Oro Valley's Golf Course Presents Significant Financial Challenges

The Oro Valley 2015-16 budget includes a subsidy to pay for the losing operations of the Town Of Oro Valley golf courses. The subsidy is the half percent sales tax that the Majority-4 approved in March.

The sales tax increase finances golf course losses
According to a December Troon Golf ("Troon") financial forecast, the Oro Valley golf courses will generate $4.4 million in member fees and other revenues. Troon is under long-term contract to manage the golf courses and tennis facilities for Oro Valley. The golf courses will cost the town $6.2 million in Troon contract fees in 2016, according the the 2016 Oro Valley budget. The difference between projected revenue generated and Troon fees of $1.8 mil is a bit shy of the town's 2016 budget of $2mil in sales tax income from the half percent sales tax increase.

The Troon forecast projects golf course operating losses through FY 2018. The community center, on the other hand, is forecast to generate an operating profit of $317,000 in 2016. However, it is budgeted to receive a $1mil investment in the facility in 2016 so the net cash flow will be negative.

Troon's financial forecast included future years. These show that the town will lose money on golf operations through 2019.  These ongoing operating losses from the golf operation is of concern to many Oro Valley residents. They contend that the Troon revenue projections are optimistic, in light of a long term downturn in golf course operations and a nationwide decline in the popularity of the game of golf. While these operating losses are occurring, the town forecasts a spend of $6.4 million in capital outlays to upgrade golf operations from 2016 through 2025.

How will the Oro Valley pay for these investments?
That is the question Council Member Brendan Burns asked town manager Caton. We suspect that Burns asked the question because he has studied the numbers that the town has presented to him.

In a report to council, Caton provided 2 financing options. One option is to issue bonds in the amount of $2.5 million. That is not going to happen, according to a statement made at a council meeting. The other is to use town operating fund "reserves" of an equal amount.

This $2.5 million covers only 25% of the total golf course investment.  It covers the period from 2016 through 2019.

Where is the rest of the investment money going to come from in later years?

What if Troon's forecast of financial break even in a few years does not materialize?

This may be a question that a future council will have to answer.
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About The Numbers

The Town of Oro Valley did not provide the financial analysis presented in this post nor has the town opined on their validity.

However, the financial numbers presented in this post are from the most up-to-date source documents from the Town Of Oro Valley.

These documents are the 2016 Town Manager Recommended Budget, the December 2015 Troon Management Forecast of Golf Revenues and Expenses, and a May memo to council by Town Manager Caton on the options to finance some of the expenditures for improving the golf course. We did confirm with Town Manager Caton that the Troon Forecast were the most recent financial numbers on the golf course.

Despicable Him: Hornat Plays Politics With Steam Pump Ranch Funds

The gloves are off in the Oro Valley town council. The embarrassment continues (see our Monday post). This time it was about the 2016 budget and funding for Steam Pump Ranch.

Council Member Joe Hornat played politics with 2016 proposed spending on Steam Pump Ranch at the June 3 council meeting. He did it in an attempt to get at least one member of minority to vote for the Oro Valley record budget.

Hornat said this at the conclusion of a 3 minute speech on why he ignores things he'd like to see changed in the budget.

Hornat: We'll spend on Steam Pump if you'll vote for the budget

Council Member Hornat recommended approval of the budget if there were removal of the $425,000 planned expenditure for Steam Pump Ranch.

"In the interest of cooperation, if I can secure a better than 4-3 vote on the budget, I'll gladly entertain a friendly amendment to ... put it back in there."

In his remarks, delivered in shaky voice, Hornat said that he feels that the budget is a reasonable compromise even though there are some items on the budget to which he  does not agree.

According to Hornat "A no vote is a vote against the quality of life in Oro Valley... You need to look at the greater picture."

Council Member Snider (watch) voiced her support of the budget because town council sets policy; not budgets and whaterver town staff says is good enough for her.

Mayor Hiremath (watch) said that he felt that those who vote for the budget should get all the credit for its success.

Vice Mayor Waters, as usual, said nothing. He did vote 'yes.'

Council Member Burns told Hornat that Burns would vote for the budget if Hornat would agree to defund the golf course!

Garner: Hornat's attempt to defund Steam Pump Ranch is unconscionable

Council Member Garner did not let Hornat's threat pass.

Addressing the audience Garner observed: "You folks are witnessing politics at their finest, " Garner started.

"Steam Pump is going to fall in disrepair. To sit there and let a project lose $425,000 worth of funding over politics is completely ridiculous for a vote."

