Thursday, July 3, 2025
Wednesday, July 2, 2025
Town Considering Increase in Parks and Recreation Fees
This is the final article in our series discussing potential new taxes and fee increases that Oro Valley town staff are recommending to the Town Council. Last week, we discussed three new taxes. Yesterday, we covered a recommended increase in the stormwater utility fee. Today, we discuss proposed increases in Parks and Recreation fees.
Parks and Recreation fee increases proposed for 2026
Oro Valley is considering a wide range of increases to its Parks and Recreation fees for fiscal year 2025–26. These proposed fee hikes are part of a broader package of increases that town staff is recommending for several town services and new taxes as discussed with the town council two weeks ago.
What increases are being proposed?
Under the proposal, membership fees for facilities like the Community and Recreation Center (CRC), Oro Valley Aquatic Center (OVAC), and Archery Range would see increases of $5 to $30 per year, depending on the type of membership. For example, an adult CRC Classic Membership would rise from $40 to $45 per month, while a CRC Premium Family Membership would increase from $100 to $130 per month. Drop-in and family rates are also set to rise. Facility rental fees for fields, parks, ramadas, and lap lanes will also go up. New event rates are being introduced for places like Naranja Park, with hourly rates of $425 and full-day rates of $2,000 for residents and higher rates for non-residents. The proposal also raises rates for pickleball courts, special events, and after-hours rentals.
Why are fee increases being considered now?
Town staff explained that most of these fees have not kept up with inflation or the true cost of maintenance, staffing, and facility upgrades. Many membership and rental rates have remained unchanged since 2013 or even earlier. The increase is intended to support continued investment in Oro Valley’s recreation system, ensuring that facilities remain safe, high-quality, and accessible. By updating the fee schedule, staff hope to keep programs sustainable without relying entirely on tax dollars to subsidize operations.
What does the council think?
During the discussion, council members generally agreed on the importance of keeping the parks system financially healthy, but some raised concerns about the impact of higher costs on families, seniors, and those who use the facilities most often. One council member noted, “We want to keep our parks and recreation programs accessible to all residents, even as we work to cover costs.” Council members asked staff to clearly communicate why the increases are needed and to monitor community feedback as new rates are rolled out.
Public input is encouraged—get involved
The fee increase proposal is still under review and will go through a public engagement process before any changes take effect. Residents and users of Parks and Recreation facilities are encouraged to review the proposed rates and share their thoughts at upcoming meetings. The council is especially interested in hearing how the changes might affect residents’ ability to participate in programs. If you have an opinion or concern, now is the time to get involved and make your voice heard. Here's how.
Oro Valley is considering a wide range of increases to its Parks and Recreation fees for fiscal year 2025–26. These proposed fee hikes are part of a broader package of increases that town staff is recommending for several town services and new taxes as discussed with the town council two weeks ago.
The Parks and Recreation fee proposal covers membership fees, rental rates, and facility charges for residents and non-residents alike. Many of these fees have not been adjusted in over a decade, even as the cost of providing recreational services has gone up. The new rates are designed to better align with actual operating costs and to bring Oro Valley’s fees in line with those of similar communities.
What increases are being proposed?
Under the proposal, membership fees for facilities like the Community and Recreation Center (CRC), Oro Valley Aquatic Center (OVAC), and Archery Range would see increases of $5 to $30 per year, depending on the type of membership. For example, an adult CRC Classic Membership would rise from $40 to $45 per month, while a CRC Premium Family Membership would increase from $100 to $130 per month. Drop-in and family rates are also set to rise. Facility rental fees for fields, parks, ramadas, and lap lanes will also go up. New event rates are being introduced for places like Naranja Park, with hourly rates of $425 and full-day rates of $2,000 for residents and higher rates for non-residents. The proposal also raises rates for pickleball courts, special events, and after-hours rentals.
Why are fee increases being considered now?
Town staff explained that most of these fees have not kept up with inflation or the true cost of maintenance, staffing, and facility upgrades. Many membership and rental rates have remained unchanged since 2013 or even earlier. The increase is intended to support continued investment in Oro Valley’s recreation system, ensuring that facilities remain safe, high-quality, and accessible. By updating the fee schedule, staff hope to keep programs sustainable without relying entirely on tax dollars to subsidize operations.
