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Informal Meeting Minutes Monday, May 17, 2021 9:30 AM BOARD OF SUPERVISORS Maricopa County, Arizona (and the Boards of Directors of the Flood Control District, Library District, Stadium District, Improvement Districts and/or Board of Deposit) "The mission of Maricopa County is to provide regional leadership and fiscally responsible, necessary public services to its residents so they can enjoy living in healthy and safe communities” Board Members Jack Sellers, Chairman, District 1 Bill Gates, Vice Chairman, District 3 Steve Chucri, District 2 Clint Hickman, District 4 Steve Gallardo, District 5 County Manager Joy Rich Clerk of the Board Juanita Garza Meeting Location Supervisors’ Conference Room 301 W Jefferson, 10th Floor Phoenix, AZ 85003 BOARD OF SUPERVISORS The Board of Supervisors of Maricopa County, Phoenix, Arizona, convened in an Informal Session at 9:30 AM on Monday, May 17, 2021, in the Supervisors’ Conference Room 301 W Jefferson, 10th Floor Phoenix, AZ 85003, with the following members present: Jack Sellers, Chairman, District 1; Bill Gates, Vice Chairman, District 3; Steve Chucri, Supervisor, District 2; Clint Hickman, Supervisor, District 4; Steve Gallardo, Supervisor, District 5. Also present: Juanita Garza, Clerk; Kelly Gardiner, Minutes Coordinator; Joy Rich, County Manager; Andrea Cummings, Legal Counsel (remote). Chairman Sellers opened the Informal Meeting and said it was good to have all his colleagues in one room for the first time in a while due to the pandemic. HUMAN SERVICES 1. GRANT FUNDS FROM U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES FOR HEAD START PROGRAMS Approve the receipt of grant funds from the U.S. Department of Health and Human Services (DHHS)/Administration for Children and Families (ACF), Office of Head Start (OHS), Grant No. 09HE000185. The Human Services Department Head Start Program received a Notice of Award for the Grant. The Federal Award Project is COVID (Public Law 116-260), Catalog of Federal Domestic Assistance (CFDA) 93.600 Head Start funding amount is $374,706. The funding budget period is April 1, 2021 through March 31, 2023. Funds shall be utilized for activities pertaining to the prevention, preparation, and/or response to the coronavirus disease (COVID-19). The Head Start program submitted an Application for Federal Assistance SF-424 on April 9, 2021. The funds were awarded through a non-competitive process as Maricopa County is a recipient of current Head Start grants. The Grant does not require a Non-federal share (NFS) match. Also request authorization for the Chairman to sign applications for additional funds, applications for supplemental funds, and applications for revisions to the grant budget related to Grant No. 09HE00185 (Application for Federal Assistance Form SF-424). If the federal Office of Head Start approves the submitted applications, then the Maricopa County Human Informal Meeting Minutes Monday, May 17, 2021 Page 2 of 45 Services Department will request approval for the next required action from the Board of Supervisors at a future formal meeting. The funds are a one-time award and will not impact the County General fund. FY 2021 Revenue & Expenditures: $374,706 Supervisory District: All (C-22-21-113-X-00) Motion to approve by Supervisor Bill Gates, seconded by Supervisor Clint Hickman Ayes: Jack Sellers, Bill Gates, Steve Chucri, Clint Hickman, Steve Gallardo PRESENTATION 2. PRESENTATION REGARDING THE MARICOPA COUNTY FY 2022 RECOMMENDED BUDGET Presentation regarding the Maricopa County FY 2022 Recommended Budget. Cynthia Goelz, Chief Financial Officer Kirstin Chernin, Deputy Budget Director (C-49-21-023-X-00) Chairman Sellers introduced Cynthia Goelz, Chief Financial Officer, and Kirsten Chernin, Deputy Budget Director, to present the Recommended Budget for Fiscal Year 2022. Ms. Goelz and Ms. Chernin came forward for the presentation. Ms. Goelz thanked the Chairman for his guidance and leadership, and his staff for their support during the budget development. She also thanked the Supervisors and their Chiefs of Staff, the Elected Officials, Presiding Judge, Justice of the Peace, and their department heads for their help, as the budget was coming together. This united effort was necessary to put together a structurally balanced budget for Maricopa County. Informal Meeting Minutes Monday, May 17, 2021 Page 3 of 45 Ms. Goelz said there was no way to know what was ahead economically and looking back one year helps to see where we have been. The County consulted their economist to get data to help with projections. Faced with uncertainty, the budget office approached the FY 2022 Budget very conservatively, using recession mentality to put the measures in place. Ms. Goelz reviewed the slide above that outlined the challenges and explained how the budget was managed with all the known and unknown factors. Ms. Goelz reviewed the above slide and highlighted the key aspects of past budget strategies that helped to lessen the economic impact. She said with a recession mentality from 2021, the decisions made during the pandemic did not negatively impact the County as severely. There were many changes across the board and as months went on the economy was headed down. Informal Meeting Minutes Monday, May 17, 2021 Page 4 of 45 Ms. Goelz highlighted additional reductions that were made in response to the anticipated economic downturn including asking each county department to identify 3% to 5% additional reductions. Ms. Goelz reviewed the slide above which shows the impact of the economic downturn. She reported the economic indicators were bad, with unemployment very high and a drop of -3.5% in the Gross Domestic Product (GDP). The numbers went down in response to the pandemic and then started back up and the forecast is for continued economic improvement with the GDP slated to go up 5.7% in 2021 as seen on the chart with projected increases in 2022. Informal Meeting Minutes Monday, May 17, 2021 Page 5 of 45 Ms. Goelz stated that because of the County’s conservative