City Council Meetings

MINUTES OF THE PEORIA CITY COUNCIL CITY OF PEORIA, ARIZONA PEORIA PUBLIC SAFETY ADMINISTRATION BUILDING 8351 WEST CINNABAR AVENUE November 15, 2019 A City Council Workshop of the City Council of the City of Peoria, Arizona was convened at the Public Safety Administration Building, 8351 West Cinnabar Avenue, Peoria, Arizona in open and public session at 9:01 a.m. Members Present: Mayor Cathy Carlat; Vice Mayor Bridget Binsbacher; Mayor Pro Tem Vicki Hunt; Councilmembers Denette Dunn, Jon Edwards, Michael Finn and Bill Patena. Members Absent: None Municipal Officials Present: Jeff Tyne, City Manager; Andy Granger, Deputy City Manager; Katie Gregory, Deputy City Manager; Erik Strunk, Deputy City Manager; Vanessa Hickman, City Attorney; Lori Dyckman, Acting City Clerk; Thomas Adkins, Intergovernmental Affairs Director; Sonia Andrews, Finance Director; Kevin Burke, Public Works Director; Rick Buss, Economic Development Director; Kris Dalmolin, Information Technology Director; Chris Hallett, Neighborhood and Human Services Director; Chris Jacques, Planning and Community Development Director; Adina Lund, Development and Engineering Director; Christine Nickel, Human Resources Director, Benny Pina, Deputy Police Chief; John Sefton, Parks, Recreation, and Community Facilities Director; Jennifer Stein, Office of Communications Director; Jay Davies, Chief of Staff; and Sharon Roberson, Assistant to the City Manager. Audience: No members of the public were present. Subjects for Discussion 1. Mayor’s Opening Mayor Carlat addressed the Council with opening remarks regarding: • Peoria’s economic environment both current and future • 2006-2007 forecast and prosperity o Forecast predicts the potential for a severe downturn o Peoria’s ability to adapt and prepare for the downturn o Peoria’s response to the previous downturn illustrating Peoria’s financial stability • Staff’s ability to take council recommendations and implement them • Financial stability in Peoria • Upcoming budget season City Council Workshop Minutes November 15, 2019 Page 2 of 7 2. City Manager’s Comments Jeff Tyne, City Manager, addressed Council regarding: • Focus on national trends • Potential for future technology and how it will impact Peoria • Visionary leadership o Capacity to turn visions into reality o Courage of staff to face uncertainty • Looking forward: o National Economy  Recession concerns within the next 1-3 years 3. Real Estate Development and Market Trends Katie Gregory, Deputy City Manager, presented regarding the national economy. Information included: • Gross domestic product (GDP) • Residential construction in a slump • Manufacturing and Trade in a downward trend • Major US economy focus • Stock market • Interest rates • Consumer confidence index • Business confidence index • Broader global slow down • Recession in the next 1-3 years o Not as long or as severe as the previous recession Greg Vogel, Land Advisors Organization, presented an economic overview, including: • Phoenix market overview – 3rd quarter 2019 o Market growth o 2019 population averages and expected growth Average decennial growth rates 1990-2040 o Total single family and multifamily permits issued  Apartment construction pipeline  Arizona employment makeup  Median resale home sales prices  New and resale home sales and median prices  New home sales by price range  Resale home sales by price range  Top 40 builders by permits City Council Workshop Minutes November 15, 2019 Page 3 of 7  Sales per active subdivision within the last 12 months o Land transactions annual volume • Future projects o West Valley  Land to development o North Peoria  Vacant land  Lot inventory and absorption o South Peoria  Infill only • General plan goals Discussion ensued regarding: • Community Facilities Districts and the risk to City • Partnerships with State Land 10:08 a.m. Mayor Carlat recessed the meeting and resumed at 10:18 a.m. 4. Peoria Development Forecast Chris Jacques, Planning and Community Development Director, presented regarding: • Strong interest in horizontal multifamily residential (bungalows) • Homebuilder’s interest in smaller lot sizes • Historical and projected rate of growth • Snapshot of Peoria from 1965 to 2017 • Major land ownership • Housing units permitted in Peoria o Factors impacting permitting o Socioeconomic trends • Increasing popularity of horizontal multifamily residents • Residential Growth • Shaping