Bits and Pieces

Tech Parks' Startup Incubator, UACI Opens its Doors in Oro Valley 

In mid December, The University of Arizona Center for Innovation opened its new bioscience-focused startup incubator facility in Oro Valley. The new center is officially up and running and ready to support bioscience startups with the resources, programming, facilities and mentorship needed for startups to thrive. The incubator will offer companies access to shared laboratory equipment like an ultra-low freezer, biosafety cabinets and an inverted fluorescence microscope. Startups will also be guided through a 27-point roadmap for business enterprises designed to support bioscience discoveries and help translate them into marketable technologies.

The center’s first tenant is TheraCea Pharma, a UA drug technology spinoff that in early November was named winner of a “sponsored launch” competition for a slot in the incubator sponsored by BioSA. (Source: Innovation Center Press release)

Council approves pay increase

The Oro Valley Town Council approved a pay increase of 3% for all employees starting in January. This will cost the town $385,000 through June 30. It will permanently embed $888,000 in cost to next year's budget.  This amount does not include the added fringe benefit costs that are based as percent of salary. 

Previously, the Town Council requested the Town Manager to assess market and revenue trends and come back to provide an update and recommendation regarding potential salary increases." Town Manager Jacobs' assessment is that the town needs to do this in order to provide competitive wages; and that the town can afford it by not added open positions.

Is there anyone you know who has received a pay increase during Pandemic times? We know many who are living on less.

2020 in the rear view mirror

TakeBackOV published a quick retrospective on Oro Valley's 2020. Well worth watching.

Troon is back!

The town replace Troon, the company that managed the Town of Oro Valley golf courses, with Billy Casper Golf this fall. Troon announced the purchase of Indigo Golf, which was formerly called Billy Casper Golf. Read about the purchase. 

Fiscal Responsibility, Municipal Golf and Quality of Life Are "Top Of Mind" To LOVE Readers

What you want town council to accomplish

Fiscal responsibility, golf spending rationalization and quality of life in Oro Valley are top of mind issues for LOVE readers.  This conclusion is based on an online survey we conducted the week of October 5. We asked: "What is the one thing you want to see the new town council accomplish?"

Top Challenge: Be Fiscally Responsible

Respondents want the town to be strong financially. This is driven by the uncertain near and long term impact of Covid-19 related business and social restrictions.  

Oro Valley is an "older community." As one resident put it:  "Hold the line on spending. Many retired citizens in Oro Valley are on fixed income." Another noted that they want the town "to be able to handle unknown drains on the Town's funds from unexpected issues (like impact of Covid-19), and to be able to assist and encourage small businesses to start up successfully here in Oro Valley."

Source: Week of October 5 LOVE Survey

Others voiced similar concerns.

• "Balance the budget and make the tough decisions that gets us there without playing games with the financials."
• "More transparency is needed. Spending must be monitored more closely. Constituents should have the final voice as to what goes on."

There was also a concern voiced that Oro Valley's spending is inflated after years of continual spending increases since 2010. "Too much fat in budgets result in taxes higher than needed." 

Number Two: Rationalize spending on Municipal Golf 

The town's subsidizing the operation of two golf courses through a sales tax is still not a settled issue among some. They say that Oro Valley municipal golf benefits few at the expense of many. Apparently, the town's plan to reduce golf subsidy to no more than $750,000 by 2022 does not satisfy them; or perhaps they are not aware of the plan approved by council in January.

• "Eliminate all expenses associated associated with the golf courses and community center, and stop the associated sales tax support."
• "The expense and the paltry number of community members it actually serves. Open park space behind the homes along the course will not negatively impact property values, lots with open space behind them sell first and for a significant premium over lots that abut other lots. It's not like the course is being replaced with apartments and strip malls."

Number Three: Improve The "Quality of Life"

Some want the town to improve the town's park system. Doing such "Bolsters property values, provides recreational opportunity, promotes sense of community, attracts families" According to some, it would also help the town "Regain the reputation of one of the best places to live in the U.S."

One way to do this is to "Preserve the Vistoso golf course as a green space because it will define our town's vision of a great place to live."

Another resident noted that Oro Valley's focus on cluster zoning and small home lots is actually driving potential residents away."Stop permitting those developments with the houses sitting almost on top of each other with NO back yards! Families with kids need room for them to play. Maybe do some gardening."

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Note: The results of our survey are by no means statistically representative of the thoughts of the entire community. They do provide some insight into what LOVE readers would like to see happen.

2020-21 Budget Approved Unanimously

A cautious approach to spending
The Oro Valley Town Council unanimously approved a $105.4 spending budget for this fiscal year. The timing of the spending will depend on the financial impact of the pandemic. Hopefully, according to Town Manager Jacobs, the town will have an idea of how things will play out financially by mid year.

The town has taken a conservative position in this years budget because of the uncertainties of revenues. For example, the budget includes $6.1 million in unallocated spending. In addition, potential spending on capital improvements is being "phased in" during the year. How quickly these projects will happen will depend on the stability and predictability of the town's revenue streams.

