2012-13 Budget Primer: The "Spend"

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Did you ever wonder where the Town of Oro Valley gets its money? Did you ever wonder how it spends it?  If so, we're here to help.  John Musolf, our resident accountant, has agreed to break down the budget into "understandable" pieces.  We will be publishing his work on a weekly basis.  The source of our information on the budget is the town published:  "Town Manager's Recommended Budget FY 2012-2013".

As a preface to John's future postings, here are some things for you to "ponder."

• The total budget for 2012-2013 is $97.9 million. 
• Of this amount, $34.4 million is designated as "contingency" which means it is not planned to be spend this year. So, the actual "spend" is $63.5 million.
• Of the amount to be "spent", $26.8 million is from the General Fund, $14.6 Million is for the water company, and $24.1 million is for everything else which includes spending on Oro Valley roadways, servicing the interest in the town's bonds, and spending on the new employee benefit self insurance fund.

The water utility is included in the town budget but is really an enterprise that could standalone. This means it is similar to any utility, like Tucson Electric Power and Southwest Gas, that charges customers (town resident and commercial business) for water it provides and charges the town for services (such as distribution. billing, and meters) the utility provides to town resident and commercial customers.

The storm water utility is also included in the town budget but is really an enterprise that could standalone. This means it is similar to a private company that charges the town for services. In this case, the services are storm water damage protection. You are charged for this service by paying a storm water fee that is added to your water bill.

The general fund is the one that pays for the running of the town. This general fund (operating fund) represents the spending by the town to run our police department, parks, library, the development and infrastructure department and other town services.

The operating fund is the fund that you hear most about. It is the primary focus of the Town Council when it discusses spending.  The primary sources of funds that go into the general fund are:

• $12.3 Million:  Tax revenues and "other sources"
•     9.2 Million:  State shared revenue
•     5.3 Million:  All other, which includes grants ($2 million), charges for services ($1.2 million) and licensed, fees and fines ($1.1 million)

The General Fund is the total source of operating funds for most of the town's operating departments with one major exception: The Development and Infrastructure Department whose "general fund budget" of $3.8 million is dwarfed by funding from other "funds" of $5.9 million.  Hopefully, John will "demystify" this for us.
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