Council rejects two proposed taxesLast week, the Oro Valley Town Council rejected two proposed new taxes: A commercial rental tax and a telecommunications tax. The measures were voted down by four councilmembers. Council members cite lack of demonstrated need and need for more though vetting of spending and spending priorities
The reasoning varied. In general, Councilmembers Barrett, Murphy, Nicolson, and Robb said the Council and Town staff need to demonstrate more clearly that a financial shortfall will occur in 2030 and that new taxes are the only viable solution. Councilmember Murphy summarized the concerns of those opposed, stating, “To my knowledge, there still hasn’t been an audit regarding operational efficiency since we first started talking about this. … I absolutely believe that our residents and our businesses deserve that before we talk about taxes.”
Opposition was also expressed by the Greater Oro Valley Chamber of Commerce, which represents more than 500 businesses. Chamber President Kristin Sharp said, “It’s already more expensive to do business here, and enacting these taxes would only widen that gap.” In addition, comments from mayoral candidate Mark Napier, read into the record, reflected concerns that the Town may be facing a structural imbalance between revenues and expenditures and that the issue warrants closer examination before new taxes are adopted.
And Vice Mayor Barrett "set the record straight"
Vice Mayor Barrett responded to criticism from former Council member Joe Hornat, who alleged that Council spending created the Town’s financial challenges. “I do not think that Oro Valley is at a crisis point in any way, shape, or form,” Barrett said, cautioning against characterizing the situation as urgent. Barrett accurately reflected the facts. The spending Hornat cited was addressed by reducing costs elsewhere, particularly by what she described as excessive golf-related losses incurred during Hornat’s tenure. She noted that this Council paid down the police pension debt inherited from Hornat's Council. Barrett reminded the group that the most recent tax increase was a half-cent sales tax increase enacted during Hornat’s time on the Council.
No clear path forward
The discussion highlighted a split within the Council on how to proceed. Mayor Winfield has said he believes Town staff are doing a strong job managing costs and operating efficiently,. It appears that he does not believe that an independent comprehensive review of spending and priorities is necessary. Winfield, along with Councilmember Greene, expressed confidence at the meeting that Town staff can work through the situation and framed support for the proposed taxes as a way to address long-term financial obligations proactively. Strategic planning session may test those differences
Whether those differing views will be addressed in the Council’s tomorrow's council strategic planning session remains an open question. The Town has not published the agenda. We do not know how the agenda was developed or the extent to which it was shaped by Town management. As a result, it remains unclear whether the session will include a broad examination of spending levels and priorities and a critical review of the Town’s long-range financial forecasts.
The discussion highlighted a split within the Council on how to proceed. Mayor Winfield has said he believes Town staff are doing a strong job managing costs and operating efficiently,. It appears that he does not believe that an independent comprehensive review of spending and priorities is necessary. Winfield, along with Councilmember Greene, expressed confidence at the meeting that Town staff can work through the situation and framed support for the proposed taxes as a way to address long-term financial obligations proactively. Strategic planning session may test those differences
Whether those differing views will be addressed in the Council’s tomorrow's council strategic planning session remains an open question. The Town has not published the agenda. We do not know how the agenda was developed or the extent to which it was shaped by Town management. As a result, it remains unclear whether the session will include a broad examination of spending levels and priorities and a critical review of the Town’s long-range financial forecasts.
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