY, 460 REGARDING REGIONAL EMERGENCY OPERATIONS MANAGEMENT AND DISASTER 461 SERVICES. 462 463 Mr. Bunch: Placed on the agenda by the Town Marshal. I see him coming over here with his book to 464 talk to us. 465 466 Marshal Stein: Good evening Mr. Mayor, Members of Council. What we have before you tonight is the 467 IGA between the Town of Cave Creek and Maricopa County, regarding emergency management. The 468 IGA is renewed every five years and provides for emergency operations. It is a five year plan IGA and is 469 renewed every five years. I would be happy to answer any questions. 470 471 Ms. Wright: Is this legally required? 472 473 Marshal Stein: Yes, Councilwoman Wright. 474 475 Ms. Wright: Thank you. 476 477 Mr. Bunch: Moving right along. Further questions from Council? Wow. Vice-Mayor Sova. 478 479 Mr. Sova: Marshal, are there any costs, fees or charges that the Town incurs as a resulting of this IGA 480 and if so, what are they? 481 482 Marshal Stein: As it spells out in the IGA, Vice-Mayor Mr. Sova, in the event of a catastrophic incident, 483 there are fees involved. But, by having the IGA, they help us recover those fees as well. That is part of 484 the agreement with them that is the event of a catastrophic emergency, state and federal aid are 485 available. We do have to obviously, pay them back for their services as well. 486 487 Mr. Sova: Yeah, that is what I read, but there is no specific dollar amount attributable to it at this point? 488 Marshal Stein: If there are, no catastrophic occurrences. There is a, Town Manager, isn't there a…? 489 490 Ms. Dyrek: Mayor, Members of Council, there is like an administrative fee for the cost of this. It runs 491 like $400 or something and it is in the administration budget. I don’t have the exact number, but it is like 492 $500. 493 494 Marshal Stein: Every municipality in the Maricopa County agrees to it. 495 496 Mr. Sova: So, it is a pretty insignificant fee relative to the services you could get as a result. 497 498 Marshal Stein: It's like a spare tire, you want to know it is there and you pray you will never have to use 499 it. 500 501 Mr. Sova: Got it, thank you. 502 Mr. Bunch: This doesn’t count for things like the night we had the helicopter pick the idiot off of his 503 truck in the wash. 504 [laughs]

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505 Marshal Stein: No, this is bigger and better than that. 506 [laughs] 507 508 Mr. Bunch: This is for real catastrophes, not for stupidity. Very good. 509 510 Marshal Stein: No comment. 511 [laughs] 512 513 Mr. Bunch: All right. Well, I guess there is public comment on this one. Do we have any slips on this 514 one? 515 516 Public Comment 517 No public comment. 518 519 Mr. Bunch: All right, we are back to Council for a motion. 520 Ms. Clancy: Okay a motion to Approve Resolution No. R2018-09 a Resolution of the Mayor and Town 521 Council of the Town of Cave Creek, Maricopa County, Arizona, Authorizing the Mayor to execute on 522 behalf of the Town that certain intergovernmental agreement between the Town of Cave Creek and 523 Maricopa County, regarding regional emergency operations management and disaster services. 524 525 Ms. Wright: Second. 526 527 Mr. Bunch: All right, Councilwoman Ms. Clancy, comments? 528 529 Ms. Clancy: Yeah, it sounds like a nice insurance plan and I hope we never see it and never use it. Mr. 530 Bunch: No kidding. 531 532 Ms. Wright: That was very clear, thank you. 533 534 Mr. Bunch: Anything else? Council? All those in favor signify by saying aye. 535 536 Mr. Bunch Aye, Mr. Sova Aye, Mr. McGuire Aye, Ms. Wright Aye, Ms. Elrod Aye, Mr. Smith Aye, 537 Ms. Clancy Aye. 538 539 Mr. Bunch: Opposed? Ayes clearly have it, 7-0. On to the, wow, the very last item on our agenda. 540 541 7. COUNCIL DISCUSSION AND POSSIBLE APPROVAL OF RESOLUTION NO. R2018-14 542 SETTING THE SPEED LIMIT FOR CAVE CREEK ROAD. 543 544 Ms. Dyrek: Mayor, Members of Council, based on the recent presentation and recommendation by the 545 traffic engineer, the north and south bound North Cave Creek Road speed limit is 45 in one particular 546 area north of Carefree. Carefree recently changed their speed limit to 40 miles an hour and there is a 547 section that goes up to 45 and then back down to 40 within the Town of Cave Creek boundaries. The 548 recommendation was to lower that speed limit from 45 to 40 in that section. This resolution is before 549 you this evening. 550

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551 Mr. Bunch: Questions from Council? 552 553 Ms. Clancy: Yeah, and who recommended that we do this? 554 555 Ms. Dyrek: It was part of the traffic engineering presentation at the last Council meeting. 556 557 Ms. Clancy: That we saw here? 558 559 Ms. Dyrek: Yes, Y2K. Yes. 560 561 Ms. Clancy: And that was because Carefree lowered theirs to 40? 562 563 Ms. Dyrek: Carefree lowered their speed limit from the north side of Carefree highway all the way up to 564 the Cave Creek boundary to 40. There is about a half a mile in Cave Creek that goes 45 miles an hour 565 and then goes down as you come over the hill to 40. 566 567 Ms. Clancy: Yeah, I use it all the time. 568 569 Ms. Dyrek: So, they were recommending, for consistency, that you are not going 40, up to 45, then right 570 back down to 40 within a half mile. 571 572 Ms. Clancy: I can see that going north, but I don’t see why we have to lower it going south. I mean, I 573 kind of like doing the 45 and getting down the hill and then seeing the 40 and then lowering it. I feel as 574 though we are being sucked in on that end of it by Carefree. That is setting up a speed trap. So, what is 575 going to end up happening is for everybody who has lived here as long as we have all of the sudden, 576 they are not going, to some degree they are not going to notice it and they are parked out there, the 577 Sheriff's Department, representing, obviously, Carefree. I am seeing people being pulled over. I 578 understand, maybe, them coming up with that, but I feel like we are being forced in to become part of 579 their speed trap. Maybe, I am wrong, but. 580 581 Ms. Elrod: I do agree with you, but I think lowering the speed limit is taking their cookie away from 582 them. 583 [laughs] 584 585 Ms. Clancy: That is possibility, I might concur with that. No, I just think it is pretty sad that they are 586 doing this. 587 588 Mr. Bunch: Do we have questions from the Council? 589 590 Mr. Sova: Madam Manager, when, should we take positive action on this and do it, do we have a 591 provision whereby some sort of warning up saying speed limit is changing or has changed? And we post 592 it for a certain number of days or weeks? When traffic signal goes in, that is practice, but I don’t know 593 whether that is the practice in our town or Carefree, if it is just a change in speed limit? 594

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595 Ms. Dyrek: Mayor, Vice-Mayor, we do have the signs that we could deploy with a message to the 596 residents at that point. Do it for a period of time, maybe a week or whatever you feel is sufficient. We 597 are not required to do that, but as a courtesy to residents, we could do that. 598 599 Mr. Sova: Okay, thank you. 600 601 Ms. Elrod: Councilman Mr. Sova, I have seen signs saying, "reduced speed ahead." I have never seen 602 any saying "increased speed ahead." 603 [laughs] 604 605 Mr. Bunch: Anything else from Council? We have public comment on this one as well. Do we have any 606 sheets on this one? 607 608 Public Comment 609 No public comment. 610 611 Mr. Bunch: We are back to Council for a motion. 612 613 Mr. Smith: I will do the motion. 614 615 Mr. Bunch: All right, Councilman Smith. 616 617 Mr. Smith: Okay. Motion to approve Resolution No. R2018-14, A Resolution of the Mayor and Town 618 Council of the Town of Cave Creek, Maricopa County, Arizona, setting speed limits for certain streets 619 in the Town. 620 621 Mr. Bunch: Second. 622 623 Mr. Smith: Well, I have been testing this all this week and going 40 miles an hour all the way up to the 624 30 mile an hour place and it actually works. If I had the desire to go 45 miles an hour on a residential 625 road, I will go down into Phoenix and do that because there are plenty of them down there that do that. I 626 just think that well Carefree has most of the road down to Stagecoach Pass and there is only a very short 627 piece, .6 of a mile or something like that where you step on the gas and go up and then immediately 628 have to come back down to 40 miles an hour. It just seems like a realistic thing to do. 629 630 Ms. Clancy: Going north, but how about going south. 631 [laughs] 632 633 Ms. Clancy: Come on, think about it, 45, 45 and then, bam, halfway down it is 40. People are still doing 634 45, 48. 635 636 Ms. Elrod: Honestly, I do about 60 at times. 637 [laughs] 638 639 Ms. Elrod: I have a heavy foot. 640 [laughs]

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641 Mr. Bunch: Okay, I had the second on this and I just, there are some things I want to say here. I want to 642 say Stagecoach Pass. I want to say Long rifle. I want to say Surry. I want to say Blueridge. I happen to 643 live off of New River Road, which is in the Carefree section and I have got to tell you, whenever you are 644 trying to get out onto Cave Creek Road and, for me, it is moving to the east and I want to come to Town 645 Hall, I am taking my life in my own hands in that section of road down there. I think it is going to make 646 it a whole lot easier on all the folks along Cave Creek Road to get in and out of their neighborhoods. 647 Those of us who aren't privileged enough to live up on the north end, north of the washes, where we 648 don’t have to always go to work, it is a benefit. I don’t like the way it came about that we are having to 649 do it, but that somebody else changed it first and I would suggest at some point we actually put a leaving 650 Cave Creek sign going southbound and entering Cave Creek going northbound and then now entering 651 Cave Creek so people know where they are at when they get those tickets. All those in favor of the 652 motion, signify by saying aye. 653 654 Mr. Bunch Aye, Mr. Sova Aye, Mr. McGuire Aye, Ms. Wright Aye, Ms. Elrod Aye, Mr. Smith Aye, 655 Ms. Clancy Aye, Reluctantly. 656 657 Mr. Bunch: Opposed? Ayes clearly have it, 7-0. Folks, that concludes our meeting for this evening. 658 Motion to adjourn? 659 660 Ms. Clancy: So moved. 661 662 Meeting adjourned at 7:42PM. 663 664 SUBMITTED BY: APPROVED BY: 665 666 ______667 Jane Fuller Ernie Bunch 668 Deputy Town Clerk Mayor 669 670 CERTIFICATION 671 I hereby certify that the foregoing minutes are a true and correct copy of the Minutes of the Special 672 Work Session of the Town Council of Cave Creek held on the 16nd day of January, 2018. I further 673 certify that the meeting was duly called and held and that a quorum was present. 674 675 Dated this ______day of ______2018. 676 677 ______678 Jane Fuller, Deputy Town Clerk 679

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1 MINUTES 2 SPECIAL TOWN COUNCIL WORK SESSION 3 TOWN OF CAVE CREEK, ARIZONA 4 MONDAY JUNE 18, 2018 5 6 Mayor Bunch: Welcome to the Special Town Council Work Session, Town of Cave Creek, Arizona, 7 Monday, June 18, 2018. 8 9 CALL TO ORDER 5:31 P.M. Ernie Bunch, Mayor, 37622 N. Cave Creek Road, Cave Creek, AZ. 10 11 Mayor Bunch: Silent roll call, 12 13 Silent Roll Call: 14 15 Council Present: Mayor Ernie Bunch, Vice-Mayor Ron Sova, Council Members Susan Clancy, 16 Mary Elrod, David Smith and Eileen Wright, Thomas McGuire. 17 18 Council Absent: None 19 20 Staff Present: Town Manager Carrie Dyrek 21 Deputy Town Clerk Jane Fuller 22 Town Planner Ian Cordwell 23 Town Marshal Adam Stein 24 Town Attorney Jeff Murray 25 26 Mayor Bunch: Alright, Council discussion regarding amendments to Town Code 130.07 Noise. 27 28 Ms. Dyrek: A Pledge of Allegiance, Mayor. 29 30 Mayor Bunch: Oh, oh gosh.. 31 32 Ms. Dyrek: Please. 33 34 35 PLEDGE OF ALLEGIANCE 36 Mayor Bunch asked Bob Moore to lead the Pledge of Allegiance. All those in attendance then recited 37 the Pledge of Allegiance. 38 39 Mayor Bunch: You want me to read that again? 40 41 [inaudible background discussion] 42 1. COUNCIL DISCUSSION REGARDING AMENDMENTS TO TOWN CODE 130.07 43 NOISE. 44 45 Ms. Dyrek: Mayor, Members of Council, I thought, um, this would be a opportunity to have Jeff come 46 in at this point and, uh, he's been working with Staff and Councilwoman Clancy and Wright have been,

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47 uh, in some of the meetings regarding update to the noise ordinance and, uh, there are, I think if he gives 48 you an overview of how we got to where we are now and some of the issues and suggestions so that 49 there's discussion with Council on how to move forward, that would be helpful. Um, but, I wanted to do 50 this before June 30, while Jeff is still, uh, with Sims, Murray. He will no longer be with the firm after 51 June 30 and so, I wanted to kinda wrap up what he has worked on this ordinance before he's gone. 52 53 Mr. Murray: Mayor, Members of Council, let me address Carrie's last point, uh, I understand that you 54 guys, oh, you want me to, thank you. Uh, alright, fair enough. Um, I've recently decided to, to take 55 another position, so, just to give you guys a little heads up, I've, I've been coming out here for the better 56 part of 12 years and obviously I have enjoyed my time immensely, um, but I've gotten an opportunity to 57 go in-house with a city that's much closer to my house. [laughs] Literally, my house. About five minutes 58 away. Um, so, rather than make the trek downtown regularly, or drive all around the state representing 59 members of the insurance pool, I'm gonna be at one, central location, so, um, after about 20 years of 60 litigating cases and about the last 12 years litigating for the pool, I've decided to, uh, uh, scale back a 61 little bit and go, go in-house and give some advice rather than just do solely litigation. So, hopefully 62 that’s the right decision, but having had my own business with, with your attorney, Bill Sims, for the last 63 six plus years, you never know. So, it’s a little nerve wracking, but it’s a decision, so, we're going 64 forward, so. That, that, uh, is a little bit of the urgency. Now, I will tell you, uh, um, as, as we get into 65 the noise ordinance a little bit, I am looking for direction from you all to kinda see what, what it is that’s 66 really, kind of, troubling, or what issues are, kind of, raising this for the Council and hopefully we can 67 more narrowly define or, or craft amendments to your current, current noise ordinance. Um, I've got 68 some idea, as Carrie mentioned, from, from talking to the Marshal, and from talking to Staff and from 69 meeting with a local, uh, sound expert, from meeting with Councilwoman Wright, Councilwoman 70 Clancy, uh, some idea of what's going on, um. However, as you all know, a one size fits all solution is 71 very, very difficult to achieve and you guys are a very unique community, I don’t have to tell you that, 72 but you are a very unique community, especially with your commercial corridor, which is, kind of the 73 bread and butter and the heartbeat of the Town and certainly the Town commercial corridor, but then 74 also with your, what is it, R85, or whatever the zoning is with your large lots and your, uh, your, your 75 homes that are very near the commercial corridor. So, when it comes to a noise ordinance, that is a 76 particularly tricky situation, trying to address. How do we address the businesses that are kind of the 77 lifeblood but also the citizens who move out here for the peace and tranquility and large lots and, and 78 it's really, it's, it's tough to kind of draft that, um. Your current noise ordinance that's on the books now, I 79 think, if I recall correctly, I think that was drafted and, and brought on by Gary Birnbaum and his crew 80 and it's a very objective noise ordinance. There's a lot of, of very objective criteria. It requires a, a type 81 two sound meter and it requires measuring, um, sound from the source, but one of the things that that 82 poses some real trouble, I'm glad the Marshal is here, for him to weight in if we need to, is, what 83 happens when we're trying to measure that noise with the, kind of, the natural ambient, uh, sound level 84 that, that Cave Creek road naturally produces. It's very, very hard to get a distinct measurement, to know 85 are they emitting or transmitting excessive levels of noice and how do we really measure that in light of 86 the heavy traffic. And that’s just one example. So, in a nutshell what we’ve tried to do is we’ve tried to 87 amend your current ordinance and as we get into this we can discuss it a little bit further. Well one of the 88 ideas that was initially floated was just to adopt the county ordinance and that’s part of your packet 89 tonight. And the county ordinance is a lot more subjective and that is enforced by the sheriff’s 90 department which I think probably to a person, were all okay with. The problem is, if we just straight 91 adopt that ordinance, it really takes away a lot of the objective factors. And so we really need to kind of 92 consider what is the purpose of the ordinance? What do we want it to do? And how do we want it to

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93 affect and apply to everybody? Are we really just kind of trying to quiet down the noise, if you will, in 94 the commercial corridor? Or are we trying to come up with a noise that really applies from boundary to 95 boundary, line to line and really address everything and everybody. And that’s the tricky thing. So, I 96 don't know, Carrie, the, the best way to start. I think what I saw attached to the agenda is kind of a, a 97 clean copy of the red line, assuming, or I guess it came up on blue lines on my copy, um, the changes we 98 kind of threw out there to address your current noise ordinance and then I think the third attachment is 99 the P23 Maricopa County ordinance. Um, and so, if, if it's okay with you all, rather than going line by 100 line and point by point, uh, through what I've done, maybe I can just get a better sense of what you all 101 feel needs to be done and then we can kind of address and, and figure out whether the changes that 102 we've made already, we'll take that into account, or whether further revisions and drafting are necessary. 103 And, I got a little bit ahead of myself. So, let's, let's leave that there. Now, this is probably not gonna get 104 done tonight. [laughs] So, make, make no mistake, um, but, but, as, as most of you know or as some of 105 you may know, uh, we have another partner office, Kristin Mack and Kristin has already done a revision 106 of your sign ordinance to comply with Reed v. Town of Gilbert, the United States Supreme Court 107 Opinion that came out about a year and a half, two years ago. So, Kristin is, is, is very good. She's up to 108 speed, or she will be up to speed. So, should we need to draft beyond June 30, um, either I can, I can 109 continue to help out, or Kristin will jump in. So, that’s a little bit of an aside. So, so, don’t, don’t think 110 that this is, is a, a, not a continuing process. But, I would like to get a better sense, as Carrie mentioned, 111 so I can get this as close to the finish line as possible for you all, um, before I leave. And so what you 112 have before is some of the red lines that I've suggested. It's based on comments from the two 113 Councilwomen, as well as Marshal Stein, in an effort to kind of help you guys, if you will, if, if you 114 need help and kind of, uh, tailoring, uh, a better noise ordinance that, that's more enforceable and fits 115 kind of the needs of the community, rather than just a straight objective noise ordinance that looked like 116 it was probably picked up from a, a form and, and dropped in and, and you know, things change, things 117 change over the years and I think your community has changed and maybe that's why this doesn’t quite 118 fit the one size fits all anymore. So, Carrie, I don't know if that’s an okay way to proceed, with you, but, 119 if I could get some feedback. 120 121 Ms. Clancy: I, I have a comment to make. Um, I also want to say that Toby Payne was part of that and 122 Toby had told us about the one up in, Boulder? 123 124 Mr. Murray: I think it was Boulder, yes. 125 126 Ms. Clancy: It was Boulder. 127 128 Mr. Murray: Correct. 129 130 Ms. Clancy: And how strict that is for a college town. So, I think we had a very good discussion and 131 people who fully understood, um, noise and what can, to one extreme, be done. Uh, the other one is, is, 132 um, we did have a meeting with our folks in the core to talk about giving them the opportunity to 133 actually use, uh, an expert in that area, uh, very simple things, trying to work it out that way and that 134 went [snap sound] just like that, went away. So, we're beginning to find out it's gonna take, obviously, a 135 lot more, but even then, you're right, having it, um, implemented and stay on top of, because noise, to 136 one person is music to the ears of others, even if it's from across the street, so. 137

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138 Mr. Murray: And, and that's a, that's a great point, and, and I will tell you that, in terms of enforcement, I 139 think that's one of the things that, and I don’t want to speak for Marshal Stein, but I think that's one of 140 the things that, that, that concerned Adam, is, is, uh, and, and you'll see in your current noise ordinance, 141 I think the first, the first provision of your current noise ordinance st-, starts in as nuisance and it tries to 142 define nuisance and your current noise ordinance includes, you know, smoke and odor and stuff, which 143 is really strange to find that in the noise category, but, but nevertheless, you understand, um, a nuisance 144 is a very factually intense analysis. And it's very difficult because as, as you said, Councilwoman 145 Clancy, you know, noise, noise to one person is music to another. 146 147 Ms. Clancy: Right. 148 149 Mr. Murray: And that, that's really how nuisance is. Uh, I'd, I'd handled a nuisance case for Camp Verde 150 years and years and years ago, and it was, it was swine. And, uh, you know, it was a pig farm and all the 151 folks that, literally all the folks that lived in the area had no problem with it, but when the odor starting 152 wafting beyond the half mile or whatever the, suddenly it became a nuisance. And, and so, noise is 153 really no different and, and so, it, it's tough to, to draft and craft a one size fits all ordinance. And so, I 154 really do need a little bit of feedback and, and, and I'm glad you brought up Toby, that was the sound 155 expert that I, I kind of referenced, uh, without saying specifically his name. And that, it's disappointing 156 to hear that, that you didn’t get better feedback and I, I think one of the things that Toby mentioned is, 157 you know, this, this could be as simple as coming up with some criteria in the noise ordinance that, that 158 requires when people install outdoor speakers, how high to install them, or what direction they must be 159 installed. Should they be shielded like lights, so that the noise is kind of captured and pointed down, you 160 know, and not, not allowed to be projected straight out. So, there are a lot of different ways rather than 161 just straight prohibition that these can be addressed. Um, but I, I don’t think, kind of, the install of the 162 speakers and the outdoor and the sound amplification, all the things that are currently causing us some 163 concern, they're not necessarily addressed in your current ordinance, and there probably is a way to 164 tighten that stuff up. Um. 165 166 Vice Mayor Sova: Mr. Mayor, Mr. Murray, uh, do we have any idea what the db level is in other 167 communities that have something in the way of a commercial core that is with outdoor entertainment? 168 169 Mr. Murray: I don’t, I don't know that, that, that we've reached out to say, the Scottsdale's or Tempe's of 170 the world. And, and I think one of the unique things and I'll, I'll defer to, to, to the Marshal if, if he's got 171 any additional information on that. But, but one of the, uh, and I will say this, it's, it's not exclusive to 172 Cave Creek, but it really is pretty rare, just from straight land use and zoning over the years, you know, a 173 lot of those, kind of, bars and restaurants in, in other communities have been formed in true commercial 174 areas that don’t have the single family residential, literally, right behind their back wall. There is, tends 175 to be more of a buffer, uh, with a little more space differential. So, uh, we've, I know we looked at, uh, 176 we looked at Paradise Valley, I think we looked at Fountain Hills, I know I've looked at your neighbors 177 to the east, uh, um, that community that will remain unnamed here in Cave Creek. Um, and we've 178 looked at some others. I think we looked up in Sedona, just trying to get an idea of how they handle 179 noise and we've tried to, kind of, incorporate some of their noise ordinance provisions, into, into the red 180 lines, just to try and get it, but to answer your question directly, I don’t have that kind of data right now, 181 okay, what is the decibel level for Fountain Hills, Carefree, Sedona? 182 183 Ms. Wright: Mayor.

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184 Ms. Clancy: Oh, go ahead. 185 186 Ms. Wright: Thank you. Jeff, this has been going on for decades, exactly like this and the, the sound that 187 we are talking about, music, can be heard from my house, and I live four miles away. So, and I see 188 nothing that’s enforceable here. It's may, or two reasonable people, made complaint. What are 189 reasonable people? I don’t see. We need teeth. This needs to be tightened down, finely and solved. We 190 can't go back to let's be a team and go forward, because that doesn’t work, at all, in this community. 191 192 Mr. Murray: Well, and, and, and Councilwoman Wright, with, with respect to, to the County Ordinance, 193 you know, the County Ordinance says, uh, if, if you can hear sound amplification at any point within an 194 enclosed structure within 500 feet. 195 196 Ms. Wright: Right, correct. 197 198 Mr. Murray: Uh, that, that's really, I think, more than what you guys want to bite off. Now… 199 200 Ms. Wright: Oh, not me. [laughs] Not me. 201 202 Mr. Murray: You're the dec-, you're the decision makers. 203 204 Ms. Wright: Okay. 205 206 Mr. Murray: But, but, but let, let's be very, very clear, if, if you have a bar or a restaurant, and, in, in 207 your commercial corridor, and any structure within 500 feet, if you close the door and you can hear it, 208 that's too loud under the County Ordinance. 209 210 Ms. Wright: Correct. 211 212 Mr. Murray: But, but you also have to look at the, the definition of public disturbance in P23 of the 213 County Ordinance. That says… 214 215 Ms. Wright: The opposite. 216 217 Mr. Murray: Unless, yes, yes, exactly. 218 219 Ms. Wright: That's why you get rid of that. 220 221 Mr. Murray: Exactly. 222 223 Ms. Wright: Part. 224 225 Mr. Murray: Unless it's during normal business hours, of the normal business operation, of other similar 226 businesses in the area. So, now what do you, do you have teeth? Or do you not have teeth? 227 228 Ms. Wright: Well, you delete that. 229

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230 Mr. Murray: What's that? 231 232 Ms. Wright: Delete that part. It’s a third of a paragraph. 233 234 Mr. Murray: Well, then I think, I think you would be effectively eliminating any possibility of, of having 235 any bars or restaurants with any outdoor music. If all it takes is with anywhere within 500 feet, you can 236 hear it within an enclosed structure, it's too loud, then I think you’ve effectively eliminated probably 237 most of your commercial corridor. 238 239 Ms. Wright: Mm, I don’t think so. 240 241 Mr. McGuire: Councilwoman Clancy, what, what was the response of the, the businesses who, who 242 made the gesture there was, did you get a message from the businesses? 243 244 Ms. Clancy: Um, I, I think they just turned around and did exactly what they, I mean this goes back to 245 Four Seas, remember when Four Seas was having that very light music and, uh, Toby got involved in 246 that, that goes back a ways, and, [laughs] only to find out we wanted to do was that the water, there was 247 a water pump, or some kind of pump, that was used for the Town, if you will, was louder than the music 248 coming from the Four Seas, which was, most of the time, not highly amplified. So, it, it, you're right, it’s 249 a very fine line, um, but, no, they didn’t work together and they said they would and, and Toby offered 250 his services for free and most of it was just turning your, turning most of it back towards your own 251 building. 252 253 Mr. McGuire: Yeah, it, it, it seems to be that we're not really terribly concerned about what mechanism 254 they're using. It seems to me it, it’s the level of sound that's the bottom line. Uh, there are many different 255 kinds of abatement procedures, but the abatement procedures is not really an issue for the citizens. That, 256 that's, the, the noise, regardless of what the technology is, is in use. 257 258 Ms. Elrod: Would, would you agree, though, that once the level of noise reaches your being and you are 259 subjected to something that you don’t want to be subjected to, wouldn’t that be a nuisance? 260 261 Ms. Clancy: Yep, absolutely. 262 Mr. McGuire: Yea of course. 263 264 Ms. Elrod: So. 265 266 [inaudible background discussion] 267 268 Mr. Murray: Well, and, and I'll, I'll tell you, [laughs] uh, I, I, I think, I think the way you framed the 269 question is, is the answer is yes. 270 271 Ms. Clancy: Yes. 272 273 Mr. Murray: The way you framed the question, of course, of course that is, but, but you also, then, then 274 you have to take into account what rights do the business owners have. Uh, you have to take into 275 account, um, I, I guess the best way to say it is in law school they always told you to be careful of the

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276 eggshell plaintiff. So, are, are we dealing with the folks that, that literally are sitting in their living room 277 and saying, "Oh, I heard it. I heard it. I'm bothered." Or, are we truly dealing with, with what I think 278 you're getting at is, wait a minute, wait a minute, I can't concentrate, I can't read a book, I can’t talk to 279 my kids, I can't talk on the phone, this is, this is absurd. And, and, there is that fine line, because as, as 280 my discussion with Councilwoman Wright, if you hear the noise under the County Ordinance, it is a 281 nuisance, and that's why, uh, frankly, that’s why I inserted the, the two or more reasonable people. Is 282 that kind of grey and wishy-washy? Yes. But, does it then, does it then at least attempt to address just 283 the one eggshell plaintiff that is saying, "Wait, wait, wait, I can hear a faint noise and it's bothering me." 284 Yes. Uh, and so, wh-, whether that language is satisfactory or not, frankly that’s from your neighbors to 285 the east, that's their noise ordinance. Um, uh, and that's why I stuck it in there because it adds, it adds 286 something more than just one complaining party. 287 288 Ms. Elrod: Oh, wouldn't, wouldn’t… 289 290 Ms. Wright: I don’t think that’s ever an issue, one party in this town. They're numerous… 291 292 Ms. Elrod: Wouldn't… 293 294 Ms. Wright: All the time. Every weekend and it goes on for months and months. And I've been in those 295 neighborhoods when that happens. They say, "Stay here until one, one p.m., and you'll hear the music 296 start." And it is so loud in a neighborhood that it's, that it's very unpleasant. So, it's, I don’t think this, 297 this community has eggshell people, okay. I think they’ve suffered greatly from noise for a long time 298 and I, it's time to tighten it up, to a degree. And, we've also, and, what was done here, you took out 299 public nuisance on page nine, it's crossed off and so that would allow, a public nuisance would be racing 300 lawnmowers. The lawnmower racing, it's on page nine, F1, Violation of a Public Nuisance, has been 301 crossed out. 302 303 Mr. Murray: Well, I think, I think we can address true public nuisances in, in a, an ordinance provision 304 that is not in your noise section. Put it that way. I-, i-, uh, as I mentioned, I think that… 305 306 Ms. Wright: So, is it in here someplace else? 307 308 Mr. Murray: I think, I think you have a public nuisance section. I c-, I could be wrong on that, so don’t 309 quote me on that. 310 311 Ms. Wright: Yeah. 312 313 Mr. Murray: But, I think… 314 Ms. Wright: I didn’t see it. 315 316 Mr. Murray: I think it's… 317 318 Ms. Elrod: Yeah. 319 320 Mr. Murray: Well, I think I just crossed out 91.01 as well, um, cause I'm not sure why that was… why I 321 thought of that.

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322 Ms. Elrod: I… 323 Mr. Murray: But, anyway. 324 325 Ms. Elrod: I really don’t like the word eggshell, um, on-, on-, only because you're, you're categorizing 326 people who are listening for this. I'm referring to if I'm driving into a Circle K and there's three cars 327 blasting their music, and it is effecting my, my space, my freedom space, that's a nuisance. 328 329 Mr. Murray: Well, let me, let me be clear, first about your comment. I'm not categorizing anybody as 330 anything. 331 332 Ms. Elrod: Oh. 333 334 Mr. Murray: I used a term that law school professors use, because I said for lack of better words. 335 336 Ms. Elrod: Okay. 337 338 Mr. Murray: We're talking about an eggshell plaintiff. So, I'm not, [laughs] I'm not categorizing anybody 339 in this community as anything. 340 341 Ms. Elrod: Okay. 342 343 Mr. Murray: My point was, that’s why I included two or more in the red lines, so that we don’t just have 344 the one highly sensitive, or overly sensitive complaining party. 345 346 Ms. Clancy: Jeff, what did… 347 348 Ms. Elrod: Understood. 349 350 Ms. Clancy: Did you look into Scottsdale, when they started putting those bars in and, yes, there aren't a 351 lot of homes near there, but the bars themselves were getting very upset with competing sounds. Did 352 they… 353 354 Mr. Murray: Yeah, you know, I… 355 356 Ms. Clancy: Come up with any. 357 358 Mr. Murray: I, I'll be candid with you, I don’t remember, but we did look at Scottsdale because I know 359 that was one of our target communities, especially with Old Town Scottsdale… 360 361 Ms. Clancy: Right, Old Town. 362 363 Mr. Murray: Because there are single family residential and multifamily residential very close to that 364 downtown corridor, but uh, I'll be honest with you, Cl-, Ms. Clancy, I, I've, don’t have good recollection 365 of what we found in Scottsdale. 366 367 Ms. Clancy: Okay.

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368 Mr. Murray: But I can look at Scottsdale. 369 370 Ms. Clancy: Because I, I know that they were, it was in the paper quite a bit, way back when, and if you 371 did drive down there, you could hear music coming from here, music over here… 372 373 Mr. Murray: Yes. 374 375 Ms. Clancy: Music over there, um, and I thought that they had come up with something specifically for 376 that area. 377 378 Mr. Murray: They, they may have and I don’t remember. 379 380 Ms. Clancy: Okay. 381 382 Mr. Murray: But I also have been dealing with the Scottsdale City Attorney's Office on another matter. 383 So, let me look at their code. I can look at that again. 384 385 Ms. Clancy: Okay. 386 387 Mr. Murray: I can also reach out to their City Attorney's Office and say, "How do you guys deal with 388 this?" 389 390 Ms. Clancy: And I can also say that as someone who grew up on a, [laughs] base, um, where there were 391 missiles being shot off. 392 393 [laughs] 394 395 Ms. Clancy: And of course, every new jet was on the, um, area and then I look at how it's grown out 396 towards Luke Air Force Base and the complaints that the new construction has caused. It's, those of us 397 who were military brats, we hear that sound and we think about our Country being safe, others find it to 398 be noisy and bothersome. So, again, that music, [laughs] it's all in how you hear it. So. 399 400 Mr. Murray: It is. It, it truly is and, and I, I, I hope that’s a re-, a point and again, I, I'm here to…. 401 402 Ms. Elrod: It is in the eye of the beholder. 403 Mr. Murray: Correct. I'm here to help you guys get, get to a finished product that, that the majority of 404 you support. 405 406 Mr. McGuire: I, I… 407 408 Ms. Wright: Jeff, why is… 409 410 Mayor Bunch: Town Manager, you had a comment? 411 412 Ms. Dyrek: If, if, we have a variety of noise complaints that we've had over the years, but most recently, 413 and one of the things that we have been focusing on in our conversations with Staff and also with Toby,

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414 is music or speakers that, um, are mounted inside and outside the brick and mortar establishments. I 415 know there's special events where they have temporary stages and, and speakers mounted there as well. 416 And that was a lot of the focus on how we address that and Toby was pretty clear that he refers to that as 417 amplified sound, and that was something when, uh, Councilwoman Clancy mentioned we met with the 418 business owners, trying to get them to police themselves and address that, by looking at their mounted 419 speakers and having a sound expert come and give them suggestions on, on how to mitigate the noise, so 420 that the decibel levels then, wouldn’t be above, or, you know, such a nuisance to the surrounding, uh, 421 neighbors. So, the focus has been looking at that and we don’t have the language drafted in the code, 422 although Jeff did put it, um, uh, some language for a possible permitting process for speakers, for, I'm 423 assuming a new establishment may come in, or they want to add some amplified sound and they would 424 have to put in speakers for music. You know, we have Roadhouse has a speaker that goes, is projected 425 east, across their parking lot and we hear, uh, and, and get many complaints about, you know, "Jon, your 426 order is ready." And we've had that from, uh, TC, we've had it from, uh, Larry Wendt's property, where 427 there are announcements for the bull riding. Those seem to be the, ongoing, majority of the complaints 428 are related to speakers. But, how we, and, and Toby is suggesting we regulate it similar to light 429 regulations. That it is somehow pointed in a certain direction and shielded, or, or faced against a wall, 430 you know, you have interior speakers, for example, in Roadhouse and then they open up their garage 431 doors and it's blasting outside. So, the speakers are okay when it’s a solid structure, but when you open 432 up windows and, and doors, you hear that noise. So, if there were a way, and I don’t know how this 433 would be, that, uh, it would have to be established, if you are gonna have a permitting process, and this 434 is, this is the trouble we have on Staff, how are we going to write in the ordinance exactly what they 435 should have, where it should be placed, the height it should be placed, the angle, so that we have Staff 436 that have the ability and the knowledge to actually go inspect it, tell them what their plan is and go 437 inspect it before you issue a permit. We haven't found another jurisdiction, yet, that has that kind of, uh, 438 regulation on the books that we could look at. And then separate from that would be, special events, 439 you'd have to have something similar in the Special Event Ordinance, in order to have someone go out 440 and inspect every stage that is set up for, um, uh, concert, outdoor concert. 441 442 Ms. Clancy: We can't afford that. 443 444 Ms. Dyrek: Right. 445 446 Ms. Clancy: I mean, that would be… 447 448 Ms. Dyrek: Well, how are we gonna handle that? 449 450 Mr. McGuire: And I think it would be valuable for the, the, maybe the Town could have some, uh, 451 policy with regard to, uh, not policy, uh, some suggestions for businesses that they might use to abate 452 the noise. I don’t think it's up to us to say, "Well, here's the technique that you need to use." Technology 453 is changing all the time. But, we may be able to give them some suggestions. 454 455 Mr. Smith: Mr. Mayor. 456 457 Mayor Bunch: Uh, Councilman Smith.

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458 Mr. Smith: Yeah, I, uh, I, first off, we, we all signed a code of conduct thing a while ago that talks about, 459 you don’t talk over other people, you don’t do a lot of stuff, you get permission to speak. That's why I 460 asked for permission to speak. 461 462 Ms. Clancy: Oh. I didn't… 463 464 [laughs] 465 466 Mr. Smith: My preference is that should, things be as structural as possible. Meaning that ordinances 467 should govern the installation of any amplification equipment. I really hate the idea of two reasonable 468 people. That is the most subjective thing anybody ever came up with. There are simple ways to do stuff. 469 If anybody wants to have an installation, you have a sustained 75-80 decibels coming out, go to the 470 periphery of the property, measure it, if it's too high and the periphery, you can't have that, it's got to be 471 turned down. There are ways to do this stuff. It's just that nobody is willing to do it. That's my, my 472 statement. 473 474 Ms. Wright: Mayor. 475 476 Mayor Bunch: M-, may I please? I lived through the 13 meetings and the noise ordinance that we went 477 through, um, it was, it was, what we were trying to do was pattern it after Austin, Texas. Because 478 they’ve got sixth street and then they’ve got the music center and then they’ve got the residences right 479 next door. And one of the, one of the things that, uh, that we ended up going through 13 meetings and I 480 believe we didn’t do anything after we got done. I believe we shot the whole thing down, so we wasted 481 an awful lot of time, but there is actually a pretty darn good noise ordinance way, from way back when, 482 with one component that was missing. And that component that was missing was that for anyone to have 483 amplified music, they had to have a permit. In order to get that permit, they had to have a sound expert 484 set it up, show them how to direct the speakers, because sound is definitely directional, and if they were 485 to blow through that and then they would be measured at their property line, at, at whatever the, the, the 486 decibel number was, if they blow through that two times and they lose that privilege for a year. Uh, and 487 get to start over again. And, at that point, um, I, I believe that that makes people, actually, self-governing 488 as opposed to having us stand over them all the time. I just wanted to throw that out there, because that, I 489 kept pushing for that portion of it way back when and Vincent wouldn’t, wouldn’t go for it. Um. 490 491 [inaudible background discussion] 492 493 Mayor Bunch: That, but, I, I think, I think that's probably, if, if you, if you make it where they can lose 494 that right, because losing that right is losing revenue. Um, and it's gonna hurt them where, where, where 495 it's gonna get them the most and I, I, I think that's possibly a way to, I just wanted to throw that out there 496 cause, uh, like I say, we got to listen to the same, same 30 people three minutes at a time for 13 497 meetings. It was the darnedest thing I've ever been through, it was time you'll never get back. 498 499 Ms. Wright: Mayor, may I add to that? 500 501 Mayor Bunch: Go, yeah, please. 502

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503 Ms. Wright: I think one of the problems we have is the sound measuring technique that is not valid. I 504 have heard every Staff person say, "You can't measure with it if a motorcycle goes by, it's not valid." 505 So, number one, there's no accurate way to measure and even if you did, everything in here is 506 discretionary. It says, "The Marshal may." Where, where do you, where do you get your enforcement 507 mechanism? There isn't one. 508 509 Mr. Murray: Well, Law Enforcement, in general, I don’t know if you were done with your question. 510 Law Enforcement… 511 512 Ms. Wright: Oh, no, I was waiting for an answer. Where is your enforcement mechanism? Okay. 513 514 Mr. Murray: Law Enforcement, in general is discretionary. And, and, what, what we have to do is we 515 have to provide your Law Enforcement Official with some level of discretion. And, and, and the reason 516 why we included that discretion is exactly the first part of your comment. 517 518 Ms. Wright: Mm-hm. 519 520 Mr. Murray: The first part of your comment is, it is very difficult, if not impossible, to take an accurate 521 measurement… 522 523 Ms. Wright: Right. 524 525 Mr. Murray: At certain times of the day. 526 527 Ms. Wright: Right. 528 529 Mr. Murray: And so the last thing we want to do is, is send your Marshal in to court to enforce some 530 kind of citation and have that be the case. Oh, well it measured 105, but there was a motorcycle driving 531 by. I mean, if, if the traffic levels were too high, and… 532 533 Ms. Wright: Right. 534 535 Mr. Murray: And Adam decides that now is not the time, I can't measure, I can't enforce based on this. 536 We don’t want to have some criteria in your ordinance that says, "When he measures, if it exceeds 75 or 537 70, they shall be cited." He has to have some level of discretion to make that determination. He has to. 538 539 Ms. Wright: But there is nothing but discretion in here. There is no shall. 540 541 Mr. Murray: Understood. 542 543 Ms. Wright: So. 544 545 Mr. Murray: Understood. 546 547 Ms. Wright: Then what, so, now we're back where we've been for decades. I think that Gayle, well, his 548 name was Gayle something, that did all this 20 years ago, exactly what we are doing with the sound

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549 ordinance and went through all this and we haven't come forward one step. We need to have something 550 that's concrete. If it is Maricopa County's first paragraph, that's what it is, with some other things, but 551 we, what we have here, isn't going to work anymore, better than it did yesterday or the day before or ten 552 years ago. 553 554 Mr. McGuire: Mr. Mayor. 555 556 Mayor Bunch: Uh, McGui-, Councilman McGuire. 557 558 Mr. McGuire: Um, Town Manager, uh… 559 560 Ms. Dyrek: Yes. 561 562 Mr. McGuire: We had an issue with, uh, lawnmower racing in Town, uh, what, six months ago or so and 563 a major component of the problem was, uh, the sound. 564 565 Ms. Dyrek: Yes. 566 567 Mr. McGuire: Uh, how did you deal with that? Apparently it got solved in some way. 568 569 Ms. Dyrek: [laughs] We told them to stop. 570 571 [laughs] 572 573 Ms. Dyrek: Uh, but I, I want to, where is it in here, I just saw this. 574 575 Ms. Wright: While Carrie is looking, my I add to that… 576 577 [inaudible background discussion] 578 579 Ms. Wright: The lawnmower racing would now be allowed… 580 581 Ms. Dyrek: No. 582 583 Ms. Wright: Because what would affect it has been deleted. 584 585 Ms. Dyrek: Uh, I wan-, here it is, I wanted to go back to, we, we addressed the issue with the measuring 586 because we were measuring at the property line, and most of the businesses are, the property line is the 587 busy road on East Cave Creek Road. And so, in, where are we, Land Use Noise, C, sound levels shall be 588 measure on or about the property line of the parcel, uh, from which the noise complaint is received. So 589 that you would-, if you are going to a residential property and measuring it from their property, chances 590 are you're not gonna have a lot of noise from the core, you're measuring it there. That was one option 591 that we discussed. 592 593 Mr. Murray: And that, that was also a recommendation of Toby, uh, as, as I recall. Is that right, 594 Councilwoman Clancy?

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595 Ms. Clancy: Mm-hm. 596 597 Mr. Murray: I think, I think, um, I think Toby mentioned, wait a minute, we, we ought not to be 598 measuring… 599 600 [inaudible background discussion] 601 602 Mr. Murray: At the noise producing property, let's step back and find out if it's really a nuisance by 603 measuring from where the complaint is coming from. 604 605 Ms. Clancy: And… 606 607 Mr. Murray: So I think we stuck that in there on Toby's recommendation. 608 609 Ms. Clancy: And, and the other thing that Toby said is you can't go to the road, 610 611 Ms. Dyrek: Right. 612 613 Ms. Clancy: Because it, it won't, it won't work. 614 615 Mr. Murray: Right, right. 616 617 Ms. Clancy: So. 618 619 Mr. Murray: Right. 620 621 Ms. Dyrek: And, that was Toby's recommendation, one or two iterations ago, when the noise ordinance 622 came forward, was not to measure at the property line, was to, you have to measure at the complainant's 623 property. Or, the other option was, uh, a, a, diff-, it was a different measuring, it wasn’t right at the 624 property line where it was close to the road. So, he had some options. 625 626 Mayor Bunch: Councilwoman Clancy. 627 628 Ms. Clancy: Well, [laughs] I, I recently, after our, Mr. Augherton was there also, did he, he look up? 629 [laughs] I said, we recently went to a debate and we left at midnight or something, after talking with you 630 guys and, um, walked out and the music coming, at midnight, from across the street… 631 632 Ms. Dyrek: Mm-hm. 633 634 Ms. Clancy: Was so loud and it was, wait a minute, it'd midnight, there's nobody even over there. 635 [laughs] And the window is open and the door's open and, I, I, I, I don’t know, maybe they were 636 cleaning up and they just needed it really loud. But how do you, how do you do that and why would you 637 call, you know, your Marshal, or MCSO, they probably all were sleeping by then. Run out there and tell 638 them to turn it around, uh, if the restaurant across the street and nobody calls in, says anything, then 639 you're not gonna run out and do anything, so. 640

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641 Mayor Bunch: You're, you're, I think the, uh, uh, one of the criteria we looked at before also is I believe 642 that the, the, uh, duration of the, of the decibel reading is three minutes in the current, uh, and we were 643 looking at, at reducing that cause most, most songs are 2:25. So, you're gonna, [laughs]. 644 645 [laughs] 646 647 Mayor Bunch: But, uh, that, that's what, uh, that's what Nashville shoots for, so, um. 648 649 Mr. Murray: Well, and it, it, and, and I, like I said, there, there are, and I think, uh, as Councilman 650 McGuire said, there are different ways to abate this. I mean, uh, uh, I, I presume, and, uh, and I haven't, 651 uh, this is kind of just speaking off the top of my head, so I haven't really thought about the legality of 652 this, which is always dangerous for a lawyer to say that, but, but you know, there could be ways where 653 we could measure it at, at certainly an off-peak time and say, "Okay." Or, even have an objective 654 measurement that says your sound, at any time, shall not exceed, X. Um, but that, that still gets us into 655 the problem, what happens if, if we're getting these complaints and Adam has to go out there and 656 measure and it's at a peak traffic time, or whatever the case may be. How are we gonna differentiate the 657 sound being produced and/or amplified, versus kind of this background noise. 658 659 Mayor Bunch: Yeah. 660 661 Mr. Murray: I think, really, that, that, that's what precipitated all of this, as Councilwoman Wright has 662 said is, is the inability or the difficulty in enforcing whether it’s our current noise ordinance, some prior 663 noise, or some future noise. We've got to, uh, uh I think everybody acknowledges that it needs to be 664 addressed, but, but as, as this discussion has proved, it's not an easy solution. As you said, you went 665 through 13, 13 iterations of the last time and you wound up with nothing. 666 667 Mayor Bunch: Yeah, yeah, and, and I could, I can say that uh, um, one particular day, that, uh, there was 668 an outdoor event at Harold's, with, it was Chick's with Fix, was the name of the, the, uh, the group, the, 669 uh thing and a lot of different singers/songwriters and a friend of mine was running sound and I took his, 670 his decibel meter and I went directly between a line between, um, this, the speakers and Black Mountain 671 Shadows and took the reading and I had him raise it to, to get to 80, is what I shooting for, and once I, 672 once he had that, I said don’t touch anything else, leave, you know, leave that groove. I drove around to 673 Black Mountain Shadows and I could just barely hear them on the, on the wind and it was a calm day. 674 Uh, so there, there are numbers that, that would work, um, it's just that we've got to figure, we, we'd 675 have to figure out what those were. I, yeah, it's cause, you know, we, we don’t want to, we don’t want to 676 kill the golden goose. 677 678 Mr. Murray: Well, yes. 679 680 Mayor Bunch: Yeah. 681 682 Mr. McGuire: Mr. Mayor. Um, you know, what do other people on the Council think of the idea that 683 you had brought up in terms of allowing, uh, uh, uh, uh, of, uh, requiring businesses to have permission 684 to have the noise amplification? 685 686 Ms. Clancy: Outside, are you saying?

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687 Mr. McGuire: Yes, am I ex-, expressing it properly? 688 689 Mayor Bunch: Yeah, well, [inaudible 39:40] permitted with the chance of losing that, losing that 690 privilege. 691 692 Mr. McGuire: The permit, yeah. And, and, how do you determine whether or not they should lose that 693 privilege? 694 695 Mayor Bunch: Uh, two, two violations. 696 697 Mr. McGuire: A violation? But is it a measurement using, uh… 698 699 Mayor Bunch: Yeah, yeah. 700 701 Mr. McGuire: A sound meter? Yeah? 702 703 Mayor Bunch: Yeah, yeah. 704 705 Vice Mayor Sova: Mr. Mayor. 706 707 Mayor Bunch: Vice Mayor. 708 709 Vice Mayor Sova: That's all well and good, but until you establish what the criteria is, what the noise 710 level is, under what conditions it's measured, it's, it's all a moot point. 711 712 Mr. McGuire: Yeah. 713 714 Vice Mayor Sova: I have a common sense solution. I think every bar and establishment in this town that 715 played music both inside and out, live or recorded, must turn the amplifier, assuming it has a maximum 716 volume setting of ten, somehow they get it to eleven. I think if they were to turn it down to five, it's still 717 loud, you can still hear it, but for some reason, everybody has to play it at maximum volume. That's the 718 way it was 60 years ago. That's the way it is today. And, I contend, you don’t need it that loud to begin 719 with. 720 721 Mayor Bunch: And, and I can tell you how that happens. The drummer hits the drums harder… 722 723 Vice Mayor Sova: [laughs] 724 725 Mayor Bunch: And the bass player goes, well, heck, they can't hear my bass line and he turns around 726 and he turns his, his amp, his, uh, amp up and then the lead singer says, well they can't hear my lyrics 727 and he turns his up and the lead guitarist does the same thing and it's a, it's a, um, uh, we even talked 728 about making the drummers be inside a plexi-glass cage, or, or, or something, in order to, in order to 729 keep them from being able to do that, cause that’s, that’s the, the, and the way that you do that is, is, is 730 everybody goes through one sound board. Which, would probably be one of the uh, the um, um, criteria 731 for, for a permit. That way you don’t get these willy nilly, everybody's got their own amp, and, cause I

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732 was at a, I was at a, a Jerry Jeff Walker concert one time and he did that and it got so loud that you 733 couldn’t even sit in celebrity theater, so. 734 735 [laughs] 736 737 Ms. Elrod: I think, I think they need, need more practice. 738 739 [laughs] 740 741 Mayor Bunch: Well yeah, yeah, oh dang, they can hear me now. [laughs] 742 743 Vice Mayor Sova: Mr. Mayor. 744 745 Mayor Bunch: Yeah. 746 747 Vice Mayor Sova: Question for our Marshal. Whenever I watch a football game in football season, they 748 have these, what's the word, "pole-a-bar" antennas… 749 750 Mayor Bunch: Para, parabolic. 751 752 Vice Mayor Sova: Parabolic, I stand corrected, antennas where you can direct it, and I can hear what the 753 quarterback's calling in the huddle, amongst the stadium of a hundred thousand people all cheering. Isn't 754 there some sort of sound, or measuring equipment like that that focuses right on the stage and eliminates 755 the side noise or street noise? Or are we not there yet, electronically? 756 757 Marshal Stein: Mayor, Vice Mayor, I apologize. Mr. Mayor, Vice Mayor, truth be told, you know, we 758 are using Law Enforcement materials. I'm not a sound expert. I'm a Police Officer and I use a type A 759 meter, type two meter on a class A waving, which is what Police Officers use. I don’t know what the 760 capabilities of, uh, expert sound readers are at football games, truth be told, um, you know, it'd be like 761 asking me if I can go out and, well can't you get a, uh, uh, a special device that will measure speed and 762 supersonic, sure, I mean I'm sure there is. Scientist probably use it. Not Police Officers. 763 764 Vice Mayor Sova: Well, I'd, I'd make a suggestion, uh, and have our Town Manager or somebody, Staff 765 in Town, investigate what a specific piece of equipment, such as I'm describing costs, how much 766 training does it take to utilize it and understand it and if you can isolate the sound that way, you then, 767 we, we, we have a, uh, ordinance that will say if at the property line it's whatever, 60, 75, 80 dbs, for 768 some, uh, lesser than three minutes, for 30 seconds, uh, that the business is warned once, I like the 769 Mayor's suggestion, warned twice, uh, and then, uh, they're not allowed to have it for some period of 770 time, any outdoor music. Uh, I'd like to keep it simple. It doesn’t have to be that complicated, I don’t 771 think. If a, if a piece of equipment was a couple thousand dollars to do what I'm suggesting, I think it's 772 money well spent. If it's 100 thousand, I understand. 773 774 Mr. Smith: Mr. Mayor. 775 776 Mayor Bunch: Councilman Smith. 777

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778 Mr. Smith: Again, I'd, I'd like to suggest that the best way to initialize things is to start at the front end 779 and limit the ability of venues to distribute sound outside of the venue. You know, there are a lot of 780 mechanical means. We do it with elec-, with, uh, lighting. We say, "Lights have to go down." Well, if 781 the Roadhouse has a, uh, a system that directs sound out, and I know that, uh, uh, TC's place had the 782 same, uh, problem a while ago, where they direct sound out, because it brings people in. There, they 783 have the right to do what they want at their venue, as long as they observe health and safety, and I think 784 that's something that we haven't looked at, the health and safety of the patrons and we could probably do 785 something with that. But, if we start out with an ordinance that says, "This is the way you have to do it, 786 and if you do anything different, anyway different than this, then you, you're closed down." Just a 787 suggestion. 788 789 Ms. Elrod: I completely agree with you. 790 791 Mr. Smith: Pardon? 792 793 Ms. Elrod: I completely agree with you, Councilman Smith. 794 795 Mr. Smith: Thank you. I, I think, just think it's an easy way to do things. 796 797 Ms. Elrod: I do. 798 799 Ms. Wright: Mayor, may I comment on… 800 801 Mayor Bunch: Councilwoman Wright. 802 803 Ms. Wright: Yes, actually the Maricopa County Noise Ordinance real clearly talks about the health and 804 welfare in regard to sound. So, it's already included in this part, but I totally agree with your 805 presentation. So. 806 807 Mayor Bunch: It's like our current ordinance is showing, uh, I believe 50 decibels in, uh, in, um, desert 808 rural at night. I think you'd be hard pressed to find 50 decibels anywhere you went, uh. 809 810 Ms. Clancy: You haven't been at my… 811 812 Mayor Bunch: Hm? 813 814 Ms. Clancy: You haven't been at my house . 815 816 [laughs] 817 818 Mayor Bunch: That's, Adam, what, I, I, we, we took a lot of measurements way back when, I, and I, I've 819 slept a few times since then, so, I'm thinking it was '06, '07, somewhere in there when we were doing 820 that, um, what's ambience in the neighborhood? Do you remember? 821 822 Marshal Stein: It has been quite some time, Mr. Mayor, since I took those readings. Um, you know, I 823 could only talk to the readings that we've recently taken on Cave Creek Road.

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824 Mayor Bunch: Mm-hm. 825 826 Marshal Stein: Um, I, I think if we were to go to pretty much most locations on Cave Creek Road, um, 827 daytime hours, uh, evening hours, um, again, the, the amount of traffic that is going by whether it be 828 cars, trucks motorcycles, vehicles pulling trailers, I think we are going to be in the high 60's to 70's, most 829 likely. 830 831 Mayor Bunch: Yeah. 832 833 Marshal Stein: When those vehicles go by. 834 835 Mayor Bunch: And my recommend-, or my recollection is we're about 70 right now, just talking back 836 and forth between each other. 837 838 [laughs] 839 840 Marshal Stein: I'll leave that alone. 841 842 Mayor Bunch: And we can get a lot louder than that, too. We hadn't had to, but. Jeff, do you have any 843 idea of what we're doing? 844 845 Mr. Murray: Well, I think on the last couple of comments, I think, I think that's probably not a bad place 846 to start. What I'm hearing is, is maybe we don’t need to make any immediate changes to the existing 847 ordinance, what we need to do is add some, some criteria for sound equipment. Whether it be speakers 848 or amplification, we need to probably get, and, and this is my follow up question to you all that just had 849 that brief discussion, I, I think probably what we want to do is get, get Toby back in here and have, 850 maybe have him give us a list of four or five things in terms of speaker height, speaker location, speaker 851 direction and we can start with that and I think, I think either the Councilman or the Vice Mayor's 852 comments were, we don’t want that, that sound to be projected out, we want to treat it like light and 853 project it into the property. 854 855 Mayor Bunch: Yeah. 856 857 Mr. Murray: And so, may-, maybe we start with an amendment to the ordinance or with even a new, a 858 new addition to the ordinance or a new subsection that just talks about installing. 859 860 Mayor Bunch: Yeah. 861 862 Mr. Murray: How the speakers… 863 864 Mayor Bunch: And, and, and the problem with what you just said is everything, sound is directional, so 865 everything is site specific. 866 867 Mr. Murray: I know. 868

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869 Mayor Bunch: Which is why you have a, a permit and a sound expert tell them how to set it up to begin 870 with. 871 872 Mr. Murray: I know. 873 874 Mayor Bunch: [laughs] 875 876 Mr. Murray: And the, well, and there, uh, well, look, when, when, when Carrie and Staff first came to 877 me, I mean, I'm, I'm hearkening back to my days representing ADOT and, and they hired me in, in 878 2,000, I think, well I got hired in '99, started in 2,000 and when we were, ADOT was in the, the, the 879 throws of completing all the freeways, uh, the metro freeways and sound walls were the biggest thing 880 going on because we had all these plans for residential subdivisions and neighborhoods and, and we 881 were putting six to eight lanes with expansion capabilities up to ten to twelve lanes right through what 882 was gonna be a future, uh, residential subdivision. So, so whether it's the FHWA or ADOT, we had 883 sound experts all over the place. And so, there are ways to get a sound study, but it is not cheap at all. 884 And so if we can come up with, with some objective criteria that Adam can say, "Hey, okay, you're 885 violating this or you're vi-." You know what, based on a sound expert’s recommendations, let's start 886 there. 887 888 Mayor Bunch: Yeah. 889 890 Ms. Clancy: I bet Toby might do it for a discount. 891 892 Mayor Bunch: Oh yeah, we talked about it back then. 893 894 Ms. Clancy: Right. 895 896 Mayor Bunch: I mean, that was, you know, I, and, and actually there was a lot, a lot of good work that 897 came out of that. I don't know why we didn’t pass the thing, it was the Council we had at the time, but 898 there is a, a baseline, um, um ordinance. 899 900 Mr. Murray: Well, why don’t we start with that, Mayor? 901 902 Mayor Bunch: That, that we had. Maybe everybody should get a copy of that and… 903 904 Mr. Murray: Yeah, let's… 905 906 Mayor Bunch: And look and see the, see the work that we did, because it wasn’t that bad, it just didn’t 907 pass. Vincent was really annoyed, because everybody voted against it. 908 909 [laughs] 910 911 Mayor Bunch: After we went through all those iterations, it just… 912 913 Ms. Elrod: You have to start somewhere. 914

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915 Mayor Bunch: Hm? 916 Ms. Elrod: You have to start somewhere. 917 918 Mayor Bunch: Yeah, and, and, and like I say, it was based off of a, of a community very similar to what 919 we've got because sixth street in Austin sprang up as a mu-, as a, as a music area, right next to those 920 things, very much like the County went through here and went, okay, everything 110 feet away from the 921 center line of the road is commercial. I mean, that, that's how we got where we're at. You know, or 200 922 feet or whatever, whatever the number was. There was even properties cut in half. Half of them were 923 commercial and half of them were res-, DR89, or 190, or whatever. So, it, it, it was, the County didn’t 924 do any favors. A lot of the issues that we've got as a Town go all the way back. 925 926 Mr. McGuire: If I may. 927 928 Mayor Bunch: Yeah. 929 930 Mr. McGuire: Yeah, I, I was on the Council with you at that time and as I recall, the difficulty was in 931 getting, uh, I'm sorry, uh, the difficulty wasn’t in getting people on the Council to agree to a particular 932 standard, there were some who felt absolutely it had to be 80 decibels. There were other people that felt, 933 no, that’s too much, it has to be 70. But, somewhere along the line you’ve got to do a measurement. 934 Whether they are putting in the proper engineering or not, the, it's not the engineering that, that upsets 935 people, it's the sound that upsets people. 936 937 Mayor Bunch: Yeah, yeah. Anyway, I just, just throw that suggestion out there. 938 939 Ms. Clancy: I was just thinking, uh, the church at the Buffalo Chip, does that bother people, too? Um, 940 I'm just asking, because they have music and singing and… 941 942 Mayor Bunch: Yeah. 943 944 Ms. Clancy: I mean, and it, and it goes up the mountain, I'm sure, on occasion. 945 946 Mayor Bunch: Yeah, and that's, that's the problem we've got that, with, with no humidity in the air and 947 uh, and, and the cool, cool evenings, it, it's like when you're on the lake and you wake up in the morning 948 and there are people half a mile across the cove and you can hear them banging their pans and stuff, 949 getting ready to ma-, fix their breakfast, it's, it's, it's the, uh, um, it's the way that, way sound travels and 950 in this, if we, if you had, if you had high humidity, you wouldn’t have those issues. But everything's 951 so… 952 953 Mr. Murray: And it depends on if there is anything to block it, too. Anything. 954 955 Mayor Bunch: Yeah, yeah, yeah. I'd get a custom van one time, but it had one of those beds that lay 956 down, I got back there and I put my speakers in there, oh, these are great, you know, listen to that! Went 957 on the first trip with the seat up and went what the hell happened to my speakers in the back? 958 959 Mr. Murray: Exactly. 960

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961 Mayor Bunch: [laughs] 962 Mr. Murray: Exactly, exactly. 963 964 Mayor Bunch: That was where I learned about directional sound. 965 966 [laughs] 967 968 Mayor Bunch: Pretty annoying. It had shag carpet and everything. It was nice. 969 970 [laughs] 971 972 Ms. Dyrek: Mayor. May I speak? Actually, um, uh, to address Councilwoman Clancy's, um, issue about 973 the church. Um, we were out, no, really, seriously. We were out at the Buffalo Chip, Adam was with me 974 and Toby and we were looking at all of the speakers on, uh, Buffalo Chip because there was a complaint 975 from the neighboring business that why should I do this because he's not doing that, you know, they're 976 all kind of pointing at each other. So, we did look at the lights and, and the speakers and that was one of 977 the things we looked at was the, the way the speakers were set up for the church and one of the speakers, 978 actually is turned off and the angle of them, that was the least of anyone's worry because of the way the 979 speakers were set up and the angle. Um, there was a, actually only one speaker, it was over the stands, 980 that was high and you could see the direction of it went over the top of the buildings and so he simply 981 asked Larry to lower it and point it into more towards the ground so that mitigates the noise. And, it can 982 be as simple as that. 983 984 Mr. Smith: It, it's easy. 985 986 Ms. Dyrek: We met with the businesses and there are still only a couple of businesses that really get the 987 majority of the complaints and with some adjustments to the speakers, you know, I, I just, I feel like 988 going out there and taking Toby with me and just standing there and say, "If you can move this speaker 989 and point it down into your parking lot, if you can change the angle inside the Roadhouse of where the 990 speakers are set up so when you open your doors, it's not blaring right out, it's like, it's like being 991 outside." As long as those doors are shut, you don’t really hear it. But, you always hear that speaker in 992 the parking lot. I mean, there, there are a handful of things we could do with two or three businesses that 993 would mitigate the majority of the, the music and amplified sound complaints. 994 995 Mayor Bunch: Yeah. There was a, there was a… 996 997 Ms. Dyrek: Trying to deal with it this way, it's frustrating because if they would just cooperate a little 998 bit, we could, it would go a long way. 999 1000 Mayor Bunch: Yeah. Sitting at a paid concert at C4 one night and, and the, the folks were doing 1001 acoustic, it was amplified acoustic, and the, the bar across the street that, uh, George owned, had a band 1002 upstairs that was so loud that they were drowning out. I walked over and say, "George, you know, 1003 people paid to hear this over there." And he turned it down, and then it was fine over there, but, but, it's, 1004 it's, it's the competing thing as well. You just gotta get a handle on, on how they're fighting with each 1005 other. 1006

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1007 Ms. Wright: Mayor, I have one quick… 1008 Mayor Bunch: Councilwoman Wright. 1009 1010 Ms. Wright: Yes. How do we get them to cooperate? 1011 1012 Ms. Clancy: Put some teeth in it. 1013 1014 Mayor Bunch: Yeah. 1015 1016 Ms. Wright: That's, I think it, yep. 1017 1018 Ms. Clancy: Work together, but put some teeth in it. 1019 1020 Ms. Dyrek: We, we could put some teeth into it, or we could wait for Mark Bradshaw to come back in 1021 town and I could personally speak with him and go, like, make an appointment with him and let him, 1022 have, hopefully he would agree to have Toby come over there, because those two businesses can be 1023 addressed. And, especially the Roadhouse, right now. I mean they weren't even busy and they’ve got the 1024 doors open and music blasting as if it's going to attract more people. 1025 1026 Ms. Clancy: Okay, twelve midnight. 1027 1028 Ms. Dyrek: But, it, it was overkill, I mean, it, maybe the residents might not hear it, but it goes towards 1029 Harold's. So, if you're driving by, you get it, it's blasting to the south. So, I, I don’t know, but I'm sure 1030 the businesses still hear it, you know, if it's that loud, I don’t really know, but. It's really, if when he's 1031 back in town, it's just a matter of calling him… 1032 1033 Mayor Bunch: Yeah. 1034 1035 Ms. Dyrek: Setting up a meeting, if he's willing, take Toby there and kind of stand there and say, "Can 1036 you fix this speaker? Will you fix this speaker? Will you fix that speaker?" 1037 1038 Mayor Bunch: Yeah. 1039 1040 Ms. Dyrek: And, if he agrees to do it, that should take care of a large part of that business. 1041 1042 Mayor Bunch: Councilwoman Clancy. 1043 1044 Ms. Clancy: Uh, well, got to remember, um, Mark will tell you, he put that wall up, cost him $36,000. 1045 1046 Ms. Dyrek: Mm-hm. 1047 1048 Ms. Clancy: But, it made a huge difference and he acknowledges that. 1049 1050 Ms. Dyrek: He did. He did. 1051 1052 Ms. Clancy: So, I don’t know how much push or sway he has down the road…

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1053 Ms. Dyrek: Mm-hm. 1054 1055 Ms. Clancy: Um, because I, I kind of get the feeling it's the managers that are running it. The, those guys 1056 aren't always on site. 1057 1058 Ms. Dyrek: Mm-hm. 1059 1060 Ms. Clancy: So, you still go to put some teeth in it. 1061 1062 Ms. Dyrek: Mm-hm. 1063 1064 Mayor Bunch: Yep. Alright, well, we are now at 6:30, which is what we, I think we had, uh, planned to 1065 use up for this part of it. 1066 1067 Ms. Clancy: Did anyone, anybody out there, based on the memorandum. Did, did, Tom, did you want to 1068 say something, based on your letter? 1069 1070 Mr. Augherton: Um, Mr. Chairman and Members of the Council, not really, because I'm a candidate and 1071 I don’t want to be opportunistic up here, making criticisms during a live election period. The only minor 1072 suggestion I might just not be able to resist, is, whatever you do, would you just establish what is it of 1073 intent? If the Council could cumulatively put together a statement of what your intent is, what the 1074 challenges is for a viable commercial corridor, in a residential community, adjacent to neighborhoods, 1075 from the low income apartments, from folks who just got here to the million dollar plaza, Black 1076 Mountain Shadows, your legislative intent language would probably have more weight and value to the 1077 business owners and the residents out there who have been suffering through this, forever. The patience 1078 is gone, I, I mentioned to you guys once before, my big fear is that we are gonna get a different kind of 1079 Council the next ten years, of people who live in the commercial corridor, with some of these projects 1080 doing infill when the Kite property comes on board. You get two or three, four people that are new in 1081 town from some of these infill patio homes, condos, and so forth, they're not gonna be reasonable, or 1082 care about the historic cowboy culture of Old Cave Creek and they're gonna be doing HOA type 1083 regulation. I, I really think the time to do something is now. I think you guys could gain a lot popularity, 1084 collectively and individually, if you would imply what your legislative intent is, to strike a balance. Um, 1085 so, I just leave you with those thoughts, but, um, this has been going on so long that, uh, we have 1086 outlived Members of Council, Members of Staff, will all due respect to attorneys who bring their 1087 expertise to the table, we ought to be working with people that do urban planning, or sub-urban 1088 planning, or some facet thereof, people that know how to make these complicated issues fit in Town 1089 Codes, not from just a legal standpoint, but from a implementation standpoint. But, at some point, you 1090 guys need to put your imprimatur on it. It's not the ordinance that is gonna be passed that is going to 1091 matter to the community, it's, I think, your stated objective that will matter the most. And the, the 1092 business owners should not be apprehensive. This Council has a very clear, pro-business, pro- 1093 importance of sales tax revenue, probably more than maybe even previous Councils. But, the residents 1094 are looking for their day in court. Their looking, I mean, Black Mountain Shadows, you know, many of 1095 you have been door to door up there during the campaign season, uh, it is, it is, it is very sad, uh, I mean 1096 it's nice that people have the money for a second home and they can disappear to Scottsdale and other 1097 places. The people at the apartments, they're used to suffering through this and over the years, the 1098 Village Apartments have been, particularly, a victim. I mean at $600 a month, I guess they don’t have

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1099 many expectations and the cockroaches, uh, you know, are more of an immediate issues, but, uh, the 1100 noise thing, uh, I just wish this Council could do something so we don’t have this issue going forward. I, 1101 You know, if I, if and I. 1102 1103 Mayor Bunch: Coward. [laughs] 1104 1105 [laughs] 1106 1107 Mr. Augherton: No, if I get to join you guys in the future, I can come with a cattle prod and try to do 1108 something, but, um, Cave Creek is small enough to where we're all on the same side of this issue, we 1109 want the same things, but, when, uh, Susan Clancy, Councilwoman Clancy and I walked out the other 1110 night from Harold's, late in the evening, uh, it really was a garage band looking for a garage. There was 1111 nobody inside, so. 1112 1113 Ms. Clancy: Well, I, you know, we were chit-chatting with other people now, so. [laughs] Get me in 1114 trouble. 1115 1116 Mayor Bunch: Yeah, I saw you two sitting there… 1117 1118 [laughs] 1119 1120 Ms. Clancy: We were chit-chatting. 1121 1122 [laughs] 1123 1124 Mayor Bunch: Alright, we, we are gonna move into executive session, so. 1125 1126 Mayor Bunch asked for motion to adjourn. 1127 M/S Bunch/Clancy to adjourn. 1128 1129 M/C by voice vote. 1130 Meeting adjourned at 6:34PM.

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1 FINAL MINUTES 2 SPECIAL TOWN COUNCIL WORK SESSION 3 TOWN OF CAVE CREEK, ARIZONA 4 MONDAY JUNE 11, 2018 5 6 7 CALL TO ORDER 6:00 P.M. Ernie Bunch, Mayor, 37622 N. Cave Creek Road, Cave Creek, AZ. 8 9 Roll Call: Deputy Town Clerk Jane Fuller 10 11 Council Present: Mayor Ernie Bunch, Vice-Mayor Ron Sova, Council Members Susan Clancy, 12 David Smith and Eileen Wright. 13 14 Council Absent: Thomas McGuire, Mary Elrod 15 16 Staff Present: Town Manager Carrie Dyrek 17 Deputy Town Clerk Jane Fuller 18 Town Finance Director Robert Weddigen 19 Town Planner Ian Cordwell 20 Town Building Official Mike Baxley 21 Town Utility Director Jim Kaylor 22 Town Engineer George Everland 23 Public Works Supervisor Tyler Thurman 24 25 Mayor Bunch: Okay, six o'clock. I guess we are going to read from this Special Town Council, welcome 26 to the Special Town Council Work Session, Town of Cave Creek, Arizona, Monday, June 11th. The roll, 27 please. 28 29 Jane Fuller: Mayor Ernie Bunch. 30 31 Mayor Bunch: Here. 32 33 Jane Fuller: Vice Mayor Ron Sova. 34 35 Vice Mayor Sova: Here. 36 37 Jane Fuller: Councilmember Susan Clancy. 38 39 Ms. Clancy: Here. 40 41 Jane Fuller: Mary Elrod. 42 43 Jane Fuller: David Smith. 44 45 Mr. Smith: Here. 46

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47 Jane Fuller: Eileen Wright. 48 Ms. Wright: Here. 49 50 Mayor Bunch: You didn’t ask if Tom was here. [laughs] 51 52 Jane Fuller: Tom McGuire. 53 54 Mayor Bunch: Absent. Oh, looks like we are going to do Pledge of Allegiance. Let's see, who am I 55 going to pick on? Dr. Smith? 56 57 PLEDGE OF ALLEGIANCE 58 All those in attendance then recited the Pledge of Allegiance, at the lead of Dr. Smith. 59 60 Mayor Bunch: All right. General agenda item. 61 62 ACTION ITEMS: 63 A. General Agenda Items 64 1. PRESENTATION BY THE FINANCE DIRECTOR AND TOWN MANAGER 65 CONCERNING THE FISCAL YEAR 2018-19 BUDGET UPDATE: TRENDS, 66 ASSUMPTONS, NUMBERS, CHALLENGES AND PRIORITIES. COUNCIL 67 DISCUSSION WITH DEPARTMENT DIRECTORS REGARDING PROPOSED 68 DEPARTMENT BUDGETS AND PROPOSED CAPITAL IMPROVEMENT PROJECTS. 69 70 Ms. Dyrek: Mayor, Members of Council, we have a proposed draft budget for discussion, review and 71 Robert has prepared an overview, like a PowerPoint presentation, giving an overview of the budgets and 72 assumptions and specific large programs that are in the budget and how it is laid out. So, following that, 73 there will be questions for Robert, in general. We do have the Department Directors available for 74 specific questions to their department budgets, but we also have prepared, in particular, the capital 75 programs that are large in dollar amount. So, Jim Kaylor, for Utilities and both Tyler and George 76 Everland for Public Works will address an overview of what the program is included in this fiscal year 77 budget. So, we can kind of touch on that because there are some large numbers programs, projects in the 78 budget. So, with that, if we could start with Robert and go through a PowerPoint. Do you want to have 79 some copies made of that, this? Well, it is hard in this setting to look at that. I could have someone run 80 some copies. 81 82 Mr. Weddigen: Sure. 83 84 Ms. Dyrek: Is it the same as this? Did you make any changes? 85 86 Mayor Bunch: I should have brought my binoculars. 87 88 Councilman Smith: Is it shorter than the general plan? 89 90 Ms. Dyrek: It is several pages. 91 92 Councilman Smith: Oh, thank you.

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93 [laughs] 94 95 Ms. Dyrek: Sometimes it is easier to look at a piece of paper than trying to read the, focus on the, if you 96 are like me, I have progressive lenses and… 97 [laughs] 98 99 Mayor Bunch: The beauty is you can look down the road and just use your eyes and look down at the 100 speedometer at the same time. 101 102 Ms. Clancy: It is the lights that are reflecting the colors, and its not big enough and it’s in a bad location. 103 That’s just a few things that are wrong. 104 105 [inaudible background conversation] 106 107 Ms. Dyrek he is going to see if he can print black and white. 108 109 Ms. Clancy: Well if it’s in here I guess it doesn’t matter. 110 111 Ms. Dyrek okay, he just sent it to the printer. Yeah, and it is in black and white, so it should print 112 quickly. It's okay. 113 114 [inaudible background conversation] 115 116 Ms. Dyrek: It should be just a few minutes. I think it is worth waiting a minute to get it. It is easier to 117 follow along. Oh, okay, alright. He said the first 2-3 slides… 118 119 Mr. Weddigen: Good evening Mayor, Vice Mayor, Council Members. This is the FY 2019 workshop. 120 We are going to go over the proposed budget. So, a budget is, basically, a, something that is not 121 appearing on that screen. 122 123 Mayor Bunch: We are going to need copies. 124 125 Mr. Weddigen: Yeah, it is going to come in a minute. Sorry, this stuff you probably don’t need a copy 126 of, really. But, um, hmm, that is interesting. There we go. So, the budget is a plan. It is a list of priorities. 127 It is a list of public needs. It determines the services and service levels. It is a proposal of capital 128 improvements for the year. It is basically a policy statement. It is all of the above. It is what is going to 129 get done in the next fiscal year. It is going to be dependent upon the budget and how it is structured, 130 essentially. So, basically, the budget process works like this. Every January we start, we prepare, I 131 prepare worksheets for the departmental use. The managers and directors of the departments complete 132 estimates of their expenditures for the year that exists, as well as the next year and revenues, certain 133 revenues for the current year and then for the next year. And then non-operational revenues, I prepare, 134 basically, the forecast for, which includes local taxes and state-shared revenues. The state actually 135 provides a projection of state-shared revenues and, unfortunately I received a revised version of state- 136 shared revenues on June 6th, which was after the date that the budget before you, the proposal, was 137 prepared. Those state-shared revenues, we're fortunate that it is higher, instead of the original projection.

