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Informal Meeting Minutes Monday, June 19, 2017 Board Members 10:00 AM Denny Barney, Chairman, District 1 Steve Chucri, Vice Chairman, District 2 BOARD OF SUPERVISORS Bill Gates, District 3 Maricopa County, Arizona Clint Hickman, District 4 (and the Boards of Directors of the Flood Control District, Steve Gallardo, District 5 Library District, Stadium District, Improvement Districts, and/or Board of Deposit) County Manager Joy Rich "The mission of Maricopa County is to Clerk of the Board provide regional leadership and fiscally Fran McCarroll responsible, necessary public services to its residents so they can enjoy living in healthy and safe communities.” Meeting Location Supervisors'/Sullivan Conference Room 301 W. Jefferson, 10th Floor Phoenix, AZ 85003 BOARD OF SUPERVISORS, IMPROVEMENT DISTRICTS, FLOOD CONTROL DISTRICT, LIBRARY DISTRICT, AND STADIUM DISTRICT The Board of Supervisors, Improvement Districts, Flood Control District, Library District and Stadium District of Maricopa County, Phoenix, Arizona, convened concurrently in Informal Session at 10:00 AM on Monday, June 19, 2017, in the Supervisors'/Sullivan Conference Room, 301 W. Jefferson, 10th Floor, Phoenix, AZ 85003, with the following members present: Denny Barney, Chairman, District 1; Steve Chucri, Vice Chairman, District 2 (via phone); Bill Gates, District 3; Clint Hickman, District 4; Steve Gallardo, District 5. Also present: Fran McCarroll, Clerk of the Board; Maria Ceaglske, Minutes Coordinator; Joy Rich, County Manager; and Steve Goodrich, Legal Counsel. Chairman Barney noted that this Meeting was concurrent meetings for the Board of Supervisors, Improvement Districts, the Flood Control, Library and Stadium Districts. PRESENTATION AND HEARINGS Management and Budget 1. PRESENTATION AND PUBLIC HEARING ON THE MARICOPA COUNTY FY 2018 BUDGET Presentation regarding the Maricopa County Budget for FY 2018. Cynthia Goelz, Budget Director Brian Hushek, Deputy Budget Director Convene a public hearing, pursuant to A.R.S. §42-17104 and A.R.S. §42-17105, to hear taxpayers who may wish to comment on the FY 2018 Tentative Budget which was adopted May 22, 2017, the proposed tax levy, and on any proposed changes to the Tentative Budget. The changes result in a reduction of $4,246,386 from the Tentative Budget of $2,494,333,805. (C- 49-17-041-7-00) Informal Meeting Minutes Monday, June 19, 2017 Page 2 of 36 Cynthia Goelz, Budget Director reviewed the following changes from the tentative to proposed adopted budget: Ms. Goelz noted there are four categories that will be presented separately: contingency adjustments, reallocations between departments, reallocations between funds and reallocations between projects. Category 1 – Contingency Adjustments were presented with the following information and she explained each adjustment as noted in the left column: Informal Meeting Minutes Monday, June 19, 2017 Page 3 of 36 Additional explaination of adjustments were made for the following Detention Fund Adjustments for Reduction in Mesa Jail Per Diem Revenue: Chairman Barney noted this adjustment is for the phase-in of moving the misdemeanor piece to the privatized system for the City of Mesa. The actual amount is higher than what is noted but this is based on transitioning into the change. The Board will continue to work with the Sheriff’s Department to monitor this change. Supervisor Gallardo questioned how long the transition period will be and asked when the Board would know of the total impact. Chairman Barney responded that the total impact is estimated to be $5.5 million dollars and it is just a question as to how quickly some of the inmates will get through the system. Most will be out within a few months, but the financial impact will be lower for those who linger in the system. So within a few months it will begin to normalize and the Board will see the full impact in FY 2019. Ms. Goelz stated it will be monitored throughout the year and there is no definitive time as to when the new normal will take place. If the $4.2 million is not enough then another adjustment request will be requested. Chairman Barney stated there are meetings set up regarding the transition and he suggested that the Board or their staff should be present. There will be stakeholders and other law enforcement agencies present as well to discuss the transition. Supervisor Gallardo noted his concern within his District is the $4 million impact and concern that the cost will be passed along to the municipalities. Chairman Barney responded that some of the costs will be passed to the municipalities. Mesa will be picking up a fixed cost with managing the jail. The reality is that there will be cost shifts and the County is looking at additional efficiencies to lower the overall cost. He noted the new Intake, Transfer and Release (ITR) facility will help with significant savings over time. Ms. Goelz stated that the County will continue to take the felony cases. Chairman Barney explained the new ITR facility will have efficiencies and will replace the old Durango jail which, in part, will respond to the caseload issue. The general fund will be effected because of the additional maintenance-of-effort costs that are not going to be funded through revenue that comes from municipal partners. Informal Meeting Minutes Monday, June 19, 2017 Page 4 of 36 Ms. Goelz reviewed the following Reallocations Between Departments: Ms. Goelz reviewed the following Reallocation Between Funds: She explained that the reallocation is through the Sheriff’s Office as they distribute their administrative costs between the general and detention funds. After the tentative budget was adopted the formulas were reviewed for both funds. Ms. Goelz reviewed the following Reallocation Between Projects: She explained that the new Southwest Justice Center project saved about $7.9 million, and of that, $3.3 million will be used to buildout space for the Professional Standards Bureau. This is necessary in order for the County to be in compliance with the Melendres order. Informal Meeting Minutes Monday, June 19, 2017 Page 5 of 36 Ms. Goelz noted the following Proposed Final Budget: Chairman Barney noted the $3.3 million used for the Professional Standards Bureau pertains to the Melendres order compliance and the County is trying to manage that carefully by investing in space that the County can reasonably use. Supervisor Gallardo stated the $3.3 million is just a portion of the total cost for the Melendres order compliance. Chairman Barney said the total amount for compliance depends on the Melendres order monitor’s requirements, and making the space so it can be transitioned easily to another space later. 