the community o Prospective opportunities o General Plan 2040 o Zoning Ordinance updates o Design review o Growth-related considerations Discussion ensued regarding: • Design review standards • Multifamily development and height limits City Council Workshop Minutes November 15, 2019 Page 4 of 7 5. Economic Development Plan Katie Gregory, Deputy City Manager, presented an economic overview including: • Economic Prosperity • Promoting economic development • Higher education and economic growth o Knowledge base map o National real estate overview o Geography of work o Mega-Regions of North America • Regional jobs in key industries o Aerospace o Finance o Healthcare o Information Technology o Manufacturing o Warehouse and Distribution • Where people living in Peoria work • Where people working in Peoria live • The Peoria approach o Infrastructure o Build Peoria’s brand o When possible, “Grow from Within” o Sophisticated regional perspective o Focus on what we can have immediately o Meaningful partnerships Rick Buss, Economic Development Director, presented on Peoria’s Economic Prosperity including: • Vision and strategic alignment o General Plan o Council vision • Economic development structure o Partnerships o Customer service • Job attraction and expansion o Targeted industries, companies and markets o Target markets aligned with target industry clusters  Alignment with Arizona Commerce Authority (ACA)  Alignment with Greater Phoenix Economic Council (GPEC) o Areas of Operation  Class A office space – weakness and opportunity City Council Workshop Minutes November 15, 2019 Page 5 of 7  Industrial, Business Park space • High-tech and Industrial manufacturing  Targeting funding and capital markets • Prospect selection criteria o Strong long-term vision o Business-friendly council o Education o Low regulation o Low cost of doing business o Quality of life o Workforce o Building a community of distinction Discussion ensued regarding: • How to improve space available to attract prospects • Good relationships with council and willingness to assist with prospects 12:16 p.m. Mayor Carlat recessed the meeting and resumed at 12:39 p.m. 6. Financial/Budget Outlook Sonia Andrews, Finance and Budget Director, presented regarding: • Peoria’s fiscal condition • Peoria’s 5-year forecast • Purpose of reviewing fiscal condition o Provide valuable information on current and future financial state o Highlight potential problems • What elected officials should ask o Are we meeting our financial obligations o Are we fiscally sound o Are we fiscally resilient o What are the challenges • Peoria’s current sound fiscal condition • Local sales tax growth o Volatility of sales tax revenue o Volatility of intergovernmental revenues o Property tax capacity o General government revenues per capita o General government expenditures per capita o Using governmental unrestricted fund balances as a percentage of revenues Discussion ensued regarding best practices for the use of reserve monies. City Council Workshop Minutes November 15, 2019 Page 6 of 7 Ms. Andrews continued regarding: • Debt o Total debt outstanding o Low debt per capita • Unfunded pension liability • Assessment of Peoria’s 2019 fiscal condition o Challenges  Economic uncertainties  Funding PSPRS Barry Houg, Deputy Finance and Budget Director, presented regarding the 5-year forecast. Information included: • General Fund o Personnel costs o Sales tax o Expenditure forecasts for FY21-FY25 o Revenue increases for FY21-FY25 o One-Time funds available  Applying one-time funds to: • PSPRS pension liability • Worker’s compensation • Operating and Capital requests • Half-Cent Sales Tax o Current uses o Expenditure forecasts • Transportation Funds o Revenue forecasts • Enterprise funds o Rates for FY2021 o Revenue Forecast o Rate Studies ADJOURNMENT: Being no further business to come before the Council, the Council Workshop was duly adjourned at 1:38 p.m. ______________________________________ Cathy Carlat, Mayor City Council Workshop Minutes November 15, 2019 Page 7 of 7 CERTIFICATION AND ATTESTATION I hereby certify that the foregoing minutes are a true and correct summary of the proceedings of the City Council Workshop of the City Council of Peoria, Arizona held on the 15th day of November, 2019. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 7th day of January, 2020. (Seal) ______________________________________ Rhonda Geriminsky, City Clerk