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138 So, we have got a few thousand dollars more in revenue coming in that what was projected. So, that is a 139 good thing. 140 141 Ms. Clancy: So, are you saying is just a few thousand dollars? 142 143 Mr. Weddigen: Yeah, it is about $50,000 more in the four areas. We can look at that later in more detail. 144 In April and May, the management, Town Manager reviews the budget with the Volunteer Budget 145 Committee and a selected Council Members. This year's Budget Committee basically consisted of three 146 Council Members that volunteered back in early December. June… 147 148 Ms. Clancy: Did you, um, ask for people to volunteer? 149 150 Mr. Weddigen: Yeah, there was a call for anyone who was willing to volunteer for anything the future 151 back in November or December. 152 153 Ms. Clancy: I don’t remember that ever coming, because I volunteer. 154 155 Ms. Dyrek: The discussion came up when, um, there was talk… 156 157 Ms. Clancy: You don’t have to explain it if you feel that you made a yeoman's effort to get it out there 158 so that we would all know about it, then I take that. 159 160 Ms. Dyrek: It was just at a public meeting where you were deciding where you would come, what 161 committees you would be on. After that, we had Council Members come directly to us to be specifically 162 on the budget committee. 163 164 Ms. Clancy: What committee are you on? 165 166 Ms. Wright: None. 167 168 Ms. Clancy: Me either. 169 170 Mr. Weddigen: So, essentially, there are three Council Members on that and then, fortunately, because 171 of the type of committee and the fact that public notice would have to be served, and any more were to 172 be on it, I, it kind of just, three was perfect, so, that is where it was left at. In June, you know, this is 173 where we're at now, we are having workshops to review the budget, and then also, it is the time of the 174 year where we present the tentative budget for adoption. And, the tentative budget, basically, um, it is 175 the maximum amount that the town can expend, because we are operating under the home rule. And, the 176 home rule basically means whatever we adopt as a tentative budget is our maximum. Our calculated 177 maximum, based on state calculations, would be about 5 million dollars. This limit would be, uh, too 178 little to allow us to operate. So, we have to adopt a variation, which are allowed under state law of the 179 budget expenditure limitation rules. So, we have a home rule option and that allows us the flexibility to 180 budget sufficiently for the fiscal year for our needs. There are no exceptions to that, either, so the total is 181 the total. Um, so. 182

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183 Ms. Dyrek: I think we should pause and let them take a look, because this is a lot of detail with some 184 numbers. 185 186 Mr. Weddigen: Yeah, we are on slide four. 187 188 [inaudible background conversation] 189 190 Ms. Wright: Robert, while he walking around, you have here June Council Workshop to review budget. 191 May we not have another workshop? 192 193 Mr. Weddigen: Um, we have to adopt a tentative, we should adopt a tentative by June. We could get 194 away with a few extra days at the beginning of the next fiscal year, but it is, we are supposed to have 195 adopted the tentative. The tentative, at the end, just sets the maximum. If we wanted to pick any number 196 and adopt that as our tentative, we could. We could come back later with a final budget and actually 197 approve it, in terms of where that tentative total ends up being distributed, in terms of funds and 198 departments. So, on slide four, basically, these are the major sources of difference between last year's 199 budget and this year. So, one of the major things that we are doing this year in the budget in terms of 200 operating transfers is we are going to resolve the Inter-Fund balance between the General Fund and the 201 Enterprise Fund. In fiscal year '18, which is the current fiscal year we are in, the Enterprise Fund is a 202 single fund that is the type of fund called Enterprise Fund as well, so that is also its name. In the fiscal 203 year '19, what we are doing with the budget is separating out the Enterprise Fund into three separate 204 Enterprise Funds. One for Cave Creek Water System, one for Desert Hills Water System and one for the 205 Waste Water Treatment Plant. So, in those, in that separation, we are also resolving to have a transfer, 206 which is enough to absolve the Enterprise Fund of the Inter-Fund balance, due to the General Fund, with 207 the exception of the amounts that are set aside for the WIFA reserves. So, this would cover all of the 208 operating deficiencies in prior years, as well as the current fiscal year for fiscal year '19. So, that is about 209 11 million dollars. In the last year, the amount that was budgeted, um, was $1,300,000. So, that is the 210 big difference in this year's budget. The biggest difference. Again, the utilities, maintenance and capital 211 improvement's budget increased, '18 sources budget for maintenance was, and other things, was 2 212 million dollars and now it is going to about 2.6 million dollars. Also, the capital budget for '18 was 213 about 1.2 million dollars and that is going to 2.9 million dollars. That budget includes amounts budgeted 214 in all three of those new Enterprise Funds, Cave Creek, Desert Hills and Waste Water. Plus, it also 215 includes the amount that is now being budgeted to be spent from the Water Infrastructure Capital 216 Improvement Fund that was created last year at the end of the fiscal year. The amount that is being 217 budgeted to be spent out of there is essentially what was accumulated and posted last year, as well as 218 this year's accumulation, which will be posted when we close the fiscal year. Plus, all the funds that 219 would be posted in it in the year after. So, that, basically, is a million dollars that ends up being budgeted 220 for capital improvements in Cave Creek Water System. The road maintenance and construction, 221 basically, went up in the General Fund from about $273,000 to about $670,000. That is, basically, where 222 the majority of changes occur. 223 224 Ms. Clancy: But does, that include, I'm sorry, HURF funds? 225 226 Mr. Weddigen: That does not include HURF funds, which would be of equal to approximately the 227 amount that HURF is scheduled to bring in for the current fiscal year, which is fiscal year '19. Which, I 228 just, as I said earlier, I got an updated state projections for the amounts we will receive next year, and

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229 the amount we will receive is more than what is currently budgeted from the HURF fund, because of 230 that increase in the estimate. 231 232 Mr. Smith: Robert? 233 234 Mr. Weddigen: Yes. 235 236 Mr. Smith: The, 11 million, uh, that’s, isn't that basically a paper transaction that takes place within the 237 closed system? And it doesn’t create or destroy any money? It is money that is kind of shuffled around, 238 but it is in a bookkeeping way of doing it, rather than any other way. 239 Mr. Weddigen: Thank you for the question, Councilmember. Yes, that's correct. It is basically a balance 240 sheet transaction, but for the entity as a whole, but it is a transfer of, basically, dollars from the General 241 Fund to the Enterprise Fund. But again, it just, one hand washes the other, in terms of the total net effect 242 on the town. We will still have the money. 243 244 Mr. Smith: Okay. But, it is not like adding 11 million dollars to the budget or anything? 245 246 Mr. Weddigen: No, it really doesn’t count towards the expenditure limitation which we will see later on. 247 It is a separate schedule and a separate item because it is simply an inter-company, if you will, transfer. 248 It doesn’t affect the final, the net position of the town. 249 250 Mr. Smith: Now, does this relate to the, uh, what Willdan did, when they were looking at rates and 251 everything that we had been subsidizing the Enterprise Funds for a long period of time and this is 252 essentially a way of recognizing that? 253 254 Mr. Weddigen: Thank you for that question, Councilmember. Yes, it's a, it's basically an accumulation 255 of prior years’ deficiencies and in the rate study, we did not want to, essentially, burden the rate payers 256 with attempting to pay back those dollars at this point. We had carried them for, um, quite a few years. 257 So, it didn’t, it was, it's, it's managements recommendation to absolve the Enterprise Fund of the amount 258 that it owes the General Fund. 259 260 Mr. Smith: Okay. 261 262 Ms. Clancy: And that was so you could separate out the actual cost so that it would be more 263 commiserate with what we may or may not do. I suppose that it's this giant balloon that has been 264 floating out there. 265 266 Mr. Weddigen: Yes, the balloon, essentially, was created because of projections that were made and the 267 way costs were allocated in the beginning of the Town's participation in the water. And, and, and, 268 because of the lack of, uh, the cost of infrastructure of the waste water, versus the number of customers, 269 but also because the projections for customers and the projections for expenses were off when the rates 270 were created. So, essentially, we had an imbalance since 2007 that had momentum because of the uh, 271 the uh, economy collapsed. So, essentially, you know, this, it didn’t seem, um, I guess, appropriate to 272 burden future rate payers with those issues. 273

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274 Ms. Clancy: Well, just a side question. When will we be able to reconcile that mistake and get 275 something that is solid? It sounds like we won't getting, won't be getting it from them. 276 277 Mr. Weddigen: Uh, thank you for the question, Councilmember. Yeah, yes, the uh, unfortunately the, 278 there would still be, um, I believe, and of course this is going on to the rate study, which is really not the 279 scope of this, but there is still an imbalance with the waste water in terms of rate setting and the ability 280 for it to generate revenue to cover it's expenditures. Currently, it has a dedicated source of revenue that 281 is unrelated to operations and that is part of our sales tax. And, it requires that, and in addition to that, 282 uh, it may require additional subsidies now and in the future for operational costs, as well as repair and 283 replacement, as well as potential capital improvement, um, you know, depending on growth and, um, 284 basically, the condition of our system. But, uh, it, it basically has a larger capacity than what the town 285 uses and, with that, comes the greater expenses of, um, maintaining it as well as the debt service that is 286 related to it. Once the debt service is paid, it, that situation should be reversible, as long as the 287 continuing capital improvement maintenance expenses don’t equal or exceed the current debt service. 288 289 Ms. Clancy: And, uh, is this meeting open to those who are here? Or are we withholding their questions 290 until we are finished? Or can we take them as we move along, for clarity? 291 292 Ms. Dyrek: How ever the chair would like to proceed. 293 294 Ms. Clancy: Mayor? 295 296 Mayor Bunch: I'm the only one that is going to be asking questions, is other than [inaudible 20:06] 297 298 [laughs] 299 300 Ms. Clancy: And I can tell when he's got a question. 301 302 [inaudible background discussion] 303 304 Ms. Clancy: And, it might help me understand better what was, I am asking. 305 306 [inaudible background discussion] 307 308 Mayor Bunch: I don’t have a problem, that is how we did the uh, the uh, general planning meeting. 309 310 Ms. Clancy: I agree. 311 312 [inaudible background discussion] 313 314 Dr. Kerry Smith (Vice Chair of the Water Advisory Committee is in the audience): This relates the rate 315 study, that is the only reason why I'm intervening. Uh, it was ruled down in the discussions with the rate 316 study committee that first recommended that these accumulated subsidies that the town has given to the 317 Water Enterprises where the Waste Water operations and the Water Operations were making the 318 construction of rates very difficult. Basically, said that the Water Enterprise owed the Town a certain 319 amount of money, so it appeared on the Enterprise books as a debt, and it appeared on the Town's books

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320 as an asset. That we were owed that money from the Water Enterprise. Everyone involved agreed that it 321 was best to just wipe that from the books, because it was unlikely any set of rates would ever get us to 322 the point where it could be paid back. So, that's just the way I understood it at the time. However, just 323 one issue was raised, and, and can't really be addressed until the rate study, I suppose, is done. And, 324 there was a strong recommendation on the part of the Water Advisory Committee and the Rate Study 325 Committee that prices set for Waste Water Services at least cover operating costs. Which, at present, 326 they do not cover operating costs. So, that was a, that was a strong recommendation, but no action can 327 be taken on that until we, the rate study is officially completed. So, that was the only issues that bears, 328 that adjusts, essentially, I think is what Robert was, was saying, but the context for it was not, it is all 329 tied up in the rate study, basically. 330 331 Vice Mayor Sova: Mr. Smith, what, uh, what's your recollection as to what that number was for the 332 Waste Water Plant to cover expenses? 333 334 Mr. Kerry Smith: This, it was, um, several hundred thousand dollars. It was between $250,000-$300,000 335 dollars, total. 336 337 Vice Mayor Sova: Okay, I remembered $200,000, but, uh… 338 339 Mr. Kerry Smith: Yeah, it was between two and three. I think about $250,000, Ron, to bring the, the, 340 now that was not with the current budget of expenses, that was with last year's expenses. So, it seemed 341 like, at the time we were studying this, it seemed like a relatively doable goal. It was something that 342 wouldn’t be a huge shock to the, and then there was a comparison made with the, with the Waste Water 343 rates in Carefree and that wouldn’t have pushed our rates dramatically higher than what those are. The 344 case of the Water Company is if we ever tried to pay back the accumulated debt, I mean, the rates would 345 just go through the roof. So, that was viewed as impossible. 346 347 Vice Mayor Sova: Mr. Weddigen, just, just in plain language, what we are doing is writing off these 348 debts, if you will? I mean, you can call it anything, but we are writing it down to zero, and if we were a 349 real business in corporate America, we would be able to have some nice tax write-offs, but we are not. 350 So, it is just an uncollectable, deemed bad debt we are writing down to zero. And, I assume that is to be 351 in perpetuity? Without any recall to come back and assign some of that possible debt in later years? 352 353 Mr. Weddigen: Thank you for the question, Vice Mayor, um, I have actually seen those kind of 354 decisions reversed in subsequent years. It doesn’t mean that it's appropriate accounting methodology, 355 but, um, it could be that if the Town were to elect to bring it back, um, you know, through the, via the 356 Town Manager to the Finance Director, that's essentially what would happen, would be, we would, we 357 would reestablish the receivable and the, uh, the liability to whatever extent, using whatever 358 methodology that is prescribed. So, it potentially could be reversed, but we are looking for, for this 359 action is for that it, to be, forever. In terms of its impact, we, we don’t plan on bringing it back at this 360 point, um, now, it, that, that doesn’t mean that we mean that forever will imbalance not be recorded as 361 an Inter-Fund receivable, but the hope is that, the, with whatever rate structure we formulate, that the 362 rates will eventually be sufficient enough to pay back the General Fund over, um, you know, a shorter 363 period of time than what we have already experienced, which has been, you know, ten years or more. 364 So. 365

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366 Vice Mayor Sova: Is there a statute of limitations for such a write-off to where after so many years, it is 367 gone, you can't go back? Or, is it open-ended for as long as there is a Town, so the speak? 368 369 Mr. Weddigen: Thank you for the question Vice Mayor, I don’t know of any such law; however, it 370 would probably be, um, you know, it, uh, a noticeable item from, uh, the auditor's perspective, in terms 371 of how we are preparing our financial report and a simple council action to, basically, not to absolve the 372 Enterprise Fund of its past indebtedness would probably not be an item that they may agree with, in 373 terms of the impact on the financial statement. So, in that year, we would probably receive a modified 374 opinion, possibly. In that modified opinion, the impact would be, if we were to have, or be under, or be a 375 potential recipient of a Federal Grant, that might cause us to be disqualified from the Federal Grant. But, 376 other than that, I can't think of any other consequence that might occur if the Town wished to reestablish 377 the previous forgiven debt. I mean, there is substantiation to show its existence, uh, and its occurrence, 378 so there is sufficient information to do so based on whatever criteria that we set in whatever subsequent 379 year that we might want to reestablish that debt. So. 380 381 Vice Mayor Sova: Thank you. 382 383 Ms. Dyrek: Mayor, Vice Mayor, the intention is to move forward in that manner so that each fiscal year 384 when the budget is proposed, should there be, um, for example in the Waste Water Fund, so if the 385 General Fund, as it has been doing, um, is transferring funds to cover the difference in the Waste Water 386 budget, that each year, going forward, we would address that, year by year. So that there wouldn’t be an 387 accumulation of the funds. 388 389 Vice Mayor Sova: Okay. 390 391 Ms. Clancy: And then that would be taken out of the General Fund, right? 392 393 Ms. Dyrek: Councilwoman Clancy, yes, as, as we have subsidized the Waste Water Enterprise, it has 394 come from the General Fund and it would continue to do so, until, I guess the debt would be paid off. It 395 would have to be a significant change in the number of customers for additional revenue, or the debt is 396 paid off, so that the General Fund doesn’t continue to subsidize the Waste Water Enterprise. 397 398 Ms. Clancy: Is there a plan for that? 399 400 Ms. Dyrek: Pay off the debt and add more customers, yes, over a period of years. 401 402 Ms. Clancy: Okay, I believe you. 403 404 [laughs] 405 406 Ms. Dyrek: It is going to take years. 407 408 Ms. Clancy: Might take, uh, a lot longer than a few years. 409 410 Ms. Dyrek: Yeah. 411

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412 Ms. Clancy: It is going to take really a long time. 413 414 Ms. Dyrek: Mm-hm. 415 416 Mr. Weddigen: Oh, next slide. 417 418 [laughs] 419 420 Mr. Weddigen: Sorry. Thank you. 421 422 Mayor Bunch: We will start calling you Weddingden again. 423 [laughs] 424 425 Mr. Weddigen: So, this is, uh, I forgot to write down what page this is from, but this is from a page in 426 your, in your, uh, budget. It is a schedule that is in there and, basically, uh, this just shows the change in 427 total expenditure and transfers out from year to year and it is so much larger in 2019, again, because the 428 transfers out. This does include transfer, so, um, that’s, that’s the reason why it is so much larger. Now, 429 it was larger back in 2010 because some of the infrastructure for the Enterprise Fund was being 430 constructed, and so there was proceeds from loans that were being received and expenditures that were 431 related to those loans, so, uh. And, uh, this picture, which I apologize you can't see well on your screen, 432 but it is in your, in your, uh, in your book. 433 434 Ms. Clancy: Well, I have a quick question. 435 436 Mr. Weddigen: Oh, certainly. 437 438 Ms. Clancy: Based on the 2010 that you just explained, is that what's happening in 2019, infrastructure? 439 440 Mr. Weddigen: No, well, there is some small increase, well, relative to the total, sorry about that, I just 441 hope you got that, um, we are done. No, um, so there is a site, uh, it is not showing, hang on, let me get 442 it to show up on the screen. So, yeah, there is some amount that is, really increases in capital in 443 maintenance, uh, for the Enterprise Fund, as well as HURF, as we went over before, and then the rest of 444 it is, the majority of it that 10 million dollars or so in additional transfers to absolve the Enterprise Fund 445 of its debt in that current year's operating shortfall. So. 446 447 Ms. Clancy: That's going to be done until 2019? Not in 2018? 448 449 Mr. Weddigen: Yeah, yeah, in, in 2010, it was simply construction and loan proceeds that drove the 450 budget up that high, so. 451 452 Ms. Dyrek: Councilwoman Clancy, so it is fiscal year '18-'19, when will that actually occur? That will 453 occur after we close this year's budget, you make the transfers and it will be on the books. So, it could be 454 on '18 or early '19. 455

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456 Mr. Weddigen: Oh, I'm sorry, yes, any transfers are calculated, uh, post-closing. So, we, after we close 457 the fiscal year, that is when they are calculated and posted. Of course, they would never exceed the 458 amount available in the budget for the transfer, but that's, that's where, that's when it would occur. 459 460 Mayor Bunch: So, that is the $11 million plus the, uh, the… 461 462 Ms. Clancy: I would have thought it would show in the 2018, since it's part of 2018 budget, but I guess 463 not. 464 465 Mr. Weddigen: No. 466 467 Mr. Smith: No, no, the 2018 budget now. 468 469 Ms. Clancy: '18, well it is '18-'19. 470 471 Mr. Weddigen: Mayor and Council, I apologize. This, this slide is for budget numbers only. These are 472 not actual numbers. So, they are based on a projection that was made for each year. This is simply to 473 give you an idea and, in terms of the context of what has happened before, what we are doing for the 474 next. 475 476 Vice Mayor Sova: There is an issue with this, I think, that, uh, it might be a little bit misleading to the 477 general public, uh, who don’t have the, uh, vaunted expertise that maybe, uh, Professor Smith does. 478 479 Mr. Smith: Well, all of us here, of course. 480 481 [laughs] 482 483 Mr. Smith: But, it looks like, there has been a substantially more than, it says expenditures. Now, I know 484 the includes transfers is what covers that, but it doesn’t look like it if you just look at the chart. And so, 485 you know. 486 487 Mr. Weddigen: It says budget, so that's where that comes from. Thank you for the question, 488 Councilmember. 489 490 Mr. Smith: Yeah, it, well, as long as it is explained. [laughs] 491 492 Ms. Dyrek: If you change the graph to show both, what the actual expenditures are versus the transfers 493 and had two different colors, you would see over the years, what the actual transfers are. So, the blue 494 would not be so drastically different. I don't know if that is something that we can add in a different 495 color for just the transfers in the same chart. 496 497 [inaudible background discussion] 498 499 Ms. Clancy: It runs through June, July 1st to June 30th, so, it should be '18-'19, is my opinion, that’s all. 500 Mr. Smith: They never do it that way, though. 501

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502 Ms. Clancy: Uh, no, it is confusing to the customer, then. Transparency is so important. 503 504 Mr. Smith: We don’t want to make it clear. [laughs] 505 506 Ms. Clancy: We want to make it crystal. 507 508 [inaudible background discussion] 509 510 Mr. Weddigen: Thank you, Council. I am making a note to change this graph to differentiate between 511 the transfers in and the total expenditure budget on the budget column and then to add an actual column 512 which we'll do the same. So, thank you. 513 514 Mr. Smith: Thank you. 515 516 Mr. Weddigen: So, this is, uh, page six of the workshop draft of the budget, uh, I am sorry page ten. Not 517 page six, sorry, page ten. And, basically, it, it, this is the expenditure limit at the top, uh, that we are 518 seeking. It doesn’t include transfers and it's $21,534,589. Then, it shows it broken out by fund types here 519 and then the individual funds if there are funds, multiple funds within a fund type. Except, I may have 520 left out, Enterprise Fund. So, I need to add, in this graph, the Enterprise. 521 522 Ms. Clancy: It's there. 523 524 Ms. Dyrek: It’s there. 525 526 Ms. Wright: It is over on the right hand side. 527 528 Mr. Weddigen: Oh, is it? 529 530 Ms. Clancy: You can see it better in here than you can there. 531 532 Mayor Bunch: Enterprise fund, water.. waste water $12,286,198. 533 534 Mr. Weddigen: Oh, okay, yeah, it should be, it should have three different boxes that lead up to that, so I 535 apologize. I missed a, I missed adding those three boxes. It should have a Cave Creek, a Desert Hills and 536 a Waste Water Treatment, so. 537 538 Ms. Clancy: Underneath the Enterprise Funds? 539 540 Mr. Weddigen: Yes, precisely. Thank you, Councilmember. 541 542 Mayor Bunch: Does it change that $12 million number? 543 544 Mr. Weddigen: It doesn’t change the total, unfortunately, sorry. 545 546 Ms. Wright: No, but, where is H.R. employees? Isn't that an expenditure? Where is it in this? 547

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548 Mr. Weddigen: Um, administrative costs include any H.R. operational expenses because it, it's not a, 549 um, a sufficient, it doesn’t, at this point, doesn’t, doesn’t take enough time to warrant a dedicated person 550 or a dedicated department. 551 552 Ms. Wright: Got it. 553 554 Mr. Weddigen: Okay, so this is, uh, page 12 of the budget workshop book. And this shows, again, all of 555 the funds, including the three Enterprise Funds and the total amounts, uh, of revenue, uh, transfers in, 556 expenditures, transfers out, and then an assessment of beginning fund balance. So, I, I've got, uh, some 557 more slides that will kind of break it apart to different sections. So, first we are going to do the General 558 Fund. And, you can see from the General Fund, that the beginning fund balance starts out at about, um, 559 projected, $21 million, has revenues, uh, oh I'm sorry, the beginning fund balance, yes, $21 million, 560 revenues of, and expenditures, a net of $9, almost $10 million and the ending available is $11 million. 561 Then, so, and then the next section is Special Revenue Funds and we've got HURF, Sewer Improvement 562 District, Spur Cross Conservation area, trails, Parks and Trails Fund, Open Space Acquisition and then 563 the Grant's Fund. The Grant's Fund, uh, again, even though it is adding to our expenditure total, we don’t 564 expend those funds until we actually have revenue associated with it. So, until we actually receive a 565 grant that we know is going to, basically, reimburse us for any expenses or be given to us to expend, we 566 don’t actually use that appropriation authority. So, um, it is there as a placeholder. Right now, we only 567 have a couple of identified grants, uh, potential, um, and that's essentially built in the total right now, 568 with additional $500,000 in, basically, undiscovered grants, or unknown grants at this point. Uh, the 569 Debt Service Fund for Town Hall is in there, uh, that is the next section of types of funds. Uh, we used 570 to have Spur Cross Debt Service in there. We used to have Debt Service and our Sewer Improvement 571 District, um, but that's gone away, paid that a long time ago. So, that is why it is just in Special Revenue 572 Fund now, because there is no debt related to it. Capital Projects Funds, uh, since the end of last year, 573 we created, um, two, um, sorry, well, one additional Capital Project Fund, sorry, the Water 574 Infrastructure Capital Fund, which is used to pay for, uh, Cave Creek Water System Infrastructure 575 Improvements. Um, and then, uh, the Enterprise Fund, which used to be, this used to be one column, it is 576 now been separated into three columns. There we go, sorry about that, got ahead of myself. Okay, so, 577 alright, so now I'd like to go to the General Fund summary by department. 578 579 Ms. Clancy: Well, I, I have a quick question. 580 581 Mr. Weddigen: Sure. 582 583 Ms. Clancy: Um, the Spur Cross Conservation area, you said the $932,000, basically, is us paying off? 584 585 Mr. Smith: Half-cent tax. 586 587 Ms. Clancy: Yeah, that went towards, I thought Spur Cross was paid off. 588 589 Vice Mayor Sova: Spur Cross is paid off. This is the half percent tax. 590 591 Ms. Clancy: Right, that we are applying towards the items down below? Which is the Maricopa County, 592 what's it, what's it paying if it is paid off? 593

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594 Mr. Smith: Which page are you on? 595 596 Ms. Clancy: I'm on page seven. It's just, um, maintenance? 597 598 Ms. Wright: Maintenance and then… 599 600 Ms. Clancy: Is that Maricopa County, um, taking care of Spur Cross? Is that in this? 601 602 Mr. Weddigen: Okay, so the Debt Service Fund, my comment, I apologize, uh, Councilmember, thank 603 you for the question. I may have been misleading when I said, uh, there used to be more Debt Service 604 Funds, but some of the debts related to it have been paid off. The current Debt Service Fund is for the 605 Town Hall. There was a Debt Service on the Spur Cross Area. That fund is no longer needed because 606 the debt was paid. Primarily the source of revenue for the payment of that debt was property, a special 607 assessment or a property tax assessment, that was before my time and it, it, it paid, it paid itself off. So, 608 that is no longer there and there is no longer a debt for the Sewer Improvement District, which used to 609 be considered Debt Service Fund at one time because there was a related debt for that special 610 assessment, but that, too was paid off, as well. There is only one receivable that we are waiting to have 611 paid for that assessment and that is only a couple thousand dollars. So, um, that is not in Debt Service 612 anymore, that is in Special Revenue Funds. So, the Spur Cross Conservation Area Fund that is listed 613 there is an Operational Fund and it is meant to capture the dedicated sales tax for the purpose, primary 614 purpose is to facilitate. 615 616 Ms. Clancy: Okay. 617 618 [inaudible background discussion] 619 620 Mr. Weddigen: So, the Spur Cross Conservation Area Fund basically pays for the operational costs that 621 we reimburse the County for, Maricopa County Parks Department. 622 623 Ms. Clancy: Okay. So, then, my question with the $216,000, would be where are with them, with 624 regards to what we are paying? I mean, we are still moving forward with the same payments after all 625 these years, $3.5 million has been put out for someone to stand out there? I am just trying to understand 626 this budget? 627 628 Ms. Dyrek: Mayor, Councilwoman, so what was presented to Council was the additional information 629 that we finally got from Maricopa County Parks on what they actually include in the budget, what 630 they’ve included over a period of years and, um, what they're proposing for this next fiscal year. There 631 are a couple of areas that we did not get the exact, um, dollar amount and information on what had to do 632 with some law suits, Spur Cross Ridge. We never received from them the exact amount of the law suit 633 and what our proportionate share was that we paid for, um, over the years. There was another law suit 634 that pertained to the Water Rights of, uh, the land there and that goes all the back to the company 635 hauling water, bottling water from the spring, Seven Springs, up there that flowed into there. So, they 636 have come to a conclusion on that particular law suit that was, uh, they put their attorney in touch with 637 our attorney and I haven't heard anything on that. The other bigger issue had to do with their cost 638 allocation that they began doing of their overhead of the County Administration and, uh, nowhere in the 639 IGA did, uh, the Town Attorney, or I, see any specific mention of how they would allocate those funds

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640 to the Town for the Spur Cross Park. They just began doing it several years ago. So, we've asked them 641 for the allocation of what is the total cost? What percentage is assigned to the Town? How do we come 642 up with that number? We don’t have, uh, specific information on that. And then, additionally, what was 643 provided in the, um, Spur Cross budget that they came up with. They came up with, uh, some specifics 644 of what they have been budgeted for in there and it included an MCSO Deputy position, which was 645 originally three park police that were dumped into that and paid, it's down to one deputy. Uh, we'll be 646 addressing the MSCO IGA at the next Council meeting and, uh, when we asked for that to come out of 647 the Spur Cross, uh, the Sheriff's Office is insisting that be included in a budget in one place or another. 648 But, if they move it to the Spur Cross, or from, out of the Spur Cross, into the MCSO budget, they're 649 going to increase it because the calculation doesn’t include what they allocate as the supervision, the 650 percent allocation of that Deputy to all of the Supervisors that is included in the MCSO IGA and the 651 way they calculate. So, our suggestion was just to remove what we already have in IGA with MCSO for 652 coverage, why are we paying again for another officer. Neither one want to remove it. 653 654 Ms. Clancy: Well, sounds like a law suit from me, to me, for recovery. 655 656 Ms. Dyrek: And that is $110,000 in, in the, uh, Spur Cross budget. 657 658 Ms. Clancy: Well, there needs to be some, [laughs] we need to get better clarity on this and not accept 659 what they are saying, because, if that is going to be the case then they’re going to have to have, in my 660 opinion, a dedicated schedule that that Officer will be there 24 and 7, because the problems are in the 661 evening, and nobody is going down there. I don’t think I have problems during the day. I think I have 662 problems at night. 663 664 Ms. Dyrek: And those are the issues that we addressed… 665 666 Ms. Clancy: If they want to do that, then they have to have a very formal schedule that shows they are 667 going out there, that they personally take the calls and it doesn’t go downtown and people are being told 668 this is closed, we've got to send somebody out. And that we have to have our contracts in place, what 669 our expectations are, from much of what we've done in the past, we, we don’t seem to know how to do 670 that, we just kind of shut our mouths and do it and we accept that everybody wants us to do. So, um. 671 672 Ms. Dyrek: Again, that was one issue that we made clear to MCSO staff, last Friday and we'll be 673 discussing that coming up at the next, uh, Council meeting. Because, that is part of their IGA. 674 675 Ms. Clancy: We need a contract attorney to sit down, who understands. 676 677 Ms. Dyrek: He was with us. He was in the meeting. 678 679 Ms. Clancy: And, who is he? 680 681 Ms. Dyrek: Bill Sims. 682 683 Ms. Clancy: Well, I need a contract attorney, not a municipal attorney. So, anyway, I think that is 684 something that should be brought to Council and that we should probably make public, because the 685 transparency is, um…

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686 Ms. Dyrek: It will be on the agenda on the 18th. 687 688 Ms. Clancy: That will be fine, then. So, this is not necessarily in solid, in, okay. 689 690 Ms. Dyrek: No. 691 692 Ms. Clancy: Just want to make sure, it could go up. 693 694 Ms. Dyrek: The Spur Cross will not go up. 695 696 Ms. Clancy: If it is allocated to that, sure it's going to go up, if we have to pay it. Where would you put 697 it? MCSO? 698 699 Ms. Dyrek: No, it would go up in the MCSO agreement if you pull it out that Spur Cross will… 700 701 Ms. Clancy: So, MCSO would go up? 702 703 Ms. Dyrek: MCSO would go up. 704 705 Ms. Clancy: Okay. 706 707 Ms. Dyrek: However… 708 709 Ms. Clancy: And we are already paying over $600,000 for that, so. 710 711 Mayor Bunch: But, the combined, the combined number between the MCSO and the Deputy that is on 712 the, on the, on the, uh, County Parks, combine those two numbers and the number will be greater than, 713 um, the combination, as I understand what you are saying, because they allocate it differently as far as 714 overhead on the, on the, uh, law enforcement side. 715 716 Ms. Dyrek: That is correct. 717 718 Mayor Bunch: So, we're, right now we're better off the way it is then them actually moving that out of 719 there, into, into, into MSCO. 720 721 Ms. Dyrek: Right. Well, our argument was, why are we paying for it? 722 723 Ms. Clancy: Period. 724 725 Ms. Dyrek: At all. We already have a contract for Law Enforcement Services and you are responding. 726 727 Mayor Bunch: Right. 728 729 Ms. Dyrek: We don’t have a dedicated, uh, Park Police, or a Deputy out at Spur Cross, what we see, you 730 know, at 40 hours a week, dedicated to being out there. 731

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732 Mayor Bunch: Yeah, yeah, yeah. 733 734 Ms. Clancy: So, we have to fight it. We can't continue this, these deals that obviously, I haven't seen a 735 contract on, on anything, other than what they keep giving us. And $3.5 million over these last years, 736 makes no sense. That is out of our budget. Those are things that we could be doing, roads and all kinds 737 of things for the people who live here. And, maybe actually get decent coverage out there. Because 738 people are tired of the parties and the kids going out there and nobody's keeping their eye on it. What if 739 they start lighting fires? Which they have done in the winter. So. If you don’t pinch the pennies, 740 someone will spend all of your dollars. 741 742 Mr. Weddigen: Okay, thank you, uh, Mayor, Council, uh this is the General Fund summary which is 743 found on page 21. And, basically, uh, I highlighted this, simply because these are the departments, as 744 most of you know, that are paid out of the General Fund under expenditures here on this schedule. It 745 basically shows the ups and downs of each department for the year. Um, and, essentially, the largest one 746 is in Public Works, which is what I identified earlier in the, uh, in the earliest slide. So, we are on page 747 21 and I am, basically, almost all the way down on the bottom right column where it says change in 748 budget as the header and then it is the fourth number from the top where it show Public Works budget 749 increasing $412,000, so. 750 751 Mayor Bunch: That's going to get some more roads fixed, based on [inaudible]. 752 753 Ms. Dyrek: If you'd like the engineer to address the major expenditures in this budget, we could do it 754 right now? 755 756 Mayor Bunch: That would be great! 757 758 Ms. Clancy: There is no 21. 759 760 [inaudible background discussion] 761 762 Mr. George Everland: Okay, thank you, Mayor, Vice Mayor and Council Members. George Overland. 763 The major expenditures for this coming year that are projected is, um, a new water truck, to replace the 764 water truck that's in very, very bad, uh, condition and that is estimated at $138,000. The, also, a 765 projection is for a backhoe, for approximately $150,000, which will be shared, Jim's offered to pay for 766 half of it, you know, and so we got $75,000, for it is going to be split between the Public Works and the 767 Utility Department. 768 769 Mr. Thurman: They have been on lease. 770 771 [laughs] 772 773 Ms. Dyrek: Right, if we, there have been leases in the past that are quite expensive and when you look 774 back at the expenditures that were made, um, we probably could have bought a backhoe for the lease, 775 the amount of time and energy and expense for leasing a backhoe. We use a backhoe regularly between 776 Public Works and the utilities and it is shared, so that’s why they are proposing a 50/50, uh, shared 777 expenditure on this budget for that. And then if I could explain then the water truck, as you recall, we

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778 brought that to Council at the last meeting and that truck was sold out from under us, so initially, the 779 water truck was in this fiscal year budget and, uh, the two Public Works work trucks, the work trucks 780 were in next fiscal year. They were able to, um, get the work trucks under, um, state contract for this 781 year, so that will come forward at your next Council meeting, assuming they are not sold out from under 782 them. There will be two vehicles from this fiscal year budget expenditures instead of the water truck and 783 the water truck then will be purchased out of next fiscal year. 784 785 Ms. Wright: May I ask, when you said you lease it, how long does it take before we would be able to, 786 like, break even? So, if we buy the… 787 788 Ms. Dyrek: The, excuse me, Councilwoman Wright, I am sorry, I didn’t clarify that. We have leased in 789 the past, we are not going to lease, we are going to purchase so that we don’t have a lease anymore, 790 because it will save us a lot of money in the long run. 791 792 Ms. Wright: Okay. 793 794 Mr. Everland: Well, the use between the two departments, the use has become an expense if we 795 continued leasing, we far exceed, you know, we could buy one for. 796 797 Ms. Wright: That was, that was my question, thank you. 798 799 Mr. Everland: Right. The, um, road improvements that are proposed are, um, complete overlay of Spur 800 Cross Road. It is estimated about $670,000 total. $320,000 of that would come from our, uh, budget and 801 the approximately $350,000 from, uh, HURF funds. Uh, we also, we just finished paving the major 802 streets in Saguaro West, 52nd Street and, uh, Rifle. And, we had hoped to do them this past year, but 803 there wasn’t sufficient funds to do that and Schoolhouse. So, we put in $100,000 to try to do the rest of, 804 uh, the streets, we are not going to do it, uh, um a mill and pavement on those cul-de-sac streets, we 805 would do like a chip and seal pavement over-top of that, uh, which we put in $100,000 to finish all of 806 Saguaro West. Um, the only other road, substantial road is the connection between Military Road and 807 Skyline, which we put in there $20,000 for that. A lot of that work will be done by some of own forces 808 and things like that that we are doing. And that is where the backhoe, again, would come in quite, you 809 know, quite useful. That is basically our, our major capital expenditures. Uh, the rest of the expenditures 810 are, basically, fuel and oil and supplies, um, we do have, uh, I think it's for four speed radar signs, um, 811 about $17,000 for those signs. Um, and that is the major ticket items. 812 813 Mayor Bunch: Is Bella Vista one of them you were looking at? 814 815 Mr. Thurman: We're getting prices on that right now. Um, I haven't gotten any back to see how much 816 that is going to cost. 817 818 Mayor Bunch: Are we good? 819 820 Ms. Dyrek: If I could ask Tyler to clarify on the Spur Cross Road where, where that falls in the, uh, the 821 road maintenance? 822

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823 Mr. Thurman: Um, that is actually for, it was scheduled for this fiscal year along with Schoolhouse, but 824 we did not have enough funds to do both, not even close. 825 826 Mr. Everland: We kind of wanted to wait until we could do all of Spur Cross, rather than just do half, do 827 part of it and then do the other part, so, we kind of just switched priorities a little bit, so we could try and 828 do all of Spur Cross in the next fiscal year. 829 830 Ms. Dyrek: And then in terms of the large, um, uh, pavement management program, um, projects that 831 you have, this is the, this would be the last of the very, uh, expensive, high priced projects for some 832 time? 833 834 Mr. Thurman: Yes. 835 836 Ms. Dyrek: These have been put off, for years? 837 838 Mr. Thurman: Yes. 839 840 Ms. Dyrek: What was it, when was it actually due? 841 842 Mr. Thurman: This would have been the last, 2018 would have been the last year that we, uh, would 843 have done the, I think it was the five year plan. Um, they would have all been done and then for future 844 years, it will just mainly be, um, much smaller maintenance projects, but we had to do a lot more miles 845 of roadway with the amount of money that we are going to have. 846 847 Ms. Dyrek: Okay. 848 849 Ms. Clancy: I just had a quick question for you. 850 851 Ms. Dyrek: Mm-hm. 852 853 Ms. Clancy: In here, I, I only see $75,000 for the backhoe, 50%? 854 855 Mr. Everland: The other would be in the Utility Department's budget. 856 857 Ms. Clancy: Okay. I didn’t know that. Because, I have got to believe, it is not $75,000 for a backhoe. 858 859 [laughs] 860 861 Mr. Everland: Okay, thank you. 862 863 Ms. Clancy: I'm guessing we are done with this, since I'm not finding it here. 864 865 [inaudible background discussion] 866 867 Mr. Weddigen: Mayor, Council, the next slide, um, sorry, I'm not there yet, is, still not there, sorry, is 868 Water Infrastructure Capital. As I had indicated in the beginning of the discussion, or my presentation,

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869 that, uh, for, fiscal year 2019, $1,000,000 was being slated to be spent from the fund. Um, and that is 870 quite a bit more than, uh, budget authority that existed in the prior year. Basically, that includes revenues 871 that were received in fiscal year '17, '18 and what is going to be received in fiscal year '19. Uh, again, 872 that is for capital improvements in the Water Enterprise Fund. So, simply, basically, taking, um, a list of 873 items off of a schedule that was prepared, uh, for this purpose, uh, approximately equals that amount. 874 And, so, there might be a little bit of a, uh, an amount leftover when considering these projects, but any 875 amount leftover would be spent on other projects which are basically identified in the budget for, uh, 876 Cave Creek Water System. Uh, so the, we do have a schedule for, uh, the capital improvement, yeah, 877 sorry, give me just a second to pull it up here. There it is. So, bring it over. Hopefully, you can see at 878 least part of it. Okay, make it big and then bring it over. Okay, it is actually hard for me to see that 879 screen as well, so I apologize for my visual problems. 880 881 Ms. Clancy: So, what page would that be? 882 883 Mr. Weddigen: So, this isn't included in anything that I've shown you so far. This is a separate schedule 884 that was prepared. So, the first year, um, basically. 885 886 Ms. Clancy: What page is it in what you gave us? 14? 887 888 Mr. Weddigen: Yes. 889 890 Ms. Clancy: It is 14? I can't see it. 891 892 Mr. Weddigen: Well, actually that's the slide, 14, but the page is Water Infrastructure Capital 893 Improvement. 894 895 Ms. Clancy: 95? 896 897 Mr. Weddigen: It starts on page 91 and is on 92. 898 899 Ms. Clancy: Okay. 900 901 Mr. Weddigen: And then in addition, we would also look at the Cave Creek Water System Fund, which 902 starts on page 95. 903 904 Ms. Clancy: Right, right. 905 906 Mr. Weddigen: As you indicated. And, the actual for capital, being on page 99. So, we look at page 92 907 and 99 together in reference to the schedule, which I am about to bring up here. There we go. Alright. 908 So, essentially, essentially, this breaks every capital improvement, uh, considered between the years 909 2019 and 2023, and the total that we are looking for, uh, that is in the Water Infrastructure Capital 910 Improvement Fund, in terms of what it will cover, are these projects that are highlighted here. I believe 911 the, yeah, yeah, so those approximate, would approximate what's in the fund. Any leftover, again, would 912 go toward other Capital Projects in part or in whole that were completed in the year. First, this money 913 would be spent and then money would be spent out of Cave Creek Water System. So, the remaining 914 projects would be, amounts that in the water, um, sorry, in the Cave Creek Water System Capital budget.

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915 Ms. Clancy: And what page is that on? 916 917 Mr. Weddigen: The Cave Creek Water System is on page 99. 918 919 Ms. Clancy: Okay, it’s a different format, though. 920 921 Mr. Weddigen: It's the section, yeah, it’s the section, actually some of these dollars would be in 922 maintenance, so it is kind of spread out, but essentially, uh, maintenances under services and then, um, 923 Capital is a section unto its own towards the bottom of the page. So, those totals, plus what's budgeted in 924 Water Infrastructure Capital, uh, would be, uh, basically, the amount that is in column one of this 925 schedule, which is a two page schedule. Basically this page and this page. That is the $1,560,000. 926 927 [inaudible background discussion] 928 929 Ms. Clancy: We are looking at the Cave Creek Water System and the bottom line is almost $6,000,000 930 dollars. From $4,000,000 to $5,900,000. Expense totals at the bottom. Which, these don’t match. So, I'm 931 not sure where you… 932 933 Mr. Weddigen: But yeah, it isn't a one to one relationship, you have to, unfortunately, bring in more 934 numbers. So, some of, some of the, what we consider for this schedule is maintenance, which is in 935 Maintenance, under Services, but also, parts of it are, are, are under Capital and under Water 936 Infrastructure side for ease of display, it's all, whatever I highlighted earlier is italicized, is what is being 937 done out of the was Water Infrastructure Capital Improvement Fund. These amounts here may, may be, 938 may be maintenance, but it is all under Capital, in the Water Infrastructure Capital Improvement Fund. 939 So. 940 941 Ms. Clancy: So, where is that for me to look at? 942 943 Mr. Weddigen: It's right in front of you. It's on the screen. I apologize. It's on the screen, in terms of 944 what the Capital Projects are being done. 945 946 Ms. Clancy: Can I get a copy of that? 947 948 Mr. Weddigen: Yeah. 949 950 Ms. Clancy: Because, it is starting to, for me, to get extremely convoluted. I am going to page 99 in the 951 book, I'm looking over here at Water Infrastructure Capital, this is so blurry it is difficult, even with 952 glasses on. That is completely different and where could I find that, that you are talking from? Or, have 953 you made a completely different page that you are trying to explain all of this on that I can't see? 954 955 [inaudible background discussion] 956 957 Ms. Clancy: This doesn’t match. 98 to 99 to [laughs]. I cannot find in all of these pages anything like 958 that. But, I can tell you they're expensive. Millions and millions and millions of dollars. What am I 959 supposed to take later? 960

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961 Mr. Weddigen: Thank you for the question, Councilmember. We are going to print these for you so you 962 can see them in person and up close. So. 963 964 Ms. Wright: Jim, on page 91, while we are waiting for those to be printed, you’ve got your notable 965 expenditures. Are these accurate? I mean, are you doing the emergency interconnect? Are you doing all 966 of these things here, or just some? 967 Ms. Clancy: I looked at that, too. 968 969 Mr. Jim Kaylor: You, you, I'm going to, I have to get closer. 970 [laughs] 971 972 Ms. Clancy: Well, it's right here. 973 974 Ms. Wright: It's page 91 on this page. 975 976 Ms. Clancy: No, inside, oh, they are both, here, take a look right here. 977 978 [inaudible background discussion] 979 980 Mr. Kaylor: Well, the interconnect, that fund, that amount of money was left in there because we were 981 still researching that. 982 983 Ms. Wright: Correct. 984 985 Mr. Kaylor: That would be, basically, just probably the cost of an initial study. 986 987 Ms. Wright: Okay. 988 989 Mr. Kaylor: It wouldn't be, uh… 990 991 Ms. Wright: Cause you didn't, you were indicating you didn’t think that was a valid, okay. 992 993 Mr. Kaylor: I don’t think it's, I don’t think it's a viable way to do it. 994 995 Ms. Wright: Okay, and then I see you just have two pumps. Are these the pumps you wanted all three of 996 them? 997 998 Mr. Kaylor: These, these were, these were what we were going to put in this year's budget. We, we have 999 four of them. 1000 1001 Ms. Clancy: Right. 1002 1003 Ms. Wright: Oh, okay. 1004 1005 Mr. Kaylor: But, well, well we have four, but then we have the CAP metering station that has got to get 1006 upgraded also.

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1007 Ms. Wright: As well. 1008 1009 Ms. Clancy: Right. 1010 1011 Ms. Wright: Okay. 1012 1013 Ms. Clancy: I, I remember the meetings. 1014 1015 Mr. Kaylor: That is the 375. 1016 1017 Ms. Wright: So, you are starting with this? 1018 1019 Mr. Kaylor: Yeah. 1020 1021 Ms. Wright: Okay, thank you. 1022 1023 Ms. Clancy: And that was your costs. 1024 1025 Mr. Kaylor: Right, that is money we, that is money that goes to CAP. 1026 1027 Ms. Clancy: And if, uh. 1028 1029 [inaudible background discussion] 1030 1031 Mayor Bunch: This has even got the colored boxes like we were doing. 1032 1033 Ms. Clancy: Yeah. 1034 1035 Ms. Dyrek: So, along with the capital improvement projects that, uh, draft, that, uh, Jim has, has spent a 1036 lot of time, uh, getting up to speed on the direction, uh, for a utility projects, I think this is a good time 1037 for your presentation on, uh, what the capital projects are and kind of the rationale behind why you are 1038 going in this direction and, and, where we go for the future. So, he's got a PowerPoint here put together, 1039 um, that Jim is going to give an overview. 1040 1041 [inaudible background discussion] 1042 1043 Mr. Kaylor: If everyone, uh, Mayor and Council, if you could just keep that sheet in front you, because 1044 it, all the detail isn't in the PowerPoint, but can refer to that as we go through it. 1045 1046 Ms. Clancy: Okay. 1047 1048 Ms. Wright: This one. 1049 1050 Mr. Kaylor: The first, I'm sorry. 1051 1052 [inaudible background discussion]

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1053 Mr. Kaylor: Is that better? 1054 1055 [inaudible background discussion] 1056 1057 Mr. Kaylor: The, um, the first few slides are rudimentary and, and I, they are like that because I wasn’t 1058 sure who was going to be at our meeting here. So, I wanted to, I wanted to, uh. 1059 1060 Mr. Weddigen: You just scroll up and down. 1061 1062 Mr. Kaylor: Scroll up and down? 1063 1064 Mr. Weddigen: Scroll up and down. 1065 1066 Mr. Kaylor: No, no scroll. 1067 1068 Mr. Weddigen: You may have lost the connection, hang on. 1069 1070 [laughs] 1071 1072 Mr. Weddigen: Okay, try again. 1073 1074 Mr. Kaylor: Try it again. 1075 1076 Mr. Weddigen: Well, it is working for me, but, here, let me, uh, have it back, sorry. 1077 1078 Ms. Clancy: Just bang it a little. 1079 1080 Mr. Weddigen: Yeah, really. 1081 1082 Mayor Bunch: Like your high school locker. Two kicks and a bang and it opened. 1083 1084 Mr. Kaylor: That's not it. 1085 1086 Mr. Weddigen: I got it, hang on. I had to restart it, sorry. Now, just use the scroll button. 1087 1088 Mr. Kaylor: Scroll button? 1089 1090 Mr. Weddigen: Yeah. 1091 1092 Mr. Kaylor: Okay, we'll go these rapidly because you are all much well aware of what is happening 1093 here. We've got, we've got a utility budget comprised of three main Enterprise Funds and Robert talked 1094 about those. Water, Waste Water, and Desert Hills System and then, the Utilities Budget includes the 1095 Operational Costs and the Capital Improvement Cost, which are basically, uh, two separate way to look 1096 at how much, what, what's your budget for operating facilities, maintaining the facilities and then 1097 Capital Improvement Costs. So, um, in, in, Water and Waste Water Systems, there is three major cate-, 1098 there's three major operational costs that usually, uh, rise to the top. It doesn’t matter where you are at

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1099 and that is the cost of power, the cost of personnel and the cost of chemical for water treatment or 1100 chemicals for waste water treatment. In our system, we've got, uh, Waste Water, both of our plants are 1101 fairly small, but the power costs are, are considerable, even if, even though they are small. So, those, 1102 those categories still, still make sense for a small system. And then the Capital Improvement Budget, 1103 obviously, is for replacement of aging equipment, and usually what happens is you have an asset 1104 management program. You’ve got all the assets in your system, all the pipes, all the valves, etc and 1105 when you buy those new, they enter in a new asset management program and then you track those of a 1106 period of years for replacement. And so, the Capital Improvement Programs, um, in, uh, include the 1107 replacement of aging equipment. Um, they also include the necessary addition to all operational systems 1108 and, uh, because of growth and equipment improvements that provide for long term efficiencies. For 1109 example, if you have pumps and motors that don’t have variable frequency drives, you could replace, 1110 uh, uh, uh, um, fixed motor with a variable frequency drive and realize, um, savings in power over the 1111 operation, over, certainly over 20 years. 1112 1113 Ms. Clancy: And is that what we have? 1114 1115 Mr. Kaylor: We don’t have many of those. 1116 1117 Ms. Clancy: Okay. 1118 1119 Mr. Kaylor: All of our, CA [laughs], all of our CAP pumps are not variable frequency drives. 1120 1121 Mayor Bunch: Does APS still offer, uh, money back when we, when we replace those? 1122 1123 Mr. Kaylor: I don’t know that because, I, I've been gone for six or seven years. I remember the program 1124 you are talking about. I haven't checked into that yet. 1125 1126 Mayor Bunch: Yeah, because the ones we have, I've been pushing for those for, since we bought the 1127 system. 1128 1129 Mr. Kaylor: Right. 1130 1131 Mayor Bunch: You know, every, any, every time we'd, we'd replace a pump, I think the question is do 1132 we update or not? 1133 1134 Mr. Kaylor: Exactly. 1135 1136 Mayor Bunch: You know, so. 1137 1138 Mr. Kaylor: Yeah, it would be, there, there are certainly, uh, ways to save power with the VFD's. 1139 1140 Mayor Bunch: Yep. 1141 1142 Mr. Kaylor: And, typically you have a CAP budget that looks at, probably, not less than five year, um, 1143 in this, this case, I didn’t look at five years out, because you saw the number, it was 1.5 million dollars. 1144 [laughs] So, we didn’t want to scare anybody off. So, we will just do one year at a time. But, you do the

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1145 five year capital improvement projects plan because you've got to have a methodology for funding and 1146 rate setting, ultimate rate setting. And then, projects can be funded from reserve funds if you have them, 1147 or a long term financing also. 1148 1149 [inaudible background discussion] 1150 1151 Mr. Kaylor: I wanted to bring up the fact that, uh, the Town of Cave Creek isn't really different than any 1152 other municipality. 1153 1154 Ms. Wright: Yeah, it is. 1155 1156 Mr. Kaylor: The Waste Water and Water Operations are very similar, they are smaller, but the, the core 1157 product is the same and you have to have, um, the right group of people operate it, the right group of 1158 people to maintain it. So, when you look at a system our size, many people think, well it's just a small 1159 system, well, it's relative, it doesn’t really matter. You have all the components of a big system, just less, 1160 less equipment, but you still have the, the uh, operational maintenance and, uh, long term, um, planning 1161 to look at. In our case, the, the treatment plant and the water delivery system has been in operation for 1162 over 20 years and to be frank, the normal, the normal preventative maintenance had not been done, has 1163 not been done. Um, and that's why when I went in to this capital improvement project budget, I, I, I took 1164 a lot of the projects, there were other, there were many, many projects in this capital improvement 1165 projects. Some have been carried over for the last seven years. Six or seven years. Some of those were 1166 not, in my opinion, critical components, and so I took, I took, what I thought was a critical component 1167 and lumped them into these projects that you see under the 2019 budget. So, if you have, if you've got 1168 that in front of you, we could talk about that now. 1169 1170 Ms. Clancy: Sure. 1171 1172 Mr. Kaylor: The, uh, well the big ones, anyhow. 1173 1174 Ms. Clancy: Sure. 1175 1176 Mr. Kaylor: Item 21 on that page is a CAP pump station, um, and that's upgrades to the vault and an 1177 expansion in the, in, in the, we, it's required by the CAP. For the last four or five years they have sent 1178 letters. At, at one point in time, it was, it was built, but it was not built to their normal standard. And so, 1179 that $375,000 is, we talked about this at the budget subcommittee, that is not, that's, that's their cost to 1180 engineer, design, inspect the whole thing. It is just a basically a check that we would have to write to 1181 CAP for them to put this station into the, what they would consider to be their normal functional, um, 1182 vault. And then, each of the, um, pump station upgrades, um, would, would take our CAP pump stations, 1183 out actual pump stations, and, um, put them into a situation that I feel would be more realistic from a 1184 operation and maintenance perspective. And, I've got some pictures we will see later, but. Um, this 1185 $350,000 may be, uh, uh, too high, I don't know. It is going to take some engineering to figure out. 1186 They're all confined spaces, you'll see in the pictures. And, and, what really needs to happen is, is we 1187 need to look at, do we have some land? And if we have some land, can we, can we take them top off of 1188 that pump station and, and make that, um, uh, an area that could be maintained and operated and 1189 inspected on a week to week, day to day basis. It is very difficult to get in there and, and we will look at 1190 the pictures and you will be able to see that. So, there's, there's expansions for those, um, and then, uh,

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1191 the pipeline, Pipeline Replacement Projects for Nevermind Trail. I'm not that familiar with that one, but 1192 there's money in there for that. Um, I've also got, on the next page, um, we have, we have liquid, we 1193 have chlorine that is fed to the treatment plant, uh, at the treatment plant. That chlorine goes into our 1194 tanks. It is pretty well mixed when it is coming out of the treatment plant, but by the time it sits in the 1195 tank for three or four days, it stratifies. So, what we've got is a high chlorine residual at, uh, typically at 1196 the top and then over the few days it stratifies and we have low chlorine residuals coming out of the 1197 bottom. So, we've got a, we've got a federal law that requires we can't have less than a 0.2mg per liter. 1198 And so, the only way for us to do that, at this time, is to really flex those reservoirs up and down, which 1199 isn't a bad idea, it's just difficult to do sometimes because the water demand. So, we've got some liquid 1200 chlorine systems that, uh, we want to, uh, be put in the capital improvement projects to basically mix 1201 those tanks, in, install, um, some liquid chlorine, a liquid chlorine feed system in Rockaway and then 1202 also to secure that Rockaway tank, um, with some fencing and cameras. So, those are important, uh, I 1203 believe. 1204 1205 Ms. Clancy: Where’s Rockaway? 1206 1207 Mr. Kaylor: Uh, Rockaway is. 1208 1209 Ms. Clancy: Sounds like it's away. 1210 1211 Mr. Thurman: It is, um, Echo Canyon and Fleming Springs. 1212 1213 Ms. Clancy: Echo Canyon and Fleming Springs. 1214 1215 Ms. Wright: It's in Charlie Spitzer's backyard. 1216 1217 Mr. Kaylor: Yeah, they are 2.2 million gallon tanks. 1218 1219 Ms. Clancy: Oh. 1220 1221 Mr. Kaylor: So, with that, let me go to the next slide. So, what's the focus? The focus, the focus, uh, is, 1222 is basically that, um, these high, these what I call the high priority projects, there's a lot of other projects, 1223 um, SCADA is in there, but SCADA is part of a capital improvement, every place you see SCADA in 1224 here, it's all been lumped into the big SCADA project, phase one. So, SCADA is a high priority also. By 1225 the way, if you'll notice on, on uh, page two of three of the Water System, there's, there's uh, the Cave 1226 Creek Water System detail. There, in the, uh, 2018 actual expenditures, the projection expenditures for 1227 overtime is $108,000. 1228 1229 Ms. Dyrek: Hold on, hold on. Let me tell them 1230 1231 Mr. Kaylor: Yeah. 1232 1233 Ms. Dyrek: Let me tell them the number in the budget. Uh, it is page, page 99, up under, uh, personnel 1234 costs, overtime. 1235

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1236 Mr. Kaylor: Overtime. So, if you look at that overtime fee, figure that's $108,000 in one year. Did I read 1237 that right, Robert? 1238 1239 Ms. Dyrek: Yes. 1240 1241 Mr. Weddigen: Yes. 1242 1243 Mr. Kaylor: Um, the, we anticipated the entire SCADA project will cost about $250 to $275. When that 1244 project is complete, about 80% of that overtime should go away, because all of that, this overtime is 1245 required because we can't physically see the treatment plant. We can't physically see the reservoirs. We 1246 can't physically see the pressures. And so, because that, we have to, we have to have people at that site 1247 to make sure that everything is operating properly. And so, it's, it's a big number, that, that $250- 1248 $275,000 for the SCADA will probably pay itself in less than three years. It's, It's a, will make a big 1249 difference. It also will allow us to, uh, operate the plant more efficiently. We will be able to start and 1250 stop the plant, seasonally change the schedule, um, watch the plant from a laptop, etc. It will, it's uh, 1251 opens a window of opportunity for operation. Now we have four treatment units. The four treatment 1252 units at the plant that we're, um, the earliest one was installed, I believe, maybe mid 80's, I'm not 1253 positive of the dates, I knew that two months ago, but in any case, uh, they are approaching, you know, 1254 some of them are over 20 years, and so, we are going to spend $100,000 per treatment unit, tear them 1255 down to their basic skeletal framework and rebuild them from the inside out and then after we do that 1256 with all four of them, they'll be good for another 15, I wouldn’t go 20 years, I, I think I would look at 1257 those things again in another 10 or 15. 20 years is a long time. Um, so that money is basically putting all 1258 four of those units back into as new conditions. Sand blasting the units, etc. 1259 1260 Ms. Clancy: Um. 1261 1262 Mr. Kaylor: Yes. 1263 1264 Ms. Clancy: So, where is that, is that? 1265 1266 Mr. Kaylor: Um, that is. [laughs] 1267 1268 Ms. Clancy: It's not on here. 1269 1270 Mr. Kaylor: It's, it's in the, let's see, is that one that's… 1271 1272 Ms. Dyrek: On page 99, where, um, the far right column says repair four Trident units, that's the unit 1273 he's referring to, under maintenance. 1274 1275 Mr. Kaylor: Yes. Right. It's not a capital improvement, it is a refurbishment of existing equipment. 1276 1277 Ms. Clancy: There is a lot here to look at. 1278 1279 Ms. Dyrek: Look at the far right column. 1280 1281 Ms. Clancy: I can see it.

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1282 Ms. Dyrek: And it says the four Trident units. That's the line, there. 1283 1284 Mr. Kaylor: It's pretty small, isn't it? 1285 1286 Ms. Clancy: Well, and it's extremely small and, um, I can't… 1287 1288 [inaudible background discussion] 1289 1290 Ms. Dyrek: It's about half way down, just repair of four Trident units, $450. 1291 1292 [inaudible background discussion] 1293 1294 Mr. Kaylor: But, that expenditure just, just so, um, you're aware… 1295 1296 Mr. Smith: It's in the middle. 1297 1298 Mr. Kaylor: Once that expenditure is done, you’ve got four units that are basically 100% brand new. 1299 1300 Ms. Clancy: And your, your thought on that is to do them over time? Or they, or this is, or they are not, 1301 because they are not in 2020 here. 1302 1303 Mr. Kaylor: Yeah, we would like to do two of those this year. 1304 1305 Ms. Clancy: But, they're not in your budget? 1306 1307 Mr. Kaylor: They're, they're in my, or did, Robert, do we have those all in one year? 1308 1309 Mr. Weddigen: Yes. 1310 1311 Ms. Clancy: I mean, I am looking at this one. 1312 1313 Mr. Kaylor: All, uh, all one year? We may be able to do that, I don't know if we are going to be able, 1314 certainly in the winter time we can probably, we've got parts coming in for one that's not, it's not oper-, 1315 out of, uh, service right now. We're going to do that before the summer is over. We can easily do 1316 another one in the fall. If, if, if it's funded, we can do all four of them. 1317 1318 [inaudible background discussion] 1319 1320 Ms. Clancy: But, it's not on the Capital Improvement Plan, as I see it here? Or is it? 1321 1322 Vice Mayor Sova: No, because it is maintenance, not capital. 1323 1324 Ms. Clancy: Oh. 1325 1326 Mr. Kaylor: Yes, it's, it's uh, it's uh, it's equipment maintenance. 1327

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1328 Ms. Clancy: Equipment maintenance. 1329 1330 Mr. Kaylor: Okay, so, in, in the Reservoir Management System, it's what I alluded to as far as, um, 1331 Neery and Rockaway. Rockaway is what we've got in the budget for, um, mixer and, uh, liquid chlorine 1332 feed systems. So, we can de-stratify those reservoirs. And then, the security is in there, also. Okay. So, 1333 here's what the Trident, Trident unit looks like, just if you are not aware of them. There's four of them 1334 over there. They all look like this. They are basically, they come, they come on the back, back of a big 1335 flat-bed. They get craned off and they get put in the building, but they're, uh, uh, a mini treatment plant, 1336 um, that sits, each one of them runs on its own, separate from the other four. And, at the end of the 1337 refurbishment, all the media will be gone, replaced, all of the, anything that's, uh, wear, wearable will 1338 be, um, redone. So, it's, it's, it probably takes, uh, we are estimating six to eight weeks to redo each one. 1339 1340 Ms. Clancy: So that is replacing all of, um. 1341 1342 Mr. Kaylor: All of the internals. 1343 1344 Ms. Clancy: All of the internals. 1345 1346 Mr. Kaylor: Right, the exterior part… 1347 1348 Ms. Clancy: So, you're not just cleaning it? 1349 1350 Mr. Kaylor: No, no, no, no. 1351 1352 Ms. Clancy: Cleaning everything that goes in? You're replacing. 1353 1354 Mr. Kaylor: No, we are taking, exactly. We are taking everything out of that, that steel shell. 1355 1356 Ms. Clancy: Okay. 1357 1358 Mr. Kaylor: And, we are sandblasting the steel shell, repainting it, getting, uh, uh, coat everything again 1359 and then rebuild it from the inside out. So, they will be, essentially be brand new. I say better than brand 1360 new. 1361 1362 Ms. Clancy: And then they are good for how long? If you take care of them? 1363 1364 Mr. Kaylor: Oh, at, at, at least, uh, I don't know think I would even look at rebuilding until 12-15 years. 1365 They have been in service for over 20. 1366 1367 Ms. Clancy: Right. 1368 1369 Mr. Kaylor: And they are in pretty good shape now, I mean, well not pretty good shape, but they have a 1370 lot of rust, etc. that's inside, so we'll just, we would have to keep, um, do more period maintenance. My, 1371 my plan would be to do more periodic maintenance, every couple of years. So, you may not ever have to 1372 go in and spend $100,000 on them. Just do a little bit at a time. 1373

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1374 Ms. Clancy: Makes sense. 1375 1376 Mr. Kaylor: Yeah. Okay. So, there's the SCADA. That's just a picture of what the SCADA looks like, 1377 but, if we had SCADA today. 1378 1379 Ms. Clancy: Looks like CAP. [laughs] 1380 Mr. Kaylor: That's, we don’t have a room big enough for that SCADA, but. 1381 1382 Ms. Wright: No. 1383 1384 Ms. Clancy: No. 1385 1386 [laughs] 1387 1388 Mr. Kaylor: If we, if we had it, we'd be able to… 1389 1390 Ms. Clancy: That's huge. 1391 1392 Mr. Kaylor: Uh, effectively monitor any, from many places, laptop, telephone, etc. And, uh, we also 1393 have, in the, in the capital improvement projects, uh, there's Rancho Manana Load Station is, um, close 1394 to capacity. So, as we grow, we're going to have to increase the capacity of that station. There's, there's 1395 money in here to do the study to outline the plan for expansion of that. We have to do that. Although we 1396 have excess capacity at the treatment plant, we need to be able to get it there. So, it has to go, out, and 1397 90% of the waste water goes through that lift station before it gets to the treatment plant. So, we have to 1398 be able to, to uh, have the capacity there to get it to the plant. And then, additional, an additional study to 1399 look at where, if we wanted some more reservoir capacity, where would that be? Where, in the system, 1400 would be the best place to site that additional reservoir capacity so that, um, if we didn’t have redundant 1401 water supply, which doesn’t look promising at this point in time, we at least could have another, uh, day 1402 or so of, of uh, reserve water in the hot summer months. 1403 1404 Mayor Bunch: Are you talking underground? 1405 1406 Mr. Kaylor: You know, it could, it, underground would cost more. The better idea would be to find a site 1407 where we could build an elevated storage, a steel tank. You could do an underground. 1408 1409 Mayor Bunch: Like in the Midwest, where they are on the four legs? 1410 1411 Mr. Kaylor: No. 1412 1413 [laughs] 1414 1415 Mr. Kaylor: No, like the Neery tank. 1416 1417 Mayor Bunch: Okay. 1418 1419 Mr. Kaylor: Yeah, kind of like the Neery tank. An elevated steel tank you bolt to the,

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1420 Ms. Clancy: The whole back east and Midwest have. Right? Those giant tanks with their names on 1421 them? 1422 1423 Mayor Bunch: Then we could get up there and spray paint and write stuff. 1424 1425 Mr. Kaylor: Exactly. 1426 1427 Ms. Dyrek: And Jim, do you have an estimate of how much water you would need in reserve to, to, 1428 work on, not just emergency supply, but sort of redundancy. How much additional storage do you see 1429 over the next few years, in terms of what, however, millions of gallons that you would store? 1430 1431 Mr. Kaylor: That's a good question, excellent question. Um, you have to weigh the cost of the additional 1432 storage with the risk analysis of your system. So, if we do all of this, if we do the capital improvement 1433 projects, we follow the plan to do the capital improvement projects, and upgrade our, our CAP booster 1434 stations, we take out a lot of risk. Because, each one of the booster stations has to be able to function 1435 effect, effectively. And again, we'll get to that picture. But, if you have, if you have booster stations up 1436 and down the CAP canal, there's, there's asbestos cement pipe that I am not worried about, if the stations 1437 are properly designed and engineered, we have very little risk. Not everybody has, um, redundancy, 1438 redundant pumps. We have, I'm sorry, I'm not, okay. Not everybody has redundant pumps, um, for all of 1439 their supply. But, right now we have a three million, we have three million gallons worth of storage, 2.2 1440 in Neery, I'm sorry, 1.2 in Neery and 2.2 in Rockaway. That's three million gallons and our summer time 1441 demand is three million gallons in a day. So, if we, if it was the Fourth of July weekend, or any weekend 1442 in July, and we were to have a catastrophic event and we had every drop of every reservoir filled, we 1443 would only have about 12 hours, or less, before we would have to start lowering pressure and notifying 1444 public, etc. So, ideally you would have at least another million gallons, million and a half gallons, um, 1445 which would give you, a, a much better risk picture because you can replace motors, you can send 1446 motors out and get them re-baked, you can call contractors to fix pipelines, but if you lost an entire 1447 pump station, you couldn’t do that in 24 hours. So, you have to minimize that risk. And the other thing, 1448 and, uh, we talked about this in the budget, um, sub-committee meeting that I'm not sure that everybody 1449 is aware that if you lose any of the four, uh, CAP pump stations, you lose them all. Any of them at all. 1450 It's, it's, they're all in series, so if you can't run one, you can't run any of them, so, it's, it, it increases your 1451 risk when you are doing it that way. 1452 1453 Vice Mayor Sova: Jim, the, the uh, planning for new tank storage. 1454 1455 Mr. Kaylor: Yeah. 1456 1457 Vice Mayor Sova: Uh, that is not in addition to, but in lieu of pursuing a hook-up with Scottsdale, 1458 wherever it is, 56th street an uh, an uh, an emergency hook-up with Phoenix at about 48th street, 1459 because that, it, from what I think I understand, would only serve as a very small segment of the 1460 residents of the population. Whereas a store, a new storage tank in the right place would service pretty 1461 much the whole Town. 1462 1463 Mr. Kaylor: Exactly. Mayor and Councilmember, um, the, if, if you, uh, in my opinion, um, emergency 1464 storage is a misnomer because emergency storage gives you a feeling that you have some kind of an 1465 emergency supply. If that emergency supply, when I talked to, to the City of Phoenix, we were talking,

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1466 uh, I said how much, and there's previous emails, that talk, when people communicated with Phoenix 1467 and, uh, they said, we might be able to give you four hours’ worth of water at four or five hundred 1468 gallons a minute. That's not an emergency supply. So, and their system is not designed to give us any 1469 more volume than that. So, that told me that we need, we need certainly more than anybody contiguous 1470 to our boundaries could give us on a, in an emergency situation. Now, if it was fighting a fire, that would 1471 be one thing, but if we had a catastrophic event on a canal or booster station, we might need 24 or 48 1472 hours’ worth of water. We can't get that from an emergency supply. So, it would be in lieu of, and if we 1473 did, if we were hooked up to Phoenix or Scottsdale, we would still spend that one to one and a half 1474 million dollars because we would have to site reservoirs and booster pumps when that water came into 1475 that site and then distribute it some place in the town. So, the cost is really not, uh, it's not any less to do 1476 that. So, let's see, where were we, oh, okay, so we're, um, the SCADA we talked about. Um, it's in 1477 progress and it's, uh, or actually a kick off meeting is next Monday. So, that project is on its way. The 1478 cellular communications, we've, we've got an emergency purchase order. The Mayor was nice enough to 1479 let us issue that to get cellular communications for the CAP booster station. Our communication 1480 between the Water Treatment Plant and the various booster stations over the years has degraded. So that 1481 when we go to start a pump, or stop a pump, and I physically watched them do this, this is the 1482 procedure. [laughs] You push the button, [laughs] you hit the button 15 times. I said, why do you have 1483 to hit the button 15 times? You see well, maybe one out of fifteen it will see it. So, you don’t want to 1484 operate a treatment plant that way. 1485 1486 Mayor Bunch: And, and while they are pushing that button, the pressure…. 1487 1488 Mr. Kaylor: The pressure is going up. 1489 1490 Mayor Bunch: Is increasing on the asbestos cement pipe, increasing the chance to blow it up. 1491 1492 Mr. Kaylor: Exactly. 1493 1494 Mayor Bunch: Yeah. 1495 1496 Mr. Kaylor: So, the cellular will take care of that. I got some word today that I originally had on the 1497 slide five weeks, but I got word today that the, um, cellular, the cellular RTU's, the remote terminal units 1498 won't be shipped until the end of the month. So, I had to add another few weeks onto the schedule, but 1499 bottom line, we are hoping to get everything up and running by the end of July. So, we will have that 1500 working for us. 1501 1502 Mayor Bunch: So then you don’t have to push the button 15 times. 1503 1504 Mr. Kaylor: No, just once, just once. We'll just have to press the button once. Which, also, results in a 1505 new way of operating a treatment plant. Because of that, because of that, um, unsure operation starting 1506 and stopping, there is a hesitancy to start and stop. It would be like if you turn the key of your car and 1507 said, well I'm not sure it's going to work, well, you might want to leave it running while you're in Circle 1508 K, if that’s the case. So, if you've got really good, really good communications, then you can say, well 1509 my tank is up, I can shut down for four or five hours and then if I need more, I can start back up, uh, 1510 efficiently. It will change the way it's operating. 1511

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1512 Mayor Bunch: We've been operating like this for quite a while. 1513 1514 Mr. Kaylor: Yep, quite a while, well, you know that. 1515 1516 Mayor Bunch: Yeah. 1517 Mr. Kaylor: So, uh, where are we at, okay, wrong way. Okay, here is what the CAP booster pump 1518 stations look like. That's um, Richard in the background and these are, this is the entrance manhole for 1519 the CAP booster station. There's four of these. 1520 1521 [inaudible background discussion] 1522 1523 [laughs] 1524 1525 Mr. Kaylor: Yeah, he could fit. I won't tell him you said that. 1526 1527 [laughs] 1528 1529 Mr. Kaylor: Um, you have to put a ladder down in there, um, there is a ladder in there, but I'm not sure 1530 the ladder in there is in, in, in good enough shape to, uh, use on a daily basis, but. The picture on the 1531 right is, uh, it was, it's a good picture because it sort of gives you that feeling of how tight it is in there. 1532 1533 Ms. Clancy: Oh, yeah. 1534 1535 Mr. Kaylor: Very tight. And there is the entire station. 1536 1537 Ms. Clancy: I feel like we've gone to 1924. 1538 1539 Mr. Kaylor: Yep. The width, the width from, the width from that light grey box on the, uh, left side of 1540 the picture over to the pipes on the right side is about, uh, six and a half, seven feet. That’s it. And, every 1541 bit of equipment down there, um, when it is maintained or replaced, has to be pulled through that 1542 manhole. Not that manhole, but there's three manholes behind it. So, everything comes and goes from, 1543 from the manholes. Additionally, when you are maintaining this, there's really no way to walk through 1544 this, so you have to physically crawl under the pipes, or physically crawl over the top of the pipes. All of 1545 that stuff is not, not, uh, the death wish, but it's a confined space. 1546 1547 Mayor Bunch: OSHA is thrilled. 1548 1549 Mr. Kaylor: It's, it’s a confined space. So, while you are doing all this work, by OSHA rules and 1550 regulations, you are supposed to be hooked up to a tripod. You are supposed to have a cable on your 1551 back, with a harness on and hooked up to the tripod. So, you can see how difficult it, it is to maintain 1552 that. So, the ideal situation would be to take those, get those out in the open, get the cover off, and, uh, 1553 be able to physically see them without crawling down in a confined space. So, why is the budget, the 1554 Utilities Operation and Capital Improvement Budget important? I think, I think we've talked about that 1555 probably too much, but there's a lot of work that has been postponed. Um, and, what this budget, I 1556 believe, will provide us with, if the Council sees fit to approve it, is it will bring us up to the current time 1557 and we have projects identified in previous years, they, they will be funded and completed. I've heard

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1558 some criticism about how are we going to, how are we going to complete these projects in a short period 1559 of time? That's why they make contractors and project managers. If the, if the funding is there, we can 1560 sequence these projects, many of them can be done in parallel, um, treatment plant stuff can be done in 1561 parallel to CAP booster stations, uh, uh, Rockaway tank work can be done, we're not, we're doing 1562 multiple projects, just in parallel. And then, we'll be, we'll be focused on preventative maintenance in the 1563 system, rather than emergency maintenance. Where when something breaks, we immediately have to fix 1564 it. We have to get into that mode so we are not, uh, chasing those emergencies all year 'round. 1565 1566 Ms. Clancy: I have a question. 1567 1568 Mr. Kaylor: Yes. 1569 1570 Ms. Clancy: Based on what you just said, um, do we have the personnel for that? 1571 1572 Mr. Kaylor: We do. 1573 1574 Ms. Clancy: Good. 1575 1576 Mr. Kaylor: We, we have personnel, we are going to have, we are going to free up about, uh, 80% of the 1577 treatment plant staff during the winter months. As soon as we get SCADA, we will have a plant operator 1578 who runs that treatment plant in the winter months from October through April, fills the tanks and then 1579 the rest of that, the rest of those plant operators will be doing preventative maintenance and projects at 1580 the plant. Richard is one of those people who has helped us out tremendously in the past three or four 1581 weeks. Um, we had, uh, a shortage of plant operators to begin with and then one of them had to get 1582 surgery on her shoulder, so, we have people to do it, we just have to, uh, efficiently schedule the projects 1583 during a period of the year when, uh, when obviously not in the three hot months of the summer. 1584 1585 Ms. Clancy: Sure. 1586 1587 Mr. Kaylor: In the off season months. 1588 1589 Ms. Clancy: Real quick, back to the one that you showed that's very difficult to get into, what was the 1590 cost of bringing it back, that up to the surface? For maintenance? 1591 1592 Mr. Kaylor: I have, I have estimated $350,000. I don’t know if that's an accurate figure. I didn’t want to 1593 tell anyone that it would cost $100,000, because I know it will cost more than that. But, somebody's 1594 going to have, an engineer has to go in there, look at this, see what would be the best option. Maybe the 1595 best option is to remove piping up to the surface? Remove the motor up the surface? I don't know. But, 1596 there's probably three or four good options to look at to get all this stuff out of a confined space, so that 1597 we can look at it, I mean, even… 1598 1599 Ms. Clancy: On a daily basis. 1600 1601 Mr. Kaylor: Exactly. 1602 1603 Ms. Clancy: Or weekly.

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1604 Mr. Kaylor: Exactly. 1605 1606 Mayor Bunch: And, the scary thing that you, the combinations we've had is if one of those floods, the 1607 motors aren't sealed against, they're not wet environment motors, you lose the entire line at that point in 1608 time. There's no water coming up, that’s pretty darn scary, when you are dealing with, with things that 1609 can fail. 1610 1611 Mr. Kaylor: Right, Richard said that about 12 years ago, or something, there was a Victaulic coupling, 1612 basically it's a coupling that goes in a pipe so if the pipe vibrates, it, it, uh, allows it to move a little bit 1613 and the Victaulic coupling did leak, and, and filled up the, uh, vault to the motor and the motor was 1614 obviously cooked. 1615 1616 Mayor Bunch: Shorted and cooked. 1617 1618 Mr. Kaylor: Yeah, so you have to pull the motor. You have to send it to a motor shop. 1619 1620 [laughs] 1621 1622 Mr. Kaylor: You send it to a motor shop, they bake it to get it completely dried out, then they recoat it. 1623 But, that takes about 36 hours, if you can get it done emergency wise. So, it, it, it's, it's a real, it's a real, 1624 um, critical item as far as the risk in the system. Yes, Carrie. 1625 1626 [inaudible background discussion] 1627 1628 Dr. Smith: I just wanted to reinforce that the Water Advisory Committee was very much concerned 1629 about what Jim is saying and I mean, we were worried about trying to find a way to address all three of 1630 the stations at the same time and would it be prudent to think about, even assuming more debt, because 1631 fixing one of them doesn’t actually reduce the risk of the other two failing. 1632 1633 Mayor Bunch: The other two, instead of three weak links, then you’ve two weak links. 1634 1635 Dr. Smith: Two weak links, right. And so, it's, um, I mean, we really appreciated his efforts to reveal all 1636 of this to us. 1637 1638 Mayor Bunch: Finally. 1639 1640 [laughs] 1641 1642 Dr. Smith: And try to get us on the right path and, um, so, I mean, I would encourage, if there is a 1643 solution, such as moving them up to consider doing as much of that all at once, as possible, as is 1644 technically feasible. I think you'd get support from the Water Advisory Committee on that. 1645 1646 Mr. Kaylor: There may be a solution that allows, engineering wise, that allows, there may be a 1647 temporary solution that gets those out of the pit and out of a, um, a confined space category, um, and 1648 then, the permanent solution could follow. I just, I am not the engineer that needs to come up with those 1649 options.

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1650 Mayor Bunch: Even a couple of right angles and a catwalk, just get them way up above where you, 1651 where you, on the catwalk you are working there, instead of being all the way down at the bottom. 1652 1653 Mr. Kaylor: Exactly. 1654 1655 Dr. Smith: But you're the person that identified them for us, thank you. 1656 1657 [laughs] 1658 1659 Ms. Dyrek: Jim, I think you could clarify, too, that bringing in the consultant, whoever gets hired, for the 1660 analysis, and then eventually the, um, design, whether it is temporary or permanent solution, that should 1661 be a, basically, a onetime cost because you are using that plan for all of them. 1662 1663 Mr. Kaylor: For all four of them. 1664 1665 Ms. Dyrek: So, there's an expense up front for the initial consultant to engineering to, you know, kind of 1666 analyze it and design. 1667 1668 Mr. Kaylor: Yeah, they are all identical. 1669 1670 Ms. Dyrek: Right. 1671 1672 Mr. Kaylor: So, once you design one and come up with a solution for one, you can implement for all of 1673 them, and, what you would do is you'd replace those motors, you'd put variable frequency drives in 1674 there. So, you'd have some flexibility on how fast or slow you wanted to run the plant. 1675 1676 Mayor Bunch: A couple of Town Manager's ago, I asked about VFD's and the, uh, the uh, the head of 1677 the, uh, utilities was instructed by the previous Town Manager, well, previous, previous, previous Town 1678 Manager, telling me that they didn’t save any money. 1679 1680 Mr. Kaylor: Oh, no, they save money. 1681 1682 [laughs] 1683 1684 Vice Mayor Sova: Jim, is it possible that, uh, you, you, you'd admitted that it would cost at least 1685 $100,000, you know, without question. And your numbers of $350 and $375 may be high, that they, 1686 they would come down enough to include the third one, within this, uh, what is it, three, six, seven 1687 hundred and twenty five thousand dollar number for these two? Or would that be too much wishful 1688 thinking? 1689 1690 Mr. Kaylor: Mayor and Councilman, the reason I put that number in there is because, any contractor 1691 who would do this job, when the engineering solution were on paper and specifications were down, any 1692 contractor who would bid on this job, would probably need to put in, um, it would be, it would be a 1693 construction activity that required that the booster, the pump station stayed in service. 1694 1695 Vice Mayor Sova: Yeah.

