Council Sees Annexation As One Solution to Future Revenue Challenges

Focus on revenue-generating areas
During last week’s strategy session, the Oro Valley Town Council discussed annexation, framing it as one of the town’s tools to address long-term revenue challenges. Council members repeatedly described annexation as a way to expand the sales tax base without adding new taxes or increasing existing taxes on existing residents.

Balancing revenue with service costs
Council members emphasized that annexation decisions must account for the costs of providing municipal services. Public safety, road maintenance, and infrastructure responsibilities would expand with annexation and must be evaluated alongside potential revenues. Staff noted that departments such as police, public works, and water would need to assess service demands to ensure annexations do not create na situation in which the one-time and continuing cost of the annexation exceed the revenue benefit.

Define specific targets... Clear strategies
Several council members expressed concern that Oro Valley’s annexation strategy has lacked clarity and follow-through. While annexation areas have been discussed for years, council members said they have not consistently been provided with detailed maps, defined boundaries, cost estimates, or clear action steps. The council signaled interest in narrowing its focus to specific high-impact areas and pursuing those annexations more deliberately. [See panel right for areas mentioned at the meeting]

Overcome hurdles: Property owner consent remains a major hurdle
The discussion highlighted two limitations of annexation, On is that property owners must agree to it. Council members noted that many properties under consideration are owned by out-of-state investors who evaluate annexation strictly based on financial return. Several questioned how Oro Valley can make annexation attractive when those owners already receive basic services and may see little financial advantage in changing jurisdictions.

Overcome hurdles: Legal limits on annexation incentives
Council and staff identified a second limitation. The Arizona’s constitutional “gift clause”.  Under state law, the town cannot offer financial incentives, tax relief, or other benefits to private property owners unless Oro Valley receives clear and measurable value in return. Future tax revenue alone does not meet this legal standard. As a result, annexation incentives are largely limited to infrastructure-related investments, such as improvements to roads.  The barrier: In already developed commercial areas where little new infrastructure is needed, the town has few lawful tools to encourage annexation, even when potential revenue benefits are clear.

More discussion to come on this at the March strategy session
Council directed staff to return with more detailed information at the council’s second strategy session on March 2, including defined annexation boundaries, estimated revenues, service costs, and legal constraints. The discussion made clear that the council views annexation as a potential response to future fiscal challenges, but one that will require sharper focus, clearer strategy, and realistic expectations to move forward.

- - -

Melanie Barrett Announces Candidacy for Mayor of Oro Valley

The following is the media release announcing Vice Mayor Barrett's intent to seek the Mayor's office in Oro Valley's 2026 election. Former Pima County Sherriff Mark Napier is the only other announced candidate:
- - -
Oro Valley, AZ - Melanie Barrett today announced her candidacy for Mayor of the Town of Oro Valley, building on 8 years of service as Vice Mayor and a commitment to serving Oro Valley residents, fiscal responsibility, and community leadership.

Barrett holds a law degree from Brigham Young University, where she graduated magna cum laude in 2007 and served on the Law Review. Prior to her over 7 years of service as Vice Mayor, she served nearly 4 years on the Planning and Zoning Commission. She is a married mother of four children and raises her family in Oro Valley.

Barrett has built a record of protecting residents from new taxes while investing wisely in community priorities. Among her major accomplishments, Barrett played a key role in helping to eliminate nearly $2 Million per year in golf operating losses, and reallocating revenues from the golf half percent sales tax towards community priorities. Through this, Barrett led the expansion of Parks and Recreation opportunities – including the buildout of Naranja Park, Community Center amenities, and expanded trail systems – with no new taxes. The funding can now also be utilized for roads and public safety. While there is still work to be done, Barrett is committed to maintaining both the high quality of life and fiscal health she has helped to build in Oro Valley over the last 8 years.

Barrett has been a consistent champion for public safety, helping to rectify a deficit in the police pension, supporting competitive compensation for our officers, and the appointment of Police Chief Kara Riley. She is especially proud that during her time on Council, Oro Valley has been ranked the safest city in Arizona, as well as the #1 safest and wealthiest city in America to retire.

A fiscal conservative, Barrett does not accept special interest funding, and has worked to preserve Oro Valley’s small-town feel, scenic viewsheds, and open space. She has turned down requests for 5 and 6 story apartments, instead limiting developers to 2 and 3 stories, which reflects the desires of Oro Valley residents in the Path Forward Surveys. She advocates for protecting viewsheds and open space while preserving commercially zoned land for quality commercial development that benefits residents by adding retail stores and restaurants.