approach and positive economic data, the additional 3% or 5% cuts to the budget for departments in fiscal year 21 were not necessary. She reviewed the above slide of the budget guidelines adopted by the Board back in January. Ms. Goelz said the FY 2022 budget is in complete alignment with the Board’s guidelines. The above slide outlines many of the conservative strategies from FY 2021 that are being utilized in the event of any further economic shocks. Informal Meeting Minutes Monday, May 17, 2021 Page 6 of 45 The above slide shows the recommendation for FY 2022 at $3,423,769,966 and the percent allocation for each source. This budget continues to provide resources for those impacted by the pandemic and invest in the Chairman’s priorities to develop options for those experiencing homelessness in Maricopa County, promoting Smart Communities, and the development of a regional transportation system and infrastructure plan. Supervisor Gates asked what the difference was in the budget from FY 2021. Ms. Goelz said last year was just over $3 billion. She reviewed the different sources of funds and said the largest source of revenue is Other Intergovernmental category due to the American Rescue Plan Act Funding at $439 million and Rental Assistance Funds. Informal Meeting Minutes Monday, May 17, 2021 Page 7 of 45 Ms. Goelz reviewed the Uses of Funds slide and the percentage allocation in each category and gave a brief outline of the dollar amounts as follows: Public Safety, $1.4 billion; Health and Welfare, $1.1 billion; Other, $609 million; Highways & Streets, $217 million; Culture and Recreation, $31 million; Education, $21 million. Ms. Goelz reviewed the comparison of the FY 2021 budget to the FY 2022 budget and spoke about the increases. She referred back to this previous slide and said the cuts from last year going into the pandemic were approximately $82 million and this year they are adding those items back into the budget at $94 million. This includes projects that were scaled back that are now restored and pay-for- performance added back in. Informal Meeting Minutes Monday, May 17, 2021 Page 8 of 45 Ms. Goelz reviewed the Cares Forecasted Distribution slide and said by the end of FY 2021, all those funds will be spent. Supervisor Hickman said this was a great example of how fiscally responsible the County has been in using funds provided to support and help to those in need. He thanked all who contributed to this effort. He said he was comfortable with the idea that if auditors stepped in to review how funds were spent, the County would be a “shining star”. Ms. Goelz continued to the next slide, American Rescue Plan Act Funding and said it has not yet been determined how those funds will be spent. Informal Meeting Minutes Monday, May 17, 2021 Page 9 of 45 Ms. Goelz reviewed the Major Operation Revenues slide and said the County beat the original forecast and the initial budget for the three major revenue sources for 2020. She said it is important to continue to use the recession model to make sure we meet our needs and obligations. Supervisor Gallardo said he was surprised with the consistent tax revenue because he expected a big drop. Ms. Goelz said the stimulus checks helped prop people up through the year along with online sales that continued during the pandemic. Supervisor Hickman asked how we compare with other large counties. Ms. Goelz said we have done better than many regions across the country because Arizona is a desirable place to live and people continue to move here. Chairman Sellers said small businesses were the hardest hit and the County was able to direct CARES funds toward those small businesses. Informal Meeting Minutes Monday, May 17, 2021 Page 10 of 45 Ms. Goelz talked about the above slide saying there were no changes coming to property taxes. The property tax rate has remained flat for the last four years. The increases in revenue are due to increased values and new properties added to the Assessor’s rolls. That total increase was 6.6% with 4% from property appreciation in the prior year and 2.6% were properties added to the rolls. She said with a flat tax rate, the Maximum Levy would be $133.4 million which is below the max levy under the law at $815.9 million. Supervisor Hickman asked about how we compare with the other 15 Counties in Arizona with their max levy. Ms. Goelz said she did not know but would find out how other Counties are doing. Informal Meeting Minutes Monday, May 17, 2021 Page 11 of 45 The FY 2021 County Primary Property Tax slide was reviewed, and Ms. Goelz said the tax rate will be set in August when all tax rates get set and we will know at that time what the tax rates will be for Maricopa County. The Mandated State Payments slide was reviewed and Ms. Goelz said the County has no control of these costs. Informal Meeting Minutes Monday, May 17, 2021 Page 12 of 45 Ms. Goelz said it has been a challenging year for our Government Relations team and she thanked them for all their work to help keep the Board apprised of all the activity at the Legislature. Some of the potential impact would be Security for County buildings at $10 million for FY 2022; Commercial Property Assessment Ratio reduction not likely to occur until FY 2023 or FY 2024; Elected Official Salary increase of $20K per official for FY 2023 or FY 2024; Election Requirements are being established and we do not know how that will impact the budget yet. The General and Detention Fund slide was reviewed. Ms. Goelz said these items are not reflected in the individual department slides and she reviewed them as having a County-wide impact. Informal Meeting Minutes Monday, May 17, 2021 Page 13 of 45 Supervisor Chucri thanked Ms. Goelz and her team for managing the budget process during these challenging times. He said it is unfortunate the pandemic was a revenue generator especially here in Arizona. Supervisor Chucri spoke about the population increase and the migration from California and internationally. He said it would be helpful to be able to figure out a cost-per-person going forward because