HomeMy Public PortalAbout01 - PWMD Report PresentationPueblo West Metropolitan District Comprehensive
Fiscal and Sustainability Analysis
November 12, 2019
Background
11/13/2019Pueblo West Metropolitan District Comprehensive Fiscal and Sustainability Analysis 2
Formed as a
Metropolitan
District in 1969
McCulloch
Properties Inc.
25,990 Acres to
build a planned
community in
phases
Revised the
Service Plan in
1972
Added 4,000
acres. Platted the
entire area and
removed phasing
Mentioned water
as problematic for
the first time
" I n 1 9 7 2 , t h e d e v e l o p e r p r o j e c t e d a p o p u l a t i o n o f
3 9 , 0 0 0 i n 2 0 2 0
��T o d a y t h e p o p u l a t i o n i s 3 0 , 7 0 0
��8 1 % o f T a r g e t
" I n 1 9 7 2 , t h e d e v e l o p e r p r o j e c t e d a t o t a l a s s e s s e d
v a l u e f o r t h e d i s t r i c t o f $ 4 2 8 , 9 0 0 , 0 0 0
��T o d a y t h e t o t a l a s s e s s e d v a l u a t i o n i s a r o u n d
$ 2 7 0 , 0 0 0 , 0 0 0
��6 0 % o f T a r g e t
1 1 / 1 3 / 2 0 1 9 P u e b l o W e s t M e t r o p o l i t a n D i s t r i c t C o m p r e h e n s i v e F i s c a l a n d S u s t a i n a b i l i t y A n a l y s i s 3
1 9 7 2 P r o j e c t i o n s
Another
McCulloch
Development
Formed as
District in
1963
Incorporated
as a City in
1978
Lake Havasu City, Arizona
11/13/2019Pueblo West Metropolitan District Comprehensive Fiscal and Sustainability Analysis 4
In 1964, the 16,530 acres had one
paved road.
Today is home to over 53,000 people
and has 775,000 visitors annually
��T o c o m p l e t e t h e s t u d y , E h l e r s e n g a g e d A n d e r s o n A n a l y t i c s w h o a m a s s e d
d a t a n e c e s s a r y t o p r e d i c t t h e f u t u r e p o p u l a t i o n o f t h e D i s t r i c t o v e r t h e n e x t
t e n y e a r s .
��A n d e r s o n w a s a l s o i n s t r u m e n t a l i n e x p l a i n i n g h o w t h e i s s u e o f s u f f i c i e n t
p o t a b l e w a t e r m i g h t t h w a r t d e v e l o p m e n t .
��T h e y p r o v i d e d d a t a r e g a r d i n g p o s s i b l e c o m p a r a b l e c i t i e s t h a t e n a b l e d
P W M D t o s e l e c t 6 c o m p a r a b l e c i t i e s .
��A n d t h e y u s e d d a t a f r o m t h e s e c i t i e s t o o u t l i n e t h e c o s t s t h a t w o u l d b e
i n v o l v e d t o m o v e f r o m a D i s t r i c t t o a n i n c o r p o r a t e d C i t y .
��T h e i r d a t a i s s c a t t e r e d t h r o u g h o u t t h e r e p o r t , a n d t h e i r c o m p l e t e r e p o r t s o n
p o p u l a t i o n a n d c o m p a r a b l e c i t y r a w d a t a a r e a p p e n d e d t o t h e r e p o r t .
A n d e r s o n A n a l y t i c s
1 1 / 1 3 / 2 0 1 9 P u e b l o W e s t M e t r o p o l i t a n D i s t r i c t C o m p r e h e n s i v e F i s c a l a n d S u s t a i n a b i l i t y A n a l y s i s 5
��P a u l W i s o r o f G a r f i e l d & H e c h t , P . C . p r o v i d e d l e g a l
a d v i c e w h e r e n e e d e d d u r i n g t h e s t u d y .
��H e s p e c i f i c a l l y a s s i s t e d i n c l a r i f y i n g t h e p r o c e s s f o r
d i s s o l u t i o n o f t h e d i s t r i c t
��A n d h e p r o v i d e d t h e p r o c e s s f o r i n c o r p o r a t i o n .
