Bits and Pieces

Colorado River Reservoirs Still Strained

As of August 10, the seven major reservoirs in the Colorado River system are only 39% full, holding 22.5 million acre-feet of water. That’s slightly less than a year ago, when they were at 41%. The two largest reservoirs, Lake Mead and Lake Powell, remain at just 31% of capacity each. Since the Colorado River is Oro Valley’s primary source of water, these persistently low levels highlight the continuing challenges of long-term water supply. (Source)

Community Academy returns this fall

The Town of Oro Valley’s Community Academy begins October 2 and runs through November 5. This year’s program offers nine classes, including new sessions on water and tourism. The Academy gives residents an inside look at how the Town operates, and many graduates later go on to serve on boards and commissions. Registration is available here.

Community Center Fund: Financial results for year even stronger than anticipated

In our September 3 report, we noted that town staff projected that the Community Center Fund was on track to add about $750,000 to reserves, ending fiscal 2025 with a $2.6 million balance. Final year-end results came in even better. Revenues reached $12.1 million, or 113% of budget, while expenses were 2% over plan. The fund added $1.1 million to reserves and closed the year with a $2.9 million balance. (Source: Parks and Recreation Commission Meeting of September 9, 2020)

Oro Valley Welcomes New Economic Development Manager

Sarah Denman has been introduced as the Town’s new Economic Development Program Manager, following Margie’s retirement. In her role, Denman will oversee the Town’s Business Retention and Expansion Program, co-manage the Shop Oro Valley campaign with the Chamber of Commerce, and assist businesses with site analysis, permitting, and resources. She brings experience from working with the City of Tucson, Pima County, Sahuarita, and AmeriCorps. Denman, who moved to Southern Arizona in 2020, holds a Master of Public Administration from the University of Arizona and looks forward to supporting Oro Valley’s business community. (Town of Oro Valley Media Release)

Jankowski Named Outstanding Professional of the Year

Deputy Parks and Recreation Director Matthew Jankowski has been honored as the 2025 Outstanding Professional of the Year by the Arizona Parks and Recreation Association. The award recognizes his leadership and innovation since joining Oro Valley in 2018, where he has overseen major growth at the Community Center and Aquatic Center, secured nearly $1 million in upgrades, and helped bring a $1 million grant to develop a skate and bike park at Naranja Park. Jankowski also serves as Vice President of APRA and was recently appointed by Governor Katie Hobbs to the Arizona Outdoor Recreation Coordinating Commission. (Town of Oro Valley Media Release)

Council Approves Broadband Partnership

Last week, the Oro Valley Town Council approved an intergovernmental agreement with Pima County to join the Regional Middle Mile Broadband Infrastructure Project. The initiative will build a countywide fiber optic ring that enhances public safety communications, supports next-generation 911 services, and opens the door for expanded broadband access. Oro Valley will contribute $200,000 in FY 26–27 and provide in-kind support such as permitting and inspections. In return, the Town gains access to more reliable fiber infrastructure, improved digital equity, and long-term opportunities to attract businesses and expand internet service. (Source: The Oro Valley Town Council meeting of 9-03-25)

RTA Next Plan of $3Billion Vote scheduled for March

The Pima County Board of Supervisors has unanimously referred the Regional Transportation Authority (RTA) Next plan to the March 2026 ballot. The plan is the result of years of meetings and negotiations among community and business leaders, including contributions from Oro Valley Mayor Joe Winfield, who served as chair of the RTA Board, and Town Manager Jeff Wilkins, who provided technical input. Supporters describe the measure as a balanced plan that will benefit Oro Valley as well as the broader Pima County community. More information about the projects included in the plan is available at the RTA Next.

May 2025 Financial Update: Larger than budgeted fund balances expected at year end

Bottom Line: Larger than budgeted fund balances expected at year end

All six of the Town’s major funds are estimates to end the fiscal year with balances greater than budgeted. This conclusion is based on a staff presentation to the town's Budget and Finance Commission

in August. The estimates are based on fund balance positions as of May.   

Delayed spending and savings drives most reported results

A larger than planned fund ending fund balance does not mean the Town is operating more efficiently or being more fiscally responsible. This is because the cash balances also reflect the timing of receiving and paying funds. Because the Town uses cash basis accounting, lower spending may simply mean that a project or service has been completed but payment has not yet been made; or that work has not yet started. For example, some capital projects in the Capital Fund have rolled into the next fiscal year, and certain road preservation projects in the Highway Fund and equipment purchases in the Water Utility Fund are being delayed.

General Fund: Lower revenues and expenditures

The General Fund pays for most day-to-day Town operations, excluding spending by the Water Department and the Stormwater Utility Fund. It also provides to other  funds, such as the Capital Fund and the Community Center Fund. Its performance therefore matters. General Fund revenues are down about 4% year over year, driven mainly by lower-than-expected construction sales tax revenues. This is despite licenses and permits exceeding the annual budget, with 106 single-family permits issued through May. Expenditures are tracking under budget due to unfilled positions and operations and maintenance savings. The Town now expects to use about $2.3 million of fund balance instead of the planned $4.1 million, leaving reserves about $4.4 million above the 30% Council policy threshold.