“I am running for Mayor because I love this community and serving it has been an honor. I would like to continue protecting the things that make Oro Valley special – the beauty, public safety, fiscal responsibility and high quality of life we enjoy. Together, we can keep Oro Valley the special place it is while strengthening it for the future,” Barrett said.

Melanie Barrett, JD

for Oro Valley Mayor

- - -
(Source: Barrett Media Release)

Results vs. Activity: Council And Staff Talk Past Each Other

Different expectations surface early
During the first of two strategic planning study sessions this year, early discussion revealed a disconnect between the Town Council and staff over how the strategic plan is framed and reported. Council members emphasized a desire for planning focused on clearly defined outcomes, while staff updates emphasize activities completed or in progress. 

Activity reporting vs. outcome reporting
Council cited economic development, referred to in the plan as economic vitality, as a clear example. Council members said their intent is to attract major employers, expand commercial development, and increase revenue in a meaningful way. Council wants to know what progress is being made toward specific, identifiable targets tied to those goals.  Staff updates, however, focus on activities such as supporting startup programs, hosting networking events, and developing collaboration spaces. While these efforts may support broader economic development, council members questioned whether they are directly connected to achieving the stated goals.

Council wants "measurable outcome reporting"
Council members said strategic plan items should be built around specific goals and measurable outcomes, with reporting that clearly shows whether progress is being made toward those outcomes or whether current efforts are realistically on track to achieve them. They said success should be judged by results, not by the volume of activity.

Staff wants to do activity reporting because that is what they track
In response to council thoughts, Town Manager Wilkins directed council members to existing documents, including the strategic plan and internal project charters, for additional detail. He emphasized that staff is taking actions, tracking work through multiple tools, and providing quarterly updates, while noting the challenge of consolidating that information into a single, easily digestible report.  

Wilkins’ missed Council’s central concern: Members were not asking for more detail about activities, but for clearer, bottom-line assurance that those activities are designed to produce the specific results Council expects.

Looking ahead to the next strategy session
Several council members summarized the issue succinctly: sSaff is focused on doing things, while Council wants confidence that the things being done are the right ones and will deliver the intended results. As the Town prepares for its second study session, members indicated that clearer outcome definitions up front would help align expectations and keep strategic planning results-driven rather than activity-driven.

- - -

Bits and Pieces

Audubon Certification effort gains momentum at Pusch Ridge Golf Course
Friends of Pusch Ridge Golf report steady progress toward Audubon Sanctuary certification, an effort that blends environmental stewardship with community involvement. Volunteers and course staff are working through 18 identified projects, ranging from wildlife and habitat inventories to water conservation planning and public education. New signage, plans for bat and bird houses, a proposed butterfly garden, and outreach to nearby HOAs and the Oro Valley Town Council all point to a long-term commitment to improving environmental practices on the course. With the planning phase complete and six certification categories still ahead, organizers describe growing momentum and continue to welcome volunteers to help move the effort forward. (Source: Friends of Pusch Ridge Golf January newsletter)

Fiber expansion moves into contract phase at Rancho Vistoso

The January Vistoso Community Association newsletter highlights an important next step in bringing fiber-optic service to Rancho Vistoso. After the Town approved Ripple and Wyyerd to install the “last mile” of fiber, the VCA Board is now negotiating contracts with both companies to protect HOA infrastructure in the public rights-of-way, including landscaping, decorative rock, and irrigation systems. The Board is scheduled to vote on the contract language at its January 29 meeting, a decision that will help shape how high-speed internet is rolled out while safeguarding community assets. (Source: Community Association January newsletter)

Town releases friendly snapshot of 2025 Town Financial Results

The Town of Oro Valley has released its Popular Annual Financial Report (PAFR) for the fiscal year ending June 30, 2025, offering residents a clear and accessible overview of the Town’s financial position. Unlike the more detailed and technical Annual Comprehensive Financial Report, the PAFR summarizes key information such as revenues, expenditures, net assets, debt, financial ratings, and historical trends in a format designed for the general public. The report is intended to help residents better understand how the Town is managing its finances. Download the report here. (Source: Town of Oro Valley media release)

ASDB move to Copper Creek Elementary causes “Heartburn” for ASDB families

Plans to relocate the Arizona State Schools for the Deaf and the Blind (ASDB) Tucson campus to the soon-to-be-closed Copper Creek Elementary has created frustration and concern among ASDB families and students. After the Amphitheater School District voted to close Copper Creek and ASDB signed a five-year lease to operate there, many ASDB parents said they felt shocked and dismayed by both the closure and relocation announcement and expressed uncertainty about how the transition will affect their children’s education. At Monday's community meeting, ASDB parents voiced disappointment that the session ended early amid heated exchanges, saying they left with more questions than answers about services, transportation and the future of specialized support. The session ended early after parent emotions ran high and the discussion became heated, prompting organizers to close the meeting before all questions from families could be addressed. Some parents said they were skeptical about how ASDB’s collaboration with local districts will work and worried about accessibility challenges for families who rely on consistent, tailored support as their children adjust to the new campus setting.  Families also raised concern that the move would separate deaf and blind students who are currently educated together on the Tucson campus, disrupting long-standing programs and peer support networks. It is alleged that only deaf students will attend Copper Creek and that visually impaired students will go to a cluster site at TUSD. (Source: Various local news reports)