Garner then went on to explain why he was going to vote 'no' on the budget. "Yes. I am going to vote 'no' on the budget. I am consistent in voting 'no'. I will continue to vote 'no' on this budget ... There are efficiencies that we find in this budget and we refuse to do it. Now that we have this community/golf course we need to find even more efficiencies because we are going to be in really bad shape."

"I am not supporting the budget, Joe, and I think that it is absolutely unconscionable to think you would take $425,000 out of the town manager's recommended budget over Steam Pump for a vote."

Was Council Member Hornat thinking of the greater good when he recommended defunding Steam Pump Ranch?

Oro Valley's 2015-16 Budget Defines A Larger, Growth-Focussed Community

Oro Valley continues on the path of becoming larger, growth focussed community.

Tonight the Oro Valley Town Council's will approve by at 4-3 vote a record setting $119.6 million budget. The budget spends $83 million, or almost $2,000 per capita, as we reported Monday.  This spending pays for many items. It is, as we previously reported, a huge jump in spending. 

Oro Valley's Budget implements a vision of a much larger community

This year's budget should not be any surprise to anyone who reads LOVE.

The budget is the implementation of a vision shared by the Majority-4 (Mayor Hiremath and Council Member's Hornat, Snider and Waters). It is a vision of a much larger community.

It is a vision shared in their election in 2010. It is vision they shared in their election of 2014. It is a a vision that they embodied in the Oro Valley 2015 startegic plan. This is plan that they alone approved. It is a plan that states that Oro Valley will:

• Explore annexation opportunities
• Partner with existing high-tech and biosciences businesses to determine expansion and supplier needs.
• Explore the possibility of recruiting a satellite campus for a major university or other educational institution
• Evaluate the development of an entertainment district that includes music, sports, museums, and private/nonprofit galleries;

One of the goals of that plan is to: "Develop exceptional recreation and cultural facilities and programs that attract visitors and events that enhance residents’ quality of life and strengthens the economy."

Why does Oro Valley want to bring tourists to Oro Valley? According to conversation we had in September with Mayor Hiremath, about one-third of Oro Valley's sales tax revenues now come from people who live outside Oro Valley town limits. The mayor's theory is that increasing this percent to 50%, for example, will increase Oro Valley's sales tax revenues with less of a burden on Oro Valley residents.

There is every reason to believe that the Majority-4 will continue to move Oro Valley in the direction of growth and that growth will become a key element of the 2015 General Plan.

Not All Oro Valley residents want Oro Valley to grow into a tourist mecca

Oro Valley resident Shirl Lamonna spoke to the Oro Valley Town Council at the May 20 meeting. She share her view and desire that Oro Valley remain a vibrant, suburban community.

Lamonna moved to Oro Valley to enjoy "...a quiet suburban life with the beautiful views of the mountains and limited traffic.

Oro Valley has a great small town, suburban appeal. It’s been chosen as a top city for living, for families, for playfulness and even for launching a business. Oro Valley receives these awards because it offers better schools, public safety and an excellent quality of life – an escape from work, less traffic congestion, less crowding, opportunities for recreational and outdoor activities."

Lamonna is concerned that the strategic plan's emphasis on attracting tourism will change the community.  "I don’t know of any town resident that has ever expressed a wish that Oro Valley were a better tourist destination. Nor do I recall such a question ever appearing in any survey of what residents want the Town leadership to pursue."

Indeed, there is no mention of making Oro Valley a tourism mecca in the Oro Valley 2005 voter approved general plan.

"Our needs are simple," she observed: "A 2014 Oro Valley Parks and Recreation Department survey identified the amenities desired as playgrounds, picnic areas and sports fields for our families to use. We’re not asking for event centers and amphitheaters. We’re not looking to attract crowds that will ultimately cost us more for public safety, roads, operations and maintenance."

"We don’t want to become a Glendale whose bet on becoming the Phoenix area’s sports and entertainment hub resulted in higher taxes, firing of employees and rising penalties on its debt...Glendale is “a good example -- and hopefully a warning sign to others -- that when you deviate from your core purpose, you increase your risk.”

2015 General Plan Draft Lays Out Vision
Clearly, not everyone who lives in Oro Valley wants substantial growth. There are other options.

Read about what the 2015 draft general plan envisions for Oro Valley.

What kind of community do you want Oro Valley to be?