2. PUBLIC HEARING ON COUNTY IMPROVEMENT DISTRICTS FY 2018 BUDGETS Convene a public hearing, pursuant to A.R.S. §48-954 to hear taxpayers who may wish to comment on the FY 2018 County Improvement Districts Tentative Budgets which were adopted May 22, 2017, or on any proposed changes. (C-49-17-043-7-00) Ms. Goelz stated there are no changes to the FY 2018 County Improvement Districts Tentative Budgets. 3. PRESENTATION AND PUBLIC HEARING ON THE FLOOD CONTROL DISTRICT FY 2018 BUDGET Presentation regarding the Flood Control District 2018 Budget: Cynthia Goelz, Budget Director Brian Hushek, Deputy Budget Director Convene a public hearing to hear taxpayers who may wish to comment on the FY 2018 Flood Control District Tentative Budget which was adopted May 22, 2017, the proposed tax levy, or on any proposed changes to the Tentative Budget. The budget was increased by $163,167 from the Tentative Budget of $88,510,942 for IT infrastructure upgrades to a total of $88,674,109. (C-49-17-048-7-00) Informal Meeting Minutes Monday, June 19, 2017 Page 6 of 36 Brian Hushek, Deputy Budget Director, presented the Flood Control District proposed adopted budget: 4. PRESENTATION AND PUBLIC HEARING ON THE LIBRARY DISTRICT FY 2018 BUDGET Presentation regarding the Library District FY 2018 Budget: Cynthia Goelz, Budget Director Brian Hushek, Deputy Budget Director Convene a public hearing to hear taxpayers who may wish to comment on the FY 2018 Library District Tentative Budget which was adopted May 22, 2017, the proposed tax levy or on any proposed changes to the Tentative Budget. There were no changes from the Tentative Budget of $28,620,825. (C-49-17-044-7-00) Brian Hushek, Deputy Budget Director, presented the Library District proposed adopted budget which has no changes: Informal Meeting Minutes Monday, June 19, 2017 Page 7 of 36 5. PRESENTATION AND PUBLIC HEARING ON THE STADIUM DISTRICT FY 2018 BUDGET Presentation regarding the Stadium District FY 2018 Budget: Cynthia Goelz, Budget Director Brian Hushek, Deputy Budget Director Convene a public hearing, pursuant to A.R.S. §48-252 and §48-4232 to hear taxpayers who may wish to comment on the FY 2018 Stadium District Tentative Budget which was adopted May 22, 2017, or on any proposed changes. There were no changes from the Tentative Budget of $10,289,411. (C-49-17-047-7-00) Brian Hushek, Deputy Budget Director, presented the Stadium District proposed adopted budget which has no changes: MEETING ADJOURNED/RECESSED Chairman Barney adjourned as the Board of Directors of the Maricopa County Improvement and Stadium Districts. He then recessed the Boards of Directors of the Maricopa County Flood Control and Library Districts. BOARD OF SUPERVISORS ACTION 1. MARICOPA COUNTY TRUTH-IN-TAXATION HEARING AND ACTION 1) Convene a Truth-in-Taxation hearing, pursuant to A.R.S. §42-17107, to hear taxpayers in favor of or against the proposed tax levy. 2) Approve the proposed primary tax levy increase of $17,804,949. THIS ACTION REQUIRES A ROLL CALL VOTE OF THE BOARD. 3) Direct the Clerk of the Board to mail a copy of the truth in taxation notice, a statement of its publication and the result of the governing body’s vote to the property tax oversight commission within three days of this hearing pursuant to A.R.S. §42-17107(A)(5). (C-49-17-038-7-00) Informal Meeting Minutes Monday, June 19, 2017 Page 8 of 36 Chairman Barney convened the Truth-in-Taxation hearing for Maricopa County. There being no speakers present for the hearing, the hearing was closed. Motion by Supervisor Gates to approve the proposed primary tax levy increase of $17,804,949 and direct the Clerk of the Board to send the appropriate documents to the Property Tax Oversight Commission. Seconded by Supervisor Hickman. The Clerk called the roll with the following results: Ayes: Barney, Chucri, Gates, Hickman, Gallardo NOTE: Executive items were moved to the Special meeting posted for 10:00 a.m. 2. EXECUTIVE SESSION Vote to convene in Executive Session to consider items on the Executive Agenda dated June 19, 2017, for Board of Supervisors and relevant Special Districts pursuant to statutory authority listed for each item. MEETING ADJOURNED There being no further business to come before the Board, the meeting was adjourned. _______________________________ Denny Barney, Chairman of the Board ATTEST: ________________________________________ Fran McCarroll, Clerk of the Board Informal Meeting Minutes Monday, June 19, 2017 Page 9 of 36 FLOOD CONTROL DISTRICT The Board of Directors of the Flood Control District convened in a joint meeting with the Board of Supervisors, Improvement Districts, Library District and Stadium District in Informal Session at 10:00 AM on Monday, June 19, 2017, in the Supervisors'/Sullivan Conference Room, 301 W. Jefferson, 10th Floor, Phoenix, AZ 85003, with the following members present: Denny Barney, Chairman, District 1; Steve Chucri, Vice Chairman, District 2 (via phone); Bill Gates, District 3; Clint Hickman, District 4; Steve Gallardo, District 5. Also present: Fran McCarroll, Clerk of the Board; Maria Ceaglske, Minutes Coordinator; Joy Rich, County Manager; and Steve Goodrich, Legal Counsel. Chairman Barney noted that this Meeting was concurrent meetings for the Board of Supervisors, Improvement Districts, the Flood Control, Library and Stadium Districts. PRESENTATION AND HEARINGS Management and Budget 1. PRESENTATION AND PUBLIC HEARING ON THE MARICOPA COUNTY FY 2018 BUDGET