as the population continues to grow, the County still needs to provide services to the ever-changing numbers. The question is how to manage the increase and still provide the services. Ms. Goelz said she would gather information on that. Ms. Goelz said Ms. Chernin would be reviewing each department budget requests. Ms. Chernin reviewed the Elections slide. She said the General Fund increase was 4.15% increase or $401,000 from the FY 2021 Revised Budget. Informal Meeting Minutes Monday, May 17, 2021 Page 14 of 45 Ms. Chernin said the Recorder’s General Fund had an increase of 7.1 % or $466,000 from the FY 2021 Revised Budget. She reviewed the various elements of the department increases listed in the slide above. Ms. Chernin said the Treasurer’s General Fund slide showed a 1.2% increase or $87,000 increase over the FY 2021 Revised Budget. The Special Revenue Fund is flat from the Revised FY 2021 Budget. She said the Assessor’s General Fund increased 4.54% or $1.2 million from the FY 2021 Revised Budget. The increases included in the Digital First initiative are hosted phone services, teleworking and DocuSign, additional licensing, and Artificial Intelligence for deed automation. Informal Meeting Minutes Monday, May 17, 2021 Page 15 of 45 Ms. Chernin reviewed the County Schools Superintendent’s General Fund slide saying the increase of 5.54% or $160,000 over the FY 2021 Revised Budget and outlined the breakdown of those increases. Ms. Chernin said the Clerk of the Superior Court’s General Fund operating budget is recommended at $39.6 million an increase of 1.68% or $654,000 from the FY 2021 Revised Budget. Informal Meeting Minutes Monday, May 17, 2021 Page 16 of 45 Ms. Chernin said the Judicial Branch - Adult Probation General Fund has a recommended increase of 1.78% or $1.2 million from the FY 2021 Revised Budget. The Detention Fund recommended an increase of 2.31% or $957,000 from the FY 2021 Revised Budget. Supervisor Hickman asked Ms. Goelz about the number of positions going down and wanted to know if this is a temporary drop due to the caseload reduction because of the pandemic. She explained it had to do with the pandemic but also caseload, risk assessment, redistribution of cases that are either Parole (state) or Probation (County). Ms. Chernin reviewed the Judicial Branch - Juvenile Probation slide and said the General Fund increase of 4.45% or $937,000 from the FY 2021 Revised Budget. The Detention Fund was Informal Meeting Minutes Monday, May 17, 2021 Page 17 of 45 reviewed with a decrease of (3.92%) or ($1.8) million from the FY 2021 Revised Budget. The items that created the decrease were listed on the slide. Ms. Chernin reviewed the Superior Court General Fund slide and said there was an increase of 4.16% or $3.9 million from the FY 2021 Revised Budget. This increase included the addition of four positions to the Superior Court for the Maryvale expansion. Ms. Chernin reviewed The Justice Courts General Funds slide and said there was an increase of 2.42% or $517,000 from the FY 2021 Revised Budget. She said there were no changes other than for baseline adjustments for internal service charges and benefits. Informal Meeting Minutes Monday, May 17, 2021 Page 18 of 45 Ms. Chernin reviewed the Constables General Fund slide and said there was an increase of .26% or $10,000 from the FY 2021 Revised Budget. The General Fund and Operations for Constables includes the annualization of the Constable 1st and 2nd term pay adjustments after the recent election and an adjustment for vacancies. Ms. Chernin reviewed the Sheriff’s General Fund slide and said there was a decrease of (1.5%) or ($1.9) million from the FY 2021 Revised Budget. The details were noted on the slide. Informal Meeting Minutes Monday, May 17, 2021 Page 19 of 45 Ms. Chernin reviewed the Melendres Judgement Order slide and said the General Fund Compliance Order had an increase of 3.28% or $843,000 over FY 2021 Revised Budget. Ms. Chernin said this slide showed the costs by year for the Melendres Compliance case. Supervisor Hickman asked about the costs associated with this item that seem to grow each year. He said it makes no sense because this money comes from the taxpayers. He asked when this might turn around and the dollar amount would decrease with increased compliance. Ms. Chernin said MCSO is in full compliance with 41 of the 100 paragraphs in the first order and the second order in phase two there is a 91% compliance with 103 out of 113 paragraphs. She concluded they are getting closer. Informal Meeting Minutes Monday, May 17, 2021 Page 20 of 45 Ms. Chernin reviewed the Sheriff's Office Detention Fund operating budget slide and reported an increase of 1.76 % or $4.2 million over FY 2021 Revised Budget. The details of the increase are outlined on the slide. Ms. Chernin reviewed the County Attorney slide and said the General Fund budget recommendation is a 1.71% increase or $1.7 million increase from the FY 2021 Revised Budget. The details of the increase are shown on the slide. Informal Meeting Minutes Monday, May 17, 2021 Page 21 of 45 Ms. Chernin reviewed the Public Defense System slide and said the recommended General Fund operating budget was an increase of 1.3% or $1.8 million increase over FY 2021 Revised Budget. The Maryvale Expansion included three new positions. The Public Fiduciary slide was reviewed, and Ms. Chernin said the General Fund operating budget recommended was an 8.4% increase or $360,000 above the FY 2021 Revised Budget. The details of the increases are outlined on the slide. Informal Meeting Minutes Monday, May 17, 2021 Page 22 of 45 The Animal Care and Control (ACC) slide was reviewed, and the General Fund operating budget recommended was an increase of 1.4% or $13,000 over FY 2021 Revised Budget. Supervisor Gates asked about the transfer from General Fund to the Shelter Fund and how that amount compares to previous years. Ms. Chernin said the transfer this year was like previous years. Due to the pandemic and reduced animal population at the shelter, the expenditures were down. However, there