Oro Valley's Spending Per Capita Approaches $2,000; Far More Than Surrounding Communities

Oro Valley spending per capita in 2016 will approach $2,000, according to an independent analysis done by LOVE. This spending is considerably greater than  2 comparable Pima County communities and that of Pima County.

2016 spending marks the largest spending per capita in the past 8 years. 2016 budgeted spending is the 5th consecutive year in which spending per capita has increased.

Spending per capita is not a yardstick that the town uses to set or measure the appropriate level of spending. However, the town does refer to spending per capita when it discusses the police budget. Thus, we have applied the measure to all town spending.

Oro Valley's spending per capita is 33% greater than Marana and Sahuarita
Oro Valley's planned spending per capita is far greater than that of comparable Pima County comparable communites. Marana's planned spending per capita was $1,482 in 2015. Sahuarita's planned spending for 2016 is $1,468.

Oro Valley's 2016 planned spend of $1,984 far exceeds that Pima County. County planned spending per capita was $1,183 in 2015. The county recomended spend per capital in 2016 is $1,154.

Oro Valley spending per capita up sharply since 2014
Oro Valley's 2016 budgeted spending per capita of $1,984 represents a 23% increase over 2015, which was a 27% increase over 2014. During these years, spending has accelerated to accomodate increases in town employee salaries and benefits, an aquatic center, fields at Naranja Park, and the Oro Valley 45 golf holes, tennis courts, and a community center building.

These spending increases are in contrast to the spending constraints from 2009 through 2013.

Oro Valley spending exceeds revenues
Total Oro Valley revenues exceeded spending from 2011 through 2014. This year's budget has a $1.1mil expenditure over revenue level. Next year's planned expenditure over revenue level is $3.6million according to the town manager's recommended budget.

Oro Valley Town Finance Director, Stacey Lemos, presented a 5 year forecast of 3 funds that comprise 45% of the town's revenues at the May 20 council meeting.

The most significant of these 3 funds is the general fund. As we pointed out in a prior posting, this fund pays for some, but not all, of the town's day to day operating expenses

Financial projections, unlike budgets, are a forecast of future revenues and expenditures. They are as believable as the assumptions that are used in preparing the numbers.

Lemos' projection forsees no deficit spending in the general fund in 2017 and thereafter. Her projection is based on conservative assumptions. However, the projections do not include an estimate of discretionary spending. "Discretionary spending" by council does occur. During the past few years, for example, the council has used reserves to fund the aquatic center, to build fields at Naranja Park, and to fund the community center

Will this discretionary spending continue, thus invalidating the Lemos' projections of an operating fund balance?

We don't know. What we do know is that at least one council member views the accumulation of reserves to be a bad thing. Council Member Mary Snider has often stated that she does not want Oro Valley to be a bank. She does not Oro Valley to build  reserves. The implementation of this philosophy encourages more, not less discretionary spending.

Budget 2015-16; Oro Valley Planned Spending Exceeds Planned Revenues by 4.5%. Spend Up 28% in 2 years

Tonight, the Oro Valley Town Council will hold a public hearing on the 2015-16 town manager's recommended budget ("TMRB") of about $120mil.

Oro Valley's budget is up 28% in two years
The TMRB is $119.7 million. This is 12% more than this year's budget of $107mil. That budget was an increase of 14% from the prior year. In 2 years, the budget has grown 28%. The Oro Valley budget averaged about $95 million from 2012-2014.

The budget is not balanced from a revenue minus spending perspective
The town considers a budget to be balanced when the initial cash balance plus revenues equals the ending cash balance plus spending. That calculation includes both the opening and closing cash balance.

"The Town has historically included all resources available to set our spending cap to ensure that we have these funds budgeted in case Town Council authorizes their use during the year. In addition, by budgeting all sources, including fund balance, we avoid possible claims that we are 'hiding' money'." (Source: Oro Valley Communications Administrator Misti Nowak)

The TMRB is not balanced from a recommended revenue minus expenditure perspective. The recommended expenditure budget is about $84 million. This is $3.4 million more than the anticipated revenue budget.

Analyzing Oro Valley's budget in complicated 

Analyzing the Oro Valley proposed budget is not easy. This is because Oro Valley has 24 different funds. Each fund has its own budget.

One has to analyze the recommended budgets of a number of funds in order to assess town operations (see right panel).

Complicated? You bet. Here's our quick peek.

There are 5 major sources of Oro Valley revenues.
Revenues from sales and other taxes, the State of Arizona, charges for services, grants, and water sales are 83% of Oro Valley's TMRB revenues.