Highway Fund: Delayed road projects boost fund balance
Revenues in the Highway Fund are at 83% of budget. Highway User Revenue Fund receipts are slightly below plan, but higher right-of-way permit fees and insurance recoveries help offset that shortfall. The fund also receives quarterly transfers from the Capital Fund, totaling $4 million for the year. On the spending side, savings are expected in personnel, street and traffic signal maintenance, and several capital projects. Equipment and road work came in under budget, including the Magee Road and La Cañada Drive mill and overlay projects. The Town Council also shifted funds from a planned truck purchase to a less expensive crack seal machine, producing additional savings. Instead of a $365,000 change in fund balance as budgeted, the fund is now projected to add about $870,000 by year-end. 

Community Center Fund: Better than planned revenues balanced, somewhat, by greater than planned spending
Revenues in the Community Center Fund are ahead of budget, reaching 105%. Golf activity is strong, with 111,115 rounds played through May, an increase of 8.2% from last year. Town revenues from dues, recreation programs, and rentals are also higher than expected. Expenses are running over budget due to higher labor, utility, and credit card costs, as well as increased personnel costs. Even so, instead of using $115,000 from the Community Center Fund balance as planned, the fund is now projected to add about $750,000, ending the year with a balance of $2.6 million. These results include a transfer from the General Fund of $3.59 million, projected to reach $3.9 million by year-end (June). The Community Center Fund also transferred $1.72 million to cover debt service on the $25 million Parks and Recreation bond.”

Capital Fund: Rolling some projects into next year
Revenues in the Capital Fund are at 85% of budget through May. These include a $1 million state grant for the Naranja Park pump track and skatepark, $5.35 million in transfers from the General Fund, and higher-than-expected interest earnings. On the spending side, only $4.5 million of the $10.3 million budgeted for capital outlays has been used, as several projects will roll into the next fiscal year. Transfers out include funding for road work into the Highway Fund and $2.2 million set aside for the Vistoso Trails Nature Preserve and transit vehicles in the Grants Fund. Instead of using $5 million of fund balance as planned, the fund is now projected to use only about $400,000, leaving an ending balance of $11.7 million. 

Water Utility Funds: Increases revenue...some cost savings
Revenues in the Water Utility Fund are expected to slightly exceed budget, helped by reclaimed water sales, service fees, and higher interest earnings. Loan proceeds total about $7.2 million compared to $8 million budgeted. On the expense side, savings are coming from staff vacancies, lower costs for CAP water deliveries, and reduced system maintenance. Capital outlays are also running below plan. Debt service payments were made as scheduled, and transfers are being used to fund regional water projects such as the Northwest Recharge, Recovery, and Delivery System. Instead of the $2.3 million increase that was budgeted, the fund is now projected to grow by about $6.2 million, ending the year with a balance of $15.5 million.

Stormwater Utility Fund: Spending timing impacts fund balance
Revenues in the Stormwater Utility Fund are on track, with fee collections near budget and interest earnings well above expectations. A FEMA grant for $210,000 for the Sierra Wash project will roll into the next fiscal year. On the expense side, savings are coming from vacancies and lower costs for vehicle and equipment repairs, field supplies, and gasoline. The Sierra Wash project had a budget of $735,000 but is now estimated to cost about $380,000 by year-end . Instead of using $432,000 of fund balance as budgeted, the fund is expected to use only about $127,000, ending the year with a balance of $936,000.

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Council To Consider Folding Community Center Sales Tax Into General Fund In August

Tax no longer need to support municipal golf and the community center
The Oro Valley Town Council will consider folding the one-half percent Community Center sales tax into the town's General Fund when it returns from summer holiday in August. This will make the funds available for any use; not just use for the community fund or other recreational assets. This tax was enacted ten years ago by a 4-3 council vote when the town acquired the 47-hole El Conquistador Golf facility from HSL Properties. The reason for the tax was to provide a stable, dedicated funding source to support the newly acquired community center and golf operations, which were expected to run at a deficit in the early years. The expectation was that the tax would not be needed after that time.  But, as we all know, a tax, once enacted never goes away, 

Mayor’s proposal: Move the tax to the general fund
At last week’s Council meeting, Mayor Winfield proposed folding the tax into the general fund for several reasons:

• The dedicated sales tax has stabilized the finances of the community center and golf operations, which are now performing better and require less support.
• Moving the tax revenue to the general fund allows the Council to allocate funds to the town’s most pressing needs—including public safety, roads, parks, infrastructure, and community services—rather than limiting it to the community center and golf.
• The current arrangement is perceived as benefiting a narrow interest group.  Yet the tax is collected from all residents and visitors. Integrating it into the general fund “reinforces unity and fairness” and reflects a shift to shared community investment.
• This change would increase fiscal flexibility as Oro Valley nears build-out and construction-related revenues decline, positioning the town for long-term financial health.

Council reactions: Range of opinions, but no support for status quo
Council members expressed support for doing something different with the tax revenues. None supported leaving it as a dedicated source for the community center only: 

• Vice Mayor Barrett supported the Mayor’s proposal:  “I am so pleased with how well golf is doing. For the second year in a row we have not relied on any of the tax money, and that’s what it was basically set up to do ten years ago. ” 
• Council Member Murphy floated the idea of dedicating the tax for all parks and recreation programs. 
• Council Member Greene seemed cautious about making a change:  “I think if we go back historically, this money was designated for the community center and for golf and I think that we need to keep that in mind as we begin to spend it on other issues as they come up. So, I’m for really having a full discussion on this and not acting precipitously on it tonight.”
• Council Member Jones-Ivey leaned toward the parks and recreation fund idea but expressed concern about transparency if the money goes to the general fund: “Sometimes when monies go into the general fund, it really in the past has kind of gotten mired so that transparency is lost. … My question would be: How would we then earmark that money going into the general fund so if something is needed in parks and rec, it can come back?”
• Council Member Robb summed up her support for a change stating, “I agree it’s time to share the wealth on this money.” 