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1696 Mr. Kaylor: So, there is going to have to be, probably some kind of a bypass. 1697 1698 Vice Mayor Sova: A bypass, right. 1699 1700 Mr. Kaylor: And, that will drive the price, I don't know if the $350 is correct, but certainly there is a 1701 percentage of that construction cost for redundancy while the construction is going, taking place. 1702 1703 Mayor Bunch: Is there valves upstream and downstream of the pump in the vaults? Each direction? 1704 1705 Mr. Kaylor: Yes. 1706 1707 Mayor Bunch: Okay. 1708 1709 Mr. Kaylor: In the vault. 1710 1711 Mayor Bunch: So, yeah, you, you can shut it off. 1712 1713 Mr. Kaylor: Oh, absolutely. 1714 1715 Mayor Bunch: Well, obviously, because we're pulling the pumps. 1716 1717 Mr. Kaylor: We are pulling the pumps, yes. There's no valves in between the stations, but there's valves 1718 certainly in the stations. 1719 1720 Mayor Bunch: Yeah, okay. 1721 1722 Vice Mayor Sova: Could there be any, any cost savings in bidding out all three of them? 1723 1724 Mr. Kaylor: There would be cost savings. 1725 1726 Vice Mayor Sova: And, and, I agree, my questions is, is a percentage or dollar amount, who knows? 1727 1728 Mr. Kaylor: You are trying to put me in that box? 1729 1730 [laughs] 1731 1732 Vice Mayor Sova: I was in that box my whole life! 1733 1734 [laughs] 1735 1736 Mr. Kaylor: There's mobilization and demobilization. 1737 1738 Vice Mayor Sova: Yeah, right. 1739 1740 Mr. Kaylor: If you got the right contractor, the right contractor might say, you know, this, I can save 1741 25% or 30% if I do three of them.

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1742 Vice Mayor Sova: Right, right. 1743 Mr. Kaylor: But, that depends on the engineering solution. 1744 1745 Vice Mayor Sova: Right, right. 1746 1747 Mayor Bunch: That's why… 1748 1749 [laughs] 1750 1751 Mr. Kaylor: Okay, so, anyhow, I think I've overstayed my welcome. 1752 1753 [laughs] 1754 1755 Ms. Clancy: No, actually I think that being probably one of the most important items that we have to 1756 really deal with because if people don’t get water, we don’t have a Town. People's home values start to 1757 drop and I think it behooves all of us to seriously consider what you've done and the Water Advisory 1758 Committee has had years of frustration and this is the first time, since I've been on Council, that, uh, 1759 we've gotten some serious talk and, and, I've got to thank you for bringing the bad news to all of us, but 1760 at the same time, it gives us something to work with and to be prioritized. If you were going to prioritize 1761 them, could you give us a list of what you think needs to be done immediately, based on, some of which 1762 you’ve given us, you know, I understand, it's just, sort of maintenance work, but when it comes to the 1763 system as a whole. 1764 1765 Mr. Kaylor: Right, right. The new most important, Mayor and Councilmember, the two most important 1766 projects in my opinion, and we're do, the, the refurbishment of the filters at the treatment plant we are 1767 going to be doing that internally. We can do that separate from any CAP booster station work. I believe 1768 that the CAP booster station is the weak link. We have one good source of water and that's the water 1769 coming down that canal and I, we, we have a pretty, pretty good treatment plant that we can refurbish, 1770 uh, a couple, couple of those every five or six months, but the weak link right now is the, are those 1771 booster stations and that's because it is very difficult if, um, if a vault flooded, it would catastrophic. 1772 1773 Mayor Bunch: Yeah, yeah, you are talking a long time because you've got to, you've got to turn the 1774 power off, yeah, you’ve got to get a divert in there to go down there and shut the valves. 1775 1776 Mr. Kaylor: Right. 1777 Mayor Bunch: Assuming there is not a line break in there. 1778 1779 Mr. Kaylor: Right. 1780 1781 Mayor Bunch: You know, yeah, it's. 1782 1783 Mr. Kaylor: It's, it’s the weak link that could shut us down from producing water. If we had, if we had, 1784 um, well water storage, of a certain amount, maybe a day or two, but that's not cheap either. That's not 1785 cheap either. To me, the most cost beneficial project we could do would be to get those booster stations 1786 so they would be much more reliable and less risky. 1787

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1788 Mayor Bunch: And right now we are looking at doing those over how long of a period of time? 1789 1790 Mr. Kaylor: Um, three years, Robert, had them, is there $450,000 in there? I thought I saw that amount 1791 there. 1792 1793 Mr. Weddigen: Mayor, Council, the display that I have shows, um, three CAP pump station upgrades 1794 that, um, that's, uh, 2019 is $350, 2020 is $350 and 2021 is $375,000. 1795 1796 Mayor Bunch: I, I guess… 1797 1798 Ms. Clancy: Well, that's kind of silly. 1799 1800 Mayor Bunch: I guess my question would be, since, since we had that other sheet that you gave us that 1801 showed how much money we actually have, um, I would, would question whether not it might, the 1802 advisable thing to do would be to increase the budget by the, by enough to do that all at the same time 1803 and let's get rid of that weak link and not scare ourselves. 1804 1805 Ms. Clancy: Absolutely. 1806 1807 [laughs] 1808 1809 Vice Mayor Sova: That's $725,000, yeah. 1810 1811 Ms. Clancy: Maybe, maybe less, we won't know, I mean, might as well do it. 1812 1813 Vice Mayor Sova: Maybe, you don’t know. 1814 1815 Mayor Bunch: Yeah, put a number in there that's arbitrary, you know and make sure you’ve got enough 1816 to cover it and then, then let's take that danger away, which makes the storage less of an issue. 1817 1818 Mr. Kaylor: Exactly. 1819 1820 Mayor Bunch: Because, you know, if something catastrophic happens, an extra couple million gallons 1821 is, is going to give you an extra eight or twelve hours. That's, that's not sufficient. 1822 1823 Mr. Kaylor: Right, if you, if you make the booster stations as risk free as possible… 1824 1825 Mayor Bunch: Yes. 1826 1827 Mr. Kaylor: Then, you can operate the treatment plant because it runs very well for a package treatment 1828 plant. 1829 1830 Mayor Bunch: Right, yeah. 1831

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1832 Ms. Clancy: And, and my understanding with the water that they are processing there, once they’ve 1833 cleaned it, if you will, I was told a few years ago, it was, it certainly could be drank. So, if you could 1834 mix it. 1835 1836 Mr. Kaylor: I'm sorry. 1837 1838 Ms. Clancy: The sewer treatment. By the time that water is cleaned and done and processed that some of 1839 them said you could drink it. [laughs] 1840 1841 Mayor Bunch: [laughs] Yeah, that's what they told me, too, but I am not going to be the one to try it. 1842 [laughs] 1843 1844 Ms. Clancy: You know what, but I am wondering if you can blend and, and, who know, I mean, for, uh, 1845 emergencies, I don't know, and, and maybe that's another thought, I. 1846 1847 Mr. Kaylor: It is, Mayor, Councilmember, um, um, total reuse is done, it's all, it's done all over the 1848 country, but it's my understanding that we have a contractual obligation for every drop that comes out of 1849 the Waste Water Plant. 1850 1851 Mayor Bunch: We do. 1852 1853 Mr. Kaylor: So, I don’t know that… 1854 1855 Vice Mayor Sova: To Rancho Manana. 1856 1857 Ms. Clancy: Yeah, to Rancho. 1858 1859 Mr. Kaylor: I don’t think we have the volume to think about doing that. 1860 1861 Vice Mayor Sova: It is possible, will it be possible since we've split up the Enterprise, single Enterprise 1862 Fund into three funds now, to move money from one to another? 1863 1864 Mr. Weddigen: Thank you for the question, Councilmember. It is possible to do appropriation authority 1865 between funds, uh, with Council approval. 1866 1867 Mr. Smith: Okay, now, there is a humungous amount of money in there for Desert Hills Capital, um, so, 1868 it, if a decision was made to not utilize that capital on Desert Hills, it would be possible to shift it over 1869 for something like this? 1870 1871 Mr. Weddigen: Yes, Councilmember, it would be possible to shift over the appropriation authority. At 1872 that time, we would also probably indicate that a larger transfer would be needed in the Cave Creek 1873 Water System to, you know, be a funding source for that. 1874 1875 Vice Mayor Sova: Okay. 1876 1877 Mr. Smith: So, there is flexibility for the Council to do things?

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1878 Mr. Weddigen: Councilmember, yes, that is correct. 1879 1880 Mr. Smith: Thank you. 1881 1882 [inaudible background discussion] 1883 1884 Mayor Bunch: We obviously can't vote at a workshop, but I think that we're, everybody is, uh, thinking 1885 that might be a good idea. 1886 1887 Vice Mayor Sova: Yeah, because without CAP water, 1888 1889 Mayor Bunch: Yeah. 1890 1891 Vice Mayor Sova: Desert Hills loses 55% of their water, which is about what we give them with our 1892 CAP, through our CAP allocation. 1893 1894 Mr. Smith: And we lose 100%. 1895 1896 Vice Mayor Sova: We lose 100% and they lose 55%, so it's important to them, also. 1897 1898 Ms. Clancy: Well, I think it's for the whole system and it makes no sense to push it out three years. I 1899 mean, [inaudible] 1900 1901 Mayor Bunch: Reliability is the thing we have been afraid of the most since we bought the thing. 1902 1903 Mr. Weddigen: May I ask a, Mayor, Council, may I ask a question of the Utility Director? Um, I have a 1904 question on the timing, if we were to do, uh, uh, an amendment to propose an amendment to the 1905 tentative budget as it's been set already to adjust for this in some way, uh, to bring all those projects in 1906 the first year, in 2019, is it possible, uh, because you'd probably only want to do one, I'm assuming, 1907 again, correct me if I'm wrong, one CAP station at a time, is it possible to fit those construction projects 1908 in a continuous matter to complete them in one fiscal year? 1909 1910 Mr. Kaylor: Uh, it probably is, Robert. I would guess that the design would take, uh, three to four 1911 months. They are fairly simple pumps, pump stations. Once the design was done, then you'd have to 1912 come up, and then, then you would bid the first one. You, you could, you could, you could, uh, dictate 1913 the schedule so that it could be done in, uh, in a fiscal year. Obviously, you wouldn’t want those out of 1914 service as soon as April or May hit, but, um, it's not a big design effort, it's more of a construction effort. 1915 1916 Ms. Clancy: And based on those locations, 1917 1918 Mr. Kaylor: Yes. 1919 1920 Ms. Clancy: That you've seen, there's a place to put and move them and bring them up? 1921 1922 Mr. Kaylor: I don’t, I, I don’t have that, I don’t, Mayor and Councilmember, I don’t have that detail, we 1923 would have to look at each one of those locations and find out if we had, uh, enough room.

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1924 Ms. Clancy: Right, that’s what you said. 1925 1926 Mr. Kaylor: Enough, uh, room to do whatever. 1927 1928 Ms. Clancy: I was, yeah, that, cause he had said that. 1929 1930 Mr. Kaylor: And that, and that fact may drive the design. 1931 1932 Vice Mayor Sova: Yeah. 1933 1934 Ms. Clancy: Exactly. 1935 1936 Mr. Kaylor: The design may be driven by, not enough space where they are currently located. I mean, if 1937 there's space, 1938 1939 Ms. Clancy: Unless there is a right of way, or a taking of a right of way. [laughs] 1940 1941 Mr. Kaylor: Exactly. 1942 1943 Ms. Clancy: Just to get the building in. 1944 1945 Mayor Bunch: Phoenix will love that. 1946 1947 [laughs] 1948 1949 Ms. Clancy: Well, you have to do what you have to do to, uh, ensure it and if it requires taking it from 1950 Phoenix, I, I, there is no heart burn on my end, whatsoever. [laughs] Condemnation. I always stay away 1951 from it, when it came to schools, but you know what, you got to do what you got to do. 1952 1953 Mr. Kaylor: Any other questions? 1954 1955 Ms. Clancy: No, but, thank you so much. 1956 1957 Mr. Kaylor: You're welcome. 1958 1959 Mr. Weddigen: So, Mayor, Council, I would like now to address the issue of how do we pay for the 1960 Capital Improvement Program. Currently, as it sits with amounts that we had already proposed, without 1961 including the additional projects, the Cave Creek Water System is set to exceed its revenue by about 1962 $500,000 for fiscal year '19 and that money is included, currently, in the amount that's being budgeted to 1963 transfer to absolve of its existing debts. So, the operational shortfall for '19 that this Capital 1964 Improvement Program creates, including the maintenance of the two Tridents, um, would be, uh, uh, 1965 causing it to go over its revenue source by about $500,000. Now, uh, currently, this does relate to rates, 1966 so I will bring rates up. This funding source, uh, would not be, the rates, currently, would not be 1967 sufficient to cover such overages, um, well, it might result in future years being able to pay back the, the 1968 uh, uh, General Fund, it doesn’t appear that with the way its structured now that that would be the case, 1969 uh, in the rates that we have developed thus far. So, the $500,000 shortfall for this first year of the

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1970 Capital Improvement Program, is coming from the General Fund. Uh, there are additional options, as 1971 well, to pay for Capital Infrastructure, sizeable Capital Infrastructure, and I think it was mentioned 1972 earlier, we did receive and could continue to receive additional, uh, WIFA loans to pay for it. We could 1973 also combine any kind of financing plan with a refinance plan of existing debt to bring down our 1974 principle and interest payments, as you can see by the, the budget for, um, page 99, for, um, Cave Creek 1975 Water System, the P and I is $2,000,000. I mean, if that were reduced by $500,000 due to refinancing 1976 just the existing debt, then we would have sufficient funds on a pay as you go basis, to, uh, afford the 1977 capital, again, as it stood before we decided possibly to bring the other two CAP stations forward into 1978 2019, um, so you can see how a difference that would make. Um, but also, if we were to acquire 1979 additional debt, the P and I would be, obviously, less than the expenditure that we are proposing. If it, 1980 you know, if you were to take out a 10 year, 15 year, or even a 20 year debt on the Capital 1981 Improvements that we want to take or make, you know, the P and I is only going to be a 20th or a 15th 1982 or a 10th of the amount, depending on the length of the, the loan, and that’s approximate. So, I mean, 1983 that’s something that we can consider, uh, and, you know, and that’s something that we may want to 1984 consider once we get the full depth and breadth of the Capital Improvement Program for future years, 1985 um, as it relates to what we could pay as you go from the Enterprise Fund, based on the rates that we, 1986 we'll propose. That may be covered, uh, or hopefully will be covered, um, when we, uh, bring forward 1987 the, the water rates study again to Council. Um, the same things happens in Desert Hills and the Waste 1988 Water Treatment Plant for the Capital that is being proposed in those areas, uh, essentially, um, those, 1989 uh, excesses are going to, uh, are currently being proposed to come out of the General Fund, uh, as well. 1990 So, basically, at the end of fiscal year '19, everyone would be at, uh, uh, uh, point, a starting point of 1991 zero, essentially for all their operating shortfalls, uh, for the current year, as well as the prior years. Um, 1992 again, though, those other choices you could do, uh, we could allow them to go in the negative and then, 1993 hopefully, the rates, essentially will catch up, in terms of generating enough revenue, a positive cash in 1994 future years to offset the amount that is in excess. But, right now, the option is that, that we've done for 1995 the budget is to show those funds receiving General Fund money to cover any shortages. So, there's, 1996 there's really options, or four. We could refinance, we could finance new debt, we could have the 1997 Enterprise Funds go in the negative and then hopefully the rate payers rates will reflect, uh, that amount 1998 that is necessary to pay back the General Fund and we could recoup it that way, or the fourth one, which 1999 is the one that we have done so far, and that is just let the General Fund cover the overage and then, um, 2000 at, at, after the end of the of this fiscal year, we are essentially at a starting point of zero. So, um, that's, 2001 that's it in a nut shell, I guess. 2002 2003 Mr. Smith: You know how much I like the idea of refinancing, pushing it out so that our children's 2004 grandchildren will be able to pay for things. 2005 2006 Mr. Weddigen: Essentially, the way that it is structured now, in some cases, the, based on the actual 2007 useful lives that we experience, we are paying for the benefit of future rate, rate payers. Uh, you know, 2008 so, basically, their rates would be based, future rate payers will be paying less, uh, because we've 2009 essentially prepaid their use of the system by having a debt service of only 20 years, versus 30. 2010 2011 Mr. Smith: But, in the paltry nine years, we'll be able to cut the rates, anyways. 2012 2013 [laughs] 2014

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2015 Mr. Weddigen: That's correct, Councilmember. I just see that currently, that, uh, we are struggling with, 2016 um, you know, the rates, in terms of, uh, comparing us to other entities in order to be able to, uh, 2017 finance, pay as you go. So, uh, that’s why I bring that, that up as an option, so. 2018 2019 Ms. Clancy: Is there a response? 2020 2021 Mr. Smith: Do I need a response? 2022 2023 Ms. Clancy: No. No, I meant a response to what was just said. 2024 2025 Mr. Smith: No, I, I, you know, I, I just have a personal, I have a personal issue with refinancing, um, 2026 government, uh, debt. Uh, if I refi-, I could go out and refinance now, I'm 77 years old, I could refinance 2027 my house now. Nobody would care, because somebody else will end up paying for it. But if a 2028 municipality refinances, the municipality supposedly is not going to die. So, it's there until it's finally 2029 paid off. I just don’t like kicking the can down the road. 2030 2031 Vice Mayor Sova: However, without water, it could die. 2032 2033 Ms. Clancy: That's what I was… 2034 2035 Mr. Smith: Without water, well… 2036 2037 Ms. Clancy: Without doing the system after it's neglected the last 20 years, probably longer than that. 2038 2039 Mr. Smith: As I said to my friend, Mike Durkin when he said, "I have a well, why do I care about the 2040 water system?" I said, "it's the life blood of the Town, a Town disappears without the water system." 2041 2042 Ms. Clancy: And so does the equestrian nature of it. 2043 2044 Mayor Bunch: For me, um, going negative for a bit, letting rates catch it up kind of is a solution. The 2045 people that are actually using, uh, the system are then paying for it, as opposed to, uh, uh, long term 2046 subsidizing thing, or you know, writing it off, but, um, I don't know, what does everybody else think? 2047 2048 Vice Mayor Sova: Well, it depends how long it would take to make up that deficit. 2049 2050 Mayor Bunch: Yeah, as long as you are making it up, though, you're not, you're not falling behind, I 2051 mean. 2052 2053 Vice Mayor Sova: If it's short term. 2054 2055 Mayor Bunch: Doctor, do you got any ideas? Thank you, I'm glad you're coming up here. 2056 2057 [laughs] 2058 2059 Dr. Smith: First of all, you need more information. I mean, we really do need a more realistic, I'm not, 2060 I'm not questioning the estimates that are there, but in order to make an informed decision, you have to

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2061 have an estimate of what it is going to cost to, to, to act prudently and I think that the, the direction that 2062 you are going to look at this risk that we all face is the right decision. The next right decision is to get as 2063 much information as we can on what it is going to cost and then to consider, you know, the rate study is 2064 nearly completed. We should have a good sense of what the, what we're going to do on the rates, that's 2065 more information that will be available reasonably quickly and then you get a sense of, do you want to 2066 take a risk and, and wait and see if we are going to make it up? Or, do we have to, um, not necessarily 2067 go into large scale refinancing, but a middle road solution that allows you to spread some of the debt 2068 over time. Not all of it. It's not all or nothing. I mean, but, but, we really have to have more information. 2069 2070 Ms. Clancy: Or, we can wait to do the, the towers, or whatever, with that that other thing. [laughs] 2071 2072 Mayor Bunch: You know what, though. 2073 2074 Ms. Clancy: And put that off. 2075 2076 Mayor Bunch: Of course, cause, course, at this point in time, all we need to do is, is budget for it, and 2077 then we can figure this out down the road. [inaudible] 2078 2079 Dr. Smith: That's right. That's exactly right. What you have to do now, you've, you've made what, seems 2080 to me, to be, a terrific decision, which is to say, this is the risk that faces the town. You're going to get a 2081 budget that is flexible enough to be able to address it and make sure we get these pieces in place in time 2082 to make the decisions. 2083 2084 Mayor Bunch: Yeah, we have, we've probably, you know, in fact any budget, we probably, you know, 2085 could do a study right off the bat, we probably have three or four months, anyway, to figure out how 2086 we're going to handle the money. 2087 2088 Dr. Smith: Yeah, you wouldn’t start it in the summer, anyway. 2089 2090 [inaudible background discussion] 2091 2092 Dr. Smith: You could do the study in the summer, that's what you do. Exactly. Anyway. 2093 2094 [inaudible background discussion] 2095 2096 Dr. Smith: Thank you for listening to me. 2097 2098 Mayor Bunch: I'm glad you're here, you know, I was worried you weren't going to show up. 2099 2100 [laughs] 2101 2102 Ms. Clancy: He has to represent the committee. 2103 2104 [laughs] 2105 2106 Dr. Smith: That's right.

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2107 Ms. Clancy: In this part of the budget. 2108 2109 Ms. Dyrek: So, Mayor, in terms of, budget and having the appropriation there, if you are considering 2110 moving funds from Desert Hills Capital Improvement Program Funds, which are already in this tentative 2111 budget, if you're moving that into the Cave Creek System, the Enterprise Fund there, the bottom line, 2112 you move the amount of money, so the bottom line isn't going to change. And that gives you the 2113 expenditure authority and we have other options and that gives time to move forward with, you know, 2114 an RP, you're getting an engineer on board to do the analysis and perhaps a design and then make those 2115 decisions on, on the funding. 2116 2117 Ms. Clancy: [inaudible] Can you explain that? 2118 2119 Mr. Weddigen: Um, so, so, Mayor, um, the, the question I have then is are you recommended that we 2120 also, um, carry forward and not provide a transfer to relive the Enterprise Funds of their respective past 2121 debts? Or are you only, uh, or do you want a separate, or do you want to do that for past debts, but leave 2122 the current deficiency as a result of operations in this Capital Improvement Program, um, lie in the, in, 2123 for future years to pay off. Is that a whole, is it whole, or, or just the parts? 2124 2125 Mayor Bunch: No, no, forgive what's there now and then we figure out what to do with the next, with 2126 the next, [inaudible]. Forgive the, um, the 11 ($11 million) that we were looking at before and then, and 2127 then, uh, we'll figure out what's gonna happen with this, what's coming forward with, uh, with what we 2128 have to do to make this up. 2129 2130 Mr. Weddigen: Okay, um, Mayor, just to clarify, the currently, the FY '19 budget as proposed includes 2131 the first year of this CIP, whatever negative amounts that creates, as an amount coming from the General 2132 Fund. So, if you want to, that’s why I ask, um, if you want this year, the 2019 deficiencies to start, uh, 2133 the balance running again, I can do that. But, I would, I would amend the transfers to, um, calculate that 2134 and allow for just the prior years, FY '18 and prior to, um, be expunged, essentially, uh, in terms of the 2135 Inter Fund Balance due. 2136 2137 Ms. Clancy: That would make sense. 2138 2139 Mayor Bunch: Yeah. 2140 2141 Mr. Weddigen: Is that what you mean? 2142 2143 Mayor Bunch: Yeah. Yeah. Yeah, I think we take that risk away. That it, it benefits the whole system, 2144 every, every part of the system, so. 2145 2146 Mr. Smith: With that, combined with the SCADA. 2147 2148 Mayor Bunch: Yeah, yeah. 2149 2150 Mr. Smith: It will make a big difference. 2151

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2152 Mayor Bunch: Yeah, and then you can control it and while we are doing it, hopefully while we are doing 2153 it, we can, we can go to the VFD's at that point in time. Was VFD included in your estimation of the 2154 cost, or was that, uh? 2155 2156 Mr. Kaylor: It was not. I, I didn’t get down to that specific. 2157 2158 Mayor Bunch: Okay. 2159 2160 Mr. Kaylor: I'm, um, I didn’t design it. So, I, I don’t know what the cost is going to be. 2161 2162 Mayor Bunch: Right. 2163 2164 Mr. Kaylor: It, I'm, I, intuitively I believe that, again, that some of the cost is going to be for, um, 2165 redundancy while the construction is going to take place. 2166 2167 Mayor Bunch: Right. 2168 2169 Ms. Clancy: And, it… 2170 2171 Mr. Kaylor: I don’t think they could do a project like that, even the best contractor is probably going to 2172 say that's going to take him, six to eight weeks. 2173 2174 Mayor Bunch: Yeah. 2175 2176 Mr. Kaylor: And so, you’ve got to have some way of providing redundant pumping and bypass pumping 2177 while that's happening. 2178 2179 Mayor Bunch: I hope they bring their tape measure right when they go to stick the new piece in. 2180 2181 Mr. Kaylor: Exactly. 2182 2183 [laughs] 2184 2185 Ms. Clancy: And plus, he pointed out the overtime on some of this would be reduced and I think that 2186 was over $100,000. So, that could just grow exponentially. 2187 2188 Mayor Bunch: You have to think this, this, it'll alleviate a lot of the fear that we have with the system. 2189 2190 Mr. Kaylor: Oh, without a doubt. Mayor, without a doubt. If, when you have this, when you, when the 2191 SCADA is done, and the SCADA is properly implemented, you have tank-age, you have tanks that are 2192 going up and down and level indicators are telling SCADA what has to happen and those pumps are 2193 coming on and off by themselves. 2194 2195 Mayor Bunch: Yeah, yeah. 2196

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2197 Mr. Kaylor: You are not babysitting the system any longer. The system is basically sending information, 2198 the CAP pumps are going to see that information, they can start and stop in sequence with a VFD. 2199 2200 Mayor Bunch: Or, or, or change the frequency and just run at, run at the, at a rate that they need. 2201 2202 Mr. Kaylor: Exactly. 2203 2204 Mayor Bunch: Yeah, to maintain. Yeah. 2205 2206 Mr. Kaylor: Exactly. 2207 2208 Mayor Bunch: Yeah, yeah. 2209 2210 Mayor Bunch: Or change the frequency. [laughs] Let me move this over a little bit closer, uh, yeah, this 2211 is, this is the technical kind of stuff that I love, cause that's the world I live in. [laughs] 2212 2213 Mr. Kaylor: Mr. Wizard. 2214 2215 [laughs] 2216 2217 Mayor Bunch: Sorry about that. 2218 2219 Ms. Dyrek: So, the covered, that's basically just the Cave Creek System, so, we would move on to 2220 Desert Hills and the Capital Program, there's some large projects in here, um, again, that those will be 2221 Council's decisions. Um, but, those would be to make the system more self-sufficient, including arsenic 2222 treatment, an additional well, etc, is large. So, if you're looking at, uh, funding Cave Creek Capital 2223 Programs and adjusting the Desert Hills Capital Programs that are in the budget and moving that into 2224 Cave Creek to cover these other expenses. 2225 2226 Mayor Bunch: Yeah. We, we've already, um, increased the budget by a percentage that is gonna get us 2227 in trouble with AFP, or whatever the heck it's called, that guy that scores us. Uh, I don’t know if I have a 2228 great amount of heartburn by just, since this proposed, of actually adding this, these numbers to what's 2229 there. If that's something, if that's something we can do, cause we are already… 2230 2231 Ms. Clancy: What are you, what are you talking about? Who? 2232 2233 Mayor Bunch: Oh, that guy that scores us, if we're gonna, we're all gonna get, with this budget, we're all 2234 gonna get scored friend to big government because we, we've increased the thing, even though we've 2235 not, not done the things we should have been doing for years, as far as the utilities go. 2236 2237 Ms. Wright: You get scored, literally, you get an F. 2238 2239 Mayor Bunch: Yeah, what's his name? 2240 2241 Ms. Clancy: By who? 2242

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2243 Ms. Wright: I can't think of it, it's, I'll think of it yet, it some, he's well known. 2244 2245 Ms. Clancy: Oh, oh, oh, you mean somebody outside of our world who has absolutely no idea of what 2246 we are trying to do. 2247 2248 [inaudible background discussion] 2249 2250 Ms. Clancy: That makes complete sense. 2251 2252 Ms. Wright: The towns are scored and we will do horribly. 2253 2254 Mayor Bunch: Yeah, yeah, we are going to, going to, you know, we are already in trouble, but, but to 2255 me, I'd rather do the right thing for the community than care about what, how they're gonna, how they're 2256 gonna treat us. It's, it's more important to, to do what's correct and, and, uh, for the overall health of 2257 the… 2258 2259 Ms. Clancy: It's called servant leadership. 2260 2261 Mayor Bunch: Right. 2262 2263 Ms. Clancy: And that's what you have to do [inaudible]. 2264 2265 Mayor Bunch: Yeah, you know, we're go-… 2266 2267 Ms. Clancy: But, anyway, the bigger picture hasn’t come out, so. 2268 2269 Mayor Bunch: Yeah, we are gonna get beat up, anyway, so. Is that possible, Robert, to, at this point in 2270 time to increase that bottom line number by the, these two other pump stations? I know you all are 2271 looking at me like. 2272 2273 Mr. Weddigen: Mayor, Council, it's our understanding that, there's a desire to try to reduce what we are 2274 about to review, which is the Desert Hills Capital Improvement Program and shift, essentially, that 2275 appropriation authority, expenditure authority, um, to the Cave Creek Water System to allow for the 2276 construction of the additional CAP stations. I just wanted to point out, Mayor, if I may, um, the, 2277 currently, the transfers, transfers in and out do not count towards our expenditure limit. It's, the amount 2278 is $21,534,589 is proposed, um, that's compared to last year's budget of $18,302,678 and that's a 2279 $3,231,911 difference, which is between a 15-20% change in the budget and I don't know if that grants 2280 us an F, or not. 2281 2282 Mayor Bunch: Oh, it's gonna. It's gonna. 2283 2284 [laughs] 2285 2286 Mayor Bunch: It's gonna. 2287 2288 [laughs]

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2289 Ms. Wright: Yeah, it does. 2290 2291 Mayor Bunch: It's gonna, but it… 2292 2293 Ms. Clancy: We already have the F. 2294 2295 [laughs] 2296 2297 Mayor Bunch: The hard decision, the hard decisions are doing the right thing as opposed to the popular 2298 thing. 2299 2300 Ms. Wright: Raise it 3 million dollars. 2301 2302 Vice Mayor Sova: Thanks for the clarification. 2303 2304 [laughs] 2305 2306 Mayor Bunch: You know, and it, it's odd for me to be sitting here talking like that, but. 2307 2308 Ms. Clancy: Well, I, I think… 2309 2310 Mayor Bunch: A community with no water is worthless. 2311 2312 Ms. Clancy: But, we, yeah. We, I think, for me, uh, I had a discussion, uh, with Robert. My discussion, 2313 um, that I would like to see in the budget that is not in this budget is the headcounts and what we are 2314 paying employees individually as opposed to a, a lump sum. Because just the few that I've looked at, 2315 um, which started out earlier today, and I'm changing subjects, but I'm going back to the segment up 2316 there, for your explanation, um, has me troubled. And, um, I, I would like to see the bigger picture with 2317 each individual so we can look it and get a better understanding of, um, the numbers, uh, the increases at 2318 each employee level, um. 2319 2320 Mayor Bunch: Yeah, my recollection is the last time we did that, we had to give everybody raises. And, 2321 Cave Creek has historically been a training ground for all the other municipalities because we are part of 2322 the metro area and if you look at, at demographics from, from communities in this, around the state of 2323 5,000 that are out in the middle of nowhere, the numbers are much lower than what they are in the metro 2324 area. So, I, I know where you are going, but I think, I think you are opening a can of worms, especially 2325 with, with, um, uh, unemployment rates so low at this point in time. You know, if we had 15% 2326 unemployment, it would be real easy to, to uh, to beat people over for… 2327 2328 Ms. Clancy: Well, I, I don’t think that's fair to the public. I don’t think it's fair for them to see the bigger 2329 picture… 2330 2331 Mayor Bunch: I don't… 2332 2333 Ms. Clancy: That takes place, um, at, at the, uh, town hall level. Because, some of these are fairly 2334 substantial when 50-60% of our cost, with our employees is in benefits, then I need an understanding of

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2335 benefits and why I am looking at $3,500 or $4,000 or $6,000 in raises and the way the, um, um, the 2336 benefits are set up, and I had asked for an RFP when it came to the insurance stuff that never took place 2337 when I came on. So, they just went with the same company, um, in fact, when I came on, they weren't 2338 even in groups, at the time. So, I think we failed in those areas and perhaps that's where money can be 2339 found, or, set, set back a little bit. But, if you don’t want to do that, then I won't just make it my issue, 2340 so. 2341 2342 Mayor Bunch: Yeah. I, I, you know, I, I know what happens when you’ve got a competitive, um, um, 2343 atmosphere for workers and, quite frankly, this, this area is… 2344 2345 Ms. Clancy: They're in there, it's in there anyway. 2346 2347 Ms. Wright: It's in there anyway. 2348 2349 Ms. Clancy: It's just not broken down by individual. 2350 2351 Mayor Bunch: Yeah. 2352 2353 Ms. Clancy: You know, I don’t need a name, just break them down for me. 2354 2355 Mayor Bunch: Yeah. One, one, yeah, once you see the numbers, you might, uh, understand where I'm, 2356 where I'm come, cause… 2357 2358 Ms. Clancy: Well, you know what, if you’ve seen them, then I would say it's fair to the rest of the, um, 2359 Council. 2360 2361 Mayor Bunch: Well, I'm just going by… 2362 2363 Ms. Clancy: If you’ve seen them and that’s how you feel about it… 2364 2365 Mayor Bunch: I'm just going by historical. I can, I can tell you when Jimmy Carter was president and I 2366 had a minimum wage job offer. I had 112 people come and apply. Um, you know, that's not the, the 2367 world we're living in today, so. We're not, you know, not, I mean, you can keep looking at it, but we are 2368 right on the, on the verge of, uh, needing to pass a budget, so. Anyway, can we move forward? 2369 2370 Ms. Wright: Can I ask a real, question real quick? 2371 2372 Mayor Bunch: Yeah. 2373 2374 Ms. Wright: What happened to Desert Hills? 2375 2376 Mayor Bunch: Well, I think that's kind of where we're, where we're at right now. That's what I'm saying. 2377 2378 [inaudible background discussion] 2379 2380 Mayor Bunch: That's what I'm saying. What's, what's the difference between an F and an F-?

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2381 [laughs] 2382 2383 Ms. Wright: Not much. 2384 2385 Ms. Clancy: Did you give us an explanation on Sigmund and your last, uh, thing that was up there? 2386 2387 Mr. Kaylor: Uh, uh, Robert, that's, Sigmund was a very, very wise man. That last slide. Um, it took, I 2388 saw that quote years and years ago. I actually have it on the bottom of my email. But, um, I believe, and 2389 I'm not, uh, trying to paraphrase Sigmund Freud, by any [laughs] stretch of the imagination. 2390 2391 Ms. Clancy: But, you may. 2392 2393 Mr. Kaylor: But… 2394 2395 Ms. Clancy: Because, it's your perception. 2396 2397 Mr. Kaylor: I believe what he means by that is that the problems that we have today, we cannot solve 2398 with the same level of thinking or research that we used when we created those problems. 2399 2400 Ms. Wright: Yeah. 2401 2402 Mayor Bunch: Yeah. 2403 2404 Mr. Kaylor: We've progressed past that. So, it's, it's kind of a nice quote to, to look at. 2405 2406 [laughs] 2407 2408 Ms. Clancy: [inaudible] 2409 2410 Mr. Kaylor: And, how did we get here? 2411 2412 Ms. Wright: Yes. 2413 2414 Mr. Kaylor: You don’t want to do the same thing over and over. 2415 2416 Ms. Clancy: Well, we, we, kind of, [inaudible]. 2417 2418 Mayor Bunch: We got by ignoring, by not spending money when we needed to. 2419 2420 Mr. Kaylor: Yeah. 2421 2422 Mayor Bunch: Um. 2423 2424 Ms. Wright: But, what was recommended for Desert Hills? I mean, is it, why would, I guess my 2425 question is why put a substantial amount of money into it, if it might not be a long-term investment? 2426

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2427 Mr. Kaylor: Mayor and Councilmember, uh, obviously that is, that's a Council decision and, and when, 2428 and, and I looked at, uh, there's a significant amount of, of, uh, Capital Improvement in that budget and, 2429 uh, almost a million dollars. 2430 2431 Ms. Wright: Mm-hm. 2432 2433 Mr. Kaylor: And, um, do you put a million dollars into that system, and, when you have other places that 2434 I believe are more critical? 2435 2436 Ms. Wright: I agree. 2437 2438 Mr. Kaylor: Right. 2439 2440 Mayor Bunch: Mm-kay. 2441 2442 Mr. Smith: Yeah. 2443 2444 Ms. Clancy: So, are we scrapping all of, uh, 2019 for Desert Hills? Or are we just going with what is 2445 necessary? 2446 2447 Ms. Wright: Well, if other things are more important, I think we would scrap it and go to what's 2448 important for our community right here. 2449 2450 Mayor Bunch: And, Desert Hills is in big trouble if those CAP lines go down, too, so. 2451 2452 Mr. Kaylor: Exactly. 2453 2454 Ms. Wright: Well, that's true and we can't really control the growth there. 2455 2456 Ms. Clancy: No, I agree. 2457 2458 Ms. Wright: If they don’t have any water, I mean, it's, what's sellable there is the clients. And if 2459 somebody has water, they might like those clients. 2460 2461 Mr. Smith: Pretty soon, although this is a little off budget, we, we really ought to put on the agenda a 2462 decision making opportunity for the Council, to make a decision about Desert Hills. Do we go out for an 2463 RFQ and say, uh, you know, anybody want to buy the damn pla-, I'm, sorry. 2464 2465 [laughs] 2466 2467 Mr. Smith: Anybody, uh, interested in this, uh, enterprise? 2468 2469 [laughs] 2470 2471 Vice Mayor Sova: I think the reason we, we have that million-one number in there, or you have it in 2472 there, Jim, is that, uh, what we were trying to do is get them to be more self-sufficient, so they could, uh,

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2473 wean themselves over, out of the four hundred and whatever the right number is, seven, or seventeen, 2474 four hundred and seven or four hundred and seventeen acre feet of water that we shipped over there last 2475 year to get that number down. And the only way you can do that is with a good well or another well. 2476 2477 Mr. Kaylor: Mayor and Councilmember, uh, yeah, that's correct. The, if, if you do, if you drill a, if you 2478 do a test well, you are gonna spend a quarter of a million dollars. It, it, it, that quarter of a million dollars 2479 is going to be used to determine whether the water is there, and if the water is there, is it, uh, potable? Or 2480 does it have to be treated? So, what, once you do that, then you’ve got another six or seven hundred 2481 thousand dollars in, in equipment, site, whatever. So, it's, is, it's, drilling a well is not, um, cheap, by any 2482 means. It never was and it's a lot more expensive today than it was twenty years ago. 2483 2484 Vice Mayor Sova: Right. 2485 2486 Mr. Kaylor: So, you're right, the million dollars is the, is groundwater. 2487 2488 Mayor Bunch: Unless you go 800 hundred. And, I had a, uh, anecdotal story here. I had a, uh, a guy had 2489 a change the pump in my well, uh, we, last week or week before last and he told me that if you're at 16th 2490 avenue, or 16th street, you can drill a well 1000 feet and get a gallon a minute out of. Or you can go to 2491 16th avenue and drill a well 1000 feet and get 500 gallons a minute out of it. There is just a, so, you 2492 know, that's, that's the, the, shot in the dark you're taking when you, when you start digging holes, or, 2493 drilling holes in the ground and, and seeing what's down there. 2494 2495 Mr. Kaylor: Exactly. 2496 2497 Mayor Bunch: You know, so that's a bit, you know, that's, that’s rolling the dice. 2498 2499 Mr. Smith: Rolling the dice. 2500 2501 Mayor Bunch: That’s rolling the dice for what we're talking about doing with the Cave Creek System is 2502 actually something concrete and solid. 2503 2504 [inaudible background discussion] 2505 2506 Ms. Wright: That’s what we need and can we somehow David's advice and get something put on the 2507 agenda to go forward with discussion? 2508 2509 Mayor Bunch: Well, I didn’t have that on here, no. Yeah, we do. 2510 2511 [laughs] 2512 2513 [inaudible background discussion] 2514 2515 Vice Mayor Sova: Yeah, cause if no one comes forth having an interest in it. 2516 2517 Mr. Smith: It, It, it's worthy of discussion. 2518

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2519 Vice Mayor Sova: Well, and if they do it, at what price and is it inclusive or exclusive of the, uh, CAP 2520 water. 2521 2522 Ms. Wright: That should exclusive. 2523 2524 Vice Mayor Sova: Should be, but I wouldn’t guarantee it, they’ll all want it in there. 2525 2526 [inaudible background discussion] 2527 2528 Ms. Wright: How about that? 2529 2530 Vice Mayor Sova: Yeah. 2531 2532 Ms. Wright: Give it a try. 2533 2534 Vice Mayor Sova: Oh, I agree, I think we should be going out for… 2535 2536 Mayor Bunch: And Robert is over there sharpening his pencil. Could we have thrown a wrench into the 2537 works here? 2538 2539 Ms. Clancy: Well, you go to, you're gonna have to hire someone to do that, it can't be done internally. 2540 2541 [inaudible background discussion] 2542 2543 Ms. Clancy: And, you're gonna do it with an attorney? 2544 2545 Mr. Smith: Well, yeah. 2546 2547 Ms. Clancy: I have a good attorney that we can hire for that. 2548 2549 Mr. Smith: Well, you, well, you'd need, you'd need more than… 2550 2551 Ms. Clancy: Trust me. 2552 2553 [inaudible background discussion] 2554 2555 Mr. Kaylor: This one, this one and that one. 2556 2557 Mr. Smith: It's the kind of thing that automatically… 2558 2559 Mr. Kaylor: The arsenic removal is, that’s just a study. 2560 2561 [inaudible background discussion] 2562 2563 Mr. Kaylor: That's just a study to determine how big of a plant you would have etc, etc. 2564

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2565 [inaudible background discussion] 2566 2567 Ms. Clancy: I double checked everything. 2568 2569 [inaudible background discussion] 2570 2571 Ms. Dyrek: Okay, on the Desert Hills Capital Improvement Program, we have some new water well, the 2572 new well development, uh, an arsenic study, that comes to $580,000 in the Capital Improvement 2573 Program in Desert Hills that we could pull and move to Cave Creek, but we have to check on the Galvan 2574 Well Rehabilitation. There's $200,000 there, so, you need to check with Dennis? 2575 2576 Mr. Kaylor: I will. I, I'm not sure of the, uh, 10th street well, uh, I'll check with Dennis on both. 2577 2578 Mayor Bunch: That one, that one's 800 and about 800 feet and 10th street was that, it was, it was like, 2579 100 gallons a minute or something. 2580 2581 Mr. Kaylor: Exactly. 2582 2583 Mayor Bunch: Yeah. 2584 2585 Mr. Kaylor: Yeah, the pump went in two weeks ago, but the, the thought was if certainly that's not, that's 2586 not, that's not, I'm sorry, it's not the volume that, that we had hoped for. 2587 2588 Mayor Bunch: Right. 2589 2590 Mr. Kaylor: It's 100,000 gallons a day, which is 100,000 gallons, but, uh, it would be nice for, if it were 2591 a million gallons. 2592 2593 Mayor Bunch: Wouldn’t that be nice. 2594 2595 Mr. Kaylor: Right. Then we wouldn’t be talking about it. 2596 2597 Mayor Bunch: Right. 2598 2599 Mr. Kaylor: Right. 2600 2601 Mayor Bunch: Right. 2602 2603 Ms. Dyrek: Well, we'll need to come up with the exact number that can be moved from Desert Hills into 2604 Cave Creek. 2605 2606 Mr. Kaylor: Yes. 2607 2608 Ms. Dyrek: Okay. 2609

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2610 Mr. Smith: Also, if you're, uh, if you're talking about in addition to the, uh, the one down at the CAP 2611 canal three, instead of one, there's, uh, probably in the economy of scale and looking at that, that would 2612 reduce the, the cost because if somebody is going to send a team out to do a, uh, a site review and do 2613 some initial planning and if it's the same group that goes three different places, it will simplify things. 2614 2615 Ms. Dyrek: Mm-hm. Alright, anything else on Desert Hills? You want to cover the Waste Water utility 2616 on the Capital Projects? 2617 2618 Mr. Kaylor: Yes. 2619 2620 Ms. Dyrek: I think you touched on it your presentation on the… 2621 2622 Mr. Kaylor: I did. Right. There's, um, right, the, the uh, there's a 200, well, let's, let's go back to the, uh, 2623 the PowerPoint. The Rancho Manana Lift Station has some, uh, flow restrictions at the present time. The 2624 restrictions are there because, um, that lift station was really the influent pump station to the old Waste 2625 Water Plant. And so, it wasn’t actually expanded. They put new pumps in to it, in, into it and then, um, 2626 the capacity stayed the same. We are talking about various developers coming into town now and 2627 hooking up to our sewer system. So, when you look at that, that lift station, there's some limitations to 2628 how much it can pump. The real problem is during the peak hours, it has two pumps in there and those 2629 pumps are, are activating every eight to ten minutes, back and forth. 2630 2631 Mayor Bunch: Wow. 2632 2633 Mr. Kaylor: To come on. So, with the peak hours, it's, it's, it's at pretty much maximum flow. That 2634 doesn’t mean you couldn't, you could solve that another way, by putting larger pumps in, but that's not, 2635 that's a band-aid. That’s not gonna get you down the road eight to ten years. So, there is money in the, 2636 um, in the Capital Improvement Program to do a study to identify what the end design cost would be to 2637 upgrade that lift station. 2638 2639 Mayor Bunch: Bigger hole in the ground? 2640 2641 Mr. Kaylor: Bigger hole in the ground, right. More storage to allow it to get through those peaks and 2642 valleys. 2643 2644 Mayor Bunch: Right. Because the more you cycle those pumps, the quicker they wear out. 2645 2646 Mr. Kaylor: There's only about 400, there's only about 4,000 gallons worth of capacity. Which isn't very 2647 much. 2648 2649 Mayor Bunch: Yeah. 2650 2651 Mr. Kaylor: So, the 4,000 gallons, when peak hours come, those, those pumps are chasing one another 2652 to try and keep that, those levels down. 2653 2654 Mayor Bunch: Yeah, okay. Yeah, it's a force main going up, back up the hill and all. 2655

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2656 Mr. Kaylor: Yeah, 90% of the, uh, the flow of the city goes through, or the town goes through there. 2657 There's an eight inch force main, I, I don’t believe there's any restrictions, we, we're gonna, we, you can 2658 get a lot of flow through an eight inch force main, but the restrictions are in that reservoir, that wet well. 2659 So, that's, that’s the main, um, Waste Water Capital Improvement Program item. And again, I have a 2660 number in here, I don’t know whether that number is dead on, but I'm guessing it's, uh, ideally you 2661 would put a wet/dry lift station in. So, you would have, you'd have a, you'd have a, a reservoir and then 2662 pumps going through a wall that you could maintain. You'd have a, a wet side and a dry side where your 2663 pumps were. 2664 2665 Mayor Bunch: Okay, okay. 2666 2667 Mr. Kaylor: So that you're, you're going down into an area and you can maintain the pumps and take 2668 care of maintenance, etc. 2669 2670 Mayor Bunch: Okay. 2671 2672 Mr. Kaylor: Without having to, right now, you’ve got submersible pumps in there. So, you really can't 2673 tell what the condition of the submersibles are, etc. 2674 2675 Mayor Bunch: It's not the scuba diver we were talking about. 2676 2677 Mr. Kaylor: No. 2678 2679 [laughs] 2680 2681 Ms. Wright: What was the cost of that, or your estimate? 2682 2683 Mr. Kaylor: Um, 2684 2685 Mayor Bunch: He's 40 for the study. 2686 2687 Ms. Wright: Yeah. 2688 2689 Mr. Kaylor: Yeah, I've got $40,000 in there to study it. We actually, we actually, uh, had two quotes, uh, 2690 I put this out about, uh, a month and a half ago and $40,000 was low, the low bid, uh, the low proposal. 2691 The other one was about $57,000. 2692 2693 [inaudible background discussion] 2694 2695 Ms. Wright: But this isn't really on your priority list yet, is it? Or is it? 2696 2697 Mr. Kaylor: Well, it's not on my priority list yet. 2698 2699 Ms. Wright: Yet, yeah. 2700

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2701 Mr. Kaylor: But, we need to be aware of, cognizant that we're adding customers. As much as I like to 2702 see the Waste Water Treatment Plant get as much Waste Water and get it up to a more efficient 2703 operation… 2704 Ms. Wright: Right. 2705 2706 Mr. Kaylor: It has to go through that station to get there. 2707 2708 Ms. Wright: To start with. 2709 2710 Mayor Bunch: Yeah. 2711 2712 Ms. Wright: Okay. 2713 2714 Mr. Kaylor: Yeah. 2715 2716 Mayor Bunch: And, ideally, that'll, uh, with the right kind of stuff coming in, you're gonna lower the 2717 BOD's… 2718 2719 Mr. Kaylor: Yeah. 2720 2721 Mayor Bunch: And lessen the, uh, dioxide and all the other stuff going on down there. 2722 2723 Mr. Kaylor: Less, less odor. Less, less, uh, right. 2724 2725 Mayor Bunch: Looks like we have to do that. 2726 2727 Mr. Kaylor: I would agree. Uh, it, it's something that, uh, there is no, again, the cost of that, the cost of 2728 the, uh, construction of that will have to include a contingency to bypass. 2729 2730 [inaudible background discussion] 2731 2732 Mr. Kaylor: When the construction is taking place, they'll have to be bypass and, whenever you get into 2733 that kind of a construction operation, then it, it drives the cost up probably 25-30%, because you’ve got 2734 to have people overnight watching the pump, etc, etc, etc. 2735 2736 Mayor Bunch: Are you talking an inline booster with a, yeah. 2737 2738 Mr. Kaylor: Right. 2739 2740 Mayor Bunch: Yeah, yeah. 2741 2742 Mr. Kaylor: Right. 2743 2744 Mayor Bunch: The, uh, new lift station force main 52nd to Carefree highway, that, that's… 2745

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2746 Mr. Kaylor: Um, that was a carryover, uh, I, that's one that I need to check on. I don't, that was a priority 2747 three. Um, I need to get more details on that. I was on the Capital Improvement Program originally, it's 2748 not new this year. 2749 2750 Mayor Bunch: Okay. Alright. 2751 2752 Mr. Kaylor: I'm sorry I don’t have that information. 2753 2754 Mayor Bunch: Okay. 2755 2756 [inaudible background discussion] 2757 2758 Mr. Smith: Oh, that, that was in there to take care of, uh, uh, Richland American. 2759 2760 Ms. Wright: Oh. 2761 2762 Mayor Bunch: Oh, okay. 2763 2764 Ms. Wright: Yeah. 2765 2766 Mr. Smith: Yeah, it's just… 2767 2768 Ms. Wright: Don’t worry about. 2769 2770 [inaudible] 2771 2772 Mr. Kaylor: Oh, it's not a viable project any longer. 2773 2774 Mr. Smith: It, it, I think it was in there for, uh, a, a planned, uh… 2775 2776 Mr. Kaylor: Community. 2777 2778 Ms. Wright: Community. 2779 2780 Mr. Smith: Uh, yeah, planned community. Which is all septic now. 2781 2782 Mr. Kaylor: I see. 2783 2784 Mayor Bunch: Yeah, okay. So, that's gone. Okay, good. 2785 2786 Mr. Kaylor: That's why it's priority three. 2787 2788 Mayor Bunch: [laughs] Yeah. 2789 2790 [laughs] 2791

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2792 [inaudible background discussion] 2793 2794 Ms. Wright: Good, thank you. 2795 2796 Mayor Bunch: Alright, I'm done. 2797 2798 Mr. Smith: What? We're not gonna put, uh, Mike Baxley through the wringer? 2799 2800 Mayor Bunch: No, I'm saying I'm done with, I'm done with this part. 2801 2802 Mr. Smith: Oh, Okay. 2803 2804 Mayor Bunch: If they're done with, I'm done with it. 2805 2806 Ms. Wright: That's… 2807 2808 Mayor Bunch: Then we can move forward. 2809 2810 Ms. Dyrek: But we'll go, we will go back and identify specifically in the Capital Improvement Program's 2811 so we can adjust that, to adjust, to give you a list of what you would adjust. 2812 2813 Mayor Bunch: Okay. 2814 2815 Ms. Dyrek: In the budget. We're not going to make the adjustments. We'll have Council look at those 2816 and you make the decisions on the adjustment. 2817 2818 Mayor Bunch: Okay. 2819 2820 Ms. Dyrek: Okay. 2821 2822 [inaudible background discussion] 2823 2824 [laughs] 2825 2826 Ms. Dyrek: Robert's gonna handle some other things, first. 2827 2828 Mr. Weddigen: Mayor and Council, if I may, um, to entertain a discussion on the personnel costs, uh, 2829 and, and uh, what factors in the personnel costs, obviously, is, um, you know, staffing decisions, and 2830 then, uh, wages, benefits, uh, some benefits we have control over, some we do not. Um, and then, uh, we 2831 have a line item in the Town Manager's budget, um, that’s a placeholder for what it may cost, uh, for 2832 performance pay increases. So, let me handle each, uh, one of those separately. Um, so, basically, the 2833 staffing levels, we determined the need to separate or segregate the duties and create a position for 2834 Utility Director, versus Town Engineer. Um, so that is one additional position, um. And, uh, then, uh, 2835 cost of living adjustments, so the, the, uh, what we use, have been using for the last few years is the 2836 Western Region Consumer Price Index for, uh, January of the previous year to December of the 2837 previous year and that result for January 1st, 2017 to December 31st, 2017, was 3.1%. So, the cost of

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2838 living has gone up 3.1% and that is reflected in the budget. That impacts the amount of retirement, uh, 2839 contribution, as well as FICA, um, you know. So, that has an impact, um, that, kind of multiplies a little 2840 bit, based on those two rates. The other thing is, uh, benefits costs. So, how we have been managing 2841 benefits, uh, first of all, it’s a professional service, or services and those are exempt from the purchasing 2842 code. So, those aren't brought to Council for approval, but we do is, we use a broker who identifies 2843 multiple entities to provide different services, which in the past, has included major medical, but 2844 currently, includes dental, vision, life insurance, supplemental life insurance, um, and, did I get it all? 2845 Vision, um, and potentially a commuters policy. I am not sure, um, if we've had to go out and get, 2846 commutation policy. 2847 2848 Ms. Dyrek: Commuters policy is covered by the risk pool. 2849 2850 Mr. Weddigen: Risk pool, okay. So, we don’t do that one, okay. Uh, I just haven't seen a quote on that, 2851 for a while. Um, the uh, so the, those quotes are received from multiple entities and we have chosen, this 2852 year, to change our benefits slightly, with the, with the, uh, dental and vision and actually I didn’t, uh, 2853 we didn’t, we were so compressed, in terms of time, that I wasn’t able to reflect those in the wages, uh, 2854 and benefit costs. But, those rates for vision and dental, actually, went down slightly. So, we should 2855 receive, get a savings of about $6,000, um, from that. Uh, the other issue is major medical. And, how 2856 that was chosen was that a couple years ago, we had the option of reduced benefits, higher cost to 2857 employees, in terms of co-pays and a rate increase to the employer of 20%. That was our best option. 2858 The other option was, we go with a, a pool, essentially a, a trust fund established for multiple entities, to 2859 share in the risk and, uh, basically, gather resources to pay for insurance. So, this pool of employers 2860 includes multiple entities throughout the state, um, many school districts, some other cities and towns 2861 and it is called, uh, now, now it is called Kairos and was previously called APEHP. And by doing this, 2862 uh, with one of their offerings, consistent in giving that, just conveying that one option to employees, 2863 which is called a high deductible health plan, in combination with a, um, uh, a health saving 2864 arrangement, or account, um, I always forget that acronym, but an HAS, and an FSA for, uh, restricted 2865 to dental and vision, we were able to shave, uh, and save about $20,000, uh, from that potential increase 2866 at the time. So, we chose to go with, uh, APEHP at that time. Now, the next two years, which this the 2867 third year of this agreement with them, guaranteed us no more than, essentially, a 5% rate increase. As 2868 you can see, uh, you know, the, the prediction for, uh, 20% was only for one year and we felt strongly 2869 that additional rate increases well above 10% would be necessary as we, uh, we have, uh, essentially, 2870 kind of a little bit higher risk, with our experience, comes a little bit more age than the general, uh, 2871 population or other pools. So, our risk was much higher. So, we felt our rates would be much higher 2872 than, uh, 5% in subsequent years. So, staying with Kairos or APEHP, essentially assured us, insulated us 2873 from those potential rate increases, based on our, our risk as a entity, standing alone and being assessed. 2874 So, um, so that’s why we made that choice. Um, then, uh, unfortunately, for, uh, us, the, uh, cost of, um, 2875 ASRS, actually, the rates went up about 1%, uh, for employer contribution and then the Public Safety 2876 Personnel Retirement System, actually, went down slightly. Um, then the, uh, $31,000 is what we have 2877 as a line item in the Town Manager budget and the previous Town Manager had indicated his desire to 2878 present that separately for Council decision or discussion, if they so chose to have such one and right 2879 now, our merit increases have not amounted to that amount. What the employee is entitled to is only 2880 what they qualify for through a performance based review and, uh, basically a waiting and, um, a um, 2881 uh, uh, assignment by the Town Manager, uh, in terms of, uh, what we, we give them and that, it's 2882 potentially 2%, but has been as low as a 0.5%, and in one case, it was actually 0%, but that employee 2883 was actually not being paid at the time, so, um, they were on payroll, but they were out and not expected

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2884 to return. So, um, so the merit increase of $31,000 does, does not, a budget line item does not translate 2885 into a dollar for dollar amount that we plan on spending, um, it has to be earned and it's only given in 2886 proportioned, um, you know, in a small proportion to employees, if they do qualify. Um, and, and, and 2887 the re-, the reason why there's no actuals, cause the actual costs are allocated, uh, once they are, uh, 2888 allotted, um, if, if they are allotted to a department or an individual in a department, those costs are 2889 actually recognized within that department. So, when you get a budget to actual for the year, for a 2890 month, you can see where we are, relative to that rate increase being in the total as well, um, and, 2891 essentially, we have hardly ever, um, gone over budget, um, relative to personnel costs in most 2892 departments. I am only that because, I believe, there was, or is, an exception when it comes to, um, the 2893 Utilities, uh, Waste Water in the past and possibly, this year, in Water and that is due to, essentially, 2894 some of that overtime that, um, uh, James had mentioned earlier. So, um, is the, uh, basically, I am done 2895 with the overview of personnel costs, so. 2896 2897 Ms. Wright: Can I ask you something real quickly? 2898 2899 Mr. Weddigen: Yes. 2900 2901 Ms. Wright: So, the personnel costs increased by $300,000? Is that what you basically, I mean I didn’t 2902 hear that in everything you just explained. 2903 2904 Mr. Weddigen: Yeah, yes. And again, it, it, it is a projection, an estimate and it assumes quite a lot, um, 2905 so, we may not actually exceed the previous year's actual expenditure by $300,000, but, if we don’t have 2906 the appropriation authority, then we can't do that. And, um, basically, it takes into account, uh, 2907 projections like, uh, if employees leave, the, if employment, we are out, we are on the hook to pay their 2908 accrued, uh, paid time off, or vacation. And, and that allows us to be able to do that if, if they do that. So 2909 there is, there's kind of an estimation in that particular cost element. Hopefully we don’t have, we don’t 2910 have that realized in a, in a fiscal year, but we have to accommodate that in the budget. Um, there's also, 2911 uh, the, again, uh, position, it's, it's more than one position, it's a, it's a position and a fraction of another 2912 position, um, that we're asking for, uh, it's, it's all in, uh, basically, Water, Waste Water. And then, um, 2913 yeah, the, uh, 3.1%, the increase in retirement, uh, those are also factors. And then our health did 2914 increase, like I said, 5%, our health care costs, um, insurance. So, um, that, that basically is the net result 2915 of all those changes. 2916 2917 Ms. Wright: Thank you. 2918 2919 Mr. Smith: Can, can I ask a question about paid time off? 2920 2921 Mr. Weddigen: Sure. 2922 2923 Mr. Smith: I worked for government and I got X number of days vacation, sick leave and things like 2924 that. That was always encompassed in my salary. I, I never got extra money. Is this extra money, above 2925 and beyond a salary? 2926 2927 Mr. Weddigen: Uh, Councilmember Smith, yes, our policy allows for people to cash out excess vacation 2928 time, or paid time off, I apologize. And we, and we, by state law, uh, it has been a practice at this entity

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2929 and if it is a practice, you have to continue it, and that is, when a person leaves, the vacation time has to 2930 be, um, paid to the employee. 2931 2932 Mr. Smith: Okay, but it's only when they leave, it's not during their career? 2933 2934 Mr. Weddigen: Well, again, we have a personnel policy that does allow for them to cash what we 2935 deemed to be excess vacation time or PTO that’s accrued, um, the maximum accrual is 320 hours. They 2936 are allowed to cash out any amount that they feel they need to do that to maintain a balance under 320 2937 hours at the close of the calendar year. But, they're also required to keep at least 160 hours on their, on 2938 the books. So, anything between, basically, anything over 320 hours and anything between 160 and 320 2939 hours, they're eligible to cash out. The 160 hours comes from the fact that we have a short term 2940 disability policy that we pay for, if an employee becomes injured or has a qualifying event, um, that's 2941 not related, they are able to, um, have enough time to get to the point where they qualify for short term 2942 disability. So, 160 hours, basically, is mandatory for them to keep. Once they’ve accumulated that 2943 amount, they can't go under it, without permission, so. 2944 2945 Mr. Smith: Okay. 2946 2947 Ms. Clancy: Back to the insurance. You didn’t send out an RFP, which I don’t understand, because you 2948 were working with a broker, I went through this with the school district, so this isn't new to me, um, so 2949 you're working a broker and then you decided to go with a group. 2950 2951 Mr. Weddigen: Yeah. 2952 2953 Ms. Clancy: Um. 2954 2955 Mr. Weddigen: Mayor, Council… 2956 2957 Ms. Clancy: And no, let me finish, please. You went with a group. Does this group offer IRA's or 401k's 2958 for deferred comp plans for employees? Is there anything like that in there for them? And, why do we do 2959 dental and eye, if not everybody is using it? For example, eye glasses, not everybody uses that, so, it, it, 2960 it's just a, a thing that is just sitting there in case? Normally those are things that are inexpensive enough 2961 that you can pick up for $89 a year to get your cleaning. Um, I, I, I think you got a Cadillac plan, but is it 2962 the best price on the market? And, when you come out of the next two years, or next year, will you be 2963 looking? Because, there are multiple companies in this business and I'm, for one, I guess I'm a little too 2964 conservative, but I like to see something go out where there are, at least, four people in the business and, 2965 and there are a combination of schools and municipalities and I'd like to see the different, differences, 2966 because they are all fighting for different groups, so, I, I, I don’t understand why we can't be a little 2967 more… 2968 2969 Mr. Weddigen: Thank you for the question. I, I believe in the initial, uh, review, when we decided to go 2970 with the three year plan from Kairos, uh, was, uh, it, it did include another group, also included looking 2971 at the state, participating with the state and then also, um, again, from our broker, we received quotes 2972 from at least, I'm gonna say at least ten different entities, or providers with different options, or at least, 2973 let me, let me put it, I believe it was at least six entities, with different options, types of coverage. Um, in

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2974 all of those, including high deductible health plans of a similar construct, were much higher, much 2975 higher than the ones we were offered through APEHP, which is now Kairos. 2976 2977 Ms. Clancy: Of course they would be, because you are going through, you are working with a broker. 2978 Well, and, and that’s what brokers do, and they make money on every single one of the employees. 2979 2980 Mr. Weddigen: Yes. 2981 2982 Ms. Clancy: I'm talking about a Kairos. There are more Kairos' out there. 2983 2984 Mr. Weddigen: Yes, and we, we looked at, what was the other one? 2985 2986 Ms. Clancy: But if you don’t bid, how do get the best price? 2987 2988 Ms. Dyrek: There were only two for government that were available. 2989 2990 [inaudible background discussion] 2991 2992 Ms. Clancy: You know what? I'm done. I'm done with it. I, I'm just saying, I, this is the kind of 2993 deconstruction that I get when we ask questions. 2994 2995 Mr. Weddigen: It, it, you know, you, um, when we ask for quotes or bids for insurance companies, uh, 2996 uh, we have to provide quite a bit of information on employees and, in, in uh, in doing so, um, it, it 2997 creates a, it's a lot of work, um, which I don’t want to have to duplicate each year, but, um, I believe, 2998 you know, we did above and beyond what was required. Again, uh, procurement of professional services 2999 is, um, basically, exempted from our purchasing code, but, uh, I know we worked really hard to get, um, 3000 multiple, multiple quotes and bids and most, we considered every option and every angle, because when 3001 we looked at that increase, um, it just seemed like it was insurmountable. We did not want to bring that 3002 forward as the only option. So, what we did for the budget was, basically, bring forward a less expensive 3003 option that provided, uh, excellent coverage for the employees, in terms of what their out of pocket 3004 would be, uh, potentially versus, uh, what it would be with the plan, having cost, costing the Town more 3005 than 20% then it currently was spending at that point in time. 3006 3007 Ms. Clancy: And so you're saying the difference between the broker and choosing Kairos was cheaper? 3008 3009 Mr. Weddigen: Uh, Kairos or, oh, formerly APEHP was much cheaper than going with a broker. I'm 3010 still… 3011 3012 Ms. Clancy: Of course it is. 3013 3014 Mr. Weddigen: Yeah, she's still, she's still not happy with me. So. 3015 3016 Ms. Clancy: Your broker? 3017 3018 Mr. Weddigen: Correct. We, we, we did the… 3019

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3020 Ms. Clancy: Uh, and they wouldn't be, but that’s how… 3021 3022 Mr. Weddigen: Right. 3023 3024 Ms. Clancy: Because they make their money and it isn't just going to be $25,000 trying to negotiate with 3025 independent companies. 3026 Mr. Weddigen: So, she stood to gain $15,000 in commissions had we gone with one of the suppliers that 3027 she was, uh, uh, and this is kind of an estimate, but, uh, when we went and did the research, because we 3028 submitted all the, um, required bidding, uh, information for these, for these other options, the, the 3029 pooled, uh, uh, pooled plans, we, we did not, uh, mention that she was our broker and basically she did 3030 not get $15,000. It saved the town $15,000 not to use her, to approach these pools. Which, was an option 3031 of the pools, they actually told us, you can have us pay your broker and we decided not to because it 3032 would cost the plan money and eventually would be in our rates, so, we did not bring the broker into the 3033 deal. 3034 3035 Ms. Clancy: No, and I wouldn’t expect you to, because you can deal, uh, straight on with them. My 3036 question is, you didn’t bid it, with any of them. So. 3037 3038 Mr. Weddigen: We, we bid it with, again… 3039 3040 Ms. Clancy: And you didn’t ride out anything that, never mind. I, I, I see exactly how it is operated, so, 3041 if, if… 3042 3043 Mr. Weddigen: An RFP would have taken a great deal more of time… 3044 3045 Ms. Clancy: Oh, I'm sure it would. 3046 3047 Mr. Weddigen: And, it would and it would not have resulted in any additional savings. 3048 3049 Ms. Clancy: It would take a little bit of time to do that. 3050 3051 Mr. Weddigen: It would have taken a lot more time to do an RFP and to involve anyone else in the 3052 process. It would have taken a lot more time. As you can see from the process with the, um, with the rate 3053 study that we did [laughs], we're still, we're in our third year, so, um, by then we would have paid 60% 3054 more on medical expenses that we didn’t have to pay. So, you know, we, we did the best, I think we did 3055 an excellent job. I have to pat myself on the back for spearheading that effort, but, uh, you know, 3056 everyone else was involved too, so. 3057 3058 Mayor Bunch: So, it's a three year contract? 3059 3060 Mr. Weddigen: Yes, this is the last year. 3061 3062 Mayor Bunch: With a guaranteed no more than 5% in the face of the ACA, or, uh, Obamacare. 3063 3064 Mr. Weddigen: Correct. 3065

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3066 Mayor Bunch: You, uh, decided that was the best, best approach. I think that's probably accurate. 3067 3068 Ms. Wright: Robert, could I ask you just some small questions that I found through here? Or do you 3069 want to… 3070 3071 Mr. Weddigen: Certainly. Go, go right ahead, I'm sorry. 3072 Ms. Wright: On page 29, postage and copier expense, it was $10,000 to send out a newsletter? What was 3073 that? 3074 3075 Mr. Weddigen: Um, Mayor and Council, I believe that is multiple newsletters. 3076 3077 Ms. Wright: Oh yeah, I'm sure it is. 3078 3079 Mr. Weddigen: Yeah. 3080 3081 Ms. Wright: But, I mean, was that the, just… 3082 3083 [inaudible background discussion] 3084 3085 Mr. Weddigen: That also includes postage for, general postage and all copier expenses, not just for 3086 newsletters. 3087 3088 Ms. Wright: Oh, it's not just that. 3089 3090 Mr. Weddigen: Yeah. 3091 3092 Ms. Wright: Not just the, oh, so that just goes to people that are on the water, there, it's water related 3093 newsletter? Or what is it? 3094 3095 Mr. Weddigen: Um. 3096 3097 [inaudible background discussion] 3098 3099 Mr. Weddigen: Yeah, no, no, it, it's, um. 3100 3101 [inaudible background discussion] 3102 3103 Mr. Smith: Was it the general plan information? 3104 3105 [inaudible background discussion] 3106 3107 Mr. Smith: I got one. 3108 3109 Ms. Wright: But, we don’t get it. We are not on the water. 3110 3111 [inaudible background discussion]

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3112 Mr. Weddigen: So, and that, that's a notable expenditure, simply because of the amount, not necessarily 3113 because it changed. So, it was the same amount in previous years. So, for example, in 2017, only $4,536 3114 was actually expended in that category, but, um, $10,000 is felt to be necessary, in case there are 3115 additional, um, in case a newsletter has to go out, or additional newsletters have to go out, so. 3116 3117 Ms. Wright: Uh, okay. 3118 3119 Ms. Dyrek: The, um, there has been discussions about getting a, um, uh, volunteer run, uh, what do we 3120 call it, visitor's center, up and running. 3121 3122 Ms. Wright: Oh, mm-hm. 3123 3124 Ms. Dyrek: And, we've been talking with Nina Spitzer and, and activating that. There hasn’t been any 3125 movement, um, by the, putting something back in the frontier town area. And, one of the things that they 3126 had going when she was working with the CCMEA was, a newsletter that they would put out. And so, 3127 she asked if we would be available. I don't know if it's going to take up the full $10,000, because a lot of 3128 that is email related, but just putting that together and she's got some volunteers that can help, but there 3129 will be some time with us, in terms of staff and, and, uh, paperwork and printing a few of those. I don’t 3130 anticipate that we would be doing any mailings, unless there is something similar to what we've done 3131 recently with the General Fund. We put things out with the water, uh, water, um, accounts and we did 3132 print newsletters that went out. So, again, depending on the election and how things move with the, the 3133 General Fund and, and the vote, if we have to start that all over again, there are some funds to work on 3134 that project. 3135 3136 Ms. Wright: Got it. 3137 3138 Ms. Dyrek: But, we did spend some money this year on that. 3139 3140 Ms. Wright: On that. And then, another one, on page 31. It is $11,500 for computer and system and 3141 software? At the bottom. 3142 3143 [inaudible background discussion] 3144 3145 Ms. Wright: Is that necessary, or? 3146 3147 Ms. Clancy: Was that for the, um, Sheriff? Or the, uh, for Adam, Marshal? 3148 3149 [inaudible background discussion] 3150 3151 Ms. Dyrek: It is related to the Sheriff. In order for him to communicate and use the Sheriff System, they 3152 have a specific laptop that is required and that is very expensive. That's like $5,000 just for the laptop. 3153 3154 Ms. Wright: So it's, so it's for Marshal Stein, it's not for the Sheriff's Department, correct? 3155 3156 Ms. Clancy: No, it's for Marshal Stein. 3157

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3158 Ms. Dyrek: It is for the Marshal to be able to communicate. 3159 3160 [inaudible background discussion] 3161 3162 Ms. Dyrek: All of our IT, is like, for the General Fund, is put in the, this section of the Administration 3163 Budget. 3164 3165 Ms. Wright: Got it. 3166 3167 Ms. Dyrek: So, that would include him, yeah. 3168 3169 Ms. Wright: And, one more, please. It's over on page 34 and it's the total for legal. It went up $60,000, 3170 which, I find this, um, kind of ridiculous. In the last six months, in attorney's fees, for noise ordinance or 3171 sign ordinance and our light ordinance, we've given them, not, paid them $11,000 just to work on three 3172 little baby ordinances and, of course, as of yet, we have nothing. So, I don’t think we need to expand 3173 there. I mean, their total for six months is $116,499. Maybe we could control that expense a little bit? 3174 3175 Ms. Dyrek: I believe the sign, Ian's here, the sign and lighting ordinance will move forward to the 3176 Planning Commission in July? 3177 3178 Mr. Cordwell: July. 3179 3180 Ms. Dyrek: In July. So, that should be complete. Uh, the noise ordinance, I spoke with, uh, Jeff today. 3181 3182 Ms. Wright: Mm-hm. 3183 3184 Ms. Dyrek: And, uh, he asked if we could bring forward for our Council Work Session, um, I talked 3185 with the Mayor about having that before the next Council Meeting, um, to provide you your options. It's 3186 not as clear cut, um, there's been talk about allowing the County, uh, regulations… 3187 3188 Ms. Wright: Regulations, to County-, right. 3189 3190 Ms. Dyrek: To cover this area and he has some concerns, um, and some obligations on behalf of the 3191 Town he wants to discuss with you. And, there are, we would still require some of our own regulations, 3192 uh, so there's that op-. So, it's a combination of the two, or you go with one, but you can't go with just 3193 the County. 3194 3195 Ms. Wright: County. So, it just seems to me, that's a lot of money to figure that out. 3196 3197 Ms. Dyrek: Mm-hm. 3198 3199 Ms. Wright: Mm-kay. 3200 3201 Ms. Dyrek: And, and we're not done yet. 3202 3203 Ms. Wright: That's what I was afraid of. Okay.

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3204 Ms. Dyrek: The other op-. 3205 3206 Ms. Wright: So, that… 3207 Ms. Dyrek: The other option is, because the County regulations, this really isn't up for the agenda, but, 3208 that's… 3209 3210 Ms. Wright: Nope. 3211 3212 Ms. Dyrek: But that's going to cause us to, perhaps either have regulations for permitting of, uh, the 3213 amplified noise instruments, you know if you are gonna permanently mount speakers, there would have 3214 to regulations on how they apply for a permit and have some kind of inspection. And then changes if it's 3215 not a permanent facility and someone is having a special event permit and we want to inspect that for the 3216 way the amplified sound is set up, that would require different regulations. 3217 3218 [inaudible background discussion] 3219 3220 Ms. Wright: So, basically, when you look at the County's regulations… 3221 3222 Ms. Dyrek: Mm-hm. 3223 3224 Ms. Wright: That said if you're in, in the house, your windows are closed and your door is closed and 3225 you can still hear the sound… 3226 3227 Ms. Dyrek: Mm-hm. 3228 3229 Ms. Wright: It's too loud. So, it's real clean and easy. So, the Sheriff comes and enforces that. 3230 3231 Ms. Dyrek: But, they are assuming you have outdoor music, every outdoor music, um, is permitted. So, 3232 we have to address that. 3233 3234 Ms. Wright: [inaudible] 3235 3236 Ms. Dyrek: And then, are we permitting for, um, an existing brick and mortar establishment that has 3237 regular music? Versus, and it's, it's not just music, though… 3238 3239 Ms. Wright: No, it could be, yeah. 3240 3241 Ms. Dyrek: It's the amplification of the speakers. 3242 3243 Ms. Wright: Speaker, yeah. 3244 3245 Ms. Dyrek: Versus a special event where someone comes in and sets up stage and music and that kind of 3246 thing. 3247 3248 Ms. Wright: Yeah. 3249

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3250 Ms. Dyrek: So, probably two different, and that’s what he'd like to address. 3251 3252 Ms. Wright: So, that, and then the lights, where are we are we on the lights? 3253 Ms. Dyrek: That. 3254 3255 [inaudible background discussion] 3256 3257 Ms. Dyrek: I think, he's, he's ready for that to move forward on the, to the Planning Commission. 3258 3259 [inaudible background discussion] 3260 3261 Ms. Dyrek: Both of those go to the Planning Commission. Okay. All right. I'll check with him. 3262 3263 Ms. Clancy: So, the meeting that we had where they would all work together and Toby would offer… 3264 3265 Ms. Dyrek: Mm-hm. 3266 3267 Ms. Clancy: Has gone by the by? 3268 3269 Ms. Wright: By, yep. 3270 3271 Ms. Dyrek: Well, it's not gone by the by, they just didn’t do it and Toby has never been contacted and 3272 they haven't done anything. 3273 3274 Ms. Wright: But, that's basically what I would have assumed anyway. 3275 3276 Ms. Dyrek: And so, so that's the issue. 3277 3278 Ms. Wright: When you said, "let's all be a team and work to-." 3279 3280 Ms. Clancy: Right. Right. Yeah. 3281 3282 Ms. Wright: That's not, okay. 3283 3284 Ms. Dyrek: Right. 3285 3286 Ms. Wright: I just get them… 3287 3288 Ms. Clancy: So, instead of them being at the table to work and not have us do something to them… 3289 3290 Ms. Dyrek: It would require legislation. 3291 3292 Ms. Clancy: They opted to make the Town do something. 3293 3294 Ms. Wright: We'll be good, yeah, okay. 3295

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3296 Ms. Clancy: Okay. [inaudible] 3297 3298 Ms. Dyrek: Which means we have to regulate it. 3299 Ms. Clancy: Oh, absolutely. 3300 3301 Ms. Wright: That's the bot-, well that's, yeah. 3302 3303 Ms. Dyrek: And this was our hope not to have go through all that. 3304 3305 Ms. Wright: Exactly. There's no way that was ever gonna happen. 3306 3307 Ms. Clancy: Nuh-uh. 3308 3309 Ms. Wright: Okay. So, okay, so, [inaudible]. 3310 3311 Ms. Clancy: That's why the attorney's fees. [laughs] 3312 3313 Ms. Wright: Well, they're a little bit ridiculous, okay, cause we don’t have anything yet and this is six 3314 months of fees. So, how long does it take to do three little tiny, baby ordinances? Okay, and our water 3315 issue, we were charged $18,000 for some of that. So, it just looks to me like there's, I would just think 3316 they don’t need any more compensation and we've got them here for more. So, that'd be something to 3317 consider. That's all. Thank you. 3318 3319 [inaudible background discussion] 3320 3321 [laughs] 3322 3323 [inaudible background discussion] 3324 3325 Ms. Dyrek: We thought that we'd have the Department Head's just give a overview, um, and then I do 3326 need to talk more about the, uh, law enforcement and the Sheriff's contract. 3327 3328 Mr. Baxley: Okay, I don’t know where you're at in your budget, what page is this on, Robert? 3329 3330 Mr. Weddigen: For planning? I mean for building? 3331 3332 Vice Mayor Sova: 45? 3333 3334 Mayor Bunch: 40, 45? 3335 3336 Mr. Baxley: Mine say one of four, because I printed four pages, so. 3337 3338 Mr. Weddigen: 45, sorry. 3339 3340 Mayor Bunch: Yeah, 45 is your expenditures. 3341

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3342 Mr. Baxley: So, it basically, if you, um, go all the way to the bottom, right hand corner at the bottom of 3343 the budget, you are gonna see that there is $78,000 decrease from last year. Um, as you can all 3344 remember, we had, uh, bleachers in there. There is some changes. We have moved some other, uh, line 3345 items that were in other departments into, uh, Building Department. Those included items like, um, the 3346 electric, water, sewer and trash. That came over from Administration. You'll see that in Facilities, which 3347 is, uh, 2051, under Facilities. Um, that's set at $30,000. Actuals, um, in 2017, well actually the budget 3348 for 2017 at $28,432, um, it's prudent just to round it up by $1,200 to make sure that we cover all of those 3349 expenses. Then, we also had, um, non-professional expenses that came over from Administration. That 3350 took care of the, um, cleaning crew, also that, that comes in and cleans the buildings. It also takes care of 3351 security systems and those kinds of things. So, those were actuals from Admin and there was $30,100, 3352 um, there last year, plus we had some already existing HVAC contracts, heating, ventilation and air 3353 conditioning where we do, uh, we have a service contract every year to take care of all the AC units on 3354 the two buildings. That was included in that, too. Um, and then, moving on, the big number is, is we 3355 moved all of the fleet maintenance to my department, too. It came out of Engineering. Um, currently, 3356 uh, it shows that there's a $70, or, I'm sorry, $82,500 in, in the budget now, setup as a new division. It is 3357 gonna allow us to track stuff a little bit better. Um, we also procured a, uh, a software package that'll 3358 allow us to keep, track that kind of stuff. The number came from, there was $20,000 shown in there 3359 from, uh, 2017 in Engineering and then they had, um, additional expenditures that, um, included about 3360 an ex-, an extra $51,000 for last year. So, taking the actuals and what they had budgeted in there, um, 3361 brought us up to $82,500. Other than that, everything else was fairly minor in the budget. Um, there was 3362 a, um, did look to, two other things, there was a, um, a scanner in there to purchase for, um, as you all 3363 know, if you’ve been in the office, you see all the little plans everywhere that store, we are required to 3364 store plans for a period of time, even after the job is completed, um, we are reaching a point of critical 3365 mass where, either we need to find more room, or we need to find a way to electronically store it. The 3366 scanner, um, I had, uh bid out, it was $5,000 to have the scanner in there, which would allow us to start, 3367 uh, electronically storing some of those things. 3368 3369 Mayor Bunch: Big wide one? 3370 3371 Mr. Baxley: Uh, 36 inch wide, wide format scanner, yes. 3372 3373 Mayor Bunch: Okay, so you can do, uh, maps with it? 3374 3375 Mr. Baxley: We, we could copy maps. This does not include a printer. This is just for scanning 3376 documents. We're not, we're not looking to try and reproduce stuff. Um, just, this is strictly trying to cut 3377 down on the amount of storage we have to have for those things. Um, another piece that was a large 3378 ticket item that I had, uh, glanced over and I didn’t mention was, um, for repairs out here in Town Hall. 3379 Um, we reached out, had, uh, bids taken and, um, basically, we have $82,000 to repair our parking lot 3380 out here. That parking lot is the, is, has been there since this building was built and has had no repairs to 3381 it. We continue to, uh, um, patch hole, um, everything south of the entrance, I'm sorry, north of the 3382 entrance is a little bit older. The stuff that is south of the entrance, um, had a slurry coat put on it, uh, 3383 years ago. The, uh, the actual bid came in, uh, high of $111 and, uh, that would allow us to go in and 3384 mill and pave, take out the broken medians that we have here in the parking lot, fix those, and, uh, put 3385 new asphalt down over the top of it. What that means to us is, um, we wouldn’t touch that again for, 3386 probably I'm going to have to guess, we wouldn’t have to even slurry over the top of it for at least 15 3387 years. That would be an estimate.