Budgeted revenues are based on the assumption of "modest economic growth." The budget anticipates modest commercial growth: "We expect this to be very slow in the short term and gradually increase as more homes are added to the community."(TMRB p i and ii)

The revenue budget was adjusted downward after the issuance of the TMRB because one of two significant projects included in making this budget estimate, the new K-5 elementary school in Rancho Vistoso, was deferred to next year by the Amphi School District. This reduced TMRB budgeted revenues by $420,000.

Spending is primarily for operations
From an overall perspective, there are four components of Oro Valley's planned spending. Day-to-day operations are two-thirds of this. Capital improvements are a bit over a quarter. The rest is to pay debt.

Oro Valley continues to make a major investment in its town employees
Last year, the town granted one-time pay increase adjustments plus a merit compensation increase to town employees.

"The FY 2015/16 Recommended Budget continues the commitment to recognize the efforts of our Town employees with capacity included of approximately $580,000 for public safety employee step increases and up to a 4% performance merit increase for non-public safety employees."

Town Manager Caton states in the TMRB that these increases are necessary in order to keep employee pay competitive. Caton asserts that increases avoid the employee turnover cost of hiring and training new employees.

The community center has an $8 million budget impact
"In 2015/16, the largest addition to this area is the Community and Recreation Center. This is a new division within the Parks and Recreation Department and adds over $8 million in operational and capital expenses and accompanying revenues of over $7.4 million, including the 0.5% dedicated sales tax revenues of $2 million. These operations will be accounted for in a new fund, the Community Center and Golf Fund." (TMRB p vi)

Without the community center, the TMRB would be about $112mil. The increase over prior year would be about $5mil. The percent increase would be 4.5%.

Want to learn more about the TMRM? Access it here.

Recall Petitions Filed Today as Town Of Oro Valley Announces Purchase of El Conquistador Country Club

Oro Valley Citizens For Open Government ("OVCOG") announced Friday "...that it has amassed sufficient petition signatures for (a recall election of) Council members Hornat, Waters, and Snider." OVCOG will submit the petitions to town clerk Bower today.

Also Friday, the Town Of Oro Valley announced that it has entered into an agreement to purchase the El Conquistador Country Club. "On April 23, 2015, [Town Of Oro Valley and HSL Properties] signed the tentative contract for the purchase, which is currently at the title company for finalization. The Town anticipates a transfer of ownership to take place by May 1, 2015." (Town Of Oro Valley Press Release)

A recall election is far from a sure thing
In order for the recall election to occur, Oro Valley Town Clerk Bower must review the submitted petitions. She will determine if they are in substantial compliance with legal requirements. Any error of any magnitude will result in the rejection of the petitions. If the petitions past her inspection, the petitions will go to the county. They will seek out invalid signatures. These processes will take at least 5 weeks.

The right of recall is in the Arizona state constitution. The legislature has written requirements for petitions that are so stringent as to prevent the right of recall. Even the most insignificant mistake will result in rejecting the petitions. For example, in January Oro Valley Town Clerk Bower rejected the petitions that would have allowed a vote on the town's purchase of El Conquistador Country Club. She rejected the petitions because the petitions did not include the correct filing number on each page of each petition. The rejection was upheld in both the lower court and the appellate court. The Supreme Court has been asked to hear the case on constitutional grounds. The court will not decide until late May if it will consider the case. 

If, after the scrutinization of both the town and county clerk, the petitions are approved and if there are sufficient valid Oro Valley registered voter signatures, then a recall election will occur. This would be on November 3. This is at the same day voters will be asked to approve property taxes to pay for a massive $800million Pima County Bond Issue.

OVCOG contines to seek signatures for Hiremath recall
"Signature gathering continues for Mayor Hiremath - accounting for the required higher threshold [in the number of Oro Valley registered voter signatures] for the mayor's position and the desire for a sufficient cushion to ensure a successful recall process." The group did not release a date on which they plan to turn in these signatures.

Oro Valley purchases El Conquistador Country Club
While all this has taken place, the Town Of Oro Valley has moved forward with its purchase of the El Conquistador Country Club from HSL properties. HSL is known in Pima County for is unusual dealings with the City of Tucson regarding its "begging" for help with a downtown hotel. They are know in Oro Valley because they built the large apartment complex, La Encantada at Steam Pump on Oracle Road. This required rezoning that was approved by the council majority.  HSL was a significant contributors to the 2014 election campaigns of Mayor Hiremath and council members Hornat, Snider and Waters.