August public hearing. ..Active community involvement
The August meeting will be a public hearing on the proposed change. The community center and golf supporters are expected to pack the hearing and advocate for keeping the tax dedicated to their operations. Historically, they have been successful in persuading the Council to continue support. It remains to be seen whether Mayor Winfield will stick to his position or compromise as he has done in the past when face was significant opposition. 

"Putting to bed" a "bone of contention”

Golf and the community center have been a point of contention since former Mayor Hiremath first brought the acquisition to the council in 2014. The hope is that folding the sales tax into the general fund will help reduce this ongoing debate. 

No discussion of permanently sunsetting the tax
One thing the Council will not consider is ending (sunsetting) the community center sales tax. As it stands, this tax means Oro Valley’s sales tax rate is 2.5% is the highest in southern Arizona. This higher rate may contribute to residents and visitors shopping outside of Oro Valley for big-ticket items, as it is less expensive to shop elsewhere.

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Bits and Pieces

Traffic delays expected on Ina at Westward Look today

Drivers should expect traffic delays today at the intersection of Ina Road and Westward Look Drive due to traffic signal repairs. Westbound Ina will be reduced to one lane with a 25 MPH speed limit, and periodic full stops will occur during crane operations. Oro Valley Police will direct traffic while the signal is offline. Motorists are encouraged to use alternate routes and allow extra travel time.

Nine Month Results: Town finances remain stable with a caution

Town staff reported at Tuesday's Budget and Finance Commission meeting that Oro Valley’s financial position remains strong through the first nine months of the fiscal year. Revenues—including sales tax and recreation income—are generally meeting or exceeding budget, while most departments continue to manage expenses at or below expected levels. Staff credited conservative budgeting and a healthy local economy for these results, but cautioned that slower revenue growth may be ahead, reinforcing the need for continued prudent financial management.

Nine Month results: Community Center Fund surplus grows as golf revenues exceed budget

Tuesday, The Parks and Recreation Advisory Board received an update on the nine-month financial results for the Community Center Fund and municipal golf. Staff reported that both areas are performing well above expectations. Membership and program revenues are exceeding budget, golf rounds and revenues remain strong, and overall expenditures are on track or below budget. As a result, the Community Center Fund is now projected to end the year with a significant surplus, growing the fund balance to an estimated $2.3 million.

Staff sees progress toward golf self-sufficiency...possibly freeing funds for other recreation activities one day

Also at this meeting, staff reported that municipal golf operations are now generating an operating profit, thanks in part to strong membership growth and efficient management. Since the town took ownership ten years ago, about $29 million in half-cent sales tax has been collected to subsidize golf and the community center, with cumulative operating losses and major capital investments totaling about $19 million ($10 million each for losses and capital). Now, things may be changing. Staff noted that the next step is to use these operating surpluses to fund ongoing capital improvements, reducing the need to rely on the half-percent sales tax for golf’s capital needs. As golf operations move closer to full self-sufficiency, staff emphasized that more sales tax revenue will be available to support other parks and recreation projects across Oro Valley.

Honor America's Heroes Monday

Memorial Day is more than just a day off—it’s a time to remember and honor those who gave their lives in service to our country. Join the community on Monday from 10 a.m. to noon at the Arizona Heroes Memorial in Naranja Park for a special remembrance event. The ceremony is free and open to all.

OVPOA: Delay in police MOU discussion a good thing

According to Chris Knapp, representative for the OVPOA and FPO (Fraternal Order of Police), removing discussion of the possible wage agreement between the town and OVPOA from last night's council agenda is a good thing.  Knapp noted that there have been discussions with council members and staff and that good progress has been made. Knapp thinks a compromise is at hand.  A new MOU will be presented for approval at the June 4 council meeting.

Vella provides added insights into the Trails Master Plan
On Tuesday, LOVE provided an update on the Town’s Trails Master Plan study. That evening, Town Planning Manager Bayer Vella offered additional insights during a presentation to the Parks and Recreation Advisory Board, expanding on several key areas:

• Funding may be key: Vella noted that Marana dedicates part of its bed tax to trail and open space improvements. Oro Valley may consider a similar approach to fund future trail needs.
• Trail easements required: Much of the well-used trail land north of Big Wash lies on State Trust Land with no public easements. Gaining access will likely require coordination with state and county agencies and possibly purchasing easements.
• Trail difficulty ratings suggested: Board members proposed labeling trails by difficulty, similar to ski runs. Vella confirmed that trail maps will include slope, surface type, and other features to help users—especially families and those with mobility concerns—plan their outings.
• Connectivity gaps identified: Suggestions included creating safer access from the Loop to Catalina State Park, and building a direct connection from Riverfront Park to the Loop—both of which will likely be included in the plan’s recommended actions.
• Volunteer and partner contributions remain vital: The Town has no full-time trail planning staff. Many unpaved trails have been built by developers or volunteers, and that approach will remain important as the system expands.

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Bits and Pieces

Barrett: Should the town rename the Community Center Fund?