What does the council think?
During the discussion, council members generally agreed on the importance of keeping the parks system financially healthy, but some raised concerns about the impact of higher costs on families, seniors, and those who use the facilities most often. One council member noted, “We want to keep our parks and recreation programs accessible to all residents, even as we work to cover costs.” Council members asked staff to clearly communicate why the increases are needed and to monitor community feedback as new rates are rolled out.
Public input is encouraged—get involved
The fee increase proposal is still under review and will go through a public engagement process before any changes take effect. Residents and users of Parks and Recreation facilities are encouraged to review the proposed rates and share their thoughts at upcoming meetings. The council is especially interested in hearing how the changes might affect residents’ ability to participate in programs. If you have an opinion or concern, now is the time to get involved and make your voice heard. Here's how.
- - -
Tuesday, July 1, 2025
Town Staff Proposes Increase In Stormwater Utility Fee
This is the second article in our series discussing potential new taxes and fee increases that Oro Valley town staff are recommending to the Town Council. Last week, we discussed three new taxes. Today, we cover a recommended increase in the stormwater utility fee. Tomorrow, we will discuss proposed increases in Parks and Recreation fees.
- - -
Oro Valley staff proposes a stormwater fee increase as part of a package of revenue seeking options
The Town of Oro Valley is considering an increase to its monthly stormwater utility fee beginning in fiscal year 2025–26. This fee is added into the town monthly water bill.
The Town of Oro Valley is considering an increase to its monthly stormwater utility fee beginning in fiscal year 2025–26. This fee is added into the town monthly water bill.
This increase is part of a package of proposed new taxes and recreational facility user increases that staff presented two weeks ago in a study session to the Oro Valley Town Council.
About the Stormwater Utility
Oro Valley’s Stormwater Utility was established in July 2001 as an enterprise fund. This means that it operates independently from the Town’s general fund and is supported entirely by user fees. The utility was created to comply with federal and state stormwater regulations, including water quality and floodplain management standards, and to ensure the Town could fund the planning, construction, maintenance, and monitoring of local stormwater infrastructure. By keeping the utility self-supporting, Oro Valley is able to provide dedicated resources for critical drainage and flood control projects, without relying on general tax revenues.
First rate increase since the utility was created in 2001
According to town staff, the stormwater utility fee, first implemented in 2001 when the utility was created, has remained unchanged. Now, Town staff and the town's Stormwater Utility Commission are recommending a $2.00 per month increase for each Equivalent Residential Unit (ERU)—a billing unit that represents the amount of stormwater runoff generated by a typical single-family home. An ERU is also used to calculate charges for commercial properties based on their impervious surface area. The new proposal would raise the base rate from $4.50 to $6.50 per ERU for both residential and commercial properties. This marks the first major change to the stormwater fee since its creation and is intended to support both ongoing operations and a growing list of capital improvement projects.
Current fee cannot fund new projects
Staff stated that the reason for the proposed increase is that the current rate only covers day-to-day operations and routine maintenance. The current fee level does not generate enough revenue to fund capital improvement projects. For example, the Calle Concordia channel improvement project and the La Cholla wash crossing at Lambert Lane are both on hold due to insufficient stormwater funds. There are other examples of projects proposed by not done around town [See panel right].
Staff stated that the reason for the proposed increase is that the current rate only covers day-to-day operations and routine maintenance. The current fee level does not generate enough revenue to fund capital improvement projects. For example, the Calle Concordia channel improvement project and the La Cholla wash crossing at Lambert Lane are both on hold due to insufficient stormwater funds. There are other examples of projects proposed by not done around town [See panel right].
New rates will affect both residents and businesses?
If approved, developed residential properties would see their monthly stormwater feed charge go from $4.50 to $6.50, or an increase of $24 per year per household. Commercial properties, which are billed based on the amount of impervious surface area, would see a similar per-ERU increase. The change is projected to generate approximately $2.2 million in stormwater revenue in FY 2025–26, a substantial increase from current collections of $1.5 million. Staff say this will allow the utility to cover routine costs, meet reserve requirements, and fund some capital improvements without needing to dip into emergency reserves.
What did council members have to say?