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3388 Ms. Wright: Is that a priority? A safety issue? Or is it just… 3389 3390 Mr. Baxley: What that is, is, um, if we don’t do it soon, it's gonna get worse. Last year, we had to have, 3391 uh, people come in and saw cutouts chunks of the, uh, northern section, to just put in patches in there 3392 and it continues to degrade over time. So, we can… 3393 3394 Ms. Wright: Kind of like the roads? 3395 3396 Mr. Baxley: It is. 3397 3398 Ms. Wright: Yeah. 3399 3400 Mr. Baxley: We can repair it now and bite the bullet and put it in there and save ourselves for another 15 3401 years or so, or we can continue to let it to degrade and it's probably gonna cost us a little bit more in the 3402 future. 3403 3404 Ms. Clancy: What if it was in next year's budget? [laughs] 3405 3406 [inaudible background discussion] 3407 3408 Mr. Baxley: Absolutely. I mean, it, that's, yeah, 12 months isn't gonna kill you, but it's going to, you 3409 know, at the same point, in 12 months, next year, we'll be asking the same question. 3410 3411 Ms. Clancy: Okay, good. Sure. 3412 3413 [inaudible background discussion] 3414 3415 [laughs] 3416 3417 [inaudible background discussion] 3418 3419 Ms. Clancy: Sure sounds pretty simple. [laughs] 3420 3421 Mr. Baxley: Any questions? 3422 3423 Ms. Clancy: Yours is pretty simple 3424 3425 Mr. Baxley: Yeah? 3426 3427 Ms. Clancy: You didn’t get into anything on the rodeo. I guess we've spent everything we possibly can. 3428 [laughs] 3429 3430 Mr. Smith: I'm, I'm just being impressed with the number of people who were smart enough to wear 3431 long sleeved, uh, blouses and shirts, because I'm freezing. 3432 3433 Ms. Wright: Because it's freezing in here?

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3434 [inaudible background discussion] 3435 [laughs] 3436 3437 Ms. Wright: See, he's all zipped up over there. 3438 3439 [laughs] 3440 3441 Mr. Baxley: Yeah, but we paid the price all day long wearing the long sleeves, just so can appreciate 3442 that. 3443 3444 [laughs] 3445 3446 Ms. Wright: Thank you. 3447 3448 Ms. Clancy: For this one occasion. 3449 3450 [inaudible background discussion] 3451 3452 Mr. Baxley: Just for the one occasion. 3453 3454 [laughs] 3455 3456 Ms. Clancy: Thank you. 3457 3458 Mr. Baxley: You're welcome. You're up, Ian. 3459 3460 Ms. Dyrek: Ian's on page 39. 3461 3462 [inaudible background discussion] 3463 3464 Ms. Dyrek: 39. 3465 3466 Mr. Smith: 38. 3467 3468 [inaudible background discussion] 3469 3470 Mr. Cordwell: 39. 3471 3472 Mr. Smith: 39 for the numbers. 3473 3474 Mr. Cordwell: Planning Department remains the same size in addition to processing amendments to the 3475 General Plan, rezoning applications, of which we have quite a few either applied for or in process. Uh, 3476 site plans, applied for or in process. Building permits, which have been up, um, we also oversee 3477 economic development. You'll see $11,000 set aside for the trolley, um, which appeared to have been, 3478 had some success and we'll see what happens again in the fall. Uh, we also oversee the, uh, both the 3479 development and maintenance of trails, and that comes from several different budget funds. Um, most of

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3480 it comes from, uh, past development fee money that we have to use up, uh, the Council approved 3481 money, I believe, is from Spur Cross and that is mainly for maintenance of what we have, so. We cannot 3482 use development fee for maintaining trails. But, we do have projects, uh, in the town core where we 3483 have, uh, easements given, or right of way, where we are trying to make the connections through the 3484 town core. Um, Mike wants to take on a project of, uh, connecting Cave Creek Town Hall to the town 3485 core, at least Spur Cross. We've had studies done and we know what the materials would take. We've got 3486 the guys to do the work. Uh, so that would be a huge connection to be able to have people able to walk 3487 from here to there. 3488 3489 Ms. Wright: That'd be nice. 3490 3491 Mr. Cordwell: When it's cooler. 3492 3493 Ms. Wright: Yeah. 3494 3495 Mr. Cordwell: Uh, last time I did it was a couple months ago and it was windy and hot, so. Uh, so with 3496 that, I'll answer any questions you may have. 3497 3498 Mayor Bunch: Ian, where's your copy and mailing numbers in here? 3499 3500 Mr. Cordwell: My what? 3501 3502 Mayor Bunch: Your copy and mailing numbers in here. 3503 3504 Mr. Cordwell: Copy and mailing? 3505 3506 Mayor Bunch: Yeah, for like when you gotta notify people within 6, 6, 60,000 miles? 3507 3508 Ms. Dyrek: For the advertising. At the top. 3509 3510 Mr. Cordwell: Yeah. Supplies? 3511 3512 Mayor Bunch: Yeah. 3513 3514 Ms. Dyrek: No, it's under, uh, advertising services, under 2007. 3515 3516 Mr. Cordwell: Yeah, we, we have quite a, an expense, um, for rezoning and special uses. We've, uh, 3517 notify people 1/2 mile out, uh, and if we don’t double advertise, we do that twice. Uh, we have checked, 3518 we rely on the addresses provided by the Maricopa County Assessor and if people don’t keep that up, 3519 then we get several things back, so. Uh, another way that we get information out is through the utility 3520 bills, uh, which are doing with the ordinance amendments coming to the Planning Commission, uh, in 3521 July and August. 3522 3523 Mayor Bunch: What was it before we changed that? [inaudible] 3524 3525 Mr. Cordwell: Uh, 300 feet, in most cases.

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3526 Mayor Bunch: Which wasn’t enough and half mile might be too, cause we, you're actually notifying 3527 people in adjacent communities, as well. 3528 3529 Mr. Cordwell: Right, we, we have no limit on that, uh, for example, when we did the rezoning at, uh, 3530 Petersville, we got people into Carefree when we did the, uh, Silverman's Estate, we went into the 3531 County, uh, because 28th street is right there at the border, south of Joy Ranch. Uh, so, it went all the 3532 way to, you know, 20th, 24th. Um, which those people are welcome to come and give their input. 3533 3534 Mayor Bunch: Yeah, well, how much, yeah, how much difference did that make in your, in your 3535 expenses there? 3536 3537 Mr. Cordwell: Uh, probably cut it in half. 3538 3539 Mayor Bunch: Yeah, okay. 3540 3541 Mr. Cordwell: Uh, site plans, we increased it to 500 feet. 3542 3543 Mayor Bunch: Mm-hm. 3544 3545 Mr. Cordwell: Uh, which is probably more reasonable. 3546 3547 Mayor Bunch: Yeah, okay. 3548 3549 Mr. Cordwell: Especially in the town core, when we get cases, cause the lots are smaller and we get 3550 more, more of a reach. 3551 3552 Mayor Bunch: So, as a general feeling, half mile is a little excessive? From the… 3553 3554 Mr. Cordwell: I think there might be a middle ground there. 3555 3556 Mayor Bunch: Okay. 3557 3558 Mr. Cordwell: Because we have large acre lots. 3559 3560 Ms. Wright: Because of the large lots, we need that. That wouldn’t even be from one front door to 3561 somebody else's. 3562 3563 Mayor Bunch: Well, but, yeah, but you could massage it if you, [laughs]. 3564 3565 Mr. Cordwell: Like five, five parcels, for example, in TR89, TR190, would be a third of a mile. 3566 3567 Mayor Bunch: Yeah. 3568 3569 Mr. Cordwell: Not half. 3570

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3571 Mayor Bunch: I was, I was just curious because I know that was one of the things that you all end up 3572 getting a lot of stuff coming back, and. 3573 3574 Mr. Cordwell: We do. I, I get stacks and we check them and [inaudible]. 3575 3576 Mayor Bunch: We spent the money to send them and then they come back to you. 3577 3578 Ms. Clancy: At almost 50 cents apiece. [laughs] 3579 3580 Mayor Bunch: We have boomerang notifications. 3581 3582 [laughs] 3583 3584 Mayor Bunch: Yeah, okay. 3585 3586 Ms. Clancy: That adds up. 3587 3588 Mr. Cordwell: It does. 3589 3590 Ms. Wright: Well, this isn't really yours, but I forgot it before the Spur Cross Ranch Conservation area, 3591 but, it's sort of yours. The transfer to the Trails Fund of $100,000. Could that not be put in the General 3592 Fund? Because why does trails need $100,000? 3593 3594 Mr. Cordwell: Um, it was set aside specifically. I remember the Mayor asked the question for 3595 maintenance, uh, because we have no income for maintenance of trails that we have. Uh, we can't use 3596 development fee money, historically, for maintenance. It can only be for new, new trails. 3597 3598 Ms. Wright: So, I thought it was as there are volunteers. No? 3599 3600 Mr. Cordwell: No. 3601 3602 Ms. Wright: Maintenance? 3603 3604 Mr. Cordwell: No. Um, because there are cases where we, you know, bid out. 3605 3606 Ms. Wright: [inaudible] 3607 3608 Mr. Cordwell: Well, we have probably four or five different companies that will do the work. We have 3609 one that does the job really well, but when he's not around, we have to rely on people to just do, you 3610 know, as I said, I walked to the town core and got swatted in the head with branches and it's good to do 3611 that feet on the ground survey once in a while. 3612 3613 Ms. Wright: Thank you. 3614 3615 [inaudible background discussion] 3616

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3617 Ms. Dyrek: On page 49 is Law Enforcement and the largest, um, expenditure there is the MCSO Law 3618 Enforcement Contract. So, I just wanted to highlight that we have an IGA with them. This current IGA 3619 expires June 30th. It is a three year agreement with the option to renew for one year, up to three years. 3620 So, we've had this for six years. Um, and they are proposing a new IGA. So, they, per the IGA, the one 3621 that's in place and the proposed IGA, it states that by February 20th each year, they are to, um, propose 3622 their, uh, budget, in writing, to the Town. Which they did, on February 15th. And so, included in your 3623 budget is $496,000, basically. It's on page 49, uh, under Professional Service, you'll see $496,100, is 3624 what's included. And that's what we put in the budget. We did have a meeting with them on Friday, um, 3625 we'll have further discussion in Executive Session about that contract, but they, uh, were having 3626 discussions about something other than this number. And so, um, per the contract that's in place, and per 3627 the contract that is being proposed for the, for the Council to approve, it does say February 20th, is the 3628 deadline to submit their proposed budget. So, that is what we have in the contract and that's what we're 3629 moving forward with at this time. 3630 3631 [inaudible background discussion] 3632 3633 Mr. Weddigen: Um, Mayor and Council, the Magistrate Court Budget is based on what we, what's 3634 projected to be charged to us by, uh, the Cave Creek, Carefree Court System, um, and again, that's, uh, 3635 that's a strategic partnership with the Town of Carefree and providing… 3636 3637 Ms. Clancy: For them. 3638 3639 Mr. Weddigen: Court services for the, uh, joint, uh, service area of Cave Creek and Carefree. Um, the, 3640 the amount, um, here is, uh, by my estimation, less than the amount that we would have paid, um, 3641 essentially, two to two and half full time equivalents to perform the, the same function. And, uh, again, 3642 our, our, uh, system at the time of the takeover, uh, basically only had one person working in it. Um, and 3643 there was sufficient cause for us, and concern for us to ensure that there was proper management and 3644 oversight and, uh, the only way we could, um, do that at relatively the same cost was to, um, join with 3645 Carefree to, um, ensure that that proper level of, uh, effort was given towards the services being 3646 provided by the Court System. 3647 3648 Vice Mayor Sova: Do they pay the same approximate number? 3649 3650 Mr. Weddigen: Mayor, Council, the, I'm going to say yes, but I don’t know for certain, because I did not 3651 get an extract of their budget proposal for the same fiscal year. 3652 3653 Vice Mayor Sova: Okay. 3654 3655 Mr. Weddigen: But, it, I, initially, that was the case. 3656 3657 [inaudible background discussion] 3658 3659 Mr. Weddigen: Okay, um, Mayor and Council, the, uh Finance Department, uh, basically, um, we 3660 provide supervision for the, um, utility billing function and also do all the accounting, accounts payable, 3661 payroll, uh, you know, help with financial planning, um, the budget, that kind of thing. Uh, we, uh, have, 3662 uh, certain notable expenditures that are recurring and that is the audit of the financial statements, uh

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3663 Department of Revenue, uh, still maintains its mandate, um, a few year ago, about three years back, the, 3664 the, uh, state government decided to make, um, the cost of, the entire cost of the Department of 3665 Revenue, uh, to take it out of their General Fund, in terms of funding source, and make it the 3666 responsibility of all the cities and towns and communities and counties, uh, within the state. Uh, our 3667 prorated share is about, of that cost, is about $12,000. So, that’s the amount that's being requested in the 3668 budget. Uh, Software Maintenance did go up, um, uh, last year, this year. And, uh, that amount, uh, 3669 which part of it is allocated to utilities is about $29,000 in total and the Finance portion is about $13,000. 3670 And our bank service fees are now, uh, starting to climb up a little bit more. People have demanded 3671 access to electronic payments more so than ever, and we've been able to, uh, facilitate that at as lowest 3672 cost as possible, but it still, it's a constant source of, uh, cost to us, uh, in terms of credit card use. So, uh, 3673 that's $10,000 for bank fees. Includes all the credit card processing fees that we incur to allow people to 3674 pay for things like, business license and permit fees, um, by credit card. Um, development impact fee 3675 audit, um, this is required, uh, in, in the changes in the development impact fee ordinance, um, and, or 3676 development impact fees that we, uh, basically, uh, adopted changes to back in 2014. Uh, '16 was our 3677 first review, '18 is our next review, so, we, we, pay for it in '19, though. So, we have to have a review of 3678 our development impact fees, or, um, development impact fee reports and, um, basically, um, the review 3679 and compliance with our IIP and everything else that went the formation of the development impact 3680 fees. So, that amount is necessary to pay for that. Um, over all, our budget, actually, is going down. And 3681 the reason why it's going down is, essentially, because, um, the, uh, amount, the contract with our 3682 Financial Advisor will be expiring, um, uh, you know, we, we, hired a Financial Advisor, essentially by 3683 our fee, um, and it was found that we did not want to use the services, so we just, um, had it in the 3684 budget as a placeholder in case there was a need for one. Um, it has been determined that there isn't a 3685 need for one, so, we continue this next year, fiscal year '19 without one. So, if in the case we do need 3686 one, we can always go back out and RFP again, and then contract with it, but we would have to take the 3687 funding from another source, such as Contingency. So, um, so, we, we're still safe on that. So, taking it 3688 out is fine, too. Um, so, um, that’s about it on the highlights, for Finance. Um, then moving on the Town 3689 Council. 3690 3691 Ms. Dyrek: Yeah, but we need to talk to Council about, um, the community grants, in conjunction with 3692 the Special Events. So they can kind of tie those together. We've got $20,000, again, in the budget for 3693 community grants. Um, but, we ended up funding the Wild West Day parade, rather than give funds 3694 towards the event. We funded it by the Town sponsoring the parade, so that our insurance covered our 3695 right of way and then we paid for the barricade and, uh, law enforcement for the parade. Um, but there 3696 are, there are funds under special event on page 70, um, for other events. Wild West, Wild West Days, 3697 uh, holiday, uh, we just put in holiday events slash parade and kind of left it there, um, at Council's 3698 discretion. 3699 3700 [inaudible background discussion] 3701 3702 Ms. Dyrek: Where did you move it? 3703 3704 [inaudible background discussion] 3705 3706 Ms. Dyrek: Oh, you moved it to, oh, I'm sorry, it's there, it's just moved to Other Event Expenditures. It's 3707 just called Other Events, okay. But, there's still $20,000 in the, um, Council budget, on page 59. 3708

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3709 Mayor Bunch: Yeah, I kinda like the way we're doing this now, with, with the parade. It gives us arm’s 3710 length from the organizations there. Like Wild West Days. 3711 3712 Ms. Dyrek: Okay. Well, either way, it needs to come to Council for authorization. 3713 3714 Mayor Bunch: Okay. 3715 3716 Ms. Dyrek: And, it's not really designated in the budget. 3717 3718 Mayor Bunch: Okay. 3719 3720 Ms. Dyrek: If you decide you want to do that, Council should declare we are sponsoring it, and, and 3721 authorize the expenditure then. Even though the dollar amount isn't so much, it's we want Council to say 3722 we are going to sponsor a certain event. 3723 3724 Mayor Bunch: Okay. 3725 3726 Ms. Dyrek: Because it could be any event. 3727 3728 Mayor Bunch: Yeah. 3729 3730 Ms. Dyrek: Snow, Christmas, you never know. [laughs] 3731 3732 Mayor Bunch: Yeah. 3733 3734 Ms. Dyrek: Do we have anything special on, on Taste of Cave Creek? On page 70? Under the Special 3735 Events? 3736 3737 Mr. Weddigen: That, yeah, uh, on page, uh, 70. Let me just pull that up here so that anybody could see 3738 part of it, at least. So, overall, the, uh, budget went down and we revised it based on experience now, in 3739 terms of, uh, what we, you know, do relative to those things that cost, that cost money. So, uh, it goes 3740 down, basically, uh, um, $11,200 for the Taste of Cave Creek. And then, um, yeah, so, uh, those forms 3741 are working, no, they are working. So, yeah, so, basically it goes down. You know, we do have money 3742 set aside there in case we do actually have to hire people to do some of the work, um, but we actually 3743 have, uh, you know, usually a good, uh, source of volunteers, so we, we rely on volunteers for much of 3744 the labor costs and it just didn’t seem, uh, beneficial to carry forward that amount, uh, um, you know, in 3745 total, for, for, for labor. Oh, uh, not actually labor, I'm sorry, sorry, I apologize. It did, labor did go up 3746 $600. The, the amount I'm thinking of is, uh, the, uh, supplies. We just don’t spend that much money in 3747 supplies, so. Um, one of the things that we used to spend money on that we don’t anymore, and, uh, we 3748 were testing it out, but now we've done it a couple years, was that we used to buy all the paper products, 3749 for all of the, uh, restaurants, and we decided not to do that anymore, um, so that actually was, resulted 3750 in a, a great deal of cost savings that we are now able to, basically, take advantage of. They were kind of 3751 used that idea, we haven't had any, uh, negative feedback and, um, you know, so. And that is all for 3752 Special Events. 3753 3754 [inaudible background discussion]

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3755 Ms. Dyrek: Yeah, we should cover that trail fund. 3756 3757 Mr. Weddigen: Okay. 3758 3759 Ms. Dyrek: It's kinda. 3760 3761 Mr. Smith: I may missed it, but is there money in here for the trolley? 3762 3763 Mr. Weddigen: Yes, yes, that was in Economic Development, I'm sorry, uh, Planning and Economic 3764 Development. 3765 3766 Ms. Dyrek: Right. 3767 3768 Mr. Weddigen: Yeah, it was, um, previously allocated for something else, we just carried it forward, you 3769 used it for the trolley, so we are going to use it for the trolley again and carry it forward as the trolley, 3770 um, so, it, it didn’t really add anything to the budget from year to year. But, uh, yeah, it's in there. Um, 3771 we had six stops in the Town of Cave Creek? 3772 3773 Ms. Dyrek: Oh no, more. 3774 3775 Mr. Weddigen: More? 3776 3777 [inaudible background discussion] 3778 3779 Ms. Dyrek: Because we had to buy the signs. 3780 3781 Mr. Weddigen: Yeah, ten stops. 3782 3783 Ms. Dyrek: That's how I know. 3784 3785 Mr. Weddigen: Um, so we are on Trails, which is on page 79. So, this is a, uh, Special Revenue, or, 3786 sorry, a Capital Project Fund that was created to, um, take in money, excess money, the first $100,000 in 3787 excess money deemed excess in the, uh, Spur Cross Conservation Area, uh, Operation Fund and it was 3788 set aside for trails, um, and, um, it's used for maintenance and trail related improvements. And, 3789 essentially, we budgeted quite a bit of money out of there, it, it, it, those, those projects that were 3790 identified don’t actually cost that much. Um, and those trails projects, uh, and I apologize because this is 3791 kind of a developing, a developing thing, actually we're listed under, um, under, um, Parks and Trails, I 3792 believe. 3793 3794 Ms. Dyrek: Yes. 3795 3796 Mr. Weddigen: And, um, Parks and Trails, if I can find Parks and Trails. 3797 3798 Mayor Bunch: 81. 3799

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3800 Mr. Weddigen: 81, thanks. Uh, take it back. Uh, the other one. So, there's four sources of funding for 3801 these related, um, uh, projects and that's uh, where's the other one, uh, Parks and Trails, it must be, now, 3802 where did it go. 3803 3804 [inaudible background discussion] 3805 3806 Mr. Weddigen: Oh, Open Space and Trails. Sorry, it's in Open Space and Trails was on page 89. So, 3807 you, you, you basically have General Fund, Parks and Trails and Streetscape Projects Maintenance, 3808 potentially coming out of Planning, but, uh, now we have three other funds that are involved. One using 3809 old development impact fees, one using new development impact fees and the other one using this 3810 $100,000 and that is the one we are on, right now. Trails. Which is coming from the Spur Cross 3811 Operational Fund. Um, and so, it's kind of all intermingled and I apologize for the confusion, but, uh, the 3812 Streetscape and the Trail Improvements all ended up on page 89, but could be funded from Trails, if 3813 there isn't enough money in Open Space and Trails, which is the old development impact fee money 3814 that's carried forward. And then, um, Open Space and Trails is the, uh, new, um, impact fee money 3815 that’s coming in. So, they are all kind of interchangeable, in terms of, of, what projects qualify, um, but, 3816 um, whatever we do with what we actually have, uh, have going on, will not exceed the, essentially, the 3817 budget authority within each of those Operations or Funds, so. They are all kind of tied together, so. 3818 3819 Ms. Dyrek: [inaudible] 3820 3821 Mr. Weddigen: Yeah, and, again, the list of projects, essentially, is on page 89 and then the one 3822 screening project, um, which is on a different page under the Trails Fund, I believe. 3823 3824 Ms. Dyrek: On page 79. 3825 3826 Mr. Weddigen: On page 79. So, if, uh, Ian, Ian's gone, but I do probably have more information on these 3827 projects if you would like, uh, we can go to the, uh, Supplemental Schedules, if we need to, to better 3828 describe these individual projects, um. 3829 3830 Ms. Dyrek: Well. 3831 3832 Mr. Weddigen: Nope? 3833 3834 Mayor Bunch: Alright. 3835 3836 Mr. Weddigen: What else do we have? Open Space Acquisition, I just want to mention that again. So, 3837 um, previously we had budgeted $50,000, out of this fund in the prior year, to explore opportunities to 3838 use the remaining funds in a, I guess a future year, to actually acquire open space. Um, because an effort 3839 really isn't coming forward, in terms of, uh, fruition, we, we did, we for-, we, we basically, just didn’t 3840 budget for it. Um, so the money actually stays there at this point, uh, for future use for Open Space 3841 Acquisition. And then, um, the Grants Fund, which is, uh, on page 86, again, it identifies those two 3842 grants that I was telling you about, uh the Kiwanis Grant for Desert Awareness and then the, uh, parking 3843 lot, from the Arizona State Parks, um, we are reapplying for that one, um, we already applied for it once 3844 and got denied, but there is a chance that we could reapply for it again. So, it's still there. Um, those are 3845 the two grants that we have identified as potential, um, and there is additional miscellaneous of

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3846 $500,000 that is just there, in case we come across a grant we could qualify and do qualify for, we need 3847 to have the appropriation authority to expend it. So, that's what's down there is $500,000, other, 3848 unidentified grants. Um, that's again, that's page 86. 3849 3850 Ms. Clancy: I have a question. 3851 3852 Mr. Weddigen: Yes. 3853 3854 Ms. Clancy: Um, are we saying we, uh, applied for a community grant with Kiwanis? 3855 3856 Mr. Weddigen: I don’t, I don’t know that that was applied for, yet, or, um, um. 3857 3858 Ms. Clancy: Which is $140,000, is the Kiwanis grant for this [inaudible]. 3859 3860 Mr. Weddigen: Yes, that's, part of the $140,000 is the $60,000 from that particular grant, that's, that's an 3861 estimate. I, um, the department provided the estimate to me, I don’t have any more detail than that. 3862 3863 Ms. Clancy: Okay. 3864 3865 Mr. Weddigen: So, I don’t know what the qualifying conditions are. I don’t know how probable it is we 3866 could qualify, um, I just, I just don’t know. I apologize. 3867 3868 Ms. Clancy: Well, is that, replacing the playground? Would that be replacing the playground there? At 3869 Desert, that got painted and redone and by the Girl Scouts three years ago or something? 3870 3871 Mr. Weddigen: I, I think that would be to purchase or, you know, purchase new playground equipment, 3872 or to replace, uh, equipment that, okay, sorry. 3873 3874 Mr. Baxley: Okay, to answer your question. 3875 3876 Ms. Clancy: Sure. 3877 3878 Mr. Baxley: No, it didn’t have anything to do with what the Girl Scouts did, um, they provided some 3879 barricades at the end of the parking lot with, this, on the north end. 3880 3881 Ms. Clancy: Well, they painted, the, the thing one time, too. 3882 3883 Mr. Baxley: Um, actually, Town Staff painted, um, a bunch of the stuff there, too. We had some graffiti 3884 that came in, a lot of things got painted. Um, to answer your question, I was approached, uh, this last 3885 year, and, um, was encouraged that we need to put it in the budget because we had no way of taking care 3886 of that under our budget authority in the 2018. So, looking forward in '19, replacing that playground 3887 equipment may be an option. 3888 3889 Ms. Clancy: Well, as someone who took my grandson there for a very long time, and watched it, 3890 literally, degrade, year after, well, month after month, actually, I mean, it was always a lesson of, I don’t 3891 know why anybody would rip that out. Well, what happened to this? And, it would be every few

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3892 months. I'm wondering if it's even worth it? Or, is it a requirement? Um, if we could put something else 3893 in that might have a, the ability not to have graffiti put on it, I mean, what people have done to that park 3894 over the years is a sin and it, it, and do we even know if anybody is going there? I can tell you, I only 3895 was able to do it because I had a very large dog, off the leash, and, um, he would bite anybody, but he 3896 was at least gonna run and bark, and there are a lot of people going up and down that wash, I don’t know 3897 if it's changed, that are homeless. Or walking through there. 3898 3899 Mr. Baxley: So, to answer your question as to whether or not people use it, um, I can tell you that, from 3900 our staff that are there, they see, um, parents and their children using the playground equipment during 3901 the cooler time of the year, this time, not so much. 3902 3903 Ms. Clancy: No, I didn’t either, it's too hot. 3904 3905 Mr. Baxley: The, uh, um, we have through the, um, Desert Awareness Committee, it's a self-proclaimed 3906 committee that, um, takes care of things, they bring in, uh, schools every year and hold classes there, 3907 February through March. So, um, they do things similar to gold panning, they teach kids, uh, um, things 3908 like, um, how to excavate for, um, fossils, you know, we'll hide things and pans and bring in classrooms 3909 in there. It does get used a, um, a lot more than what we like to think it gets used. Um, generally, if you 3910 go out there, uh, even, I was out there the other day and, and there was two people in the park at that 3911 point in time. And, it was over 100 degrees at that point in time, too. 3912 3913 [inaudible background discussion] 3914 3915 [laughs] 3916 3917 Mr. Baxley: They, they don't… 3918 3919 Ms. Clancy: And the fish? And how many times have we replaced the fish in the pond? 3920 3921 Mr. Baxley: No, we don’t replace any fish in the pond. 3922 3923 Ms. Clancy: Well, no, did we finish doing that? 3924 3925 Mr. Baxley: Um, well, it… 3926 3927 Ms. Clancy: Or do the Desert Awareness people do the fish? 3928 3929 Mr. Baxley: There are no fish in the pond. 3930 3931 Ms. Clancy: There used to be, and then. 3932 3933 Mr. Baxley: There is no pond. 3934 3935 Ms. Clancy: Well, okay. It's about time it went away because I got tired of watching them die. 3936 3937 [laughs]

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3938 Ms. Clancy: No, really, it was just insane. 3939 3940 Mr. Baxley: That has been a cost request to restore water to that, that side of the facility and the electric 3941 to the rotunda area. It hasn’t happened in the past because it was wiped out in one of the floods. 3942 3943 Ms. Clancy: Right, I remember that one. 3944 3945 Ms. Wright: So, it's not a priority. 3946 3947 Ms. Clancy: No, but, I, you know, the playground stuff, maybe we should look at playground stuff that 3948 doesn’t require painting. I mean, [inaudible]. 3949 3950 Mr. Baxley: No playground stuff does not require painting. 3951 3952 [laughs] 3953 3954 Mr. Baxley: When it's vandalized. 3955 3956 Ms. Clancy: I, maybe we should put cameras up, so we can keep an eye on the property and then know 3957 who to go after, particularly students, if it's being vandalized by kids. That stuff, that stuff is pretty 3958 cheap. 3959 3960 Mr. Baxley: Suggestion is cameras at the park. 3961 3962 [laughs] 3963 3964 Ms. Dyrek: We are in the middle of a big camera project, right Brian? We are working on our facilities 3965 first, in terms of the Water Plant and the Waste Water Plant. So, it's not at the top of the list and, and the 3966 trouble we're having is getting, in order to watch it, you have to have some connectivity and going 3967 around the mountain, we've had some difficulty. Right now, Brian is addressing the Water Treatment 3968 Plant, so that we could actually see the video that we're recording. 3969 3970 Mr. Baxley: One of the challenges is we don’t have, um, internet service at that point and place where 3971 we could actually be able to… 3972 3973 Ms. Clancy: Well, that, that, we're getting that now, aren't we? Didn’t we tell those guys, yeah, put it on 3974 the… 3975 3976 Mr. Baxley: That was utilities. 3977 3978 Ms. Clancy: Oh. [laughs] 3979 3980 Mr. Baxley: For your SCADA project. 3981

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3982 Ms. Clancy: Oh, okay. No, no, no, no, no, I'm talking about the ones we, uh, said they were gonna put 3983 there. That was all for SCADA? That we approved for that company to come in and put it on the 3984 existing, uh wires, for telephone wires, uh, internet service? 3985 3986 Mr. Baxley: No, that was something totally separate, had nothing to do with town budget or what the 3987 town was doing. 3988 3989 Ms. Clancy: No, I understand that. 3990 3991 Mr. Baxley: That was strictly for… 3992 3993 Ms. Clancy: But, I'm wondering if you'd be able to pick up off their, um, [inaudible]. 3994 3995 Mr. Baxley: Sure, if we wanted to pay for it. 3996 3997 Ms. Clancy: Well, you have to pay for things that you need to do, obviously, the whole budget is full of 3998 it, so. Well, because it just doesn’t, I mean, I, I hate, I would hate taking money from Kiwanis to put 3999 something in there that's just going to be destroyed, uh, constantly. Eh, destroy it, I could care less. 4000 4001 [laughs] 4002 4003 [inaudible background discussion] 4004 4005 Ms. Clancy: Kiwanis is paying for it, and, yeah, right. No, it just seems like there has got to be another 4006 way that, uh, because things are changing the way in which parents are, are taking their kids and, it isn't 4007 little slides and walking across things and it just, it's changing. So, you might want to look into the, the 4008 future of, [laughs]. 4009 4010 Mr. Baxley: We have. 4011 4012 Ms. Clancy: [laughs] Good. I must be getting tired. [inaudible] 4013 4014 [laughs] 4015 4016 Mayor Bunch: Where are we? 4017 4018 [inaudible background discussion] 4019 4020 Ms. Clancy: Yeah, well that's different. 4021 4022 Mr. Smith: That'll be fun. 4023 4024 [laughs] 4025 4026 Mr. Weddigen: Um, Mayor, um Mayor and Council, regarding the, going back to the Grant Budget, I 4027 just have one question and/or suggestion and that is, if we were to, essentially, uh, forgo any unforeseen

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4028 grants for the year and either reduce that $500,000 to, to zero, or some other number, would that bring 4029 us closer to not getting an F, relative to the amount of increase being at 3.2 million, being 2.7 million, or 4030 possibly even less, um, uh, considering other things that we've talked about tonight, um. 4031 4032 Mayor Bunch: I, I highly doubt it's gonna make, I highly, highly doubt it's gonna make any difference. 4033 4034 Mr. Smith: Yeah, I don’t think it'll make any difference. 4035 4036 Ms. Wright: I think you need a couple million. 4037 4038 [laughs] 4039 4040 Mr. Smith: Yeah, yeah. 4041 4042 [inaudible background discussion] 4043 4044 Mayor Bunch: Appreciate the thought. 4045 4046 Mr. Smith: A billion here, a billion there. 4047 4048 Mayor Bunch: The, the problem with taking it out is if we actually get it, then we can't spend it, so, I, I, 4049 you know, I'd rather if there in case the opportunities arise. 4050 4051 Vice Mayor Sova: Question. Passing. Does that half-cent sales tax that benefits the Waste Water, Waste 4052 Water Treatment Plant, have a sunset clause in it? 4053 4054 Mayor Bunch: Mm-mm. 4055 4056 Ms. Dyrek: No. 4057 4058 Vice Mayor Sova: It's good in perpetuity? 4059 4060 Ms. Dyrek: Mm-hm. 4061 4062 Vice Mayor Sova: Okay. 4063 4064 Mr. Weddigen: Mayor and Council, at this time, I have no further displays to present, or any, uh, other 4065 things to talk on. Uh, if there's any additional questions or observations that you'd like to make at this 4066 time, please do so. 4067 4068 Ms. Clancy: It's called last call. [laughs] 4069 4070 Ms. Dyrek: So, Robert will take the, um, suggested changes, or you know, moving the funds, whatever, 4071 whatever we've talked about this evening, we'll have the list for Monday. For next Monday's meeting so 4072 that you can incorporate those changes into the budget, as you decide, whether you want to vote

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4073 amendments one by one, or you want to just agree to all of the changes from tonight, you can do that in, 4074 in one motion, however you'd like to do that. 4075 4076 [inaudible background discussion] 4077 4078 Mayor Bunch: Sounds good. So, I guess we need a motion to adjourn? 4079 4080 Ms. Clancy: So moved. 4081 4082 Mayor Bunch: In favor? 4083 4084 The motion passed 5 to 0. Bunch, yes; Sova, yes; Clancy, yes; Smith, yes; Wright, yes. 4085 4086 Meeting adjourned at 9:38PM.

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1 MINUTES 2 REGULAR TOWN COUNCIL MEETING 3 TOWN OF CAVE CREEK, ARIZONA 4 MONDAY JUNE 18, 2018 5 6 7 CALL TO ORDER 6:30 P.M. Ernie Bunch, Mayor, 37622 N. Cave Creek Road, Cave Creek, AZ. 8 9 MOTION TO CONVENE INTO EXECUTIVE SESSION AT: 6:34 P.M. 10 ADJOURNED EXECUTIVE SESSION: 7:01PM 11 12 CALL TO ORDER REGULAR SESSION: 7:04 PM 13 14 Mayor Bunch called the meeting to order. 15 16 Roll Call: Deputy Town Clerk Jane Fuller 17 18 Council Present: Mayor Ernie Bunch, Vice-Mayor Ron Sova, Council Members Susan Clancy, 19 Mary Elrod, Thomas McGuire, David Smith and Eileen Wright. 20 21 Council Absent: NONE 22 23 Staff Present: Town Manager Carrie Dyrek 24 Deputy Town Clerk Jane Fuller 25 Town Marshal Adam Stein 26 Town Planner Ian Cordwell 27 Town Building Official Mike Baxley 28 Town Utility Director Jim Kaylor 29 Town Engineer George Everland 30 Town Finance Director Robert Weddigen 31 Town Attorney Bill Sims 32 33 Mayor Bunch: Welcome to the Regular Town Council Meeting, Town of Cave Creek, Arizona, Monday 34 June 18. Um, let's see here, who do we, who do we get to pick on to, [laughs] Mr. Spitler, would you 35 lead us in the Pledge of Allegiance? All you have to do is, [laughs]. 36 37 [inaudible background discussion] 38 39 PLEDGE OF ALLEGIANCE 40 Pete Spitler led all those in attendance in the Pledge of Allegiance. 41 42 PUBLIC ANNOUNCEMENTS 43 Mayor Bunch: Alright, under public announcements, um, I typically don’t make any, but we got a sad 44 one, uh, last week we lost a member of the Planning Commission. He'd been in the hospital for quite a 45 while and been, and been ill and, uh, Mr., Mr. Dick Frye passed away, um, after never leaving after a

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46 procedure. Um, he's a good guy, served the Planning Commission honorably and, uh, we're gonna miss 47 him a lot. And that's all I've got. Anyone else? Councilwoman Wright? 48 49 Ms. Wright: Public announcement please. Okay, we're getting ready for the political season to begin. 50 We had our very first forum last week. On Wednesday, there will be a meet and greet that will be for, all 51 citizens will be welcome. Please, with hor-, I think there's appetizers, food, drinks and things. And it will 52 be at the Cactus Shadow High School. After that, we will have four different forums and I will be 53 challenging you, the Mayor, to a debate at each one of those. The first one is July 10th, the 24th, August 54 2nd, and 16th. That will, all those will give you an opportunity to see exactly what the issues are, what 55 the different, the Mayors candidates feel about them, as well as the Council, all the Council and other 56 candidates will be there as well. So, I hope you'll join us for all of these events. Thank you. 57 58 Mayor Bunch: Interesting. Call to the public. 59 60 CALL TO THE PUBLIC 61 Ms. Fuller: Ellen Alsever? I probably got that wrong. 62 63 Ellen Alsever: Even Mayor and Council. You know I love you guys. Uh, 5995 east Cielo Run north. I 64 have two things to say. Um, first of all, I, um, here to support Danny and the fireworks. I think that it's a 65 incredible tradition that we have here. I plan my whole summer around these fireworks. I hope that we 66 can find some way to make something good out of this. I understand the whole process that was behind 67 the decision, but, um, have to state that. And the second thing is kind of different, um, Zee's liquor 68 license, I think she is the bomb and I think she is gonna be a great asset to this community and I really 69 support her in having a liquor license and I think she'll be very responsible and we will enjoy it all. 70 Thank you. 71 72 [applause] 73 74 Ms. Fuller: Larry Wendt. 75 76 Larry Wendt: Mayor, Members of Council, Larry Wendt, uh, Buffalo Chip Saloon and, uh, resident of 77 Cave Creek. Um, I'm here, uh, to speak in opposition of the decision not to allow fireworks on July 3rd. 78 Without a doubt, July 3rd is a signature event for the Town of Cave Creek. All year long, I hear from 79 people who say, "You know what, we were up here for fireworks, we'd never been up here before, we 80 love your little town and we've been coming back." That is the exact demographic that I want at the 81 Buffalo Chip Saloon. A demographic that is with people that are patriotic, that are out with their families 82 and younger children and that just want to have a good time, spend their money in Cave Creek and go 83 home. I know you don’t hear a lot from the businesses up here, because generally, we're at our 84 businesses, trying to do what is right for this community. Be it noise ordinances, light ordinances, dust, 85 parking, whatever the issue, we try and do what is right for the community. I know there's been talk that 86 the, the firework show was done for the balloon festival, why not for Harold's? Aside from that 87 argument, I, I want you guys to consider this, I know it is a political season, I know you're getting calls 88 from, what I consider to be, and many more people that come to events like bull riding or fireworks or 89 bike week, a vocal minority. But I want to leave you with this, you know, there's an old saying that it's 90 not the size of the dog in the fight, it’s the size of the fight in the dog. And so, keep that in mind. You 91 may not hear every day from all of our staffs that depend that firework show to pay their bills for the

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92 summer, you may not hear from the thousands of people that come up to enjoy those fireworks, but you 93 know what, they're out there and they count and they will speak one way or the other. We spend tens of 94 thousands of dol-, or, or millions of dollars on additional firefighting for the forest service, for, uh, all of 95 these places, there are more fires now than there ever have been. But, we continue to charge the 96 citizenry extra to collect the taxes to fight overtime increase our efforts, but what we don’t count on… 97 98 Ms. Fuller: Three minutes. 99 100 Mr. Wendt: Is the true patriots being out there with their sparklers because they want to do what's right 101 for this country and them and that's what starts a lot of the fires. Let an official show that has not had a 102 problem in 25 years go on. Thank you. 103 104 [applause] 105 106 Ms. Fuller: Hope Condit. 107 108 Mr. Condit: Uh, I'd like to give the floor to Danny. 109 110 Danny Piacquadio: Can I take his time and my time? 111 112 Ms. Fuller: Danny, could you spell your last name, please? 113 114 Mr. Piacquadio: Uh, Piacquadio. P-i-a-c-q-u-a-d-i-o. 115 116 Ms. Fuller: Thank you. 117 118 Mr. Piacquadio: Can I pass out some documentation to the Council people? 119 120 Mr. Wendt: Council, how come I didn’t get to share anybody's time? 121 122 [laughs] 123 124 Ms. Clancy: Could have shared it with him! [laughs] 125 126 [inaudible background discussion] 127 128 [laughs] 129 130 [inaudible background discussion] 131 132 Mr. Piacquadio: Alright, Mayor, Councilmen and Councilwomen, first of all, I want to thank, uh, thank 133 all of you for listening to my phone calls over this busy weekend. Some more than others, and extra 134 special thanks to the Members that came out and visited the, the uh, property, just to get a better 135 understanding. What I passed out to you guys is, uh, two-fold, one is a map of, uh, and I'll go through it 136 real quickly, of what we did, uh, page one was what we did three years ago, or have been doing for 25 137 years, uh, the big map with the fall out range of, uh, 350 feet radius, page one. And then the second page

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138 is our current plan that we amended, um, immediately once we heard three weeks prior to our event, that 139 there was an issue with, uh, fireworks and the safety concerns of the Town. We also modified that, um, 140 just recently in a letter I sent to all Council people and Mike and Carrie over the weekend. I'm gonna 141 read that letter, real quick. I truly understand and appreciate the concerns for our Town's safety. After 142 all, it's your job. Cautious and thorough, especially with the lack of rain we have had. Our last plan we 143 submitted to the Town, decided to take extra precautions by not shooting shells over 2.5 inches to limit 144 the fall out area and creating a watering program, surrounding the desert. We are asking for you to 145 reconsider and look at our amendments to shoot on our site. We are willing to do more modifications to 146 that plan. Here are the six items I have presented to you guys. Fortunately, over the weekend, we had 147 rain. So, we had help from above and started our watering program. We're going to shoot 60% of the 148 show, with 2 inch shells, or smaller, creating even a smaller fall out area of 165 feet and less, leaving the 149 remaining 40% of the show to be 2.5 shells, which would use a 175 feet fall out area. Harold's will 150 contract with rural metro for any additional resources that fire chief may deem necessary to go above 151 and beyond our previous year's shows and for the priority of safety for the Town. Harold's has hired a 152 landscape company to clear away the very limited brush and that vegetation, as Marshal Stein would 153 attest, that is the cleanest site we have had in 20, 25 years for our show. Well, he may not be able to do 154 25 years, but as long as he's been here. Harold's will also work with the Town on private contractors to 155 use his watering truck to continue a watering program that began with the rains on Friday and Saturday 156 night. We have relocated our shoot site to limit our VIP section from 800 people, to 400 people, keeping 157 all the people out of the smaller fall out area. And, attached was the, the document of the, uh, shoot site, 158 which you guys have. So, my biggest question is the code. So, when talking to Carrie and, and Mike 159 Baxley, they're stuck on, a permit shall not be issued and may be revoked during times, periods of high 160 fire danger warnings. Do any of you know what that period is defined by? You guys passed this law. 161 Does anyone know? I don’t think you guys have a definitive answer. I asked the question and Mike says 162 it is a determination of the Town, by facts of weather, by facts of forest service and the Town's facts. 163 Shouldn’t it be more defined? Should you allow a Town employee or employees dictate a 25 year 164 tradition and use selective enforcement. You allowed a show three weeks ago, that was shot off, and it's 165 a great show, and I'll, I will preface by saying, I'm happy you allowed that show, it was done 166 professionally, safely, they [inaudible], they met every criteria, as we are gonna do for our show and 167 they provided a fun, safe show for the Town that was awesome. They did nothing wrong. But, that being 168 said, you allowed that show. Now, you're selecting enforcing not to allow our show that has gone to 169 same rigorous process and safety measures, to boot. It's a small fall out area, and the terrain around it is 170 as safe, if not safer, and less vegetation is exposed. Who defines that? Give me an answer. I don’t think 171 anyone of you can. I will tell you right now, I've done a lot of research on trying to find the verbiage, 172 high fire danger warnings. I mean, you can use Alaska high fire danger warnings. Does that apply to our 173 Town? What are you specifically using? It should be a definitive marker. The state has three 174 classifications, stage one, well, actually four, no burning, stage one, stage two, and the worst, stage 175 three. From my information, it's stage three, uh, closures is the most one that would have high fire 176 danger. It is also my understanding after talking to, uh, Andy Markol with the forest service, Assistant 177 Fire Chief that nothing has changed from May to June to now, as far as their rating. They believe we are 178 on a stage two. They knew we were in a stage two on the show on the 26th. Why are we being selective 179 punished if it’s the same conditions, according to them? There was a closure that was noted June 13, it 180 was for High Tonto Forest Service. It had nothing to do with our area. If you go currently on the site that 181 the land uses, government uses for fire restrictions, it clicks you to a site. I clicked on that site and I got 182 a, I got Cave Creek being in a stage one. So, what's the definition. There's none and you're letting 183 someone determine a 25 year history of tradition, fun for families from out of town, fun for families in

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184 town, and part of Cave Creek's fun tradition and celebrating our Independence Day. If one of you guys 185 could give me an answer right now what that defining moment is, I know Mike Baxley was vague about 186 it, it should be something as concrete that you can, that cannot be used for selective enforcement and 187 that's all I'm asking. I still am in hopes that the show will occur. I have a lot more knowledge than I can 188 share in my time here, but I guarantee if we all sat down together and had a conversation on what's fair 189 and right, you'd learn a lot from me and for you guys who passed this law that was set for good reason to 190 let an ambiguous term dictate a 25-year tradition is just not proper town management. I am sorry. I 191 respect you all enough… 192 193 Ms. Fuller: Three minutes. 194 195 Mr. Piacquadio: To make the right decision, and I respect Mike and Carrie for what their job they're 196 doing, but it's not fair and we should have time to fix this situation and I hope and pray that the Council 197 will use their power to figure out a fair solution to this. Thank you. 198 199 [applause] 200 201 Mayor Bunch: That's all. Alright. 202 203 COUNCIL REQUESTS FOR FUTURE AGENDA ITEMS: 204 Ms. Clancy: I think you ought to bring the ordinance back for discussion. 205 206 Mayor Bunch: Yep. All right 207 208 Ms. Clancy: To do clarification. 209 210 Mayor Bunch: Alright, Town Manager report. 211 212 TOWN MANAGER REPORT 213 Mayor, Mayor and Members of Council, um, there's, this is a very emotional issue and it affects a lot of 214 people, including all the people in this Town, regarding the fireworks, um, permitting process and uh, 215 there have been a lot things that have been said and I, I don’t know what people have heard, or not 216 heard, so I feel it's very important, uh, from Staff's perspective, to report on our process, the ordinance 217 and the facts that are, um, used, the information that Staff has reviewed, in order to come up with this 218 decision. Um, I've asked Mike Baxley to review, not only, um, his report and the information that he 219 used in making the decision, but also to address the additional information that Danny has provided. uh, 220 we were out on a site visit this afternoon, after 4 o'clock, discussing it, looking and, um, talking about 221 his additional information and I think, um, Mike can summarize that is, uh, good detail and, with that, 222 I'll have Mike, uh, give the report for the public. 223 224 Mr. Baxley: Alright, um, Mr. Mayor, Members of the Council, Staff recently, as you, as you are aware, 225 um, found it necessary to deny the fireworks display permit for July 3rd, due to the elevated fire danger 226 in the community. Um, here on your screens, you'll see, this the application that was, uh, brought to us. 227 And, it shows where they wanted to have their proposed launch sites and the fall out area of that, drawn 228 with the arrows. After taking a look at that, I pulled up, on Maricopa County Assessor's Office and 229 pulled the same radius circle there, and we came up with a little bit larger circle, not a lot larger, but it

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230 precluded some of the areas that they had there, while still trying to stay on the property without having 231 to extend into the desert to the south. Um, we created this circle using the data that's found in NFPA, uh, 232 1123, which was part of the fireworks ordinance, saying that we had to use that chart in order to figure 233 out what the fall out zone is. Um, with that being said, this one's kind of hard to read, but, uh, it's a lot of 234 data, but this is specific to Cave Creek and what this is saying is that currently, since December, Cave 235 Creek is at 25% of its average annual moisture. It is also saying that, uh, we are down from our average, 236 5.68 inches of rain. There is a bunch of slides here, so, I'm gonna kinda go through them kind of quick 237 for you. This also is showing here when our last major rain event occurred. You can see some minor 238 ones throughout the year, roughly about 1.9 inches, but our last major events came in the month of 239 August, which is coming up on a year away. Um, we also reached out to our first responder. Um, Rural 240 Metro, and, uh, asked them for their input on this, because we had some challenges and didn’t, I mean 241 they're gonna be the ones that are gonna be out there having to fight any fires that occur, um, and what 242 we got back is, they're greatly concerned with such a dry year and being able to pr-, um, have the 243 fireworks show in this particular environment. Uh, with that, this comes from NOAA, um, I actually 244 looked it up, so, in case anybody didn’t know what the acronym was, it was the National Oceanic and 245 Atmospheric Administration. What this is showing is that over the month of May, um, Cave Creek, well 246 Arizona, as a whole, was substantially less than its average rain fall totals. As a matter of fact, we're less 247 than 5%. We are in the worst part of the Western United States, as far as rainfall comes. In addition to 248 that, we pulled up the US drought monitor, showing where, um, Cave Creek's in that Northwest corner 249 of Maricopa County, hopefully you understand the shape of Maricopa County is right there, but, as you 250 look at that, it says that we are in exceptional drought conditions right now. What is says, to me, is that 251 means we haven't had any moisture as evidence to not having any rain since last August, really. Um, 252 Danny alluded to the Tonneau National Forest and, and their closures and they did have a closure. Um, 253 their closure occurred back in, in April and they did go to a stage two fire restriction and a stage two fire 254 restriction says you can't smoke outside your vehicle, you have to be enclosed, you can have no fires, 255 uh, you can't shoot guns, you can't operate a chainsaw between, I think it is nine, after nine am in the 256 morning, and last but not least, you can't have fireworks out there either. So, and that's where it's talking 257 about right there and if you'll at the last sentence, it says the use of fireworks and explosives of 258 pyrotechnic is always prohibited. Then, let's talk about the state of Arizona. The state of Arizona waited 259 for another month before they decreed a stage two fire restriction in the Cave Creek area. All of 260 Maricopa County went into a stage two fire restriction on May 25th. Which was just last month. After 261 we saw that, that's when, and then also included in that it shows that fireworks are prohibited in all of 262 the state properties, within Maricopa County. Um, when we originally took a look at this, we had a 263 challenge, because no extended forecast out there showed that I could get all the way to July 3rd. I did 264 find one, it had 15 day extended forecast, it took me to June 27th at that point in time. It showed we 265 were gonna have less than six millimeters of rain between that period and June 27th. It also came up and 266 showed us that our average wind speed over this entire period is going to be in about the 16 mile an hour 267 range. Um, so, since that time, we've had a few days pass since this came up and I had to write the letter 268 out to Danny and, and his pyrotechnic company, um, by uh, Mr. Nelson, and so I pulled up a new one, 269 effective today. Um, the rain levels have all shown zero now. There's no more rain forecasted for the rest 270 of this month through July 2nd. In addition to that, we were able to pull up and the wind models are now 271 showing that we're gonna be about the same amount. So, we're expecting to see 14-16 mile an hour 272 winds on the day that we were looking at shooting fireworks off. Um, what does the wind have to do 273 with it? Well, remember the, uh, the sphere that we had showing where the fall out area was, that's in a 274 perfect world, with NFPA 1123 and it tells just what, where if it goes up in the air, it's expected to fall in 275 that area. Well, 15 mile an hour winds, we're looking at this right here. And now this is after the

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276 pyrotechnic has exploded in the air. This is gonna be cardboard and plastics that are falling. The 277 cardboards are what come down and, uh, are still glowing and, and can start the fire, pretty much. So, at 278 a 15 mile an hour wind, we're now looking at, let's say on the short side here, 120 meters for cardboard. 279 Now, when we were talking about that radius, we just extended it from what we had there to now 360 280 feet, roughly, from the center of the, of that circle. So, now, we are extending it twice as far. Um, now, 281 that depends on which way the direction of the winds blowing. Is it gonna be blowing over the houses? 282 Is it gonna be blowing over the uh, the desert to the south, or the desert to the west? We have to kind of 283 see what we're gonna be at, at that point in time, but either way, it's blowing over private property that's 284 out there, which is, is gonna be a challenge to us. And when I was out there today, yes, I looked and, and 285 Danny has cleaned up his property immensely and it, Danny, where you at, it is the best I've seen in a 286 long, long time. He's had, uh, landscape guys out there trimming all the brush, pulling in out of there. 287 Um, but what he hasn’t been able to do is, we can't reach outside of that area, it's all private property to 288 the south of him. As a matter of fact, just due south of his lot is a, um, a, a commercial establishment 289 and they have chlorine tablets stacked up outside. I'm not sure, but I'm thinking the fire and the chlorine 290 tablets won't be a good mix. Um, then, moving on, we did talk about the rains that we had this weekend. 291 Now, I pulled this from Maricopa County Flood Control District. This was, um, on a seven-day window 292 back and it's kinda hard to see, but if I give you the up close thing, you can see Harold's Cave Creek 293 Corral right there and not very far away, which is basically the side of Galloway Drive where it crosses 294 the wash, there happens to be a rain gauge there and that rain gauge shows in the last seven days, we've 295 had four one hundredths of an inch of rain. Um, maybe about, I don’t know if I can get that close. So, 296 with that, um, Danny did come out and, and explain to us, you know, all of his challenges and, and the 297 corrective measures that he's, that he's taken, but one of the big determining factors is, the ordinance that 298 Staff has to operate under and what Staff has to operate under is this one piece right here and it says a 299 permit shall not be issued and may be revoked during the period of high danger, or high fire danger 300 warnings. Um, it’s Staff's opinion that we are definitely in that position. We are definitely in a high fire 301 danger warning, based on all the data that we have already pulled and what the future looks like for us, 302 going forward. And, with that, that's all we have for the report. 303 304 Ms. Dyrek: I have nothing else at this time, Mayor. 305 306 Mayor Bunch: Is that it? 307 308 Ms. Dyrek: Mm-hm. 309 310 Mayor Bunch: Alright, moving right along, consent agenda. We have three items on there. 311 312 ACTION ITEMS: 313 314 A. CONSENT AGENDA 315 1. Approval of the final plat of The Reserve at Black Mountain Subdivision. 316 2. Cancellation of the July 2, 2018 Regular Town Council Meeting. 317 3. Approval of a #12 Bar Liquor License for Z’s House of Thai as requested by Agent 318 Rungboonkong Sirikorn. 319 320 Mayor Bunch: Do we have a motion to approve? 321

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322 Ms. Wright: I'd like to pull number two, please. 323 324 Mayor Bunch: You want to pull number two? 325 326 Ms. Wright: Yes, please. 327 328 Mayor Bunch: Okay. Uh, how about one and three? Do we have a motion to approve one and three? 329 330 Ms. Clancy: So moved. 331 332 Mayor Bunch: All in favor? 333 334 Council in Unison: Aye. 335 336 Mayor Bunch: Opposed? 337 338 The motion passed 7 to 0, by voice vote. 339 340 Mayor Bunch, yes 341 Vice Mayor Sova, yes 342 Councilwoman Clancy, yes 343 Councilman Smith, yes 344 Councilman McGuire, yes 345 Councilwoman Elrod, yes 346 Councilwoman Wright, yes 347 348 Mayor Bunch: Alright, Councilwoman? 349 350 Ms. Wright: Yes, I think it would be, behoove us to use the 2nd of July to have a meeting, because we 351 have a lot to accomplish and it isn't a holiday, so there really isn't any reason to not use it for a Council 352 Meeting, with all that we need to accomplish. 353 354 Mayor Bunch: Alright, um, I'm guessing that, uh, that that was a motion? 355 356 Ms. Wright: Yes, I didn’t know if you wanted to discuss first or not. 357 358 Mayor Bunch: I would want to discuss it. 359 360 Ms. Wright: Okay. 361 362 Mayor Bunch: You know, historically, that's something that we've done is, is usually two meetings in 363 the summer. We didn’t do it last year, um. Although, okay, go ahead and make your motion if you 364 would like. 365 366 Ms. Wright: Okay, I would like to move that we have a Council Meeting on July 2nd, as normally would 367 be, at the same time.

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368 Mayor Bunch: All those in favor, signify by saying aye. 369 370 Council in Unison: Aye. 371 372 Mayor Bunch: Opposed? Looks like we are gonna have another Council Meeting. 373 374 Ms. Wright: Thank you. 375 376 The motion passed 7 to 0, by voice vote. 377 378 Mayor Bunch, yes 379 Vice Mayor Sova, yes 380 Councilwoman Clancy, yes 381 Councilman Smith, yes 382 Councilman McGuire, yes 383 Councilwoman Elrod, yes 384 Councilwoman Wright, yes 385 386 Mayor Bunch: Alright, moving on. 387 388 B. GENERAL AGENDA ITEMS 389 390 1. COUNCIL DISCUSSION AND POSSIBLE APPROVAL OF INTERGOVERNMENTAL 391 AGREEMENT FOR LAW ENFORCEMENT SERVICES BETWEEN TOWN OF CAVE 392 CREEK AND MARICOPA COUNTY. 393 394 Mayor Bunch: Town Manager? 395 396 Ms. Dyrek: Mayor, Members of Council, the, um, the IGA, uh, between the Town of Cave Creek and 397 Maricopa County, uh, Sheriff's Office, um, is expiring at the end of June, June 30th. We had a, uh, three- 398 year IGA in place, for Law Enforcement Services, uh with the option to renew for one year, over a 399 three-year period. The County provided, uh, and updated IGA, um, along with, uh, the budgetary, um, 400 um, information, uh, for the proposed budget that came on February 15th, and the IGA, uh, sometime 401 after that. Um, at this point, um, we're proposing to Council that you adopt this IGA, and move forward 402 with the three period, um, which has the same, uh, options to renew for a one-year period, up to three 403 more years. 404 405 Mayor Bunch: Questions from Council? And, we have public comment on this agenda item. Nobody has 406 filled out a form on it? 407 408 Public Comment 409 None. 410 411 Mayor Bunch: Back to Council for a motion. 412

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413 Ms. Clancy: Motion to approve and authorize the Town Manager to execute the Intergovernmental 414 Agreement for Law Enforcement Services between the Town of Cave Creek and Maricopa County for 415 the period of July 1, 2018 through July 30, 2021. 416 417 Ms. Wright: Second. 418 419 Mayor Bunch: Alright, Councilwoman, comments? 420 421 Ms. Clancy: No. I, I think we need to have… 422 423 Mayor Bunch: You think we need Law Enforcement? 424 425 Ms. Clancy: Services. Yeah. 426 427 Mayor Bunch: Okay. 428 429 Ms. Clancy: Every once in a while, we do, thank goodness. 430 431 Mayor Bunch: Councilwoman Wright? 432 433 Ms. Wright: And, I agree. 434 435 Mayor Bunch: Right. Um, this is uh, financial. Roll, the roll please. Or, is it financial? Yeah, it is. 436 437 Ms. Clancy: Yeah, it is. 438 439 Ms. Fuller: Vice Mayor Ron Sova? 440 441 Vice Mayor Sova: Yes. 442 443 Ms. Fuller: Councilwoman Clancy? 444 445 Ms. Clancy: Yes. 446 447 Ms. Fuller: Councilwoman Elrod? 448 449 Ms. Elrod: Yes. 450 451 Ms. Fuller: Councilman Tom McGuire? 452 453 Mr. McGuire: Yes. 454 455 Ms. Fuller: Councilman Smith? 456 457 Mr. Smith: Yes. 458

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459 Ms. Fuller: Councilwoman Wright? 460 461 Ms. Wright: Yes. 462 463 Ms. Fuller: Mayor Bunch? 464 465 Mayor Bunch: Yes. By 7-0, motion carries. 466 467 The motion passed 7 to 0, by roll call vote. 468 469 Mayor Bunch: Um, on to agenda item number two. 470 471 2. COUNCIL DISCUSSION AND SECOND READING OF ORDINANCE NO. O2018-01 472 AMENDING THE TOWN OF CAVE CREEK CODE SECTION 52.404 ENTITLED 473 ACTIVATION OF WATER SERVICE AND SECTION 52-405 ENTITLED REACTIVATION 474 OR TRANSFER OF WATER SERVICE. 475 476 Mayor Bunch: Town Manager? 477 478 Ms. Dyrek: Mayor, Members of Council, um, these changes to the Town Code resulted in the, um, 479 adoption of the, uh, Town Council Water Policy, that was adopted in December, um, 2017. Um, the first 480 reading was given at the last Council Meeting. Um, there were some questions about clarification of 481 what the languages into, um, as it will be put into the Town Code, and I hope that we've accomplished 482 that. If not, I'm sure, um, I noticed there is not public comment, but we should have public comment on 483 this item. 484 485 Mayor Bunch: Yeah, yeah. Questions from Council? Okay, there was no public comment, so they 486 probably didn’t fill any forms out on this one, so. 487 488 Ms. Dyrek: Well, if there are questions, I'd like to make sure we can clarify for the public. 489 490 Mayor Bunch: Is there questions from, uh? 491 492 Public Comment 493 None. 494 495 Mayor Bunch: Seeing and hearing none, we're back to Council for a motion. Councilman Smith? 496 497 Mr. Smith: Motion to give second reading to Ordinance number 02018-01 and ordinance of the Mayor 498 and Council of the Town of Cave Creek, Arizona, adopting and making a part of the Town Code, that 499 certain document entitled, Section 52-404, Activation of Water Service and Section 52-405, 500 Reactivation or a Transfer of Water Service and declared to be a public record by resolution number R- 501 2018-13. 502 503 Ms. Clancy: Second. 504

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505 Mayor Bunch: Councilman Smith? 506 507 Mr. Smith: This is something that the Council and the Water Advisory Committee had worked on for an 508 extended period of time. It's something that the Town needs to protect its water supply. I, I think it's, it's 509 a critical thing that the Town, uh, puts this into place, and that's essentially what I've got to say. 510 511 Mayor Bunch: Alright, Councilwoman Clancy? 512 513 Ms. Clancy: Ditto. 514 515 Mayor Bunch: Ditto. Any other comments? Councilman McGuire? 516 517 Mr. McGuire: Water is very important to this community and the, uh, the, wise, uh, um, regulation of 518 our water and I think that this adds to that and, uh, I'm very pleased that this Council is moving on the 519 issue. 520 521 Mayor Bunch: Any other comments? All those in favor of the motion, signify by saying aye. 522 523 Council in Unison: Aye. 524 525 Mayor Bunch: Opposed? Aye clearly have it, 7-0. 526 527 The motion passed 7 to 0, by voice vote. 528 Mayor Bunch, yes 529 Vice Mayor Sova, yes 530 Councilwoman Clancy, yes 531 Councilman Smith, yes 532 Councilman McGuire, yes 533 Councilwoman Elrod, yes 534 Councilwoman Wright, yes. 535 536 Mayor Bunch: Agenda item number three. 537 538 3. COUNCIL DISCUSSION AND POSSIBLE APPROVAL OF THE PURCHASE OF BID 539 TO RE-COAT THE RECLAIM WATER STORAGE TANK FOR THE AMOUNT OF $32,400. 540 541 Mr. Kaylor: Mayor and Council, um, I'm here to, uh, uh, ask for approval of $32,400 to re-coat the 542 interior of the, uh, potable water storage tank. This is a tank that basically is used, uh, it's been in service 543 for, for about 15 years and it's used to hold all the water that is used for backwashing filters. And as you 544 can see, all those white spots are corrosion that are showing up in the tank, and, uh, a re-coating effort 545 would sand blast it, re-coat it with 25mil of specialty coating and put the tank back into a condition that 546 would be lasting another ten or fifteen years, at least. 547 548 Mayor Bunch: And that's a steel tank? 549 550 Mr. Kaylor: Pardon me?

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551 Mayor Bunch: A steel tank? 552 553 Mr. Kaylor: Steel tank. 554 555 Mayor Bunch: Yeah. 556 557 Mr. Kaylor: Yes, steel tank. 558 559 Mayor Bunch: Questions from Council? 560 561 Vice Mayor Sova: Mr. Mayor. 562 563 Mayor Bunch: Vice Mayor. 564 565 Vice Mayor Sova: Mr. Kaylor? 566 567 Mr. Kaylor: Yes. 568 569 Vice Mayor Sova: Uh, is this $32,400 in the current budget? 570 571 Mr. Kaylor: It's in, there's, the funds are in the, were in the 2018 budget, but they have been carried over 572 to the 2019. 573 574 Vice Mayor Sova: Okay, so we're covered? 575 576 Mr. Kaylor: Yes. 577 578 Vice Mayor Sova: May I make a suggestion to the, uh, Town Manager and department heads? When we 579 have such a thing, uh, with the dollar amount in it, it would be nice, so I wouldn’t have to ask that in the 580 future, if it was covered in the budget. 581 582 Mr. Kaylor: Understood. 583 584 Vice Mayor Sova: Thank you. 585 586 Mr. Kaylor: Okay. 587 588 Mayor Bunch: Any other questions from Council? Alright, we actually have public comment on this 589 one. Anybody care for a re-coat of water tank? Alright, we're back, we're back to Council. 590 591 Public Comment 592 Mr. Arlen: Actually, I do have a question. 593 594 Mayor Bunch: Well, step right on up, Mr. Arlen. Is it for us or for him? 595 596 Mr. Arlen: Well, it's really for you.

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597 Mr. Kaylor: Oh, for me? I'll sit here. Ask your question. 598 599 Mr. Arlen: How much does a tank cost, if you wanted to buy a new one? I'm just curious, the ratio of the 600 paint to, to the tank. Any idea? 601 602 Mr. Kaylor: Yeah, this, this tank is, uh, about, uh, I believe 80-100 thousand gallons. I can't, I can't give 603 you a good figure on the replacement cost. 604 605 Mr. Arlen: Okay. 606 607 Mr. Kaylor: A million-gallon tank would be about a million dollars. 608 609 Mr. Arlen: Oh, okay. So, yeah. 610 611 Mr. Kaylor: Does that answer your question? 612 613 [laughs] 614 615 [inaudible background discussion] 616 617 Mayor Bunch: We're back, we're back to Council for a motion. 618 619 Ms. Clancy: Motion to approve, um, a lump sum payment to MMI Tank and Industrial Services, the 620 lowest responsible, responsive bidder to recoat the interior of the potable water Reclaim Water Storage 621 Tank for an amount not exceed $32,400. 622 623 Ms. Wright: Second. 624 625 Mayor Bunch: Alright, would you like, would you like to, uh, make comments on this? 626 627 Ms. Clancy: Well, it sounds like it's a cheap way to have it for another ten years, given what they cost, 628 so thank you for bringing that to our attention. 629 630 Ms. Wright: And, I agree. It just is common sense. 631 632 Mayor Bunch: Gotta take care of what you own. Uh, this is money as well. I bet we need to do a roll call 633 vote. 634 635 Ms. Fuller: Councilwoman Elrod? 636 Ms. Elrod: Oh, yes. 637 638 Ms. Fuller: Councilman McGuire? 639 Mr. McGuire: Yes. 640 641 Ms. Fuller: Councilman Smith? 642 Mr. Smith: Yes.

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643 Ms. Fuller: Councilwoman Wright? 644 Ms. Wright: Yes. 645 646 Ms. Fuller: Vice Mayor Sova? 647 Vice Mayor Sova: Yes. 648 Ms. Fuller: Councilwoman Clancy? 649 Ms. Clancy: Yes. 650 651 Ms. Fuller: Mayor Bunch? 652 Mayor Bunch: Yes. By 7-0, motion carries. Wow, we're just spending money really quick. 653 654 The motion passed 7 to 0, by roll call vote. 655 656 Mayor Bunch: Uh, agenda item number four. 657 658 4. COUNCIL DISCUSSION AND POSSIBLE APPROVAL OF THE PURCHASE OF A 659 2018 FORD F350 SUPER CREW WITH UTILITY BED AND LIFT GATE UNDER STATE 660 CONTRACT NO. ADSPO17-166124 FOR THE AMOUNT OF $59,706.33. 661 662 Mr. Everland: Yes, that is, uh, I think as you are aware, originally, we had tried to purchase a water 663 truck, uh, oh, let's see, two times sold out before we get all the, the Town's approvals and, uh, there 664 wasn’t any way they would agree to hold it, uh, until that time. Uh, so, with the monies, uh and then, in 665 2019, we were going to put on the two crew trucks, uh, for, for purchase. So, we basically kind of 666 switched them and this is one of the, uh, crew trucks, uh that we're able to get and, uh, receive before the 667 end of the month. And, this will replace the, uh, 2004 Chevrolet 2500 that's 14 years old and in much 668 need of repair and, uh, it's starting to become very expensive to maintain. And, this price includes all the 669 appurtenances that, you know, that the crew needs with the transfer tank, lift gate, different things, so, 670 uh, in other words, it's not just the, the bare truck, it's the truck with, set up with all the things that the, 671 uh, the crew needs. 672 673 Mayor Bunch: Is it still there? 674 675 Mr. Everland: Yes. 676 677 Mayor Bunch: Okay. 678 679 [laughs] 680 681 Mr. Everland: They're holding it for us, that one. 682 683 [laughs] 684 685 Mayor Bunch: Any questions from Council? 686 687 Ms. Wright: Yes, please. Yeah, you make a mention to this as a non-reliable vehicle, or truck? What do 688 you mean by that?

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689 Mr. Everland: The, the one it's replacing. 690 691 Ms. Wright: The old one of yours, is non-reliable? 692 693 Mr. Everland: Right, yes. 694 695 Ms. Wright: What makes it non-reliable? 696 697 Mr. Everland: Uh, well, just the expense, the age of it and the expense, uh, and the problems, I guess 698 maintaining it and, um, some of the things that they're, you know, aren't, aren't working, uh, and not 699 really repairable, except for a large expense, so. 700 701 Ms. Wright: So, would it last for another couple years or so? Five years as it is, with a little bit of 702 maintenance? 703 704 Mr. Everland: Uh, the answer would be yes. I mean, it's, we're trying to make an analysis of when the 705 costs, you know, if we continue maintaining it, at, at the point when that becomes, you know, when we 706 think, originally Tyler wanted to, to purchase this a couple years ago and it's kind of been pushed off and 707 pushed off and pushed off and so, we feel at this time, it would be, for the life that it'll serve us, in the 708 future, that this is kind of almost past the time when we should have replaced the vehicle. 709 710 Ms. Wright: So, it could be pushed off another year, though. 711 Mr. Everland: Uh, yeah. 712 713 Ms. Wright: Oh, okay. 714 715 Mr. Everland: I mean it always, you know it always can be, uh, it's… 716 717 Ms. Wright: Is it an immediate? Okay. 718 719 Mr. Everland: It's on the road, it's run-able, so. 720 721 Ms. Wright: Okay, thank you. 722 723 Vice Mayor Sova: Mr. Mayor. 724 725 Mayor Bunch: Vice Mayor. 726 727 Vice Mayor Sova: Mr. Everland, would it be, uh, safe to say that this truck has reached the law of 728 diminishing returns on it? By that I mean, can you tell us approximately how much we've spent on 729 repairs, outside of normal maintenance, over the last several years? Something that we would not have 730 to do with a new vehicle. Uh, second part of the question is, uh, are we gonna sell the old vehicle, does it 731 have any salvage value? And if so, what is it? And, uh, should we assume that the useful life of a new 732 truck, because of modern materials and electronics and metals will last longer, uh, than the one that's 733 currently 14 years old? And, what's the warranty on it? 734

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735 Mr. Everland: Uh, I don’t have, uh… 736 737 Ms. Clancy: How many questions was that? 738 739 Vice Mayor Sova: Four. 740 741 Mr. Everland: Let's see, uh, the warranty… 742 743 [inaudible background discussion] 744 745 Mr. Everland: I don’t have the, Tyler would have the records on the maintenance costs, I don’t have 746 them. Uh, typically it's estimated that the vehicle, a vehicle like this, we can use as much as it's, it's used, 747 15-year life is, is fairly long. Uh, for a vehicle that's used in, uh, you know, this manner for, you know, 748 municipal, municipal use and constant everyday use. The, uh, as far as the salvage value, the answer is 749 yes. That's why we wanted the thing not to exceed, um, basically, one it's, if it's approved, then we either 750 negotiate with the dealer for how much they're going to give us in turn, or we can end up, uh, selling the 751 vehicle, uh, you know, outright, if, if we don’t trade it in to the, to the dealership. So, yes, we'll get some 752 return for that vehicle and a lot of times, there's, Tyler was saying there's a couple markets where people 753 who, other places in need of a, this type of vehicle with limited use, uh, may be a better market then the 754 trade in from the dealer. 755 756 Vice Mayor Sova: Could, could one say that, uh, if we kept it for another year that it could just stop, 757 blow-up, whatever, seize to operate? In which case, it would have virtually no salvage value. Uh, to 758 where it's better off, perhaps, buying it now, having a new on in the fleet and not leave that up to risk 759 and chance and having a good, dependable vehicle that our people can utilize to perform their job. 760 761 [inaudible background discussion throughout next paragraph] 762 763 Mr. Everland: Yeah, that's always the fear. I mean, that's why when a vehicle gets this old and, I mean, 764 they’ve had some, experienced problems with it, and, and so, that's the thing you don’t want to happen. 765 We're really trying to, you know, replace the vehicle with a reliable vehicle, uh, and also reliable so that 766 the t-, you know, the crew can, you know, perform their duties when needed and not have to worry 767 about the vehicle breaking down. But, yeah, if it had a major breakdown, then the value would become 768 almost nothing. 769 770 Vice Mayor Sova: Thank you. 771 772 Mayor Bunch: Councilwoman Elrod? 773 774 Ms. Elrod: Um, how much are we spending on maintenance for this truck? Is it breaking down each 775 month? 776 777 Mr. Everland: I, I don’t have those records, uh, with me. I don’t have those records available right now, 778 Tyler would have those. 779 780 Ms. Elrod: And so, is, is, is this truck breaking down each month? And costing us?

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781 [inaudible background discussion] 782 783 Mr. Everland: It's, I wouldn’t say it's broken down to the point where they, but they’ve had to have it in 784 for service fairly frequent. Um, uh, we haven't had a history of it, like, stranding the crew or anything to 785 that degree, no. 786 787 [inaudible background discussion] 788 789 Ms. Elrod: Thank you. 790 791 Ms. Wright: May I ask one more, please? 792 793 Mayor Bunch: Yeah, Councilwoman Wright. 794 795 Ms. Wright: Thank you. Did I understand you right? So, we, there has not been an issue with it breaking 796 down so that the crew cannot do its job, is that correct? 797 798 Mr. Everland: The best of knowledge, that's correct, but. 799 800 Ms. Wright: Thank you. 801 Mayor Bunch: Town Manager? 802 803 Ms. Dyrek: Just for clarification, the town has a vehicle replacement schedule, where the vehicles are on 804 their loo-, we're looking at the age, the number of miles and the, um, maintenance required on, on each 805 vehicle. And, we're very conservative and have been behind in, um, sort of updating our, uh, vehicles, in 806 keeping with that schedule. The goal is that we don’t want to ever be in a position where we have so 807 many vehicles that are aging and we, we are, we have a lot of vehicles that are, 2008 are like the newer 808 vehicles. So, we don’t want to be in a position where we're caught where we have to replace too many 809 vehicles at one time. We want to be on this rotation of every 10-14 years, that you are updating the 810 equipment so it's not a huge hit on, uh, the budget, or be caught with vehicles that break down. We just 811 don’t have the equipment to get the job done. So, that's the overall goal. And so, you know, we could get 812 more detailed information if you're looking for specifics on each vehicle, uh, but that's how we have 813 structured the, all the vehicles from the water trucks, the things that we don’t replace very often, to the 814 trucks that have a lot of miles on them. 815 816 Mayor Bunch: And we are at the end of the fiscal year; therefore, we're looking to do this while we still 817 can. 818 819 Ms. Dyrek: And again, these were scheduled for next fiscal year, but because of the water truck, which 820 is… 821 822 Mayor Bunch: Right. 823 824 Ms. Dyrek: Was ahead of it on the schedule, we simply swapped it so that the water truck will be in next 825 fiscal year. We've just bumped that up so that we're not taking a hit in one fiscal year. That's just too 826 much money in one fiscal year.

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827 Mayor Bunch: Alright, Councilwoman Clancy? 828 829 Ms. Clancy: Well, I see here, the current funds in the Public Works Vehicle Budget, totals $171,000 and 830 if both of the vehicles are replaced, or approved, there will be a remaining of still $66,000, almost 831 $67,000. So, if, if it's been sitting there, then this picture says a thousand words. It looks like, [laughs] a 832 mess. So does the other one, uh, you know, and I see the additions to it and I'm guessing there's, uh, a 833 good reason why. But, uh, I, I'm, I'm sold. I wouldn’t want to drive it up and down the roads that we 834 have 90% of the time in our town, so, I'm afraid the frame may break, just coming down my hill. 835 836 Mayor Bunch: Is that a gasoline or a diesel? Do you happen to know that off the top of your head? The, 837 uh, the old one. 838 839 Mr. Everland: The old one? 840 841 Mayor Bunch: Looks like gasoline. 842 843 Mr. Everland: It's gasoline. 844 845 Mayor Bunch: Is it gasoline? And we're looking at a diesel, and you’re gonna get a lot longer life out of 846 that engine. It will be a whole lot better, so. Anyway, any other questions from Council? 847 848 Ms. Elrod: As long as we maintain it, of course. 849 850 Mayor Bunch: Alright, let's see here. There is public comment on whether or not we ought to buy a new 851 pick-up truck. 852 853 Public Comment 854 Danny Piacquadio: I didn’t put one in for the public comment, but could I make a statement? 855 856 Mayor Bunch: About the pick-up truck? 857 858 Danny Piacquadio: Yes. 859 860 Mayor Bunch: Sure. 861 862 Danny Piacquadio: I have a question, um, who did you guys get your quotes for, for… 863 864 Vice Mayor Sova: Microphone, Danny, please. 865 866 [inaudible background discussion] 867 868 Danny Piacquadio: Quick question. Who did you guys get your bids for, for the pick-up truck? 869 870 Mr. Everland: They, this is under state contract, so, let's see, part of the Arizona state contract and, um, 871 this one is actually, again, when, when we weren't able to purchase the water truck, then, we went to, uh, 872 several different people and I know Tyler got his, uh, this is San Tan Ford.