At last week's council meeting, Vice Mayor Barrett reacted to a comment made by Council Member Solomon. Solomon has repeatedly complains that half of the half percent Hiremath Community Center sales tax no longer goes to support golf only.  

"I usually listen to this argument and let it pass, but I don't feel like I can tonight," Barrett noted. "The community center fund sales tax was passed unilaterally by council on a four-to-three vote. This council, on a six-to-zero vote, expanded the use of that sales tax with the exact same authority that passed it to begin with; through the same mechanisms, and ordinances. So continually saying that the community center fund sales tax is just for the community center and the golf courses is just not the case.” That expanded use of these sales tax monies also now goes to funding Naranja Park and other park-related amenities. "It probably shouldn't even be called the community center fund anymore, because now that can be allocated to parks and recreation."

Tiny Bits

• Naranja will likely have its grand reopening in May (Source: Town Manager Wilkins)
• Ashley Furniture is now "Lounge By Levitz"
• Council voted to reduce town's Historical Preservation Commission" from seven to five members. Lack of resident interest in being on the Commission was the primary reason 

Big 50th Anniversary Celebration Saturday

The Town of Oro Valley invites residents and visitors alike to join us for the 50th Anniversary Community Celebration at James D. Kriegh Park this Saturday, April 13, 2024, beginning at noon and concluding with a fireworks finale at 9:30 p.m. JDK Park is located at 23 W. Calle Concordia. (Source: Town of Oro Valley Press Release)

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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.

Guest View-Tim Bohen: Town Golf “Success” is an Nothing More Than An Accounting Gimmick

Town golf is a financial drain on the community

The only thing we residents need to understand is that the 0.5% sales tax allocation grows annually. In 2021/22 it is $3.4M. That is the equivalent of 85,000 rounds at $40 a round or 34,000 rounds at $100 a round simply added to the bottom line.

Anyone can turn a $3.4M subsidy into a $200K profit

Look at the courses. The holes are almost always empty after 9 AM or so. The nearby [former] Vistoso golf course closed due to lack of play. 

In my analysis, the numbers reported to Council of actual rounds played are being fabricated
For example, the town claimed 6,212 rounds played in May with only 18 holes open. This is approximately 200 rounds a day for 30 days. But only a maximum of 20 golfers can tee off every hour (assuming that 4 tee off every 12 minutes) which is busy. Thus, in order for 200 daily rounds to be played, foursomes would be teeing off every 12 minutes for 10 hours straight every day! Do you see foursomes on every hole at 5 PM when the course would need to still be full to allow everyone to finish? Or even at 1 PM? Or even 10 AM?

I asked for an audit in a Council Meeting and we got crickets

This [reported] "success" is an accounting gimmick and nothing more. I estimate that we have 1000-2000 actual monthly rounds per 18-hole course being played at most. I suspect that the rest is your 0.5% sales tax proceeds being passed off as phantom golf rounds. Why? Because Indigo gets a management bonus based on golf revenue, which can only come from reported rounds played. But until Oro Valley gets an audit from Indigo, we'll never know what is actually happening.

You can call Community Center golf a success if you like. I certainly won't.
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Tim Bohen grew up in Southern California and moved to Oro Valley in 2015. He has a Bachelor’s degree in Physics from UCI and an MBA from Loyola Marymount. He graduated from the Oro Valley Community Academy in 2016 and the Citizens Academy in 2017. He has been on the Oro Valley Town Council since 2020. His interests include aviation and history.

Guest Opposing View: Golf Is Not A Financial Drain On Oro Valley

Last week, Mike Zinkin reported his views on the operating and financial health of the Oro Valley town’s Community Center Fund. His assessment is that the Community Center fund is certainly not doing as well as the Town Manager says it is. 

The implication is that golf is the problem.  Former town Budget and Finance Commission member David Newell does not agree. Writing on LOVE’s facebook page he noted the following.
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“This might be the most erroneous thing I have ever seen written about the town golfing operations. A correction should be made. Mike Zinkin is correct when he says there were 2,627 public pay rounds played on town courses. But on the exact same line of the spreadsheet in the Town Manager's Executive Report to Council, it SPECIFICALLY SAYS an additional 2828 rounds were played by members, 673 rounds were played by Outings, and 84 rounds were played by Comps (reimbursement for advertising and selling rounds on GolfNow and other sites). There were 6212 rounds played in May on the Town Courses.

Mike Zinkin's argument is the mental equivalent of saying a local Subway sold 2627 Roast Beef Sandwiches in May. A local Arby's Sold 3700 Roast Beef Sandwiches. The Subway sells less sandwiches than Arby's, even though the Subway sells 3582 Ham Sandwiches as well.

Oversight is important, and we want to make sure that we can identify places where town services can improve, but the count of public play rounds is simply not a key performance indicator. The citizens of Oro Valley would surely prefer selling 2000 rounds of golf at 100 dollars a round for 200,000 dollars of revenue, rather than 3000 rounds of golf at 50 dollars a round for 150,000 dollars of revenue.