The transfer of ownership of the El Conquistador Country Club will occur on May 1.

The purchase may have "strings" that benefit HSL and preclude future property sale
We have previously reported that the sale of the property to Oro Valley by HSL may have conditions that guarantee great benefits of golf course and club use to the Hilton El Conquistador, which HSL owns, over many years. At one point, we understand that HSL was requesting the right to approve any Oro Valley sale of the property. This kind of condition would diminish the market value of the property and make it more difficult for a third party to purchase it. As we reported, there is a bone fide offer by Oro Valley resident Rick Chandler to purchase the property.

LOVE will provide a detailed analysis of the purchase agreement once it becomes available.

Mayor Hiremath: "An exciting time for our community"
"This is a very exciting time for our community," said Mayor Satish I. Hiremath. "Since the 1990s, our residents have expressed a desire for a community center-for a central gathering place. We now have the amenities to meet that need as well as provide increased parks and recreation programming for all ages." (Oro Valley press release)

Many do not share the mayor's enthusiasm. 
This is because the purchase is far more than for a community center.  "The purchase includes 324 acres of land, a 31,475 square-foot building, restaurant, 31 tennis courts, 45 holes of golf and two swimming pools." (Oro Valley Press Release)

To many, this is a massive, costly, and risky undertaking for Oro Valley
The purchase is a massive undertaking by Oro Valley. The $1million purchase price is small in comparison to the amount of investment required to rebuild the property. Oro Valley Town Manager Caton has recommended 2015-16 funding for the facility at almost $8.2million. $6.3million of this is to pay for a management contract with Troon Golf. The town's investment, according to information provided to us by the town, is well over $8million over 5 years. There are others, however, who believe that the investment will be more than $13million.

The council majority increased the sales tax one half percent to pay for some of the cost of operating this facility.

The purchase is also significant risk. The sport of golf is in decline. Green fees are dropping as competition for fewer golf rounds heatsup. In addition, the town is using public money to compete with the private enterprise golf clubs in our community. Every one of these courses is struggling to survive.

Guest View-Paul Emmert: Is A Government Bailout Good For Oro Valley?

Last week, the Public Policy Committee of the Greater Oro Valley Chamber of Commerce sponsored a public meeting to discuss the Town’s El Conquistador country club and golf course purchase. Town Manager Greg Caton, several staff members, and a Troon Management representative led the meeting. It was immediately clear that many of the attendees favored the purchase because of the golf course rescue.

At that meeting, participants were told that the golfing industry is turning around. Of course, this prognostication doesn’t comport with the data, but why concern ourselves with pesky statistics that can be manipulated? Further, we heard how the community center restaurant will offer one of the finest dining experiences available in Oro Valley,

The El Conquistador purchase is a government bailout.

Oro Valley Resident Paul Emmert

HSL Properties, knowing the depressed state of the golfing sport, is wisely trying to shed the golfing operation, while holding claim to being a golf resort. Meanwhile, you and I are assuming the ownership and risk, and will spend at least $10 million in the form of a 25% sales tax increase to support this bailout. These courses and the country club are losing money, and the Town is swooping in to save the day.

The U.S. federal government lost over $9 billon bailing out the American auto industry. Who is left holding that bag? You and I, of course. Then we have Oro Valley bureaucracy stepping in to assume ownership control of a failing business enterprise. The 2015-16 town manager recommended budget is rising 12% to accommodate this purchase.

Does this sound familiar? Are you confident that Oro Valley is any more capable than private ownership to return a business to profitability? Do you think the Town should be aiding private ventures, cloaked in the disguise of a “new” community center? I certainly don’t.

I’m a former Oro Vally small business owner. I know well the perils of private competition. Competing with government subsidized business is even more challenging. On the macro level, consider that Airbus and Boeing are the largest aircraft manufacturers on the planet, yet Airbus is subsidized by various European countries, placing Boeing at a distinct disadvantage.

Similarly, Oro Valley is stepping into private business with the singular aim of taking away customers from privately owned health clubs, golf courses, and restaurants. How is this remotely fair, on top of the fact that these businesses are now forced to collect additional sales tax to pay for their own competition? It’s a preposterous notion on its face.

Mayor Hiremath and his Council majority are singularly responsible for proceeding down this road. It’s the wrong path and poorly thought out. It stifles private competition and taxpayers are at risk too.

