Guest View: Mike Zinkin – Why Does the Town Council Keep Taking Money From the People to Subsidize the Golf Courses?

Golf operations have been in the black since FY 2021/22.
In 2020, the Town of Oro Valley entered into a 5-year agreement with the Canada Hills Community Association (CHCA) HOA and the Villages of La Canada HOA to keep the 36 holes of golf open. In return, the HOA’s would give the Town $125,000/year to support the courses. The CHCA would give $100,000 and the Villages would give $25,000. This was during a period when golf was losing millions of dollars.

Now, according to the Town Manager’s Recommended Budget (page v) “golf operations have been in the black since FY 21/22”.

The homeowners of CHCA never voted to approve this subsidy.
I can’t speak for the Villages, but I can speak for the CHCA (as I live there). The obligation of the $100,000 was never voted on by the homeowners of the association. There are approximately 3100 homes in the CHCA and some commercial properties (Fry’s center at Lambert/La Canada). Of the 3100 homes, approximately 400 of them align the golf course. The decision to obligate this money was made by the CHCA Board of Directors only.

I wonder how many of the 5 member HOA Board were golfers and were thinking of themselves and not their constituents. The CHCA homeowner’s dues have increased from $65.00/year to $118.00/year all for the purpose of giving the Town $100,000.

The difference between this HOA contribution and a property tax is that a property tax can be deducted from your taxes and also must be approved by the voters prior to being implemented.

If golf is in the black, how is our $100,000 per year contribution currently being used?
Under the previous Town Manager, the Council approved the expansion of the Community Center Fund to include Parks and Recreation. Does this mean the Town can now use the $100,000 in HOA contributions to help finance a splash pad or a BMX track? Golf, by the Town’s admission, is making money and no longer needs to be supplemented by the HOA’s, so it stands to reason that the HOA contributions are now going elsewhere.

The 5-year agreement ends on April 1, 2025.
Why doesn’t our responsible Town Council go to the HOA’s now and say, “Thanks for your support, but the Town no longer needs your monies to supplement golf” and then VOID THE CONTRACT.

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Mike Zinkin and his wife have lived in Oro Valley since 1998. He served on the Oro Valley Development Review Board from 2005-2009, the Board of Adjustment from 2011-2012, and the Town Council from 2012-2016. He was named a Fellow for the National League of Cities. He was a member of the NLC Steering Committee for Community and Economic Development and a member of the Arizona League of Cities Budget and Economic Development Committee. He was an Air Traffic Controller for 30 years. Mike has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge.

Bits and Pieces

Council to consider HOA agreements to help support town golf operations next Wednesday
"In October 2019, the Town Council approved a motion that provided certain conditions and parameters by which the Town would continue to operate and invest in the Town's golf courses. One of the provisions stated:

'The Canada Hills HOA will contribute up to $100k annually to reduce the tax support necessary for the 36 hole option to include the Conquistador and Canada courses. This will be for a 10 year period limited to 10% of the town’s audited figures for the previous year’s tax support needs. The Villages of La Canada will contribute $25k per year under the same conditions as the Canada Hills HOA. Payments will be made quarterly, beginning July 1, 2020.'"

The Town Manager and Town Attorney negotiated with the representatives of the two HOA's, resulting in the agreement attached. The agreement provides for a 10-year period with contributions of the $100,000 and $25,000 specified in the motion, but removing the limitations the motion established to no more than 10% of the town's audited figures for the previous year's tax support needs, and instead securing the full contribution for five years with an opportunity to renegotiate additional contributions in year 5 of the agreement.

The agreement further stipulates the Town's commitment to abide by the other provisions of the Council's motions on October 2 and November 6, 2019. It further provides for the possibility of extending the irrigation investment in the courses one additional year due to the pandemic, should that be necessary." (source)
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Council to discuss annexation strategy next Wednesday
The Oro Valley Town Council will discuss an annexation strategy in special session next Wednesday.
The strategy has annexation targets as detailed in the graphic at right. (source) Read our LOVE March 23 article on annexation here.
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Candidates participate in Jim Horne's Town Hall
The five candidates for Oro Valley's three council seats participated in a Zoom.us town hall last evening. Oro Valley resident Jim Horne, author of the Jim Horne's Oro Valley Podcast, was the moderator. The purpose of the town hall was for each candidate to discuss their candidacy with the public. There was no debate or cross discussion. Watch the town hall here.
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Council to discuss "Primary Employer Incentive Program" next Wednesday
"The purpose of the Primary Employer Incentive Program is to help enable long-term financial sustainability in Oro Valley through the creation of new primary job opportunities and the generation of new capital investments in the Town. In accordance with the economic development goals embodied in the voter-approved General Plan, the Town Council's Strategic Leadership Plan and the Council approved Comprehensive Economic Development Strategy, this program is proposed to assist Oro Valley in its efforts to attract high quality primary job opportunities and new capital investment to the community. If approved by Council, the Town of Oro Valley may offer different incentives such as fee reductions or reimbursement of other eligible expenses, depending on the nature of the project. Reimbursement amounts will be restricted to the amount of construction sales tax and related fees collected by the Town in association with the project.

These incentive reimbursements will help offset qualifying expenditures by the primary employer such as required new public infrastructure improvements, which could include partial offsets to impact fees, employee relocation and qualified job training programs, exterior building aesthetics and renovation expenses. The program aims to encourage the retention and expansion of existing primary employers. Additionally, the program will help attract new primary employers to the Town." (source)
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