was a large increase in the risk charges that needed to be considered because of the impact on the Special Revenue Fund. Ms. Goelz commented on the changing needs of ACC and how money has been allocated to this point. Going forward she said there will be more balanced / equitable contributions to these funds as we have reached a new “level-set” regarding funds needed. Joy Rich, County Manager, said that as the “live adoption” rate increases, there is a corresponding risk that comes with it. It is important to achieve a balance when it comes to fostering animals, live adoptions, and the associated risks. At this time, ACC has encountered an undoable risk and leadership is reviewing IGA’s with jurisdictions to ensure the County is not being subjected to unnecessary risk when it comes to animal adoption. She said the IGA’s are being sent to each district for review. Supervisor Hickman spoke about the importance of getting back to the County mandates when it comes to expenditures, risk, and running the Maricopa County Animal Care and Control. Informal Meeting Minutes Monday, May 17, 2021 Page 23 of 45 Ms. Chernin reviewed the Equipment Services slide and said the recommended operating budget is an increase of 9.04% or $624,000 above the FY 2021 Revised Budget. Ms. Chernin reviewed the Enterprise Technology slide and said the General Fund operating budget had an increase of 3.3% or $429,000. The Detention Fund operating budget had a decrease of (.5%) or a reduction of ($5,000). Informal Meeting Minutes Monday, May 17, 2021 Page 24 of 45 Ms. Chernin reviewed the Integrated Criminal Justice Information System slide and said the Detention Fund Operating budget recommended was an increase of 8.2% or $140,000 above the FY 2021 Revised Budget. Ms. Chernin reviewed the County Manager slide and said the General Fund Operating Budget is a 29% decrease over FY 2021 Revised Budget. Informal Meeting Minutes Monday, May 17, 2021 Page 25 of 45 Ms. Chernin reviewed the Emergency Management slide and said the General Fund Operating Budget has an increase of 13.4% or $443,000 over FY 2021 Revised Budget. The Detention Fund Operating Budget has no increase. Ms. Chernin reviewed the Medical Examiner slide said the General Fund Operating Budget increased 9.44% or $1.2 million over FY 2021 Revised Budget. Informal Meeting Minutes Monday, May 17, 2021 Page 26 of 45 Ms. Chernin reviewed the Public Health slide and said General Fund Operating Budget increased 22.08% or $3.1 million over FY 2021 Revised Budget. Supervisor Gates said he was glad to see the fortification of the Public Health Department as the pandemic has increased the needs. Ms. Chernin reviewed the Human Services slide and said General Fund Operating Budget increased 7.82% or $312,000 over FY 2021 Revised Budget. The Human Services Grant budgets had an 80% or $43.9 million increase from the FY 2021 Revised Budget. Informal Meeting Minutes Monday, May 17, 2021 Page 27 of 45 Ms. Chernin spoke about the Homelessness Initiative as directed by Chairman Sellers. The County is looking for solutions and has dedicated $17.7 million of CARES Act Funding to set up safe outdoor space, provide temporary overnight shelters and medical care for the most vulnerable. The County will continue to look for opportunities to be part of the homelessness solution. The details are outlined on the slide. Ms. Goelz briefly reviewed the above slide, FY 2022 Use of Capital Funds. Informal Meeting Minutes Monday, May 17, 2021 Page 28 of 45 Ms. Goelz reviewed the Continuing Parks Capital Parks slide which includes $2.6 million of carry forward funding and then added an additional $10.7 million to this group of projects listed above. Ms. Goelz reviewed the FY 2022 New Parks Capital Project slide and said $2.9 million is being recommended for the two projects listed. Chairman Sellers commented on the Parks Department and the work they are doing to accommodate the public feedback for outdoor lifestyle preferences. Informal Meeting Minutes Monday, May 17, 2021 Page 29 of 45 Ms. Goelz reviewed the above slide of continuing projects as listed on the slide. Ms. Goelz reviewed the above slide of new projects. Informal Meeting Minutes Monday, May 17, 2021 Page 30 of 45 Ms. Goelz stated many of the above listed projects are being carried over from FY 2021 except for the Dynamics 365 Upgrade that is getting underway in FY 2022. Ms. Goelz reviewed the list of potential projects that are not yet funded and are on the horizon for the future. Informal Meeting Minutes Monday, May 17, 2021 Page 31 of 45 Ms. Goelz reviewed the above slide and spoke about the Retirement Issues from the Budget standpoint. Costs continue to increase for all categories with the largest increase being in Public Safety (PSPRS). Unfunded liabilities are driving the increased costs year after year. She made the distinction of Unfunded Liabilities for Maricopa County only versus the Unfunded Liabilities shared with the State of Arizona. Supervisor Gates asked when can the County anticipate the percentages and costs to go down. Ms. Goelz replied it will likely be several years before the County sees a leveling out due to the averaging of costs/payouts of all plan participants. Ms. Goelz spoke about some possible options to reduce the Unfunded Actuarial Accrued Liability that are listed on the slide above. This reduction would help reduce the impact on the Informal Meeting Minutes Monday, May 17, 2021 Page 32 of 45 County Operating Budget. She said because of the variables related to actuarial formulas, there is a certain amount of strategy needed to assist in getting ahead of the unfunded liability expenses. Supervisor Hickman asked if there was another community experiencing this issue that could serve as a model for Maricopa County. Ms. Goelz said there were many different communities experiencing this and some are amortizing over a longer period to bring down the annual costs. She said this is occurring nationwide and there are a variety of strategies available due to the current availability of money. Ms. Goelz said the