Presentation regarding the Maricopa County Budget for FY 2018. Cynthia Goelz, Budget Director Brian Hushek, Deputy Budget Director Convene a public hearing, pursuant to A.R.S. §42-17104 and A.R.S. §42-17105, to hear taxpayers who may wish to comment on the FY 2018 Tentative Budget which was adopted May 22, 2017, the proposed tax levy, and on any proposed changes to the Tentative Budget. The changes result in a reduction of $4,246,386 from the Tentative Budget of $2,494,333,805. (C- 49-17-041-7-00) Cynthia Goelz, Budget Director reviewed the following changes from the tentative to proposed adopted budget: Ms. Goelz noted there are four categories that will be presented separately: contingency adjustments, reallocations between departments, reallocations between funds and reallocations between projects. Informal Meeting Minutes Monday, June 19, 2017 Page 10 of 36 Category 1 – Contingency Adjustments were presented with the following information and she explained each adjustment as noted in the left column: Additional explanation of adjustments were made for the following Detention Fund Adjustments for Reduction in Mesa Jail Per Diem Revenue: Chairman Barney noted this adjustment is for the phase-in of moving the misdemeanor piece to the privatized system for the City of Mesa. The actual amount is higher than what is noted but this is based on transitioning into the change. The Board will continue to work with the Sheriff’s Department to monitor this change. Supervisor Gallardo questioned how long the transition period will be and asked when the Board would know of the total impact. Chairman Barney responded that the total impact is estimated to be $5.5 million dollars and it is just a question as to how quickly some of the inmates will get through the system. Most will be out within a few months, but the financial impact will be lower for those who linger in the system. So within a few months it will begin to normalize and the Board will see the full impact in FY 2019. Ms. Goelz stated it will be monitored throughout the year and there is no definitive time as to when the new normal will take place. If the $4.2 million is not enough then another adjustment request will be requested. Chairman Barney stated there are meetings set up regarding the transition and he suggested that the Board or their staff should be present. There will be stakeholders and other law enforcement agencies present as well to discuss the transition. Supervisor Gallardo noted his concern within his District is the $4 million impact and concern that the cost will be passed along to the municipalities. Informal Meeting Minutes Monday, June 19, 2017 Page 11 of 36 Chairman Barney responded that some of the costs will be passed to the municipalities. Mesa will be picking up a fixed cost with managing the jail. The reality is that there will be cost shifts and the County is looking at additional efficiencies to lower the overall cost. He noted the new Intake, Transfer and Release (ITR) facility will help with significant savings over time. Ms. Goelz stated that the County will continue to take the felony cases. Chairman Barney explained the new ITR facility will have efficiencies and will replace the old Durango jail which, in part, will respond to the caseload issue. The general fund will be effected because of the additional maintenance-of-effort costs that are not going to be funded through revenue that comes from municipal partners. Ms. Goelz reviewed the following Reallocations Between Departments: Ms. Goelz reviewed the following Reallocation Between Funds: She explained that the reallocation is through the Sheriff’s Office as they distribute their administrative costs between the general and detention funds. After the tentative budget was adopted the formulas were reviewed for both funds. Informal Meeting Minutes Monday, June 19, 2017 Page 12 of 36 Ms. Goelz reviewed the following Reallocation Between Projects: She explained that the new Southwest Justice Center project saved about $7.9 million, and of that, $3.3 million will be used to buildout space for the Professional Standards Bureau. This is necessary in order for the County to be in compliance with the Melendres order. Ms. Goelz noted the following Proposed Final Budget: Chairman Barney noted the $3.3 million used for the Professional Standards Bureau pertains to the Melendres order compliance and the County is trying to manage that carefully by investing in space that the County can reasonably use. Supervisor Gallardo stated the $3.3 million is just a portion of the total cost for the Melendres order compliance. Chairman Barney said the total amount for compliance depends on the Melendres order monitor’s requirements, and making the space so it can be transitioned easily to another space later. 2. PUBLIC HEARING ON COUNTY IMPROVEMENT DISTRICTS FY 2018 BUDGETS Convene a public hearing, pursuant to A.R.S. §48-954 to hear taxpayers who may wish to comment on the FY 2018 County Improvement Districts Tentative Budgets which were adopted May 22, 2017, or on any proposed changes. (C-49-17-043-7-00) Ms. Goelz stated there are no changes to the FY 2018 County Improvement Districts Tentative Budgets. Informal Meeting Minutes Monday, June 19, 2017 Page 13 of 36 3. PRESENTATION AND PUBLIC HEARING ON THE FLOOD CONTROL DISTRICT FY 2018 BUDGET Presentation regarding the Flood Control District 2018 Budget: Cynthia Goelz, Budget Director Brian Hushek, Deputy Budget Director Convene a public hearing to hear taxpayers who may wish to comment on the FY 2018 Flood Control District Tentative Budget which was adopted May 22, 2017, the proposed tax levy, or on any proposed changes to the Tentative Budget. The budget was increased by $163,167 from the Tentative Budget of $88,510,942 for IT infrastructure upgrades to a total of $88,674,109. (C-49-17-048-7-00) Brian Hushek, Deputy Budget Director, presented the Flood Control District proposed adopted budget: 4. PRESENTATION AND PUBLIC HEARING ON THE LIBRARY DISTRICT FY 2018 BUDGET Presentation regarding the Library District FY 2018 Budget: Cynthia