��H e f u r t h e r r e v i e w e d t h e r e p o r t f o r l e g a l
i n c o n s i s t e n c i e s .
G a r f i e l d & H e c h t
1 1 / 1 3 / 2 0 1 9 P u e b l o W e s t M e t r o p o l i t a n D i s t r i c t C o m p r e h e n s i v e F i s c a l a n d S u s t a i n a b i l i t y A n a l y s i s 6
11/13/2019 7Pueblo West Metropolitan District Comprehensive Fiscal and Sustainability Analysis
Executive Summary
Municipality Population General Government Taxes Per Capita Tax
Town of Yucca Valley, California 21,483 11,936,885$ 555.64$
Windsor 23,386 26,154,538$ 1,118.38$
Fountain 28,799 19,038,490$ 661.08$
Pueblo West Metropolitan District 31,704 5,875,409$ 185.32$
Lake Havasu City, Arizona 53,463 39,049,359$ 730.40$
Rio Rancho, New Mexico 93,317 41,304,341$ 442.62$
Arvada 115,320 89,680,000$ 777.66$
Non-Modified Current Structure
•How far can you go on 20.23 mills forever?
But it’s not a viable, sustainable option
Sustainable Metropolitan District
•Starts with a successful election creating a one-cent
sales tax (City of Pueblo rate is 3.7%)
But it doesn’t stop there
Incorporation
•Brings new tools and autonomy to the community
But there’s a cost
11/13/2019Pueblo West Metropolitan District Comprehensive Fiscal and Sustainability Analysis 8
Financial Options/Models
11/13/2019 9Pueblo West Metropolitan District Comprehensive Fiscal and Sustainability Analysis
Financial Options/Models
39.4848 mills
Two More Cents
for a total of Three
Cents
7.1637 mills for
operations
46.6484 mills
$71.99/month
Incorporated
20.23 mills
One Cent to Build
and Operate Fire
Station #2
19.2548 mills for
operations
39.4848 mills
$60.93/Month
Sustainable
20.23 mills
No Sales Tax
No Additional
20.230 mills
$31.22/Month
Non-Modified
Incorporation plan assumes Sustainable Model is accomplished first.
11/13/2019Pueblo West Metropolitan District Comprehensive Fiscal and Sustainability Analysis 10
Financial Model Assumptions
The average home price is $259,000
General Fund Unassigned Fund Balance needs to be
consistently at 25% of expenditures for the year per
District Board Policy. There’s a bit more to your policy, but
the model hits this, most impactful tenet
General revenues increased by 2%/year, investments by
1.5%
Specific Ownership increased by 5%/year
Revaluation increases for property tax equaled 5% in
2020, 3% in 2022 and 2% every other year after
Expenditures increased by 4%/year
Residential property values grow according to Anderson
predictions
Commercial remains at current levels
One
cent
•$1,500,000
•PWMD Finance
Office
6
mills
•Each cent of sales
tax equals 6 mills
of property tax (or
$9.26/month to
homeowner)
Limits
•District: Safety,
Streets,
Transportation
•City: Any purpose
Sales Tax
11/13/2019Pueblo West Metropolitan District Comprehensive Fiscal and Sustainability Analysis 11
11/13/2019Pueblo West Metropolitan District Comprehensive Fiscal and Sustainability Analysis 12
Non-Modified Option
0 200 400 600 800 1000 1200
Town of Yucca Valley, California
Windsor
Fountain
Pueblo West Metropolitan District
Lake Havasu City, Arizona
Rio Rancho, New Mexico
Arvada
Tax Revenue Per Capita
Non-Modified Current Structure
11/13/2019 13Pueblo West Metropolitan District Comprehensive Fiscal and Sustainability Analysis
0%
10%
20%
30%
40%
50%
60%
70%
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Allocation of General Fund Balance
Nonspendable Restricted (TABOR Emergency Reserves)
Assigned (Equipment)Unassigned
Fund Balance as a % of Expenditures
Non-Modified Option
Property Tax
11/13/2019Pueblo West Metropolitan District Comprehensive Fiscal and Sustainability Analysis 14
PWMD has existed on 20.23 mills
property tax for the last 30 years
69% of PWMD
Assessed Value is
residential and is
limited by
Gallagher
In 1982 when
Gallagher passed,
21% of actual
value to your
home was
assessed. Today
it’s 7.15%
If the residential
assessment rate
were still 21%,
McCulloch’s
prediction of
assessed value
today would have
been exceeded.
