Bits and Pieces

Council approves next year’s budget

Last week, the Oro Valley Town Council unanimously approved the Town’s final budget for fiscal year 2026-27. The budget sets a maximum expenditure limit of $127.99 million and includes the Town’s General Pay Plan and ten-year Capital Improvement Program. The projected ending balance across all Town funds is approximately $47.85 million. The new fiscal year begins July 1.

Council Member Murphy opposes use tax without an efficiency audit
Also last week, the Oro Valley Town Council approved a 2.5% use tax by a 4-3 vote. The tax generally applies to taxable business purchases from out-of-state sellers when an equivalent local sales tax was not collected. Vice Mayor Barrett and Councilmembers Murphy and Nicolson voted against the measure. Murphy told LOVE: “I will never vote for a new tax without an operational efficiency audit. It does not mean that I believe we aren’t operating efficiently, but I absolutely believe our residents and businesses deserve us to do our due diligence before ever enacting a new tax.” Council had first approved the tax in January, but that action became void after the Arizona Department of Revenue failed to update the Town’s tax code within the required period. The tax takes effect July 1.

Floodplain update protects access to insurance and disaster aid
The Oro Valley Town Council unanimously approved updates to the Town’s floodplain and erosion-hazard regulations. These changes keep Oro Valley in compliance with state and FEMA standards, helping preserve residents’ access to federally backed flood insurance and the Town’s eligibility for disaster assistance and flood-mitigation grants after a major storm.

Oro Valley plans a larger July Fourth celebration
Oro Valley will celebrate America’s 250th anniversary on July 4 at James D. Kriegh Park from 6:00 to 9:20 p.m. The free event will include live music, food trucks, children’s activities, a beer garden and fireworks beginning at 9 p.m. Parking will be available at the Oro Valley Aquatic Center and Canyon del Oro High School. Residents should note that pets, outside alcohol, smoking, glass containers, personal shade tents and personal fireworks are not permitted. Coolers are allowed but may be inspected.

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Bits and Pieces

Chamber honors local businesses and community leaders 

The Greater Oro Valley Chamber of Commerce recognized local businesses, nonprofits, and community leaders at its 34th annual meeting, held at El Conquistador on March 26.  There were more than 330 attendees. Among the awards: A Senior Journey was named Outstanding Small Business; Anchor Wave received Outstanding Midsize Business; and Splendido at Rancho Vistoso was recognized as Outstanding Large Business. In the nonprofit category, Hearts of Gold Police Family Outreach Foundation and Youth On Their Own were honored, while Karen Kochhar of Right at Home Tucson was named Outstanding Community Leader. The Chamber also presented its Legacy Award to Art State Arizona, highlighting its lasting contribution to the community.

Town agrees to pay county almost $12,900 for election services this year
The Oro Valley Town Council approved an intergovernmental agreement with the Pima County Recorder’s Office to provide election services for the 2026 election cycle, including voter registration maintenance, early voting, and ballot processing for both the July 21 primary and November 3 general elections. The agreement, which runs through the end of 2026, continues the Town’s longstanding practice of using county services to conduct its elections. The cost of these services is expected to be about $12,900, which will be paid to the county for administering the elections. (Source: The Oro Valley Town Council Meeting of April 8, 2026)

Town urges residents to sign up for CodeRED emergency alerts

The Town of Oro Valley is encouraging residents and businesses to sign up for CodeRED, a free emergency notification system that delivers alerts by phone, text, email, and social media. The system is used for urgent situations such as AMBER alerts, hazardous road conditions, boil water advisories, and evacuation notices. Officials recommend that users verify and update their contact information, including adding alternate numbers, to improve reliability during emergencies. The Town notes that CodeRED complements its broader communication efforts and helps ensure timely delivery of important safety information.  (Town of Oro Valley Media Release)

State delay voided commercial use tax approval...Council to restart process

Town staff informed the Oro Valley Town Council that the use tax approved in January has been voided after the Arizona Department of Revenue failed to update the official model tax code within the required 10-day period, despite receiving the Town’s ordinance within that timeframe. As a result, the Town must restart the process, including public notification and a new council vote. Council voted 5-1 to authorize staff to begin that process, with plans to bring the item back for consideration in June.  (Source: The Oro Valley Town Council Meeting, April 8, 2026)

Oro Valley leaders support Camp Corral fundraiser for military families

Oro Valley Councilmembers Elizabeth Robb and Mary Murphy will join the Disabled American Veterans Chapter 39 at a fundraiser for Camp Corral on Sunday, April 19 from 12 p.m. to 4 p.m. at Golden Corral (6865 N. Thornydale Road). Camp Corral is a national nonprofit that provides a free week of summer camp for children of wounded, ill, and fallen military service members, and has served thousands of children nationwide since its founding. The event will include raffle ticket sales, silent auction items, and donation opportunities, with proceeds helping send military children to camp and support the organization’s programs. The event is free to attend. (Source: Camp Corral Flyer)

Residents voice no opinion on the Path Forward General Plan at first public hearing

Tuesday, we reported that the Planning and Zoning Commission was holding a public hearing on the final resident-recommended draft of the Path Forward General Plan. As it turned out, only one resident had requested to speak but, when called, declined to do so. The Commission discussion focused on questions about specific elements of the plan, including broadband access for safety, and included general support for the plan and the level of resident participation in its development. The Commission will hold a second public hearing on April 14 before making a recommendation to Town Council.