Goelz, Budget Director Brian Hushek, Deputy Budget Director Convene a public hearing to hear taxpayers who may wish to comment on the FY 2018 Library District Tentative Budget which was adopted May 22, 2017, the proposed tax levy or on any proposed changes to the Tentative Budget. There were no changes from the Tentative Budget of $28,620,825. (C-49-17-044-7-00) Informal Meeting Minutes Monday, June 19, 2017 Page 14 of 36 Brian Hushek, Deputy Budget Director, presented the Library District proposed adopted budget which has no changes: 5. PRESENTATION AND PUBLIC HEARING ON THE STADIUM DISTRICT FY 2018 BUDGET Presentation regarding the Stadium District FY 2018 Budget: Cynthia Goelz, Budget Director Brian Hushek, Deputy Budget Director Convene a public hearing, pursuant to A.R.S. §48-252 and §48-4232 to hear taxpayers who may wish to comment on the FY 2018 Stadium District Tentative Budget which was adopted May 22, 2017, or on any proposed changes. There were no changes from the Tentative Budget of $10,289,411. (C-49-17-047-7-00) Brian Hushek, Deputy Budget Director, presented the Stadium District proposed adopted budget which has no changes: Informal Meeting Minutes Monday, June 19, 2017 Page 15 of 36 MEETING ADJOURNED/RECESSED Chairman Barney adjourned as the Board of Directors of the Maricopa County Improvement and Stadium Districts. He then recessed the Boards of Directors of the Maricopa County Flood Control and Library Districts to finalize the Board of Supervisors’ portion of the meeting. MEETING RECONVENED Chairman Barney reconvened the meeting of the Flood Control District. ACTION F-1. FLOOD CONTROL DISTRICT TRUTH-IN-TAXATION HEARING AND ACTION 1) Convene a Truth-in-Taxation hearing, pursuant to A.R.S. §48-254, to hear taxpayers in favor of or against the proposed tax levy. 2) Approve the proposed primary tax levy increase of $2,874,615. THIS ACTION REQUIRES A ROLL CALL VOTE OF THE BOARD. 3) Authorize the Clerk of the Board to mail a copy of the truth in taxation notice, a statement of its publication and the result of the governing body’s vote to the property tax oversight commission within three days of this hearing. (C-49-17-049-7-00) Chairman Barney convened as the Flood Control District and convened the Truth-in-Taxation hearing for the Flood Control District. There being no speakers present for the hearing, the hearing was closed. Motion by Director Gates to approve the proposed primary tax levy increase for the Flood Control District of $2,874,615 and direct the Clerk of the Board to send the appropriate documents to the Property Tax Oversight Commission. Seconded by Director Hickman. The Clerk called the roll with the following results: Ayes: Barney, Chucri, Gates, Hickman, Gallardo MEETING ADJOURNED There being no further business to come before the Board, the meeting was adjourned. _______________________________ Denny Barney, Chairman of the Board ATTEST: ________________________________________ Fran McCarroll, Clerk of the Board Informal Meeting Minutes Monday, June 19, 2017 Page 16 of 36 LIBRARY DISTRICT The Board of Directors of the Library District convened in a joint meeting with the Board of Supervisors, Improvement Districts, Library District and Stadium District in Informal Session at 10:00 AM on Monday, June 19, 2017, in the Supervisors'/Sullivan Conference Room, 301 W. Jefferson, 10th Floor, Phoenix, AZ 85003, with the following members present: Denny Barney, Chairman, District 1; Steve Chucri, Vice Chairman, District 2 (via phone); Bill Gates, District 3; Clint Hickman, District 4; Steve Gallardo, District 5. Also present: Fran McCarroll, Clerk of the Board; Maria Ceaglske, Minutes Coordinator; Joy Rich, County Manager; and Steve Goodrich, Legal Counsel. Chairman Barney noted that this Meeting was concurrent meetings for the Board of Supervisors, Improvement Districts, the Flood Control, Library and Stadium Districts. PRESENTATION AND HEARINGS Management and Budget 1. PRESENTATION AND PUBLIC HEARING ON THE MARICOPA COUNTY FY 2018 BUDGET Presentation regarding the Maricopa County Budget for FY 2018. Cynthia Goelz, Budget Director Brian Hushek, Deputy Budget Director Convene a public hearing, pursuant to A.R.S. §42-17104 and A.R.S. §42-17105, to hear taxpayers who may wish to comment on the FY 2018 Tentative Budget which was adopted May 22, 2017, the proposed tax levy, and on any proposed changes to the Tentative Budget. The changes result in a reduction of $4,246,386 from the Tentative Budget of $2,494,333,805. (C- 49-17-041-7-00) Cynthia Goelz, Budget Director reviewed the following changes from the tentative to proposed adopted budget: Ms. Goelz noted there are four categories that will be presented separately: contingency adjustments, reallocations between departments, reallocations between funds and reallocations between projects. Informal Meeting Minutes Monday, June 19, 2017 Page 17 of 36 Category 1 – Contingency Adjustments were presented with the following information and she explained each adjustment as noted in the left column: Additional explanation of adjustments were made for the following Detention Fund Adjustments for Reduction in Mesa Jail Per Diem Revenue: Chairman Barney noted this adjustment is for the phase-in of moving the misdemeanor piece to the privatized system for the City of Mesa. The actual amount is higher than what is noted but this is based on transitioning into the change. The Board will continue to work with the Sheriff’s Department to monitor this change. Supervisor Gallardo questioned how long the transition period will be and asked when the Board would know of the total impact. Chairman Barney responded that the total impact is estimated to be $5.5 million dollars and it is just a question as to how quickly some of the inmates will get through the system. Most will be out within a few months, but the financial impact will be lower for those who linger in the system. So within a few months it will begin to normalize and the Board will see the full impact in FY 2019. Ms. Goelz stated it will be monitored throughout the year and there is no definitive