The Oro Valley Town Council will consider folding the one-half percent Community Center sales tax into the town's General Fund when it returns from summer holiday in August. This will make the funds available for any use; not just use for the community fund or other recreational assets. This tax was enacted ten years ago by a 4-3 council vote when the town acquired the 47-hole El Conquistador Golf facility from HSL Properties. The reason for the tax was to provide a stable, dedicated funding source to support the newly acquired community center and golf operations, which were expected to run at a deficit in the early years. The expectation was that the tax would not be needed after that time. But, as we all know, a tax, once enacted never goes away,
Mayor’s proposal: Move the tax to the general fund
At last week’s Council meeting, Mayor Winfield proposed folding the tax into the general fund for several reasons:
Council reactions: Range of opinions, but no support for status quo
Council members expressed support for doing something different with the tax revenues. None supported leaving it as a dedicated source for the community center only:
The August meeting will be a public hearing on the proposed change. The community center and golf supporters are expected to pack the hearing and advocate for keeping the tax dedicated to their operations. Historically, they have been successful in persuading the Council to continue support. It remains to be seen whether Mayor Winfield will stick to his position or compromise as he has done in the past when face was significant opposition.
At last week’s Council meeting, Mayor Winfield proposed folding the tax into the general fund for several reasons:
- The dedicated sales tax has stabilized the finances of the community center and golf operations, which are now performing better and require less support.
- Moving the tax revenue to the general fund allows the Council to allocate funds to the town’s most pressing needs—including public safety, roads, parks, infrastructure, and community services—rather than limiting it to the community center and golf.
- The current arrangement is perceived as benefiting a narrow interest group. Yet the tax is collected from all residents and visitors. Integrating it into the general fund “reinforces unity and fairness” and reflects a shift to shared community investment.
- This change would increase fiscal flexibility as Oro Valley nears build-out and construction-related revenues decline, positioning the town for long-term financial health.
Council members expressed support for doing something different with the tax revenues. None supported leaving it as a dedicated source for the community center only:
- Vice Mayor Barrett supported the Mayor’s proposal: “I am so pleased with how well golf is doing. For the second year in a row we have not relied on any of the tax money, and that’s what it was basically set up to do ten years ago. ”
- Council Member Murphy floated the idea of dedicating the tax for all parks and recreation programs.
- Council Member Greene seemed cautious about making a change: “I think if we go back historically, this money was designated for the community center and for golf and I think that we need to keep that in mind as we begin to spend it on other issues as they come up. So, I’m for really having a full discussion on this and not acting precipitously on it tonight.”
- Council Member Jones-Ivey leaned toward the parks and recreation fund idea but expressed concern about transparency if the money goes to the general fund: “Sometimes when monies go into the general fund, it really in the past has kind of gotten mired so that transparency is lost. … My question would be: How would we then earmark that money going into the general fund so if something is needed in parks and rec, it can come back?”
- Council Member Robb summed up her support for a change stating, “I agree it’s time to share the wealth on this money.”
The August meeting will be a public hearing on the proposed change. The community center and golf supporters are expected to pack the hearing and advocate for keeping the tax dedicated to their operations. Historically, they have been successful in persuading the Council to continue support. It remains to be seen whether Mayor Winfield will stick to his position or compromise as he has done in the past when face was significant opposition.
"Putting to bed" a "bone of contention”
Golf and the community center have been a point of contention since former Mayor Hiremath first brought the acquisition to the council in 2014. The hope is that folding the sales tax into the general fund will help reduce this ongoing debate.
No discussion of permanently sunsetting the tax
One thing the Council will not consider is ending (sunsetting) the community center sales tax. As it stands, this tax means Oro Valley’s sales tax rate is 2.5% is the highest in southern Arizona. This higher rate may contribute to residents and visitors shopping outside of Oro Valley for big-ticket items, as it is less expensive to shop elsewhere.
One thing the Council will not consider is ending (sunsetting) the community center sales tax. As it stands, this tax means Oro Valley’s sales tax rate is 2.5% is the highest in southern Arizona. This higher rate may contribute to residents and visitors shopping outside of Oro Valley for big-ticket items, as it is less expensive to shop elsewhere.
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