Speaking at the study session, several council members acknowledged the need to maintain Oro Valley’s infrastructure and prepare for future challenges. However, concerns were raised about the timing and size of the increase, especially given recent or proposed increases in other fees and taxes. One Councilmember stated that “We need to be sure residents understand why this increase is needed and how the money will be used.” Other members stressed the importance of annual reviews to avoid large, sudden jumps in the future. This is the rate increase model that is used by the Water Utility.
Speaking at the study session, several council members acknowledged the need to maintain Oro Valley’s infrastructure and prepare for future challenges. However, concerns were raised about the timing and size of the increase, especially given recent or proposed increases in other fees and taxes. One Councilmember stated that “We need to be sure residents understand why this increase is needed and how the money will be used.” Other members stressed the importance of annual reviews to avoid large, sudden jumps in the future. This is the rate increase model that is used by the Water Utility.
Resident question: Is this increase simply the result of poor town planning?
One resident wrote us observing tha “Despite our Town Manager updating our 10 Year Capital Improvement Plan in every budget, it is clear to me that there are long needed stormwater projects which have never been adequately socialized with Council, nor planned nor funded. Thus the Town gets the false bliss of thinking we have more money for discretionary spending than we actually do.” This comment highlights the concern that a lack of clear planning and discussion around stormwater needs in the past has lead to an false picture of the Town’s financial flexibility, further emphasizing the importance of addressing overdue infrastructure projects.
One resident wrote us observing tha “Despite our Town Manager updating our 10 Year Capital Improvement Plan in every budget, it is clear to me that there are long needed stormwater projects which have never been adequately socialized with Council, nor planned nor funded. Thus the Town gets the false bliss of thinking we have more money for discretionary spending than we actually do.” This comment highlights the concern that a lack of clear planning and discussion around stormwater needs in the past has lead to an false picture of the Town’s financial flexibility, further emphasizing the importance of addressing overdue infrastructure projects.
Community engagement is underway—get involved
As with other proposed changes, the stormwater fee increase is still under review, and the Town is holding a community engagement process to gather input before any decisions are made. Residents and business owners are encouraged to participate and share their views at upcoming meetings, as these proposals could directly affect them. The council wants to hear from the public before moving forward. So now is the time to get involved if you have an opinion on these potential changes. Here's how.
As with other proposed changes, the stormwater fee increase is still under review, and the Town is holding a community engagement process to gather input before any decisions are made. Residents and business owners are encouraged to participate and share their views at upcoming meetings, as these proposals could directly affect them. The council wants to hear from the public before moving forward. So now is the time to get involved if you have an opinion on these potential changes. Here's how.
- - -
Oro Valley’s Stormwater Utility was established in July 2001 as an enterprise fund. This means that it operates independently from the Town’s general fund and is supported entirely by user fees. The utility was created to comply with federal and state stormwater regulations, including water quality and floodplain management standards, and to ensure the Town could fund the planning, construction, maintenance, and monitoring of local stormwater infrastructure. By keeping the utility self-supporting, Oro Valley is able to provide dedicated resources for critical drainage and flood control projects, without relying on general tax revenues.
- - -
Friday, June 27, 2025
Bits and Pieces
Unusual fiscal year-end council meeting called to address funding gap for Naranja Drive path project
The Oro Valley Town Council will hold a special Zoom meeting Monday—the very last day of the fiscal year—to consider an urgent funding amendment for the Naranja Drive Multi-Use Path project. The meeting addresses a $341,000 estimated project shortfall after construction bids came in higher than expected for the project. Council will decide whether to use leftover funds from other 2025 street projects to keep the Naranja path on track for a summer start and early 2026 completion. In order for these monies to be available for use in the next fiscal year, the leftover funds must be designated for multi-use path construction before the end of this fiscal year. Our guess is that the urgent meeting is needed so the funds can be designated for this use before the fiscal year closes.
Fourth of July festivities and new shade at the tennis courts
Oro Valley’s annual Fourth of July Celebration returns to James D. Kriegh Park on July 4, featuring live music, food trucks, a beer garden, family games, and fireworks, plus the town’s first-ever hot dog eating contest at 7:30 p.m. In addition, construction is underway on new shaded viewing and seating areas at the Pusch Ridge Tennis Facility, with completion expected in July—giving tennis players and spectators a cooler, more comfortable space for summer matches and community events. Read even more about what is going on this this weeks's Town of Oro Valley "This Week In Parks and Rec” bulletin.