Oro Valley business growth and community planning advance side by side

Recent Town updates point to steady economic activity alongside continued community planning. In December, Oro Valley issued eight new business licenses spanning storefront, office, and home-based enterprises, while several tenant improvement permits signal new activity at key centers such as Oro Valley Marketplace. At the same time, construction continues on the 320-unit Oro Valley Marketplace Apartments, with utilities underway and a pedestrian tunnel nearing completion. These development updates appear alongside reminders in the Town’s Vista newsletter encouraging resident participation in long-range efforts such as the OV Trails Connect Master Plan and the Path Forward process, reflecting a parallel focus on near-term growth and long-term community priorities: (Source: Town of Oro Valley, January 2026 Economic Development Update and January/February 2026 Vista Newsletter)

- - -

Council Reshapes Prime Town Centre Land

Council wants to reset zoning to make land developable
The Oro Valley Town Council is moving forward with a multi-phase rezoning effort for the town-owned portions of the Oro Valley Town Centre PAD, a long-standing land-use opportunity on the east side of Oracle Road and Pusch View Lane. The council's objective is to reset the zoning so the property so that is realistically developable while protecting community priorities such as open space and views, and allowing the Town to potentially sell portions of the land for General Fund purposes.

The existing zone, a never attracted a developer

This effort continues work we reported on in September. The land is currently zoned to allow a 75-foot hotel and other high-intensity commercial uses, a designation approved by Council several years ago after the property was donated to the Town by the Rooney family. As it turned out, there was no market interest in developing the site under that zoning, largely due to site constraints, access challenges, infrastructure costs, and limited economic feasibilit

Council envisions a developable alternative that will protect views and the environment
Staff presented Council with four rezoning options for the property. Council selected and option that they felt best balance sbetween commercial potential, development feasibility, protection of open space and views, and the likelihood that the site could realistically be developed and sold. 

This concept envisions a modest-scale mix of shops and services along Oracle Road, with housing set farther back on the site, away from the highway. Most of the hillsides would remain open space with trails. Buildings would be limited to two and three stories, with heights stepping down toward Oracle Road to reduce visual impact and protect views.

The concept would support a dozen or so local businesses, and hundreds of residential units
Built out under Concept 2, the property would likely accommodate several dozen small to mid-sized businesses along Oracle Road, such as neighborhood restaurants and cafés, specialty grocery or market stores, fitness or wellness studios, personal services like salons or medical offices, and small professional offices serving nearby residents. The residential component would include either about 250–300 apartments or, under an alternative layout, roughly 150–200 townhomes.

While leaving much of the land open
Based on the concept materials, about 64 percent of the total site—roughly 95 acres—would remain undeveloped open space for natural hillsides, trails, and recreation, providing a buffer to nearby neighborhoods and preserving scenic views.

Rezoning would generate one time sale proceeds, construction sales tax revenues and ongoing sales tax revenue
From a revenue standpoint, the rezoning is intended to turn a long-idle Town asset into both near-term cash value and long-term income. Once rezoned, the Town could sell developable portions of the property to private builders, generating a one-time payment likely in the millions of dollars. Over time, development would also generate ongoing revenue through sales taxes from new shops and restaurants, along with permit and construction-related fees during build-out.

One (small) glitch regarding state law requirements regarding the sale of town land
Arizona law places limits on how Town-owned land can be sold based on its dollar value. Higher-value sales can require additional approvals, including public hearings and, at the upper end, voter approval. Because of this, Council emphasized the need to understand the estimated value of the property early and directed staff to prepare preliminary value estimates as Concept 2 is refined.

Future will see neighborhood in public meetings as this moves forward
Those value estimates are to be reviewed by Council before neighborhood meetings scheduled for February and March, where residents will get their first clear look at what the site could become. After public feedback is incorporated, the proposal will move to the Planning and Zoning Commission and then back to Town Council for spring public hearings, with rezoning decisions made before any future steps to value, market, or sell the property.

- - -

Oro Valley Council Divided as Two New Taxes Are Rejected

Council rejects two proposed taxes
Last 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.”