It’s time for change.
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Raised in Southern California, Paul Emmert has always had a special fondness for the American southwest. Prior to moving to Oro Valley in 1997, Paul and his wife lived in Seattle WA, where Paul is presently based as a Captain with a major airline. He began his military flying career in 1979 after earning a B.S. in Aeronautical Engineering from the U.S. Air Force Academy. He flew C-130’s as an aircraft commander and instructor, flying tactical airlift missions worldwide. After serving 11 years on active and reserve duty, he began his civilian flying career and earned aircraft type ratings in the Boeing 727, 737, and McDonnell Douglas MD-80 aircraft. During his tenure as a commercial pilot, Paul has also served in various leadership positions with the Air Line Pilots Association (ALPA) - an internationally recognized labor union representing over 65,000 pilots worldwide. During this time, he participated in several successful collective bargaining agreement negotiations, seniority list integrations, and grievance settlements with airline managements. He currently serves as a member of ALPA’s Airline Merger Committee. Not satisfied with just airline related responsibilities, Paul has also co-owned and and managed a small boutique health club in Oro Valley.

Paul, his wife, and daughter enjoy all the things that Southern Arizona and Oro Valley have to offer. As outdoor enthusiasts, they enjoy traveling and RV camping. Paul is an avid runner and recumbent cyclist, with several full and half marathons to his credit. Paul is devoted to helping disadvantaged youth, raising money each year for Tu Nidito’s cycling Tour de Tucson fund raising campaigns. In whatever spare time remains, he also enjoys photography and radio controlled aircraft flying.

Oro Valley Town Manager Caton To Present $120 Million 2015-16 Budget Request To Council Tonight

Oro Valley Town Manger Greg Caton will present his recommended fiscal year 2015/16 budget to the Oro Valley Town Council tonight. The budget amount of $120.1 million is a 12% increase from the Adopted FY 2014/15 Budget totaling $107.1 million.

El Conquistador Country Club and Community Center has huge impact
Over 50% of the $13million increase in spending over prior year is to support the costs of operating the El Conquistador Country Club  and Community Center. The project is budgeted to lose $600,000 after inclusion of an estimated $2million from the half percent increase in the sales tax that went into effect in March.

Almost 80% of the 16 new positions in the budget are to support the El Conquistador Country Club and Community Center. "The FTE increase attributable to the Town’s new Community and Recreation Center totals 12.36." (TMRB 2015-16 Page iii)

The budget also includes $1.115million for improvements to the El Conquistador Country Club and Community Center. This is for "...for ADA accessibility improvements, aesthetic interior and exterior improvements and golf course improvements." (TMRB 2015-16 Page viii)

Health care "Self Insurance" costs going up
Several years ago, LOVE's John Musolf asserted that the town's change to a self-insured health claim program would result in a one or two year gain. The savings achieved in the early years are really "phantom." This is because there are no preexisting claims at the start of the program.  It seems that our assertions were correct:

"After years of trending low in our health claims costs, we have seen a spike in these costs during FY 2014/15. The FY 2015/16 Recommended Budget includes 10% health insurance premium increases for both the employee and the Town contributions, and it is expected that annual, incremental increases will continue over the next few years in order to adequately prepare for possible future large claims." (TMRB 2015-16 Page iv)

Giving planned at $362,200
The budget plans the following contributions.

• $30,000 for the Greater Oro Valley Chamber of Commerce
• $215,000 for Visit Tucson ($175,000 last year)
• $75,000 for the Oro Valley branch of the Childrens Museum
• $32,200 for the Southern Arizona Arts and Cultural Alliance (SAACA)
• $10,000 for Tohono Chul Park

Police Evidence Facilty On Tap

The Oro Valley Police Department has voiced a need for a police evidence facility. $1.134million is included in this budget to "... begin the design and possible construction" of this facility in 2015-16. The building would occur in 2016-17.

Some New initiatives

The budget includes new initiatives, some of which were pilot tested in 2014-15. These include:

• The overseeding of Riverfront and Naranja parks ($50,000)
• A pilot program to test outsourcing as part of the maintenance of Oro Valley parks ($100,000)
• Use of inmates to perform maintenance and vegetation removal projects ($100,000)

Contingency Fund to remain at higher than required levels

"The estimated year-end contingency reserve balance in the General Fund for FY 2015/16 is $10.2 million, which equals 31% of the recommended expenditure budget. The Town’s adopted policy level is 25%."  (TMRB 2015-16 Page x)

Mr. Caton's presentation tonight should be an interesting one.  We will post it for you to see when it becomes available together with any visual materials.
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