County’s Expenditure Limitation would be a factor if Lump Sum Contribution option were considered. ~ Supervisor Chucri left the dais ~ Ms. Goelz reviewed the Budgeted FTE's slide. Supervisor Gates stated the numbers on the screen are budgeted numbers and he asked what the actual FTE’s for Maricopa County are. Joy Rich replied the budgeted and actual are usually very close with approximately 13,500 employees. Budgeted FTE’s refer to positions rather than people. Supervisor Hickman stated that with the use of technology, Maricopa County has experienced a lot of growth with fewer FTE positions over the past decade. ~ Supervisor Chucri returned to the dais ~ Informal Meeting Minutes Monday, May 17, 2021 Page 33 of 45 Ms. Goelz reviewed the FY 2022 Highlights slide and said the budget aligns with the Board guidelines as seen on the slide. Ms. Goelz reviewed the Moving Forward slide and said the conservative mentality has served the County well. Informal Meeting Minutes Monday, May 17, 2021 Page 34 of 45 Ms. Goelz thanked County Manager, Joy Rich, and Assistant County Manager, Lee Ann Bohn, for their patience and guidance through the past year as the budget was developed with the recommendations from the Board. She congratulated Kirsten Chernin for the completion of her first year as Deputy Budget Director. She did a great job guiding staff despite the challenges. Chairman Sellers thanked the Budget staff for their patience and expertise during the formulation of this budget. Chairman Sellers stated, back in January when the FY 2022 budget guidelines were adopted, there was a lot of uncertainty. A vaccine for COVID-19 was just becoming a reality. We didn’t know what the availability or timeline for distribution would be. We didn’t have the updated property values and we had just a few months of what appeared to be the new normal of economic activity. Based on all the unknowns, the Board adopted guidelines which instructed staff to develop the budget based on levy from a flat property tax rate. Now, based on the current economic outlook for FY 2022 and the near future, I am proposing we adopt a tentative budget based on a property tax rate reduced by 5.5 cents, and the levy, tax revenue, and expenditures be adjusted accordingly. He then asked Ms. Goelz what would a 5.5 cent reduction to the primary property tax rate amount to in terms of the levy and what adjustments could be considered to offset the reduction to the property tax revenue? Ms. Goelz said a 5.5 cent reduction to the property tax rate would lower the levy about $26.5 million and there would be that much less available for expenditures during FY 2022. She said she could offer some recommendations to help offset that shortfall. There was $3 million set aside from the Operating Budget targeting the possibility of going from a five-member Board to a nine-member Board. The second area would be money that was targeted to the Unfunded Liabilities from the Operating Budget in the amount of about $24 million. This could be done because ongoing expenses were not maxed out and so that money can be moved out of Operating Budget without interfering with necessary expenses. Supervisor Gates asked if, with the reduction of property taxes, there was still the Pay for Performance included in the FY 2022 budget since employees did not receive it in FY 2021 due to the economic uncertainty. Ms. Goelz said the Pay for Performance is still included. Supervisor Gates said he likes this proposal to reduce property taxes which would give a little relief for property owners who have been impacted this past year. Informal Meeting Minutes Monday, May 17, 2021 Page 35 of 45 Supervisor Gallardo talked about the Head Start Program and thanked Bruce Liggett and Lee Ann Bohn for all that has been done to help the citizens in need. He thanked Public Health and appreciates the FY 2022 budget to include new positions to fortify the department to further assist our County. About homelessness, Supervisor Gallardo is in favor of doing whatever we can to alleviate the hardship for those experiencing homelessness. He stated he appreciates the $5 million being allocated to reduce homelessness. Supervisor Gallardo asked if any programs, services, or staffing would be impacted by the proposed tax rate reduction? In the event of a downturn, will we be ok. Ms. Goelz said no programs, services, staffing, or department needs are going unmet with the proposed property tax reduction. She reiterated the sources of the funds that would be used to offset the property tax reduction and said there are still contingency funds available if the need arises. Supervisor Chucri echoed Supervisor Gallardo’s stated concerns in wanting to confirm the effect of tax reduction and not taking away needed services. He said making the distinction of needs versus wants is important and to make sure we are doing it right and stay nimble. Supervisor Hickman thanked the budget team for their good work. He said the County has been conservative this past year and now we are moving forward. He said he appreciated the budget allowances toward the Parks and Recreation Department. Supervisor Hickman is glad that the residents feel good about their property values and now be able to reduce the property tax rate for them. He stated he is glad to be with his colleagues after a year of so much separation. Supervisor Hickman talked about the importance of growth in all districts which means increased need for public safety. He said this budget reflects the increased services to the citizens for safety. ACTION 3. ADOPTION OF THE MARICOPA COUNTY FY 2022 TENTATIVE BUDGET 1) Pursuant to A.R.S. §§ 11-201(A)(6), 42-17101, and 42-17102, approve the Fiscal Year 2022 Maricopa County Tentative Budget in the amount of $3,423,769,966 by total appropriation for each department, fund, and appropriation unit group, listed in the attached schedules. 2) Adopt the Five Year Capital Improvement Plan for Fiscal Years 2022-2026. 