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873 Danny Piacquadio: May I make a suggestion? 874 875 Mayor Bunch: I know what you're gonna… 876 877 Danny Piacquadio: Let's get a bid from a business that supports the Town, Sanderson Ford. It's time that 878 some of these employees start supporting businesses that support the Town. Let's just consider that. 879 That'd be my only suggestion. 880 881 Mr. Everland: Yeah, I believe, but, not sure, but I think Tyler had said he had actually, San Tan, or 882 Sanderson Ford wasn’t able to deliver, uh, any of the vehicles that was needed by the, uh, the end, June 883 30th. 884 885 Mayor Bunch: Well, we've gotta get one out of stock and they didn’t, didn’t have one in stock is what 886 you're telling me. 887 888 Mr. Everland: Right. 889 Mayor Bunch: Yeah, yeah. 890 Mr. Everland: That could be also set-up… 891 892 Mayor Bunch: Alright, anybody else got comments on pick-up truck with the, alright, we need a motion. 893 894 Vice Mayor Sova: I'll make a motion to approve of a 2018 Ford F350 Super Crew with utility bed and 895 lift gate, under Arizona State Contract number ADSP017-166124, for the purchase price, er, purchase 896 amount not to exceed $57,706.33. 897 898 Mr. McGuire: Second. 899 900 Mr. Smith: $59,000. 901 902 Mr. Everland: $59,000. 903 904 Vice Mayor Sova: 59, I stand corrected. 905 906 Mayor Bunch: You sit corrected. 907 908 [laughs] 909 910 Mayor Bunch: Okay, comments, Vice Mayor? 911 912 Vice Mayor Sova: Well, I know that anything that's, uh, 14 years old, and, uh, has 160,000 miles on it, 913 uh, with the use it gets and they're not highway miles, it's all local miles, short miles, which is, uh, a lot 914 of wear and tear on it and I also know that, uh, a, a mechanic, a craftsman, is only as good in doing their 915 job as the tools they have available. A pick-up truck is a very important tool and, uh, I'd like to see 916 something reliable, uh, that the can count on to get to and from where they need to go, uh, when they 917 need to get there. So, I, I support this. 918

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919 Mayor Bunch: Councilman McGuire? You had the second? 920 921 Mr. McGuire: Yes, I think Mr. Sova's taken some of the concerns that I was going to, uh, give myself. 922 His comments are well taken. 923 924 Mayor Bunch: And all I can say is I've been out with Marshal Stein in the, four o'clock in the morning 925 when we've had things break down in the middle of Cave Creek Road and had to have people come pull 926 a backhoe off the road for us. So, um, it's better to have stuff op-, operating when you need it, then it, uh, 927 then to have it break down. Alright, this, this, once again, financial. 928 929 Ms. Fuller: Councilman Smith? 930 931 Mr. Smith: Yes. 932 933 Ms. Fuller: Councilwoman Clancy? 934 935 Ms. Clancy: Yes. 936 Ms. Fuller: Councilman McGuire? 937 938 Mr. McGuire: Yes. 939 940 Ms. Fuller: Councilwoman Wright? 941 942 Ms. Wright: No. 943 944 Ms. Fuller: Councilwoman Elrod? 945 946 Ms. Elrod: Yes. 947 948 Ms. Fuller: Vice Mayor Sova? 949 950 Vice Mayor Sova: Yes. 951 952 Ms. Fuller: Mayor Bunch? 953 954 Mayor Bunch: Yes. By 6-1, motion carries. 955 956 The motion passed 6 to 1, by roll call vote. 957 958 Mayor Bunch: Moving along to agenda item number 5. 959 960 5. COUNCIL DISCUSSION AND POSSIBLE APPROVAL OF THE PURCHASE OF A 961 2018 FORD F250 SUPER CREW WITH UTILITY BED UNDER STATE CONTRACT NO. 962 ADSPO17-166124 FOR THE AMOUNT OF $45,171.91. 963

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964 Mr. Everland: Yes, this is the other vehicle, uh, it's also 2004 Ford, uh, that we want to replace. Uh, this 965 is instead of a 350, this is a 250. Uh, doesn’t have as, you know, quite as many, doesn’t need all the, the 966 things that are on the, uh, the 350 and, uh, so the price of this is $45,171.91. Uh, basically for the same 967 reasons that we, we spoke of and, uh, again, it's 14 years old. 968 969 Mayor Bunch: Councilwoman Wright? 970 971 Ms. Wright: Yes, just again, same comment, you mention it's non-reliable, but in what way is it non- 972 reliable? Has it broken down? Has the crew been stranded, or would it be fine for another couple of 973 years? 974 975 Mr. Everland: Again, yeah, I mean, it could be, it could be used for another couple of years, the answer 976 would be, would obviously be yes. Just the maintenance costs, you know, continually increases and the 977 concern is having a major breakdown with it, or major problems with it. 978 979 Ms. Wright: So, just because of its age, not that it has had that history? So this is something we're 980 assuming might happen? I guess, I drive a vehicle that's 20 years old, okay, and I'm not concerned about 981 it breaking down. So, I just, I'm a firm believer in the basic laws of economics. If the Town doesn’t 982 really need it at this moment, can we wait another year or two? So. 983 984 Mr. Everland: I think the big thing is, uh, two things, uh, if the vehicle breaks down, then we've got 985 employees who are effected, have lost time, different things, uh, you know, the, the Town, because it's a 986 work vehicle, and, and I, I think it was mentioned, this is, it's, the vehicle that has hard wear, not because 987 the employees don’t treat it right, uh, but it's obvious that any employees are not the same as you and 988 your own personal vehicle, uh, it's, and because it's used as a work vehicle, and it goes many places that 989 you obviously wouldn’t take your, you know, personal vehicle and different things, so, it's definitely 990 much harder wear and tear when it's used as, uh, you know, municipal vehicle especially when a road 991 corrodes, different things like that. So, uh, 14 years is a fairly long life for a vehicle that's used in this 992 capacity. That, that's the concern. 993 994 Ms. Wright: Thank you. 995 996 Mayor Bunch: Town Manager? 997 998 Ms. Dyrek: Mayor, may I add to, um, the response for Councilwoman Wright? 999 1000 Mayor Bunch: Yes. 1001 1002 Ms. Dyrek: I think it'd be helpful. This particular vehicle, according to the Town Marshal, was added to 1003 this, uh, to the list this year off of our vehicle maintenance schedule because twice in the last year it has 1004 been towed because it has major engine problems. 1005 1006 Ms. Wright: Okay. That's a big difference. Thank you. 1007 1008 Mayor Bunch: Alright, um, any other questions from the Council? Anybody want to talk to us about this 1009 one?

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1010 Public Comment 1011 None. 1012 1013 Mayor Bunch: Seeing and hearing none, we're back to Council for a motion, please. 1014 1015 Mr. McGuire: Uh, this a motion to approve the purchase of a 2018 Ford F250 Super Crew with utility 1016 bed under Arizona state contract No. ADSPO17-166124 for the purchase amount not to exceed 1017 $45,171.91. 1018 1019 Mayor Bunch: Second. Councilman? 1020 Mr. McGuire: Uh, I want to compliment Mr. Everland, uh, he made it clear that the, uh, F350 was not 1021 truly needed, that we could get the service that we need from a smaller vehicle and this is a, a wonderful 1022 example of Staff, uh, finding a way to conserve money. 1023 1024 Mayor Bunch: Alright. I had the second, so I'll make a comment. Since this is on the vehicle rotation 1025 schedule, it makes perfectly good sense so we don’t have to buy every-, the whole, replace the whole 1026 new fleet all in one year because we let things go so long that they just fall apart. Uh, once again, 1027 anybody else got a comment? Once again, it is, uh, financial. 1028 1029 Question from unidentified audience: I just want to know where you get your repairs done? Do you get 1030 them done in Town here, or do you go elsewhere? 1031 1032 Mayor Bunch: Um, I have no idea, that's… 1033 1034 [inaudible background discussion] 1035 1036 Ms. Dyrek: Town Marshal actually has, um, keeps the bids, um, and quotes up-to-date for service. 1037 1038 Marshal Stein: In answer to the gentleman's questions, um, we have tried to bid service in the local 1039 Town core, um, we only have, pardon me, we, we only have, uh, obviously one automotive repair place 1040 in Town. He could not compete with the much lower bids that we get at the other locations. It's more of 1041 a national company. 1042 1043 Mayor Bunch: Okay. 1044 1045 Question from unidentified audience: Who's the national company? 1046 1047 [laughs] 1048 1049 Marshal Stein: Firestone. 1050 1051 Question from unidentified audience: Off, uh, Carefree highway? 1052 1053 Mayor Bunch: Okay, we are actually back to Council for a, um, uh, for, for a roll call vote, please. 1054 1055 Ms. Fuller: Councilwoman Clancy?

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1056 Ms. Clancy: Yes. 1057 1058 Ms. Fuller: Councilman McGuire? 1059 1060 Mr. McGuire: Yes. 1061 1062 Ms. Fuller: Councilwoman Wright? 1063 1064 Ms. Wright: Yes. 1065 1066 Ms. Fuller: Councilwoman Elrod? 1067 1068 Ms. Elrod: Yes. 1069 1070 Ms. Fuller: Councilman Smith? 1071 1072 Mr. Smith: Yes. 1073 1074 Ms. Fuller: Vice Mayor Sova? 1075 1076 Vice Mayor Sova: Yes. 1077 1078 Ms. Fuller: Mayor Bunch? 1079 1080 Mayor Bunch: Yes. By 7-0, motion carries. 1081 1082 The motion passed 7 to 0, by roll call vote. 1083 1084 Mayor Bunch: So, we get, gonna get two of them. That one's in stock, too, I hope. Alright, agenda item 1085 number 6. Here's the fun part. 1086 1087 6. COUNCIL DISCUSSION, PUBLIC HEARING AND POSSIBLE ADOPTION OF THE 1088 TOWN OF CAVE CREEK FISCAL YEAR 2018-19 BUDGET. (Adoption of the tentative budget 1089 caps the total expenditures of the Fiscal Year 2018-2019 budget. Following the approval of the 1090 Tentative Budget, expenditures can be moved within the budget or lowered, but the overall total 1091 expenditures cannot be increased.) 1092 1093 Mr. Weddigen: Good evening Mayor and Council. This evening we hope to adopt the, uh, total tentative 1094 budget, which sets the maximum expenditure, uh, the expenditure limitation for the Town of Cave Creek 1095 and, um, we did a budget workshop last week, let me grab this keyboard, and there were some 1096 adjustments that we were making to the workshop version of the budget. And, that's what was 1097 encompassed in the memo and the motions that were suggested within the memo to, um, take effect. 1098 Um, so, essentially, we have, um, haven't already passed the tentative budget amount yet, but, uh, what 1099 we're looking for is we can either pass it at the amount that it was, uh, presented at the workshop and 1100 then amend it to, uh, reduce it by $82,000, which is the, uh, pavement project within the parking lot 1101 outside this building. So, um, once we do that, then we can also do these other changes we think we'll do

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1102 it by motion and that, basically, will give us the, uh, authorization, or the, uh, instruction to change the 1103 budget for these issues, which is, uh, after the pavement issue, there was the issue of, um, the Capital 1104 Improvement Budget from Desert Hills being reduced and that Capital Improvement, uh, Budget for 1105 Cave Creek being increased. And, this is for the, uh, rehabilitation of the CAP stations along the, uh, 1106 pipeline from the CAP to the, uh, uh, Water Treatment Plant. And then the other adjustment was to, 1107 basically, um, adjust the inter-fund transfer schedule, uh, to only, uh, uh, uh, equate to the amount of 1108 previous years, that means fiscal year '18 or prior, deficiencies as well as, um, yeah, deficiencies for the 1109 Enterprise Fund. So, uh, that, that's what this does. And, uh, that would mean that any deficiencies that 1110 result in fiscal year '19 would be carried as an inter-fund balance or due to due from, due to the General 1111 Fund, from the respective Enterprise Funds. So, um, those are the proposed changes based on the 1112 workshop. Uh, so, right now, I don’t know if you want to do a motion to, um, to adopt the tentative 1113 budget for fiscal year '19 in the amount that's the higher amount and then go to the lower amount with 1114 the amendment? Or, if you'd like to start with just the lower amount? 1115 1116 Mayor Bunch: Are we required to do public hearing first on this? 1117 1118 Ms. Dyrek: Uh, Mayor, yes. There is, there's a published, uh, notice for a public hearing and, uh, you 1119 have, um, the Water Advisory Committee recommendations, so, I've indicated to, um, Bob Morris, 1120 who's the chair of the Water Advisory Committee that he should come forward and present the Water 1121 Advisory Committee recommendations, so Council can have discussion or get any questions answered 1122 on those, prior to going, uh, through the remainder of the public hearing. 1123 1124 Mayor Bunch: I'm sitting here like a deer in the headlights, you see that? 1125 1126 [laughs] 1127 1128 Ms. Dyrek: We need, we need to open a public hearing… 1129 1130 Mayor Bunch: Okay, okay… 1131 1132 Ms. Dyrek: And then close the public hearing… 1133 1134 Mayor Bunch: I just need, I need the, I need you to simple… 1135 1136 Ms. Dyrek: And then have a motion to adopt the Town… 1137 1138 Mayor Bunch: I need the simple words, "Now we're opening the public hearing." [laughs] 1139 1140 Ms. Dyrek: But, but please accept the Water Advisory Committee from, from the Chairman's comments 1141 first, so you can have that… 1142 1143 Mayor Bunch: Right. 1144 1145 Ms. Dyrek: A discussion with them, uh, prior to going through the remainder of the public hearing. 1146 1147 Mayor Bunch: Right. We had too many instructions in a row, there.

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1148 Ms. Dyrek: Sorry. 1149 Mayor Bunch: Alright, Mr. Morris. 1150 1151 [inaudible background discussion] 1152 1153 Mr. Morris: Bob Morris, 6020 east Cielo Run South, Chairman of the Water Advisory Committee. Um, 1154 we received this a few days before our meeting and had very, very little time to look through this. Um, 1155 and the committee did look through it and did adopt a recommendation. Uh, that recommendation is that 1156 the budget needs more work. Um, uh, do you have my, the comments, uh, in front of you? In that case, I 1157 will, I will read these, then. 1158 1159 [inaudible background discussion] 1160 1161 Mr. Morris: The water companies have accumulated approximately 11 million dollars in support from 1162 annual subsidies, provided by the Town. These accumulated subsidies are recognized in the company's 1163 accounting system as loans from the Town's General Fund. They are really carried as an asset of the 1164 Town and a liability for the water companies. While the subsidies to the Waste Water System are well 1165 known and instituted by past Town Council's as necessary to continue the operations of that system, the 1166 water company's subsidies are relatively unknown to the Town citizens and those who work on the 1167 water system. Past subsidies have been spent. The money's gone. It's just an, a balance sheet issue. They 1168 do not constitute a requirement for current cash outlays. Thus, a decision to forgive them, which is what 1169 we're recommending here, is a bookkeeping change. Ongoing subsidies are different and would 1170 represent cash outlays. What we're saying is that the money that's been spent in the past on these, uh, 1171 subsidies, is gone, um, and they should be forgiven. The committee recommends to the Council that 1172 accumulated past subsidies be removed from the books at both the Town and the water companies and 1173 be considered forgiven. They are unrecoverable, given the status of both water enterprises. The 1174 committee notes that customers that incurred the benefit of these subsidies, those in the past, are not 1175 necessarily the same ones that would incur the cost of repaying them in the future. Those are different 1176 groups of people. If the rates were increased to allow for their recovery. Substantial rate increases would 1177 be required to assure these accumulated subsidies were recovered and there are more pressing issues that 1178 need to be addressed by the water systems. The committee recommends Council's approval for any 1179 future subsidies. It seems essential in, or if you are gonna monitor the health of the water companies, 1180 you ought to know where they are making money or losing money. It's my understanding that the, it was 1181 one Enterprise Fund and some effort has been made over the years to spread it out, and there is a 1182 considerable effort going on right now to actually do a, a true accounting and to break these systems 1183 down so they can truly manage what those costs are, but these subsidies were treated as a, an accounting 1184 entry at the end of the year and they just happened and subsequently, uh, they were kind of invisible for 1185 a number of years. We don’t think that's right. The committee endorses the current plans in the waste 1186 water rate study to gradually build a three month expense reserve, as a cushion to prevent emergency 1187 subsidies to Cave Creek and Desert Hills systems in the future. Right now, the, the Town essentially 1188 back stops the water companies. A well run water company, by AWWA standards, has two types of 1189 reserves, and we do not have those. The reserve that our water companies depend on is the Town. Um, 1190 and the subsidies, we are even subsidizing the, um, the Desert Hills system. Uh, I would think you'd 1191 want to know when you're using Cave Creek money to subsidize folks who don’t live in Cave Creek. 1192 So, we think that the three month expense subsidy, that means that you'll add three months’ worth of 1193 dollars in an account that's ready to be spent if something happens, if the water system, you don’t, not

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1194 selling as much water, or, or whatever happens, um, you have that money in there to, to carry the system 1195 and it starts to be on its own, rather than being dependent upon the Town General Fund for all its 1196 economic back-stopping. In all areas, um, and, and, um, by all areas, I mean all east of the three water 1197 companies, it's apparent the Town needs a comprehensive, strategic plan for the future. Major issues are 1198 confronting both water systems and the waste water system, including the potential for losing Carefree 1199 customer's businesses, business, uh, drought, and emergency preparedness, waste water deficits, Desert 1200 Hills water supply, growth and many, many others. We don’t have plans. We don’t have plans for the 1201 sewer system, what are we gonna hook up next? We don’t have plans for Desert Hills, where's the water 1202 coming from? We don’t have drought and emergency plans for our, for any of these systems. Those 1203 things are needed, because we're headed into a very, um, dangerous period. The latest word I saw was 1204 there's a 50% chance of, uh, allocated the, uh, CAP water beginning next year. Um, we're in tier two and 1205 it hits tier three first, but that could be the only start. Uh, next I'm gonna talk about each of the three 1206 water systems. The Cave Creek system, capital expenditures are substantially different between the 1207 current budget document and the CIP document. The document we have, um, and the one I have in front 1208 of me here shows $500,000. It seems like that was increased at a, uh, budget workshop. I'm sorry, I 1209 didn’t know it was happening, or I would have attended that workshop. Um, and, but, hold that thought 1210 about that high, that expense. But we, we didn’t feel like we were able to reconcile. We had $500,000 in 1211 one document, $1,500,000 in another document, and we couldn’t tell exactly which were current 1212 subsidies and which were past subsidies, uh, that were being dealt with in the transfers in section. I'll go 1213 through that in just a second. Um, the process to evaluate, uh, let's see, um, a, a process to evaluate these 1214 needs and the longer-term funding options requires more review time then is available. We just didn’t 1215 have time with just a few days. We only had out meeting a few days ago and we only got this a day or 1216 two before that. Um, the committee recommends that Council initiate planning for next year's budget for 1217 the Cave Creek system as soon as possible. This would involve a detailed engineering appraisal of the 1218 status of the CAP line stations. I'll just parenthetically say here, uh, that I, I think, uh, uh, this is my 1219 opinion, it's not necessarily my committees, but I think that is way premature. That project needs 1220 detailed engineering for feasibility and to design it. It's much bigger and it should not be approved in this 1221 budget. So, I'm just going on record saying that right here. This year's budget should be adopted to fund 1222 some areas. This include, the SCADA improvement, I mean, that is something that is, is very, very 1223 critical. We need the drought and water emergency study. It's not as simple as just hooking a line up to 1224 Phoenix or Scottsdale, or anybody else. There are all kinds of problems in that and all kinds of ways that 1225 it needs to be engineered and we need an engineering study to do that, to even get started with a plan and 1226 develop a cost for having a drought and emergency preparedness plan. I recommended that to you. Uh, 1227 our last recommendation to Council of about two months ago was to prepare just such a plan like that. I 1228 could not find it in here, but I certainly hope it makes this year's budget. Um, and here's a sentence, uh, 1229 this year's expenditures must be based on currently available funds and the capacity of the Town Staff to 1230 manage the projects effectively. I'd like to turn now to the budget document that was in the, uh, the 1231 agenda, I hope it's the one, although we already know of some issues with that. Um, I, I just want to, and 1232 it, it shows, uh, well let, let's just start with the overall system. Uh, there are some real concerning issues 1233 here. One issues is, is that the budget year to year is being, is, the budget is being compared to last year's 1234 budget. I think that tends to inflate and confuse the issue. It really ought to be compared to an actual 1235 cost, whether that be, like on here, the 2017 actual, or, what's not on here, or the 2018 actual plus 1236 estimated. When you compare a budget to a budget, you're comparing a guess to a guess. And, I'll just 1237 point out here, that, um, personnel costs in the entire system, have increased 37% in this budget, over the 1238 2017 actual. 37%. They've gone from $1.3 million to $1.8 million. The services budget has increased by 1239 57%, going from $1.7 million to $2.6 million. I don’t know where you think that money's coming from,

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1240 but I'm also on the rate study. The rate study has been done a couple different ways, but the latest one 1241 was supposedly a 6% increase on 2018, actual and estimated. Now, 2018 is one heck of a lot higher than 1242 2017. And so, I just don’t see where the money is coming from for this explosion of expenses that are on 1243 these, on these budgets. Especially in the personnel area. The, uh, in the Cave Creek system, uh, the rate 1244 st-, the, uh, 2018 budget was, um, $2,367,000. If you add 6% on that, which is what the rate study 1245 envisioned, that comes to $2,509,000. This budget is 24% higher than that. So, if you think the rate 1246 study, as it's currently constituted is gonna cover these increases and these explosions, it just isn't gonna 1247 happen. If you, if you increase the, uh, and if you add to that a $1.5 million CIP, rather than the money 1248 available in the infrastructure fund, plus some, there's another bunch of money. Every million dollars 1249 that you add to, just the Cave Creek system, or the Cave Creek customers, is $40 a month. I do not know 1250 where these, where this money is coming from. Um, I would really recommend that the Council ask for 1251 a reconciliation of this. Put these expenses down, find out how much, what the cash looks like, and 1252 where it's coming from. The revenues, I don’t believe can cover the amount of money that's in these 1253 budgets. Especially if you've now added a million dollar project that, in my view, is highly suspect and 1254 we're doing it without proper study. Some other concerns here is the high amount of overtime. The 1255 overtime in the system is, maybe that's where some of these personnel costs are going, um, but I noticed 1256 in the Cave Creek system, that, uh, there's, uh, out of the, uh, 2018 projected actuals, we have $108,000 1257 worth of overtime in a, in a, uh, uh, in the salaries and, the salaries and wages are $458,000. That's 1258 somewhere north of 20%. Uh, that's a little bit lower than it has been in the past, but it's still very, very 1259 concerning that that much overtime is required. Turning to Desert Hills system. The capital expenditures 1260 are substantially different between the budget and the current CIP document, and I understand that the 1261 wells have been taken out of, of that system right now. Um, the critical items are potential water well 1262 arsenic treatment to reduce, uh, Cave Creek's CAP allocation being diverted to Desert Hills. If we don’t 1263 put the wells in, we're gonna continue to send Cave Creek water down to Desert Hills. And, be more 1264 vulnerable to drought, and emergency outages because a well, anywhere in the system, reduces CAP 1265 water and gives you a little bit of water to help survive both emergencies and drought. Uh, not that that's 1266 the only solution. Here again, the drought and emergency preparedness engineering study needs to be 1267 funded so we know, we have a strategic plan on what we're gonna do in the drought and how we ought 1268 to be spending our money. We're flying blind on everything, uh, because we don't have strategic plans 1269 for any of these three systems. Um, the Desert Hills system had that money in it, the budget we 1270 reviewed, that was the, uh, million dollars or so, um, and, uh, the, the rates in Desert Hills, on the rate 1271 study, are going, were as high as 60% higher in some of the earlier runs. Now, those runs had errors in it 1272 that had been corrected. We have not seen the run recently, uh, but those, the rates, everywhere, I am 1273 super concerned that we're spending money we don’t know we have and if you're counting on having 1274 your rate increase from one of the highest rates in Maricopa County and going still higher, that's tough. 1275 Especially if you’ve not looked at every single expense, if we don’t spend the amount of time on this 1276 budget that we spend on a $40,000 truck. So, if, if we do spend money in Desert Hills, we think that it 1277 needs to be done through, uh, through debt. Through a loan. Uh, we could do it bonding, but there's 1278 another way, too, and that is, maybe Cave Creek wants to loan Desert Hills the money, at an interest 1279 rate, we've got the money sitting in the bank, maybe we can make some money on our, on our loan. We 1280 can, effectively, loan it to our self. That's just another idea, not having to go, uh, out to the bond market, 1281 and, uh, and using the financial resources, because we have good financial resources. We have some 1282 money, but, uh, there is no bigger advocate for the water system than me, but we've gotta be practical. 1283 It’s gotta pay for itself. Uh, the waste water system with never, maybe never, not in my lifetime, pay for 1284 itself. But, the other two water companies should do that. Um, so the, the rec-, the recommendation is 1285 that the budget and CIP should turn to Staff to reconcile the, uh, 2018 and 19 expenditures. The water

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1286 committee recommends the other expense items also be reconciled to the current water rate study to 1287 ensure a break even budget. The final one here is that the CIP and the 2018-19 budget have high 1288 investment expenditures in a system that is deeply negative. The committee supports critical investment 1289 necessary for the safe operation of the system, and that funded by developers. If developers will help us, 1290 uh, put the lift station pumps in and things like that, by golly, we ought to do that. Once again, a 1291 comprehensive strategic plan is needed to address expanding the system to nearby residents. There was 1292 money in the early plans and outer years to put in new lines, we probably need some, but we need to 1293 study what the cost is, an engineered cost, not just a horseback cost, and then look at how much revenue 1294 those lines will bring in and see if there's a payout to them. See if we can devise a system to do it. Every 1295 other town in Maricopa County has moved from septic tanks, uh, to sewer. We have a huge sewer plant 1296 down here, we ought to have some plan to get started on that in the near future. Um, I just wanted to, uh, 1297 to sum up here and, uh, first of all, there is explosive expense growth. It is explosive when compared to 1298 actual and not comparing budget to budget. Um, and it's both in expenses and it's amount of capital. Uh, 1299 I don’t think we have the capital to do everything we'd like to do and we, we surely don’t want to waste 1300 it. A system that can spend, I don't know, $100,000 a year and now you want it to spend $1.5 million, $2 1301 million, with temporary help, no engineers, that is a tall order and I'm speaking from experience there. If 1302 we're not careful, we're gonna waste that money and the waste goes directly into the rates that your 1303 customers pay. Um, another concern of the committee is that the prioritization that we went through the 1304 last two years was not followed this year. Now, there's been a lot of turmoil, we can understand it, but I 1305 really want to put in a pitch that the Council insist that solid budgeting and prioritization be done in 1306 these budgets. If you recall, we had it budgeted in tiers, tier one was critical, it just had to be done. It's 1307 done that way so that Council can choose how much money you can spend. You can go tier one, two, 1308 three and four, depending on how much money is available. It's a management tech-, technique for the 1309 executive management to be able to make the kind of decisions this system needs to get where it needs 1310 to go. Um, the other thing is, is there is, is a lot of money in transfers in. I really encourage everyone to 1311 understand in the transfers in section, how much of that transfer in is a write-off of a dead asset, which, 1312 who cares, and how much is it continuing subsidies. I really think this Council ought to put the stake in 1313 the ground and say we are not going to subsidize, um, Cave Creek and Desert Hills. Loaning money, 1314 where you get an interest back and you, the option would have been debt, hey, I think that might be a 1315 good idea. But, not just, we can't cover the bills and, uh, the checking account goes dry. So, that is it. I'm 1316 available for questions, if you have any questions. 1317 1318 Mayor Bunch: Council? Councilwoman Wright? 1319 1320 Ms. Wright: Nope. 1321 1322 Mayor Bunch: Councilwoman Clancy? I know you've got questions. 1323 1324 Ms. Clancy: It's, it's more of an observation. I agree with you and I think that we made that statement 1325 that the monies have been allocated, but it doesn’t necessarily mean they are being spent. Not without a 1326 plan. Not without, for example, the pumps that are evidently in the ground, some think need to be 1327 brought up. That money was moved over, but the, it can't be spent until we do an analysis of it, and I 1328 think showing good faith that, and maybe this is too much, um, that we do care about the system and we 1329 do want that water to be, and the infrastructure to be in place, for the future. What happens to Desert 1330 Hills is, is up in the air at this point. So, we don’t know, from that standpoint, what's gonna happen to 1331 Desert Hills. Uh, but we have neglected the system for so long that if we don’t put monies aside in the

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1332 budget for some of those expenditures as they come up, after they've been researched and studied, I 1333 mean, I'm disappointed in a couple we've had, prior to this moment, that didn't pan out. Uh, so, it's, I 1334 think, a step in the right direction. I think that, for the Town itself and for its future, those monies need 1335 to be allocated. If they're completely spent, I doubt they will be, um, they do have to be done with a plan 1336 in mind. 1337 1338 Mr. Morris: Well, if, if I, my, I guess my response to be, with that, and I'll use the same phrase I've used 1339 again that people are probably tired of hearing, is ready, fire, aim. 1340 1341 Ms. Clancy: But that's not what we're gonna do. 1342 1343 [inaudible background discussion] 1344 1345 Mr. Morris: Well, okay, it's, it's in the budget, um, I, I'm, I don't know if the engineering, but I know that 1346 there, if I was doing the budget, I would have the real priorities in this Town on the budget. Like, what 1347 are we gonna do, wha-, wh-, why, what are we gonna do with our excess CAP capacity? How do we get 1348 our CAP water back. 1349 1350 Ms. Clancy: Back, oh, yeah. 1351 1352 Mr. Morris: What do we do about drought? What do we do about emergencies? Those, to me, when 1353 you're facing allocations, and you have, you don’t have an emergency plan, you don’t have emergency 1354 equipment, to me, that is the most important thing in Town. Uh, that is, to me, that is the thing that needs 1355 to study the quickest. And that, I presented that to you about two months ago. 1356 1357 Vice Mayor Sova: Mr. Mayor. 1358 1359 Mayor Bunch: Vice Mayor. 1360 1361 Vice Mayor Sova: Uh, I have a question, perhaps of Mr. Weddigen. Would you care to, or could you 1362 comment on, uh, comments that were made, essentially, and I'll sum it up in a clear question, that we're 1363 spending money through the budget that we don’t have, nor will get. Or, would you like to take that 1364 under advisement and comment on that at a later date? 1365 1366 Mr. Weddigen: Vice Mayor, if I may, and Councilmember, Mayor, I would like to answer the question 1367 that you posed and, and that is, the, we have the money in the, in our accounts and it would be a loan, 1368 potentially, if Cave Creek Water System were to, for example, we're gonna choose that one, expend 1369 more than it takes in. What we determined last week was that if that were the case, with the Capital 1370 Improvement Program, um, based on the fact that we're accelerating a couple of the projects, that the 1371 rate payers would, essentially, be on the hook for those overages that were occurred in fiscal year '19 in 1372 future years, potentially. Um, so there, there's, the money is, we have the capacity to loan, essentially, as 1373 Mr. Morris had indicated, the Enterprise Fund, with no specific terms, um, the money from the General 1374 Fund to cover those overages. Um, did I answer the question completely, or did I miss this part, part of 1375 it? Okay. 1376 1377 [inaudible background discussion]

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1378 Mayor Bunch: Um, yeah, Councilman McGuire? 1379 1380 Mr. McGuire: Uh, I noticed that Mr. Kaylor, our, our, uh, Utilities Manager is here. Could you come up 1381 to the microphone please, Mr. Kaylor? 1382 1383 Mayor Bunch: Well, I didn’t know he was here, cause he was hiding behind Bob. 1384 1385 [laughs] 1386 1387 [inaudible background discussion] 1388 1389 Mr. Kaylor: Councilman McGuire. 1390 1391 Mr. McGuire: Yes, do you feel that the, uh, budget as it stands now, gives you the resources that you 1392 need to address the kinds of issues that Mr. Morris is, uh, is suggestion are, are important? 1393 1394 Mr. Kaylor: The budget, as presented, uh, tonight, and, and uh, it sounds like, uh, Bob and I are, and 1395 maybe other people are far apart. 1396 1397 Mr. Morris: We're not. 1398 1399 Mr. Kaylor: Bob is suggesting that anything that we do, as far as a capital improvement, has some sort 1400 of feasibility, analysis, cost/benefit ratio, etc. That's exactly what we did with the SCADA system. We 1401 broke the SCADA system down into two, three, three phases. Phase one was a, is a, is a research and 1402 design phase, phase two is a design phase and phase three is a construction phase. If you look at the 1403 CAP pump stations, they're 33 years old. Not a drop of actual maintenance has occurred. So, that is a 1404 high priority item. It's the highest priority item that, it's, it's the only dog we have in the show we have 1405 right now to get the water from the CAP canal into our CAP treatment plant. I don’t disagree that other 1406 resources should be looked at, I just don’t think that we're gonna find that kind of resource in a, in a year 1407 or two or three years and if we do, the cost is gonna be equal to doing, uh, the maintenance that's 1408 required on the booster stations and getting them into a fail-safe mode. So, any, any, uh, engineering, 1409 any engineering design for a CAP pump station and by, by, by the way, all, three of them are identical, 1410 the one at the canal is slightly different because it belongs to the, it's a CAP, um, driven pump station. 1411 But, it would include a, a design, um, option phase. Feasibility analysis that would give us options one, 1412 two and three. It's a confined space. Is there a way to take it out of confined space and do we have the, 1413 uh, right of way and the accessibility to do that? Option two might be let's take a look at, um, moving 1414 the pump station farther back off of the highway, leaving it in, in operation until we build the 1415 replacement and then, um, deactivating that station so, uh, the design of that nature would, in, the, the, 1416 the good part about the design is, is three of them are identical. So, if you do one, you're gonna, you 1417 have a cost-savings because the design effort is going to be, um, uh, implemented in the other three. 1418 1419 Mr. McGuire: Do you feel that this budget, as it now exists, gives you the resources that you need to 1420 address the issues that, uh, are present. 1421 1422 Mr. Kaylor: Yes, I do. Mayor and Councilmember McGuire, yes, I do. And the, the reality is, is that 1423 there isn't any town, I won't say any, they might be in Phoenix or large towns of that size, where you

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1424 would have internal engineering expertise to handle mul-, multiple projects like this. This project would 1425 require an engineering effort, there would be onsite inspection, you could get that from the engineer who 1426 designed it, you could get that from a contractor who is gonna do it. Um, the design effort for the 1427 booster stations would have to include, um, Bill and I, Bill Mattingly and I talked about, there's probably 1428 25-30% of the cost that would result in how do you keep the, how do you keep the existing station 1429 running while you, while you build the other stations? And, um, there's probably four or five options for 1430 that. So, before any dirt was turned, or there was any money spent, the feasibility analysis would, would, 1431 you would see that feasibility analysis come back to you before that actual dollar value were to be 1432 dedicated to a, an expenditure. But I, I, I, I don’t know how you can kick this can down the road any 1433 farther without getting into allocating the funds so that when, when you have a design, you can then 1434 implement, because the funding is there. 1435 1436 Mr. McGuire: Thank you. 1437 1438 Mayor Bunch: Councilman Smith? 1439 1440 Mr. Smith: Uh, thank you, uh, uh, Jim, I think that, that was a very useful, uh, discussion. Uh, when we 1441 had the, uh, workshop, we, we made the strategic decision and the strategic decision was that we would 1442 ensure the viability, to the degree that we could, of water coming up from the canal to the, uh, the plant 1443 first. And, and then there are a bunch of other things that are also in the Capital Improvement Program 1444 that would be done, but that's a critical thing, and that was a decision that was made, uh, by the Council 1445 and, uh, I understand where you are coming from, uh, uh, Mr. Morris, um, but, there's a lot of 1446 information we don’t have. I saw a flawed, uh, workup of a, uh, a rate plan, I don't know, two, three, 1447 four months ago? I haven't seen a thing since then and, uh, you know, it's being included in this budget, 1448 based upon, uh, I, I, I believe it's being based upon a belief that something will be coming out of it that 1449 can be understood and can be implemented. Uh, there's, there's a lot of things that, uh, that are in the 1450 budget. One of the things that you're concerned about is that we're experiencing a situation where we're 1451 going to end up with these loans, these phantom loans. I agree with you. I really don’t think they're, 1452 they're loans, they're expenditures and, uh, they needed to be treated that way. But, the way that this 1453 budget is constructed, it's, it's like moving money in, moving money out. It kind of balances out in the 1454 long run. This is a time when we actually have a fairly good amount of, uh, uh, funding that is in 1455 accounts and it's just been sitting there, almost no interest at all, and that it's, uh, the, uh, Council made a 1456 decision to utilize some of that money to do some critical stuff. And that, you know, I, I fully support 1457 that and I think that that's, uh, that's the direction we have to move in. 1458 1459 Vice Mayor Sova: Mr. Mayor? 1460 1461 Mayor Bunch: Vice Mayor? 1462 1463 Vice Mayor Sova: Madam Manager, Mr. Weddigen, Mr. Kaylor, uh, uh, no, no, not Mr. Morris. 1464 [laughs] Mr. Morris made the comments, asked the questions, uh, what I'm trying to seek is an answer, 1465 uh, to some of the comments that were made about, and I quote, "the explosiveness of some of the 1466 budget numbers." And, could any of you, uh, one was like overtime, there were a few others and 25%, 1467 37% more, uh, I remember discussing them quite candidly, I don’t remember the finite details of that 1468 discussion. I was hoping one of you younger people could refresh my memory on that. Mr. Weddigen? 1469

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1470 Mr. Weddigen: Yes, uh, thank you Vice Mayor, Mayor, Council Members. The, uh, increase in 1471 personnel costs is due, mainly, to a new position that's being created within this budget for a Utility 1472 Director that is dedicated to just the utility functions. Currently, that oversight was, in this fiscal year '18 1473 budget, was done through a Town Engineer/Utility Director/Utility Manager, um, and, uh, that seemed 1474 to be insufficient, in terms of the amount of efforts required of them to ensure the proper management of 1475 the utility function. Uh, there was a lot of overtime, we've had some turn over in the utility department, 1476 um, and, uh, so, in order to cover positions that were vacant, because of illness or turnover, there was a 1477 lot more overtime than usual in the actual side, uh, that's not necessarily driving the budget, uh, for 1478 personnel costs, but it is the extra position, um, mostly, um, then, um, what was the other line, oh, 1479 services. There's two, uh, some of the Capital Improvement Program, so the Capital Improvement 1480 Program, which is also really the terminology is interchangeable with Capital Improvement Plan, um, 1481 that, those projects that are identified, some, some are properly identified as Capital Outlay, and some 1482 are basically an increase in maintenance or services, and those, uh, two of the Trident units that are used 1483 to, uh, that's the piece of equipment that's used to filter the water, uh, to treat the surface water, and, uh, 1484 those are being overhauled during the year. So, that's $200,000 plus, in the, uh, services area instead of 1485 Capital Improvement and then, uh, the rest of the Capital Improvement, um, is coming from the, um, uh, 1486 Water Infrastructure Capital Improvement Fund of about a million dollars and then the, the remainder, 1487 um, is all in Cave Creek Water System, either in services or in capital, capital outlay. So, uh, that's kind 1488 of where the reconciling items, uh, need to come from and, uh, is there any other? 1489 1490 Vice Mayor Sova: No, thanks for refreshing my memory. Thank you. 1491 1492 Mayor Bunch: Councilwoman Elrod? 1493 1494 [inaudible background discussion] 1495 1496 Mayor Bunch: Oh, I'm sorry, Councilwoman Wright. You were telling me she wanted my attention. 1497 1498 Ms. Wright: Yes, just, so, you're telling me that 37% personnel increase is accounted by one person? 1499 One employee? 1500 1501 Mr. Weddigen: That's the majority of the increase. The other increases were, as we di-, discussed, um, 1502 last week, was a cost of living adjustment, um, and increase in state retirement that's required by the 1503 state as employer contribution, um, a small increase in medical insurance costs, and, um, I think there 1504 was one other item. 1505 1506 Ms. Clancy: A federal increase? 3.1% or something? 1507 1508 Mr. Weddigen: Uh, yeah, I, I, I don’t remember the other thing, but that's, basically, I think that was all 1509 of the, actually. I think I did cover them all, so. 1510 1511 Ms. Wright: And, I remember last budget, there was an excessive amount of overtime and it's there 1512 again. Can you give us some information on that? 1513 1514 Mr. Kaylor: I can speak to that. Mayor and Councilmember, the, the overtime that you’ve seen in the 1515 last couple years are, was basically as a result, as, as a, Robert mentioned, there was a lot of turnover,

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1516 vacancies that caused a lot of pe-, a lot of overtime in staffing. That's rapidly going to decrease. It's 1517 going to decrease as soon as 60-90 days from now. The refurbishment of the Trident units will allow us 1518 to basically have four fully functioning units. Um, during the winter time, the tankage (sp) that we have 1519 right now, which we will be operating a plant and a, and a batch mode, it's called a batch mode, we'll 1520 probably start the plant up at five or six in the morning, fill all the tanks, shut, shut the plant down, and 1521 then do maintenance with, with the people. We're rapidly approaching a full staffing level. As a matter 1522 of fact, I talked to the Plant Supervisor today and he plans, by August first, to have a full staffing level, 1523 so they'll be back to working their, um, eight, ten eight hour days with a, a rotating, uh days offs. So, 1524 that overtime was the result of, um, basically, planned, unplanned outages and lack of personnel. 1525 1526 Ms. Wright: Oh, thank you. 1527 1528 Mr. Kaylor: So, that, that, that will cease. I know we, we've, we do have overtime through the first six 1529 months of this year, but after we hit the September, October, it will drastically get reduced. 1530 1531 Ms. Wright: And then, Robert, also, I remember it was Councilwoman Clancy had asked this year, and I 1532 asked last year, to divide out the personnel costs so they're not like, in a lump, for in a department, for, 1533 for transparency for our citizens, as well as ourselves, but that didn’t seem to happen. 1534 1535 Mr. Weddigen: Thank you for the question, Councilmember. The, what we proposed to do, and I 1536 apologize for not have recalled it sooner, was, uh, we were going to produce a salary schedule for all of 1537 the positions within the Town, because that's the common display, and, um, I actually didn’t get a 1538 chance to do it. So, I do apologize for that omission. It wasn’t, it wasn’t because I was denying your 1539 request, it's just because I forgot and failed to do it. So, I apologize. 1540 1541 Vice Mayor Sova: Mr. Mayor. 1542 1543 Mayor Bunch: Vice Mayor. 1544 1545 Vice Mayor Sova: Uh, Mr. Kaylor, would it be true that once the, the SCADA system is fully up and 1546 operational, that will save a tremendous amount of man hours, not requiring people to drive out their 1547 physically, inspect, review and that would also, I believe drastically reduce the amount of overtime, if 1548 any, required. 1549 1550 Mr. Kaylor: Mayor and Vice Mayor, that's absolutely correct. Not only will the completed SCADA 1551 system, um, reduce overtime drastically, it will allow the, the current plan operators to operate the plant 1552 in a more efficient manner. For example, right now, there's SCADA coming into the treatment plant, but 1553 the only place you can see that is in the control room of the treatment plant. So, the new SCADA system 1554 will be, will be developed to allow a plant operator, who is on call, to pull that up on a laptop, an iPad, 1555 or whatever, even a telephone. So, if alarms go off, there's no need to, you know, drive the 15 miles 1556 back to the plant to see an alarm, you'll be able to see that and, and, and actually operate some pieces of 1557 equipment remotely. So, it's, it's a, it's a drastic change in the way the system is operated today, versus 1558 the way it will be in 18 months, or less. 1559 1560 Vice Mayor Sova: Thank you. 1561

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1562 Ms. Wright: Mayor, one more please. 1563 1564 Mayor Bunch: Councilwoman Wright? 1565 1566 Ms. Wright: Yes, Bob, you ment- some, you mentioned something that I felt very strongly when this all 1567 started, we were so rushed to look at this, with no time to study the budget, or to review it. I think we got 1568 it on a Thursday and we had it before Council on a Monday, just like what happened to you and I don’t 1569 think that's the right way to do this. We need another chance to evaluate, to, another reconciliation, I 1570 think is what you explained it as. Would that be correct? 1571 1572 Mr. Morris: I think there ought to be a timeline. I think there ought to be milestones put in the ground 1573 and when the tentative is there, when it goes to Water Advisory Committee, or whoever it goes to, and 1574 that, uh, so that we aren't calling, you know, special meetings on the spur of the moment and trying to 1575 run people down. 1576 1577 Ms. Wright: Yeah. Carrie, is there anything that, I think we need another look at this, some more time. Is 1578 there a way to have that? The whole budget. 1579 1580 Ms. Dyrek: Absolutely. Uh, Mayor and Council, you can call for a special meeting, but the tentative 1581 budget option should be set in place no later than June 30. 1582 1583 Ms. Wright: [inaudible] Mayor, would consider that? 1584 1585 Mayor Bunch: Well, you know, we're, excuse me. I've always said, with the bu-, with the budget, um, if 1586 we don’t budget for it, we can't spend it if it comes up. So, there's some numbers here that, that are, are 1587 larger than we would expect. We could put a 737 in the budget and just never fund it, because the money 1588 wasn’t there to actually buy the, buy the aircraft. It'd look bad, the budget would look huge, but we 1589 would never actually spend it. Um, what we're, what we're trying to do tonight is actually set a 1590 maximum up for, for what we can spend at any given time, uh, down the road, those, those items and 1591 expenditures could be moved from, um, uh, category to category, or even, even department to 1592 department, through transfers. So, um, I, you know, but. 1593 1594 Ms. Wright: Well I see that our budget went up $3,000,000. That's substantial. [inaudible] 1595 1596 Mayor Bunch: It certainly is, because, cause we've ignored, we've ignored a lot of stuff for a lot of years 1597 and that, I think, because we didn’t think we had the money or the, or the, the, um, uh, desire to do more 1598 in the way of maintenance and, and, and, uh, improvements, hasn’t actually been there, where this 1599 Council is actually showing that desire. Yeah, it's, it's up. There is no doubt about it and we're gonna 1600 look bad, there's no doubt about it, but we have, have not done the best job in, in the, in the, historically 1601 that, uh, that we should have been doing, I don’t think. 1602 1603 Ms. Wright: So, wouldn’t it be worthwhile to do the best job we could and have another look at this with 1604 a special meeting? 1605 1606 Mayor Bunch: Well, you know what, we can, we can have all the meetings you want to have, I, I just 1607 don’t happen to think they're necessary. Uh, Town Manager?

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1608 Ms. Dyrek: Mayor, perhaps I could clarify, um, the remainder of the process. So, should you adopt a 1609 tentative budget tonight, it simply caps the expenditures, but you will have a final budget adoption, um, 1610 that can be scheduled, say, the second meeting in July. So, you have the opportunity to move things 1611 around, or decrease the budget in any categories you want. This simply caps the expenditures and by the, 1612 um, final budget adoption, you can reduce or move or change, you know, the, the dollar amounts as long 1613 as your overall budget does not exceed this cap. So, it sounds, to me, like it's high, that you, you know, 1614 you're uncomfortable with how high it is, but you always have the opportunity to lower it by final 1615 budget adoption. 1616 1617 Ms. Wright: You do have the opportunity to lower it? 1618 1619 Ms. Dyrek: Oh, absolutely. This simply caps, caps the expenditures. But you can, at final budget 1620 adoption, you can move things around, change things, you know, where you want money. If you, if you 1621 decide that you don’t want some funds in one area, you can move it to another, you know, to reduce 1622 overall budget, as long as you're not exceeding this cap that you would put on this evening. 1623 1624 Ms. Wright: So, am I the only one that's interested in looking at this again? 1625 1626 [inaudible background discussion] 1627 1628 Mayor Bunch: Councilwoman Clancy? 1629 1630 Ms. Clancy: I, I think that, uh, at least for me, uh, the monies that have been put in there that are extra, 1631 as you know, particularly with the Water Committee, um, is, is in there because of the Water 1632 Committee, to a certain degree. And again, if we spend it, or not spend it, but cap it, at least it's in there 1633 and to begin the steps that we really do need to take, is, it's been put off for so long with an old system 1634 that if we don’t do something or at least allocate the funds and begin to do the work that needs to be 1635 done, because I agree with you, we're not gonna be able to, we shouldn’t go and spend it willy-nilly. It 1636 needs to have a purpose and a reason. So, we may end up carrying over a million dollars to the next 1637 budget, but, uh, that goes, that being said, [laughs] I think it behooves us to make sure that any monies 1638 that's being spent, don’t come off as the last rate study did, with monies being spent and then, no 1639 answers. And that’s the thing we need to avoid and that's why I hope you're on the Council. [laughs] 1640 1641 Mayor Bunch: That was a shameless plug. 1642 1643 [laughs] 1644 1645 [inaudible background discussion] 1646 1647 Mayor Bunch: Councilwoman Elrod. 1648 1649 Ms. Elrod: You know, I like the word pause. It won't hurt to take another look at it. So, I, I agree with 1650 you, Robert, well, and Eileen. 1651 1652 Vice Mayor Sova: Mr. Mayor? 1653

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1654 Mayor Bunch: Vice Mayor. Actually, I think we are still in hearing. 1655 1656 Vice Mayor Sova: Oh. 1657 1658 Comment from audience: We are. 1659 1660 Mayor Bunch: We should be listening to people that have, are there, are there other, are there other 1661 forms filled out, or? No? Oh my goodness. Mr. Arlen's got his hand up. 1662 1663 Ms.Clancy: We got, we got two. 1664 1665 Mayor Bunch: We've got one more over there, too, yeah. 1666 1667 Mr. Arlen: Bruce Arlen. Um, frankly, I'm, I'm new to this whole budget. Um, uh, hopefully a quick 1668 study, but, it seems to me there's enough concern tonight, even with the idea that we can cap it, which is 1669 kind of scary, capping unknown monies, in a sense, you can move it around, you can do all this stuff, 1670 but wouldn’t it be better to have a firmer, dialed in idea? You would do it for, with your own household, 1671 you would do it with your own purchases. I say, take that, that's a good word, pause, just for a moment, 1672 and do it right, because it's the right thing to do. Don't rush. You can take a breath and you guys could 1673 all become a little bit more familiar, because it seemed to me that almost everybody up here wasn’t 1674 completely familiar with the budget proposal. Seemed that way. I don't know if I'm right. So, take a, take 1675 a moment. That's what I wanted to say. I mean, I, it's a, it's a big deal to have a budget. Thank you. 1676 1677 Mayor Bunch: Sir? 1678 1679 Mr. Joe Friedman: Yeah. 1680 1681 Mayor Bunch: Please state your name and address. I didn’t have Mr. Arlen do that. 1682 1683 Mr. Friedman: Joe Friedman 40020 north Highland. Um, I just want to say, Mr. Morris is right on. He is 1684 spot on and I've been here since 2001, before 9/11. I live on Highland, the same street you live on, Ms. 1685 Wright. 1686 1687 Ms. Clancy: Me too. 1688 1689 Mr. Friedman: I'm sick of the, you too? I'm sick of the water problems. I'm sick of it breaking down and 1690 then my toilet turns brown, my shower doesn't work, it's constant. Why are we spending money on 1691 $40,000 statues at each end of town? I mean, this is ridiculous. We're spending money on trucks right 1692 now. There's, a lot has been said here tonight and I'll tell you what, you guys need to take your time on 1693 this one, because you're gonna get [sound effect-pst], if you don’t. That's all I got to say. 1694 1695 Mayor Bunch: Mr. Pie-ack-wah-aid-eo, as my phone says. [laughs] 1696 1697 [laughs] 1698 1699 [inaudible background discussion]

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1700 Mr. Piacquadio: Dan Piacquadio, Owner of Harold's, Cave Creek Corral. Um, as far as the water, uh, it 1701 is definitely a priority and from our businesses, we need to see, uh, we see increase in the rates, it's 1702 harder to compensate for those rates. Uh, I have personally had to have, um, Desert Foothills Plumbing 1703 change our filters twice in the last three weeks, so our ice machine will work and I ask them why is that 1704 happening, it's because of the water, the dirty water in the system. I would take the suggestion of having 1705 a special session. I think this is the most important topic we have. Now, the, the shameless plug, in that 1706 special session, let's reconsider fireworks. Thank you. 1707 1708 [laughs] 1709 1710 Mayor Bunch: There you go again. Anymore? Dr. Smith, there's no way you can just sit there. 1711 1712 [laughs] 1713 1714 Mayor Bunch: I knew it. 1715 1716 Dr. Smith: Thank you, uh, Mayor and Council. Um, I think it was unfortunate that, uh, Mr. Morris didn’t 1717 know about the budget work session. I thought it was a very productive session and constructive in the 1718 way in which we heard from, uh, Jim Kaylor, about the issues associated with the investments in the 1719 maintenance and upgrading of the pumps along the CAP line and the risks associated with drilling wells 1720 for Desert Hills. Those were issues that were not clear to me. Um, as far as the budget issues are 1721 concerned, it was very difficult in that session for anyone to appreciate the reconciliation between the 1722 expenses that the Town had to consider and the revenue sources when none of us had an idea how the 1723 rate study was gonna come out. I mean, as a number of speakers have suggested, after the corrections 1724 were made to the rate study, the Staff had to legitimately put that on hold while they prepared the 1725 budget, because there simply wasn’t enough time in the day to know exactly what those revenues are 1726 gonna be, as a result of revised rates. Indeed, from my perspective, I don’t even know what the revised 1727 rates will be, for anyone of the three enterprises, because there was a debate, precisely along the lines 1728 that, uh, Bob suggested, how do we decide the reserves? How do we decide what expenses in the Waste 1729 Water Treatment company will be covered? And how do we decide whether or not Desert Hills is gonna 1730 take a different set of rates than Cave Creek because we're no longer gonna subsidize customers outside 1731 the Town. So, there's a lot of uncertainty here. I know all of this takes a great deal of your time. I think 1732 many citizens would feel more comfortable if there was an opportunity to go over it one more time, even 1733 if the cap on the budget remains exactly the same. We'd be able to air in more in specific terms, exactly 1734 what the uncertainties are, with respect to revenues from water rates, with respect to other sources of 1735 revenues for the Town. And, um, I know it's using your time, not my time, uh, but that degree of 1736 assurance to the community would be helpful. Thank you. 1737 1738 Ms. Clancy: Thank you for attending that meeting. He was the only one there. 1739 1740 Mayor Bunch: Town Manager, would you like to? I see you looking at your calendar. 1741 1742 Ms. Dyrek: I'm looking at my calendar and there's another Monday in the month. That gives us an 1743 opportunity to meet on June 25th, and, uh, would then give Staff, should there be changes, but we could 1744 continue this hearing, the whole thing, and you could adopt the tentative budget, um, at that meeting

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1745 after hearing? Or, do you want to have a work session and then another Council meeting? I'm just trying 1746 to get a sense of how many meetings you'd like to have between now and June 30th. 1747 1748 Mayor Bunch: Well, we can't have an empty Monday. [laughs] 1749 1750 Ms. Dyrek: Well, but do you want it to be work session and then, you know. 1751 1752 [inaudible background discussion] 1753 1754 Ms. Dyrek: Then, you need another meeting, a Council meeting, then you're gonna need time for Staff to 1755 make any changes to finalize that budget to have a final budget adoption. So, if you want to have a work 1756 session, um, this week and then a Council meeting on Monday? Or, you have the meeting on Monday 1757 and, you know, we've got… 1758 1759 Vice Mayor Sova: Madam Manager, would you clarify one point for me? When does the Council have 1760 to have a budget approved? 1761 1762 Ms. Dyrek: The tentative budget, capped, the cap must be set by June 30th. 1763 1764 Vice Mayor Sova: The cap? 1765 1766 Ms. Dyrek: The cap. So, that's a tentative budget approval before the new fiscal year, July 1. 1767 1768 Vice Mayor Sova: And then? 1769 1770 Ms. Dyrek: The final budget adoption can be done in the new fiscal year. 1771 1772 [inaudible background discussion] 1773 1774 Mayor Bunch: Councilman Smith? 1775 1776 Mr. Smith: I would, uh, suggest that it would be worthwhile to pass a tentative budget now. Uh, what 1777 we're talking about is a number of dollars, and most of it is what, uh, is under, uh, a, a little bit of 1778 controversy is in the utilities budget. There's enough money there to, uh, accommodate a lot of things 1779 and if it gets shifted around, an accommodation of that can take place as well. But, uh, I think that rather 1780 than trying to cob together something in the next week or so, we'd be a lot better off if we pass a 1781 tentative budget, which does set a cap, at it’s a pretty, a relatively high cap this time, and we can work 1782 within that, I think, quite well. 1783 1784 Ms. Wright: I disagree completely, so. 1785 1786 Mr. Smith: That's good. 1787 1788 [laughs] 1789

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1790 Ms. Wright: I think we should go ahead and have another special, uh, work session to look at it again 1791 and see if we can lower that cap? 1792 1793 Ms. Elrod: I agree. 1794 1795 Ms. Wright: Why do we need to be three million dollars higher than we were last year's budget. Let's 1796 look at it again. We were rushed to begin with. We spent four hours, which wasn’t enough time to really 1797 do this justice. I think we should have another work session, followed by a meeting. 1798 1799 Ms. Elrod: We owe it… 1800 1801 [inaudible background discussion] 1802 1803 Mayor Bunch: Coun-, Councilman McGuire, you got, you're leaning in there like you want to talk into 1804 the microphone. 1805 1806 Mr. McGuire: Sometimes it's better if I don’t talk. 1807 1808 Mayor Bunch: Well, then I'll move on. 1809 1810 [laughs] 1811 1812 Vice Mayor Sova: Mr. Mayor. 1813 1814 Mayor Bunch: Yeah. 1815 1816 Vice Mayor Sova: Mr. Kaylor, Mr. Weddigen, uh, again, uh, is it true that the difference in the budget 1817 from the past fiscal year is primarily due to improvements, much needed improvements, in the water 1818 company? Be it the lines, the pumps, so on and so forth, so it was pointed out, the water comes out and 1819 it's not brown, there's some pressure there and, uh, if that's true, uh, that, that's pretty much to support 1820 long overdue improvements and maintenance to a much deteriorating, archaic system. I, I would support 1821 Councilman Smith's motion that we pass, or consider passing a tentative budget, capping it at the 1822 $21,534,589 number. It can always come down. But, am I right in assuming if it comes down, more than 1823 likely, any substantial decrease would come at a cost to the water company and the issues associated 1824 with it? With that would a fair assumption on my part? 1825 1826 Mr. Kaylor: Mayor and Vice Mayor, that would be a fair assumption, and, and I think the, uh, the, um, 1827 the main thing for the Council to understand is, is these improvements with the CAP pump stations have 1828 been in the Capital Improvement Program since the 2013 Master Plan, through various engineering 1829 people in the Town, there still, they were, they were identified in the Master Plan as a viable and 1830 necessary improvement and as the years passed, they got pushed and pushed and pushed, and, um, and 1831 you are correct, uh, Vice Mayor, that if there were substantial changes or decreases in the budget, it 1832 would come at the expense of those, uh, large projects, which are currently identified at about $350,000 1833 a piece, each pump station. 1834 1835 Mayor Bunch: Well, we, go ahead.

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1836 Ms. Wright: Thank you. Looking at the budget, I thought the three pumps added up to about a million 1837 dollars, not three million. 1838 1839 Mr. Kaylor: Oh, I'm sorry, did I say three million? 1840 1841 Ms. Wright: No, but that's what the budget is higher. So, if we went down, so, we'd, we could, the 1842 budget could be reduced substantially and it wouldn’t affect our primary focus, our critical focus of the 1843 three pumps. 1844 1845 [inaudible background discussion] 1846 1847 Mayor Bunch: How much was the number for reconditioning the, uh, the treatment plant? 1848 1849 Mr. Kaylor: Mayor, the, the, the number was going directly to CAP, CAWCD was $375,000. That's 1850 mandated to get that station up to their standard operating condition. 1851 1852 Mayor Bunch: So, call it $1.4 million on that and then you were talking about refurbishing the, uh, the 1853 scrubbers or whatever in the, uh… 1854 1855 Mr. Kaylor: The, those, those funds, Mayor, were coming out of the operational side, not the Capital 1856 Improvement Program side. 1857 1858 Mayor Bunch: Okay. Okay, but those weren't there last year? 1859 1860 Mr. Kaylor: That's correct. They weren't. 1861 1862 Mayor Bunch: That's an added number? 1863 1864 Mr. Kaylor: Well, well, I take that back. Um, those, those, again, were in the Capital Improvement 1865 Program, they, we, we, we moved them from the Capital Improvement Program into the operational, 1866 because they, that's, that's what they are, it actually is. 1867 1868 Mayor Bunch: Right. But they, they still add to the overall budget number. 1869 1870 Mr. Kaylor: Exactly. 1871 1872 Mayor Bunch: Because they weren't there before. And, how much was that, was that figure? 1873 1874 Mr. Kaylor: It was $400,000. 1875 1876 Mayor Bunch: Okay, so now we are $1.8 million. Yeah, uh, Mr. Morris, I see you. You took your hat 1877 off. 1878 1879 Mr. Morris: Both times, yeah, I want you to see my fine head of hair. 1880 1881 [laughs]

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1882 Mayor Bunch: I can match that. 1883 1884 [laughs] 1885 1886 Mr. Morris: There, there's an important point here that the interface between the rate study, how much 1887 money the Town's going to loan, and what the cash out-go is. The, the, the people that run the Town, the 1888 people on the rate study, doing all these things, really need direction from the Council. How much 1889 money are you willing to put in, that's not covered by rates? How much do you want the rate payers to 1890 pay, more than they are paying now, versus how much you're willing to, is it a loan, or is it a gift? Those 1891 are really important questions, because you can't come up with a rate study because the very first 1892 number you need is how much money you're trying to recover. That is the number one thing. All that 1893 Wildan does is slice and dice whatever you put in the front end and it comes out in a bunch of this stuff 1894 at the back end. But, if you don’t have that number going in the front end, and I have not heard that 1895 tonight, I, I, I'm, I'm leaving without any kind of sense, as to how much money you want your rate 1896 payers to pay and that is a critical thing for the Town's business. 1897 1898 Ms. Wright: So, it just seem to me we have numerous questions that need to be answered and we don’t 1899 know the answers until we go back and look at what we've done so far. 1900 1901 Ms. Clancy: I, I, I have a question. Being a municipality, sometimes there isn't always a return on the 1902 investment, when you have a finite group of people using the services. And, that's the tough part. The 1903 Town overpaid for something, way overpaid for something, then, bought something else and then 1904 overbuilt something else and that's the hard part. But if you don’t maintain what we have, and putting a 1905 study to it, I agree with you. The, you are not just gonna willy-nilly do it, but prioritizing what does need 1906 to be done and, and, and part of the debate is, with regards to those CAP deals, it, it's, you know, in the 1907 ground, I, I want to know if that's really a problem, or people just don't want to go down there? Um, 1908 have they ever gone out? I don’t know if there is any studies on it, that goes along with some of what 1909 Eileen is talking about as well, and I thought that this was something that was going to get looked at, but 1910 not done right away. To take a look at it, as opposed to saying it's, you know, $360,000 for each of them 1911 or 350, that if you do all three of them, perhaps you do the engineering on one and follow suit with the 1912 other two, might bring the cost down. 1913 1914 Mr. Kaylor: Mayor and Councilmember, I don’t want anybody to think that the only reason we would be 1915 looking at those, uh, pump stations is from a safety perspective. They are certainly confined spaces and 1916 there are very small confined spaces, um, it makes it exceedingly hard to maintain those pumps properly 1917 and maintain those stations properly because they're in that confined space category. But, the reality is, 1918 is that they're 33 years old and they really haven't seen much periodic maintenance over those 33 years. 1919 So, the weak link is not that they're confined space, the weak link is that it's, they're past their 1920 replacement page. 1921 1922 Mayor Bunch: And for people who weren't at the water, or at the budget workshop last time, let me kind 1923 of go over what he talking about. There's four pumps between here and the CAP line. If any one of those 1924 four fail, we've got less than 24 hours of water. 1925 1926 Ms. Clancy: They all go out, right? 1927

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1928 Mayor Bunch: Huh? 1929 1930 Ms. Clancy: One goes out, they all go out. 1931 1932 Mayor Bunch: If one goes down, they all go down. That straw coming from the CAP no longer delivers 1933 water to the, to the 3.3 million gallon tanks we've got in the Town. They are in vaults, way down in the 1934 ground, um, I can remember a, um, uh, years ago, a gentleman who had just gotten on the Water 1935 Advisory Committee, bringing a pump impellor in and showing it to us. [laughs] 1936 1937 [laughs] 1938 1939 Mayor Bunch: And, and, and, and what, and what, and what happens, and what happens when those 1940 pump impellors get like that, uh, you lose a vein on one, you get heavy vibration and you're dealing with 1941 an asbestos concrete pipe, you may create a break 30 feet away from that thing and you may have a 1942 catastrophic failure, worse than we had before, because then you'd be dealing with a pump and all of, 1943 digging all that up, and I, I really think it behooves us to take a look at making sure, I, I mean, I, I, pretty 1944 much believe, I understand rehabbing wells, but I believe that the more wells that you rehab, the water 1945 you pull out, the customers you're gonna have to have, because you're drying people's wells up around 1946 them. You, on the other hand, uh, I, I highly doubt that the CAP is ever going to go completely empty, 1947 um, at some point, you know, that, that's probably a more, um, while it may not be as much volume as 1948 we're looking for, it's certainly gonna still be there for a very long time. I think it, I think it behooves us 1949 to be responsible and make sure that, that we get the water out of the CAP canal and get it, get it up here. 1950 So, so that's what we've been talking about, as far as the, the $350,000 for the CAP station that belong 1951 to, uh, to the CAP, um, and then the three, the three additional pump stations on the way up here. Uh, I 1952 thought in case people were wondering what we were talking about. I just thought I'd kind of give an 1953 overview. 1954 1955 Ms. Clancy: Thank you. 1956 1957 Mayor Bunch: I don’t usually talk that much. Where are we at? 1958 1959 Mr. Smith: Mr. Mayor, can I make one, one… 1960 1961 Mayor Bunch: Uh, Councilman Smith. 1962 1963 Mr. Smith: Relative to the, uh, whether the money that I thought was a subsidy is a subsidy, or whether 1964 it's a loan, the first time I saw anything on that is when the, uh, the flawed Wildan report was provided 1965 to us and I looked at the numbers and I said, "Holy sh-!" Uh, there are numbers here that are just 1966 outrageous and we're expecting people to pay that money back and I think what happened, what has 1967 happened is there has been a policy decision made by non-policy makers. If that's a loan, the decision 1968 was made by, God only knows who made that decision, because the first time I saw it and the first time I 1969 ever heard any Council people talk about it, was after the Willdan report was, uh, presented to us. I, and 1970 I worked for government and I know the way that government money works, you don’t really make 1971 loans, you spend money. And, if the money gets spent to some entity, you do not expect that entity pay it 1972 back, unless it is specifically designated as some sort of a loan. And so, you know, I think the, I don’t

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1973 know if the Council's ever made a decision and I don’t know if the Council's every really discussed it. 1974 But, my vote would be, it's not a loan. It's a subsidy. The money was given away, it's gone. That's my… 1975 1976 Ms. Wright: Mayor, I think we're getting lost in the weeds. I thought we were supposed to be looking if 1977 we wanted to have another meeting, not… 1978 1979 Ms. Clancy: Well, it sounds like we might need one. 1980 1981 Mayor Bunch: Yeah, I, you know, since we're sending the, [laughs] you know. 1982 1983 Ms. Elrod: Another meeting. 1984 1985 Mayor Bunch: Okay, Carrie, will you want to, or, Town Manager, excuse me, I'm not supposed to first 1986 name you in here. What works? 1987 1988 Ms. Dyrek: Well, first of all, if I could clarify, this meeting needs to be continued to a date certain, so 1989 that we continue this and then have the tentative budget adoption. And, any day in between that date, 1990 you could have a work session, if that's the direction you're going. So, today is the 18th, um, next 1991 Monday is the 25th, and then you have until Saturday the 30th to, uh, have this meeting continued to 1992 adopt the tentative budget. So, I think once you decide that date, then you can back out into a work 1993 session date. 1994 1995 Mayor Bunch: People are typically used to Mondays for, for the, for the regular meetings. 1996 1997 Ms. Clancy: I agree. 1998 1999 Mayor Bunch: So, it's gotta be the 25th for the, for the, for the setting the, what we were trying to do 2000 tonight. 2001 2002 Ms. Dyrek: Okay. 2003 2004 Mayor Bunch: Which means that, either tomorrow, which there's not enough time to notice, well, a 2005 workshop, do we have to notice a workshop 24 hours ahead? We do. Um, we can't do it Wednesday, 2006 because there's a, a meet and greet over at the school on Wednesday. So, that leaves Thursday. 2007 2008 Ms. Dyrek: So, do it on the 21st? Mm-hm. 2009 2010 Mayor Bunch: Yeah. 2011 2012 Ms. Elrod: I can't do it until Tuesday. 2013 2014 Ms. Clancy: 21st works. 2015 2016 Mayor Bunch: That's what it's, that what's gonna have to happen, it looks like. 2017 2018 [inaudible background discussion]

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2019 Vice Mayor Sova: Uh, Mr. Mayor. 2020 2021 Mayor Bunch: Yes. 2022 2023 Ms. Elrod: Tuesday or Thursday of this week. 2024 2025 [inaudible background discussion] 2026 2027 Vice Mayor Sova: Would, would it be proper if someone made a motion to adopt the tentative budget, 2028 capping it at that twenty one plus million dollars, knowing that it can be reduced? Knowing that if it is 2029 reduced at a subsequent date, at a workshop, session or at a Council session? I think we've heard that it 2030 would basically, the reduction would more than likely, the majority of it, come out of vastly needed 2031 improvements to the water company. So, uh, if proper, I would be happy to make such motion. 2032 2033 Mayor Bunch: I would, I would, I would not object to your doing that. Let's see where we're at. 2034 2035 Ms. Elrod: Mayor, we could do that and talk about that during the work session. 2036 2037 Ms. Wright: Yes. 2038 2039 Vice Mayor Sova: Uh, if I may, we're, if, if you're, you're establishing a cap, not to exceed… 2040 2041 Mayor Bunch: That's all we're doing. 2042 2043 Vice Mayor Sova: Uh, I don’t see why it can't be done or shouldn't be done tonight, but that's my own 2044 personal feeling. 2045 2046 Mayor Bunch: And that, well, and that gives you what, three, three or four weeks to, uh, to actually have 2047 meetings and discuss what we're gonna do with, with the real, with the final, whether we wish to reduce 2048 it or not, as opposed to… 2049 2050 Vice Mayor Sova: That's my feeling also. 2051 2052 Mr. Smith: Yeah, it gives a month to work things out. 2053 2054 Mayor Bunch: Yeah, yeah, it does. I mean, I see that as a, as a, as a benefit rather than trying to hash it 2055 all, we don’t have to hash it all right now. 2056 2057 Ms. Clancy: We don't. 2058 2059 Mayor Bunch: The rules say we just set, we just set an upper limit and, uh, that's, we're setting an upper 2060 limit and, and we can't go, if we don't, if we don't, if we don't budget it and we need to do something, we 2061 can't spend it. That's, that's the bottom line here on that. So, yeah, go ahead. 2062 2063 Vice Mayor Sova: Then I hereby make a motion to adopt the Town of Cave Creek Fiscal Year 2018- 2064 2019 Tentative Budget as amended, capping the total budget amount of $21,534,589.

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2065 Mr. Smith: Second. 2066 2067 Mayor Bunch: I, see, do we need a, four, or a simple majority, or is this super majority on this one? 2068 2069 Ms. Dyrek: Just simple. 2070 2071 Mayor Bunch: Simple? Okay. Alright, I guess we are gonna need a roll call on this one. 2072 2073 Ms. Fuller: Councilman McGuire? 2074 2075 Mr. McGuire: Yes. 2076 2077 Ms. Fuller: Councilwoman Wright? 2078 2079 Ms. Wright: No. 2080 2081 Ms. Fuller: Councilwoman Elrod? 2082 2083 Ms. Elrod: I'm gonna pass right now. 2084 2085 Ms. Fuller: Councilman Smith? 2086 2087 Mr. Smith: Yes. 2088 2089 Ms. Fuller: Councilwoman Clancy? 2090 2091 Ms. Clancy: Yes. 2092 2093 Ms. Fuller: Vice Mayor Sova? 2094 2095 Vice Mayor Sova: Yes. 2096 2097 Ms. Fuller: Mayor Bunch? 2098 2099 Mayor Bunch: Uh, yes. Um, by a, oh, did you want to come back? 2100 2101 Ms. Elrod: Yes, I did, and my vote is no. 2102 2103 Mayor Bunch: Okay, by a vote, uh, by 5 to 2, motion carries, capping the budget, uh, that's the 2104 maximum we will be able to spend in the next fiscal year and, uh… 2105 2106 The motion passed 5 to 2, by roll call vote. 2107 2108 Ms. Clancy: Or, you can lower it. 2109

06182018 Regular Council Minutes Page 46 of 48 Page 180 of 324

2110 Mayor Bunch: It will likely be, could, will likely be less and if the money's not available, it will 2111 certainly be less. Um, having uh, having uh, done that, then I guess we're… 2112 2113 Ms. Wright: So, Mayor, what happened to our meeting schedule? 2114 2115 Mayor Bunch: We don’t need it. 2116 2117 Ms. Dyrek: Well, are you going to have a work session? 2118 2119 Mayor Bunch: Yeah, we, give us a work session on some day that makes. 2120 2121 Ms. Dyrek: Or do you want to do this at, uh, the July 2nd meeting? Do we have any other items on the 2122 agenda, Jane, for July 2nd? Jane, do we have other items scheduled for July 2nd? 2123 2124 [inaudible background discussion] 2125 2126 Ms. Dyrek: I think July 2nd is open. 2127 2128 Mayor Bunch: Okay, so, we'll go back and we'll… 2129 2130 Ms. Dyrek: Um, we could go have a work session of the budget for the entire meeting. 2131 2132 Mayor Bunch: Okay. 2133 2134 Ms. Dyrek: I think that's what we've got right now. 2135 2136 Mayor Bunch: July 2nd. 2137 2138 Ms. Clancy: Still in a meeting. 2139 2140 Mayor Bunch: That's the one we were looking to not have. Now, we're gonna do it. 2141 2142 Ms. Dyrek: Okay. 2143 2144 [inaudible background discussion] 2145 2146 Mayor Bunch: Okay, so I guess we. 2147 2148 Vice Mayor Sova: What is it that you are proposing on July 2nd? 2149 Ms. Clancy: What did we just say? Are we going to have it when? 2150 2151 Ms. Dyrek: You scheduled your July 2nd regular meeting. You're keeping it, so you can do all, all 2152 budget, all night. I don’t, I don’t know that we have anything else scheduled for that meeting. 2153 2154 Mayor Bunch: Yeah. That'll work. 2155

06182018 Regular Council Minutes Page 47 of 48 Page 181 of 324

2156 Ms. Clancy: Can we, can we start earlier? 2157 2158 Mr. Smith: Yeah, let's start at three. 2159 2160 [laughs] 2161 2162 Mayor Bunch: No, because if you start earlier, then you're messing with the transparency and the 2163 residents won't be able to come and they're used to 7 o'clock. If you're gonna preach transparency… 2164 2165 [laughs] 2166 2167 Ms. Clancy: Alright, how about five? 2168 2169 [laughs] 2170 2171 Mayor Bunch: Okay, do we have a mo-… 2172 2173 Ms. Clancy: We'll go 'til ten if we start at six. 2174 2175 Mayor Bunch: You know what, I appreciate everybody hanging with us tonight, this has been a real 2176 hoot. Motion to adjourn? 2177 2178 Ms. Clancy: So moved. 2179 2180 Mayor Bunch: Alright. 2181 2182 Meeting adjourned at 9:22 PM.

06182018 Regular Council Minutes Page 48 of 48 Page 182 of 324

RESOLUTION NO. R2018-15

A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF CAVE CREEK FINALLY DETERMINING AND ADOPTING ESTIMATES OF PROPOSED EXPENDITURES BY THE TOWN OF CAVE CREEK FOR THE FISCAL YEAR BEGINNING JULY 1, 2018 AND ENDING JUNE 30, 2019 ESTABLISHING THE ALTERNATIVE EXPENDITURE LIMITATION AMOUNT, AND DECLARING THAT SUCH SHALL CONSTITUTE THE ADOPTED BUDGET OF THE TOWN OF CAVE CREEK FOR SUCH FISCAL YEAR.

WHEREAS, pursuant to the provisions of the laws of the State of Arizona, the Town Council is required to adopt a Budget, and

WHEREAS, the Town Council has prepared and filed with the Town Clerk a proposed Budget for the fiscal year beginning July 1, 2018 and ending June 30, 2019, and which was tentatively adopted on June 18, 2018, and

WHEREAS, due notice has been given by the Town Clerk, as required by law, that this tentative Budget with supplementary schedules and details is on file and open to inspection by anyone interested; and

WHEREAS, a public hearing has been held on this tentative budget as required by law.

NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF CAVE CREEK, ARIZONA AS FOLLOWS:

SECTION 1. That the Town Council has finally determined the estimates of expenditures which will be required of the Town of Cave Creek for the fiscal year beginning July 1, 2018 and ending June 30, 2019.

SECTION 2. That the Purposes of Expenditure and the amount finally determined upon for each purpose as set forth in Schedules A, B, C, D, E, and G attached hereto, constitutes the official and finally adopted budget of the Town for the 2018/2019 fiscal year as subject to the State Budget Law.

SECTION 3. That the total amount of expenditures set forth in Schedules A, B, C, D, E, and G represent the maximum expenditure limitation for the Town of Cave Creek for Fiscal Year 2018 - 2019.

SECTION 4. That money from any fund may be used for any of the purposes set forth in Section 2, except money specifically restricted by State law, Town Ordinances or Resolutions.

Page 183 of 324

PASSED AND ADOPTED this day of August, 2018.