��A d d i n g a n y a d d i t i o n a l f a c i l i t i e s o r s e r v i c e s w i t h o u t
i n c r e a s i n g r e v e n u e s w i l l n e c e s s i t a t e r e d u c t i o n s i n o t h e r
s e r v i c e s .
q�F i r e S t a t i o n a n d i t s o p e r a t i o n s
" O n e C e n t S a l e s T a x
q�C i v i c B u i l d i n g
" D O L A G r a n t
" I n s u r a n c e P r o c e e d s
" F i n a n c i n g
1 1 / 1 3 / 2 0 1 9 P u e b l o W e s t M e t r o p o l i t a n D i s t r i c t C o m p r e h e n s i v e F i s c a l a n d S u s t a i n a b i l i t y A n a l y s i s 1 5
S u s t a i n a b l e M e t r o p o l i t a n D i s t r i c t
PWMD is losing valuable,
productive employees to local,
competing governments and is
finding it difficult to attract
new employees.
•In 2019 comps were assembled for similar
positions in the City of Pueblo, Pueblo County,
Ca �𝑛𝑛on City and the City of Fountain.
•Pueblo West Metropolitan District’s wage scale
was on average 18% below these nearby,
competing local governments.
•Consistent underpayment leads to costly
dissatisfaction among employees. It erodes the
community trust when employees disengage.
The longer the problem exists, the more
difficult it is to fill the gap.
11/13/2019Pueblo West Metropolitan District Comprehensive Fiscal and Sustainability Analysis 16
Market Rate Salaries
In the sustainable mode, the District is 37 FTE short-staffed
•4.5 FTE in General Government
•15 FTE in Parks and Recreation
•17.5 in Streets and Engineering
11/13/2019Pueblo West Metropolitan District Comprehensive Fiscal and Sustainability Analysis 17
City Arvada Rio Rancho Lake
Havasu
Pueblo
West
Fountain Windsor Yucca
Valley
Average
Total FTE*441.05 429 351 86 147.7 110 34.5 228.46
Population 115,320 93,317 53,463 30,734 28,799 23,386 21,483 52,357
FTE Per 1,000 3.825 4.60 6.57 2.80 5.13 4.70 1.61 4.36
Staffing Levels
The FTE information excludes fire personnel.
11/13/2019 18Pueblo West Metropolitan District Comprehensive Fiscal and Sustainability Analysis
Purpose for New
Revenue Mill Levy
Taxpayer Cost per
$259,000 home
Sales Tax First Year Revenue Generation
Fire Safety One Cent $1,500,000
Civic Building $0.00 $0.00 (Grant funds,insurance,and
Certificate of Participation
financing.)