3) Approve the attached Executive Summary. (C-49-21-021-X-00) Chairman Sellers asked if there was a motion to adopt the FY 2022 Maricopa County Tentative budget based on a 5.5 cent reduction to the property tax rate? Supervisor Gates made the following motion: Approve the Fiscal Year 2022 Maricopa County Tentative Budget with a proposed tax levy based on a tax rate of $1.3459, which is 5.5 cents lower than the FY 2021 tax rate and is lower than the Truth-in-Taxation rate of $1.3464. The Tentative budget will total $3,420,633,723. Approve the total appropriation, for each department, fund and appropriation unit group listed in the attached schedules, with the following amendments to the schedule: 1. The FY 2022 Non-Departmental General Fund Operating appropriation will be reduced by $26,577,085 for a new total of $703,672,311 2. The FY 2022 Operating Eliminations will be adjusted by a positive $23,420,842. Also adopt the 5-Year Capital Improvement Plan for fiscal years 2022-2026 with the following amendments: Informal Meeting Minutes Monday, May 17, 2021 Page 36 of 45 1. Reduce the County General Fund County Improvement Fund Reserves by $23,420,842. Approve the attached Executive Summary Direct staff to update all forms and schedule totals accordingly. The motion was seconded by Supervisor Steve Chucri Supervisor Gallardo said thank you to Chairman Sellers for bringing this budget forward and believes this is a solid budget which is funding many important functions including Public Health, Capital Projects, and Maricopa County employees, and the 5.5% reduction in the tax rate. He said as the population continues to grow and people continue to move to Arizona, this budget supports us in taking care of the citizens that call Maricopa County home. Ayes: Jack Sellers, Bill Gates, Steve Chucri, Clint Hickman, Steve Gallardo 4. SET PUBLIC HEARING, TRUTH IN TAXATION HEARING, AND SPECIAL MEETING ON THE MARICOPA COUNTY FY 2022 BUDGET Set a public hearing on proposed expenditures and tax levy and Truth in Taxation hearing pursuant to ARS §§ 42-17103, 42-17104 and 42-17107, for June 21, 2021 at 9:30 A.M. in the Board of Supervisors’ Conference Room, 301 W. Jefferson, 10th floor, Phoenix, Arizona, to receive public comment on the FY 2022 Tentative Budget as adopted, on any proposed changes to that Tentative Budget and on the proposed tax levy. Also, pursuant to ARS §§ 42-17103, 42-17104, 42-17105 and 42-17107, set a Special Meeting for June 21, 2021, immediately following the public hearing, at the Board of Supervisors’ Conference Room 301 W. Jefferson, 10th floor, Phoenix Arizona, to adopt the Final Budget for FY 2022. Also, pursuant to ARS §§ 42-17103, 42-17107 and 42-17151, provide notice that the Board of Supervisors will meet in the Board of Supervisors’ Conference Room, 10th Floor, 301 W. Jefferson St. Phoenix, AZ at 9:30 A.M., Monday, August 16, 2021 for the purpose of making tax levies as set forth in the estimate of amounts required to meet the public expense for the ensuing year and to fix and determine the required primary and secondary tax rates. These meetings may be held by webinar. Additional information will be available on the Clerk of the Board’s website and on each published agenda. (C-49-21-022-X-00) Supervisor Gates made the motion to set the public hearing on the Budget and a Special Meeting for June 21, 2021, at the time and location outlined in the agenda, and give notice that tax levies and tax rates will be set by this Board, Monday, August 16, 2021 also noting that these meetings may be held by Webinar. This motion was seconded by Supervisor Steve Chucri Ayes: Jack Sellers, Bill Gates, Steve Chucri, Clint Hickman, Steve Gallardo MEETING RECESSED Chairman Sellers recessed the Board of Supervisors to convene as the Board of Directors of various special districts. MEETING RECONVENED Chairman Sellers reconvened the Board of Supervisors. Informal Meeting Minutes Monday, May 17, 2021 Page 37 of 45 BOARD OF SUPERVISORS 16. EXECUTIVE SESSION Vote to convene in Executive Session to consider the items on the Executive Agenda dated Monday, May 17, 2021, for Board of Supervisors and relevant Special Districts pursuant to the statutory authority listed for each item. Chairman Sellers took personal privilege to say he was very proud to be present with his colleagues at this very busy and very important budget meeting. He spoke about the many challenges Maricopa County had this past year and wanted to thank everyone for the nonstop efforts to serve the citizens and take care of business. The budget presented today addresses our investment in capital and infrastructure and helps put people back to work. The reduction in property taxes relieves some of the financial burden for all property owners in Maricopa County. Chairman Sellers said this is a step back to normalcy. He thanked the employees of Maricopa County who were on the front lines continuing to serve. Chairman Sellers gave a special thank you to Joy Rich who was a strong and adaptive leader when we needed it the most. He said this is the right budget for the right time and it was time to get back to work. Motion to approve by Supervisor Bill Gates, seconded by Supervisor Clint Hickman Ayes: Jack Sellers, Bill Gates, Steve Chucri, Clint Hickman, Steve Gallardo MEETING ADJOURNED After discussion on the Executive Session items and there being no further business to come before the Board, the meeting was adjourned. ______________________________ Jack Sellers, Chairman of the Board ATTEST: ___________________________ Juanita Garza, Clerk of the Board Informal Meeting Minutes Monday, May 17, 2021 Page 38 of 45 IMPROVEMENT DISTRICT The Board of Directors for the Improvement District convened in an Informal Session at 9:30 AM on Monday, May 17, 2021, in the Supervisors’ Conference Room 301 W Jefferson, 10th Floor Phoenix, AZ 85003, with the following members present: Jack Sellers, Chairman, District 1; Bill Gates, Vice Chairman, District 3; Steve Chucri, Director, District 2; Clint Hickman, Director, District 4; Steve Gallardo, Director, District 5. Also present: Juanita Garza, Clerk; Kelly Gardiner, Minutes Coordinator; Joy Rich, County Manager; Andrea