Interested in helping Oro Valley build its tourism base? Apply now for one of five seats on the new Tourism Advisory Commission
Oro Valley is launching a brand new Tourism Advisory Commission and is now accepting applications from residents who want to help shape the town’s future as a top destination for visitors. The five-member commission will advise the Town Council on everything from strategic marketing to special events, resort partnerships, and tourism budget priorities. If you have experience or a strong interest in hospitality, travel, marketing, or events—or just want to make a difference in how the town promotes itself—this is a great way to get involved. Members will serve three-year terms and the group will meet monthly for the first year, then quarterly after that. Applications are open now. Apply here or call by the Town Clerk’s Office at (520) 229-4700 for more information. Read how all this came about in LOVE.
Park painting project underway in Rancho Vistoso
Rancho Vistoso has started a summer-long painting project at Hohokam and Wildlife Ridge Parks, with crews repainting perimeter walls, restrooms, and ramadas to freshen up these popular community spaces. The work began June 9 and will continue through the season. Residents are encouraged to watch for “Wet Paint” signs and to avoid the areas being painted until the project is complete, helping ensure a safe and smooth update for everyone who uses the parks. (Source)
Oro Valley Water: Smart water tips and a new bill payment portal now live
The latest Oro Valley Water Utility newsletter is packed with helpful updates for residents this summer. Most notably, the Town has rolled out a new online bill payment portal, making it easier than ever to manage your water account and pay bills securely from home. The newsletter also offers timely water-saving tips to help you conserve during the hottest months, including suggestions for efficient irrigation and reminders about monsoon season preparation. If you haven’t yet, be sure to check out the Water Utility website for more details and to explore the new portal—small changes can make a big difference for your bill and the community. (Source: Town of Oro Valley "Behind The Meter) .
- - -
Thursday, June 26, 2025
Jim Williams Receives National History Award for "Oro Valley The First Fifty Years"
A prestigious recognition for Oro Valley history
Jim Williams, a longtime Oro Valley resident and past president of the Oro Valley Historical Society, has been awarded the 2024 Award of Excellence by the American Association for State and Local History (AASLH) for his book, Oro Valley The First Fifty Years. The AASLH Leadership in History Awards, now in its 80th year, is recognized as one of the highest honors for achievement in preserving and interpreting state and local history.
A career dedicated to education and local history
Williams moved to Oro Valley in 2006 after a career as a social studies educator in Doylestown, Pennsylvania, where he served as a teacher, department chair, and district coordinator. He was recognized in Pennsylvania for his contributions to education. In Arizona, he has written two articles for the Journal of Arizona History. His first book about Oro Valley, Claiming the Desert, was published in 2018 and focuses on the area’s settlers, homesteaders, and ranchers from 1865 to 1965.
Books that give back to the community
Both Oro Valley The First Fifty Years and Claiming the Desert are available for purchase on Amazon, at the Western National Parks store on North Vistoso Village Drive, and at the Pusch House Museum at historic Steam Pump Ranch. Proceeds from book sales benefit the Oro Valley Historical Society.
Congratulations to Jim Williams
The Oro Valley Historical Society congratulates Jim Williams on this well-deserved recognition and thanks him for his dedication to keeping Oro Valley’s history alive.
Oro Valley Historical Society celebrates 20 years
The Oro Valley Historical Society, an all-volunteer nonprofit, is celebrating its 20th year of keeping Oro Valley’s history alive. The Society’s mission is to promote research, preservation, education, and the sharing of history related to the greater Oro Valley area.
About the AASLH Award of Excellence
The AASLH Award of Excellence honors projects and individuals in civic engagement, special projects, educational programs, exhibits, publications, and lifetime achievement. Winners represent the best in their field and provide leadership for the future of state and local history.
Learn more at www.ovhistory.org and read LOVE previous reports about Jim here.
The Oro Valley Historical Society, an all-volunteer nonprofit, is celebrating its 20th year of keeping Oro Valley’s history alive. The Society’s mission is to promote research, preservation, education, and the sharing of history related to the greater Oro Valley area.