The true key performance indicator, and a simple one to understand, is how much profit or loss the golf operation sustains over a period of time, and how much if any subsidy of tax dollars is required to keep it from losing money. From the latest town financial report: "With the most recent year-end projections provided by the golf contractor, the Town is not expecting any year-end sales tax support for golf operations. The projected net loss of $36,172 for contracted golf operations will be covered by $159,050 in outside HOA contributions, and approximately $83,000 in local sales taxes generated from golf related operations." Golf is projected to turn over 200,000 dollar Profit to the town's bottom line this year. When Mike Zinkin was on the council, Golf routinely lost the town close to 2 million dollars a year. Obviously, things are very different, and improved, now.”

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The Watchdog Report: Do You Really Believe that Town Golf is doing OK?

Let’s start with the number of non-member rounds played in May
This is the first time we can compare apples to apples as there were only 18 holes open. (The Conquistador Course is closed for a $7 million irrigation project and the Pusch Ridge Course is closed for the season).

The Oro Valley owned La Canada course had 2,627 rounds. For comparison, a public course within 5 miles of us had 3700 rounds, and a semi-private course within 5 miles had 3,802 rounds. Oro Valley’s wonderful investment didn’t fare as well. In addition, the number of golf members was reduced to 326 in May, a reduction of 19 members from the previous month.

Now let’s look at the financials presented on the Council agenda for June 15, 2022
The Community Center Fund (“CCF”) [panel: document on left] shows a positive balance of $3,446,645, but it also shows that there is $1,868,519 in upcoming transfers and $132,500 still to be paid in capital.

Click To Enlarge

There still is no transfer scheduled to pay back the General Fund for the initial “kick start” for the CCF. This General Fund payback was put on the June 15 agenda for “Discussion and Possible Action.” On a 6-1 vote (with Councilmember Bohen dissenting) the Winfield council rescinded the 2015 decision of the Hiremath Council to pay back to the General Fund the money that they transferred out of it to start the Community Center Fund. This is precedent setting. 

In essence, the current Council has reneged on a commitment set by a prior Council. Of the $1.2 million dollars that was supposed to have been paid back to the General Fund, only $480,000 was paid back. The remaining $720,000 is not and will not be paid back as was promised in 2015.

The five-year forecast [panel: document on upper right] shows that Town Manager Mary Jacobs forecasts that the CCF will end FY 2021/22 with a positive balance of $2,983,676.  This is impressive considering that the CCF has never ended the fiscal year with a positive balance.  However, Jacobs goes on to forecast that the CCF will end FY 2022/23 with a $4,660,469 deficit. Yet, we are told by the Mayor that “golf losses have been substantially reduced.”  In fact, Jacobs doesn't forecast the CCF to end a fiscal year with a positive balance until FY 2024/25 and then it is only by $9,304.

The year end projection of the fund’s balance assumes [panel: document on bottom right] that the HOA’s will continue to contribute to the CCF. Why would they want to continue to do this? There is absolutely no guarantee that their contribution will be spent for golf, since the CCF has now been expanded to include Parks and Recreation needs and a $300,000+ expenditure to maintain the Vistoso Nature Preserve. 

Another assumption is that there will be modest economic growth and no economic downturns, which is contrary to every economic report out today.

Still circling the drain
Bottom Line: Golf and the Community Center continues to drain Oro Valley of its much needed revenues. Remember, in the 500+ page purchase agreement, there is never any mention of a community center…it is always referred to as a COUNTRY CLUB.  

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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

The Town of Oro Valley lives well while many residents are hurting
Oro Valley Town Finance Director Gephart reported to the Town Council on Wednesday that just about every source of income to the General Fund are well ahead of budget as of April. 

Things look great. 

In fact, General Fund revenues are estimated by year end to be $6.3 million ahead of budget. That’s 13% better than budget. At the same time, General Fund expenditures are estimated to be $2.7 million less than budget. That’s 4% less than budgeted spending. Major factors in play are that inflation is driving the sales tax revenue increase of 23% over budget. The spending underage is the result of the town’s accounting for debt service on pension obligations. 

Given the town’s strong financial position, a reduction in fees residents pay for most of the town’s recreation facilities would be in order; given the impact that current historic inflation is having on reducing the buying power of the many senior residents… most of whom are on fixed income. This council has failed to even consider reducing taxes and fees residents pay!

Scrooge July 4… No fireworks! Laser Show at Kreigh Park instead
The Town of Oro Valley will celebrate July 4 at Kreigh Park with a Laser Show. There will be not be fireworks because of “supply chain issues,” according to Town Manager Mary Jacobs.  The event will start at 6pm. There will be a “Tom Petty Cover Band”, plenty of food trucks and lots of things to do. “Bring your chairs and blankets and enjoy a 4th of July in person.”  (Source: Town Manager Oral “Report To Council’, 6/15/22)

We understand that other communities will have fireworks. Guess they did not have any “supply chain” issues!

OVCN residents continue to speak out
Those who will be most impacted by the major sports facilities proposal of the Church of the Nazarene (“OVCN”) continue to address the town council. Speaking at this past Wednesday’s Meeting, they unanimously oppose this proposal for a variety of reasons. Follow LOVE’s exclusive coverage of this, “Do Unto Others”. 

Council declares Community Center Fund “Fully Paid”
In 2015, the Oro Valley Town Council, led by then Mayor Hiremath, voted to borrow $1.2 million from the General Fund to start the Community Center Fund. That money was to be repaid in annual installments of $120,000 per year for ten years. The present town council, led by now Mayor Winfield, set a precedent at Wednesday's council meeting meeting.  On a 6-1 vote (Councilmember Bohen dissenting), the council voted to rescind that annual repayment by declaring the debt “fully paid”.  This is precedent setting.  In essence, the Council has reneged on a commitment to pay back a debt that has been incurred by the town.