Cummings, Legal Counsel (remote). ACTION 5. ADOPTION OF FY 2022 TENTATIVE BUDGETS FOR DIRECT ASSESSMENT SPECIAL DISTRICTS AND STREET LIGHTING IMPROVEMENT DISTRICTS Pursuant to A.R.S., § 48-251, 48-252, and 48-954, approve the Fiscal Year 2022 Tentative Budgets for the County Improvement Districts per the FY 2022 budget Schedules entitled “Direct Assessment Special Districts” and “Street Lighting Improvement Districts.” (C-49-21- 028-X-00) Director Gates made a motion to approve the Fiscal Year 2022 Tentative Budgets for all the Special Districts and Improvement Districts as described in the agenda and per the budget requests as listed on the attachment. Motion seconded by Director Steve Chucri Ayes: Jack Sellers, Bill Gates, Steve Chucri, Clint Hickman, Steve Gallardo 6. SET PUBLIC HEARING AND SPECIAL MEETING ON FY 2022 BUDGET FOR DIRECT ASSESSMENT SPECIAL DISTRICTS AND STREET LIGHTING IMPROVEMENT DISTRICTS Set a public hearing pursuant to ARS §§ 48-954 and 42-17103 and 42-17104, for June 21, 2021 at 9:30 A.M. in the Board of Supervisors’ Conference Room, 301 W. Jefferson, 10th floor, Phoenix, Arizona, regarding the FY 2022 Tentative Budgets for Direct Assessment Special Districts and Street Lighting Improvement Districts to hear taxpayers who may wish to comment on the respective Tentative Budgets as adopted, any proposed changes to those Tentative Budgets, and on the proposed tax levies. Also, pursuant to ARS §§42-17103, 42-17104, and 42-17105, set a Special Meeting for June 21, 2021, immediately following the public hearing, at the Board of Supervisors’ Conference Room 301 W. Jefferson, 10th floor, Phoenix Arizona to adopt the County Improvement Districts Final Budget for FY 2022. These meetings may be held by webinar. Additional information will be available on the Clerk of the Board’s website and on each published agenda. (C-49-21- 029-X-00) Director Gates made a motion to set the public hearing on the Budgets, along with a Special Meeting for June 21, 2021, as outlined and described in the agenda. The motion was seconded by Director Steve Chucri Ayes: Jack Sellers, Bill Gates, Steve Chucri, Clint Hickman, Steve Gallardo MEETING ADJOURNED Informal Meeting Minutes Monday, May 17, 2021 Page 39 of 45 There being no further business to come before the Board, the meeting was adjourned. _____________________________ Jack Sellers, Chairman of the Board ATTEST: ___________________________ Juanita Garza, Clerk of the Board FLOOD CONTROL DISTRICT Informal Meeting Minutes Monday, May 17, 2021 Page 40 of 45 The Board of Directors for the Flood Control District convened in an Informal Session at 9:30 AM on Monday, May 17, 2021, in the Supervisors’ Conference Room 301 W Jefferson, 10th Floor Phoenix, AZ 85003, with the following members present: Jack Sellers, Chairman, District 1; Bill Gates, Vice Chairman, District 3; Steve Chucri, Director, District 2; Clint Hickman, Director, District 4; Steve Gallardo, Director, District 5. Also present: Juanita Garza, Clerk; Kelly Gardiner, Minutes Coordinator; Joy Rich, County Manager; Andrea Cummings, Legal Counsel (remote). PRESENTATION 7. PRESENTATION REGARDING THE FLOOD CONTROL DISTRICT FY 2022 RECOMMENDED BUDGET Presentation regarding the Flood Control District FY 2022 Recommended Budget. Cynthia Goelz, Chief Financial Officer Kirstin Chernin, Deputy Budget Director (C-49-21-035-X-00) Ms. Goelz reviewed the Flood Control District slide. ACTION 8. ADOPTION OF THE FLOOD CONTROL DISTRICT FY 2022 TENTATIVE BUDGET Pursuant to A.R.S. §§ 48-251 and 48-252, approve the Fiscal Year 2022 Flood Control District Tentative Budget in the amount of $137,775,245 by total appropriation for each fund and appropriation unit group for the Flood Control District. (C-49-21-033-X-00) Director Gates made a motion to approve the Fiscal Year 2022 Flood Control District Tentative Budget in the amount of $137,775,245 by total appropriation for each fund and appropriation unit group of the Flood Control District. The motion was seconded by Director Steve Chucri Ayes: Jack Sellers, Bill Gates, Steve Chucri, Clint Hickman, Steve Gallardo 9. SET PUBLIC HEARING, TRUTH IN TAXATION HEARING, AND SPECIAL MEETING ON THE FLOOD CONTROL DISTRICT FY 2022 BUDGET Set a public hearing on proposed expenditures and tax levy and Truth in Taxation hearing pursuant to ARS §§ 42-17103, 42-17104 and 48-254, for June 21, 2021 at 9:30 A.M. in the Informal Meeting Minutes Monday, May 17, 2021 Page 41 of 45 Board of Supervisors’ Conference Room, 301 W. Jefferson, 10th floor, Phoenix, Arizona, to receive public comment on the FY 2022 Flood Control District Tentative Budget as adopted, on any proposed changes to that Tentative Budget and on the proposed tax levy. Also, pursuant to ARS §§ 42-17103, 42-17104, and 42-17105, set a Special Meeting for June 21, 2021, immediately following the public hearing, at the Board of Supervisors’ Conference Room 301 W. Jefferson, 10th floor, Phoenix Arizona, to adopt the Flood Control District Final Budget for FY 2022. These meetings may be held by webinar. Additional information will be available on the Clerk of the Board’s website and on each published agenda. (C-49-21-034-X- 00) Director Gates made a motion to set the public hearing on the Budget, the Truth-In-Taxation hearing, and a Special Meeting for June 21, 2021, as outlined and described in the agenda, for the Flood Control District. The motion was seconded by Director Steve Chucri. Ayes: Jack Sellers, Bill Gates, Steve Chucri, Clint Hickman, Steve Gallardo MEETING ADJOURNED There being no further business to come before the Board, the meeting was adjourned. _____________________________ Jack Sellers, Chairman of the Board ATTEST: ___________________________ Juanita Garza, Clerk of the Board LIBRARY DISTRICT The Board of Directors for the Library District convened in an Informal Session at 9:30 AM on Monday, May 17, 2021, in the Supervisors’ Conference Room 301 W Jefferson, 10th Floor Phoenix, AZ 85003, Informal Meeting Minutes Monday, May 17, 2021 Page 42 of 45 with the following members present: Jack Sellers, Chairman, District 