APPROVED: ATTEST:

______Ernie Bunch, Mayor Carrie A. Dyrek, Town Clerk

APPROVED AS TO FORM:

______William J. Sims III, For the Firm Sims Murray, Ltd.

Page 184 of 324

Town of Cave Creek, Arizona

FY 2019 Annual Budget‐Final

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 1

Page 185 of 324 TABLE OF CONTENTS

INTRODUCTION Overview ...... 5 Budget Assumptions/Trends ...... 6 Elected Officials ...... 7 General Plan...... 7 Financial Policies/Planning ...... 7 Community History ...... 8 Location ...... 8 Statistics ...... 8 Town Wide‐Budget by Fund Diagram ...... 10 Town Organization Chart ...... 11 TOWN WIDE (All Funds) Summary by Type and Fund ...... 12 Summary of Sources and Uses by Type ...... 13 Summary of Sources and Uses by Fund ...... 15 GENERAL FUND Overview ...... 18 Summary of Sources and Uses by Type ...... 18 Summary of Sources and Uses by Department ...... 21 Detail of Revenues ...... 23 Detail of Transfers ...... 24 Departments Town Manager Overview ...... 25 Expenditure Details ...... 27 Administration Overview ...... 28 Expenditure Details ...... 31 Legal Services Overview ...... 32 Expenditure Details ...... 34 Planning, Zoning, & Economic Development Overview ...... 35 Expenditure Details ...... 39 Building and Fire Safety Overview ...... 40 Expenditure Details ...... 45 Law Enforcement Overview ...... 47 Expenditure Details ...... 49 Magistrate Court Overview ...... 50 Expenditure Details ...... 52

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 2

Page 186 of 324 Finance Overview ...... 53 Expenditure Details ...... 56 Town Council Overview ...... 57 Expenditure Details ...... 59 Contingency Overview ...... 60 Expenditure Details ...... 62 Public Works Overview ...... 63 Expenditure Details ...... 67 Special Events Overview ...... 68 Expenditure Details ...... 70 SPECIAL REVENUE FUNDS Highway Users Revenue Fund (HURF)‐Public Works Overview ...... 71 Summary of Sources and Uses by Type ...... 72 Detail of Revenues ...... 74 Expenditure Details ...... 74 Sewer Improvement District #2 Overview ...... 75 Summary of Sources and Uses by Type ...... 76 Detail of Revenues and Expenditures ...... 76 Spur Cross Ranch Conservation Area Overview ...... 77 Summary of Sources and Uses by Type ...... 78 Detail of Revenues and Expenditures ...... 78 Trails Fund Overview ...... 79 Summary of Sources and Uses by Type ...... 79 Detail of Revenues and Expenditures ...... 80 Parks & Trails Overview ...... 81 Summary of Sources and Uses by Type ...... 81 Detail of Revenues and Expenditures ...... 82 Open Space Acquisition Overview ...... 83 Summary of Sources and Uses by Type ...... 83 Detail of Revenues and Expenditures ...... 84 Grants Fund Overview ...... 85 Summary of Sources and Uses by Type ...... 85 Detail of Revenues and Expenditures ...... 86

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 3

Page 187 of 324 DEBT SERVICE FUNDS Town Hall Debt Service Overview ...... 87 Summary of Sources and Uses by Type ...... 87 Detail of Revenues and Expenditures ...... 88 CAPITAL PROJECT FUNDS Open Space & Trails Overview ...... 89 Summary of Sources and Uses by Type ...... 90 Detail of Revenues and Expenditures ...... 90 Water Infrastructure Overview ...... 91 Summary of Sources and Uses by Type ...... 92 Detail of Revenues and Expenditures ...... 92 ENTERPRISE FUNDS Overview ...... 93 Summary of Sources and Uses by Type ...... 94 Cave Creek Water System Fund Overview ...... 95 Summary of Uses by Type ...... 97 Revenue Details ...... 98 Expenditure Details ...... 98 Detail of Transfers From ...... 99 Desert Hills Water System Fund Overview ...... 100 Summary of Uses by Type ...... 103 Revenue Details ...... 104 Expenditure Details ...... 104 Detail of Transfers From ...... 105 Wastewater Treatment Plant Fund Overview ...... 106 Summary of Uses by Type ...... 109 Revenue Details ...... 110 Expenditure Details ...... 110 Detail of Transfers From ...... 111 APPENDIX A Official Budget Forms ...... 112 APPENDIX B Positions and Salary Ranges by Department ...... 124

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 4

Page 188 of 324 Introduction

Overview

Each year, the Cave Creek Town Council adopts a budget that is based on a fiscal year that begins July 1st, and ends June 30th. Arizona law requires that the Town adopts a budget each year to ensure that planned expenditures are balanced with anticipated town revenues. For management purposes the Town adopts a budget by department for the General Fund and in total by fund for other funds. Once the tentative budget is adopted by the Council it sets the maximum expenditures for the year. Subject to Town Council approval, the Town Manager may transfer any unencumbered appropriation balance or portion thereof between any departments. Since January, management and staff have been preparing, refining, and submitting budget estimates for revenues and operating budgets. The Town Manager met several times with Council Members reviewing the budget. Our sincerest appreciation goes out to staff and Council for their efforts.

This year’s total final budget and expenditure limitation is $21,452,589. When compared to last year’s budget of $18,220,678 it’s a $3,231,911 increase over the FY 2018 budget. This is mostly due to increases in capital expenditures compared to the previous years. The FY 2019 budget resolves to eliminate previous balances owed from prior years to the General Fund by the Enterprise Fund for operational shortfalls through a permanent interfund transfer of approximately $8.4 million. Additional operational shortfalls for FY 2019 of approximately $2.6 million will be incurred for FY 2019 water and wastewater cost over runs. In addition, there will be a remaining amount owed by each of the water and wastewater funds for the cash lent by the General Fund for their respcective WIFA required reserves. Further, the FY 2019 budget emphasizes the funding of maintanence of the water and waste water systems, road maintenance and construction, and park improvements. The significant change in the organizational structure driving budget changes is the separation of the Enterprise Fund into three separate enterprise type funds. The chart below presents a comparison of annual expenditure budgets including transfers for 10 years.

Town of Cave Creek Annual Expenditure Budget vs Actual Total 45,000,000

40,000,000

35,000,000

30,000,000

25,000,000

20,000,000 15,000,000

10,000,000

5,000,000

‐ ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

EXPENDITURES TRANSFERS Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 5

Page 189 of 324 Budget Assumption/Trends

There are several factors that were considered when preeparing the budget estimates for revenues and expenditures. On the revenue side, experience gained by actual trends in revenues guided the projection for taxes and some fees. While projections for state shared revenues were provided by the state itself. In support of both is the continued economic growth in Arizona highlighted by the increase in real esttate activity and construction activity over the prior year. Tied with consumer confidence, aboove average population in terms of education and household income, the Town and its residents are well positioned to continue to benefit from the growing economy. Below are charts showing an expected rise in local non‐ construction sales tax revenues over the prior year. Construction activity should continue to be quite strong in FY 2019.

On the expenditure side, expenses are expected to increase. The Consumer Price Index for the West Urban area provided by the Bureau of Labor and Statistics indicate the increase over last year costs to be about 3.1%. Several services and commodities are expected to increase in cost over last year, with some indication from providers that price increases would occur. Items like fuel and electricity are projected to increase in cost. Theere were several changes expected in the calculation and projection for labor costs. In FY 2019, employees would be eligible for a

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 6

Page 190 of 324 cost of living increase of 3.1%. Merit pay raises have been budgeted for but would be varied based on performance review scores and budget constraints, not every employee will be eligible for nor receive a merit based change in pay of up to 2%. In fact, no merit increases were awarded in FY 2016 or FY 2017. For FY 2019 medical benefit costs are expected to increase about 5%. Retirement benefit costs are expected to be more than last year as actuarially determined employer mandated contribution rates were increased by the State.

Elected Officials

The Town of Cave Creek operates under the Council‐Manager form of government. An elected Town Council consisting of seven members is responsible for making policy, passing ordinances, and voting appropriations. The Town Manager is responsible for overseeing operations, supervising staff and implementing the policies adopted by Council.

Mayor‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Ernie Bunch

Vice Mayor‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Ron Sova

Council Member‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Susan Clancy

Council Member‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Eileen Wright

Council Member‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Mary Elrod

Council Member‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐David Smith

Council Member‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Thomas McGuire

General Plan

In August 2016 the new General Plan was not ratified by a public vote. The Planning Commission will be reviewing the former proposed General Plan, and per State law, develop a 2018 General Plan for presentation to the Town Council and voters. The 2005 General Plan remains in effect as the guiding document in planning for the development and preservation of the Town. The 2005 General Plan vision for the Town is: “A western, equestrian lifestyle, with rural development patterns, dramatic views, trails, open spaces and wildlife habitats.”

Financial Policies/Planning

The Town’s policy to set aside 8% of General Fund sales tax and state shared revenues for a contingency line item. This assists the Town in remaining fiscally prudent. In addition the town

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 7

Page 191 of 324 is required and has built reserves in amounts equal to twelve months of debt service payments as well as reserves for repair and replacement of water/wastewater infrastructure. The Town also strives to ensure that the Enterprise fund will be as self‐sufficient as possible. To assist the Enterprise Fund and to ensure financial stability of the Town, the Town is hiring a utility rate consultant to review utility rates.

Community History

The Town of Cave Creek, Arizona was settled in 1870 and was incorporated on the 8th day of July 1986. At the time of incorporation, the Town encompassed twenty‐five (25) square miles and had a population of approximately 2,300. The Town of Cave Creek is named for Cave Creek Wash, the small stream that originates in the hills to the northeast and flows southwesterly for 25 miles before reaching the vicinity of Paradise Valley. The stream derives its name from a high, overhanging bluff along its west bank that forms a wide open‐mouthed cavern about two miles north of the present‐day Town business district. Currently, the Town encompasses approximately thirty‐eight, (38) square miles and has an approximate population of 5,400.

Location

The Town of Cave Creek is located in northern Maricopa County and is bounded by the Tonto National Forest to the north, Phoenix to the west and south, Carefree to the east and Scottsdale to the southeast. The Town of Cave Creek is well situated for access to regional transportation. Interstate Highway 17 (I‐17) is located approximately eight miles to the west, via the Carefree Highway. This north/south route connects Phoenix and Flagstaff. The freeway 101 Loop is accessible 12 miles to the south, from Cave Creek Road. This road provides connections to the commercial and shopping areas in the East Valley. Air transportation is available at Scottsdale Municipal Airport, Deer Valley Airport and Sky Harbor International Airport. Recreation opportunities are available at nearby Lake Pleasant, Bartlett Lake, Spur Cross Ranch Conservation Area, Cave Creek Regional Park, and Gateway Desert Awareness Park.

Statistics

Land: 37.91 Square Miles

From the 2010 U.S. Census (last updated 2015): https://factfinder.census.gov/faces/nav/jsf/pages/community_facts.xhtml# 2,787 Housing Units Population: 5,122 People (2015 estimate) 51.9% Female, 48.1% Male Age 19 and under, 16.6% Age 65 and older, 26.1%

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 8

Page 192 of 324 Median household income, $76,149 (State, $50,255) 2.39 persons per household Bachelor’s degree or higher, 48.3% (State, 27.5%) Median value of owner‐occupied housing units $465,500

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 9

Page 193 of 324 *Not including transfers out

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 10

Page 194 of 324

Page 195 of324

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 11 11

Town Wide

FY 2019 Budgeted Sources and Uses and Ending Fund Balance by Fund

GENERAL FUNDS SPECIAL REVENUE FUNDSDEBT SERVICE FUND CAPITAL PROJECT FUNDS ENTERPRISE FUNDS SEWER SPUR CROSS WATER CAVE CREEK DESERT HILLS WASTEWATER TOTAL IMPROVEMENT CONSERVATION PARKS & OPEN SPACE GRANTS TOWN HALL DEBT INFRASTRUCTURE OPEN SPACE & WATER SYSTEM WATER SYSTEM TREATMENT GENERAL FUND HURF DISTRICT #2 AREA TRAILS TRAILS FUND ACQUISITION FUND SERVICE CAPITAL TRAILS FUND FUND FUND FUND SOURCES: LOCAL TAX $ 4,947,000 $ ‐ $ ‐ $ 931,500 $ ‐ $ ‐ $ ‐ $ ‐ $ 15,600 $ ‐ $ ‐ $ ‐ $ ‐ $ 931,500 $ 6,825,600 LOCAL FEES 897,450 ‐ 2,500 600 ‐ 18,600 ‐ ‐ ‐ ‐ ‐ 5,006,080 2,424,050 1,098,925 9,448,205 STATE SHARED REVENUES 1,457,717 344,035 ‐ ‐ ‐ ‐ ‐ 158,000 ‐ ‐ ‐ ‐ ‐ ‐ 1,959,752 MISCELLANEOUS 277,800 ‐ ‐ ‐ 50 100 500 500,000 ‐ 200 300 ‐ ‐ ‐ 778,950 TRANSFERS IN 330,985 ‐ ‐ ‐ 100,000 ‐ ‐ ‐ 165,600 328,485 ‐ 2,660,000 ‐ 5,740,000 9,325,069 TOTAL ALL FUNDS SOURCES$ 7,910,952 $ 344,035 $ 2,500 $ 932,100 $ 100,050 $ 18,700 $ 500 $ 658,000 $ 181,200 $ 328,685 $ 300 $ 7,666,080 $ 2,424,050 $ 7,770,425 $ 28,337,576

USES: PERSONNEL COSTS $ 2,665,021 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 979,800 $ 547,400 $ 272,700 $ 4,464,921 SERVICES 2,701,750 34,404 ‐ 216,000 16,000 ‐ ‐ 518,000 ‐ ‐ ‐ 1,271,650 913,000 445,650 6,116,454 COMMODITIES/NON‐CAPITAL 250,250 ‐ ‐ ‐ 3,500 ‐ ‐ ‐ ‐ ‐ ‐ 678,500 88,000 290,250 1,310,500 CAPITAL 834,683 309,632 ‐ ‐ 165,600 30,000 ‐ 140,000 ‐ 1,030,353 70,000 1,254,648 266,000 409,500 4,510,415

DEBT SERVICE ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 181,200 ‐ ‐ 2,000,300 852,700 2,016,100 5,050,300 TRANSFERS OUT 8,565,600 ‐ 2,500 756,969 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 9,325,069 TOTAL ALL FUND USES$ 15,017,304 $ 344,035 $ 2,500 $ 972,969 $ 185,100 $ 30,000 $ ‐ $ 658,000 $ 181,200 $ 1,030,353 $ 70,000 $ 6,184,898 $ 2,667,100 $ 3,434,200 $ 30,777,658

BEGINNING FUND BALANCE*$ 20,207,133 $ ‐ $ ‐ $ 40,869 $ 185,050 $ 24,742 $ 1,722,605 $ ‐ $ ‐ $ 701,868 $ 69,883 $ (2,654,734) $ 164,693 $ (5,738,275) $ 14,723,834

NET REVENUES (EXPENDITURES) (7,106,353) ‐ ‐ (40,869) (85,050) (11,300) 500 ‐ ‐ (701,668) (69,700) 1,481,183 (243,050) 4,336,225 (2,440,082)

ENDING AVAILABLE FUND BALANCE:$ 13,100,780 $ ‐ $ ‐ $ ‐ $ 100,000 $ 13,442 $ 1,723,105 $ ‐ $ ‐ $ 200 $ 183 $ (1,173,552) $ (78,357) $ (1,402,050) $ 12,283,751

*Deemed available to expend. Page 196 of324

12 Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 12

TOWN WIDE BY TYPE

FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Description

All Funds SOURCES: LOCAL TAX $ 6,904,855 $ 6,229,000 $ 6,870,829 $ 6,837,818 $ 6,825,600 LOCAL FEES 8,297,384 8,796,837 8,810,901 8,502,385 9,448,205 STATE SHARED REVENUES 1,712,917 1,778,640 1,826,042 1,767,178 1,959,752 MISCELLANEOUS 348,834 957,370 380,873 258,074 778,950 TRANSFERS IN 969,543 2,284,841 ‐ 2,273,507 9,325,069 TOTAL ALL REVENUES AND TRANSFERS FROM $ 18,233,533 $ 20,046,688 $ 17,888,645 $ 19,638,962 $ 28,337,576

USES: PERSONNEL COSTS $ 3,650,316 $ 4,166,553 $ 3,620,174 $ 3,928,194 $ 4,464,921 SERVICES 3,526,182 5,326,018 3,665,339 3,658,334 6,116,454 COMMODITIES/NON‐CAPITAL 1,254,950 1,199,755 1,269,866 1,178,644 1,310,500 CAPITAL 733,026 2,565,108 478,676 1,094,901 4,510,415 DEBT SERVICE 5,040,920 5,045,244 1,664,099 5,045,244 5,050,300 TRANSFERS OUT 1,562,873 2,284,840 ‐ 3,582,524 9,325,069 TOTAL ALL FUND EXPENDITURES & TRANSFERS TO$ 15,768,267 $ 20,587,518 $ 10,698,154 $ 18,487,841 $ 30,777,658

BEGINNING FUND BALANCE*$ (3,722,326) $ 11,926,595 $ 13,572,713 $ 13,572,713 $ 14,723,834

NET REVENUES (EXPENDITURES) 2,465,265 (540,830) 7,190,491 1,151,121 (2,440,082)

ENDING AVAILABLE FUND BALANCE: $ (1,257,061) $ 11,385,765 $ 20,763,204 $ 14,723,834 $ 12,283,751

*Amount deemed available to expend. ** Includes interfund transfers out. *** The Enterprise Fund includes modified beginning balance for FY 2017, now adjusted working capital. All Funds Revenue Budgets Sources of Funds by Type FY 2018 vs FY 2019 $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000

$5,000,000 FY 2018 $4,000,000 FY 2019 $3,000,000 $2,000,000 $1,000,000 $‐ LOCAL TAX LOCAL FEES STATE SHARED MISCELLANEOUS TRANSFERS IN REVENUES

All Funds Expenditure Budget Uses of Funds by Type FY 2018 vs FY 2019 $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 FY 2018 $‐ FY 2019

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 13

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All Funds Revenue Budgets FY 2018 All Funds Revenue Budgets FY 2019 Sources of Funds by Type Sources of Funds by Type

LOCAL FEES 33% LOCAL FEES LOCAL TAX 44% 31% STATE SHARED REVENUES LOCAL TAX 7% 24%

MISCELLANEOUS 3% STATE SHARED REVENUES 9% TRANSFERS IN MISCELLANEOUS TRANSFERS IN 11% 5% 33%

All Funds Expenditure Budget FY 2018 All Funds Expenditure Budget FY 2019 Uses of Funds by Type Uses of Funds by Type

SERVICES COMMODITIES/NON‐ COMMODITIES/NON‐ 26% CAPITAL CAPITAL CAPITAL 6% 4% 15% SERVICES DEBT SERVICE 20% 16% CAPITAL 12%

PERSONNEL COSTS DEBT SERVICE PERSONNEL COSTS 20% 25% 15%

TRANSFERS OUT TRANSFERS OUT 30% 11%

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 14

Page 198 of 324 TOWN WIDE BY FUND

FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Description

All Funds SOURCES BY FUND*: GENERAL FUND $ 13,223,492 $ 14,363,183 $ 27,626,120 $ 27,727,962 $ 28,118,085 HURF/PUBLIC WORKS 344,636 347,178 365,203 355,876 344,035 SEWER IMPROVEMENT DISTRICT #2 4,463 5,000 ‐ 2,500 2,500 SPUR CROSS CONSERVATION AREA 1,173,905 1,019,779 1,078,505 1,060,649 972,969 TRAILS 100,000 200,050 100,000 200,050 285,100 OPEN SPACE & TRAILS FUND 142,409 114,152 86,156 86,456 70,183 PARKS & TRAILS 17,722 22,951 25,648 24,742 43,442 OPEN SPACE ACQUISITION FUND 1,722,105 1,712,644 1,722,105 1,722,605 1,723,105 GRANT FUNDS 14,715 617,000 15,147 17,000 658,000 TOWN HALL DEBT SERVICE 176,827 176,044 18,485 176,044 181,200 WATER INFRASTRUCTURE CAPITAL FUND ‐ ‐ ‐ ‐ 1,030,553 CAVE CREEK WATER SYSTEM FUND 111,295 4,849,015 2,033,733 1,945,446 5,011,346 DESERT HILLS WATER SYSTEM FUND 1,371,198 2,368,260 2,127,451 2,022,571 2,588,743 WASTEWATER TREATMENT FUND (4,241,337) 3,074,642 (4,086,973) (2,832,095) 2,032,150 TOTAL ALL FUND SOURCES$ 14,161,429 $ 28,869,898 $ 31,111,580 $ 32,509,807 $ 43,061,410

USES BY FUND**: GENERAL FUND $ 5,074,382 $ 7,493,719 $ 4,245,632 $ 7,520,829 $ 15,017,304 HURF/PUBLIC WORKS 335,938 347,178 ‐ 355,876 344,035 SEWER IMPROVEMENT DISTRICT #2 4,462 5,000 ‐ 2,500 2,500 SPUR CROSS CONSERVATION AREA 1,015,556 1,019,779 216,000 1,019,780 972,969 TRAILS ‐ 100,000 ‐ 15,000 185,100 OPEN SPACE & TRAILS FUND 56,253 114,152 20,481 16,573 70,000 PARKS & TRAILS ‐ 22,951 ‐ ‐ 30,000 OPEN SPACE ACQUISITION FUND ‐ 50,000 ‐ ‐ ‐ GRANT FUNDS 14,715 617,000 30,294 17,000 658,000 TOWN HALL DEBT SERVICE 171,993 176,044 173,739 176,044 181,200 WATER INFRASTRUCTURE CAPITAL FUND ‐ 349,778 ‐ ‐ 1,030,353 CAVE CREEK WATER SYSTEM FUND 4,155,753 4,848,417 3,190,295 4,600,180 6,184,898 DESERT HILLS WATER SYSTEM FUND 1,844,490 2,334,250 1,271,763 1,857,879 2,667,100 WASTEWATER TREATMENT FUND 3,094,725 3,109,250 1,549,950 2,906,180 3,434,200 TOTAL ALL FUND USES$ 15,768,267 $ 20,587,518 $ 10,698,154 $ 18,487,841 $ 30,777,658

ENDING AVAILABLE FUND BALANCE: $ (1,606,839) $ 8,282,380 $ 20,413,426 $ 14,021,966 $ 12,283,751

*Includes Estimated beginning fund balance (amount deemed available to expend) and interfund transfers in. ** Includes interfund transfers out.

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 15

Page 199 of 324

All Funds Revenue Budgets Sources of Funds by Fund FY 2018 vs FY 2019 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000

$5,000,000 FY 2018 $‐ FY 2019

All Funds Expenditure Budget Uses of Funds by Fund FY 2018 vs FY 2019 $25,000,000

$20,000,000

$15,000,000

$10,000,000

$5,000,000 FY 2018 $‐ FY 2019

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 16

Page 200 of 324

All Funds Revenue Budgets FY 2018 SPUR CROSS All Funds Revenue Budgets FY 2019 CONSERVATION AREA SPUR CROSS Sources of Funds by Fund 2% TRAILS Sources of Funds by Fund CONSERVATION AREA 1% 2% TRAILS SEWER IMPROVEMENT HURF/PUBLIC WORKS SEWER IMPROVEMENT 1% DISTRICT #2 DISTRICT #2 OPEN SPACE & TRAILS 1% HURF/PUBLIC WORKS 0% 0% OPEN SPACE & TRAILS 1% FUND FUND PARKS & TRAILS0% 0% 0% PARKS & TRAILS OPEN SPACE 0% OPEN SPACE ACQUISITION FUND ACQUISITION FUND 4% GRANT FUNDS GENERAL FUND 4% 2% GENERAL FUND GRANT FUNDS 65% TOWN HALL DEBT TOWN HALL DEBT 65% 2% SERVICE SERVICE 0% 0% WATER WATER INFRASTRUCTURE INFRASTRUCTURE CAPITAL FUND CAPITAL FUND 2% 2% CAVE CREEK WATER CAVE CREEK WATER SYSTEM FUND SYSTEM FUND WASTEWATER DESERT HILLS WATER 12% WASTEWATER DESERT HILLS WATER 12% TREATMENT FUND SYSTEM FUND TREATMENT FUND SYSTEM FUND 5% 6% 5% 6%

All Funds Expenditure Budget FY 2018 All Funds Expenditure Budget FY 2019 HURF/PUBLIC WORKS SPUR CROSS Uses of Funds by Fund 2% Uses of Funds by Fund CONSERVATION AREA 3% SEWER IMPROVEMENT SEWER IMPROVEMENT TRAILS DISTRICT #2 HURF/PUBLIC WORKS DISTRICT #2 1% 0% 1% 0% OPEN SPACE & TRAILS FUND GENERAL FUND SPUR CROSS CONSERVATION AREA 0% 36% PARKS & TRAILS WASTEWATER 5% GENERAL FUND TRAILS 0% TREATMENT FUND 49% OPEN SPACE 0% 15% OPEN SPACE & TRAILS ACQUISITION FUND FUND 0% 1% GRANT FUNDS PARKS & TRAILS 2% 0% WATER OPEN SPACE INFRASTRUCTURE ACQUISITION FUND CAPITAL FUND DESERT HILLS WATER 0% SYSTEM FUND GRANT FUNDS 3% 11% 3% TOWN HALL DEBT WATER CAVE CREEK WATER WASTEWATER SERVICE CAVE CREEK WATER INFRASTRUCTURE TOWN HALL DEBT DESERT HILLS WATER SYSTEM FUND TREATMENT FUND 1% SYSTEM FUND CAPITAL FUND SERVICE SYSTEM FUND 20% 11% 24% 2% 1% 9%

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 17

Page 201 of 324 General Fund

Purpose

The purpose of this fund is to account for the general operating revenues and expenditures of the Town. The fund’s revenues are recorded at the fund level while expenditures are recorded by departments and transfers out. The departments found within the General Fund are: Town Manager, Administration, Legal Services, Planning, Zoning, & Economic Development, Building and Fire Safety, Magistrate Court, Law Enforcement, Finance, Town Council, Contingency, Public Works, and Special Events. The majority of the Towns non‐enterprise related revenues and expenditures are recorded in the General Fund.

GENERAL FUND SUMMARY BY TYPE

FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Description

GENERAL FUND

REVENUES BY TYPE: LOCAL TAX $ 5,013,456 $ 4,420,000 $ 5,018,417 $ 5,009,318 $ 4,947,000 LOCAL FEES 729,806 702,687 960,724 890,600 897,450 STATE SHARED REVENUES 1,353,566 1,404,462 1,454,465 1,403,000 1,457,717 BOND PROCEEDS ‐ ‐ ‐ ‐ ‐ MISCELLANEOUS 296,015 366,500 370,661 248,800 277,800 TRANSFERS IN 354,240 356,890 ‐ 354,390 330,985 TOTAL ALL GENERAL FUND REVENUES$ 7,747,084 $ 7,250,539 $ 7,804,266 $ 7,906,108 $ 7,910,952

EXPENDITURES BY TYPE: PERSONNEL COSTS $ 2,335,368 $ 2,626,153 $ 2,228,005 $ 2,382,414 $ 2,665,021 SERVICES 1,585,380 2,382,400 1,538,030 1,648,375 2,701,750 COMMODITIES/NON‐CAPITAL 181,064 250,305 196,966 191,744 250,250 CAPITAL 213,716 758,800 282,632 522,052 834,683 TRANSFERS OUT 758,855 1,476,061 ‐ 2,776,244 8,565,600 TOTAL ALL GENERAL FUND EXPENDITURES$ 5,074,382 $ 7,493,719 $ 4,245,632 $ 7,520,829 $ 15,017,304

BEGINNING AVAILABLE FUND BALANCE*: $ 5,476,408 $ 7,112,644 $ 19,821,855 $ 19,821,855 $ 20,207,133

NET REVENUES (EXPENDITURES) 2,672,702 (243,180) 3,558,634 385,279 (7,106,353)

ENDING AVAILABLE FUND BALANCE: $ 8,149,110 $ 6,869,464 $ 23,380,488 $ 20,207,133 $ 13,100,780

*The Beginning Fund Balance amounts used are estimated based on fund balance less estimated amounts of non‐short term receivables. The amount of non‐short term receivables are deemed to be zero if the advances to other funds will be resolved through interfund transfers.

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 18

Page 202 of 324 General Fund Total Fund Budget by Fiscal Year (Includes Transfers) 16,000,000

14,000,000 15,017,304

12,000,000

10,000,000

7,942,250 7,910,952 8,000,000 REVENUES 6,840,632 6,853,316 7,250,539 EXPENDITURES 7,493,719 6,000,000 6,994,179 6,936,705 6,819,960 4,000,000

2,000,000

‐ FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

General Fund Revenue Budget Sources of Funds by Type FY 2018 vs FY 2019 $6,000,000

$5,000,000

$4,000,000

$3,000,000 FY 2018 FY 2019 $2,000,000

$1,000,000

$‐ LOCAL TAX LOCAL FEES STATE SHARED REVENUES MISCELLANEOUS TRANSFERS IN

General Fund Revenue Budget FY 2018 General Fund Revenue Budget FY 2019 Sources of Funds by Type Sources of Funds by Type TRANSFERS IN, 356,890 , 5% MISCELLANEOUS, TRANSFERS IN, 330,985 , 366,500 , 5% 4% MISCELLANEOUS, 277,800 , 4% STATE SHARED REVENUES, 1,404,462 , STATE SHARED 19% REVENUES, 1,457,717 , 18% LOCAL TAX, $4,947,000 , 63%

LOCAL FEES, 702,687 , LOCAL TAX, $4,420,000 , 10% LOCAL FEES, 897,450 , 61% 11%

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 19

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General Fund Expenditure Budget Uses of Funds by Type FY 2018 vs FY 2019 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 FY 2017 $1,000,000 FY 2018 $‐

General Fund Expenditure Budget FY 2018 General Fund Expenditure Budget FY 2019 Uses of Funds by Type Uses of Funds by Type COMMODITIES/NON‐ CAPITAL, 250,250 , 2% CAPITAL, 834,683 , 5% SERVICES, 2,382,400 , 32% SERVICES, 2,701,750 , 18%

COMMODITIES/NON‐ PERSONNEL COSTS, CAPITAL, 250,305 , 3% TRANSFERS OUT, $2,626,153 , 35% 8,565,600 , 57%

PERSONNEL COSTS, $2,665,021 , 18% CAPITAL, 758,800 , 10%

TRANSFERS OUT, 1,476,061 , 20%

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 20

Page 204 of 324 GENERAL FUND SUMMARY BY DEPARTMENT

FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Description

GENERAL FUND

REVENUES: LOCAL TAX $ 5,013,456 $ 4,420,000 $ 5,018,417 $ 5,009,318 $ 4,947,000 LOCAL FEES 729,806 702,687 960,724 890,600 897,450 STATE SHARED REVENUES 1,353,566 1,404,462 1,454,465 1,403,000 1,457,717 MISCELLANEOUS 296,015 366,500 370,661 248,800 277,800 TRANSFERS IN 354,240 356,890 ‐ 354,390 330,985 TOTAL ALL GENERAL FUND REVENUES$ 7,747,084 $ 7,250,539 $ 7,804,266 $ 7,906,108 $ 7,910,952

EXPENDITURES: TOWN MANAGER $ 330,144 $ 356,650 $ 277,868 $ 286,507 $ 364,750 ADMINISTRATION 678,713 770,855 566,533 652,168 776,000 LEGAL SERVICES 118,358 168,000 174,241 168,000 228,000 PLANNING, ZONING, & ECONOMIC DEVELOPMENT 505,400 548,700 513,524 494,496 521,600 BUILDING AND FIRE SAFETY 556,356 1,074,700 800,465 855,794 922,700 MAGISTRATE COURT 154,759 162,900 170,915 159,100 172,100 LAW ENFORCEMENT 646,812 635,300 621,492 617,486 701,500 FINANCE 346,537 441,100 370,523 401,212 408,150 TOWN COUNCIL 37,133 49,000 24,618 24,760 47,000 CONTINGENCY ‐ 448,400 ‐ ‐ 617,000 PUBLIC WORKS 863,138 1,157,053 632,900 989,474 1,569,104 SPECIAL EVENTS 78,178 205,000 92,554 95,589 123,800 TRANSFERS OUT 758,855 1,476,061 ‐ 2,776,244 8,565,600 TOTAL ALL GENERAL FUND EXPENDITURES$ 5,074,382 $ 7,493,719 $ 4,245,632 $ 7,520,829 $ 15,017,304

BEGINNING AVAILABLE FUND BALANCE*: $ 5,476,408 $ 7,112,644 $ 19,821,855 $ 19,821,855 $ 20,207,133

NET REVENUES (EXPENDITURES) 2,672,702 (243,180) 3,558,634 385,279 (7,106,353)

ENDING AVAILABLE FUND BALANCE: $ 8,149,110 $ 6,869,464 $ 23,380,488 $ 20,207,133 $ 13,100,780

*The Beginning Fund Balance amounts used are estimated based on fund balance less estimated amounts of non‐short term receivables. The amount of non‐short term receivables are deemed to be zero if the advances to other funds will be resolved through interfund transfers.

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 21

Page 205 of 324 General Fund Expenditure Budget Uses of Funds by Type FY 2018 vs FY 2019

$9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 FY 2017 $1,000,000 FY 2018 $‐

General Fund Expenditure Budget FY 2018 Uses of Funds by Department

TOWN MANAGER, $356,650 , 5% ADMINISTRATION, TRANSFERS OUT, 770,855 , 10% 1,476,061 , 20% LEGAL SERVICES, 168,000 , 2% SPECIAL EVENTS, PLANNING, ZONING, & 205,000 , 3% ECONOMIC DEVELOPMENT, 548,700 , 7% PUBLIC WORKS, 1,157,053 , 15% BUILDING AND FIRE SAFETY, 1,074,700 , 14% CONTINGENCY, 448,400 , 6% MAGISTRATE COURT, LAW ENFORCEMENT, 162,900 , 2% TOWN COUNCIL, 49,000 635,300 , 9% , 1% FINANCE, 441,100 , 6%

General Fund Expenditure Budget FY 2019 Uses of Funds by Department LEGAL SERVICES, TOWN MANAGER, ADMINISTRATION, 228,000 , 2% $364,750 , 2% 776,000 , 5% PLANNING, ZONING, & ECONOMIC DEVELOPMENT, TRANSFERS OUT, 521,600 , 4% 8,565,600 , 57% BUILDING AND FIRE SAFETY, 922,700 , 6%

MAGISTRATE COURT, 172,100 , 1% LAW ENFORCEMENT, 701,500 , 5% FINANCE, 408,150 , 3% TOWN COUNCIL, 47,000 SPECIAL EVENTS, PUBLIC WORKS, CONTINGENCY, 617,000 , 0% 123,800 , 1% 1,569,104 , 10% , 4%

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 22

Page 206 of 324 GENERAL FUND REVENUES 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title General Fund REVENUES: LOCAL TAX: 01‐000100‐9001 TOWN SALES TAX$ 3,760,258 $ 3,600,000 $ 3,677,523 $ 3,655,018 $ 3,726,000 01‐000100‐9003 PYMTS IN LIEU OF PROPERTY TAX 195,645 200,000 211,627 210,200 210,000 01‐000100‐9005 SW GAS F‐AGREEMENT SUP 24,102 20,000 26,334 25,200 25,200 01‐000100‐9006 SALES TAX‐CONSTRUCTION 1,033,452 600,000 1,102,933 1,118,900 985,800 Local Tax Total $ 5,013,456 $ 4,420,000 $ 5,018,417 $ 5,009,318 $ 4,947,000

LOCAL FEES: 01‐000101‐9016 BUILDING PERMITS$ 463,985 $ 471,537 $ 474,457 $ 480,000 $ 588,600 01‐000101‐9018 ENGINEERING PLAN REVIEWS 52,563 99,500 66,970 50,000 179,750 01‐000101‐9019 REPORT FEES 413 400 634 600 600 01‐000101‐9021 PLANNING & ZONING FEES 111,620 52,250 101,665 48,000 44,500 01‐000101‐9025 RIGHT OF WAY FEES 46,770 28,000 258,081 260,000 32,000 01‐000101‐9043 BUSINESS LICENSE FEES 50,370 50,000 55,044 51,000 51,000 01‐000130‐9719 FINGERPRINT FEES 4,086 1,000 3,873 1,000 1,000 Local Fees Total $ 729,806 $ 702,687 $ 960,724 $ 890,600 $ 897,450

STATE SHARED REVENUES: 01‐000104‐9301 REVENUE SHARING (INCOME TAX) $ 653,433 $ 670,358 $ 678,255 $ 670,000 $ 672,238 01‐000104‐9302 AUTO LIEU TAX 210,214 226,450 225,877 226,000 241,991 01‐000104‐9303 STATE SALES TAX 489,920 507,654 550,333 507,000 543,488 State Shared Revenue Total $ 1,353,566 $ 1,404,462 $ 1,454,465 $ 1,403,000 $ 1,457,717

MISCELLANEOUS: 01‐000101‐9015 INTEREST INCOME$ 43,717 $ 30,000 $ 23,096 $ 22,300 $ 30,000 01‐000130‐9717 RENTAL PROPERTY INCOME 123,353 141,500 136,415 141,500 141,500 01‐000130‐9720 RESTITUTION 353 ‐ ‐ ‐ ‐ 01‐000130‐9721 SPECIAL EVENT PROCEEDS 73,926 175,000 80,204 75,000 106,300 01‐000130‐9722 RODEO 17,366 20,000 10,000 10,000 ‐ 01‐000130‐9799 MISCELLANEOUS ‐ OTHER 37,301 ‐ 99,221 ‐ ‐ Miscellaneous Total $ 296,015 $ 366,500 $ 370,661 $ 248,800 $ 277,800

TOTAL ALL GENERAL FUND REVENUES: $ 7,392,844 $ 6,893,649 $ 7,804,266 $ 7,551,718 $ 7,579,967

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 23

Page 207 of 324 GENERAL FUND TRANSFERS 7/3/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title General Fund REVENUES: TRANSFERS IN: 01‐000150‐9805 TRANSFER FROM ‐ SPUR CROSS OPS $ 349,778 $ 351,890 $ ‐ $ 351,890 $ 328,485 01‐000150‐9809 TRANSFER FROM SID#2 4,462 5,000 ‐ 2,500 2,500 Transfer From Total $ 354,240 $ 356,890 $ ‐ $ 354,390 $ 330,985 EXPENDITURES: TRANSFERS OUT: 01‐000160‐9905 TRANSFER TO‐COP DEBT SERVICE$ 165,525 $ 167,044 $ ‐ $ 158,210 $ 165,600 01‐000160‐9914 TRANSFER TO‐CAVE CREEK WATER ‐ ‐ ‐ ‐ 2,660,000 01‐000160‐9915 TRANSFER TO‐DESERT HILLS WATER ‐ ‐ ‐ ‐ ‐ 01‐000160‐9913 TRANSFER TO‐ENT FUND 593,330 1,309,017 ‐ 1,309,017 ‐ 01‐000160‐9940 TRANSFER TO ‐ W.W. ENTERPRISE ‐ ‐ ‐ 1,309,017 5,740,000 Transfer To Total $ 758,855 $ 1,476,061 $ ‐ $ 2,776,244 $ 8,565,600

NET OF TRANSFERS IN(OUT)$ (404,615) $ (1,119,171) $ ‐ $ (2,421,854) $ (8,234,616)

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 24

Page 208 of 324 Town Manager’s Office

TOWN MANAGER

Carrie Dyrek

EXECUTIVE ASSISTANT Barbara Allen

Department Purpose

The Town Manager’s Office is to direct and coordinate Town staff to provide effective, efficient and equitable implementation of Council policies and programs; and to provide representation of Town Council policies to citizens, other governmental agencies/jurisdictions and any other entity important to the accomplishment of directives established by the Town Council.

The Town Manager is responsible for providing leadership in administering the programs and policies established by the Mayor and Council. The Town Manager informs and advises the Council on the affairs of the Town, studies and proposes alternatives and solutions to community needs for Mayor and Council consideration, prepares and implements the annual budget to the Town Council that fulfills the goals of the Council, in a fiscally prudent manner.

Notable Expenditures

 MERIT PAY. To allow for a merit based pay increase to staff, suspended for FY 2019. Cost: $31,000

AUTHORIZED POSITIONSFULL TIME EQUIVALENTS PROPOSED TITLE FY 2015‐16 FY 2016‐17 FY 2017‐18 FY 2017‐18 FY 2018‐19 TOWN MANAGER 11111 EXECUTIVE ASSISTANT 11111 TOTAL 22222

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 25

Page 209 of 324 FY 2019 Town Manager's Budget as Percent of General Fund Expenditures

2%

Town Manager's Office Expenditure Budget by Fiscal Year $400,000 364,750 349,000 354,400 356,650 314,850 $300,000

$200,000

$100,000

$0 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

FY 2019 Town Manager's Office Budgeted Expenditures By Type

Services Total , $22,250 , 6%

Personnel Total , Commodities/Non‐ $338,400 , 93% Capital Total, $4,100 , 1%

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 26

Page 210 of 324 TOWN MANAGER 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title EXPENDITURES: PERSONNEL: 01‐001100‐1001 SALARIES & WAGES$ 234,952 $ 225,300 $ 188,554 $ 191,957 $ 240,400 01‐001100‐1002 OVERTIME 601 ‐ 758 1,301 01‐001100‐1003 PAID TIME OFF ‐ PTO 3,278 ‐ 8,089 6,906 01‐001100‐1008 HOLIDAY PAY 3,053 ‐ 3,114 2,062 01‐001100‐1017 PTO‐PAYOUT 7,621 ‐ 19,053 16,948 01‐001100‐1101 FICA/MEDICARE 17,840 15,300 16,173 16,149 15,800 01‐001100‐1102 RETIREMENT 21,501 24,500 23,059 23,236 26,400 01‐001100‐1103 LIFE & MEDICAL INSURANCE 27,535 34,400 12,479 18,601 21,600 01‐001100‐1104 STATE COMPENSATION 2,458 4,300 493 1,461 3,000 01‐001100‐1107 UNEMPLOYMENT INSURANCE 177 200 140 236 200 01‐001100‐1999 ALL EMPLOYEES' MERIT PAY ‐ 31,000 ‐ ‐ 31,000 Personnel Total $ 319,016 $ 335,000 $ 271,912 $ 278,857 $ 338,400 SERVICES: 01‐001100‐2007 ADVERTISING SERVICES$ 5,141 $ 4,500 $ 1,565 $ 3,130 $ 4,500 01‐001100‐2049 PROFESSIONAL SVCS ‐ 2,000 ‐ ‐ 10,000 01‐001100‐2150 EMPLOYEE REIMB TRNG MEMBERSH 2,752 7,750 1,577 1,600 7,750 Services Total $ 7,892 $ 14,250 $ 3,142 $ 4,730 $ 22,250 COMMODITIES/NON‐CAPITAL: 01‐001100‐3059 SUPPLIES$ 1,077 $ 3,300 $ 916 $ 920 $ 1,000 01‐001100‐3062 FUEL & OIL 2,158 4,000 1,897 2,000 3,000 01‐001100‐3082 SUBSCRIPTIONS ‐ 100 ‐ ‐ 100 Commodities/Non‐Capital Total $ 3,235 $ 7,400 $ 2,813 $ 2,920 $ 4,100

TOWN MANAGER ‐ EXPENDITURES TOTAL $ 330,144 $ 356,650 $ 277,868 $ 286,507 $ 364,750

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 27

Page 211 of 324 Administration Department

TOWN CLERK Carrie Dyrek

DEPUTY TOWN CLERK ADMIN ASSISTANT ADMIN ASSISTANT IT COORDINATOR Jane Fuller Marie Carsia Roxanne Slade Brian Poore

Department Purpose

The Town Clerk Division of the Administrative Department provides broad organization support to the Town and ensures accessible and responsive government to the citizens of the Town through the administration of the records management program, council meeting support, elections, codification, posting of notices, agenda preparation, council, board and commission member training and ensuring that all official notices and advertising are legally compliant.

The Town Clerk’s office supports open and accessible government by giving public notice of all Council meetings, keeping a record of the Council’s proceedings, and performing such other duties required by the Town Code or by State law. The Town Clerk office oversees the timely and accurate accumulation, preservation and accessibility of public records for the Town of Cave Creek, serves as the Liquor License administrator, administers the business licensing process for the Town, conducts fair and open municipal elections, acts as liaison with the Arizona Municipal Risk Retention Pool on Town insurance, claims and litigation issues, coordinates with the Town Manager on special projects including confidential, personnel and/or financial matters. The Town Clerk office oversees a variety of contracts and IGA’s for the Town.

The Town Clerk’s office supports the overall public relations of the Town by providing a positive and friendly contact with the public when calling or visiting Town Hall. The reception area of Town Hall is often the first point of contact for the public; the Town Clerk’s office oversees the reception area and the switchboard by providing prompt, courteous and beneficial assistance to the public.

The I.T. Division of the Administrative Department provides the information technology infrastructure and operational assistance to meet the needs of the Town Council and Town staff in order for them to better serve the citizens. This objective is achieved through the general coordination and supervision of technology services such as various personal computer (PC) and server hardware, software applications, network and telephony hardware and security protocols. Technology is maintained and updated on an ongoing basis to provide accurate information in a secure and timely manner. The IT Division also manages Council audio and video recordings.

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 28

Page 212 of 324 Notable Expenditures – Town Clerk

 Professional Services for the Town Clerk. Code supplements, and legal services. (2049) Cost: $15,000

 Non‐Professional Services for Town Clerk and general Town operations. Includes Contract for Elections MCED, Sec'y Services for minutes, Town Hall Fire Protection, Microfiche, Emergency Srv IGA, Building Security ‐Safegurad for Town Hall and Aware for Court, pest control, Building Star Cleaning] Increase of $8,000 to reflect costs for cleaning, pest control and security services and then a reduction of $3,900 where Court budget will pay the appropriate share for cleaning services, and additional $9,200 to pay for verbatim minute preparation costs. (3062) Cost: $42,000

 Insurance through Arizona Municipal Risk Retention Pool. Cost of annual automobile, liability, inland marine, and property and umbrella insurance policy for General Fund ONLY. The Town is a participant in the Municipal Risk Retention Pool, which is administered by Southwest Risk Services. A 10% increase built in each year. (2240) Cost: $175,500

 Postage & Copier Expenses. Newsletter Expenses. (3004) Cost: $10,000

 Centralized Office Supplies. Budget includes all supplies purchasing for all General Funds Departments. (3059) Cost: $15,000

AUTHORIZED POSITIONSFULL TIME EQUIVALENTS PROPOSED TITLE FY 2014‐15 FY 2015‐16 FY 2016‐17 FY 2017‐18 FY 2018‐19 TOWN CLERK 11110 DEPUTY TOWN CLERK 00001 ADMINISTRATIVE ASSISTANT 0.75 1.5 1.25 1.25 1.25 IT COORDINATOR 11111 TOTAL 2.75 3.5 3.25 3.25 3.25

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 29

Page 213 of 324 FY 2019 Administration Budget as Percent of General Fund Expenditures

5%

Administration Expenditure Budget by Fiscal Year 900,000

800,000 772,580 770,855 776,000 733,170 702,000 700,000

600,000

500,000

400,000

300,000

200,000

100,000

‐ FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

FY 2019 Administration Budgeted Expenditures By Type

Commodities Total, $66,100 , 8% Services Total , $359,600 , 46%

Capital Total , $12,500 , 2%

Personnel Total , $337,800 , 44%

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 30

Page 214 of 324 ADMINISTRATION 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title TOWN CLERK EXPENDITURES: PERSONNEL: 01‐002100‐1001 SALARIES & WAGES$ 164,131 $ 205,500 $ 98,389 $ 111,495 $ 156,800 01‐002100‐1002 OVERTIME 1,229 ‐ 1,544 2,121.40 01‐002100‐1003 PAID TIME OFF ‐ PTO 7,671 ‐ 8,401 5,201.23 01‐002100‐1008 HOLIDAY PAY 3,063 ‐ 2,960 1,834.59 01‐002100‐1017 PTO‐PAYOUT 4,438 ‐ 1,950 2,466 01‐002100‐1101 FICA/MEDICARE 11,456 15,400 8,345 8,410.68 12,000 01‐002100‐1102 RETIREMENT 19,977 21,800 13,142 12,950.71 16,900 01‐002100‐1103 LIFE & MEDICAL INSURANCE 33,108 35,400 26,863 30,743 43,100 01‐002100‐1104 STATE COMPENSATION 462 700 194 252.54 400 01‐002100‐1107 UNEMPLOYMENT INSURANCE 218 300 68 183 200 Personnel Total $ 245,754 $ 279,100 $ 161,857 $ 175,658 $ 229,400 SERVICES: 01‐002100‐2007 ADVERTISING SERVICES$ 1,523 $ 10,000 $ 5,428 $ 5,000 $ 10,000 01‐002100‐2049 PROFESSIONAL SERVICES 3,731 6,000 4,809 5,500 15,000 01‐002100‐2051 ELEC, WATER, SEWER,TRASH 30,643 27,000 25,718 32,600 ‐ 01‐002100‐2053 TELEPHONES (ALL) 61,837 50,000 44,318 55,000 58,000 01‐002100‐2068 NON‐PROFESSIONAL SERVICES 36,148 33,300 26,437 36,000 42,000 01‐002100‐2150 EMPLOYEE REIMB TRNG MEMBERSH 3,476 1,500 1,734 1,500 4,000 01‐002100‐2240 INSURANCE 132,136 159,500 129,735 162,095 175,500 Services Total $ 269,493 $ 287,300 $ 238,177 $ 297,695 $ 304,500 COMMODITIES/NON‐CAPITAL: 01‐002100‐3004 POSTAGE & COPIER EXPENSES$ 4,536 $ 10,000 $ 5,296 $ 7,000 $ 10,000 01‐002100‐3059 SUPPLIES 11,641 10,500 13,410 11,500 15,000 01‐002100‐3062 FUEL & OIL ‐ 500 ‐ ‐ 500 01‐002100‐3082 SUBSCRIPTIONS 747 1,600 633 1,000 1,600 Commodities/Non‐Capital Total $ 16,924 $ 22,600 $ 19,339 $ 19,500 $ 27,100 CAPITAL (>$5,000): 01‐002100‐4003 FURNITURE & EQUIPMENT $ ‐ $ 1,500 $ ‐ $ ‐ $ 1,000 01‐002100‐4100 IMPROVEMENTS (1,138) ‐ ‐ ‐ ‐ Capital Total $ (1,138) $ 1,500 $ ‐ $ ‐ $ 1,000

TOWN CLERK ‐ EXPENDITURES TOTAL $ 531,034 $ 590,500 $ 419,373 $ 492,853 $ 562,000

INFORMATION TECHNOLOGY PERSONNEL: 01‐002200‐1001 SALARIES & WAGES$ 66,706 $ 68,100 $ 68,571 $ 67,889 $ 71,600 01‐002200‐1003 PAID TIME OFF ‐ PTO ‐ 2,100 ‐ ‐ ‐ 01‐002200‐1017 PTO‐PAYOUT ‐ ‐ 2,616 2,616 1,300 01‐002200‐1101 FICA/MEDICARE 5,628 5,400 5,157 5,237 5,600 01‐002200‐1102 RETIREMENT 7,658 7,900 7,886 7,801 8,500 01‐002200‐1103 LIFE & MEDICAL INSURANCE 19,897 20,200 19,745 21,550 21,100 01‐002200‐1104 STATE COMPENSATION 173 300 161 159 200 01‐002200‐1107 UNEMPLOYMENT INSURANCE 78 100 68 99 100 Personnel Total $ 100,139 $ 104,100 $ 104,203 $ 105,351 $ 108,400 SERVICES: 01‐002200‐2008 WEB HOSTING$ 14,971 $ 14,500 $ 15,991 $ 16,100 $ 16,100 01‐002200‐2049 PROFESSIONAL SERVICES 5,644 10,000 338 10,000 35,000 01‐002200‐2150 EMPLOYEE REIMB TRNG MEMBERSH 397 4,200 360 1,500 4,000 Services Total $ 21,012 $ 28,700 $ 16,689 $ 27,600 $ 55,100 COMMODITIES/NON‐CAPITAL: 01‐002200‐3005 COMPUTER EQUIPT. & RELATED ITE$ 14,976 $ 33,775 $ 14,931 $ 14,000 $ 19,400 01‐002200‐3059 SUPPLIES 567 ‐ 1,722 1,364 300 01‐002200‐3062 FUEL & OIL ‐ ‐ ‐ ‐ ‐ 01‐002200‐3082 SUBSCRIPTIONS 10,985 13,780 9,614 11,000 19,300 Commodities/Non‐Capital Total $ 26,528 $ 47,555 $ 26,268 $ 26,364 $ 39,000 CAPITAL (>$5,000): 01‐002200‐4004 COMPUTER SYSTEMS & SOFTWARE $ ‐ $ ‐ $ ‐ $ ‐ $ 11,500 Capital Total $ ‐ $ ‐ $ ‐ $ ‐ $ 11,500

IT ‐ EXPENDITURES TOTAL $ 147,679 $ 180,355 $ 147,159 $ 159,315 $ 214,000

ADMINISTRATION EXPENDITURES ‐ TOTAL$ 678,713 $ 770,855 $ 566,533 $ 652,168 $ 776,000 Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 31

Page 215 of 324 Legal Services

Department Purpose

This department provides the services of Town Attorney & Town Prosecutor. The department is responsible for providing legal advice to the Town Council and Staff on a routine basis and for defending the Town in all legal matters. The Town Attorney is appointed by and report directly to the Town Council.

Goals & Objectives

 Provide sound legal advice to the Town Council and Town Staff on a routine basis.  Provide advice to the Town Council with regard to settling legal matters.

Notable Expenditures

 Legal Services. The Town receives legal services on a contractual basis. Any routine legal expenditures are charged to a contractual expense account. Cost: $225,000

 Prosecutor. The Town occasionally hires a special prosecutor on a contractual basis. Cost: $3,000

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 32

Page 216 of 324 FY 2019 Legal Services Budget as Percent of General Fund Expenditures

2%

Legal Services Expenditure Budget by Fiscal Year 350,000

300,000 290,000

250,000 250,000 228,000

200,000 168,500 168,000

150,000

100,000

50,000

‐ FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

FY 2019 Legal Services Expenditures By Type

Services Total, $228,000 , 100%

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 33

Page 217 of 324 LEGAL SERVICES 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title EXPENDITURES: SERVICES: 01‐003100‐2049 PROFESSIONAL SVCS$ 115,718 $ 165,000 $ 174,241 $ 165,000 $ 225,000 01‐003100‐2008 PROSECUTOR 2,640 3,000 ‐ 3,000 3,000 Services Total $ 118,358 $ 168,000 $ 174,241 $ 168,000 $ 228,000

LEGAL SERVICES ‐ EXPENDITURES TOTAL$ 118,358 $ 168,000 $ 174,241 $ 168,000 $ 228,000

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 34

Page 218 of 324 Planning, Zoning, & Economic Development

DIRECTOR OF PLANNING Ian Cordwell

TRAILS PLANNER SENIOR PLANNER OFFICE MANAGER Bambi Muller Luke Kautzman Marie Carsia

Department Purpose

The purpose of the Planning Department is to service the needs of the citizens of the community as they relate to land use matters, and economic development matters.

This department is responsible for current and long range planning and promoting economic development. In addition, the department facilitates trails planning and management as well as permit review and inspections.

Current planning includes the administration of the Zoning and Subdivision Ordinances. The Zoning Ordinance regulates the development and use of private lands. The Subdivision Ordinance provides regulations for the orderly growth and harmonious development of the Town.

Long range planning is guided through the General Plan. Social, economic, and physical information is inventoried and updated through the use of the Town’s Geographical Information System (GIS). Small area studies or specific plans are prepared as may be necessary to complement the General Plan.

The Planning Department provides technical assistance to all departments including the Town Marshal’s Office, which is responsible for investigating zoning complaints.

Planning, Zoning, & Economic Development is responsible for managing maintenance for trails and streetscape, and also economic development. Those divisions are included here.

Goals & Objectives

 Process amendments to the Town of Cave Creek General Plan  Process requests to rezone property  Continually review and streamline the zoning and subdivision process  Expand the mapping data base  Implement the Streetscape Plan in appropriate phases  Develop an Open Space/Master Trails Plan  Pursue economic development opportunities and promote the Town

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 35

Page 219 of 324 Management Indicators

Number of planning and zoning cases Projected processed FY 16/17 FY 17/18 FY 18/19 1. Amendment ‐ Zoning Ordinance 2 0 2 2. Amendment ‐ Subdivision Ordinance 0 0 1 3. Amendment ‐ General Plan 3 2 2 4. Board of Adjustment ‐ Appeal 0 0 0 5. Board of Adjustment – Variance 0 2 0 6. Final Plat 1 2 1 7. Home Occupation 2 2 2 8. Lot Split/Minor Land Division 5 2 2 9. Lot Line Adjustment 5 5 5 10. Non‐Conforming Use 0 0 0 11. Preliminary Plat 0 1 1 12. Special Event Permit 40 55 50 13. Site Plan Review 4 0 3 14. Special Use Permit 1 2 1 15. Rezoning 2 0 3 16. Zoning Clearances 216 196* 240 * As of May 7, 2018

Notable Expenditures – Planning & Zoning

 Update the Zoning Ordinance. Staff will continue to monitor possible revisions to the Zoning Ordinance for Town Council consideration and possible approval. This might entail expenditures for the legal advertising, reproduction and mailing of the document. Cost: $2,000

Streetscape The Planning Department oversees Streetscape projects and maintenance. Streetscape provides safe pedestrian, equestrian and bicycle pathways throughout the Historic Town Core, from Surrey Road to Galloway Drive. These pathways are an integral economic part of the development of the Town Core. Activities include resurfacing and stabilizing pathways, trimming of vegetation, installing and maintaining signage. Streetscape maintenance is now covered in the Trails Fund. Streetscape projects maybe funded from the Open Space and Trails Development Fee Fund, the Parks & Trails Development Fee Fund or the Trails Fund.

Notable Expenditures – Streetscape

 Ongoing Maintenance‐ maintaining, repairing and improving existing streetscape – pathway areas including adding or replacement of signage when needed. Cost: $15,500

Trails The Planning Department oversees Trails projects and maintenance. Town Trails provide multi‐modal transportation alternatives throughout the community. Activities include maintenance of existing trails: surfacing/resurfacing, stabilization, trimming of vegetation, installing and maintaining signage as

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 36

Page 220 of 324 needed. Streetscape maintenance is now covered in the Trails Fund. Trail projects maybe funded from the Open Space and Trails Development Fee Fund, the Parks & Trails Development Fee Fund or the Trails Fund.

Notable Expenditures – Trails

 Ongoing Maintenance – maintaining, repairing and improving existing trails, including adding or replacement of signage when needed. Cost: $5,500

Economic Development Economic development works to maintain and improve the quality of life for the Towns residents and improve the environment to retain its existing businesses while attracting other types of commercial enterprises.

Notable Expenditures – Economic Development

 Marketing and promotion. This effort consists of contributing toward the funding of a trolley service in the communities of Cave Creek and Carefree. Cost: $ 11,000

 Wages and Salaries. Community outreach coordinator to assist other entities engaged in promotional events within the Town, as well as to assist in promoting the Town with community outreach coordination Cost: $24,000

AUTHORIZED POSITIONSFULL TIME EQUIVALENTS PROPOSED TITLE FY 2014‐15 FY 2015‐16 FY 2016‐17 FY 2017‐18 FY 2018‐19 DIRECTOR OF PLANNING 11111 SENIOR PLANNER 11111 OFFICE MANAGER 1 0.5 0.5 0.5 0.75 TRAILS PLANNER 11111 COMMUNITY OUTREACH COORD.* 0 0 0 0.25 0.4 TOTAL 4 3.5 3.5 3.75 4.15 *This position was created in FY2017 and is part‐time.

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 37

Page 221 of 324 FY 2019 Planning, Zoning & Economic Development Budget as Percent of General Fund Expenditures

3%

Planning, Zoning & Economic Development Expenditure Budget by Fiscal Year 700,000

606,500 600,000

553,600 548,400 548,700 521,600

500,000

400,000 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

FY 2019 Planning, Zoning & Economic Development Expenditures By Type

Personnel Total , $471,100 , 90%

Services Total , $45,500 , 9%

Commodities/Non‐ Capital Total, $5,000 , 1%

Capital Total , $‐ , 0%

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 38

Page 222 of 324 PLANNING, ZONING & ECONOMIC DEVELOPMENT 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title PLANNING EXPENDITURES: PERSONNEL COSTS: 01‐004100‐1001 SALARIES & WAGES$ 255,769 $ 288,800 $ 266,498 $ 263,815 $ 321,500 01‐004100‐1002 OVERTIME 1,710 ‐ 3,556 4,428 01‐004100‐1003 PAID TIME OFF ‐ PTO 5,790 ‐ 5,992 3,620 01‐004100‐1008 HOLIDAY PAY 4,863 ‐ 4,634 2,949 01‐004100‐1017 PTO‐PAYOUT 31,568 ‐ 29,928 35,079 01‐004100‐1101 FICA/MEDICARE 22,162 22,100 23,125 22,752 24,600 01‐004100‐1102 RETIREMENT 30,782 31,600 31,749 30,691 35,700 01‐004100‐1103 LIFE & MEDICAL INSURANCE 61,744 56,000 52,680 60,309 60,500 01‐004100‐1104 STATE COMPENSATION 5,288 6,800 4,159 4,570 4,700 01‐004100‐1107 UNEMPLOYMENT INSURANCE 315 400 291 381 300 Personnel Total $ 419,991 $ 405,700 $ 422,613 $ 428,594 $ 447,300 SERVICES: 01‐004100‐2007 ADVERTISING SERVICES$ 6,890 $ 2,000 $ 5,230 $ 1,500 $ 2,000 01‐004100‐2049 PROFESSIONAL SERVICES 18,144 15,000 17,869 9,000 15,000 01‐004100‐2068 NON‐PROFESSIONAL SERVICES 234 100 10 2,000 6,000 01‐004100‐2150 EMPLOYEE REIMB TRNG MEMBERSH 1,144 1,500 1,800 1,500 1,500 Services Total $ 26,412 $ 18,600 $ 24,910 $ 14,000 $ 24,500 COMMODITIES/NON‐CAPITAL: 01‐004100‐3059 SUPPLIES $ 1,380 $ 3,500 $ 4,388 $ 4,000 $ 4,000 01‐004100‐3062 FUEL & OIL 272 1,000 230 350 1,000 Commodities/Non‐Capital Total $ 1,652 $ 4,500 $ 4,618 $ 4,350 $ 5,000

PLANNING & ZONING ‐ EXPENDITURES TOTAL$ 448,056 $ 428,800 $ 452,141 $ 446,944 $ 476,800

STREETSCAPE SERVICES: 01‐004553‐2049 PROFESSIONAL SERVICES $ ‐ $ 3,000 $ ‐ $ 3,000 $ ‐ 01‐004553‐2051 ELEC, WATER, SEWER,TRASH ‐ 2,000 ‐ ‐ ‐ 01‐004553‐2080 MAINTENANCE 3,120 17,000 1,600 2,200 ‐ Services Total $ 3,120 $ 22,000 $ 1,600 $ 5,200 $ ‐ COMMODITIES/NON‐CAPITAL: 01‐004553‐3059 SUPPLIES$ 2,271 $ 1,000 $ 78 $ 100 $ ‐ Commodities/Non‐Capital Total $ 2,271 $ 1,000 $ 78 $ 100 $ ‐

STREETSCAPE ‐ EXPENDITURES TOTAL $ 5,391 $ 23,000 $ 1,678 $ 5,300 $ ‐

TRAILS SERVICES: 01‐004556‐2049 PROFESSIONAL SERVICES $ ‐ $ 6,000 $ 10,000 $ 1,500 $ ‐ 01‐004556‐2051 ELEC, WATER,SEWER,TRASH 60 1,000 ‐ ‐ ‐ 01‐004556‐2080 MAINTENANCE 11,287 6,000 4,510 5,100 ‐ Services Total $ 11,346 $ 13,000 $ 14,510 $ 6,600 $ ‐ COMMODITIES/NON‐CAPITAL: 01‐004556‐3059 SUPPLIES$ 1,747 $ 1,000 $ 2,552 $ 2,600 $ ‐ Commodities/Non‐Capital Total $ 1,747 $ 1,000 $ 2,552 $ 2,600 $ ‐ CAPITAL (>5,000): 01‐004556‐4100 IMPROVEMENTS$ (804) $ ‐ $ ‐ $ 3,000 $ ‐ Capital Total $ (804) $ ‐ $ ‐ $ 3,000 $ ‐

TRAILS ‐ EXPENDITURES TOTAL $ 12,289 $ 14,000 $ 17,061 $ 12,200 $ ‐

ECONOMIC DEVELOPMENT EXPENDITURES: PERSONNEL COSTS: 01‐004200‐1001 SALARIES & WAGES$ 4,410 $ 13,600 $ 16,216 $ 8,289 $ 21,900 01‐004200‐1101 FICA/MEDICARE 337 1,100 1,284 489 1,700 01‐004200‐1104 STATE COMPENSATION 11 100 38 15 100 01‐004200‐1107 UNEMPLOYMENT INSURANCE 56 100 93 49 100 Personnel Total $ 4,814 $ 14,900 $ 18,202 $ 9,051 $ 23,800 SERVICES: 01‐004200‐2049 PROFESSIONAL SERVICES $ 33,000 $ 63,000 $ 15,200 $ 11,000 $ 11,000 01‐004200‐2059 MARKETING/PROMOTION 1,850 5,000 9,241 10,000 10,000 Services Total $ 34,850 $ 68,000 $ 24,441 $ 21,000 $ 21,000

ECONOMIC DEVELOPMENT ‐ EXPENDITURES TOTAL $ 39,664 $ 82,900 $ 42,644 $ 30,051 $ 44,800

DEPARTMENT ‐ EXPENDITURES TOTAL$ 505,400 $ 548,700 $ 513,524 $ 494,496 $ 521,600

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 39

Page 223 of 324 Building & Fire Safety, Facilities, Parks, and Rodeo Grounds

CHIEF BUILDING OFFICIAL, FIRE CODE OFFICIAL, FIRE MARSHAL, PLANS EXAMINER, FACILITIES DIRECTOR, FLEET MANAGER, RIGHT OF WAY MANAGER Mike Baxley

FACILITIES MAINTENANCE LEAD BUILDING BUILDING PLANS PERMIT TECHNICIAN Terry Brown INSPECTOR EXAMINER AND Jessica Rolnick FIRE INSPECTOR INSPECTOR FACILITIES PLANS EXAMINER Alex Marincas Randy Richards MAINTENANCE WORKER (Vacant)

Department Purpose

The Building and Fire Safety Department is charged with the duties of assuring the citizens of the community are safe within a built environment.

The Building Division of the department is charged with the duties of administering the Town’s adopted Building Codes under the guidance of the Chief Building Official. It is responsible for the receipt, internal processing and issuance of all Building and Fire Permits, Zoning Clearances, and Rights of Way Permits. In addition, the department is responsible for the timely review and approval of construction projects for all work located outside of the Town’s Rights of Way. The Building Division is also responsible for all inspections required under the Town’s various Building Codes. The Division performs all of the traffic control reviews required from the issuance of Rights of Way Permits and verifies that both the Engineering and Utilities Departments have reviewed and approved all aspects of a plan as it pertains to their respective departments.

The Department is also charged with the administration of the Town’s adopted Fire Code under the Fire Code Official who also serves as the Town’s Fire Marshal. As such, the Fire Safety Division conducts annual fire inspections of all the Town’s commercial businesses to ensure the public’s safety and the business’ compliance with the Fire Code. In addition, the Fire Safety Division reviews and approves special events, and liquor license applications for compliance with the Town’s adopted Fire Code.

In 2013 Facilities was added to the department’s responsibilities. The Facilities division is responsible for the maintenance of all of the town’s buildings and grounds, Rodeo Grounds and Desert Awareness Park. In addition to maintenance the department is responsible for the renting and operation of the Rodeo grounds which handles between 20 to 30 events during a typical year.

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 40

Page 224 of 324 Fleet Management is the most recent division added to the department. Through the use of software tracking the department has set up a fleet management system that allows for the tracking of all maintenance, repairs and fuel usage per vehicle within the fleet.

Goals & Objectives

 To protect the citizens of the community from hazards within the built environment by assuring that structures meet recognized standards for design, construction, quality of materials, use and location of buildings through enforcement of building, electrical, plumbing, mechanical, fire and energy codes  To provide services by processing applications for all Zoning Clearances, Building Permits and Rights of Way  To verify that plans specifications and engineering calculations for construction work meet adopted building and fire codes  To complete initial plan reviews within the established schedule.  To ensure that construction permits meet the required Town, County, State and Federal laws, codes and rules  To perform onsite inspections by the next business day and ensure compliance with all adopted codes  To inspect, annually, all commercial buildings to maintain a safe environment for all persons as it relates to the adopted Fire Code  Provide inspection services for the Rights of Way permits once reviewed and approved by the Plan Reviewer  To be the One Stop Shop and resource for all citizens in regards to construction issues  To provide well maintained facilities, parks and rodeo grounds.  To provide a method of tracking and making sure that the fleet of the town is well maintained allowing for extended longevity of the vehicles the town purchases.

Management Indicators

Statistics FY 16 FY 17 FY 18* Inspections 3886 4039 2975 All Permits Issued 383 344 286 New Residences Issued 25 38 33 Project Valuation $19,444,759 $28,101,910 $22,032,844 ROW Permits 68 108 72 Rodeo Grounds Events 25 30 25 *Through March 2018

Notable Expenditures

 Professional Services. The Building & Fire Safety department utilizes the services of outside inspection and plan review companies periodically throughout the year. The services provided allow the department to prevent a backlog of both application reviews and inspections when

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 41

Page 225 of 324 large projects are submitted to the Town for review. By routing the plan review of large projects to an outside agency it allows us to maintain a high level of service to the residents of the Town while maintaining a minimal staffing level. (2049) Cost: $12,000

 Code Development. The Building & Fire Safety department is charged with the duties of administering the building and fire codes in order to ensure the public’s safety. During this fiscal year, Staff will be participating in the promotion of both Fire Safety Month (October) and Building Safety Month (May). We will also be purchasing several sets of the 2018 I‐codes in preparation of adopting in 2018. (3059) Cost: $3,000

 Training and Memberships. The Building & Fire Safety department strives to maintain a high level of proficiency from its staff. Staff is required to attend both the Fall and Spring Educational Institutes. These classes allow them to acquire the continuing education credits required to maintain their inspection credentials. In addition all of the staff is sent to seminars, throughout the year, that are relevant to their position to help them achieve peak performance and enhance the public perception of the department. (2150) Cost: $4,000

Facilities The Facilities Department is charged with the maintenance, improvements and repair to the Town’s buildings and grounds.

Notable Expenditures:  Resurface Parking Lot and rebuild medians‐ (4100) Cost: $78,000  Town Hall Remodel (entrances)(4100). Cost: $50,000

Rodeo The Town’s Rodeo grounds are operated 12 months out of the year, currently most of the weekends have reservations for events starting in October thru January, 2017. It is home to the Cave Creek Pro Rodeo, an annual Rodeo that was voted as one of the top 5 small rodeos in the United States for 2014 and the arena was voted to be number one for footing for the 2017 The Department is charged with the maintenance, improvements, renting and long term planning for the facility.

Notable Expenditures:

 Lighting and Electrical (4100). Cost: $25,000

Parks The Desert Awareness Park is 26 acres consisting of trails, playground equipment, picnic tables, restrooms, amphitheater, a rotunda and a water feature. It is located just off of the Town Core and serves many citizens throughout the year. The Department is responsible for the maintenance, repair and improvements for the facility.

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 42

Page 226 of 324 Notable Expenditures:

 Obtain an Engineered Design. To stabilize the bank to prevent further erosion and damage to Town assets. (4100) Cost: $6,000

AUTHORIZED POSITIONSFULL TIME EQUIVALENTS PROPOSED TITLE FY 2014‐15 FY 2015‐16 FY 2016‐17 FY 2017‐18 FY 2018‐19 BUILDING OFFICIAL, FIRE OFFICIAL, FIRE MARSHAL, PLAN REVIEWER 11111 BUILDING INSPECTOR, ROW INSPECTOR 11111 BUILDING DEPT ADMIN, PLANNING CMSH & BOA RECORDING SEC.11110 PERMIT TECHNICIAN 00001 BUILDING INSPECTOR/PLAN REVIEWER‐FULL TIME 0 0.5 0.5 0.5 1 MAINTENANCE LEAD 01111 MAINTINANCE WORKER 01111 TOTAL 3 5.5 5.5 5.5 6

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 43

Page 227 of 324 FY 2019 Building & Fire Safety & Facilities Budget as Percent of General Fund Expenditures

6%

Building & Fire Safety & Facilities Expenditure Budget by Fiscal Year 1,200,000 1,074,700

1,000,000 914,450 922,700

800,000 760,200

600,000

400,000 296,000

200,000

‐ FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

FY 2019 Building & Fire Safety & Facilities Expenditures Commodities/Non‐ Capital Total, 26,700, 3%

Capital Total , 137,500, 16%

Services Total , 134,400, 16%

Personnel Total , 541,600, 65%

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 44

Page 228 of 324 BUILDING AND FIRE SAFETY, FACILITIES, PARKS, RODEO GROUNDS, AND FLEET MAINTENANCE 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title EXPENDITURES: PERSONNEL COSTS: 01‐005100‐1001 SALARIES & WAGES$ 211,363 $ 263,000 $ 217,572 $ 222,461 $ 267,900 01‐005100‐1003 PAID TIME OFF ‐ PTO 11,515 ‐ 14,131 10,092 01‐005100‐1008 HOLIDAY PAY 6,849 ‐ 6,425 3,987 01‐005100‐1017 PTO‐PAYOUT 4,138 ‐ 17,371 10,637 01‐005100‐1101 FICA/MEDICARE 17,629 20,200 19,281 18,239 20,500 01‐005100‐1102 RETIREMENT 26,373 28,700 27,384 26,385 30,800 01‐005100‐1103 LIFE & MEDICAL INSURANCE 35,607 37,900 35,433 43,748 59,600 01‐005100‐1104 STATE COMPENSATION 2,952 3,300 2,782 3,096 2,300 01‐005100‐1107 UNEMPLOYMENT INSURANCE 356 400 314 346 300 Personnel Total $ 316,783 $ 353,500 $ 340,693 $ 338,991 $ 381,400 SERVICES: 01‐005100‐2049 PROFESSIONAL SVCS [630] $ ‐ $ 12,000 $ 839 $ 3,500 $ 17,000 01‐005100‐2068 NON‐PROFESSIONAL SVCS [635] ‐ ‐ ‐ ‐ 5,000 01‐005100‐2080 MAINTENANCE [620] 88 ‐ ‐ ‐ ‐ 01‐005100‐2150 EMPLOYEE REIMB TRNG MEMBERSH 1,509 4,000 3,203 3,500 4,000 Services Total $ 1,597 $ 16,000 $ 4,042 $ 7,000 $ 26,000 COMMODITIES/NON‐CAPITAL: 01‐005100‐3059 SUPPLIES$ 2,006 $ 3,500 $ 3,965 $ 3,900 $ 4,500 01‐005100‐3062 FUEL & OIL 1,116 2,000 1,478 1,300 2,000 01‐005100‐3082 SUBSCRIPTIONS ‐ 500 175 ‐ 500 Commodities/Non‐Capital Total $ 3,123 $ 6,000 $ 5,618 $ 5,200 $ 7,000 CAPITAL (>$5,000): 01‐005100‐4004 COMPUTER EQUIPT. & RELATED ITE 1,253 1,500 1,200 1,200 6,500 Capital Total $ 1,253 $ 1,500 $ 1,695 $ 1,200 $ 6,500

BUILDING AND FIRE SAFETY ‐ EXPENDITURES TOTAL $ 322,756 $ 377,000 $ 352,048 $ 352,391 $ 420,900

FACILITIES PERSONNEL COSTS: 01‐005200‐1001 SALARIES & WAGES $ 79,047 $ 98,300 $ 62,831 $ 88,698 $ 98,400 01‐005200‐1002 OVERTIME 1,211 ‐ 1,044 2,087 01‐005200‐1003 PAID TIME OFF ‐ PTO 7,281 ‐ 11,091 8,678 01‐005200‐1008 HOLIDAY PAY 4,491 ‐ 4,024 2,573 01‐005200‐1017 PTO‐PAYOUT ‐ ‐ 8,450 1,079 01‐005200‐1101 FICA/MEDICARE 6,899 7,600 6,516 7,779 7,600 01‐005200‐1102 RETIREMENT 10,584 10,700 9,084 11,724 11,700 01‐005200‐1103 LIFE & MEDICAL INSURANCE 19,734 20,800 21,961 31,177 34,100 01‐005200‐1104 STATE COMPENSATION 8,761 13,300 7,233 8,527 8,200 01‐005200‐1107 UNEMPLOYMENT INSURANCE 208 7,200 127 178 200 Personnel Total $ 138,216 $ 157,900 $ 132,360 $ 162,501 $ 160,200 SERVICES: 01‐005200‐2051 ELEC, WATER, SEWER,TRASH ‐$ $ ‐ $ ‐ $ ‐ $ 30,000 01‐005200‐2068 NON‐PROFESSIONAL SVCS [635] 3,580 5,000 2,607 4,200 36,900 01‐005200‐2080 MAINTENANCE [620] 3,357 6,000 2,897 5,000 6,000 Services Total $ 6,937 $ 11,000 $ 5,504 $ 9,200 $ 72,900 COMMODITIES/NON‐CAPITAL: 01‐005200‐3059 SUPPLIES$ 5,242 $ 6,000 $ 7,596 $ 7,400 $ 6,000 01‐005200‐3062 FUEL & OIL 1,869 2,000 1,321 1,300 1,200 Commodities/Non‐Capital Total $ 7,111 $ 8,000 $ 8,917 $ 8,700 $ 7,200 CAPITAL (>$5,000): 01‐005200‐4001 VEHICLES $ ‐ $ 28,500 $ 659 $ 652 $ ‐ 01‐005200‐4003 FURNITURE & EQUIPMENT ‐ ‐ ‐ ‐ 5,000 01‐005200‐4100 IMPROVEMENTS (10,081) 11,500 19,478 20,000 13,000 01‐005200‐4100‐18001 IMPROVEMENTS\SUITE A 45,144 30,000 ‐ ‐ 50,000 01‐005200‐4100‐18002 IMPROVEMENTS\SUITE B1,059 ‐ ‐ ‐ 3,000 01‐005200‐4100‐18003 IMPROVEMENTS\SUITE C ‐ ‐ ‐ ‐ 24,000 Capital Total $ 36,122 $ 70,000 $ 659 $ 652 $ 95,000

FACILITIES ‐ EXPENDITURES TOTAL $ 188,386 $ 246,900 $ 147,440 $ 181,053 $ 335,300

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 45

Page 229 of 324 BUILDING AND FIRE SAFETY, FACILITIES, PARKS, RODEO GROUNDS, AND FLEET MAINTENANCE 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title RODEO GROUNDS SERVICES: 01‐005300‐2051 ELEC, WATER, SEWER,TRASH$ 4,234 $ 4,000 $ 4,697 $ 4,200 $ 4,000 01‐005300‐2080 MAINTENANCE 5,165 15,000 10,000 14,000 25,000 01‐005300‐2121 EQUIPMENT LEASES & RENTS 504 ‐ ‐ ‐ ‐ Services Total $ 9,903 $ 19,000 $ 14,697 $ 18,200 $ 29,000 COMMODITIES/NON‐CAPITAL: 01‐005300‐3059 SUPPLIES$ 7,623 $ 15,000 $ 5,521 $ 6,000 $ 10,000 01‐005300‐3062 FUEL & OIL ‐ 800 ‐ 200 ‐ Commodities/Non‐Capital Total $ 7,623 $ 15,800 $ 5,521 $ 6,200 $ 10,000 CAPITAL (>$5,000): 01‐005300‐4003 FURNITURE & EQUIPMENT$ 7,104 $ 2,000 $ 423 $ 500 $ ‐ 01‐005300‐4100 IMPROVEMENTS 14,365 300,000 273,755 290,000 30,000 Capital Total $ 21,469 $ 302,000 $ 274,177 $ 290,500 $ 30,000

RODEO GROUNDS ‐ EXPENDITURES TOTAL $ 38,995 $ 336,800 $ 294,396 $ 314,900 $ 69,000

PARKS SERVICES: 01‐005400‐2051 ELEC, WATER, SEWER,TRASH$ 1,760 $ 1,500 $ 1,526 $ 1,500 $ 1,500 01‐005400‐2080 MAINTENANCE 532 10,000 635 650 5,000 Services Total $ 2,292 $ 11,500 $ 2,161 $ 2,150 $ 6,500 COMMODITIES/NON‐CAPITAL: 01‐005400‐3059 SUPPLIES$ 1,201 $ 2,500 $ 2,260 $ 2,300 $ 2,500 Commodities/Non‐Capital Total $ 1,201 $ 2,500 $ 2,260 $ 2,300 $ 2,500 CAPITAL (>$5,000): 01‐005400‐4100 IMPROVEMENTS$ 2,726 $ 100,000 $ 2,159 $ 3,000 $ 6,000 Capital Total $ 2,726 $ 100,000 $ 2,159 $ 3,000 $ 6,000

PARKS ‐ EXPENDITURES TOTAL $ 6,219 $ 114,000 $ 6,581 $ 7,450 $ 15,000

FLEET MAINTENANCE PERSONNEL COSTS: 01‐005500‐1001 SALARIES & WAGES $ ‐ $ ‐ $ ‐ $ ‐ $ 4,800 01‐005500‐1101 FICA/MEDICARE ‐ ‐ ‐ ‐ 400 01‐005500‐1102 RETIREMENT ‐ ‐ ‐ ‐ 600 01‐005500‐1103 LIFE & MEDICAL INSURANCE ‐ ‐ ‐ ‐ 1,700 01‐005500‐1104 STATE COMPENSATION ‐ ‐ ‐ ‐ 100 01‐005500‐1107 UNEMPLOYMENT INSURANCE ‐ ‐ ‐ ‐ 100 Personnel Total $ ‐ $ ‐ $ ‐ $ ‐ $ 7,700 SERVICES: 01‐005500‐2081 VEHICLE MAINTENANCE $ ‐ $ ‐ $ ‐ $ 69,800 Services Total $ ‐ $ ‐ $ ‐ $ ‐ $ 69,800 COMMODITIES/NON‐CAPITAL: 01‐005500‐3059 SUPPLIES $ ‐ $ ‐ $ ‐ $ ‐ $ 5,000 Commodities/Non‐Capital Total $ ‐ $ ‐ $ ‐ $ ‐ $ 5,000

FACILITIES ‐ EXPENDITURES TOTAL ‐$ $ ‐ $ ‐ $ ‐ $ 82,500

BUILDING AND FIRE SAFETY ‐ EXPENDITURES TOTAL $ 556,356 $ 1,074,700 $ 800,465 $ 855,794 $ 922,700

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 46

Page 230 of 324 Law Enforcement

TOWN MARSHAL Adam Stein

Department Purpose

The Purpose of the Cave Creek Marshal’s Office is to provide Law Enforcement and Emergency Management to the Town of Cave Creek and our visitors. The Town Marshal enforces all State of Arizona Statutes, with an emphasis on the Cave Creek Town Code and Zoning Ordinances. The Marshal is the Town of Cave Creek’s Community Police Officer as well as the Town’s Emergency Manager.