Monsoon ready? (Fill you own) Free sandbags available for Oro Valley residents
“ORO VALLEY, Ariz. (June 15, 2022) – June 15 marks the official start of monsoon season in Southern Arizona, and the Town of Oro Valley wants to make sure you are monsoon ready! Beginning today, June 15, the Town will provide free sandbags to residents who may need to protect areas of their homes from storm runoff during monsoons.

Sandbags can be picked up now through the duration of the 2022 monsoon (or while supplies last). Due to a limited number of supplies, only Town of Oro Valley residents are eligible. Sandbags are self-service; the Town will provide the bags and sand, but you will need to bring your own shovel and load your own sand. There is a limit of 10 sandbags per vehicle.

Pickup Location
*Naranja Park (810 W. Naranja Drive) Follow the signs to the area known as the “Christmas tree recycling lot,” just north of the archery range (see Pickup Location Map below). “ (Source: Oro Valley Press Release)

Lane Restrictions on Naranja: June 21 to July 1
“ORO VALLEY, Ariz. (June 16, 2022) – The Oro Valley Water Utility will be replacing a water main underneath Naranja Drive starting Tuesday, June 21, causing lane restrictions that will impact both lanes of travel and potential traffic delays until Friday, July 1.

The water main replacement is underneath the eastbound lanes of Naranja Drive, between Monterra Vista Drive and Desert Whisper Way. Traffic will be shifted to the westbound lanes on Naranja Drive, with one lane of traffic each way. Speed will be reduced to 25 mph in the construction zone. For the safety of workers and other drivers, please obey construction message boards, traffic signage and signals. Drivers are encouraged to find alternative routes of travel to avoid delays. “(Source: Oro Valley Press Release)

The Watchdog Report: Methods for financing the Community Center keep changing

 

A recent political ad
In a political ad in a recent publication, Mayor Winfield states: “The Town’s two golf courses are now projected to require no Town tax subsidy for operations in 2021/2022 fiscal year.”

However, the most recent financial report covers the current fiscal year through February, which is 66% of the way through the year. The statement shows that the contracted expenses overshadowed the revenues by $1,079,143. Mr. Mayor this is a loss. The fiscal year ends on June 30, 2022. The Town closed the Pusch Ridge and Conquistador courses in May so that should limit the losses, BUT the golf courses will still see a loss and will require the tax subsidy.

NOTE: LOVE reached out to Mayor Winfield who informed us that the Town updated the golf subsidy projection after he submitted his political ad, and that, “The most recent golf subsidy projection for this fiscal year is now $78,000.”

The Golf Courses: How does FY 2022/23 look?
Page 7 of the Town Manager’s Recommended Budget shows that the 2023 Community Center Fund (CCF) budget is forecasted to lose over $2.1 million. The Council borrowed/bonded for $25 million, half of which is to go to the Community Center. This bond has indebted the Town for 20 years for over $2 million/year.

The Town’s two golf courses are going to cost us over $8 million for irrigation improvements, $276,000 for cart path improvements, $105,000 for bunker and turf reduction, and $159,000 for golf maintenance equipment replacement all in FY 2022/23.

If the tax subsidy is no longer required, just where is all this money going to come from?

Answer: The Capital Fund is picking up the slack
The mayor tells us that the money is coming from the Capital Fund. However, the CCF was set up to support all the needs of the community center (golf/tennis/fitness/Overlook restaurant, recreation). Because there is not enough money in the CCF to support these needs, the money is now coming from a different fund.

NOTE: The mayor provided the following information to LOVE regarding the $8 million in golf irrigation improvements that will be taken from the Capital Fund rather than the Community Center Fund:

FY 2022/23
Golf Course Irrigation (Conquistador Course) - $4,630,000
Golf Course Irrigation (La Canada Course) - $2,350,000

FY 2023/24
Golf Course Irrigation (La Canada Course) - $2,000,000

The Bottom Line
The half-cent sales tax subsidy ($2 million annually), the HOA subsidies ($125,000 annually), and the $25 million bond are not enough, so additional money is needed which is now coming out of the Capital Fund.

- - -
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.

Guest View: Mike Zinkin – “Abide by the policies set forth in the Town Code and Council Policies”

Below is the speech that Mike Zinkin addressed to the Town Council during the April 20th Call to the Audience.
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Mayor and Council,
It is time to take back control of this Town from the Town Manager and abide by the policies set forth in the Town Code and Council Policies.

I have communicated with you on more than one occasion that at the Council meeting of March 4, 2015, the Council passed a motion taking $2.1 million from the General Fund to “kick start the Community Center Fund (CCF).” The motion also stated that the CCF would pay back the General Fund within 10 years with an annual payback of $120,000.

I have noticed that the $120,000 payback was not made during this fiscal year. When I brought this to the attention of you and the Town Manager, the reply I received from the Town Manager was, “A prior Council’s actions cannot bind a current or future Council.”

One councilmember wrote the Town Manager and informed her that her response could not be verified.

Town Code Article 2 Section 4-7 states that the Town will abide by Robert's Rules of Order. Robert's Rules state that a motion can be modified in two ways. A motion to reconsider, or a motion to rescind.