time as to when the new normal will take place. If the $4.2 million is not enough then another adjustment request will be requested. Chairman Barney stated there are meetings set up regarding the transition and he suggested that the Board or their staff should be present. There will be stakeholders and other law enforcement agencies present as well to discuss the transition. Supervisor Gallardo noted his concern within his District is the $4 million impact and concern that the cost will be passed along to the municipalities. Informal Meeting Minutes Monday, June 19, 2017 Page 18 of 36 Chairman Barney responded that some of the costs will be passed to the municipalities. Mesa will be picking up a fixed cost with managing the jail. The reality is that there will be cost shifts and the County is looking at additional efficiencies to lower the overall cost. He noted the new Intake, Transfer and Release (ITR) facility will help with significant savings over time. Ms. Goelz stated that the County will continue to take the felony cases. Chairman Barney explained the new ITR facility will have efficiencies and will replace the old Durango jail which, in part, will respond to the caseload issue. The general fund will be effected because of the additional maintenance-of-effort costs that are not going to be funded through revenue that comes from municipal partners. Ms. Goelz reviewed the following Reallocations Between Departments: Ms. Goelz reviewed the following Reallocation Between Funds: She explained that the reallocation is through the Sheriff’s Office as they distribute their administrative costs between the general and detention funds. After the tentative budget was adopted the formulas were reviewed for both funds. Informal Meeting Minutes Monday, June 19, 2017 Page 19 of 36 Ms. Goelz reviewed the following Reallocation Between Projects: She explained that the new Southwest Justice Center project saved about $7.9 million, and of that, $3.3 million will be used to buildout space for the Professional Standards Bureau. This is necessary in order for the County to be in compliance with the Melendres order. Ms. Goelz noted the following Proposed Final Budget: Chairman Barney noted the $3.3 million used for the Professional Standards Bureau pertains to the Melendres order compliance and the County is trying to manage that carefully by investing in space that the County can reasonably use. Supervisor Gallardo stated the $3.3 million is just a portion of the total cost for the Melendres order compliance. Chairman Barney said the total amount for compliance depends on the Melendres order monitor’s requirements, and making the space so it can be transitioned easily to another space later. 2. PUBLIC HEARING ON COUNTY IMPROVEMENT DISTRICTS FY 2018 BUDGETS Convene a public hearing, pursuant to A.R.S. §48-954 to hear taxpayers who may wish to comment on the FY 2018 County Improvement Districts Tentative Budgets which were adopted May 22, 2017, or on any proposed changes. (C-49-17-043-7-00) Ms. Goelz stated there are no changes to the FY 2018 County Improvement Districts Tentative Budgets. Informal Meeting Minutes Monday, June 19, 2017 Page 20 of 36 3. PRESENTATION AND PUBLIC HEARING ON THE FLOOD CONTROL DISTRICT FY 2018 BUDGET Presentation regarding the Flood Control District 2018 Budget: Cynthia Goelz, Budget Director Brian Hushek, Deputy Budget Director Convene a public hearing to hear taxpayers who may wish to comment on the FY 2018 Flood Control District Tentative Budget which was adopted May 22, 2017, the proposed tax levy, or on any proposed changes to the Tentative Budget. The budget was increased by $163,167 from the Tentative Budget of $88,510,942 for IT infrastructure upgrades to a total of $88,674,109. (C-49-17-048-7-00) Brian Hushek, Deputy Budget Director, presented the Flood Control District proposed adopted budget: 4. PRESENTATION AND PUBLIC HEARING ON THE LIBRARY DISTRICT FY 2018 BUDGET Presentation regarding the Library District FY 2018 Budget: Cynthia Goelz, Budget Director Brian Hushek, Deputy Budget Director Convene a public hearing to hear taxpayers who may wish to comment on the FY 2018 Library District Tentative Budget which was adopted May 22, 2017, the proposed tax levy or on any proposed changes to the Tentative Budget. There were no changes from the Tentative Budget of $28,620,825. (C-49-17-044-7-00) Informal Meeting Minutes Monday, June 19, 2017 Page 21 of 36 Brian Hushek, Deputy Budget Director, presented the Library District proposed adopted budget which has no changes: 5. PRESENTATION AND PUBLIC HEARING ON THE STADIUM DISTRICT FY 2018 BUDGET Presentation regarding the Stadium District FY 2018 Budget: Cynthia Goelz, Budget Director Brian Hushek, Deputy Budget Director Convene a public hearing, pursuant to A.R.S. §48-252 and §48-4232 to hear taxpayers who may wish to comment on the FY 2018 Stadium District Tentative Budget which was adopted May 22, 2017, or on any proposed changes. There were no changes from the Tentative Budget of $10,289,411. (C-49-17-047-7-00) Brian Hushek, Deputy Budget Director, presented the Stadium District proposed adopted budget which has no changes: Informal Meeting Minutes Monday, June 19, 2017 Page 22 of 36 MEETING ADJOURNED/RECESSED Chairman Barney adjourned as the Board of Directors of the Maricopa County Improvement and Stadium Districts. He then recessed the Boards of Directors of the Maricopa County Flood Control and Library Districts. MEETING RECONVENED Chairman Barney reconvened the meeting of the Library District. ACTION L-1. LIBRARY DISTRICT TRUTH-IN-TAXATION HEARING AND ACTION 1) Convene a Truth-in-Taxation hearing, pursuant to A.R.S. §48-254, to hear taxpayers in favor of or against the proposed tax levy. 2) Approve the proposed primary tax levy increase of $710,702. THIS ACTION REQUIRES A ROLL CALL VOTE OF THE BOARD. 