Business community raised concerns
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. 

- - -

Bits and Pieces

Council rejects two of three new taxes
Wednesday night, the Oro Valley Town Council took action on three proposed new taxes. Council approved a commercial use tax, but voted not to approve the proposed telecommunications tax or the proposed commercial rental tax. LOVE will provide a more detailed summary of the Council discussion and votes in next Tuesday’s article.

Arizona State School for Deaf and Blind to move to Copper Creek facility
It looks like the Copper Creek Elementary School Building, which Amphi is closing at the end of this school year, won’t be vacant for long.  The Arizona State Schools for the Deaf and the Blind (ASDB) plans to move its Tucson campus into the Copper Creek facility under a proposed multi-year lease with the Amphitheater School District. ASDB officials have said the move would allow the state agency to rightsize Tucson operations moving to the existing school campus rather than maintaining the larger, older facility on Speedway in Tucson. 

"The goal of this move is: (1) long-term sustainability of the agency and the Tucson campus, so that students continue to receive exceptional education opportunities; and (2) decrease operational/overhead costs, in order to have more resources for students and teachers."

According to ASDB, staff and students will move to the facility this summer.  The fall semester will begin at that location. The site will be repurposed for specialized education.  The move provides certainty to the  town and to the residents of Copper Creek that the facility will continue to a well maintained facility. Read more about their decision to move to Oro Valley here.

Town receives land gift... will likely be added to trails system
Also Wednesday, The Oro Valley Town Council approved a gift agreement to accept two parcels of undeveloped desert land adjacent to Honey Bee Canyon Park. Deputy Town Manager Chris Cornelison explained that the donation consists of roughly 33 acres of natural desert, offered at no cost, with property taxes current. The land is zoned as open space under the Rancho Vistoso PAD and includes existing informal trails. The land will be held by the Town for possible future inclusion in broader parks and trails planning efforts. The next step is for staff to complete standard due diligence, including title review and preparation of the deed, with no obligation for the Town to make improvements or incur expenses related to the property. mmCouncil members expressed support, noting that the donation complements Honey Bee Canyon Park. The Council unanimously approved the resolution, with a 6–0 vote.  

Police gain access to statewide investigative data system
Wednesday, the Town Council unanimously approved an agreement allowing the Oro Valley Police Department to participate in a state-supported law enforcement records management and analytics system. Police staff said the system will give OVPD access to data from other law enforcement agencies that do not share the same records platform, improving investigations and officer safety by providing more complete background and contact information. The system will be funded through a one-year state grant administered by the Arizona Department of Administration. In response to council questions, staff said the system meets all criminal justice data privacy standards and that the Town is not required to continue participation if grant funding ends

Council adopts state-mandated zoning code changes
Also Wednesday, the Town Council approved updates to the zoning codes required by recent State of Arizona law changes. We previously reported on these changes. Planning staff explained that the amendments formalize administrative approval for certain non-discretionary development and design review applications, clarify who may appeal administrative decisions and under what conditions, allow earlier submittal of grading and drainage plans, and correct minor code errors. The discussion also addressed a change requiring conditional use permits for building height increases in private school and parks and open space zoning districts, placing final approval authority with the Council. Council members noted that while many of the updates are state-mandated, staff worked to retain local oversight where possible. Changes had been previously approved by the Planning and Zoning Commission.

Phased stormwater rate increase approved... will support system maintenance
Later in the meeting, the Council approved a phased increase to the stormwater utility base rate, adopting Resolution R26-02. The increase raises the residential base rate by 67 cents per month, from $4.50 to $5.17, effective July 1, 2026. Two additional increases were also approved, another 67 cents effective July 1, 2027, bringing the rate to $5.84, and a final increase effective July 1, 2028, bringing the base rate to $6.50, a total $2 increase over three years. Commercial properties will see proportional increases based on impervious surface area. Staff said the stormwater base rate has not been adjusted since 2016, a point previously reported in LOVE, and that the phased approach was designed to limit impacts on residents while ensuring the utility can fund operations, meet regulatory requirements, and maintain required reserves. The storm utility fee is part of your monthly water bill.

Ballots for RTA Next all-mail election coming soon
An all-mail election is coming up on March 10 for Pima County voters to decide the future of regional transportation funding through the RTA Next plan. Proposition 418 asks voters to approve a new 20-year regional transportation plan covering roadway, transit, and safety projects across the region. Proposition 419 asks voters to continue the existing half-cent sales tax that funds the Regional Transportation Authority, with no increase in the tax rate. Ballots will be mailed automatically to registered voters beginning February 11 and must be received by 7:00 p.m. on March 10. There will be no in-person voting; participation is by mail only.
- - -