A motion to reconsider must be made no later than the next scheduled meeting. Some of you have attempted to do this regarding another matter, but the Town Manager obstructed your attempt which was in violation of Council Policy #11.

A motion to rescind can be made at any time but requires 5 votes to pass. Unless you move to rescind the 2015 motion, you are obligated to continue the annual $120,000 payback to the General Fund from the CCF.

Additionally, the Town Manager has hired a CIP Director (Capital Improvements Project), which is a position that was not budgeted. Town Policy 6 mandates the Town Manager to come to you for any unbudgeted expenses. The Town Manager tells me that this is a temporary position and is funded by the CIP Fund. Temporary or not, it is unfunded. Using the CIP Fund is also a violation in that CIP funding is from one-time revenues and is to be spent on one-time expenses. An employee is an ongoing expense. This is another violation.

Page 226 of the FY 20/21 adopted budget allocates $105,000 during FY 21/22 for “Council Chamber Audiovisual upgrades.” In a recent communication with the staff, I was informed that the Council Chamber renovation cost $607,125.00 and was paid for with Federal CARES funding. I don’t care where the funding came from, what concerns me is that you did not authorize it. The Town Manager never came forward to request unbudgeted expenses, again in violation of Town Policy.

This must stop. You need to gather in the Town Manager and set some boundaries and reinforce the rules. At this point, you also have enough evidence to terminate her for cause. Do something, as you are ultimately responsible.

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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

Meet the "cops" tonight... Bring the kids!

"The Oro Valley Police Department, in partnership with Walmart, will be hosting the annual National Night Out at Walmart Shopping Center located at 2150 E. Tangerine Rd, Oro Valley, Arizona. Costumes are encouraged! Join us for a fun night with lots of activities for children including Motor Demos, prizes for kids, displays from local fire and law enforcement agencies and of course.... CANDY!" The event is from 6:00 to 8:00 pm.

New Online Water portal starting this January

"The Town of Oro Valley Water Utility is excited to announce the implementation of a new and improved online customer portal that will make account payments and management easier than ever before! The self-service portal will allow customers to set up convenient payment methods, update contact information and access historical billing statements. The new system also means your bill will have a new look. The Water Utility is planning to launch the new customer portal in January, so keep an eye on your upcoming Water Utility bills and on the Town’s website for complete details, including helpful information on how to set up your new account." (Source: Oro Valley Vista Newsletter, November 2021)

Town has fourteen job openings

The Town has fourteen open position. These include a lifeguard position, fitness instructors, parks and recreation event volunteers and an entry level police officer position. Click here or visit www.orovalleyaz.gov and click on the blue “Apply for Jobs” button." (Source: Oro Valley Vista Newsletter, November 2021) 

Big Wash trail head under construction

Big Wash Trailhead users will start seeing construction equipment and activity as crews begin to clear vegetation adjacent to the trailhead for future bank protection. But rest assured, the trail and parking lot will remain open, with no detours or closures.

The Big Wash Trailhead is located along East Rancho Vistoso Boulevard at North Del Webb Boulevard, and the clearing, immediately to the south and west of the trailhead, is associated with the new Tranquilo at Rancho Vistoso subdivision. The subdivision, which is in the early stages of grading, will eventually have 227 homes.

 
Throughout the project, the trailhead parking lot will remain open, and trail users should continue to access the trailhead using the current entrance on East Rancho Vistoso Boulevard.

 
The Tranquilo development will include future improvements to the trailhead. New bank protection will safeguard the trailhead from future flooding and erosion. Eventually, once bank protection is finished, the Big Wash Trail will be extended south to Tangerine Road.

 
There is no set date as to when construction will be finished. On-site signage will indicate any changes that may impact trail users. The Town of Oro Valley’s intent is to keep the trailhead and trail open for the duration of this project by coordinating with Pima County and the developer. In the meantime, users should be mindful of traffic control, signage and construction equipment. Be safe and have fun, Oro Valley! (Source: Town of Oro Valley, Parks and Recreation Weekly Guide)

Pusch Ridge Golf Course Pre-Opening Event Saturday

The Friends of Pusch Ridge Golf, the Town of Oro Valley, and Indigo Golf are hosting a pre opening event at the Pusch Ridge Course this Saturday. The event is sold out. A majority of the Oro Valley Town Council may attend a Grand Pre-Opening.

$245,000 in two added funding "sources" enrich the town's Town's Community Center Fund 

This is from one of our readers: 

"Any wonder why the CCF balance is improving? It's because the CCF now takes in $125,000 from HOA's and now also forgoes the $120,000 annual pay back for a net gain of $245,000 per year. The Town has now muddied the waters regarding the Community Center Fund (CCF). It was noticed that the CCF did not transfer its yearly obligation of $120,000 to the General Fund (GF). This was a promise made by the Hiremath council in 2015 when they transferred $1.2 million from the General Fund into the Community Center Fund to "kick start" the CCF. The obligation was to pay back the GF $120,000/year for 10 years. 

I asked why the $120,000 payment was not made this year. 

According to the Town Manager, Mary Jacobs, "The Town Council’s action to broaden the use of the Community Center Fund to include the capital financing of Parks and Recreation projects results in the use of Community Center Fund dollars toward projects that have otherwise been planned for expenditure out of the General Fund. The $120,000 was used toward the calculation of the maximum amount the Town could safely bond from the fund."

