Town launches fiscal 2026 budget discussionsThe town will be shaping and approving its fiscal 2026 budget over the next two months. The public discussion of the budget starts with the Town Manager's Recommended Budget. This will be introduced at tonight's first council budget discussion.
How the town organizes its finances
The Town organizes its finances into a variety of separate funds, each with a specific purpose. This structure allows the town to manage different types of spending and revenues independently. While all funds are important in their own way, a few are especially critical because of the large dollar amounts involved or their direct connection to essential public services. Understanding these key funds gives residents better insight into how their tax dollars are spent.
General Fund
The town’s primary operating budget
The General Fund is the town’s main operating budget. It supports vital day-to-day services, including police, parks and recreation, planning, and administration. Most salaries, contracts, and basic expenses are paid from this fund. Its revenues come from local sales taxes, construction taxes, and state-shared income and sales taxes. Because it funds core town operations, the General Fund is closely watched during every budget cycle.
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Managing Oro Valley’s water supply
The Water Utility Fund is an enterprise fund and is used to manage the town’s water services. An enterprise fund is a separate town account used for services, like water or stormwater, that are funded entirely by user fees instead of taxes. Residents pay monthly charges that go directly into this fund to support the delivery of clean drinking water, maintenance of infrastructure, and long-term water projects. The fund also helps finance capital projects like the Northwest Recharge, Recovery, and Delivery System (NWRRDS). The town must carefully plan water rate changes to ensure this fund remains financially stable.
Community Center Fund
Supporting recreation
The Community Center Fund pays for the operations of the town’s community center, golf courses, and other recreational facilities. It is funded through a dedicated half-percent sales tax, as well as membership, golf fees, and homeowner contributions. This fund has been the focus of public debate in the past, particularly due to deficits caused by golf course operations. In recent years, the town has worked to reduce subsidies, but it still requires ongoing attention.
Capital Fund
Funding the town’s major infrastructure improvements
The Capital Fund supports the town’s non-recurring investments in buildings, equipment, vehicles, and other infrastructure. This includes everything from vehicle replacements to building renovations. Because capital projects tend to be large and infrequent, they are separated from regular operating expenses. The fund is supported by transfers from the General Fund, grants, and in some cases, debt. Decisions made in this fund shape the long-term development and maintenance of town facilities.
Highway Fund
Maintaining Oro Valley’s roadways
The Highway Fund is dedicated to maintaining and improving Oro Valley’s road system. Funded primarily through the state’s Highway User Revenue Fund (HURF), it pays for road repair, resurfacing, street sweeping, and traffic engineering. It does not cover new road construction—that falls under the Capital Fund—but it plays a crucial role in keeping existing roads in good condition. This fund ensures safe and reliable travel for residents and visitors alike.
PAG/RTA Fund
Funding major roadway improvements
The PAG/RTA Fund manages money the town receives from the Pima Association of Governments (PAG) and the Regional Transportation Authority (RTA). These funds are restricted for transportation projects, with authorized spending focused on major roadway improvements and related infrastructure. This is an important fund because it provides a significant source of outside funding for road widening, intersection upgrades, and traffic flow improvements—projects that would otherwise place a heavy burden on the town’s budget.
Other funds: Serving specialized roles
Beyond these major funds, the town manages others that serve more specific purposes. These include the Stormwater Utility Fund for drainage and flood control, the Grants and Contributions Fund for grant-funded activities, and the Impact Fee Funds used to support growth-related infrastructure. Each fund has its place, but the General Fund, Water Utility Fund, Community Center Fund, Capital Fund, the Highway Fund, and the PAG/RTA Fund are the ones with the greatest impact on residents and the town’s financial direction.
Stay tuned for updates
Stay tuned for the latest as the budget unfolds. We will continue to provide updates and insights as the Town of Oro Valley moves through its budget process.
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The Capital Fund supports the town’s non-recurring investments in buildings, equipment, vehicles, and other infrastructure. This includes everything from vehicle replacements to building renovations. Because capital projects tend to be large and infrequent, they are separated from regular operating expenses. The fund is supported by transfers from the General Fund, grants, and in some cases, debt. Decisions made in this fund shape the long-term development and maintenance of town facilities.
Highway Fund
Maintaining Oro Valley’s roadways
The Highway Fund is dedicated to maintaining and improving Oro Valley’s road system. Funded primarily through the state’s Highway User Revenue Fund (HURF), it pays for road repair, resurfacing, street sweeping, and traffic engineering. It does not cover new road construction—that falls under the Capital Fund—but it plays a crucial role in keeping existing roads in good condition. This fund ensures safe and reliable travel for residents and visitors alike.
PAG/RTA Fund
Funding major roadway improvements
The PAG/RTA Fund manages money the town receives from the Pima Association of Governments (PAG) and the Regional Transportation Authority (RTA). These funds are restricted for transportation projects, with authorized spending focused on major roadway improvements and related infrastructure. This is an important fund because it provides a significant source of outside funding for road widening, intersection upgrades, and traffic flow improvements—projects that would otherwise place a heavy burden on the town’s budget.
Other funds: Serving specialized roles
Beyond these major funds, the town manages others that serve more specific purposes. These include the Stormwater Utility Fund for drainage and flood control, the Grants and Contributions Fund for grant-funded activities, and the Impact Fee Funds used to support growth-related infrastructure. Each fund has its place, but the General Fund, Water Utility Fund, Community Center Fund, Capital Fund, the Highway Fund, and the PAG/RTA Fund are the ones with the greatest impact on residents and the town’s financial direction.
Stay tuned for updates
Stay tuned for the latest as the budget unfolds. We will continue to provide updates and insights as the Town of Oro Valley moves through its budget process.
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