About the AASLH Award of Excellence
The AASLH Award of Excellence honors projects and individuals in civic engagement, special projects, educational programs, exhibits, publications, and lifetime achievement. Winners represent the best in their field and provide leadership for the future of state and local history.
Learn more at www.ovhistory.org and read LOVE previous reports about Jim here.
Wednesday, June 25, 2025
Oro Valley Considers New Local Taxes to Fund Potential Future Revenue Gap in 2029-30
Town looks to close future "way out" projected revenue gap
Oro Valley is considering adding several new local taxes in response to projections by tow staff that the Town will face a revenue shortfall by 2030. At last week's council study session, Town staff outlined three possible new taxes for the council to consider: A use tax, a telecommunications tax, and a commercial rental tax. These taxes are already in place in nearby communities such as Tucson, Marana, and Sahuarita, but are not currently collected in Oro Valley. The main goal is to generate additional revenue to help maintain the Town’s financial stability in the years ahead.
Oro Valley is considering adding several new local taxes in response to projections by tow staff that the Town will face a revenue shortfall by 2030. At last week's council study session, Town staff outlined three possible new taxes for the council to consider: A use tax, a telecommunications tax, and a commercial rental tax. These taxes are already in place in nearby communities such as Tucson, Marana, and Sahuarita, but are not currently collected in Oro Valley. The main goal is to generate additional revenue to help maintain the Town’s financial stability in the years ahead.
Understanding the Use Tax: Who pays and how it works
The proposed use tax would apply to goods purchased out of state or online and brought into Oro Valley for use. Technically, both businesses and individual residents are responsible for paying this tax if the seller did not collect Oro Valley sales tax at the time of purchase. In practice, most compliance comes from businesses, since they are subject to tax audits and must routinely report these purchases. For individuals, use tax is mainly self-reported and rarely enforced, except for large items like vehicles, where tax collection is linked to registration. The Town acknowledges that use tax collection from individuals is challenging and not always realistic. The primary intent is to create a level playing field for local retailers and generate new revenue for capital improvements. Based on the town’s projections, the use tax could generate from $375,000 to $600,000 annually.
The proposed use tax would apply to goods purchased out of state or online and brought into Oro Valley for use. Technically, both businesses and individual residents are responsible for paying this tax if the seller did not collect Oro Valley sales tax at the time of purchase. In practice, most compliance comes from businesses, since they are subject to tax audits and must routinely report these purchases. For individuals, use tax is mainly self-reported and rarely enforced, except for large items like vehicles, where tax collection is linked to registration. The Town acknowledges that use tax collection from individuals is challenging and not always realistic. The primary intent is to create a level playing field for local retailers and generate new revenue for capital improvements. Based on the town’s projections, the use tax could generate from $375,000 to $600,000 annually.
Telecommunications Tax would impact local consumers
A telecommunications tax is also being considered, which would add a charge to every cell phone bill in Oro Valley. This tax is already common in other Arizona towns. If adopted, it would mainly affect local residents, since the fee is typically passed directly to the consumer. Vice Mayor Barrett noted that many residents are already seeing several fees and taxes on their phone bills and expressed concern about adding another cost. Town staff estimate this tax could bring in about $650,000 each year.
A telecommunications tax is also being considered, which would add a charge to every cell phone bill in Oro Valley. This tax is already common in other Arizona towns. If adopted, it would mainly affect local residents, since the fee is typically passed directly to the consumer. Vice Mayor Barrett noted that many residents are already seeing several fees and taxes on their phone bills and expressed concern about adding another cost. Town staff estimate this tax could bring in about $650,000 each year.
Commercial Rental Tax would affect businesses and individuals
The commercial rental tax would apply to all businesses renting commercial space in Oro Valley, including offices, retail stores, and self-storage units. In most cases, business tenants would pay the tax, but those renting storage units—often individuals—would also be affected. Council members, including Mayor Winfield and Councilmember Murphy, raised concerns about the impact on small businesses, especially given other rising expenses. The projected annual revenue from the commercial rental tax is about $1.1 million.
