Mike Zinkin: "Budget For Our Future.. Bring Reclaimed Water To All Town Parks and Courses"

Below is the speech that Mike Zinkin addressed to the Town Council during the April 6th Call to the Audience.
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Each of you had an agenda when you ran for office. The common theme was, “I want to help my community grow and prosper.” Some of you favor golf, some of you favor tennis or splash pads or hiking trails and biking trails. Some of you want to assist the children, some want to assist the seniors. Some of you favor development, etc.

Now is the budget season and, as a prior member of the Council, I know that staff is asking you about your spending priorities. Let me request that all of you do something, not only for the entire town, regardless of age, but for the future residents. Do something for your grandchildren and do something for those who are yet to be born.

Budget funds to pipe reclaimed water to Riverfront and Jim Kriegh Parks and the Pusch Ridge golf course.

I have researched this issue and have the numbers given to me by your staff. Pusch Ridge Golf course uses 30% more potable water than Riverfront and Jim Kriegh Parks combined. This is drinking water, not CAP water, not reclaimed water, but well water, drinking water.

According to a recent communication that I received from the Town, it will cost $8 million to pipe reclaimed water to all three of those entities. Once Jim Kriegh is on reclaimed water, it would not cost much to have the Amphi School District take CDO High School off of potable/drinking water as well.

This expenditure can be your legacy. This is something not only for now, but for the future. Put “tomorrow” in your budget. Put “we” in your budget.

Fund for the future. Fund to stop using potable/drinking water on Town-owned properties.

Oro Valley Bonded For Golf Improvements In 2016

The town has borrowed to pay for golf improvements
During the recent discussions on the “pay as you go” status of the golf courses, staff presented their forecasts for the next five fiscal years. The forecast shows no debt service. In reality, however, former Mayor Hiremath and his council did borrow for this facility.

Transfers out of the CCF pay for the debt
An inquiry was made by former council member and Oro Valley resident Mike Zinkin as to whether the forecasted “transfers out” of the community center fund ("CCF") included the $120,000 transfer to the General Fund to pay back the initial $1.2 million "loan" from that fund. The answer from Town Manager Mary Jacobs was that the $120,000 was included.

A follow up communication asked about the additional $148,810 forecasted transfer out. The response was that the $148,810 was the debt service for an "Energy Efficiency Bond". That borrowing was used to pay for a new pump on the El Conquistador Course and for an HVAC for the clubhouse that is now the community center.

The bond was issued in the amount of $2million in 2016. They are payable semi-annually from now until 2032.

This manner of reporting the debt service buries the fact that the town has borrowed to pay for golf and community center improvements
LOVE did not previously detect this because of the way the town accounts for the debt service on this bond. Rather than show it as "debt service" in the forecast, it is shown as a  “transfer out.”

According to Town Manager Jacobs, in response to Zinkin's inquiry: “We use fund accounting references in the budget. 'Transfers Out' accurately reflects the accounting of the dollars being transferred to the Debt Service Fund, then applied to the specific expenditure as noted…. The debt service payment for the energy efficiency bonds is then accurately reported in the Debt Service Fund, as the payment is made from that fund and not the Community Center Fund.”

This is not the first time we've been confused in the manner the town is reporting financial information. Check our posting entitled: "Jacobs Presents A Tricky Budget." There we report that the town changed the way things were reported so that readers could not easily compare this past year's budget to prior years.