3) Authorize the Clerk of the Board to mail a copy of the truth in taxation notice, a statement of its publication and the result of the governing body’s vote to the property tax oversight commission within three days of this hearing. (C-49-17-046-7-00) Chairman Barney convened as the Library District and convened the Truth-in-Taxation hearing for the Library District. There being no speakers present for the hearing, the hearing was closed. Motion by Director Gates to approve the proposed primary tax levy increase for the Library District of $710,702 and direct the Clerk of the Board to send the appropriate documents to the Property Tax Oversight Commission. Seconded by Director Hickman. The Clerk called the roll with the following results: Ayes: Barney, Chucri, Gates, Hickman, Gallardo MEETING ADJOURNED There being no further business to come before the Board, the meeting was adjourned. _______________________________ Denny Barney, Chairman of the Board ATTEST: ________________________________________ Fran McCarroll, Clerk of the Board Informal Meeting Minutes Monday, June 19, 2017 Page 23 of 36 IMPROVEMENT DISTRICTS The Board of Directors of the Improvement Districts convened in a joint meeting with the Board of Supervisors, Improvement Districts, Library District and Stadium District in Informal Session at 10:00 AM on Monday, June 19, 2017, in the Supervisors'/Sullivan Conference Room, 301 W. Jefferson, 10th Floor, Phoenix, AZ 85003, with the following members present: Denny Barney, Chairman, District 1; Steve Chucri, Vice Chairman, District 2 (via phone); Bill Gates, District 3; Clint Hickman, District 4; Steve Gallardo, District 5. Also present: Fran McCarroll, Clerk of the Board; Maria Ceaglske, Minutes Coordinator; Joy Rich, County Manager; and Steve Goodrich, Legal Counsel. Chairman Barney noted that this Meeting was concurrent meetings for the Board of Supervisors, Improvement Districts, the Flood Control, Library and Stadium Districts. PRESENTATION AND HEARINGS Management and Budget 1. PRESENTATION AND PUBLIC HEARING ON THE MARICOPA COUNTY FY 2018 BUDGET Presentation regarding the Maricopa County Budget for FY 2018. Cynthia Goelz, Budget Director Brian Hushek, Deputy Budget Director Convene a public hearing, pursuant to A.R.S. §42-17104 and A.R.S. §42-17105, to hear taxpayers who may wish to comment on the FY 2018 Tentative Budget which was adopted May 22, 2017, the proposed tax levy, and on any proposed changes to the Tentative Budget. The changes result in a reduction of $4,246,386 from the Tentative Budget of $2,494,333,805. (C- 49-17-041-7-00) Cynthia Goelz, Budget Director reviewed the following changes from the tentative to proposed adopted budget: Ms. Goelz noted there are four categories that will be presented separately: contingency adjustments, reallocations between departments, reallocations between funds and reallocations between projects. Informal Meeting Minutes Monday, June 19, 2017 Page 24 of 36 Category 1 – Contingency Adjustments were presented with the following information and she explained each adjustment as noted in the left column: Additional explanation of adjustments were made for the following Detention Fund Adjustments for Reduction in Mesa Jail Per Diem Revenue: Chairman Barney noted this adjustment is for the phase-in of moving the misdemeanor piece to the privatized system for the City of Mesa. The actual amount is higher than what is noted but this is based on transitioning into the change. The Board will continue to work with the Sheriff’s Department to monitor this change. Supervisor Gallardo questioned how long the transition period will be and asked when the Board would know of the total impact. Chairman Barney responded that the total impact is estimated to be $5.5 million dollars and it is just a question as to how quickly some of the inmates will get through the system. Most will be out within a few months, but the financial impact will be lower for those who linger in the system. So within a few months it will begin to normalize and the Board will see the full impact in FY 2019. Ms. Goelz stated it will be monitored throughout the year and there is no definitive time as to when the new normal will take place. If the $4.2 million is not enough then another adjustment request will be requested. Chairman Barney stated there are meetings set up regarding the transition and he suggested that the Board or their staff should be present. There will be stakeholders and other law enforcement agencies present as well to discuss the transition. Supervisor Gallardo noted his concern within his District is the $4 million impact and concern that the cost will be passed along to the municipalities. Informal Meeting Minutes Monday, June 19, 2017 Page 25 of 36 Chairman Barney responded that some of the costs will be passed to the municipalities. Mesa will be picking up a fixed cost with managing the jail. The reality is that there will be cost shifts and the County is looking at additional efficiencies to lower the overall cost. He noted the new Intake, Transfer and Release (ITR) facility will help with significant savings over time. Ms. Goelz stated that the County will continue to take the felony cases. Chairman Barney explained the new ITR facility will have efficiencies and will replace the old Durango jail which, in part, will respond to the caseload issue. The general fund will be effected because of the additional maintenance-of-effort costs that are not going to be funded through revenue that comes from municipal partners. Ms. Goelz reviewed the following Reallocations Between Departments: Ms. Goelz reviewed the following Reallocation Between Funds: She explained that the reallocation is through the Sheriff’s Office as they distribute their administrative costs between the general and detention funds. After the tentative budget was adopted the formulas were reviewed for both funds. Informal Meeting Minutes Monday, June 19, 2017 Page 26 of 36 Ms. Goelz reviewed the following Reallocation Between Projects: She explained that the new Southwest Justice Center project saved about $7.9 million, and of that, $3.3 million will be used to buildout space for the Professional Standards Bureau. This is necessary in order for the County to be in compliance with the Melendres order. Ms. Goelz noted the following Proposed Final Budget: Chairman Barney noted the $3.3 million used for the Professional Standards Bureau pertains to the Melendres order compliance and the County is trying to manage that carefully by investing in space that the County can reasonably use. Supervisor Gallardo stated the $3.3 million is just a portion of the total cost for the Melendres order compliance. Chairman Barney said the total amount for compliance depends on the Melendres order monitor’s requirements, and making the space so it can be transitioned easily to another space later. 