           Watch LOVE's one minute budget summary

Budget includes elevator for community center
One of the needs that was unfunded by the Hiremath administration was the need to make the Oro Valley Community Center ADA complaint. One of the compliance measures is an elevator. This is now in the budget. The timing however is a bit unsure. According to Town Manager Jacobs, the location of the elevator will be determined based on the result of the towns Parks and Recreation Master Plan Study. This study is to be completed this fall.

$500K added contribution for PSPRS
The budget includes spending $500k as an additional payment to the State of Arizona Public Safety Pension Retirement Fund ("PSPRS"). This is the same as the added amount paid the past two years under the Winfield Administration. The timing of this payment will depend on the financial impact of the pandemic.

Public Safety challenge gets spending priority
Council was in agreement that public safety funding is critical to maintain. They agreed that public safety spending should be first priority. Town Manger Jacobs staid that "It is my obligation to fix a problem" if she learns of one from Chief Riley. She noted that the town does have contingency reserves to cover unforeseen events.

There were no public hearing discussion
The meeting was a public meeting. No hands were raised.

Effusive thanks to staff
Several times during the discussion, council members thanked staff for their work on the budget. Mayor Winfield summarized the comments: "I want to thank Ms. Jacobs and staff for their incredible work in putting the budget together for this fiscal year...during these unprecedented times of Covid pandemic."

Council Approves $105 Million Spending Limit For 2020-21

Unanimous approval of cap
Last Wednesday, the The Oro Valley Town Council unanimously approved a spending limit of $105 million for 2020-21. The council will meet on July 1 to discuss the budget in detail. They will be asked to approve the final budget at the July 15 meeting.

$11.4 Million not allocated to spending
2020-21 spending is budgeted to be less than the $105 million cap. There is $11.4 Million in "reserve". It is not allocated for spending in this budget. These are contingency reserves that could be used if there is a revenue shortfall; or council may decide to increase the line item budget when it meets on July 1.

The ending balance of the General Fund, the fund that pays for town operations, is budgeted to be $17.2 million. This is 41.4% of budgeted expenditures. The town has historically set 25% of expenditures as a minimum ending general fund balance.

2020-21 Oro Valley Budget

CAREs Act money boosts limit
The approved expenditure level is $4.5 million more than the amount submitted by Town Manager Jacobs in May. That recommended budget had a spending cap of $100.9 Million.

The $4.5 million addition comes from two sources:  One is the pending receipt of $5.3 million in Cares Act funding from the State.

The other is from savings and planned added revenue in town's golf operation. Billy Casper Golf has been selected as the course operator. Their proposal is to decrease golf operating and maintenance cost by $435,400 and to increase revenues by $300,300. The total financial impact is almost $736,000.

The spending limit can be changed by an emergency declaration by council. This would result in a supplemental budget.
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Guest View-Mike Zinkin: The Town Manager's Recommended Budget Is Not For The Residents

The TMRB is for the staff
The Town Manager’s Recommended Budget ("TMRB") has little to offer the citizens, but instead caters to the town employees.

Really, should you pay 100% of employee benefits?
It is true that there are no merit/step increases this year due to the pandemic, however, the budget asks that the Town ("You") pay 100% of the employee’s health benefits, if they choose the high deductible option. The budget states on page 18 that the employer contribution to the employee’s health premiums is $3,220,753, while the employee contribution is a mere $571,509. The employer (you) are paying 85% of the health premiums. What other employer pays 85% of health costs in today’s environment, especially during a pandemic when revenues are strained?

Restore Steam Pump Ranch Garage for employee space?
The TMRB on page 114 states that $550,000 is set aside to restore the garage at Steam Pump ranch. The recent Capital Needs Assessment identified this need. However, the use of the restored garage was intended for the Oro Valley Historical Society, NOT for employee office space. Again the needs of the citizens take a back seat to staff.

Use Bed Tax revenues for non tourism purposes?
Do not let the Town Manager have free rein on those revenues.  Page iii of the TMRB states the desire for the Council to remove all restrictions on our bed tax revenues. Those restrictions have been in place since our incorporation and require that a certain percentage of the bed tax revenues be spent on promoting tourism.

Yet Again...No money to make the Community Center ADA compliant?
Remember, the Council mandated that the golf course improvements be implemented on a pay as you go model. There has never been an $800,000 positive balance in the Community Center Fund, especially after transferring $120,000 to the General Fund to pay the mandated payback for the original start-up and transferring $148,000 to pay the Energy Efficiency Bond. Where is this money going to come from? Where is the money to make the Community Center building ADA compliant?

Council,  join with me: "Get into the weeds!"
There is a budget commission in place made up of citizens to help represent the people. Meet with them and ask for their input. Mayor and Council members, for the sake of your constituents, question the TMRB and get into the weeds as there are some real problems in this document.
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