Staff Salaries 3.3761 $5.21/Month $891,891
Increased Staff &
maintain 25%FB
15.8787 $24.51/month $4,194,804
Total 19.2548 $29.71/month One Cent $5,086,695
Cost to Sustain the District
11/13/2019 19Pueblo West Metropolitan District Comprehensive Fiscal and Sustainability Analysis
0%
10%
20%
30%
40%
50%
60%
70%
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Allocation of General Fund Balance
Nonspendable Restricted (TABOR Emergency Reserves)
Assigned (Equipment)Unassigned
Fund Balance as a % of Expenditures
General Fund –Sustainable Mode
Incorporation
11/13/2019Pueblo West Metropolitan District Comprehensive Fiscal and Sustainability Analysis 20
Implement all
Remedies of
Sustainable Mode
–37 employees
added
2FTE Admin,
Clerk & Court
1.5 FTE
Finance and
Human
Resources
1.5 FTE Office
of Emergency
Management
2.0 FTE Public
Works
1.0 FTE
Information
Technology
3.0 FTE
Community
Planning
��P o l i c i n g S e r v i c e s
��A s a n I n c o r p o r a t e d C i t y , P u e b l o W e s t w i l l b e r e q u i r e d t o
p r o v i d e p o l i c i n g s e r v i c e s t o i t s r e s i d e n t s a n d b u s i n e s s e s
��T h e P u e b l o C o u n t y S h e r i f f s O f f i c e ( P C S O ) c u r r e n t l y p r o v i d e s
t h i s s e r v i c e
��I f t h e D i s t r i c t i s s a t i s f i e d w i t h P C S O , i t i s r e c o m m e n d e d t h a t
t h e n e w l y i n c o r p o r a t e d c i t y c o n t r a c t w i t h t h e C o u n t y t o
c o n t i n u e t h a t s e r v i c e
��M u n i c i p a l C o u r t
��I f t h e C i t y c o n t r a c t s f o r p o l i c i n g s e r v i c e s w i t h P C S O , a p a r t -
t i m e c o n t r a c t e d m u n i c i p a l j u d g e a n d c i t y p r o s e c u t o r s h o u l d
b e s u f f i c i e n t t o h a n d l e o r d i n a n c e v i o l a t i o n s .
1 1 / 1 3 / 2 0 1 9 P u e b l o W e s t M e t r o p o l i t a n D i s t r i c t C o m p r e h e n s i v e F i s c a l a n d S u s t a i n a b i l i t y A n a l y s i s 2 1
P o l i c e a n d M u n i c i p a l C o u r t s
The District will likely be comfortable with City Government
Home Rule Charter
Size of Council
Mayoral Power
City Manager Authority
Authority to regulate local and municipal matters
Required to enforce local laws
Greatest authority over land use and over types of
businesses allowed and their location
May self-collect sales tax
11/13/2019Pueblo West Metropolitan District Comprehensive Fiscal and Sustainability Analysis 22
City Government
There are multiple reasons to incorporate
Removes the threat of annexation by another local
government
Provides the citizens with definitive control of land uses
Opens up sales, excise, occupation tax opportunities.
Brings a number of commercial and industrial incentive
tools
Commercial and industrial development brings 3
times the property tax revenue than residential.
11/13/2019Pueblo West Metropolitan District Comprehensive Fiscal and Sustainability Analysis 23
Reasons to Incorporate
Cost to Incorporate
11/13/2019Pueblo West Metropolitan District Comprehensive Fiscal and Sustainability Analysis 24
39.4848 mills
Two More Cents for
a total of Three
Cents
7.1637 mills for
operations
46.6484 mills
$71.99/month
Incorporated
20.23 mills
One Cent to Build
and Operate Fire
Station #2
19.2548 mills for
operations
39.4848 mills
$60.93/Month
Sustainable
20.23 mills
No Sales Tax
No Additional
20.230 mills
$31.22/Month
Non-Modified
Percapita Impact
11/13/2019Pueblo West Metropolitan District Comprehensive Fiscal and Sustainability Analysis 25
$- $200 $400 $600 $800 $1,000 $1,200
Town of Yucca Valley, California
Windsor
Fountain
PWMD Non-Modified
PWMD Sustainable Metro
PWMD Incorporation *
Lake Havasu City, Arizona
Rio Rancho, New Mexico
Arvada
Incorporation Process
11/13/2019Pueblo West Metropolitan District Comprehensive Fiscal and Sustainability Analysis 26
Fall 2021 PCSO
Contract
January 2022
Petitions,
Budget
August 2022
Questions to
County Clerk
November 2022
Election; then form a
Charter Commission
May 2023 Charter
Election and Election
of Officers
July 2023 New
City Begins
Summary
11/13/2019Pueblo West Metropolitan District Comprehensive Fiscal and Sustainability Analysis 27
Do nothing, but plan to cut future services and
staff.
Do the heavy lifting and ensure a healthy
sustainable District.
Invest a little more and take control of your
community’s destiny.