Battle of the Bands registration opens for high school musicians

Registration is now open for the Oro Valley Battle of the Bands, scheduled for Friday, May 22 at 7:15 p.m. at Steam Pump Ranch. Bands must submit an original demo or YouTube link by May 15, with selected groups performing a three-song set in front of a live audience. To be eligible, at least half of each band’s members must be high school students. Winners will be chosen by a panel of judges, with first, second, and third place prizes awarded. (Source: Town of Oro Valley Parks and Recreation Bulletin)

Chamber Candidate Forum set for April 23

The Greater Oro Valley Chamber of Commerce will host a candidate forum on April 23 at the Oro Valley Church of the Nazarene, providing residents an opportunity to hear directly from candidates ahead of the July 21 primary election. The event is free and open to the public, and attendees are encouraged to submit questions in advance to help guide the discussion.  

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New Taxes not a "Silver Bullet"... Part Of A Package Of Actions For Sustained Oro Valley Fiscal Stability

Town has identified and council has considered three new taxes to cover possible future spending shortfall

In March, Oro Valley Finance Director David Gephart presented a five-year forecast of the Town’s General Fund showing that expenses are projected to exceed revenues beginning in fiscal year 2029–30. The General Fund—one of the Town’s many funds—supports day-to-day operations, capital spending, and transfers to other funds. In response to the projected financial shortfall, Town staff identified several ways to close the gap. These included implementing three new taxes already in place in nearby communities: a commercial rental tax, a use tax, and a telecommunications tax. Together, these taxes, along with long-overdue fee increases for parks and recreation programs, would close the roughly $3 million funding gap identified in the forecast. The Council approved the  Parks and Recreation fee increase in October. As reported last week, the Council is expected to vote on them at its next meeting.

 
New taxes are not a "silver bullet" but are part of a set of actions to insure financial sustainability

Though much has been said by town staff in favor of the proposed new taxes, these taxes are not a “silver bullet” for ensuring Oro Valley’s long-term financial sustainability. According to Mayor Joe Winfield, speaking at the October 15 study session on the new taxes, “We’re looking at this as one of many tools,” he said, emphasizing that the Town must continue to pursue multiple strategies to strengthen its financial position rather than relying on any single measure.  Winfield pointed to the Town’s strategic refinancing of its public safety pension debt—which has saved about $3.4 million—as an example of responsible financial management. He also cited other ongoing efforts to improve fiscal sustainability, including pursuing annexation of retail rich areas, working to reduce retail sales leakage, and supporting population growth through approved housing projects now under construction. Winfield said that all these actions together—not any single one—will help build a stronger financial foundation for the Town.

While town focuses on maintaining efficient operations

Winfield also stressed that the real solution also lies in maintaining an efficient municipal government and practicing disciplined budgeting. Finance Director David Gephart believes that the Town is running a “tight ship.” He emphasized that Oro Valley has been proactive in managing expenses and maintaining fiscal discipline. Gephart outlined several ongoing efforts to control spending, including limiting staff growth, consolidating positions where possible, and delaying or reprioritizing capital projects that are not immediately necessary. The Town is also using technology to improve efficiency, reducing reliance on outside consultants, and closely monitoring contracts and operating costs. He noted that departments have been asked to identify savings and that the Town continues to maintain healthy reserves without relying on short-term borrowing. Gephart said these measures have allowed Oro Valley to preserve high service levels even as costs increase and revenues grow more slowly, demonstrating that the Town is already “doing more with less” while continuing to strengthen its long-term financial position.

 
Impact of new taxes on businesses and tenants remains uncertain

Town staff said they do not believe the proposed new taxes would place a significant burden on residents or the business community. The only direct impact on residents would be a small increase in their cell phone bills. Regarding the commercial rental tax, Finance Director David Gephart said the effect on tenants would depend on lease terms and market conditions—some landlords might absorb part of the cost to stay competitive, while others would likely pass it through to tenants. Councilmember Nicolson initially disagreed, noting that most Oro Valley commercial centers are owned by large, out-of-state corporations that operate under strict financial models and are therefore unlikely to absorb new costs. Later in the meeting, however, Nicolson pointed out that Oro Valley’s commercial vacancy rate—about 14 percent—represents an oversupply condition that could limit a landlord’s ability to raise rents, meaning some may have to absorb at least part of the additional expense themselves.

Council decision will shape Oro Valley’s long-term financial path

Soon, the Town Council will decide whether to move forward with all or some of the proposed new taxes. The decision will determine how Oro Valley balances its budget in the years ahead—whether through new revenue sources, continued cost control, or a combination of both. Whatever the outcome, the discussion has made clear that maintaining the Town’s long-term fiscal stability will require steady attention, discipline, and a mix of strategies rather than reliance on any single solution.

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