Goals and Objectives

 Reduce crime by the effective enforcement of the Town Code and Arizona Revised Statutes.  Provide Emergency Management in the form of planning for and responding to emergencies within our community.  Efficient investigation and resolution of complaints received.  Complete an update of the Towns Hazard Mitigation Plan.

Notable Expenditures

 Law Enforcement Contract. The Town contracts the service of law enforcement with the Maricopa County Sheriff. This year’s contract had a 8.39% rate increase over Fiscal Year 2018 Cost: $ 496,100

 Non‐Professional Services . The Town provides Deputy Sheriff’s and Posse law enforcement at certain special events within town. This line item covers additional services not covered by the existing contract. It also provides CodeRed, the Town of Cave Creek’s Emergency Alert and Notification System. Cost: $5,000

 Subscriptions. Fees associated with the Maricopa County Wireless System Radio Usage, which provides our Law Enforcement Communication. Mobile Data Terminal fees for Computer Aided Dispatching. Cost: $3,500

AUTHORIZED POSITIONSFULL TIME EQUIVALENTS PROPOSED TITLE FY 2014‐15 FY 2015‐16 FY 2016‐17 FY 2017‐18 FY 2018‐19 TOWN MARSHAL 11111 TOTAL 11111

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 47

Page 231 of 324 FY 2019 Law Enforcement Budget as Percent of General Fund Expenditures

5%

Law Enforcement Expenditure Budget by Fiscal Year 800,000 701,500 700,000 649,200 635,300 614,900 613,300 600,000

500,000

400,000

300,000

200,000

100,000

‐ FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

FY 2019 Law Enforcement Expenditures By Type

Commodities/Non‐ Capital Total, $17,500 , 2% Services Total , $505,400 , 72% Capital Total , $6,000 , 1%

Personnel Total , $172,600 , 25%

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 48

Page 232 of 324 LAW ENFORCEMENT 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title EXPENDITURES: PERSONNEL COSTS: 01‐007100‐1001 SALARIES & WAGES$ 99,919 $ 115,300 $ 102,478 $ 102,061 $ 106,900 01‐007100‐1003 PAID TIME OFF ‐ PTO ‐ ‐ 5,234 5,234 01‐007100‐1017 PTO PAYOUT 3,536 ‐ ‐ ‐ 14,400 01‐007100‐1101 FICA/MEDICARE 1,674 1,700 1,536 1,542 1,800 01‐007100‐1102 RETIREMENT 32,028 25,500 28,642 24,569 26,600 01‐007100‐1103 LIFE & MEDICAL INSURANCE 17,168 17,200 18,004 19,124 17,500 01‐007100‐1104 STATE COMPENSATION 4,941 7,700 4,480 4,440 5,300 01‐007100‐1107 UNEMPLOYMENT INSURANCE 91 100 73 116 100 Personnel Total $ 159,358 $ 167,500 $ 160,447 $ 157,086 $ 172,600 SERVICES: 01‐007100‐2049 PROFESSIONAL SERVICES$ 468,427 $ 436,700 $ 437,804 $ 438,000 $ 496,100 01‐007100‐2053 TELEPHONES (ALL) 649.87 1,800.00 299.94 300 1,500 01‐007100‐2068 NON‐PROFESSIONAL SERVICES 3,504 6,000 7,509 7,600 5,000 01‐007100‐2079 VOLUNTEER PROGRAM 295 800 ‐ ‐ 500 01‐007100‐2080 MAINTENANCE 1,206 2,000 271 200 1,500 01‐007100‐2150 EMPLOYEE REIMB TRNG MEMBERSH 803 300 791 800 800 Services Total $ 477,435 $ 447,600 $ 446,676 $ 446,900 $ 505,400 COMMODITIES/NON‐CAPITAL: 01‐007100‐3059 SUPPLIES$ 4,680 $ 6,500 $ 11,411 $ 11,000 $ 9,000 01‐007100‐3062 FUEL & OIL 2,308 5,000 2,774 2,500 5,000 01‐007100‐3082 SUBSCRIPTIONS 3,032 3,500 ‐ ‐ 3,500 Commodities/Non‐Capital Total $ 10,019 $ 15,000 $ 14,185 $ 13,500 $ 17,500 CAPITAL (>$5,000): 01‐007100‐4004 COMPUTER EQUIPT. & RELATED ITE $ ‐ $ 5,200 $ ‐ ‐ $ 6,000 Capital Total $ ‐ $ 5,200 $ 184 $ ‐ $ 6,000

LAW ENFORCEMENT ‐ EXPENDITURES GRAND TOTAL $ 646,812 $ 635,300 $ 621,492 $ 617,486 $ 701,500

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 49

Page 233 of 324 Magistrate Court

Department Purpose

The Cave Creek‐Carefree Municipal Court as a joint court is funded by both the respective Towns and this departmental budget represents the amounts agreed upon as the Town of Cave Creek’s share of the joint courts annual operating expenses. The joint court is a part of Arizona’s integrated judicial department, and as such has the same rights, duties, and responsibilities to operate and administer justice in a fair and impartial manner by Rule of Law, Equal Protection and Due Process as do all other trial courts in Arizona. Although funded by the Towns it is protected from unwarranted interference from the executive and legislative branches of Town government by the separation of powers doctrine contained in the Constitution of the State of Arizona. The Cave Creek‐Carefree Municipal Court exists to maintain the integrity and the independence of the court to enable justice, guarantee liberty, and enhance social order. The Court Administrator is certified by the Arizona Supreme Court as a Civil Traffic Hearing Judge. The Presiding Magistrate is appointed by the Carefree Town Council.

Goals & Objectives

 Record and process all criminal misdemeanors, criminal traffic, civil traffic violations, and Town Code violations within both Towns.

Notable Expenditures

 Professional Services. This line item covers the Town’s share of the combined court costs. Cost: $165,000

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 50

Page 234 of 324 FY 2019 Magistrate Court Budget as Percent of General Fund Expenditures

1%

Magistrate Court Expenditure Budget by Fiscal Year $200,000

182,100 184,100

172,100 162,900 157,100

$100,000 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

FY 2019 Magistrate Court Expenditures

Services Total , $172,100 , 100%

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 51

Page 235 of 324 MAGISTRATE COURT 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title EXPENDITURES: SERVICES: 01‐006100‐2049 PROFESSIONAL SERVICES $ 154,759 $ 156,000 $ 168,440 $ 156,000 $ 165,000 01‐006100‐2068 NON‐PROFESSIONAL SERVICES ‐ 6,300 2,475 2,500 6,500 01‐006100‐2080 MAINTENANCE SERVICES ‐ 600 ‐ 600 600 Services Total $ 154,759 $ 162,900 $ 170,915 $ 159,100 $ 172,100

MAGISTRATE COURT ‐ EXPENDITURES TOTAL $ 154,759 $ 162,900 $ 170,915 $ 159,100 $ 172,100

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 52

Page 236 of 324 Finance

FINANCE DIRECTOR Robert Weddigen

LEAD UTILITY BILLING SENIOR ACCOUNTANT SPECIALIST Jennifer Perez Irma Salinas

UTILITY BILLING SPECIALIST ACCOUNTING SPECIALIST Claudia Cortez Ted Ulman

Department Purpose

The Finance Department is responsible for providing support services for the Town including: fiscal planning, treasury services, miscellaneous billing, assessment district billing, debt management, payroll, tax auditing, accounts payable, and purchasing. The purchasing function assists in general procurement issues for the Town.

The Finance Department works with every Department and manages the preparation of the Annual Operating Budget. The Town is audited annually and manages the preparation of the Comprehensive Annual Financial Report. The Town has received the Certificate of Excellence in Financial Reporting consistently since Fiscal Year 1998.

Goals & Objectives

 To provide effective communication with citizens, Council and Board members, and Town employees.  To provide for the delivery of comprehensive, value added financial services to internal and external customers ensuring that Cave Creek is managed in a fiscally sound and efficient manner.  To facilitate the preparation of the Annual Operating Budget for the Town.  To manage the preparation of the Comprehensive Annual Financial Report and maintain our annual Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association.  To assist all Departments in following the purchasing rules that will also ensure best pricing and value available for purchases.

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 53

Page 237 of 324 Notable Expenditures

In FY 2015 the Finance Department added oversight to utility billing. However, due to the direct benefit to the utility function the related personnel costs are borne by the Enterprise Fund. For the fourth consecutive the Town has to pay the State of Arizona for the Department of Revenues operating costs. These charges do not correlate to an increase in the quality or quantity of services, they are State mandated. The Finance Department had awarded a contract for Financial Advisory Services to be performed in FY 2017 and FY 2018 relating to assisting in the formation of a financing and debt service plan that contract expired and the services were never used; the services budget has been adjsted accordingly. Starting in FY 2017 and continuing for FY 2019 converted Finance Director to contracted position, provided from third party, saving between $9,000 to $11,000 annually.

 Annual Financial Statement Audit. To Audit the Annual Financial Statements and Preparation of the CAFR and preparation of biannual development fee report. Cost: $28,000

 ADOR. To pay State mandated payment for state mandated tax services. Cost: $12,000

 Software Maintenance. Agreements to continue to use and receive support for Caselle software, total cost $29,000 part of it is allocated to utilties. Cost: $13,000

 Bank Service Fees. For traditional banking services and amounts that we pay for payment services related to credit card processing for revenues recorded in the general fund. Cost: $10,000

 Development Impact Fee Audit. To Audit the development impact fees in accordance with State law. Cost: $5,000

FINANCE FULL TIME EQUIVALENTS PROPOSED TITLE FY 2014‐15 FY 2015‐16 FY 2016‐17 FY 2017‐18 FY 2018‐19 FINANCE DIRECTOR 11111 SENIOR ACCOUNTANT 00001 ACCOUNTING SPECIALIST 1 0.75 0.75 1 1 ASSISTANT FINANCE DIRECTOR 01110 UTILITY BILLING SPECIALIST* 01111 UTILITY BILLING SPECIALIST* 11111 TOTAL 2.5 4.75 4.75 5 5 *These positions report to Finance but they are paid for out of the Water/Wastewater Enterprise Fund.

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 54

Page 238 of 324 FY 2019 Finance Budget as Percent of General Fund Expenditures

2%

Finance Expenditure Budget by Fiscal Year $500,000

411,600 408,150 408,150 $400,000

364,400 351,700

$300,000 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

FY 2019 Finance Expenditures By Type

Services Total , $197,750 , 48%

Commodities/Non‐ Capital Total, $3,800 , 1%

Personnel Total , $206,600 , 51%

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 55

Page 239 of 324 FINANCE 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title EXPENDITURES: PERSONNEL COSTS: 01‐009100‐1001 SALARIES & WAGES$ 101,513 $ 131,100 $ 120,529 $ 131,998 $ 129,200 01‐009100‐1003 PAID TIME OFF ‐ PTO 578 ‐ 1,578 45 01‐009100‐1008 HOLIDAY PAY 1,038 ‐ 1,997 726 01‐009100‐1017 PTO‐PAYOUT 23,090 ‐ 8,316 6,754 01‐009100‐1101 FICA/MEDICARE 9,484 10,100 9,837 10,127 9,900 01‐009100‐1102 RETIREMENT 19,763 14,700 21,196 17,773 26,400 01‐009100‐1103 LIFE & MEDICAL INSURANCE 24,176 38,700 30,149 31,577 40,500 01‐009100‐1104 STATE COMPENSATION 328 500 299 301 400 01‐009100‐1107 UNEMPLOYMENT INSURANCE 152 200 375 360 200 Personnel Total $ 180,121 $ 195,300 $ 194,275 $ 199,662 $ 206,600 SERVICES: 01‐009100‐2007 ADVERTISING SERVICES$ 99 $ ‐ $ ‐ $ ‐ $ ‐ 01‐009100‐2049 PROFESSIONAL SERVICES 130,892 198,500 125,953 149,000 146,000 01‐009100‐2009 AUDIT SERVICES 27,000 33,000 30,500 31,000 33,000 01‐009100‐2068 NON‐PROFESSIONAL SERVICES 40 500 89 500 500 01‐009100‐2150 EMPLOYEE REIMB TRNG MEMBERSH 3,777 3,000 3,228 4,100 8,250 01‐009100‐2202 BANK SERVICE FEES 2,526 7,000 13,533 14,000 10,000 Services Total $ 164,334 $ 242,000 $ 173,304 $ 198,600 $ 197,750 COMMODITIES/NON‐CAPITAL: 01‐009100‐3059 SUPPLIES$ 1,612 $ 3,000 $ 2,895 $ 2,600 $ 3,000 01‐009100‐3062 FUEL & OIL ‐ 300 ‐ 50 300 01‐009100‐3082 SUBSCRIPTIONS 50 500 50 300 500 Commodities/Non‐Capital Total $ 2,082 $ 3,800 $ 2,945 $ 2,950 $ 3,800

FINANCE ‐ EXPENDITURES TOTAL $ 346,537 $ 441,100 $ 370,523 $ 401,212 408,150

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 56

Page 240 of 324 Town Council

Department Purpose

The Mayor and six (6) Town Council members are the elected representatives of the Town of Cave Creek. They are responsible for determining public policy that establishes the direction necessary to meet community needs. The Town Council appoints the Town Manager and the Town Attorney.

Goals & Objectives

 To protect health, safety and welfare of citizens and property within the community.  To manage local government in a fiscally sound and effective manner.  To provide vision for managed growth and development.  To actively encourage broader participation by citizens in local government.  To ensure that Cave Creek develops as an environmentally sensitive community.  To promote a positive Town image within the community, as well as through the region.

Notable Expenditures

 Training and Memberships, and League of Arizona Cities and Towns Conference. The Town is a member of the Maricopa Association of Governments, the Arizona League of Cities and Towns, and the National League of Cities & Towns. Funding is set aside for membership dues and for attendance at conferences sponsored by these agencies, as well as for training in other areas of interest. Cost: $13,750

 Supplies. The Council pays for certain activities to promote the Town in conjunction with the League Conferences and other events. Cost: $5,000

 Community Contract Service Grants. To support selected providers of public events/services. Cost: $20,000

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 57

Page 241 of 324 FY 2019 Town Council Budget as Percent of General Fund Expenditures

0.35%

Town Council Expenditure Budget by Fiscal Year $100,000

55,450 49,800 51,210 49,000 $50,000 47,000

$0 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

FY 2019 Town Council Expenditures By Type

Services Total , $41,250 , 88% Commodities/Non‐ Capital Total, $5,250 , 11%

Personnel Total , $500 , 1%

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 58

Page 242 of 324 TOWN COUNCIL 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title COUNCIL EXPENDITURES: PERSONNEL COSTS: 01‐010100‐1104 WORKERS COMPENSATION$ 243 $ 500 $ 324 $ 300 $ 500 Personnel Total $ 243 $ 500 $ 324 $ 300 $ 500 SERVICES: 01‐010100‐2007 ADVERTISING SERVICES $ ‐ $ 1,000 $ ‐ $ ‐ $ 1,000 01‐010100‐2049 PROFESSIONAL SERVICES ‐ 2,500 1,400 1,400 2,500 01‐010100‐2068 NON‐PROFESSIONAL SERVICES ‐ 4,000 ‐ ‐ 4,000 01‐010100‐2150 EMPLOYEE REIMB TRNG MEMBERSH 11,734 13,750 10,341 10,500 13,750 01‐010100‐2950 COMMUNITY GRANTS 20,000 20,000 10,000 10,000 20,000 Services Total $ 31,734 $ 41,250 $ 21,741 $ 21,900 $ 41,250 COMMODITIES/NON‐CAPITAL: 01‐010100‐3059 SUPPLIES$ 5,156 $ 5,000 $ 2,543 $ 2,550 $ 5,000 01‐010100‐3082 SUBSCRIPTIONS ‐ 250 10 10 250 Commodities/Non‐Capital Total $ 5,156 $ 5,250 $ 2,553 $ 2,560 $ 5,250

Council ‐ Expenditures Total$ 37,133 $ 47,000 $ 24,618 $ 24,760 $ 47,000

INTERN PROGRAM PERSONNEL COSTS: 01‐010200‐1001 SALARIES & WAGES $ ‐ $ 1,840 $ ‐ $ ‐ $ ‐ 01‐010200‐1101 FICA/MEDICARE ‐ 150 ‐ ‐ ‐ 01‐010200‐1104 WORKERS COMPENSATION ‐ 10 ‐ ‐ ‐ Personnel Total $ ‐ $ 2,000 $ ‐ $ ‐ $ ‐

INTERN PROGRAM ‐ Expenditures Total $ ‐ $ 2,000 $ ‐ $ ‐ $ ‐

TOWN COUNCIL ‐ EXPENDITURES TOTAL $ 37,133 $ 49,000 $ 24,618 $ 24,760 $ 47,000

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 59

Page 243 of 324 Contingency

Department Purpose

In accordance with Council Policy #1, the Town has determined that it is in the Town’s best interest and fiscally prudent to set aside 10% of General Fund Sales Tax and State Shared Revenues. Although these funds are budgeted, they are not intended to be expended except in the event of an emergency and/or in the event of some unusual circumstance. These funds may not be expended without express authorization from the Town Council. Estimated number is based on year‐to‐date information.

Program Cost: $617,000

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 60

Page 244 of 324 FY 2019 Contingency Budget as Percent of General Fund Expenditures

3%

Contingency Expenditure Budget by Fiscal Year $700,000 608,700 617,000 $600,000 540,500

$500,000 443,500 448,400

$400,000

$300,000

$200,000

$100,000

$0 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

FY 2019 Contingency Expenditures By Type

Services Total, $617,000 , 100%

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 61

Page 245 of 324 CONTINGENCY 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title EXPENDITURES: SERVICES: 01‐013100‐2949 CONTINGENCY ACCOUNT $ ‐ $ 448,400 $ ‐ $ ‐ $ 617,000 Services Total $ ‐ $ 448,400 $ ‐ $ ‐ $ 617,000

CONTINGENCY ‐ EXPENDITURES TOTAL ‐$ $ 448,400 $ ‐ $ ‐ $ 617,000

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 62

Page 246 of 324 Public Works

Engineering Division

TOWN ENGINEER George Everland, P.E.

ENGINEERING ASSISTANT Madison Edens

Department Purpose

The Engineering Division has the primary responsibility for the planning, design, construction, operation, and maintenance of Public Works facilities and programs. This also includes providing engineering review, inspections, project management and administration for the Town’s infrastructure facilities; and engineering review for all commercial development, subdivisions and residential building permits.

Goals & Objectives

 Planning and Zoning plan review (subdivisions and commercial development) within two weeks.  Perform requested inspections within 24 hours or less.  Review applications for roadway Rights‐Of‐Way, Abandonments and Deeds of Gift.  Perform review of building permit applications within three days.  Submit applicable regulatory reports on time.  Develop a road maintenance plan and update each year.  Update Town Right‐of‐Way Maps and create GIS Maps for all infrastructures.  Interface with Maricopa County Department of Transportation regarding four (4) traffic lights owned by the Town of Cave Creek, which are operated and maintained by MCDOT, along Cave Creek Road and Carefree Highway.

Notable Expenditures

 On‐Call Engineering Services. (2049) Cost: $25,000

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 63

Page 247 of 324 Public Works ‐ Roads Division

TOWN ENGINEER George Everland, P.E.

PUBLIC WORKS FOREMAN Tyler Thurman

PW PW PW PW WORKER I WORKER II WORKER I WORKER I Greg Stetson Joe Walsh Trent Clark Hamilton Hurley

Roads Division

The Roads division constructs, reconstructs, and maintains roadways, both paved and unpaved, drainage facilities, traffic control devices, and street signs in proper working order. Providing timely and appropriate maintenance of streets and unpaved roads prolongs the useful life of the facility and reduces maintenance, and rehabilitation costs. Preventative maintenance activities for streets and unpaved roads may include resurfacing, crack sealing, seal coating and pothole patching. The Road Crew also assists with WWTP repairs, landscape maintenance and operation.

Goals & Objectives

 Maintain existing improved streets  Maintain existing unimproved roadways, including dust control and permit/reporting  Sweep all arterial roadway surfaces on a regular basis  Re‐stripe streets to maintain delineation  Maintain existing street signs and upgrade signs as necessary to meet applicable codes  Comply with State and Federal sign regulations and laws  Provide safety and training programs for department personnel  Maintain drainage facilities within the public Right‐of‐Way  Continue to pave the remaining unpaved roads in Cave Creek as funds are available  Provide Fleet Maintenance for the Town’s heavy equipment  Maintain the value of Town property through effective maintenance and repair programs  Support the streetscape construction program  Improve and Maintain the Cave Creek Rodeo Grounds and Gateway Awareness Park  Build and maintain the Town Trail System as requested by the Trails Coordinator

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 64

Page 248 of 324

Notable Expenditures

 Replacement of 2000 International Water Truck. Replace 2000 International Water Truck VIN#1HTGLAHT6YH313516 with new 4000 Gallon Water Truck Cost: $150,000

 Asphalt Overlay of Spurcross Rd. Complete asphalt overlay of Spurcross Rd From Cave Creek Rd north to end of Asphalt Cost: $630,000

AUTHORIZED POSITIONSFULL TIME EQUIVALENTS PROPOSED TITLE FY 2014‐15 FY 2015‐16 FY 2016‐17 FY 2017‐18 FY 2018‐19 ENGINEERING TOWN ENGINEER 0.1 0.1 0.1 0.1 0.8 ASSISTANT TOWN ENGINEER 0.5 0.5 0.5 0.5 0 ENGINEERING ASSISTANT 0 0 0 0.2 0.2 ADMINISTRATIVE ASSISTANT 0.14 0.14 0.25 0.2 0 SUB‐TOTAL ENGINEERING 0.325 0.325 0.85 1 1 ROADS TOWN ENGINEER 0.1 0.1 0.1 0.1 0.2 ASSISTANT TOWN ENGINEER 0.5 0.5 0.5 0.5 0 PUBLIC WORKS Supervisor 11111 PUBLIC WORKS WORKER I 3 3.75 3 4 2 PUBLIC WORKS WORKER II 00002 SUB‐TOTAL ROADS 4.6 5.35 4.6 5.6 5.2 TOTAL 6.6 6.6 5.45 6.6 6.2

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 65

Page 249 of 324 FY 2019 Public Works Budget as Percent of General Fund Expenditures

9%

Public Works Expenditure Budget by Fiscal Year $1,800,000 1,569,104 $1,600,000 1,551,917

$1,400,000 1,157,053 $1,200,000

$1,000,000 900,300 842,900 $800,000

$600,000

$400,000

$200,000

$0 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

FY 2019 Public Works Expenditures By Type

Commodities Total, Services Total , $99,300 , 6% $168,700 , 11%

Personnel Total , $569,921 , 38%

Capital Total , $678,683 , 45%

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 66

Page 250 of 324 PUBLIC WORKS 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title ENGINEERING PERSONNEL COSTS: 01‐016100‐1001 SALARIES & WAGES$ 57,012 $ 69,053 $ 23,495 $ 57,438 $ 104,321 01‐016100‐1002 OVERTIME 257 ‐ 337 712 01‐016100‐1003 PAID TIME OFF ‐ PTO 1,683 ‐ 2,107 1,257 01‐016100‐1008 HOLIDAY PAY 617 ‐ 854 601 01‐016100‐1017 PTO‐PAYOUT ‐ ‐ 4,110 3,141 01‐016100‐1101 FICA/MEDICARE 4,313 5,300 2,275 2,753 8,000 01‐016100‐1102 RETIREMENT 6,839 7,900 3,083 3,857 12,400 01‐016100‐1103 LIFE & MEDICAL INSURANCE 17,212 20,600 7,234 13,876 19,700 01‐016100‐1104 STATE COMPENSATION 1,127 600 404 524 1,300 01‐016100‐1107 UNEMPLOYMENT INSURANCE 80 100 50 97 100 Personnel Total $ 89,141 $ 103,553 $ 43,949 $ 84,257 $ 145,821 SERVICES: 01‐016100‐2007 ADVERTISING$ 297 $ ‐ $ ‐ $ ‐ $ ‐ 01‐016100‐2049 PROFESSIONAL SERVICES 26,367 25,000 41,114 40,000 25,000 01‐016100‐2068 NON‐PROFESSIONAL SERVICES 2,460 7,500 379 400 7,500 01‐016100‐2081 VEHICLE MAINTENANCE 11,030 20,000 11,846 12,000 ‐ 01‐016100‐2150 EMPLOYEE REIMB TRNG MEMBERSH 2,448 ‐ 153 200 2,500 Services Total $ 42,602 $ 52,500 $ 53,492 $ 52,600 $ 35,000 COMMODITIES/NON‐CAPITAL: 01‐016100‐3059 SUPPLIES$ 1,225 $ 3,500 $ 2,362 $ 2,800 $ 3,500 01‐016100‐3062 FUEL & OIL 538.29 700 175 200 700 01‐016100‐3082 SUBSCRIPTIONS ‐ 100 ‐ ‐ 100 Commodities/Non‐Capital Total $ 1,763 $ 4,300 $ 2,537 $ 3,000 $ 4,300 CAPITAL (>$5,000): 01‐016100‐4100 IMPROVEMENTS$ 6,500 $ 5,000 $ 559 $ 700 $ 8,000 Capital Total $ 6,500 $ 5,000 $ 559 $ 700 $ 8,000

ENGINEERING ‐ EXPENDITURES TOTAL $ 140,006 $ 165,353 $ 100,537 $ 140,557 $ 193,121

ROADS PERSONNEL COSTS: 01‐016200‐1001 SALARIES & WAGES$ 183,035 $ 282,600 $ 187,539 $ 227,505 $ 261,600 01‐016200‐1002 OVERTIME 6,678 ‐ 7,273 8,886 01‐016200‐1003 PAID TIME OFF ‐ PTO 10,956 ‐ 17,854 10,852 01‐016200‐1008 HOLIDAY PAY 7,897 ‐ 9,236 5,667 01‐016200‐1010 PER DIEM ON CALL 8,971 ‐ 9,025 9,850 01‐016200‐1017 PTO‐PAYOUT 5,719 ‐ 6,499 5,530 01‐016200‐1101 FICA/MEDICARE 16,226 21,700 17,656 18,891 20,100 01‐016200‐1102 RETIREMENT 25,005 32,100 26,740 28,258 30,800 01‐016200‐1103 LIFE & MEDICAL INSURANCE 76,724 113,200 65,611 85,221 90,300 01‐016200‐1104 STATE COMPENSATION 17,339 31,800 18,547 19,033 20,900 01‐016200‐1107 UNEMPLOYMENT INSURANCE 589 7,500 459 623 400 Personnel Total $ 359,139 $ 488,900 $ 366,439 $ 420,317 $ 424,100 SERVICES: 01‐016200‐2049 PROFESSIONAL SERVICES$ 550 $ 2,000 $ 14,930 $ 9,300 $ 30,000 01‐016200‐2051 ELEC, WATER, SEWER,TRASH 14,716 17,000 21,931 22,500 20,000 01‐016200‐2068 NON‐PROFESSIONAL SERVICES 3,096 15,000 5,650 2,100 15,000 01‐016200‐2080 MAINTENANCE 108,595 45,000 43,146 44,000 45,000 01‐016200‐2121 EQUIPMENT LEASES & RENTS 9,553 25,000 4,566 3,500 25,000 01‐016200‐2150 EMPLOYEE REIMB TRNG MEMBERSH 667 1,200 573 1,200 1,200 01‐016200‐2949 CONTINGENCY ACCOUNT ‐ 50,000 ‐ 50,000 50,000 Services Total $ 137,177 $ 155,200 $ 90,797 $ 132,600 $ 186,200 COMMODITIES/NON‐CAPITAL: 01‐016200‐3059 SUPPLIES$ 68,475 $ 50,000 $ 62,001 $ 63,000 $ 80,000 01‐016200‐3062 FUEL & OIL 10,696 24,000 13,650 10,000 15,000 Commodities/Non‐Capital Total $ 79,170 $ 74,000 $ 75,651 $ 73,000 $ 95,000 CAPITAL (>$5,000): 01‐016200‐4001 VEHICLES $ ‐ $ 171,600 $ ‐ $ 120,000 $ 138,000 01‐016200‐4002 HEAVY EQUIPMENT ‐ ‐ ‐ ‐ 75,000 01‐016200‐4100 IMPROVEMENTS 147,588 102,000 (598) 103,000 457,683 Capital Total $ 147,588 $ 273,600 $ (598) $ 223,000 $ 670,683

ROADS ‐ EXPENDITURES TOTAL $ 723,075 $ 991,700 $ 532,288 $ 848,917 $ 1,375,983

TOTAL PUBLIC WORKS:$ 863,138 $ 1,157,053 $ 632,900 $ 989,474 $ 1,569,104

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 67

Page 251 of 324 Special Events

Department Purpose

The purpose of this department is to account for special events that the conducts or supports that provide community building opportunities, activities for residents and promote the Town.

Notable Expenditures

 Taste of Cave Creek. The event provides a community gathering to share refreshments provided from local vendors while enjoying music and other activities. The costs are offset through an equal amount of sponsorships, admission and food ticket sales. Cost: $107,500

 Other events. Events hosted in the Town but conducted by third parties that require the Town to provide traffic control and security services. Cost: $27,500

AUTHORIZED POSITIONSFULL TIME EQUIVALENTS PROPOSED TITLE FY 2014‐15 FY 2015‐16 FY 2016‐17 FY 2017‐18 FY 2018‐19 SPECIAL EVENTS WORKERS‐PT TEMP 21111 TOTAL 22111 Up to 8 people as part‐time temporary workers for special events.

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 68

Page 252 of 324 FY 2019 Special Events Budget as Percent of General Fund Expenditures

1%

Special Events Expenditure Budget by Fiscal Year $300,000

$205,000 $193,400 $200,000

$130,000 $123,800 $114,200

$100,000

$0 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

FY 2019 Special Events Expenditures

Commodities Total, 17,500 , 14%

Capital Total , ‐ , 0%

Services Total , 87,500 , 71% Personnel Total , 18,800 , 15%

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 69

Page 253 of 324 SPECIAL EVENTS 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title TASTE OF CAVE CREEK EXPENDITURES: PERSONNEL COSTS: 01‐020100‐1001 SALARIES & WAGES$ 2,418 $ 16,700 $ 9,771 $ 20,379 $ 17,200 01‐020100‐1101 FICA/MEDICARE 191 1,300 927 1,333 1,400 01‐020100‐1104 STATE COMPENSATION 34 100 26 38 100 01‐020100‐1107 UNEMPLOYMENT INSURANCE 9 100 6 39 100 Personnel Total $ 2,652 $ 18,200 $ 10,730 $ 21,789 $ 18,800 SERVICES: 01‐020100‐2007 ADVERTISING$ 11,236 $ 20,000 $ 14,245 $ 14,300 $ 16,000 01‐020100‐2049 PROFESSIONAL SERVICES 1,000 500 2,142 2,000 2,000 01‐020100‐2068 NON‐PROFESSIONAL SERVICES 13,017 16,000 7,912 8,000 16,000 01‐020100‐2069 TRAFFIC CONTROL ‐ 1,200 ‐ ‐ 4,000 01‐020100‐2121 EQUIPMENT LEASES & RENTS 17,993 25,000 13,733 14,000 22,000 Services Total $ 43,245 $ 62,700 $ 38,421 $ 38,300 $ 60,000 COMMODITIES/NON‐CAPITAL: 01‐020100‐3004 POSTAGE & COPIER EXPENSES $ ‐ $ 1,000 $ 188 $ 200 $ 1,000 01‐020100‐3059 SUPPLIES 10,309 25,000 20,815 18,100 15,000 01‐020100‐3062 FUEL & OIL 645 100 109 200 1,000 01‐020100‐3082 SUBSCRIPTIONS 149 500 ‐ ‐ 500 Commodities/Non‐Capital Total $ 11,103 $ 26,600 $ 21,112 $ 18,500 $ 17,500

TASTE OF CAVE CREEK ‐ EXPENDITURES TOTAL $ 57,001 $ 107,500 $ 74,059 $ 78,589 $ 96,300

HOLIDAY EVENT/PARADE (FORMERLY WWD) SERVICES: 01‐020170‐2007 ADVERTISING $ ‐ $ 5,000 $ ‐ $ ‐ $ ‐ 01‐020170‐2049 PROFESSIONAL SERVICES ‐ 5,000 ‐ ‐ ‐ 01‐020170‐2068 NON‐PROFESSIONAL SERVICES ‐ 5,000 3,344 3,400 ‐ 01‐020170‐2069 TRAFFIC CONTROL ‐ ‐ 4,389 4,400 ‐ 01‐020170‐2121 EQUIPMENT LEASES & RENTS ‐ 5,000 5,375 5,400 ‐ Services Total $ ‐ $ 20,000 $ 13,107 $ 13,200 $ ‐

WILD WEST DAYS ‐ EXPENDITURES TOTAL ‐$ $ 20,000 $ 13,107 $ 13,200 $ ‐

OTHER EVENTS EXPENDITURES: SERVICES: 01‐020199‐2068 NON‐PROFESSIONAL SERVICES$ 8,718 $ 12,500 $ 2,858 $ 1,200 $ 12,500 01‐020199‐2069 TRAFFIC CONTROL ‐ 15,000 2,530 2,600 15,000 Services Total $ 8,718 $ 27,500 $ 5,388 $ 3,800 $ 27,500

SPECIAL EVENTS ‐ EXPENDITURES TOTAL $ 78,178 $ 205,000 $ 92,554 $ 95,589 $ 123,800

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 70

Page 254 of 324 Highway User Fund

Fund Purpose

Highway User Funds (HURF) are provided from the State to assist in constructing, reconstructing, roadways, both paved and unpaved, drainage facilities, traffic control devices, and street signs. That is why a separate fund is used to account for all resources used in this effort. The work funded here is directed/provided by the Public Works department.

Goals & Objectives

 Construct/reconstruct roadways.  Stripe/Re‐stripe streets to maintain delineation.  Install and maintain existing street signs and upgrade all necessary signs to meet applicable codes.  Comply with State and Federal sign regulations and laws.  Construct drainage facilities within the public Right‐of‐Way.  Continue to pave the remaining unpaved roads in Cave Creek as funds are available.

Notable Expenditures

Road Improvements and HURF. The Public Works Department will schedule the bulk of the work for mid‐summer. We will follow the guidelines developed in the current Pavement Management Program. Cost: $344,035 (HURF Funds)

HURF Total Fund Budget by Fiscal Year (Includes Transfers)

$500,000 464,426 $450,000

$400,000 355,426 347,178 344,035 $350,000 335,938

$300,000

$250,000

$200,000

$150,000

$100,000

$50,000

$0 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 71

Page 255 of 324 HIGHWAY USER TAX FUND

FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Description

HIGHWAY USER TAX FUND

REVENUES: STATE SHARED REVENUES $ 344,636 $ 347,178 $ 356,430 $ 347,178 $ 344,035 MISCELLANEOUS ‐ ‐ 75 ‐ ‐ TOTAL ALL HURF FUND REVENUES$ 344,636 $ 347,178 $ 356,505 $ 347,178 $ 344,035

EXPENDITURES: ROADS $ 335,938 $ 347,178 $ ‐ $ 355,876 $ 344,035 TOTAL ALL HURF FUND EXPENDITURES$ 335,938 $ 347,178 $ ‐ $ 355,876 $ 344,035

BEGINNING FUND BALANCE: $ ‐ $ ‐ $ 8,698 $ 8,698 $ ‐

NET REVENUES (EXPENSES) 8,698 ‐ 356,505 (8,698) ‐

ENDING FUND BALANCE: $ 8,698 $ ‐ $ 365,203 $ ‐ $ ‐

HURF Revenue Budget Sources of Funds by Type FY 2018 vs FY 2019 $350,000

FY 2018 FY 2019

$300,000 STATE SHARED REVENUES

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 72

Page 256 of 324 HURF Revenue Budget FY 2018 HURF Revenue Budget FY 2019 Sources of Funds by Type Sources of Funds by Type

STATE SHARED STATE SHARED REVENUES, $344,035 , REVENUES, $347,178 , 100% 100%

HURF Expenditure Budget Uses of Funds by Department FY 2018 vs FY 2019 $500,000

$400,000

$300,000 2018 $200,000 2019

$100,000

$‐ ROADS

HURF Expenditure Budget FY 2018 HURF Expenditure Budget FY 2019 Uses of Funds by Department Uses of Funds by Department

ROADS, $347,178 , ROADS, $344,035 , 100% 100%

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 73

Page 257 of 324 HIGHWAY USER TAX FUND 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title HIGHWAY USER TAX FUND

REVENUES: STATE SHARED REVENUES: 03‐000104‐9304 HIGHWAY USER TAX$ 344,636 $ 347,178 $ 356,430 $ 347,178 $ 344,035 State Shared Revenue Total $ 344,636 $ 347,178 $ 356,430 $ 347,178 $ 344,035

HIGHWAY USER TAX ‐ REVENUES TOTAL $ 344,636 $ 347,178 $ 356,505 $ 347,178 $ 344,035

EXPENDITURES: ROADS SERVICES: 03‐014100‐2949 CONTINGENCY ACCOUNT $ ‐ $ 34,718 $ ‐ $ ‐ $ 34,404 Services Total $ ‐ $ 34,718 $ ‐ $ ‐ $ 34,404 CAPITAL (>$5,000): 03‐014100‐4100 IMPROVEMENTS$ 335,938 $ 312,460 $ ‐ $ 355,876 $ 309,632 Capital Total $ 335,938 $ 312,460 $ ‐ $ 355,876 $ 309,632

ROADS ‐ EXPENDITURES TOTAL $ 335,938 $ 347,178 $ ‐ $ 355,876 $ 344,035

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 74

Page 258 of 324 Sewer Improvement District #2

Purpose

The purpose of this fund is to serve as trustee for Sewer Improvement District #2 by ensuring that bond payments are made on time and that members of the district are billed and make payments on a semi‐ annual basis. This temporary fund is set to expire as the related debt has been paid and all the assessments have been issued.

Goals & Objectives

 Collect on delinquent accounts in accordance with State law

Notable Expenditures

 SID #2 Debt Service . The fund serves as the custodial agent for Sewer Improvement District #2 which was formed in 1993 to construct a wastewater collection system in the Town Core area. Bond payments are made on a semi‐annual basis. Assessment members are billed on a semi‐ annual basis. Bond calls were paid for by account pre‐payments Cost: $0

 Transfers to General Fund. With the related debt prepaid the remaining collections are transferred to the general fund Cost: $2,500

Sewer Improvement District #2 Total Fund Budget by Fiscal Year (Includes Transfers) $90,000

$80,000

$70,000

$60,000

$50,000 REVENUES $40,000 EXPENDITURES $30,000

$20,000

$10,000

$0 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 75

Page 259 of 324 SEWER IMPROVEMENT DISTRICT #2 BUDGET SUMMARY BY TYPE

FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Description

SEWER IMPROVEMENT DISTRICT #2

REVENUES BY TYPE: LOCAL FEES $ 1,993 $ 5,000 $ ‐ $ 2,500 $ 2,500 TOTAL ALL SEWER IMPROVEMENT FUND REVENUES$ 1,993 $ 5,000 $ ‐ $ 2,500 $ 2,500

EXPENDITURES BY TYPE: TRANSFERS OUT $ 4,462 $ 5,000 $ ‐ $ 2,500 $ 2,500 TOTAL ALL SEWER IMPROVEMENT EXPENDITURES$ 4,462 $ 5,000 $ ‐ $ 2,500 $ 2,500

BEGINNING FUND BALANCE: $ 2,470 $ ‐ $ ‐ $ ‐ $ ‐

NET REVENUES (EXPENDITURES) (2,470) ‐ ‐ ‐ ‐

ENDING FUND BALANCE: $ ‐ $ ‐ $ ‐ $ ‐ $ ‐

SEWER IMPROVEMENT DISTRICT #2 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title REVENUES: LOCAL FEES: 05‐000101‐9030 BILLINGS TO PROPERTY OWNERS$ 1,993 $ 5,000 $ ‐ $ 2,500 $ 2,500 Local Fees Total $ 1,993 $ 5,000 $ ‐ $ 2,500 $ 2,500

SEWER IMPROVEMENT DISTRICT #2‐ REVENUES TOTA $ 1,993 $ 5,000 $ ‐ $ 2,500 $ 2,500

TRANSFERS EXPENDITURES: TRANSFERS OUT: 05‐000160‐9901 TRANSFER TO‐GENERAL FUND$ 4,462 $ 5,000 $ ‐ $ 2,500 $ 2,500 Transfers To Total $ 4,462 $ 5,000 $ ‐ $ 2,500 $ 2,500

NET OF TRANSFERS IN(OUT)$ (4,462) $ (5,000) $ ‐ $ (2,500) $ (2,500)

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 76

Page 260 of 324 Spur Cross Ranch Conservation Area

The acquisition of Spur Cross Ranch was finalized on January 11, 2001 by the State of Arizona, Maricopa County and the Town of Cave Creek. A special bond election was held on September 12, 2000; and the Town voters approved an amount of $6,825,000 to acquire Spur Cross Ranch.

The Town Council approved an Intergovernmental Agreement (IGA) between the Town of Cave Creek and Maricopa County for the operation of the Spur Cross Ranch. Pursuant to the IGA, the Town of Cave Creek grants Maricopa County the exclusive authority to operate and manage the park. The Town agreed to dedicate a portion of the proceeds from the one‐half percent for the operation of the park. The Town Council on Tuesday, February 16, 1999, approved a one‐half percent transaction privilege tax (½%) to operate the future park. The Town started collecting the ½ cent sales tax in December 2000. In FY2017 they amended the dedication to allow the Town to transfer excess revenues to the General Fund, the Water Infrastructure Capital Improvement Fund, and the Trails Fund.

Notable Expenditures

 Maricopa County Parks. Payments to Maricopa County Parks to be used for the Operation of Spur Cross Ranch Conservation Area. Cost: $216,000

 Transfer to Water Infrastructure Capital Improvement Fund. Cost: $328,485

 Transfer to the General Fund. Revenues in excess of related expenses. Cost: $328,485

 Transfer to the Trails Fund. Revenues in excess of related expenses. Cost: $100,000

Spur Cross Conservation AreaTotal Fund Budget by Fiscal Year (Includes Transfers) $1,800,000 $1,600,000 $1,400,000

$1,200,000

$1,000,000 REVENUES $800,000 EXPENDITURES $600,000

$400,000 $200,000 $0 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 77

Page 261 of 324 SPUR CROSS RANCH CONSERVATION AREA FUND BUDGET SUMMARY BY TYPE

FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Description

SPUR CROSS RANCH CONSERVATON AREA FUND

REVENUES BY TYPE: LOCAL TAX $ 940,064 $ 900,000 $ 919,381 $ 901,700 $ 931,500 LOCAL FEES 716 250 775 600 600 TOTAL ALL SPUR CROSS REVENUES$ 940,780 $ 900,250 $ 920,156 $ 902,300 $ 932,100

EXPENDITURES BY TYPE: SERVICES $ 216,000 $ 216,000 $ 216,000 $ 216,000 $ 216,000 TRANSFERS OUT 799,556 803,779 ‐ 803,780 756,969 TOTAL ALL SPUR CROSS FUND EXPENDITURES$ 1,015,556 $ 1,019,779 $ 216,000 $ 1,019,780 $ 972,969

BEGINNING FUND BALANCE: $ 233,125 $ 119,529 $ 158,349 $ 158,349 $ 40,869

NET REVENUES (EXPENDITURES) (74,776) (119,529) 704,156 (117,480) (40,869)

ENDING FUND BALANCE: $ 158,349 $ ‐ $ 862,505 $ 40,869 $ ‐

SPUR CROSS RANCH CONSERVATION AREA 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title REVENUES: LOCAL TAX: 07‐000100‐9004 1/2 CENTS SALES TAX$ 940,064 $ 900,000 $ 919,381 $ 901,700 $ 931,500 Local Tax Total $ 940,064 $ 900,000 $ 919,381 $ 901,700 $ 931,500 LOCAL FEES: 07‐000101‐9042 SPUR CROSS ID CARDS$ 716 $ 250 $ 775 $ 600 $ 600 Local Fees Total $ 716 $ 250 $ 775 $ 600 $ 600

SPUR CROSS ‐ REVENUES TOTAL $ 940,780 $ 900,250 $ 920,156 $ 902,300 $ 932,100

EXPENDITURES: SERVICES: 07‐035100‐2049 PROFESSIONAL SERVICES$ 216,000 $ 216,000 $ 216,000 $ 216,000 $ 216,000 Services Total $ 216,000 $ 216,000 $ 216,000 $ 216,000 $ 216,000

SPUR CROSS ‐ EXPENDITURES TOTAL $ 216,000 $ 216,000 $ 216,000 $ 216,000 $ 216,000

EXPENDITURES: TRANSFERS OUT: 07‐000160‐9910 TRANSFER TO‐GF$ 349,778 $ 351,890 $ ‐ $ 351,890 $ 328,485 07‐000160‐9923 TRANSFER TO TRAILS 100,000 100,000 ‐ 100,000 100,000 07‐000160‐9924 TRANSFER TO WATER INFRASTRUCT 349,778 351,890 ‐ 351,890 328,485 Transfers to Total $ 799,556 $ 803,779 $ ‐ $ 803,780 $ 756,969

NET OF TRANSFERS IN(OUT)$ (799,556) $ (803,779) $ ‐ $ (803,780) $ (756,969)

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 78

Page 262 of 324 Trails Fund

Fund Purpose

This special revenue fund was created from Revenue sales tax fees transferred from Spur Cross. This will allow the carryforward of unused portions for the purpose of use on Trail related expenditures. The trail related expenditures will be for maintenance and trail related improvements.

Town Core –Pathway Trails These trails provide safe pedestrian, equestrian and bicycle pathways throughout the Historic Town Core, from Surrey Road to Galloway Drive. These pathways are an integral economic part of the development of the Town Core. Activities include resurfacing and stabilizing pathways, trimming of vegetation, installing and maintaining signage.

Outside Town Core Trails Town Trails provide multi‐modal transportation alternatives throughout the community. Activities include maintenance of existing trails: surfacing/resurfacing, stabilization, trimming of vegetation, installing and maintaining signage as needed.

Notable Expenditures – Trails

 Ongoing Maintenance‐ maintaining, repairing and improving existing pathway areas including adding or replacement of signage when needed. Cost: $16,000

Future Pathways/Trails & Outside Town Core Trail Projects:

Once funding from the “Open Space & Trails Development Impact Fund” has been depleted, as the fund has expired. This “TRAILS FUND” will pay for future non‐motorized trail projects throughout the community.

 Trails. Create new trails in right of ways and easements for non‐motorized traffic such as:

 Buffalo Bills to Hidden Valley Road Asphalt Cost: $11,400  Buffalo Bills to Hidden Valley Road Creative Paving Cost: $25,000  Morning Star Trail Project Cost: $25,752  Other trail improvements Cost: $97,948 Cost: $160,100

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 79

Page 263 of 324 TRAILS FUND SUMMARY BY TYPE

FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Description

TRAILS

REVENUES BY TYPE: TRANSFERS FROM $ 100,000 $ 100,000 $ ‐ $ 100,000 $ 100,000 TOTAL ALL FUND REVENUES$ 100,000 $ 100,050 $ ‐ $ 100,050 $ 100,050

EXPENDITURES BY TYPE: SERVICES $ ‐ $ ‐ $ ‐ $ ‐ $ 16,000 COMMODITIES/NON‐CAPITAL ‐ ‐ ‐ ‐ 3,500 CAPITAL ‐ 100,000 ‐ 15,000 165,600 TOTAL ALL FUND EXPENDITURES $ ‐ $ 100,000 $ ‐ $ 15,000 $ 185,100

BEGINNING FUND BALANCE: $ ‐ $ 100,000 $ 100,000 $ 100,000 $ 185,050

NET REVENUES (EXPENSES) 100,000 50 ‐ 85,050 (85,050)

ENDING FUND BALANCE: $ 100,000 $ 100,050 $ 100,000 $ 185,050 $ 100,000

TRAILS 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title TRAILS

REVENUES: MISCELLANEOUS: 31‐000101‐9015 INTEREST INCOME $ ‐ $ 50 $ ‐ $ 50 $ 50 Miscellaneous Total $ ‐ $ 50 $ ‐ $ 50 $ 50

REVENUES TOTAL ‐$ $ 50 $ ‐ $ 50 $ 50

TRAILS SERVICES: 31‐001101‐2049 PROFESSIONAL SERVICES $ ‐ $ ‐ $ ‐ $ ‐ $ 6,000 31‐001101‐2080 MAINTENANCE ‐ ‐ ‐ ‐ 10,000 Services Total $ ‐ $ ‐ $ ‐ $ ‐ $ 16,000 COMMODITIES/NON‐CAPITAL: 31‐001101‐3059 SUPPLIES $ ‐ $ ‐ $ ‐ $ ‐ $ 3,500 Commodities/Non‐Capital Total $ ‐ $ ‐ $ ‐ $ ‐ $ 3,500 EXPENDITURES: CAPITAL (>$5,000): 31‐001101‐4100 IMPROVEMENTS $ ‐ $ 100,000 $ ‐ $ 15,000 $ 165,600 Capital Total $ ‐ $ 100,000 $ ‐ $ 15,000 $ 165,600

TRAILS ‐ EXPENDITURES TOTAL ‐$ $ 100,000 $ ‐ $ 15,000 $ 185,100

TRANSFERS REVENUES: TRANSFERS FROM: 31‐000150‐9804 TRANSFER FROM‐SC$ 100,000 $ 100,000 $ ‐ $ 100,000 $ 100,000 Transfer From Total $ 100,000 $ 100,000 $ ‐ $ 100,000 $ 100,000

NET OF TRANSFERS FROM(TO)$ 100,000 $ 100,000 $ ‐ $ 100,000 $ 100,000

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 80

Page 264 of 324 Parks & Trails Development Fee Fund

Fund Purpose

This special revenue fund was created to segregate accounting for parks and trails development impact fees collected on new construction. This fund will allow for the tracking of remaining unspent balances. The impact fees will be used to construct park and trail related improvements.

Notable Expenditures

 Parks. Create new parks. The development of Gateway Trailhead will be done in Phases as funds become available.

 Screen. Entrance Screen Fencing. Cost: $30,000

 Trails. Create new trails in right of ways and easements for non‐motorized traffic. Cost: $0

PARKS & TRAILS FUND SUMMARY BY TYPE

FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Description

PARKS & TRAILS

REVENUES BY TYPE: LOCAL FEES $ 6,720 $ 6,000 $ 7,926 $ 7,000 $ 18,600 MISCELLANEOUS 91 20 ‐ 20 100 TOTAL ALL FUND REVENUES$ 6,811 $ 6,020 $ 7,926 $ 7,020 $ 18,700

EXPENDITURES BY TYPE: CAPITAL $ ‐ $ 22,951 $ ‐ $ ‐ $ 30,000 TOTAL ALL FUND EXPENDITURES $ ‐ $ 22,951 $ ‐ $ ‐ $ 30,000

BEGINNING FUND BALANCE: $ 10,911 $ 16,931 $ 17,722 $ 17,722 $ 24,742

NET REVENUES (EXPENSES) 6,811 (16,931) 7,926 7,020 (11,300)

ENDING FUND BALANCE: $ 17,722 $ ‐ $ 25,648 $ 24,742 $ 13,442

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 81

Page 265 of 324 PARKS & TRAILS 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title PARKS & TRAILS

REVENUES: LOCAL FEES: 18‐000101‐9039 DEV FEE ‐ PARKS & TRAILS$ 6,720 $ 6,000 $ 7,926 $ 7,000 $ 18,600 Local Fees Total $ 6,720 $ 6,000 $ 7,926 $ 7,000 $ 18,600 MISCELLANEOUS: 18‐000101‐9015 INTEREST INCOME$ 91 $ 20 $ ‐ $ 20 $ 100 Miscellaneous Total $ 91 $ 20 $ ‐ $ 20 $ 100

REVENUES TOTAL $ 6,811 $ 6,020 $ 7,926 $ 7,020 $ 18,700

PARKS EXPENDITURES: CAPITAL (>$5,000): 18‐001100‐4100 IMPROVEMENTS $ ‐ $ 22,951 $ ‐ $ ‐ $ 30,000 Capital Total $ ‐ $ 22,951 $ ‐ $ ‐ $ 30,000

PARKS ‐ EXPENDITURES TOTAL ‐$ $ 22,951 $ ‐ $ ‐ $ 30,000

TRAILS EXPENDITURES: CAPITAL (>$5,000): 18‐001101‐4100 IMPROVEMENTS $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ Capital Total $ ‐ $ ‐ $ ‐ $ ‐ $ ‐

TRAILS ‐ EXPENDITURES TOTAL ‐$ $ ‐ $ ‐ $ ‐ $ ‐

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 82

Page 266 of 324 Open Space Acquisition Fund

Fund Purpose

This special revenue fund was created to segregate accounting for transfers from Spur Cross Conservation Area Fund from excess dedicated sales tax that are accumulated for the purpose of acquiring land. The land will be used to add to open space areas like Spur Cross.

Notable Expenditures

 Land Acquisition . Expenditures from this fund will identify opportunities to acquire land and in future years an appropriate expenditure budget will be established to do so. Cost: $50,000

OPEN SPACE ACQUISITION FUND SUMMARY BY TYPE

FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Description

OPEN SPACE ACQUISITION FUND

REVENUES BY TYPE: MISCELLANEOUS $ 10,461 $ 500 $ ‐ $ 500 $ 500 TOTAL ALL FUND REVENUES$ 10,461 $ 500 $ ‐ $ 500 $ 500

EXPENDITURES BY TYPE: CAPITAL $ ‐ $ 50,000 $ ‐ $ ‐ $ ‐ TOTAL ALL FUND EXPENDITURES $ ‐ $ 50,000 $ ‐ $ ‐ $ ‐

BEGINNING FUND BALANCE: $ 1,711,644 $ 1,712,144 $ 1,722,105 $ 1,722,105 $ 1,722,605

NET REVENUES (EXPENSES) 10,461 (49,500) ‐ 500 500

ENDING FUND BALANCE: $ 1,722,105 $ 1,662,644 $ 1,722,105 $ 1,722,605 $ 1,723,105

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 83

Page 267 of 324 OPEN SPACE ACQUISITION FUND 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title OPEN SPACE ACQUISITION

REVENUES: MISCELLANEOUS: 19‐000150‐9015 INTEREST INCOME$ 10,461 $ 500 $ ‐ $ 500 $ 500 Miscellaneous Total $ 10,461 $ 500 $ ‐ $ 500 $ 500

REVENUES TOTAL $ 10,461 $ 500 $ ‐ $ 500 $ 500

EXPENDITURES CAPITAL (>$5,000): 19‐001101‐4100 LAND $ ‐ $ 50,000 $ ‐ $ ‐ $ ‐ Capital Total $ ‐ $ 50,000 $ ‐ $ ‐ $ ‐

OPEN SPACE ACQUISITION ‐ EXPENDITURES TOTAL ‐$ $ 50,000 $ ‐ $ ‐ $ ‐

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 84

Page 268 of 324 Grants Fund

Purpose

The purpose of this fund is to account for grant monies and other intergovernmental revenues that subsidize Town expenditures for water and environmental issues, transportation issues, technology enhancements, and other governmental related services.

Notable Expenditures

 LTAF II. Transportation funding made available for the State. The Town applies for this money to be used for transporting disabled residents to medical appointments. Cost: $17,000

 Kiwanis Grant. Kiawanis grant for Desert Awareness Park playground equipment Cost: $60,000

 Arizona State Parks Grant. Parking lot at trailhead park, Arizona State Parks. Cost: $80,000

 Miscellaneous. The Town may apply for other grants currently unidentified that during the year that may become available. Cost: $590,000

GRANTS FUND SUMMARY

FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Description

GRANTS FUND

REVENUES: GRANTS‐FEDERAL, STATE, COUNTY & OTHER $ 14,715 $ 27,000 $ 15,147 $ 17,000 $ 158,000 MISCELLANEOUS ‐ 590,000 ‐ ‐ 500,000 TOTAL ALL GRANT FUND REVENUES$ 14,715 $ 617,000 $ 15,147 $ 17,000 $ 658,000

EXPENDITURES: GRANTS‐FEDERAL, STATE, COUNTY & OTHER $ 14,715 $ 27,000 $ 30,294 $ 17,000 $ 158,000 MISCELLANEOUS ‐ 590,000 ‐ ‐ 500,000 TOTAL ALL GRANT FUND EXPENDITURES$ 14,715 $ 617,000 30,294 17,000 658,000

BEGINNING FUND BALANCE: $ ‐ $ ‐ $ ‐ $ ‐ $ ‐

NET REVENUES (EXPENDITURES) ‐ ‐ (15,147) ‐ ‐

ENDING FUND BALANCE: $ ‐ $ ‐ $ (15,147) $ ‐ $ ‐

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 85

Page 269 of 324 GRANTS FUND 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title REVENUES: GRANTS‐FEDERAL, STATE, COUNTY & OTHER: 20‐000105‐9421 LTAF II GRANT ‐ VICAP$ 14,715 $ 17,000 $ 15,147 $ 17,000 $ 18,000 20‐000105‐9478 COMMUNITY GRANTS ‐ ‐ ‐ ‐ 140,000 20‐000105‐9479 REI GRANT ‐ 10,000 ‐ ‐ ‐ Grants‐Federal, State & Other Tota $ 14,715 $ 27,000 $ 15,147 $ 17,000 $ 158,000 MISCELLANEOUS: 20‐000130‐9799 MISCELLANEOUS ‐ OTHER $ ‐ $ 590,000 $ ‐ $ ‐ $ 500,000 Miscellaneous Total $ ‐ $ 590,000 $ ‐ $ ‐ $ 500,000

GRANTS FUND ‐ REVENUES TOTAL $ 14,715 $ 617,000 $ 15,147 $ 17,000 $ 658,000

EXPENDITURES: GRANTS‐FEDERAL, STATE, COUNTY & OTHER: 20‐024100‐2421 LTAF II GRANT ‐ ViCAP$ 14,715 $ 17,000 $ 30,294 $ 17,000 $ 18,000 20‐024100‐2478 COMMUNITY GRANTS ‐ ‐ ‐ ‐ 140,000 20‐024100‐2479 REI GRANT ‐ 10,000 ‐ ‐ ‐ Grants‐Federal, State & Other Tota $ 14,715 $ 27,000 $ 30,294 $ 17,000 $ 158,000 MISCELLANEOUS: 20‐024100‐2049 PROFESSIONAL SVCS [630] $ ‐ $ 590,000 $ ‐ $ ‐ $ 500,000 Miscellaneous Total $ ‐ $ 590,000 $ ‐ $ ‐ $ 500,000

GRANTS FUND ‐ EXPENDITURES TOTAL $ 14,715 $ 617,000 $ 30,294 $ 17,000 $ 658,000

NET OF TRANSFERS IN(OUT) $ ‐ $ ‐ $ ‐ $ ‐ $ ‐

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 86

Page 270 of 324 Town Hall Debt Service

Purpose

The purpose of this fund is to account for Town Hall Certificates of Participation debt service paid.

Notable Expenditures

 Town Hall Debt Service. Payment of debt service on the Certificates of Participation issued in 1998 for the purchase of the existing Town Hall building and the adjacent vacant parcel to the north. The bonds were also issued for the purpose of renovating the existing structure and for building a new 8,000 square foot building to house the Council Chambers, Municipal Court, and Maricopa County Sheriff’s Office sub‐station. Cost: $181,200

Town Hall Debt Service Total Fund Budget by Fiscal Year (Includes Transfers)

200,000 180,000 160,000 140,000 120,000 100,000 REVENUES 80,000 EXPENDITURES 60,000 40,000 20,000 ‐ FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

TOWN HALL DEBT SERVICE FUND BUDGET SUMMARY BY TYPE

FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Description

TOWN HALL DEBT SERVICE

REVENUES BY TYPE: LOCAL TAX $ 11,270 $ 9,000 $ 13,651 $ 13,000 $ 15,600 TRANSFERS IN 165,525 167,044 ‐ 158,210 165,600 TOTAL ALL TOWN HALL DEBT SERVICE REVENUES$ 176,827 $ 176,044 $ 13,651 $ 171,210 $ 181,200 EXPENDITURES BY TYPE: DEBT SERVICE $ 171,993 $ 176,044 $ 173,739 $ 176,044 $ 181,200 TOTAL ALL TOWN HALL DEBT SERVICE EXPENDITURES $ 171,993 $ 176,044 $ 173,739 $ 176,044 $ 181,200

BEGINNING FUND BALANCE: $ ‐ $ ‐ $ 4,834 $ 4,834 $ ‐

NET REVENUES (EXPENDITURES) 4,834 ‐ (160,088) (4,834) ‐

ENDING FUND BALANCE: $ 4,800 $ ‐ $ (155,254) $ ‐ $ ‐

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 87

Page 271 of 324 TOWN HALL COP‐DEBT SERVICE 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title REVENUES: LOCAL FEES: 06‐000101‐9037 DEVELOPMENT FEE‐PUBLIC BLDG&E $ 11,270 $ 9,000 $ 13,651 $ 13,000 $ 15,600 Local Fees Total $ 11,270 $ 9,000 $ 13,651 $ 13,000 $ 15,600

TOWN HALL COP‐DEBT SERVICE ‐ REVENUES TOTAL $ 11,302 $ 9,000 $ 13,651 $ 13,000 $ 15,600

EXPENDITURES: DEBT SERVICE: 06‐030100‐2200 PRINCIPAL PAYMENTS$ 145,000 $ 155,000 $ 155,000 $ 155,000 $ 165,000 06‐030100‐2201 DEBT INTEREST EXPENSE 24,725 16,244 16,244 16,244 11,200 06‐030100‐2202 BANK SERVICE FEES 2,268 4,800 2,495 4,800 5,000 Debt Service Total $ 171,993 $ 176,044 $ 173,739 $ 176,044 $ 181,200

TOWN HALL COP‐DEBT SERVICE ‐ EXPENDITURES TOT $ 171,993 $ 176,044 $ 173,739 $ 176,044 $ 181,200

TRANSFERS REVENUES: TRANSFERS IN: 06‐000150‐9801 TRANSFER FROM ‐ GENERAL FUND$ 165,525 $ 167,044 $ ‐ $ 158,210 $ 165,600 Transfers From Total $ 165,525 $ 167,044 $ ‐ $ 158,210 $ 165,600

NET OF TRANSFERS IN(OUT)$ 165,525 $ 167,044 $ ‐ $ 158,210 $ 165,600

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 88

Page 272 of 324 Open Space & Trails Development Impact Fee Fund

Fund Purpose

This special revenue fund was created to segregate accounting for open space and trail development impact fees collected in prior years before the development impact fee was terminated. These funds were accounted for in the General Fund, the transfer budgeted is the estimated amount of development impact fees remaining in the General Fund, the exact amount will be transferred to this new fund and for FY2015 and subsequent years the fund will track the remaining unspent balance.

Goals & Objectives

 The proposed Fiscal Year 18/19 Trail project list is guided by the Town of Cave Creek’s adopted 2005 General Plan, which includes the Town Core Plan’s “Circulation Pathway Plan” adopted by Council Resolution on April 2, 2012. The Vision of the community as expressed within the General Plan is for the Town to develop multi‐modal circulation corridors that offer Town citizens optional transportation opportunities throughout the Town, including non‐motorized uses such as pedestrian, equestrian and bicycling. These important trail connections will provide safer access for the public to the Town’s Recreational areas as well as Town Core businesses.

 The pursuit of these non‐motorized trail easements across private properties throughout the town has been an ongoing process. These easements are obtained by Deeds of Gifts from private property owners, which are presented to the Town Council for acceptance. The Town of Cave Creek pays for the surveying, traffic engineering, construction costs, crossings, signage, landscaping and equipment to complete these projects.

Notable Expenditures

 Streetscape Improvements and Trail Improvements. Create new streetscape improvements I easements for non‐motorized traffic and trails in open spaces for multi‐modal transportation alternatives such as:

 The Town Dump Cost: $15,000  Black Mountain Trail Cost: $5,000  Cave Creek Building Supply Cost: $8,000  Indian Village Hideaway Cost: $5,000  Cave Creek Museum Cost: $5,000  Surrey Road Trail for Equestrians along the road Cost: $19,000  Other trail improvements Cost $13,000 Cost: $70,000 Cost: $114,152

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 89

Page 273 of 324 OPEN SPACE & TRAILS FUND SUMMARY BY TYPE

FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Description

OPEN SPACE & TRAILS

REVENUES BY TYPE: LOCAL TAX MISCELLANEOUS $ 725 $ 300 $ ‐ $ 300 $ 300 TOTAL ALL FUND REVENUES$ 725 $ 300 $ ‐ $ 300 $ 300

EXPENDITURES BY TYPE: CAPITAL $ 56,253 $ 114,152 $ 20,481 $ 16,573 $ 70,000 TOTAL ALL FUND EXPENDITURES$ 56,253 $ 114,152 $ 20,481 $ 16,573 $ 70,000

BEGINNING FUND BALANCE: $ 141,684 $ 113,852 $ 86,156 $ 86,156 $ 69,883

NET REVENUES (EXPENSES) (55,528) (113,852) (20,481) (16,273) (69,700)

ENDING FUND BALANCE: $ 86,156 $ ‐ $ 65,676 $ 69,883 $ 183

OPEN SPACE & TRAILS 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title OPEN SPACE & TRAILS

REVENUES: MISCELLANEOUS: 17‐000101‐9015 INTEREST INCOME$ 725 $ 300 $ ‐ $ 300 $ 300 Miscellaneous Total $ 725 $ 300 $ ‐ $ 300 $ 300

REVENUES TOTAL $ 725 $ 300 $ ‐ $ 300 $ 300

STREETSCAPE CAPITAL (>$5,000): 17‐014553‐4100 IMPROVEMENTS$ 37,066 $ 57,076 $ 4,573 $ 4,573 $ ‐ Capital Total $ 37,066 $ 57,076 $ 4,573 $ 4,573 $ ‐

STREETSCAPE ‐ EXPENDITURES TOTAL $ 37,066 $ 57,076 $ 4,573 $ 4,573 $ ‐

TRAILS CAPITAL (>$5,000): 17‐014556‐4100 IMPROVEMENTS$ 19,187 $ 57,076 $ 15,908 $ 12,000 $ 70,000 Capital Total $ 19,187 $ 57,076 $ 15,908 $ 12,000 $ 70,000

TRAILS ‐ EXPENDITURES TOTAL $ 19,187 $ 57,076 $ 15,908 $ 12,000 $ 70,000

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 90

Page 274 of 324 Water Infrastructure Capital Projects

Fund Purpose

The Water Infrastructure Capital Projects fund was to assist in constructing, reconstructing, and fund major maintenance projects related to water. The Council adopted an ordinance to set aside a portion of sales tax money that is in excess of the amounts needed to pay for the operation of the Spur Cross Ranch Conservation Area. For budget and accounting purposes a separate fund is used to account for all resources used in this effort, both current and amounts accumulated in prior periods.

Goals & Objectives

 Construct, maintain water systems  Accumulate resources for larger projects

Notable Expenditures

 Annual pipeline replacement projects. Nevermind Trail. Cost: $200,000

 GIS. Mapping of valve and hydrants. Cost: $20,000

 Emergency Interconnections. Scottsdale emergency interconnections/boosters. Cost: $80,000

 CAP 1 Pump Station Upgrades. CAP 1 vault expansion‐CAP 1 complete rebuild per CAP requirements. Cost: $375,000

 CAP 2 Pump Station Upgrades. Vault expansion safety improvements. Cost: $350,000

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 91

Page 275 of 324 WATER INFRASTRUCTURE CAPITAL

FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Description

WATER INFRASTRUCTURE CAPITAL

REVENUES BY TYPE: TRANSFERS IN $ 349,778 $ 351,890.0 $ ‐ $ 351,890 $ 328,485 TOTAL ALL HURF FUND REVENUES$ 349,778 $ 351,890 $ ‐ $ 352,090 $ 328,685

EXPENDITURES BY TYPE: CAPITAL $ ‐ $ 349,778 $ ‐ $ ‐ $ 1,030,353 TOTAL ALL HURF FUND EXPENDITURES $ ‐ $ 349,778 $ ‐ $ ‐ $ 1,030,353

BEGINNING FUND BALANCE: $ ‐ $ 349,778 $ 349,778 $ 349,778 $ 701,868

NET REVENUES (EXPENDITURES) 349,778 2,112 ‐ 352,090 (701,668)

ENDING FUND BALANCE: $ 349,778 $ 351,890 $ 349,778 $ 701,868 $ 200

WATER INFRASTRUCTURE CAPITAL 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title WATER INFRASTRUCTURE CAPITAL

REVENUES: MISCELLANEOUS: 30‐000101‐9015 INTEREST INCOME $ ‐ $ ‐ $ ‐ $ 200 $ 200 Miscellaneous Total $ ‐ $ ‐ $ ‐ $ 200 $ 200

WATER INFRASTRUCTURE ‐ REVENUES TOTAL ‐$ $ ‐ $ ‐ $ 200 $ 200

EXPENDITURES: CCWS CAPITAL (>$5,000): 30‐100100‐4100 IMPROVEMENTS $ ‐ $ 349,778 $ ‐ $ ‐ $ 1,030,353 Capital Total $ ‐ $ 349,778 $ ‐ $ ‐ $ 1,030,353

CCWS ‐ EXPENDITURES TOTAL ‐$ $ 349,778 $ ‐ $ ‐ $ 1,030,353

TRANSFERS REVENUES: TRANSFERS IN: 30‐000150‐9804 TRANSFER FROM ‐ SPUR CROSS$ 349,778 $ 351,890 $ ‐ $ 351,890 $ 328,485 Transfer From Total $ 349,778 $ 351,890 $ ‐ $ 351,890 $ 328,485

NET OF TRANSFERS IN(OUT)$ 349,778 $ 351,890 $ ‐ $ 351,890 $ 328,485

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 92

Page 276 of 324 Enterprise Funds

UTILITIES DIRECTOR JAMES KAYLOR

DISTRIBUTION SUPERVISOR WASTEWATER PLANT OPERATOR WATER PLANT SUPERVISOR UTILITIES REGULATORY Dennis Charles Sanford Hunt James Pacheco COMPLIANCE ANALYST Madison Edens

UTILITY WORKER UTILITIES MECHANIC WATER PLANT OPERATOR Brad Pater Richard Canham (Vacant)

UTILITY WORKER UTILITY WORKER WATER PLANT OPERATOR Rick Davis Mike Clark Myrona Petruna

UTILITIES MECHANIC WATER PLANT OPERATOR Jesus Morales Timothy Hoffman

WATER PLANT OPERATOR (Vacant)

UTILITIES TECHNICIAN (Vacant)

Purpose

The purpose of the Enterprise Funds is to report an activity for which the costs of the resulting goods or services provided are recovered through charges to external users. The Town’s Enterprise Funds consists of three funds, the Cave Creek Water, Desert Hills Water and the Wastewater Treatment.

Total Enterprise Fund Expenditure Budgets by Fiscal Year (Includes Transfers) $14,000,000 12,286,198 $12,000,000 10,291,917 9,746,000 9,725,450 $10,000,000 9,263,450

$8,000,000

$6,000,000

$4,000,000

$2,000,000

$0 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 93

Page 277 of 324 ENTERPRISE FUNDS SUMMARY BY TYPE

FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Description

ENTERPRISE FUND

REVENUES BY TYPE: LOCAL TAX $ 940,064 $ 900,000 $ 919,381 $ 913,800 $ 931,500 LOCAL FEES 7,558,149 8,082,900 7,841,476 7,601,685 8,529,055 MISCELLANEOUS 41,510 ‐ 10,137 8,204 ‐ TRANSFERS IN ‐ 1,309,017 ‐ 1,309,017 8,400,000 TOTAL ALL FUND REVENUES$ 8,539,723 $ 10,291,917 $ 8,770,994 $ 9,832,706 $ 17,860,555

EXPENDITURES BY TYPE: PERSONNEL COSTS $ 1,314,948 $ 1,540,400 $ 1,392,169 $ 1,545,780 $ 1,799,900 SERVICES 1,710,087 2,075,900 1,881,016 1,776,959 2,630,300 COMMODITIES/NON‐CAPITAL 1,073,886 949,450 1,072,899 986,900 1,056,750 CAPITAL 127,119 856,967 175,564 185,400 1,930,148 DEBT SERVICE 4,868,927 4,869,200 1,490,360 4,869,200 4,869,100 TOTAL ALL FUND EXPENDITURES$ 9,094,968 $ 10,291,917 $ 6,012,008 $ 9,364,239 $ 12,286,198

Beginning Net Position$ (11,298,568) $ 2,401,717 $ (8,696,784) (8,696,784) (8,228,317)

Change in Net Assets (555,244) ‐ 2,758,986 468,467 5,574,358

Estimated Ending Net Position$ (11,853,812) $ 2,401,717 $ (5,937,798) $ (8,228,317) $ (2,653,959)

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 94

Page 278 of 324 Cave Creek Water System Fund

Purpose

The Cave Creek Water System Fund is responsible for the operation of the Town’s water transmission, treatment, and distribution systems within the Cave Creek Water System service area.

Goals & Objectives

 Operate and maintain the water system to be a self‐supporting enterprise  Maintain and operate the Source Water Transmission System, Water Treatment Facility, and Water Distribution System in accordance with applicable laws and regulations  Maintain accurate operational records and respond to public concerns  Accurately complete monthly meter readings

Management Indicators

 Maintain records of the distribution system infrastructure, operations, maintenance and efficiency  Develop and modify short‐term and long‐term capital improvement plans

Notable Expenditures

Debt Service Costs Cost: $1,460,300 CCWS Principal Cost: $540,000 CCWS Interest Total: $2,000,300

AUTHORIZED POSITIONSFULL TIME EQUIVALENTS PROPOSED TITLE FY 2014‐15 FY 2015‐16 FY 2016‐17 FY 2017‐18 FY 2018‐19 CCWS UTILITIES MANAGER 0.45 0.35 0.35 0.35 0.44 UTILITIES ENGINEER 0.45 0.35 0.35 0.35 0.00 RECORDER 0 0 0 0.05 0.00 UTILITIES TECHNICAL ASSISTANT 0.7 0.6 0.6 0.6 0.6 UTILITIES ASSISTANT 0.2 0 0 0.35 0.35 BILLING ACCOUNT CLERK 11111 WATER PLANT SUPERVISOR 01100 WATER PLANT OPERATOR 1222.53.0 COLLECTIONS SYSTEM SUPERVISOR 0000.81.0 DISTRIBUTION SYSTEM SUPERVISOR 0.6 0.5 0.5 0.5 0.5 UTILITY WORKER 2 1.5 1.5 1 1 UTILITY MECHANIC 0.6 0 0 1.1 1.1 TOTAL 7 7.3 7.3 8.6 8.99

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 95

Page 279 of 324 Cave Creek Water System Fund Revenue Budget Sources of Funds by Type FY 2018 vs FY 2019 $6,000,000

$5,000,000

$4,000,000

$3,000,000 FY 2018 FY 2019 $2,000,000

$1,000,000

$‐ LOCAL FEES MISCELLANEOUS TRANSFERS IN

Cave Creek Water System Fund Expenditure Budget Uses of Funds by Type FY 2018 vs FY 2019 $2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000 FY 2018 $‐ FY 2019

Cave Creek Water System Fund Revenue Budget FY 2018 Cave Creek Water System Fund Revenue Budget FY 2019 Sources of Funds by Type Sources of Funds by Type LOCAL FEES, $4,849,015 , 100%

LOCAL FEES, $5,006,080 , 65%

MISCELLANEOUS, ‐ , 0%

TRANSFERS IN, ‐ , 0% MISCELLANEOUS, ‐ , 0% TRANSFERS IN, 2,660,000 , 35%

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 96

Page 280 of 324 Cave Creek Water System Fund Expenditure Budget Cave Creek Water System Fund Expenditure Budget FY 2018 FY 2019 Uses of Funds by Type Uses of Funds by Type DEBT SERVICE, DEBT SERVICE, 2,000,400 , 41% 2,000,300 , 32% CAPITAL, 1,254,648 , CAPITAL, 480,467 , 10% 20%

COMMODITIES/NON‐ PERSONNEL COSTS, PERSONNEL COSTS, COMMODITIES/NON‐ CAPITAL, 678,500 , 11% $802,900 , 16% $979,800 , 16% CAPITAL, 706,000 , 15%

SERVICES, 1,271,650 , SERVICES, 858,650 , 21% 18%

CAVE CREEK WATER SYSTEM FUND SUMMARY BY TYPE

FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Description

CAVE CREEK WATER SYSTEM FUND

REVENUES BY TYPE: LOCAL FEES $ 4,515,010 $ 4,849,015 $ 4,734,909 $ 4,648,385 $ 5,006,080 MISCELLANEOUS 37,640 ‐ 9,967 8,204 ‐ TRANSFERS IN ‐ ‐ ‐ ‐ 2,660,000 TOTAL ALL FUND REVENUES$ 4,552,650 $ 4,849,015 $ 4,744,876 $ 4,656,589 $ 7,666,080

EXPENDITURES BY TYPE: PERSONNEL COSTS $ 549,359 $ 802,900 $ 763,294 $ 878,630 $ 979,800 SERVICES 878,275 858,650 1,009,618 947,750 1,271,650 COMMODITIES/NON‐CAPITAL 643,104 706,000 668,899 623,000 678,500 CAPITAL 84,672 480,467 159,727 150,400 1,254,648 DEBT SERVICE 2,000,344 2,000,400 588,757 2,000,400 2,000,300 TOTAL ALL FUND EXPENDITURES$ 4,155,753 $ 4,848,417 $ 3,190,295 $ 4,600,180 $ 6,184,898

Beginning Net Position*$ (4,441,355) $ ‐ $ (2,711,143) (2,711,143) (2,654,734)

Change in Net Assets 396,897 598 1,554,581 56,409 1,481,183

Estimated Ending Net Position$ (4,044,458) $ 598 $ (1,156,562) $ (2,654,734) $ (1,173,552)

*For beginning balance, includes amounts owed to General Fund for past accumulation of interfund borrowings due to negative cash flows. NOT TO EXCEED: either the amount budgeted, or the amount needed to resolve the past negative cash flows will be transferred

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 97

Page 281 of 324 CAVE CREEK WATER SYSTEM 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title CAVE CREEK WATER SYSTEM REVENUES: LOCAL FEES: 45‐000500‐9150 WATER USEAGE FEE$ 3,351,827 $ 3,591,000 $ 3,536,359 $ 3,500,000 $ ‐ 50‐000101‐9150 WATER USEAGE FEE ‐ ‐ ‐ ‐ 3,671,800 45‐000500‐9151 WATER USEAGE PENALTY 8,929 8,925 9,248 8,925 ‐ 50‐000101‐9151 WATER USEAGE PENALTY ‐ ‐ ‐ ‐ 8,925 45‐000500‐9152 WATER USEAGE CAREFREE 349,734 404,250 441,490 430,000 ‐ 50‐000101‐9152 WATER USEAGE CAREFREE ‐ ‐ ‐ ‐ 404,250 45‐000500‐9153 WATER PENALTY CAREFREE 1,972 1,575 1,750 1,800 ‐ 50‐000101‐9153 WATER PENALTY CAREFREE ‐ ‐ ‐ ‐ 1,575 45‐000500‐9154 ADEQ WATER CONSUMPTION TAX 246 2,600 68 ‐ ‐ 50‐000101‐9154 ADEQ WATER CONSUMPTION TAX ‐ ‐ ‐ ‐ ‐ 45‐000500‐9155 WATER ESTABLISHMENT FEE 6,465 3,885 6,005 4,400 ‐ 50‐000101‐9155 WATER ESTABLISHMENT FEE ‐ ‐ ‐ ‐ 4,000 45‐000500‐9156 WATER ESTABLISHMENT ‐ CAREFRE 620 525 600 560 ‐ 50‐000101‐9156 WATER ESTABLISHMENT ‐ CAREFRE ‐ ‐ ‐ ‐ 525 45‐000500‐9157 METER SET FEE 11,570 7,350 10,430 7,500 ‐ 50‐000101‐9157 METER SET FEE ‐ ‐ ‐ ‐ 7,350 45‐000500‐9158 BULK WATER SALES 489,307 595,000 523,340 500,000 ‐ 50‐000101‐9158 BULKWATER SALES ‐ ‐ ‐ ‐ 550,000 45‐000500‐9160 WATER SERVICE FEE ‐ 34,650 ‐ ‐ ‐ 50‐000101‐9160 WATER SERVICE FEE ‐ ‐ ‐ ‐ ‐ 45‐000500‐9165 WATER CONNECTION FEE 2,175 3,255 1,031 1,200 ‐ 50‐000101‐9155 WATER CONNECTION FEE ‐ ‐ ‐ ‐ 3,255 45‐000500‐9045 CAPACITY CHARGE 292,165 196,000 204,589 194,000 ‐ 50‐000101‐9045 CAPACITY CHARGE ‐ ‐ ‐ ‐ 354,400 $ 4,515,010 $ 4,849,015 $ 4,734,909 $ 4,648,385 $ 5,006,080 MISCELLANEOUS: 45‐000500‐9705 DONATIONS ‐ CAPITAL$ 32,105 $ ‐ $ ‐ $ ‐ $ ‐ 45‐000500‐9799 MISCELLANEOUS ‐ OTHER 5,535 ‐ 9,967 ‐ ‐ 50‐000130‐9799 MISCELLANEOUS ‐ OTHER ‐ ‐ ‐ 8,204 ‐ Miscellaneous Total $ 37,640 $ ‐ $ 9,967 $ 8,204 $ ‐

CAVE CREEK WATER SYSTEM ‐ REVENUES TOTAL $ 4,552,650 $ 4,849,015 $ 4,744,876 $ 4,656,589 $ 5,006,080

CAVE CREEK WATER SYSTEM FUND TRANSFERS 6/30/2018 6/30/2016 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Numbe Account Title TRANSFERS REVENUES: TRANSFERS IN*: 50‐000150‐9801 TRANSFER FROM ‐ GENERAL FUND $ ‐ $ ‐ $ ‐ $ ‐ $ 2,660,000 Transfers From Total $ ‐ $ ‐ $ ‐ $ ‐ $ 2,660,000

NET OF TRANSFERS IN(OUT) $ ‐ $ ‐ $ ‐ $ ‐ $ 2,660,000

*Transfers in include amount owed to General Fund for past accumulation of interfund borrowings due to negative cash flow.