2. PUBLIC HEARING ON COUNTY IMPROVEMENT DISTRICTS FY 2018 BUDGETS Convene a public hearing, pursuant to A.R.S. §48-954 to hear taxpayers who may wish to comment on the FY 2018 County Improvement Districts Tentative Budgets which were adopted May 22, 2017, or on any proposed changes. (C-49-17-043-7-00) Ms. Goelz stated there are no changes to the FY 2018 County Improvement Districts Tentative Budgets. Informal Meeting Minutes Monday, June 19, 2017 Page 27 of 36 3. PRESENTATION AND PUBLIC HEARING ON THE FLOOD CONTROL DISTRICT FY 2018 BUDGET Presentation regarding the Flood Control District 2018 Budget: Cynthia Goelz, Budget Director Brian Hushek, Deputy Budget Director Convene a public hearing to hear taxpayers who may wish to comment on the FY 2018 Flood Control District Tentative Budget which was adopted May 22, 2017, the proposed tax levy, or on any proposed changes to the Tentative Budget. The budget was increased by $163,167 from the Tentative Budget of $88,510,942 for IT infrastructure upgrades to a total of $88,674,109. (C-49-17-048-7-00) Brian Hushek, Deputy Budget Director, presented the Flood Control District proposed adopted budget: 4. PRESENTATION AND PUBLIC HEARING ON THE LIBRARY DISTRICT FY 2018 BUDGET Presentation regarding the Library District FY 2018 Budget: Cynthia Goelz, Budget Director Brian Hushek, Deputy Budget Director Convene a public hearing to hear taxpayers who may wish to comment on the FY 2018 Library District Tentative Budget which was adopted May 22, 2017, the proposed tax levy or on any proposed changes to the Tentative Budget. There were no changes from the Tentative Budget of $28,620,825. (C-49-17-044-7-00) Informal Meeting Minutes Monday, June 19, 2017 Page 28 of 36 Brian Hushek, Deputy Budget Director, presented the Library District proposed adopted budget which has no changes: 5. PRESENTATION AND PUBLIC HEARING ON THE STADIUM DISTRICT FY 2018 BUDGET Presentation regarding the Stadium District FY 2018 Budget: Cynthia Goelz, Budget Director Brian Hushek, Deputy Budget Director Convene a public hearing, pursuant to A.R.S. §48-252 and §48-4232 to hear taxpayers who may wish to comment on the FY 2018 Stadium District Tentative Budget which was adopted May 22, 2017, or on any proposed changes. There were no changes from the Tentative Budget of $10,289,411. (C-49-17-047-7-00) Brian Hushek, Deputy Budget Director, presented the Stadium District proposed adopted budget which has no changes: Informal Meeting Minutes Monday, June 19, 2017 Page 29 of 36 MEETING ADJOURNED/RECESSED Chairman Barney adjourned as the Board of Directors of the Maricopa County Improvement and Stadium Districts. He then recessed the Boards of Directors of the Maricopa County Flood Control and Library Districts. _______________________________ Denny Barney, Chairman of the Board ATTEST: ________________________________________ Fran McCarroll, Clerk of the Board Informal Meeting Minutes Monday, June 19, 2017 Page 30 of 36 STADIUM DISTRICT The Board of Directors of the Stadium District convened in a joint meeting with the Board of Supervisors, Improvement Districts, Library District and Stadium District in Informal Session at 10:00 AM on Monday, June 19, 2017, in the Supervisors'/Sullivan Conference Room, 301 W. Jefferson, 10th Floor, Phoenix, AZ 85003, with the following members present: Denny Barney, Chairman, District 1; Steve Chucri, Vice Chairman, District 2 (via phone); Bill Gates, District 3; Clint Hickman, District 4; Steve Gallardo, District 5. Also present: Fran McCarroll, Official Record Keeper; Maria Ceaglske, Minutes Coordinator; Joy Rich, County Manager; and Steve Goodrich, Legal Counsel. Chairman Barney noted that this Meeting was concurrent meetings for the Board of Supervisors, Improvement Districts, the Flood Control, Library and Stadium Districts. PRESENTATION AND HEARINGS Management and Budget 1. PRESENTATION AND PUBLIC HEARING ON THE MARICOPA COUNTY FY 2018 BUDGET Presentation regarding the Maricopa County Budget for FY 2018. Cynthia Goelz, Budget Director Brian Hushek, Deputy Budget Director Convene a public hearing, pursuant to A.R.S. §42-17104 and A.R.S. §42-17105, to hear taxpayers who may wish to comment on the FY 2018 Tentative Budget which was adopted May 22, 2017, the proposed tax levy, and on any proposed changes to the Tentative Budget. The changes result in a reduction of $4,246,386 from the Tentative Budget of $2,494,333,805. (C- 49-17-041-7-00) Cynthia Goelz, Budget Director reviewed the following changes from the tentative to proposed adopted budget: Ms. Goelz noted there are four categories that will be presented separately: contingency adjustments, reallocations between departments, reallocations between funds and reallocations between projects. Informal Meeting Minutes Monday, June 19, 2017 Page 31 of 36 Category 1 – Contingency Adjustments were presented with the following information and she explained each adjustment as noted in the left column: Additional explanation of adjustments were made for the following Detention Fund Adjustments for Reduction in Mesa Jail Per Diem Revenue: Chairman Barney noted this adjustment is for the phase-in of moving the misdemeanor piece to the privatized system for the City of Mesa. The actual amount is higher than what is noted but this is based on transitioning into the change. The Board will continue to work with the Sheriff’s Department to monitor this change. Supervisor Gallardo questioned how long the transition period will be and asked when the Board would know of the total impact. Chairman