The commercial rental tax would apply to all businesses renting commercial space in Oro Valley, including offices, retail stores, and self-storage units. In most cases, business tenants would pay the tax, but those renting storage units—often individuals—would also be affected. Council members, including Mayor Winfield and Councilmember Murphy, raised concerns about the impact on small businesses, especially given other rising expenses. The projected annual revenue from the commercial rental tax is about $1.1 million.
Council shows mixed reactions to the new taxes
Council members expressed a range of reactions to the proposed taxes. Mayor Winfield was clear about his reservations regarding the commercial rental tax, stating that it "gives me the most heartburn" because of its potential impact on small businesses. Councilmember Murphy also emphasized the need to protect local entrepreneurs. Vice Mayor Barrett expressed strong concern about the telecommunications tax, noting that "many residents are already seeing several fees and taxes on their phone bills." While there was less direct opposition to the use tax, it was generally regarded as more feasible, since it brings Oro Valley in line with neighboring towns and primarily targets out-of-town and online purchases.
Council members expressed a range of reactions to the proposed taxes. Mayor Winfield was clear about his reservations regarding the commercial rental tax, stating that it "gives me the most heartburn" because of its potential impact on small businesses. Councilmember Murphy also emphasized the need to protect local entrepreneurs. Vice Mayor Barrett expressed strong concern about the telecommunications tax, noting that "many residents are already seeing several fees and taxes on their phone bills." While there was less direct opposition to the use tax, it was generally regarded as more feasible, since it brings Oro Valley in line with neighboring towns and primarily targets out-of-town and online purchases.
LOVE's Opinion: There is no need at this time for the town to implement new taxes..there is much the town can do to meet the spending challenge in other ways
Staff is recommending new taxes when there is no immediate need. The need, according to them, is based on a forecast they developed about a possible revenue shortfall in 2030. It is their forecast—a point estimate that makes many assumptions and could be completely wrong by then. In addition, the Council should not approve new taxes until it has undertaken an independent, third-party study, reporting directly to Council, on efficiency and potential ways to reduce spending and costs. It has been many years since the last such independent study was done—specifically, in 2008—and much has changed now that the Town has matured as a community. It is not possible for staff to “do surgery on themselves.” Like most organizations, they do not have the ability to critically examine and remove activities that are no longer needed. Therefore, the study must report directly to the Council. Finally, the only area that might be excluded from such a study is the police department. The reason is not that the police department should never be reviewed, but that including it would create unnecessary anxiety in the community among those who strongly support our police force. That is exactly what happened with the 2008 study.
You need to get involved
As we reported last week, you need to get involved. Last week, Town staff emphasized that a community engagement process is underway to gather feedback on these proposed taxes before any final decisions are made. A series of online public meetings and outreach events are scheduled for July, but several council members raised concerns that holding sessions during the middle of summer could limit participation, as many residents are away or may not be aware that important tax changes are being considered. Council members also noted that many residents may not fully understand the details or impact of the proposed taxes, and they encouraged staff to expand and improve the outreach effort to reach a broader audience. The engagement process will include online sessions and feedback opportunities, with additional input to be sought through town boards and commissions, leading up to council consideration later this year. LOVE will continue to follow this issue and will report on any other fee or revenue changes being proposed.
As we reported last week, you need to get involved. Last week, Town staff emphasized that a community engagement process is underway to gather feedback on these proposed taxes before any final decisions are made. A series of online public meetings and outreach events are scheduled for July, but several council members raised concerns that holding sessions during the middle of summer could limit participation, as many residents are away or may not be aware that important tax changes are being considered. Council members also noted that many residents may not fully understand the details or impact of the proposed taxes, and they encouraged staff to expand and improve the outreach effort to reach a broader audience. The engagement process will include online sessions and feedback opportunities, with additional input to be sought through town boards and commissions, leading up to council consideration later this year. LOVE will continue to follow this issue and will report on any other fee or revenue changes being proposed.
- - -
Next Tuesday: Stormwater Fee Changes In the Offing
Next Wednesday: Increases in Facility Use and Rental Fees Are On The Table
- - -
Tuesday, June 24, 2025
Council To Consider Folding Community Center Sales Tax Into General Fund In August
Tax no longer need to support municipal golf and the community center
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,
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 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.
- - -
Subscribe to:
Posts (Atom)