1; Bill Gates, Vice Chairman, District 3; Steve Chucri, Director, District 2; Clint Hickman, Director, District 4; Steve Gallardo, Director, District 5. Also present: Juanita Garza, Clerk; Kelly Gardiner, Minutes Coordinator; Joy Rich, County Manager; Andrea Cummings, Legal Counsel (remote). PRESENTATION 10. PRESENTATION REGARDING THE LIBRARY DISTRICT FY 2022 RECOMMENDED BUDGET Presentation regarding the Library District FY 2022 Recommended Budget. Cynthia Goelz, Chief Financial Officer Kirstin Chernin, Deputy Budget Director (C-49-21-032-X-00) Ms. Goelz reviewed the Library District slide. ACTION 11. ADOPTION OF THE LIBRARY DISTRICT FY 2022 TENTATIVE BUDGET Pursuant to A.R.S. §§ 48-251 and 48-252, approve the Fiscal Year 2022 Library District Tentative Budget in the amount of $35,630,552 by total appropriation for each fund and appropriation unit group for the Library District. (C-49-21-030-X-00) Director Gates expressed his appreciation to the Library District for the great job they did during the pandemic and were able to “turn on a dime” as circumstances changed and continue to serve our citizens. Director Gates made the motion to approve the Fiscal Year 2022 Library District Tentative Budget in the amount of $35,630,552, by total appropriation for each fund and appropriation unit group of the Library District. The motion was seconded by Director Steve Chucri Ayes: Jack Sellers, Bill Gates, Steve Chucri, Clint Hickman, Steve Gallardo Informal Meeting Minutes Monday, May 17, 2021 Page 43 of 45 12. SET PUBLIC HEARING, TRUTH IN TAXATION HEARING, AND SPECIAL MEETING ON THE LIBRARY DISTRICT FY 2022 BUDGET Set a public hearing on proposed expenditures and tax levy and Truth in Taxation hearing pursuant to ARS §§ 42-17103, 42-17104 and 48-254, for June 21, 2021 at 9:30 A.M. in the Board of Supervisors’ Conference Room, 301 W. Jefferson, 10th floor, Phoenix, Arizona, to receive public comment on the FY 2022 Library District Tentative Budget as adopted, on any proposed changes to that Tentative Budget and on the proposed tax levy. Also, pursuant to ARS §§ 42-17103, 42-17104, and 42-17105, set a Special Meeting for June 21, 2021, immediately following the public hearing, at the Board of Supervisors’ Conference Room 301 W. Jefferson, 10th floor, Phoenix Arizona, to adopt the Library District Final Budget for FY 2022. These meetings may be held by webinar. Additional information will be available on the Clerk of the Board’s website and on each published agenda. (C-49-21-031-X-00) Director Gates made a motion to set the public hearing on the Budget, the Truth-In-Taxation hearing, and a Special Meeting for June 21, 2021, as outlined and described in the agenda, for the Library District. The motion was seconded by Director Steve Chucri Ayes: Jack Sellers, Bill Gates, Steve Chucri, Clint Hickman, Steve Gallardo MEETING ADJOURNED There being no further business to come before the Board, the meeting was adjourned. _____________________________ Jack Sellers, Chairman of the Board ATTEST: ___________________________ Juanita Garza, Clerk of the Board STADIUM DISTRICT The Board of Directors for the Stadium District convened in an Informal Session at 9:30 AM on Monday, May 17, 2021, in the Supervisors’ Conference Room 301 W Jefferson, 10th Floor Phoenix, AZ 85003, with the following members present: Jack Sellers, Chairman, District 1; Bill Gates, Vice Chairman, District 3; Steve Chucri, Director, District 2; Clint Hickman, Director, District 4; Steve Gallardo, Director, District Informal Meeting Minutes Monday, May 17, 2021 Page 44 of 45 5. Also present: Juanita Garza, Official Record Keeper; Kelly Gardiner, Minutes Coordinator; Joy Rich, County Manager; Andrea Cummings, Legal Counsel (remote). PRESENTATION 13. PRESENTATION REGARDING THE STADIUM DISTRICT FY 2022 RECOMMENDED BUDGET Presentation regarding the Stadium District FY 2022 Recommended Budget. Cynthia Goelz, Chief Financial Officer Kirstin Chernin, Deputy Budget Director (C-49-21-027-X-00) Ms. Goelz reviewed the Stadium District slide. ACTION 14. ADOPTION OF THE STADIUM DISTRICT FY 2022 TENTATIVE BUDGET Pursuant to A.R.S. §§ 48-251, 48-252 and 48-4232, approve the Stadium District Fiscal Year 2022 Tentative Budget in the amount of $12,050,000 by total appropriation for each fund and appropriation unit group for the Stadium District. (C-49-21-025-X-00) Director Gates made a motion to approve the Fiscal Year 2022 Stadium District Tentative Budget in the amount of $12,050,000, by total appropriation for each fund and appropriation unit group of the Stadium District. The motion was seconded by Director Steve Chucri Ayes: Jack Sellers, Bill Gates, Steve Chucri, Clint Hickman, Steve Gallardo 15. SET PUBLIC HEARING AND SPECIAL MEETING ON THE STADIUM DISTRICT FY 2022 BUDGET Set a public hearing pursuant to ARS §48-4232, for June 21, 2021 at 9:30 A.M. in the Board of Supervisors’ Conference Room, 301 W. Jefferson, 10th floor, Phoenix, Arizona, to receive public comments on the FY 2022 Stadium District Tentative Budget as adopted and any proposed changes. Informal Meeting Minutes Monday, May 17, 2021 Page 45 of 45 Also, set a Special Meeting for June 21, 2021, immediately following the public hearing, at the Board of Supervisors’ Conference Room 301 W. Jefferson, 10th floor, Phoenix Arizona to adopt the Stadium District Final Budget for FY 2022. These meetings may be held by webinar. Additional information will be available on the Clerk of the Board’s website and on each published agenda. (C-49-21-026-X-00) Director Gates made an amended motion to set the public hearing on the Budget and a Special Meeting for June 21, 2021, as outlined and described in the agenda, for the Stadium District. The motion was seconded by Director Steve Chucri Ayes: Jack Sellers, Bill Gates, Steve Chucri, Clint Hickman, Steve Gallardo MEETING ADJOURNED There being no further business to come before the Board, the meeting was adjourned. _____________________________ Jack Sellers, Chairman of the Board ATTEST: ______________________________ Juanita Garza, Official Record Keeper