Barney responded that the total impact is estimated to be $5.5 million dollars and it is just a question as to how quickly some of the inmates will get through the system. Most will be out within a few months, but the financial impact will be lower for those who linger in the system. So within a few months it will begin to normalize and the Board will see the full impact in FY 2019. Ms. Goelz stated it will be monitored throughout the year and there is no definitive time as to when the new normal will take place. If the $4.2 million is not enough then another adjustment request will be requested. Chairman Barney stated there are meetings set up regarding the transition and he suggested that the Board or their staff should be present. There will be stakeholders and other law enforcement agencies present as well to discuss the transition. Supervisor Gallardo noted his concern within his District is the $4 million impact and concern that the cost will be passed along to the municipalities. Informal Meeting Minutes Monday, June 19, 2017 Page 32 of 36 Chairman Barney responded that some of the costs will be passed to the municipalities. Mesa will be picking up a fixed cost with managing the jail. The reality is that there will be cost shifts and the County is looking at additional efficiencies to lower the overall cost. He noted the new Intake, Transfer and Release (ITR) facility will help with significant savings over time. Ms. Goelz stated that the County will continue to take the felony cases. Chairman Barney explained the new ITR facility will have efficiencies and will replace the old Durango jail which, in part, will respond to the caseload issue. The general fund will be effected because of the additional maintenance-of-effort costs that are not going to be funded through revenue that comes from municipal partners. Ms. Goelz reviewed the following Reallocations Between Departments: Ms. Goelz reviewed the following Reallocation Between Funds: She explained that the reallocation is through the Sheriff’s Office as they distribute their administrative costs between the general and detention funds. After the tentative budget was adopted the formulas were reviewed for both funds. Informal Meeting Minutes Monday, June 19, 2017 Page 33 of 36 Ms. Goelz reviewed the following Reallocation Between Projects: She explained that the new Southwest Justice Center project saved about $7.9 million, and of that, $3.3 million will be used to buildout space for the Professional Standards Bureau. This is necessary in order for the County to be in compliance with the Melendres order. Ms. Goelz noted the following Proposed Final Budget: Chairman Barney noted the $3.3 million used for the Professional Standards Bureau pertains to the Melendres order compliance and the County is trying to manage that carefully by investing in space that the County can reasonably use. Supervisor Gallardo stated the $3.3 million is just a portion of the total cost for the Melendres order compliance. Chairman Barney said the total amount for compliance depends on the Melendres order monitor’s requirements, and making the space so it can be transitioned easily to another space later. 2. PUBLIC HEARING ON COUNTY IMPROVEMENT DISTRICTS FY 2018 BUDGETS Convene a public hearing, pursuant to A.R.S. §48-954 to hear taxpayers who may wish to comment on the FY 2018 County Improvement Districts Tentative Budgets which were adopted May 22, 2017, or on any proposed changes. (C-49-17-043-7-00) Ms. Goelz stated there are no changes to the FY 2018 County Improvement Districts Tentative Budgets. Informal Meeting Minutes Monday, June 19, 2017 Page 34 of 36 3. PRESENTATION AND PUBLIC HEARING ON THE FLOOD CONTROL DISTRICT FY 2018 BUDGET Presentation regarding the Flood Control District 2018 Budget: Cynthia Goelz, Budget Director Brian Hushek, Deputy Budget Director Convene a public hearing to hear taxpayers who may wish to comment on the FY 2018 Flood Control District Tentative Budget which was adopted May 22, 2017, the proposed tax levy, or on any proposed changes to the Tentative Budget. The budget was increased by $163,167 from the Tentative Budget of $88,510,942 for IT infrastructure upgrades to a total of $88,674,109. (C-49-17-048-7-00) Brian Hushek, Deputy Budget Director, presented the Flood Control District proposed adopted budget: 4. PRESENTATION AND PUBLIC HEARING ON THE LIBRARY DISTRICT FY 2018 BUDGET Presentation regarding the Library District FY 2018 Budget: Cynthia Goelz, Budget Director Brian Hushek, Deputy Budget Director Convene a public hearing to hear taxpayers who may wish to comment on the FY 2018 Library District Tentative Budget which was adopted May 22, 2017, the proposed tax levy or on any proposed changes to the Tentative Budget. There were no changes from the Tentative Budget of $28,620,825. (C-49-17-044-7-00) Informal Meeting Minutes Monday, June 19, 2017 Page 35 of 36 Brian Hushek, Deputy Budget Director, presented the Library District proposed adopted budget which has no changes: 5. PRESENTATION AND PUBLIC HEARING ON THE STADIUM DISTRICT FY 2018 BUDGET Presentation regarding the Stadium District FY 2018 Budget: Cynthia Goelz, Budget Director Brian Hushek, Deputy Budget Director Convene a public hearing, pursuant to A.R.S. §48-252 and §48-4232 to hear taxpayers who may wish to comment on the FY 2018 Stadium District Tentative Budget which was adopted May 22, 2017, or on any proposed changes. There were no changes from the Tentative Budget of $10,289,411. (C-49-17-047-7-00) Brian Hushek, Deputy Budget Director, presented the Stadium District proposed adopted budget which has no changes: Informal Meeting Minutes Monday, June 19, 2017 Page 36 of 36 MEETING ADJOURNED/RECESSED Chairman Barney adjourned as the Board of Directors of the Maricopa County Improvement and Stadium Districts. He then recessed the Boards of Directors of the Maricopa County Flood Control and Library Districts. _______________________________ Denny Barney, Chairman of the Board ATTEST: ________________________________________ Fran McCarroll, Official Record Keeper