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 98

Page 282 of 324 CAVE CREEK WATER SYSTEM 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title EXPENSES: PERSONNEL COSTS: 45‐500100‐1001 SALARIES & WAGES$ 288,019 $ 540,200 $ 366,356 $ 458,395 $ ‐ 50‐050100‐1001 SALARIES & WAGES ‐ ‐ ‐ ‐ 675,400 45‐500100‐1002 OVERTIME 45,343 ‐ 95,082 108,073 50‐050100‐1002 OVERTIME ‐ ‐ ‐ ‐ 45‐500100‐1003 PAID TIME OFF ‐ PTO 25,332 ‐ 26,116 16,765 50‐050100‐1003 PAID TIME OFF ‐ PTO ‐ ‐ ‐ ‐ 45‐500100‐1008 HOLIDAY PAY 12,974 ‐ 17,342 11,273 50‐050100‐1008 HOLIDAY PAY ‐ ‐ ‐ ‐ 45‐500100‐1010 PER DIEM ON CALL 3,773 ‐ 11,903 14,620 50‐050100‐1008 PER DIEM ON CALL ‐ ‐ ‐ ‐ 45‐500100‐1017 PTO‐PAYOUT 10,820 ‐ 13,442 9,443 50‐050100‐1017 PTO‐PAYOUT ‐ ‐ ‐ ‐ 45‐500100‐1101 FICA/MEDICARE 19,394 41,400 39,444 40,864 ‐ 50‐050100‐1101 FICA/MEDICARE ‐ ‐ ‐ ‐ 51,700 45‐500100‐1102 RETIREMENT 47,505 60,700 59,547 61,271 ‐ 50‐050100‐1102 RETIREMENT ‐ ‐ ‐ ‐ 76,900 45‐500100‐1103 LIFE & MEDICAL INSURANCE 84,188 139,400 119,346 140,295 ‐ 50‐050100‐1103 LIFE & MEDICAL INSURANCE ‐ ‐ ‐ ‐ 155,900 45‐500100‐1104 STATE COMPENSATION 11,203 20,400 13,913 16,563 ‐ 50‐050100‐1104 STATE COMPENSATION ‐ ‐ ‐ ‐ 19,300 45‐500100‐1107 UNEMPLOYMENT INSURANCE 806 800 803 1,068 ‐ 50‐050100‐1107 UNEMPLOYMENT INSURANCE ‐ ‐ ‐ ‐ 600 Personnel Total $ 549,359 $ 802,900 $ 763,294 $ 878,630 $ 979,800 SERVICES: 45‐500100‐2046 COLLECTION SERVICE FEE$ 154 $ 150 $ 35 $ 150 $ ‐ 50‐050100‐2046 COLLECTION SERVICE FEE ‐ ‐ ‐ ‐ 150 45‐500100‐2049 PROFESSIONAL SERVICES 41,268 65,000 88,716 100,000 ‐ 50‐050100‐2049 PROFESSIONAL SERVICES ‐ ‐ ‐ ‐ 200,000 45‐500100‐2051 ELEC, WATER, SEWER,TRASH 502,680 440,000 497,722 440,000 ‐ 50‐050100‐2051 ELEC, WATER, SEWER,TRASH ‐ ‐ ‐ ‐ 450,000 45‐500100‐2053 TELEPHONES (ALL) 11,371 18,000 7,952 10,000 ‐ 50‐050100‐2053 TELEPHONES (ALL) ‐ ‐ ‐ ‐ 18,000 45‐500100‐2068 NON‐PROFESSIONAL SERVICES 17,306 15,000 46,697 52,000 ‐ 50‐050100‐2068 NON‐PROFESSIONAL SERVICES ‐ ‐ ‐ ‐ 50,000 45‐500100‐2080 MAINTENANCE 213,766 250,000 288,214 250,000 ‐ 50‐050100‐2080 MAINTENANCE ‐ ‐ ‐ ‐ 450,000 45‐500100‐2081 VEHICLE MAINTENANCE 6,793 10,000 6,786 8,000 ‐ 50‐050100‐2081 VEHICLE MAINTENANCE ‐ ‐ ‐ ‐ 10,000 45‐500100‐2121 EQUIPMENT LEASES & RENTS 24,212 5,000 17,822 26,000 ‐ 50‐050100‐2121 EQUIPMENT LEASES & RENTS ‐ ‐ ‐ ‐ 20,000 45‐500100‐2150 EMPLOYEE REIMB TRNG MEMBERSH 1,125 4,500 684 1,000 ‐ 50‐050100‐2150 EMPLOYEE REIMB TRNG MEMBERSH ‐ ‐ ‐ ‐ 6,000 45‐500100‐2202 BANK SERVICE FEES 5,071 6,000 322 600 ‐ 50‐050100‐2202 BANK SERVICE FEES ‐ ‐ ‐ ‐ 1,500 45‐500100‐2240 INSURANCE 43,121 45,000 54,669 60,000 ‐ 50‐050100‐2240 INSURANCE ‐ ‐ ‐ 66,000 45‐500100‐2901 BAD DEBT EXPENSE 11,409 ‐ ‐ ‐ ‐ Services Total $ 878,275 $ 858,650 $ 1,009,618 $ 947,750 $ 1,271,650 COMMODITIES/NON‐CAPITAL: 45‐500100‐3004 POSTAGE & COPIER EXPENSES$ 13,350 $ 12,500 $ 15,092 $ 12,500 $ ‐ 50‐050100‐3004 POSTAGE & COPIER EXPENSES ‐ ‐ ‐ ‐ 12,500 45‐500100‐3005 COMPUTER EQUIPT & RELATED ITEM 3,499 3,500 ‐ ‐ ‐ 50‐050100‐3005 COMPUTER EQUIPT & RELATED ITEM ‐ ‐ ‐ ‐ 3,500 45‐500100‐3055 CAP WATER EXPENSE 390,881 475,000 443,803 410,000 ‐ 50‐050100‐3055 CAP WATER EXPENSE ‐ ‐ ‐ ‐ 440,000 45‐500100‐3059 SUPPLIES 229,060 195,000 204,925 195,000 ‐ 50‐050100‐3059 SUPPLIES ‐ ‐ ‐ ‐ 160,000 45‐500100‐3060 CHEMICALS ‐ ‐ ‐ ‐ ‐ 50‐050100‐3060 CHEMICALS ‐ ‐ ‐ ‐ 50,000 45‐500100‐3062 FUEL & OIL 6,313 20,000 5,079 5,000 ‐ 50‐050100‐3062 FUEL & OIL ‐ ‐ ‐ ‐ 12,000 45‐500100‐3082 SUBSCRIPTIONS ‐ ‐ ‐ 500 ‐ 50‐050100‐3082 SUBSCRIPTIONS ‐ ‐ ‐ ‐ 500 Commodities/Non‐Capital Total $ 643,104 $ 706,000 $ 668,899 $ 623,000 $ 678,500 CAPITAL (>$5,000): 45‐500100‐4001 VEHICLES $ ‐ $ 56,400 $ ‐ $ 56,400 $ ‐ 50‐040100‐4001 VEHICLES ‐ ‐ ‐ ‐ ‐ 45‐500100‐4003 FURNITURE & EQUIPMENT ‐ 5,000 ‐ ‐ ‐ 50‐040100‐4003 FURNITURE & EQUIPMENT ‐ ‐ ‐ ‐ ‐ 45‐500100‐4004 COMPUTER SYSTEMS & SOFTWARE ‐ 25,000 ‐ ‐ ‐ 50‐040100‐4004 COMPUTER SYSTEMS & SOFTWARE ‐ ‐ ‐ ‐ ‐ 45‐500100‐4100 IMPROVEMENTS 84,672 394,067 159,727 94,000 ‐ 50‐040100‐4100 IMPROVEMENTS ‐ ‐ ‐ ‐ 1,254,648 Capital Total $ 84,672 $ 480,467 $ 159,727 $ 150,400 $ 1,254,648 DEBT SERVICE: 45‐500300‐2200 PRINCIPAL PAYMENTS$ 1,364,505 $ 1,411,600 $ ‐ $ 1,411,600 $ ‐ 50‐030100‐2200 PRINCIPAL PAYMENTS ‐ ‐ ‐ ‐ 1,460,300 45‐500300‐2201 DEBT INTEREST EXPENSE 635,839 588,800 588,757 588,800 ‐ 50‐030100‐2201 DEBT INTEREST EXPENSE ‐ ‐ ‐ ‐ 540,000 Debt Service Total $ 2,000,344 $ 2,000,400 $ 588,757 $ 2,000,400 $ 2,000,300

CAVE CREEK WATER SYSTEM ‐ EXPENSES TOTAL $ 4,155,753 $ 4,848,417 $ 3,190,295 $ 4,600,180 $ 6,184,898

Town*Adjusted of Cave for Capitalized Creek expenses, FY depreciation2019 Annual and principal Budgetpayments. ‐Proposed Final 99

Page 283 of 324 Desert Hills Water System Fund

Purpose

The Desert Hills Water System Fund is responsible for water transmission, treatment, and distribution systems within the Desert Hills Water System.

Goals & Objectives

 Operate and maintain the water system to be a self‐supporting enterprise  Maintain and operate the Source Water Transmission System, Water Treatment Facility, and Water Distribution System in accordance with applicable laws  Maintain accurate archived records and respond to public concerns  Complete monthly meter reading and billing services

Management Indicators

 Operation and Maintenance records are properly maintained  Develop and implement an internal safety plan that addresses the particular hazards of water utilities operations and maintenance  Maintain records of the distribution system infrastructure  Develop and modify short‐term and long‐term capital improvement plans

Notable Expenditure

Debt Service Costs Cost: $616,200 DHWS Principal Cost: $236,500 DHWS Interest Total: $852,700

AUTHORIZED POSITIONSFULL TIME EQUIVALENTS PROPOSED TITLE FY 2014‐15 FY 2015‐16 FY 2016‐17 FY 2017‐18 FY 2018‐19 DHWS UTILITIES MANAGER 0.18 0.35 0.35 0.3 0.39 UTILITIES TECHNICAL ASSISTANT 0.3 0.2 0.2 0.4 0.4 UTILITIES ASSISTANT 0.2 0 0 0.25 0.25 UTILITY BILLING SPECIALIST 11111 WATER PLANT OPERATOR 0000.51.0 DISTRIBUTION SYSTEM SUPERVISOR 0.4 0.5 0.5 0.5 0.5 UTILITY WORKER 1 1.5 1.5 1.05 1.05 UTILITY MECHANIC 0.4 0 0 0.65 0.65 TOTAL 3.48 3.55 3.55 4.65 5.24

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 100

Page 284 of 324 Desert Hills Water System Expenditure Budget by Fiscal Year 3,000,000 2,667,100

2,500,000 2,334,250 2,096,600 2,085,150 1,985,800 2,000,000

1,500,000

1,000,000

500,000

‐ FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Desert Hills Water System Fund Revenue Budget Sources of Funds by Type FY 2018 vs FY 2019 $3,000,000

$2,000,000

FY 2018 FY 2019 $1,000,000

$‐ LOCAL FEES MISCELLANEOUS TRANSFERS IN

Desert Hills Water System Fund Expenditure Budget Uses of Funds by Type FY 2018 vs FY 2019 $1,000,000

$800,000

$600,000

$400,000

$200,000 FY 2018 $‐ FY 2019

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 101

Page 285 of 324

Desert Hills Water System Fund Revenue Budget FY 2018 Desert Hills Water System Fund Revenue Budget FY 2018 Sources of Funds by Type Sources of Funds by Type

LOCAL FEES, $2,368,260 LOCAL FEES, $2,368,260 , 100% , 100%

TRANSFERS IN, ‐ , 0% TRANSFERS IN, ‐ , 0%

MISCELLANEOUS, ‐ , MISCELLANEOUS, ‐ , 0% 0%

Desert Hills Water System Fund Expenditure Budget FY Desert Hills Water System Fund Expenditure Budget FY 2018 2019 Uses of Funds by Type Uses of Funds by Type DEBT SERVICE, 852,700 , DEBT SERVICE, 852,700 , 37% 32% CAPITAL, 266,000 , 10% CAPITAL, 262,000 , 11% COMMODITIES/NON‐ CAPITAL, 88,000 , 3% COMMODITIES/NON‐ CAPITAL, 33,200 , 1%

PERSONNEL COSTS, PERSONNEL COSTS, $460,600 , 20% $547,400 , 21% SERVICES, 913,000 , 34% SERVICES, 725,750 , 31%

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 102

Page 286 of 324 DESERT HILLS WATER SYSTEM FUND SUMMARY BY TYPE

FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Description

DESERT HILLS WATER SYSTEM FUND

REVENUES BY TYPE: LOCAL FEES $ 2,273,364 $ 2,368,260 $ 2,378,179 $ 2,273,300 $ 2,424,050 MISCELLANEOUS 830 ‐ ‐ ‐ ‐ TRANSFERS IN ‐ ‐ ‐ ‐ ‐ TOTAL ALL FUND REVENUES$ 2,274,194 $ 2,368,260 $ 2,378,179 $ 2,273,300 $ 2,424,050

EXPENDITURES BY TYPE: PERSONNEL COSTS $ 296,651 $ 460,600 $ 337,956 $ 368,270 $ 547,400 SERVICES 552,848 725,750 589,680 525,409 913,000 COMMODITIES/NON‐CAPITAL 112,446 33,200 80,879 76,500 88,000 CAPITAL 29,948 262,000 6,000 35,000 266,000 DEBT SERVICE 852,597 852,700 257,247 852,700 852,700 TOTAL ALL FUND EXPENDITURES$ 1,844,490 $ 2,334,250 $ 1,271,763 $ 1,857,879 $ 2,667,100

Beginning Net Position$ (902,996) $ ‐ $ (250,729) (250,729) 164,693

Change in Net Assets 429,704 34,010 1,106,416 415,421 (243,050)

Estimated Ending Net Position$ (473,292) $ 34,010 $ 855,687 $ 164,693 $ (78,357)

*For beginning balance, includes amounts owed to General Fund for past accumulation of interfund borrowings due to negative cash flows. NOT TO EXCEED: either the amount budgeted, or the amount needed to resolve the past and current negative cash flows will be transferred

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 103

Page 287 of 324 DESERT HILLS WATER SYSTEM 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title DESERT HILLS WATER SYSTEM REVENUES: LOCAL FEES: 45‐000550‐9150 WATER USEAGE FEE$ 2,167,140 $ 2,261,700 $ 2,275,683 $ 2,257,000 $ ‐ 55‐000101‐9150 WATER USEAGE FEE ‐ ‐ ‐ ‐ 2,312,600 45‐000550‐9151 WATER USEAGE PENALTY 7,602 8,400 7,655 8,400 ‐ 55‐000101‐9151 WATER USEAGE PENALTY ‐ ‐ ‐ ‐ 8,400 45‐000550‐9154 ADEQ WATER CONSUMPTION TAX 156 1,200 (9) ‐ ‐ 55‐000101‐9154 ADEQ WATER CONSUMPTION TAX ‐ ‐ ‐ ‐ ‐ 45‐000550‐9155 WATER ESTABLISHMENT FEE 3,040 2,520 3,100 2,600 ‐ 55‐000101‐9155 WATER ESTABLISHMENT FEE ‐ ‐ ‐ ‐ 2,600 45‐000550‐9157 METER SET FEE 3,880 3,150 4,000 3,000 ‐ 55‐000101‐9157 METER SET FEE ‐ ‐ ‐ ‐ 3,150 45‐000550‐9165 WATER CONNECTION FEE 2,165 1,890 1,200 2,300 ‐ 55‐000101‐9165 WATER CONNECTION FEE ‐ ‐ ‐ ‐ 2,300 45‐000550‐9045 CAPACITY CHARGE 89,381 89,400 86,550 ‐ ‐ 50‐000101‐9045 CAPACITY CHARGE ‐ ‐ ‐ ‐ 95,000 Local Fees Total $ 2,273,364 $ 2,368,260 $ 2,378,179 $ 2,273,300 $ 2,424,050

DESERT HILLS WATER SYSTEM ‐ REVENUES TOTAL $ 2,274,194 $ 2,368,260 $ 2,378,179 $ 2,273,300 $ 2,424,050

DESERT HILLS WATER SYSTEM FUND TRANSFERS 6/30/2018 6/30/2016 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Numbe Account Title TRANSFERS REVENUES: TRANSFERS IN*: 55‐000150‐9801 TRANSFER FROM ‐ GENERAL FUND $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ Transfers From Total $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ EXPENSES: TRANSFERS TO: 45‐000160‐9901 TRANSFER TO‐GENERAL FUND ‐ ‐ ‐ ‐ ‐ Transfers To Total $ ‐ $ ‐ $ ‐ $ ‐ $ ‐

NET OF TRANSFERS IN(OUT) $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ * Included in Wastewater Treatment Operations

*Transfers in include amount owed to General Fund for past accumulation of interfund borrowings due to negative cash flow. Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 104

Page 288 of 324 DESERT HILLS WATER SYSTEM 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title

EXPENSES: PERSONNEL COSTS: 45‐550100‐1001 SALARIES & WAGES$ 149,091 $ 305,300 $ 178,045 $ 213,549 $ ‐ 55‐050100‐1001 SALARIES & WAGES ‐ ‐ ‐ ‐ 370,300 45‐550100‐1002 OVERTIME 13,613 ‐ 15,470 20,918 55‐050100‐1002 OVERTIME ‐ ‐ ‐ ‐ 45‐550100‐1003 PAID TIME OFF ‐ PTO 13,669 ‐ 10,463 5,782 55‐050100‐1003 PAID TIME OFF ‐ PTO ‐ ‐ ‐ ‐ 45‐550100‐1008 HOLIDAY 7,601 ‐ 7,787 4,940 55‐050100‐1008 HOLIDAY ‐ ‐ ‐ ‐ 45‐550100‐1010 PER DIEM ON CALL 3,073 ‐ 3,824 4,120 55‐050100‐1010 PER DIEM ON CALL ‐ ‐ ‐ ‐ 45‐550100‐1017 PTO‐PAYOUT 10,191 ‐ 8,932 7,062 55‐050100‐1017 PTO‐PAYOUT ‐ ‐ ‐ ‐ 45‐550100‐1101 FICA/MEDICARE 25,130 23,400 16,567 14,021 55‐050100‐1101 FICA/MEDICARE ‐ ‐ ‐ ‐ 28,400 45‐550100‐1102 RETIREMENT 22,639 35,000 24,853 20,938 ‐ 55‐050100‐1102 RETIREMENT ‐ ‐ ‐ ‐ 43,000 45‐550100‐1103 LIFE & MEDICAL INSURANCE 45,962 90,900 66,383 72,401 ‐ 55‐050100‐1102 LIFE & MEDICAL INSURANCE ‐ ‐ ‐ ‐ 99,600 45‐550100‐1104 STATE COMPENSATION 5,315 5,500 5,325 4,272 ‐ 55‐050100‐1104 STATE COMPENSATION ‐ ‐ ‐ ‐ 5,700 45‐550100‐1107 UNEMPLOYMENT INSURANCE 366 500 307 ‐ ‐ 55‐050100‐1107 UNEMPLOYMENT INSURANCE ‐ ‐ ‐ 268 400 Personnel Total $ 296,651 $ 460,600 $ 337,956 $ 368,270 $ 547,400 SERVICES: 45‐550100‐2046 COLLECTION SERVICE FEE$ 153 $ ‐ $ 9 $ 9 $ ‐ 55‐050100‐2046 COLLECTION SERVICE FEE ‐ ‐ ‐ ‐ ‐ 45‐550100‐2049 PROFESSIONAL SERVICES 19,802 50,000 72,475 38,000 ‐ 55‐050100‐2049 PROFESSIONAL SERVICES ‐ ‐ ‐ ‐ 50,000 45‐550100‐2051 ELEC, WATER, SEWER,TRASH 220,512 95,000 93,133 88,000 ‐ 55‐050100‐2051 ELEC, WATER, SEWER,TRASH ‐ ‐ ‐ ‐ 300,000 45‐550100‐2052 BULK WATER PURCHASE 256,602 375,000 354,756 330,000 ‐ 55‐050100‐2052 BULK WATER PURCHASE ‐ ‐ ‐ ‐ 350,000 45‐550100‐2053 TELEPHONES (ALL) 3,185 7,000 4,257 4,000 ‐ 55‐050100‐2053 TELEPHONES (ALL) ‐ ‐ ‐ ‐ 4,000 45‐550100‐2068 NON‐PROFESSIONAL SERVICES 2,947 2,000 2,118 2,200 ‐ 55‐050100‐2068 NON‐PROFESSIONAL SERVICES ‐ ‐ ‐ ‐ 3,000 45‐550100‐2080 MAINTENANCE 32,481 175,000 42,199 35,000 ‐ 55‐050100‐2080 MAINTENANCE ‐ ‐ ‐ ‐ 175,000 45‐550100‐2081 VEHICLE MAINTENANCE 1,998 750 991 2,000 ‐ 55‐050100‐2081 VEHICLE MAINTENANCE ‐ ‐ ‐ ‐ 2,000 45‐550100‐2150 EMPLOYEE REIMB TRNG MEMBERSH 668 3,000 340 500 ‐ 55‐050100‐2150 EMPLOYEE REIMB TRNG MEMBERSH ‐ ‐ ‐ ‐ 3,000 45‐550100‐2202 BANK SERVICE FEES 2,423 1,000 203 700 ‐ 55‐050100‐2202 BANK SERVICE FEES ‐ ‐ ‐ ‐ 1,000 45‐550100‐2240 INSURANCE 15,491 17,000 19,198 25,000 ‐ 55‐050100‐2240 INSURANCE ‐ ‐ ‐ ‐ 25,000 45‐550100‐2901 BAD DEBT EXPENSE (3,414) ‐ ‐ ‐ ‐ 55‐050100‐2901 BAD DEBT EXPENSE ‐ ‐ ‐ ‐ ‐ Services Total $ 552,848 $ 725,750 $ 589,680 $ 525,409 $ 913,000 COMMODITIES/NON‐CAPITAL: 45‐550100‐3004 POSTAGE & COPIER EXPENSES$ 8,498 $ 7,200 $ 10,211 $ 8,000 $ ‐ 55‐050100‐3004 POSTAGE & COPIER EXPENSES ‐ ‐ ‐ ‐ 8,500 45‐550100‐3059 SUPPLIES 99,073 22,500 63,369 62,000 ‐ 55‐050100‐3059 SUPPLIES ‐ ‐ ‐ ‐ 25,000 45‐550100‐3060 CHEMICALS ‐ ‐ ‐ ‐ ‐ 55‐050100‐3060 CHEMICALS ‐ ‐ ‐ ‐ 50,000 45‐550100‐3062 FUEL & OIL 4,875 3,500 7,299 6,500 ‐ 55‐050100‐3062 FUEL & OIL ‐ ‐ ‐ ‐ 4,500 Commodities/Non‐Capital Total $ 112,446 $ 33,200 $ 80,879 $ 76,500 $ 88,000 CAPITAL (>$5,000): 45‐550100‐4100 *IMPROVEMENTS$ 29,948 $ 262,000 $ 6,000 $ 35,000 $ ‐ 50‐040100‐4100 *IMPROVEMENTS ‐ ‐ ‐ ‐ 266,000 Capital Total $ 29,948 $ 262,000 $ 6,000 $ 35,000 $ 266,000 DEBT SERVICE: 45‐550300‐2200 *PRINCIPAL PAYMENTS$ 575,228 $ 595,400 $ ‐ $ 595,400 $ ‐ 55‐030100‐2200 *PRINCIPAL PAYMENTS ‐ ‐ ‐ ‐ 616,200 45‐550300‐2201 DEBT INTEREST EXPENSE 277,369 257,300 257,247 257,300 ‐ 55‐030100‐2201 DEBT INTEREST EXPENSE ‐ ‐ ‐ ‐ 236,500 Debt Service Total $ 852,597 $ 852,700 $ 257,247 $ 852,700 $ 852,700

DESERT HILLS WATER SYSTEM ‐ EXPENSES TOTAL $ 1,844,490 $ 2,334,250 $ 1,271,763 $ 1,857,879 $ 2,667,100

Town*Adjusted of for CapitalizedCave Creek expenses, FY depreciation 2019 andAnnual principal payments.Budget ‐Proposed Final 105

Page 289 of 324 Wastewater System

Purpose

The Utilities Department is responsible for the operation of the Town’s Wastewater Treatment Plant (WWTP) and for providing direction and support for the activities of the treatment plant. The Department is responsible for wastewater collection, transport, and beneficial reuse of reclaimed effluent, as well as management of the Town’s Fats, Oils and Grease (FOG) Program.

Goals & Objectives

 Oversee the operation and maintenance of the WWTP, collection system and Lift Stations by Town Staff and keep in good working order in accordance with applicable laws  Manage and implement a preventive maintenance program to prevent blockages in the collection system  Maintain accurate records and respond to public concerns  Administer the Industrial Pretreatment Program  Provide condition assessments of the wastewater facilities  Connect businesses and residences requesting service  Identify mechanisms to increase WWTP loading, utilization and payback  Maximize equipment life expectancy  Continue to minimize odor discharges from the facility

Management Indicators

 Operations and Maintenance records are maintained, including iWorq PMP records  Monitor Laboratory support services  Manage a Safety Plan addressing the particular hazards of the wastewater system  Develop and maintain a record of the wastewater collection system infrastructure and operating conditions.

Notable Expenditures

 Wastewater System and Treatment Plant. Per Capital Improvement Program: Cost: $307,500

 Debt Service Service Costs Cost: $1,419,500 WWTP Principal Cost: $ 596,600 WWTP Interest Total: $ 852,700

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 106

Page 290 of 324 AUTHORIZED POSITIONSFULL TIME EQUIVALENTS PROPOSED TITLE FY 2014‐15 FY 2015‐16 FY 2016‐17 FY 2017‐18 FY 2018‐19 WWTP UTILITIES MANAGER 0.27 0.1 0.1 0.15 0.17 ASSISTANT UTILITIES MANAGER 00000 UTILITY TECHNICAL ASSISTANT 00000 UTILITIES ASSISTANT 0.1 0 0 0.2 0.2 COLLECTIONS SYSTEM SUPERVISOR 0000.20 WASTEWATER SUPERVISOR 02211 UTILITIES WORKER 2 0 0 0.95 0.95 UTILITIES MECHANIC 1 0 0 0.25 0.25 WASTEWATER OPERATOR 12200 TOTAL 4.37 4.1 4.1 2.75 2.57

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 107

Page 291 of 324 Wastewater Fund Total Fund Expenditure Budget by Fiscal Year (Includes Transfers) $3,500,000 3,434,200 $3,400,000

$3,300,000

$3,200,000 3,154,050 3,109,250 $3,100,000

$3,000,000 2,947,300 2,966,650

$2,900,000

$2,800,000

$2,700,000 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Wastewater Fund Revenue Budget Sources of Funds by Type FY 2018 vs FY 2019 $7,000,000

$6,000,000

$5,000,000

$4,000,000 FY 2018 $3,000,000 FY 2019

$2,000,000

$1,000,000

$‐ LOCAL TAX LOCAL FEES MISCELLANEOUS TRANSFERS IN

Wastewater Fund Expenditure Budget Uses of Funds by Type FY 2018 vs FY 2019 $2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000 FY 2018 $‐ FY 2019

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 108

Page 292 of 324 Wastewater Fund Revenue Budget FY 2018 Wastewater Fund Revenue Budget FY 2019 Sources of Funds by Type Sources of Funds by Type

LOCAL FEES, 865,625 , 28% MISCELLANEOUS, ‐ , 0%

TRANSFERS IN, MISCELLANEOUS, ‐ , 5,740,000 , 74% 0%

TRANSFERS IN, LOCAL TAX, $900,000 , 1,309,017 , 43% LOCAL FEES, 1,098,925 , 29% 14%

LOCAL TAX, $931,500 , 12%

Wastewater Fund Expenditure Budget FY 2018 Wastewater Fund Expenditure Budget FY 2019 Uses of Funds by Type Uses of Funds by Type

DEBT SERVICE, DEBT SERVICE, 2,016,100 , 65% 2,016,100 , 59%

PERSONNEL COSTS, PERSONNEL COSTS, $272,700 , 8% $276,900 , 9% CAPITAL, 114,500 , 3% CAPITAL, 409,500 , 12%

COMMODITIES/NON‐ SERVICES, 445,650 , COMMODITIES/NON‐ CAPITAL, 290,250 , 8% 13% CAPITAL, 210,250 , 7% SERVICES, 491,500 , 16%

WASTEWATER TREATMENT FUND SUMMARY BY TYPE

FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Description

WASTEWATER TREATMENT FUND

REVENUES BY TYPE: LOCAL TAX $ 940,064 $ 900,000 $ 919,381 $ 913,800 $ 931,500 LOCAL FEES 769,775 865,625 728,388 680,000 1,098,925 MISCELLANEOUS 3,040 ‐ 170 ‐ ‐ TRANSFERS IN ‐ 1,309,017 ‐ 1,309,017 5,740,000 TOTAL ALL FUND REVENUES$ 1,712,880 $ 3,074,642 $ 1,647,939 $ 2,902,817 $ 7,770,425

EXPENDITURES BY TYPE: PERSONNEL COSTS $ 468,939 $ 276,900 $ 290,919 $ 298,880 $ 272,700 SERVICES 278,964 491,500 281,717 303,800 445,650 COMMODITIES/NON‐CAPITAL 318,337 210,250 323,121 287,400 290,250 CAPITAL 12,499 114,500 9,837 ‐ 409,500 DEBT SERVICE 2,015,986 2,016,100 644,356 2,016,100 2,016,100 TOTAL ALL FUND EXPENDITURES$ 3,094,725 $ 3,109,250 $ 1,549,950 $ 2,906,180 $ 3,434,200

Beginning Net Position$ (5,954,217) $ ‐ $ (5,734,912) $ (5,734,912) $ (5,738,275)

Change in Net Assets (1,381,845) (34,608) 97,989 (3,363) 4,336,225

Estimated Ending Net Position$ (7,336,062) $ (34,608) $ (5,636,924) $ (5,738,275) $ (1,402,050)

*For beginning balance, includes amounts owed to General Fund for past accumulation of interfund borrowings due to negative cash flows. NOT TO EXCEED: either the amount budgeted, or the amount needed to resolve the past negative cash flows will be transferred Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 109

Page 293 of 324 WASTEWATER TREATMENT PLANT 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title WASTEWATER TREATMENT PLANT REVENUES: LOCAL TAX: 45‐000400‐9004 1/2 CENTS SALES TAX$ 940,064 $ 900,000 $ 919,381 $ 913,800 $ ‐ 40‐000100‐9004 1/2 CENTS SALES TAX ‐ ‐ ‐ ‐ 931,500 Local Tax Total $ 940,064 $ 900,000 $ 919,381 $ 913,800 $ 931,500 LOCAL FEES: 45‐000400‐9102 SEWER USER FEES$ 490,317 $ 493,500 $ 503,968 $ 504,000 $ ‐ 40‐000102‐9102 SEWER USER FEES ‐ ‐ ‐ ‐ 587,800 45‐000400‐9103 SEWER BILLINGS ‐ LATE CHARGES ‐ ‐ ‐ ‐ ‐ 40‐000102‐9103 SEWER BILLINGS ‐ LATE CHARGES ‐ ‐ ‐ ‐ ‐ 45‐000400‐9104 SEWER BILLING ADMIN FEE 16,906 15,750 16,953 16,000 ‐ 40‐000102‐9104 SEWER BILLING ADMIN FEE ‐ ‐ ‐ ‐ 15,750 45‐000400‐9105 SEWER BOD / TSS FEES ‐ 7,875 ‐ ‐ ‐ 40‐000102‐9105 SEWER BOD / TSS FEES ‐ ‐ ‐ ‐ 7,875 45‐000400‐9158 BULK WATER SALES 119,561 21,000 117,862 ‐ ‐ 40‐000102‐9158 BULK WATER SALES ‐ ‐ ‐ ‐ 21,000 45‐000400‐9039 DEVELOPMENT FEE‐WASTEWATER ‐ ‐ ‐ ‐ ‐ 40‐000101‐9039 DEVELOPMENT FEE‐WASTEWATER ‐ ‐ ‐ ‐ ‐ 45‐000400‐9045 CAPACITY CHARGE‐WASTEWATER 142,991 275,000 89,605 140,000 ‐ 40‐000101‐9045 CAPACITY CHARGE‐WASTEWATER ‐ ‐ ‐ ‐ 414,000 45‐000400‐9100 WASTEWATER CONNECTION FEE ‐ 52,500 ‐ 20,000 ‐ 40‐000102‐9100 WASTEWATER CONNECTION FEE ‐ ‐ ‐ ‐ 52,500 45‐000400‐9101 SEWER TAP‐IN FEE ‐ ‐ ‐ ‐ ‐ 40‐000102‐9101 SEWER TAP‐IN FEE ‐ ‐ ‐ ‐ ‐ Local Fees Total $ 769,775 $ 865,625 $ 728,388 $ 680,000 $ 1,098,925

WASTEWATER TREATMENT PLANT‐ REVENUES TOTA $ 1,712,880 $ 1,765,625 $ 1,647,939 $ 1,593,800 $ 2,030,425

WASTEWATER TREATMENT FUND TRANSFERS 6/30/2018 6/30/2016 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Numbe Account Title TRANSFERS REVENUES: TRANSFERS IN:* 40‐000150‐9801 TRANSFER FROM ‐ GENERAL FUND $ ‐ $ 1,309,017 $ ‐ $ 1,309,017 $ 5,740,000 Transfers From Total $ ‐ $ 1,309,017 $ ‐ $ 1,309,017 $ 5,740,000

NET OF TRANSFERS IN(OUT) $ ‐ $ 1,309,017 $ ‐ $ 1,309,017 $ 5,740,000 * Included in Wastewater Treatment Operations

*Transfers in include amount owed to General Fund for past accumulation of interfund borrowings due to negative cash flow.

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 110

Page 294 of 324 WASTEWATER TREATMENT PLANT 6/30/2018 6/30/2017 FY 2017 FY 2018 FY 2018 FY 2018 FY 2019 Actual Budget Actuals Projected Actuals Proposed Budget Year‐To‐Date Account Number Account Title EXPENSES: PERSONNEL COSTS: 45‐400100‐1001 SALARIES & WAGES$ 242,467 $ 195,700 $ 153,661 $ 165,955 $ ‐ 40‐021100‐1001 SALARIES & WAGES ‐ ‐ ‐ ‐ 197,400 45‐400100‐1002 OVERTIME 61,974 ‐ 18,855 21,455 40‐021100‐1002 OVERTIME ‐ ‐ ‐ ‐ 45‐400100‐1003 PAID TIME OFF ‐ PTO 9,930 ‐ 7,848 6,275 40‐021100‐1002 PAID TIME OFF ‐ PTO ‐ ‐ ‐ ‐ 45‐400100‐1008 HOLIDAY PAY 11,630 ‐ 7,143 4,777 40‐021100‐1008 HOLIDAY PAY ‐ ‐ ‐ ‐ 45‐400100‐1010 PER DIEM ON CALL 15,554 ‐ 10,824 11,923 40‐021100‐1010 PER DIEM ON CALL ‐ ‐ ‐ ‐ 45‐400100‐1017 PTO‐PAYOUT 9,947 ‐ 14,371 11,055 40‐021100‐1017 PTO‐PAYOUT ‐ ‐ ‐ ‐ 45‐400100‐1101 FICA/MEDICARE 25,218 15,000 15,864 14,319 ‐ 40‐021100‐1101 FICA/MEDICARE ‐ ‐ ‐ ‐ 15,100 45‐400100‐1102 RETIREMENT 30,403 21,900 22,862 20,615 ‐ 40‐021100‐1102 RETIREMENT ‐ ‐ ‐ ‐ 22,000 45‐400100‐1103 LIFE & MEDICAL INSURANCE 49,777 36,700 32,928 36,384 ‐ 40‐021100‐1103 LIFE & MEDICAL INSURANCE ‐ ‐ ‐ ‐ 32,900 45‐400100‐1104 STATE COMPENSATION 11,672 7,300 6,287 5,763 ‐ 40‐021100‐1104 STATE COMPENSATION ‐ ‐ ‐ ‐ 5,100 45‐400100‐1107 UNEMPLOYMENT INSURANCE 367 300 275 360 ‐ 40‐021100‐1107 UNEMPLOYMENT INSURANCE ‐ ‐ ‐ ‐ 200 Personnel Total $ 468,939 $ 276,900 $ 290,919 $ 298,880 $ 272,700 SERVICES: 45‐400100‐2049 PROFESSIONAL SERVICES$ 42,278 $ 135,000 $ 56,516 $ 75,000 $ ‐ 40‐021100‐2049 PROFESSIONAL SERVICES ‐ ‐ ‐ ‐ 135,000 45‐400100‐2051 ELEC, WATER, SEWER,TRASH 115,170 95,000 108,772 100,000 ‐ 40‐021100‐2051 ELEC, WATER, SEWER,TRASH ‐ ‐ ‐ ‐ 115,000 45‐400100‐2053 TELEPHONES (ALL) 7,683 10,000 6,005 7,800 ‐ 40‐021100‐2053 TELEPHONES (ALL) ‐ ‐ ‐ ‐ 10,000 45‐400100‐2068 NON‐PROFESSIONAL SERVICES 2,331 45,000 8,006 15,000 ‐ 40‐021100‐2068 NON‐PROFESSIONAL SERVICES ‐ ‐ ‐ ‐ 30,000 45‐400100‐2080 MAINTENANCE 65,601 155,000 49,597 50,000 ‐ 40‐021100‐2080 MAINTENANCE ‐ ‐ ‐ ‐ ‐ 45‐400100‐2081 VEHICLE MAINTENANCE 5,619 6,000 1,889 6,000 ‐ 40‐021100‐2081 VEHICLE MAINTENANCE ‐ ‐ ‐ ‐ 8,000 45‐400100‐2121 EQUIPMENT LEASES & RENTS 2,338 1,500 8,244 1,300 ‐ 40‐021100‐2121 EQUIPMENT LEASES & RENTS ‐ ‐ ‐ ‐ 1,500 45‐400100‐2150 EMPLOYEE REIMB TRNG MEMBERSH 83 1,500 143 200 ‐ 40‐021100‐2150 EMPLOYEE REIMB TRNG MEMBERSH ‐ ‐ ‐ ‐ 1,500 45‐400100‐2202 BANK SERVICE FEES 1,627 2,500 44 500 ‐ 40‐021100‐2202 BANK SERVICE FEES ‐ ‐ ‐ ‐ 1,500 45‐400100‐2240 INSURANCE 36,207 40,000 42,501 48,000 ‐ 40‐021100‐2240 INSURANCE ‐ ‐ ‐ ‐ 50,000 40‐021100‐2906 CONTINGENCY ACCOUNT ‐ ‐ ‐ ‐ 93,150 Services Total $ 278,964 $ 491,500 $ 281,717 $ 303,800 $ 445,650 COMMODITIES/NON‐CAPITAL: 45‐400100‐3004 POSTAGE & COPIER EXPENSES$ 202 $ 250 $ 525 $ 400 $ ‐ 40‐021100‐3004 POSTAGE & COPIER EXPENSES ‐ ‐ ‐ ‐ 250 45‐400100‐3005 COMPUTER EQUIPT & RELATED ITEM 1,500 5,000 ‐ ‐ ‐ 40‐021100‐3005 COMPUTER EQUIPT & RELATED ITEM ‐ ‐ ‐ ‐ 5,000 45‐400100‐3059 SUPPLIES 310,622 130,000 301,231 261,000 ‐ 40‐021100‐3059 SUPPLIES ‐ ‐ ‐ ‐ 200,000 45‐400100‐3060 CHEMICALS ‐ 70,000 17,143 22,000 ‐ 40‐021100‐3060 CHEMICALS ‐ ‐ ‐ ‐ 80,000 45‐400100‐3062 FUEL & OIL 6,013 5,000 4,222 4,000 ‐ 40‐021100‐3062 FUEL & OIL ‐ ‐ ‐ ‐ 5,000 Commodities/Non‐Capital Total $ 318,337 $ 210,250 $ 323,121 $ 287,400 $ 290,250 CAPITAL (>$5,000): 45‐400100‐4003 FURNITURE & EQUIPMENT $ ‐ $ 7,500 $ ‐ $ ‐ $ ‐ 40‐022600‐4003 FURNITURE & EQUIPMENT ‐ ‐ ‐ ‐ 7,500 45‐400100‐4100 IMPROVEMENTS 12,499 107,000 9,837 ‐ ‐ 40‐022600‐4100 IMPROVEMENTS ‐ ‐ ‐ ‐ 402,000 Capital Total $ 12,499 $ 114,500 $ 9,837 $ ‐ $ 409,500 DEBT SERVICE: 45‐400300‐2200 *PRINCIPAL PAYMENTS$ 1,325,438 $ 1,371,700 $ ‐ $ 1,371,700 $ ‐ 40‐030100‐2200 *PRINCIPAL PAYMENTS ‐ ‐ ‐ ‐ 1,419,500 45‐400300‐2201 DEBT INTEREST EXPENSE 690,548 644,400 644,356 644,400 ‐ 40‐030100‐2201 DEBT INTEREST EXPENSE ‐ ‐ ‐ ‐ 596,600 Debt Service Total $ 2,015,986 $ 2,016,100 $ 644,356 $ 2,016,100 $ 2,016,100

TOTAL WASTEWATER TREATMENT PLANT EXPENSES:$ 3,094,725 $ 3,109,250 $ 1,549,950 $ 2,906,180 $ 3,434,200

Town*Adjusted of for CaveCapitalized Creek expenses, FY depreciation 2019 Annualand principal payments.Budget ‐Proposed Final 111

Page 295 of 324 APPENDIX A

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 112

Page 296 of 324

OFFICIAL BUDGET FORMS

TOWN OF CAVE CREEK

Fiscal Year 2019

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 113

Page 297 of 324

TOWN OF CAVE CREEK

TABLE OF CONTENTS

Fiscal Year 2019

Schedule A—Summary Schedule of Estimated Revenues and Expenditures/Expenses

Schedule B—Tax Levy and Tax Rate Information

Schedule C—Revenues Other Than Property Taxes

Schedule D—Other Financing Sources/ and Interfund Transfers

Schedule E—Expenditures/Expenses by Fund

Schedule G—Full-Time Employees and Personnel Compensation

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 114

Page 298 of 324 TOWN OF CAVE CREEK Summary Schedule of Estimated Revenues and Expenditures/Expenses Fiscal Year 2019

FUNDS S c Fiscal h Special Revenue Capital Projects Permanent Enterprise Internal Year General Fund Fund Debt Service Fund Fund Fund Funds Available Service Funds Total All Funds

2018 Adopted/Adjusted Budgeted Expenditures/Expenses* E 6,017,658 1,353,129 176,044 463,930 0 10,291,917 0 18,302,678

2018 Actual Expenditures/Expenses** E 4,744,585 603,876 176,044 16,573 0 9,364,239 0 14,905,317

2019 Fund Balance/Net Position at July 1*** 20,207,133 1,973,266 0 771,751 0 (2,654,734) 0 20,297,416

2019 Primary Property Tax Levy B 0 0

2019 Secondary Property Tax Levy B 0 0 0

2019 Estimated Revenues Other than Property Taxes C 7,579,967 1,955,885 15,600 500 0 9,460,555 0 19,012,507

2019 Other Financing Sources D 0 0 0 0 0 0 0 0

2019 Other Financing (Uses) D 0 0 0 0 0 0 0 0

2019 Interfund Transfers In D 330,985 100,000 165,600 328,485 0 8,400,000 0 9,325,069 SCHEDULE

2019 Interfund Transfers (Out) D 8,565,600 759,469 0 0 0 0 0 9,325,069

2019 Reduction for Amounts Not Available:

LESS: Amounts for Future Debt Retirement: 0

A

0

0

0

2019 Total Financial Resources Available 19,552,485 3,269,682 181,200 1,100,736 0 15,205,821 0 39,309,923

2019 Budgeted Expenditures/Expenses E 6,451,704 1,433,135 181,200 1,100,353 0 12,286,198 0 21,452,589

EXPENDITURE LIMITATION COMPARISON 2018 2019 1. Budgeted expenditures/expenses $ 18,302,678 $ 21,452,589 Page 299 of324 2. Add/subtract: estimated net reconciling items 3. Budgeted expenditures/expenses adjusted for reconciling items 18,302,678 21,452,589 4. Less: estimated exclusions 5. Amount subject to the expenditure limitation$ 18,302,678 $ 21,452,589 6. EEC expenditure limitation $ $

x The city/town does not levy property taxes and does not have special assessment districts for which property taxes are levied. Therefore, Schedule B has been omitted.

* Includes Expenditure/Expense Adjustments Approved in the current year from Schedule E. ** Includes actual amounts as of the date the proposed budget was prepared, adjusted for estimated activity for the remainder of the fiscal year. 115 *** Amounts on this line represent Fund Balance/Net Position amounts except for amounts not in spendable form (e.g., prepaids and inventories) or legally or contractually required to be maintained intact (e.g., principal of a permanent fund).

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 115

TOWN OF CAVE CREEK Tax Levy and Tax Rate Information Fiscal Year 2019 2018 2019 1. Maximum allowable primary property tax levy. A.R.S. §42-17051(A) $$

2. Amount received from primary property taxation in the current year in excess of the sum of that year's maximum allowable primary property tax levy. A.R.S. §42-17102(A)(18) $

3. Property tax levy amounts A. Primary property taxes $ $ B. Secondary property taxes C. Total property tax levy amounts $ $

4. Property taxes collected* A. Primary property taxes (1) Current year's levy $ (2) Prior years’ levies (3) Total primary property taxes $ B. Secondary property taxes (1) Current year's levy $ (2) Prior years’ levies (3) Total secondary property taxes $ C. Total property taxes collected $

5. Property tax rates A. City/Town tax rate (1) Primary property tax rate (2) Secondary property tax rate (3) Total city/town tax rate B. Special assessment district tax rates Secondary property tax rates - As of the date the proposed budget was prepared, the city/town was operating special assessment districts for which seconda property taxes are levied. For information pertaining to these special assessment districts and their tax rates, please contact the city/town.

* Includes actual property taxes collected as of the date the proposed budget was prepared, plus estimated property tax collections for the remainder of the fiscal year.

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 116

SCHEDULE B Page 300 of 324 TOWN OF CAVE CREEK Revenues Other Than Property Taxes Fiscal Year 2019

ESTIMATED AC T U AL ESTIMATED REVENUES REVENUES* REVENUES SOURCE OF REVENUES 2018 2018 2019 GENERAL FUND Local taxes TOWN SALES TAX $ 3,600,000 $ 3,655,018 $ 3,726,000 SALES TAX-CONSTRUCTION 600,000 1,118,900 985,800 Licenses and permits BUILDING PERMITS 471,537 480,000 588,600 BUSINESS LICENSE FEES 50,000 51,000 51,000 Intergovernmental REVENUE SHARING (INCOME TAX) 670,358 670,000 672,238 AUTO LIEU TAX 226,450 226,000 241,991 STATE SALES TAX 507,654 507,000 543,488 Charges for services ENGINEERING PLAN REVIEWS 99,500 50,000 179,750 PLANNING & ZONING FEES 52,250 48,000 44,500 RIGHT OF WAY FEES 28,000 260,000 32,000 REPORT FEES 400 600 600 Interest on investments INTEREST 30,000 22,300 30,000 In-lieu property taxes PYMTS IN LIEU OF PROPERTY TAX 200,000 210,200 210,000 SW GAS F-AGREEMENT SUP 20,000 25,200 25,200 Contributions Voluntary contributions Miscellaneous RENTAL PROPERTY INCOME 141,500 141,500 141,500 SPECIAL EVENTS PROCEEDS 175,000 75,000 106,300 RODEO 20,000 10,000 FINGERPRINT FEES 1,000 1,000 1,000 MISCELLANEOUS - OTHER Total General Fund $ 6,893,649 $ 7,551,718 $ 7,579,967

* Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year.

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 117

SCHEDULE C Page 301 of 324 TOWN OF CAVE CREEK Revenues Other Than Property Taxes Fiscal Year 2019

ESTIMATED AC T U AL ESTIMATED REVENUES REVENUES* REVENUES SOURCE OF REVENUES 2018 2018 2019 SPECIAL REVENUE FUNDS HIGHWAY USER REVENUE FUND HIGHWAY USER TAX $ 347,178 $ 347,178 $ 344,035

$ 347,178 $ 347,178 $ 344,035 SEWER IMPROVEMENT DISTRICT #2 BILLINGS TO PROPERTY OWNERS $ 5,000 $ 2,500 $ 2,500 $ 5,000 $ 2,500 $ 2,500 SPUR CROSS (Conservation & Acq) 1/2 CENTS SALES TAX DEDICATION $ 900,000 $ 901,700 $ 931,500 SPUR CROSS ID CARDS 250 600 600 $ 900,250 $ 902,300 $ 932,100 GRANT FUND LTAF II $ 17,000 $ 17,000 $ 18,000 MISCELLANEOUS OTHER 590,000 500,000 COMMUNITY GRANTS 140,000 $ 607,000 $ 17,000 $ 658,000 OPEN SPACE ACQUISITION INTEREST INCOME $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 PARKS & TRAILS DEV FEE - PARKS & TRAILS $ 6,000 $ 7,000 $ 18,600 INTEREST INCOME 20 20 100 $ 6,020 $ 7,020 $ 18,700

TRAILS INTEREST INCOME$50$50$50 $50$50$50 Total Special Revenue Funds $ 1,865,998 $ 1,276,548 $ 1,955,885

* Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year.

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 118

SCHEDULE C Page 302 of 324 TOWN OF CAVE CREEK Revenues Other Than Property Taxes Fiscal Year 2019

ESTIMATED AC T U AL ESTIMATED REVENUES REVENUES* REVENUES SOURCE OF REVENUES 2018 2018 2019 DEBT SERVICE FUNDS TOWN HALL DEBT SERVICE FUND DEVELOPMENT FEE-PUBLIC BLDG $ 9,000 $ 13,000 $ 15,600

$ 9,000 $ 13,000 $ 15,600

$$$

$$$

Total Debt Service Funds $ 9,000 $ 13,000 $ 15,600 CAPITAL PROJECTS FUNDS OPEN SPACE & TRAILS INTEREST INCOME $ 300 $ 300 $ 300

$ 300 $ 300 $ 300 WATER INFRASTRUCTURE INTEREST INCOME $ $ 200 $ 200

$ $ 200 $ 200

Total Capital Projects Funds $ 300 $ 500 $ 500

* Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year.

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 119

SCHEDULE C Page 303 of 324 TOWN OF CAVE CREEK Revenues Other Than Property Taxes Fiscal Year 2019

ESTIMATED AC T U AL ESTIMATED REVENUES REVENUES* REVENUES SOURCE OF REVENUES 2018 2018 2019 ENTERPRISE FUNDS CAVE CREEK WATER SYSTEM BULK WATER SALES $ 595,000 $ 500,000 $ 550,000 CAPACITY CHARGE 196,000 194,000 354,400 WATER CONNECTION FEE 3,255 1,200 3,255 WATER USEAGE FEE 3,995,250 3,930,000 4,076,050 WATER USEAGE PENALTY 10,500 10,725 10,500 ADEQ WATER CONSUMPTION TAX 2,600 WATER ESTABLISHMENT FEE 4,410 4,960 4,525 METER SET FEE 7,350 7,500 7,350 WATER SERVICE FEE 34,650 $ 4,849,015 $ 4,648,385 $ 5,006,080 DESERT HILLS WATER SYSTEM CAPACITY CHARGE $ 89,400 $ $ 95,000 WATER CONNECTION FEE 1,890 2,300 2,300 INTEREST INCOME SALE OF TOWN PROPERTY WATER USEAGE FEE 2,261,700 2,257,000 2,312,600 WATER USEAGE PENALTY 8,400 8,400 8,400 ADEQ WATER CONSUMPTION TAX 1,200 WATER ESTABLISHMENT FEE 2,520 2,600 2,600 METER SET FEE 3,150 3,000 3,150 WATER SERVICE FEE

$ 2,368,260 $ 2,273,300 $ 2,424,050 WASTEWATER TREATMENT 1/2 CENTS SALES TAX DEDICATION $ 900,000 $ 913,800 $ 931,500 SEWER USER FEES 493,500 504,000 587,800 SEWER BILLING ADMIN FEE 15,750 16,000 15,750 SEWER BOD/TSS FEES 7,875 7,875 BULK WATER SALES 21,000 21,000 CAPACITY CHARGE 275,000 140,000 414,000 WASTEWATER CONNECTION FEE 52,500 20,000 52,500 $ 1,765,625 $ 1,593,800 $ 2,030,425

Total Enterprise Funds $ 8,982,900 $ 8,515,485 $ 9,460,555

TOTAL ALL FUNDS $ 17,751,847 $ 17,357,251 $ 19,012,507

* Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year.

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 120

SCHEDULE C SCHEDULE C Page 304 of 324 TOWN OF CAVE CREEK Other Financing Sources/ and Interfund Transfers Fiscal Year 2019 OTHER FINANCING INTERFUND TRANSFERS 2019 2019 FUND SOURCES IN GENERAL FUND Open Space & Trails $ $ $ $ Town Hall Debt Service 165,600 Cave Creek Water Enterprise Fund 2,660,000 Desert Hills Water Enterprise Fund Wastewater Treatment Enterprise Fund 5,740,000 Spur Cross Conservation 328,485 Sewer Imrprovement District #2 2,500 Total General Fund $ $ $ 330,985 $ 8,565,600 SPECIAL REVENUE FUNDS Spur Cross Conservation (to GF) $ $ $ $ 328,485 Spur Cross Conservation (to WIFC) 328,485 Spur Cross Conservation (to Trails) 100,000 Trails 100,000 Open Space Acquisition Sewer Imrprovement District #2 2,500 Total Special Revenue Funds $ $ $ 100,000 $ 759,469 DEBT SERVICE FUNDS Town Hall Debt Service $ $ $ 165,600 $

Total Debt Service Funds $ $ $ 165,600 $ CAPITAL PROJECTS FUNDS Water Infrastructure Capital $ $ $ 328,485 $

Total Capital Projects Funds $ $ $ 328,485 $ PERMANENT FUNDS $$$$

Total Permanent Funds $$$$ ENTERPRISE FUNDS General Fund to Cave Creek Water $ $ $ 2,660,000 $ General Fund to Desert Hills Water General Fund to Wastewater 5,740,000 Total Enterprise Funds $ $ $ 8,400,000 $ INTERNAL SERVICE FUNDS $$$$

Total Internal Service Funds $$$$

TOTAL ALL FUNDS $ $ $ 9,325,069 $ 9,325,069

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 121

SCHEDULE D Page 305 of 324 TOWN OF CAVE CREEK Expenditures/Expenses by Fund Fiscal Year 2019

AD O PT ED EXPENDITURE/ BUDGETED EXPENSE AC T U AL BUDGETED EXPENDITURES/ ADJUSTMENTS EXPENDITURES/ EXPENDITURES/ EXPENSES APPROVED EXPENSES* EXPENSES FUND/DEPARTMENT 2018 2018 2018 2019 GENERAL FUND Town Manager's Office $ 356,650 $ $ 286,507 $ 364,750 Administration 770,855 652,168 776,000 Legal Services 168,000 168,000 228,000 Planning, Zoning, & Econ Dev 548,700 494,496 521,600 Building & Fire Safety 1,074,700 855,794 922,700 Municipal Court 162,900 159,100 172,100 Law Enforcement 635,300 617,486 701,500 Finance 441,100 401,212 408,150 Town Council 49,000 24,760 47,000 Contingency 448,400 617,000 Public Works 1,157,053 989,474 1,569,104 Special Events 205,000 95,589 123,800

Total General Fund $ 6,017,658 $ $ 4,744,585 $ 6,451,704 SPECIAL REVENUE FUNDS HURF $ 347,178 $ $ 355,876 $ 344,035 Spur Cross (Conservation & Acq) 266,000 216,000 216,000 Grant Funds 617,000 17,000 658,000 Parks & Trails 22,951 30,000 Trails 100,000 15,000 185,100 Total Special Revenue Funds $ 1,353,129 $ $ 603,876 $ 1,433,135 DEBT SERVICE FUNDS Town Hall Debt Service $ 176,044 $ $ 176,044 $ 181,200

Total Debt Service Funds $ 176,044 $ $ 176,044 $ 181,200 CAPITAL PROJECTS FUNDS Open Space & Trails 114,152 16,573 70,000 Water Infrastructure Capital 349,778 1,030,353

Total Capital Projects Funds $ 463,930 $ $ 16,573 $ 1,100,353 ENTERPRISE FUNDS Cave Creek Water System $ 10,291,917 $ $ 4,600,180 $ 6,184,898 Desert Hills Water System 1,857,879 2,667,100 Wastewater Treatment 2,906,180 3,434,200 Total Enterprise Funds $ 10,291,917 $ $ 9,364,239 $ 12,286,198 TOTAL ALL FUNDS $ 18,302,678 $ $ 14,905,317 $ 21,452,589

* Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year.

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 122

SCHEDULE E Page 306 of 324

TOWN OF CAVE CREEK Full-Time Employees and Personnel Compensation Fiscal Year 2019

Employee Total Estimated Full-Time Salaries and Other Benefit Personnel Equivalent (FTE) Hourly Costs Retirement Costs Healthcare Costs Costs Compensation FUND 2019 2019 2019 2019 2019 2019

GENERAL FUND 25.3 $ 1,849,221 $ 356,200 $ 409,700 $ 49,900 = $ 2,665,021

SPECIAL REVENUE FUNDS $$$$=$

SCHEDULE Total Special Revenue Funds $$$$=$

DEBT SERVICE FUNDS $$$$=$

G

Total Debt Service Funds $$$$=$

CAPITAL PROJECTS FUNDS $$$$=$

Total Capital Projects Funds $$$$=$ Page 307 of324 ENTERPRISE FUNDS Cave Creek Water System 9.0 $ 675,400 $ 128,600 $ 155,900 $ 19,900 = $ 979,800 Desert Hills Water System 5 370,300 71,400 99,600 6,100 547,400 Wastewater Treatment 3 197,400 37,100 32,900 5,300 272,700 Total Enterprise Funds 16.8 $ 1,243,100 $ 237,100 $ 288,400 $ 31,300 = $ 1,799,900

TOTAL ALL FUNDS 42.05 $ 3,092,321 $ 593,300 $ 698,100 $ 81,200 = $ 4,464,921 123

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 123

APPENDIX B

Town of Cave Creek FY 2019 Positions and Salary Ranges

SALARY RANGE DEPARTMENT POSITION FTE'S BEGINNING MEDIAN END ADMINISTRATION Administrative Assistant 30,645.76 45,563.89 60,482.01 1 ADMINISTRATION Deputy Town Clerk 52,172.40 77,569.57 102,966.73 1 ADMINISTRATION IT Coordinator 52,172.40 77,569.57 102,966.73 1 BUILDING AND FIRE SAFETY Building Inspector 39,985.81 59,450.63 78,915.44 1 BUILDING AND FIRE SAFETY Building Official & Fire Official 68,207.25 101,410.10 134,612.95 1 BUILDING AND FIRE SAFETY Permit Technician 39,985.81 59,450.63 78,915.44 1 BUILDING AND FIRE SAFETY Plans Examiner 39,985.81 59,450.63 78,915.44 1 BUILDING AND FIRE SAFETY Facilities Maintenance Worker Lead 30,645.76 45,563.89 60,482.01 1 BUILDING AND FIRE SAFETY Facilities Maintenance Worker 30,645.76 45,563.89 60,482.01 1 ENGINEERING Town Engineer 68,207.25 101,410.10 134,612.95 1 FINANCE Accounting Specialist 39,985.81 59,450.63 78,915.44 1 FINANCE Finance Director 68,207.25 101,410.10 134,612.95 FINANCE Senior Accountant 52,172.40 77,569.57 102,966.73 1 LAW ENFORCEMENT Town Marshal 68,207.25 101,410.10 134,612.95 1 P&Z Assistant Planner 39,985.81 59,450.63 78,915.44 1 P&Z Community Outreach Coordinator 30,645.76 45,563.89 60,482.01 0.4 P&Z Director of Planning 68,207.25 101,410.10 134,612.95 1 P&Z Intern 23,487.68 34,921.32 46,354.96 0.15 P&Z Planner 39,985.81 59,450.63 78,915.44 1 P&Z Senior Planner 52,172.40 77,569.57 102,966.73 1 PUBLIC WORKS Public Works Supervisor 39,985.81 59,450.63 78,915.44 1 PUBLIC WORKS Public Works Worker 30,645.76 45,563.89 60,482.01 4 SPECIAL EVENTS Seasonal/Temporary Worker 23,487.68 34,921.32 46,354.96 0.5 TOWN MANAGER Executive Assistant 39,985.81 59,450.63 78,915.44 1 TOWN MANAGER Town Manager/Town Clerk N/A N/A 151,557.00 1 UTILITIES Distribution System Supervisor 39,985.81 59,450.63 78,915.44 1 UTILITIES Regulatory Compliance Analyst 30,645.76 45,563.89 60,482.01 1 UTILITIES Utilities Mechanic 39,985.81 59,450.63 78,915.44 2 UTILITIES Utilities Technician 39,985.81 59,450.63 78,915.44 1 UTILITIES Utilities Worker 30,645.76 45,563.89 60,482.01 3 UTILITIES Utility Billing Specialist 30,645.76 45,563.89 60,482.01 2 UTILITIES Utility Director 68,207.25 101,410.10 134,612.95 1 UTILITIES Water Plant Operator 39,985.81 59,450.63 78,915.44 4 UTILITIES Water Plant Supervisor 39,985.81 59,450.63 78,915.44 1 UTILITIES WWTP Operator 39,985.81 59,450.63 78,915.44 1

Town of Cave Creek FY 2019 Annual Budget‐Proposed Final 124

Page 308 of 324 Page 309 of324

1 Prepared by: Finance Department, July 24, 2018 PRELIMINARY FINANCIAL RESULTS

• Preliminary results of operations: • Preliminary results for July through June of Fiscal Year 2017 compared to July through June of Fiscal Year 2018 and Fiscal Year 2018 budget on cash basis. • Other items: • Debt Service • Cash balance • Financial Projection Page 310 of324

2 Prepared by: Finance Department Town of Cave Creek Governmental Funds Preliminary Results of Operations1 July ‐ Junw Fiscal Year Comparisons (Cash Basis)

FY 2017 FY 2018 FY 2018 Actual Actual Budget % of Budget Total Revenues1 $ 8,724,266 $ 9,788,641 $ 8,778,947 112% Total Expenditures1 5,109,367 5,467,367 8,010,761 68% Net $ 3,614,899 $ 4,321,274 $ 768,186

Note: 100% of the year completed. 1Not including transfers. Unaudited. Page 311 of324

3 Prepared by: Finance Department Town of Cave Creek Governmental Funds Preliminary Results of Operations1 July ‐ June Fiscal Year Comparisons (Cash Basis)

FY 2017 FY 2018 FY 2018 Actual Actual Budget % of Budget Revenues1: Taxes $ 5,953,520 $ 6,605,321 $ 5,320,000 124% Intergovernmental 1,712,917 1,826,042 2,368,640 77% Fines and forfeitures 353 ‐ ‐ #DIV/0! Licenses and permits 514,355 529,901 521,537 102% Charges for services 216,167 431,998 181,400 238% Rents and royalties 123,353 136,415 141,500 96% Contributions and donations 17,990 32,427 15,000 216% Special assessments 1,993 ‐ 5,000 0% Interest 55,026 26,227 30,870 85% Other 128,593 200,311 195,000 103% Total $ 8,724,267 $ 9,788,642 $ 8,778,947 112% Page 312 of324

Note: 100% of the year completed. 1Not including transfers. Unaudited.

4 Prepared by: Finance Department Town of Cave Creek Governmental Funds Preliminary Results of Operations1 July ‐ June Fiscal Year Comparisons (Cash Basisl)

FY 2017 FY 2018 FY 2018 Actual Actual Budget % of Budget Expenditures: General Government $ 2,726,340 $ 3,049,978 $ 4,093,256 75% Public Safety 646,812 630,073 635,300 99% Highways and streets 1,213,791 1,281,842 2,571,009 50% Culture and Recreation 294,178 311,255 421,000 74% Capital Outlay 56,253 20,481 114,152 18% Debt Service: Principal Retirement 145,000 155,000 155,000 100% Interest on long‐term debt 26,993 18,739 21,044 89% Total $ 5,109,367 $ 5,467,367 $ 8,010,761 68% Page 313 of324

Note: 100% of the year completed. 1Not including transfers. Unaudited.

5 Prepared by: Finance Department Enterprise Fund Preliminary Results of Operations July ‐ June Fiscal Year Comparisons (Cash Basis2)

FY 2017 FY 2018 FY 2018 Actual Actual Budget % of Budget Revenues:1,2 Fines, fees and charges for services $ 7,550,226 $ 7,841,476 $ 8,082,900 97% Sales Tax 940,064 1,020,620 900,000 113% Interest ‐ ‐ (5,000) 0% Other 3,325 ‐9,797 #DIV/0! Total 8,525,720 8,871,893 8,977,900 99%

Expenses:1,2 Wastewater treatment 2,304,634 1,609,110 3,109,250 52% Water 4,948,260 4,845,437 7,182,667 67% Total 7,252,894 6,454,547 10,291,917 63% Net $ 1,272,826 $ 2,417,346 $ (1,314,017) Page 314 of324

Note: 100% of the year completed. 1Not including transfers. Unaudited. 2Includes Ca pi ta l Outlay. Does not include debt service principal and excludes depreciation.

6 Prepared by: Finance Department Town of Cave Creek Enterprise Fund Preliminary Results of Operations July ‐ June Fiscal Year Comparisons (Cash Basis1,2,3)

FY 2017 FY 2018 FY 2018 Actual Actual Budget % of Budget Expenses:1,3 Wastewater treatment: Salaries and Wages $ 468,939 $ 302,222 $ 276,900 109% Services 1,504,859 941,698 2,507,600 38% Materials and Supplies 318,337 355,353 210,250 169% Capital 12,499 9,837 114,500 9% Subtotal 2,304,634 1,609,110 3,109,250 52%

Water: Salaries and Wages 846,009 1,147,708 1,263,500 91% Services 3,324,414 2,516,435 4,437,500 57% Materials and Supplies 731,590 760,982 739,200 103% Capital 46,247 420,312 742,467 57% Subtotal 4,948,260 4,845,437 7,182,667 67%

Page 315 of324 Total $ 7,252,894 $ 6,454,547 $ 10,291,917

Debt Service Payment Due 1/2/2018 $ 745,180 Debt Service Payment Due 7/1/2018 $ 4,123,747 Note: 100% of the year completed. 1 Unaudited. 2 Not including operating reserves, transfers or bond proceeds. 3 Includes Ca pi ta l Outlay. Does not include debt service principal payments and excludes depreciation. 7 Prepared by: Finance Department Town of Cave Creek Enterprise Fund Preliminary Results of Operations July ‐ June Fiscal Year Comparisons (Cash Basis1,2)

FY 2017 FY 2018 FY 2018 Actual Actual Budget % of Budget Wastewater Treatment: Revenues:1,2 Fines, fees and charges for services $ 769,875 $ 728,388 $ 865,625 84% Sales Tax 940,064 1,020,620 900,000 113% Other (3,040) ‐(170) #DIV/0! Total Wastewater 1,706,899 1,748,838 1,765,625 99%

Water: Revenues:1,2 Fines, fees and charges for services 6,780,351 7,113,088 7,217,275 99% Other 6,365 ‐9,967 #DIV/0! Total Water 6,818,821 7,123,055 7,217,275 99%

Page 316 of324 Total $ 8,525,720 $ 8,871,893 $ 8,982,900

Note: 100% of the year completed. 1Unaudited. 2Not including operating reserves, transfers or bond proceeds.

8 Prepared by: Finance Department Debt Service Payments

Governmental Utility Total 1/2/2018$ 84,200 $ 745,180 $ 829,380

7/1/2018 89,044 4,123,747 4,212,791 Total $ 173,244 $ 4,868,927 $ 5,042,171 Page 317 of324

9 Prepared by: Finance Department Cash Balance

6/30/2018 Total Cash and Cash Equivalents$ 20,268,997 LGIP ‐ Debt Service Reserves* (6,286,349) Available for expenditure 13,982,648 * Set aside for WIFA loan covenants Page 318 of324

10 Prepared by: Finance Department FINANCIAL PROJECTIONS

TOWN OF CAVE CREEK CASH FLOW ANALYSIS FY 2018 6/30/2013 7/31/2017 8/31/2017 9/30/2017 10/31/2017 11/30/2017 12/31/2017 1/31/2018 2/28/2018 3/31/2018 4/30/2018 5/31/2018 6/30/2018 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN Beginning Actual Cash Balance $ 16,063,937 $ 12,398,930 $ 13,313,761 $ 13,952,849 $ 14,858,310 $ 15,177,434 $ 15,907,541 $ 16,291,828 $ 17,215,685 $ 17,408,791 $ 18,642,031 $ 19,168,100

Cash Flow Actual: Revenues 1,661,120 1,567,210 1,370,772 1,707,487 1,165,085 1,370,135 1,687,863 1,552,239 1,577,818 1,827,844 1,447,760 1,725,201 Expenditures (758,082) (564,805) (641,151) (785,324) (934,168) (836,583) (1,530,530) (687,127) (944,936) (730,165) (1,446,433) (2,456,248) Changes in Assets2 (194,532) 151,518 1,173 (2,740) 61,802 28,872 42,741 (2,113) 11,532 (38,443) (45,629) (40,452) Changes in Liabilities (4,373,514) (239,091) (91,706) (13,963) 26,405 167,683 184,212 60,858 (451,308) 174,005 570,370 1,711,819 Cash Flow (3,665,008) 914,832 639,088 905,461 319,124 730,108 384,287 923,857 193,105 1,233,241 526,068 940,319

Ending Actual Cash Balance $ 12,398,930 $ 13,313,761 $ 13,952,849 $ 14,858,310 $ 15,177,434 $ 15,907,541 $ 16,291,828 $ 17,215,685 $ 17,408,791 $ 18,642,031 $ 19,168,100 $ 20,108,419

Cash Flow Projected: Revenues Expenditures1 Changes in Assets2 Changes in Liabilities ‐ Cash Flow ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Projected Ending Cash Balance $ 12,398,930 $ 13,313,761 $ 13,952,849 $ 14,858,310 $ 15,177,434 $ 15,907,541 $ 16,291,828 $ 17,215,685 $ 17,408,791 $ 18,642,031 $ 19,168,100 $ 20,108,419 Page 319 of324

11 FINANCIAL PROJECTIONS

Cash Requirements: Debt Service Reserve$ 4,885,700 $ 4,885,700 $ 4,885,700 $ 4,885,700 $ 4,885,700 $ 4,885,700 $ 4,885,700 $ 4,885,700 $ 4,885,700 $ 4,885,700 $ 4,885,700 $ 4,885,700 Repair and Replacement Reserve 1,400,649 1,400,649 1,400,649 1,400,649 1,400,649 1,400,649 1,400,649 1,400,649 1,400,649 1,400,649 1,400,649 1,400,649 Unexpended Impact Fees 103,880 103,880 103,880 103,880 103,880 103,880 103,880 103,880 103,880 103,880 103,880 103,880 Trails 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 200,000 Water Infrastructure 349,778 349,778 349,778 349,778 349,778 349,778 349,778 349,778 349,778 349,778 349,778 699,452 Spur Cross Restricted 4 215,348 272,348 329,348 386,348 443,348 500,348 557,348 614,348 671,348 728,348 785,348 ‐ Open Space Acquisition4 1,722,105 1,723,827 1,725,551 1,727,276 1,729,004 1,730,733 1,732,463 1,734,196 1,735,930 1,737,666 1,739,404 1,741,143 Operating Reserves 5 Needed for Next Debt Svc Pmt$ 829,380 $ 829,380 $ 829,380 $ 829,380 $ 829,380 $ 829,380 $ 4,212,791 $ 4,212,791 $ 4,212,791 $ 4,212,791 $ 4,212,791 $ 4,212,791 Total Required$ 9,606,840 $ 9,665,562 $ 9,724,286 $ 9,783,011 $ 9,841,739 $ 9,900,468 $ 13,342,609 $ 13,401,342 $ 13,460,076 $ 13,518,812 $ 13,577,550 $ 13,243,615

Unrestricted Cash Carry Forward$ 2,792,090 $ 3,648,199 $ 4,228,563 $ 5,075,298 $ 5,335,695 $ 6,007,073 $ 2,949,219 $ 3,814,343 $ 3,948,715 $ 5,123,219 $ 5,590,550 $ 6,864,804 Page 320 of324

12

ACTION ITEM REQUEST

TO: Carrie Dyrek, Town Manager; Mayor and Council

FROM: James Kaylor, Director of Utilities

DATE: July 24, 2018

SUBJECT: Water Treatment Filters Media Replacement Capital Project –Town of Cave Creek Water Treatment Facility

REQUEST FOR COUNCIL ACTION: Town Council Motion to Approve the following expenditure(s):

PROJECT TASK COST

Media Replacement Material $68,133.00

Package (Mobile) Water Treatment Plant 146,000.00

Remove old and Install new Media 65,046.41

TOTAL PROJECT COST $279,179.41

SUMMARY: The Water Treatment plant has four mixed media filters which have been in service for over 20 years. Repair of the four filters was planned and budgeted over two years with an estimated total budget of $400,000. The planned major maintenance would restore the filter media to original specifications.

The original plan was to spread the expense over two separate years by completing media removal and replacement and associated repairs to two of the filters during the fall of 2018 and to the remaining two

T:\Town Clerk\Agendas\2018 Council Agendas WORD\Town of Cave Creek Filter Media Rehab Project rev442.doc Page 321 of 324 filters in the fall of 2019. To prepare for this project, Town staff contracted with the manufacturer of the filters, Westech Engineering, to complete an onsite analysis of each of the four filters. The objective of the analysis was to arrive at a complete inventory of the needed repairs and associated cost for all four operating filters.

Westech arrived for a three day evaluation of the facilities on July 10, 2018 and commenced their inspection of all four filters. Their initial task was to evaluate the condition of the filter media in all filters and make recommendations on filter media condition and the need for replacement. The onsite analysis confirmed that the media in three of the filters required complete media replacement and the fourth and largest filter required the addition of 18 inches of anthracite. Westech estimated that the filter repair and media replacement process would require approximately 8 days per filter or a total of 24 days.

It is Town staff’s and Westech’s recommendation that the Town complete the full project this year beginning immediately. Staff believes there will be cost savings in completing the project in one step (year) rather than performing the project process twice over two years. The size of the effort to achieve completion of the project in FY2019 will require bringing in a Mobil Water Treatment Plant to provide assurance for the quality and quantity of water production during the project; see the explanation below on Mobile Water Treatment Units.

Mobile Water Treatment: Mobile trailer-mounted water production units are available from various suppliers in the United States. All mobile units used for the production of potable water are required to be NSF certified to meet all public health and safety standards for the production of potable water. The following suppliers of mobile water treatment units were contacted:

PROVIDER INFORMATION

Pall Water All units are NSF certified. No units available until September-2018. Multi-month lease required. Typical cost is $40,000-50,000 per month.

Suez Water One unit is available but remedial maintenance would be required to meet NSF Technologies certification levels. The unit had been used in an industrial application. Typical Cost - $40,000-50,000 per month. Multi-month lease required.

Westech One NSF Certified unit is immediately available. Monthly Cost $50,000.

The Westech Engineering unit provides two months water production and a competitive cost for start-up services and optimization once the unit arrives in Cave Creek. The total cost for the mobile unit is $146,000 which includes transportation to and from the current location of the mobile unit as well as start-up services and two personnel on site for the initial five days of the mobile unit operation.

T:\Town Clerk\Agendas\2018 Council Agendas WORD\Town of Cave Creek Filter Media Rehab Project rev442.doc Page 322 of 324 Cost for Installation of the Filter Media: The timeline of the project and volume of media required for the rehabilitation of all filter media requires that a contractor be retained for this process. Filter media replacement is very labor intensive and it is imperative that the contractor has expertise in this process to successfully complete the various installation steps required. Three companies were contacted with request to submit complete proposals for the installation of all media in the treatment plant filters:

CONTRACTOR PROPOSAL BID

Felix Construction Performed site visit; declined to bid. $0.00

MGC Construction Performed site visit; Provided bid. 65,046.41

MP Environmental Performed site visit; Company provide a bid of $16,927 to remove the media in all three filters. A daily rate of $4,985 was provided to load the media in each filter but the company declined to provide a total “Not to Exceed” cost for the media removal and installation. Bid did not meet the requirements to provide a total cost for all work. See Proposal Comment

FINANCIAL IMPLICATIONS: The actual total cost of the project is $279,179.41 and this project will result in all four filters being returned to original factory specifications. Below is the Account and Budget Analysis:

ACCOUNT ACCOUNT CODE BUDGET

Cave Creek Water Enterprise Maintenance 50-050100-2080 $450,000

Water Infrastructure CIP Fund 30-100100-4100 1,030,353

Total Available Budgeted Funds $1,480,353

$200,000 of the $279,179.41 is budgeted for in the Cave Creek water system maintenance (50-050100- 2080). The remaining $79,179.41 will be covered from the savings in the Water Infrastructure Capital Improvement fund which includes the CAP 1 Pump Station Upgrade Project now estimated to cost only $275,000 (30-100100-4100). The additional $79,179.41 may require a budget transfer from the Water

T:\Town Clerk\Agendas\2018 Council Agendas WORD\Town of Cave Creek Filter Media Rehab Project rev442.doc Page 323 of 324 Infrastructure Capital Improvement fund to the Cave Creek Water System, but only if needed at the close of the fiscal year.

Currently, the existing filter media requires that approximately 8% of all daily water produced be used in the backwash process. Following the filter rehabilitation project only 2-3% of the daily water will be required for backwashing. Filter run hours will be extended from 20 to 24 hours up to 48 to 70 hours with the resulting decrease in power required for backwashing and the reclamation of backwash water. Completion of the project at this time will result in a savings of approximately $121,000 over the original budget amount.

ALTERNATIVES: Deny staff’s recommendation however the existing filter media has never been replaced and eventually efficiencies will decrease resulting in available filter run times less than 10 hours.

T:\Town Clerk\Agendas\2018 Council Agendas WORD\Town of Cave Creek Filter Media Rehab Project rev442.doc Page 324 of 324