Town of Oro Valley's Financial Situation Strong Entering 2021

Good Financial Times Prevailed in fiscal 2021

Oro Valley completed fiscal 2020 with strong financial results. This according to a discussion that town staff will hold with the town's finance and budget commission tomorrow.

“The Town has thus far successfully navigated the challenges posed by the COVID-19 pandemic” according to Oro Valley Finance Director David Gephart and Town Manager Mary Jacobs. “Financial performance across all funds has exceeded expectations," according to a town memorandum that was provided to the town’s Budget and Finance Commission. (Source: "Memo")

Revenues were strong

"...especially for single-family residential permits and construction sales taxes due to a strong housing market, as well as retail and online sales tax collections. There are also indications of improvement in restaurant/bar and bed tax collections.” In addition, the town received federal CARES Act and American Rescue Plan Act funds "ARPA". These totaled $13.5 million, more than $8 million over budget. The town is due some additional ARPA funds this fiscal year.

Fund balances increased

Other highlights provided to the commission include: 

• The General Fund, the fund that finances town operations, had a surplus of almost $15 million, increasing the fund balance to $36 million. This happened because of the stronger than anticipated sales tax revenues and permit fee revenue;
• General Fund expenditures of $42 million were $2.6 million less than budget; 
• Highway Fund Revenues totaled approximately $3.8 million or 102.1% of budget, while expenditures only totaled $3.4 million or 86.8% of budget; and
• The Community Center Fund outperformed the budget. Revenues were $500,000 over plan while expenditures were $1.1 million under plan. 

Municipal Golf Cash Flow a $700,000 deficit.. far better results than expected

Golf operations are part of the community center fund. Total reported losses were $373,000 less than budget. This is because gross income from golf operations exceeded plan by almost $600,000.  Financial performance was boosted from a substantial increase in green fees and and an increase in monthly dues. These two items were $753,000 more than the budgeted amount. In addition, underspending was driven by the town not doing the golf course irrigation project. This happened because bids to replace the irrigation far exceeded planned spending.

Guest View: Mike Zinkin ~ Combining the Community Center Fund Into The General Fund Is A Bad Idea

Town Archives, June 2012
In June 2012, the Oro Valley Town Council approved a withdrawal from the General Fund of $524,000 to help pay for cost overrides at the Aquatic Center. This money was to be paid back with annual installments of $35,000 from the Bed Tax Fund.

Fast-forward to 2018. Town Manager, Mary Jacobs (with Council approval) combined the Bed Tax Fund into the General Fund. Doing this eliminated the accountability of staff to ensure that the annual $35,000 reimbursement commitment is completed.

Town Archives, March 2015
On March 4, 2015, the Town Council approved a sales tax increase with this increase dedicated to the new Community Center and Golf Fund. (The name was later changed to the Community Center Fund). The Council Report reads, “… staff recommends Council consideration and approval of a budget amendment to establish a new, separate fund to account for the operations of these facilities. This new fund, called the Community Center and Golf Fund, will account for all revenues and expenses generated by the operations of these facilities.”

Fast-forward to 2019. In the Town Manager’s Recommended Budget for FY 2019/20, Jacobs is proposing to abolish the CCF and combine it into the General Fund. Doing this will eliminate all accountability regarding the expenditures of the “dedicated” half-cent sales tax. It will eliminate the monthly report which shows the revenues and expenditures regarding the Golf/Community Center. The Council should not allow this. The CCF allows for transparency and shows us exactly what it going on.

Examples of why combining funds is a bad idea
Do you think we would have discovered that the Town pays nothing for utilities, the extent of the golf losses, the lease contracts, etc. if this was all combined within the General Fund? The CCF owes the General Fund $120,000 a year (for 10 years) to pay back the $1.2 million loan that was used to start the Community Center Fund in 2015. Will this payback happen if they are combined into one fund? How would we know?

Next up, combining the Highway Fund into the General Fund
Jacobs also wants to combine the Highway Fund into the General Fund. Will this allow for highway money to be spent for soccer fields? Keeping these funds separate makes staff accountable and allows for transparency in town spending. We can see where the revenues are generated and where the money is spent.

We are not like most cities
Jacobs tells us that this is the way most cities do business. Oro Valley is not like most cities. We desire to keep an eye on our money…where it comes from and where it goes. Combining these funds into the less restrictive General Fund would be a huge mistake.

The Watchdog Report: The January Financials – Suspicions Confirmed

January 2019 was a good month. However, I discovered something questionable and my suspicions were confirmed by the Town. (This is discussed under “Clever Bookkeeping” below).

The good news is that the Community Center Fund (CCF) ended January 2019 with a positive balance of $32,682. But before you start celebrating…remember that:

• January is a prime month for golf
• The Town still needs to transfer the $120,000 annual repayment to the General Fund (promised by the Hiremath council in 2015 when they borrowed $1.2 million from the General Fund to start the Community Center Fund with a promise to pay back $120,000 per year.)
• The Community Center is still not ADA compliant
• The town has spent only $2,653 of the promised $50,950 in capital improvements.

As of January 31, 2019, the contracted revenues (Troon) were $1,673,938, while the contracted expenditures were $2,874,342. This means that Troon has lost $1,200,404 since July 1, 2018 (the beginning of the fiscal year).

The Town’s revenues were $511,800 while their expenditures were $475,423 resulting in a profit of $36,377 since July 2018.

In January 2019, there were 3,762 non-member rounds of golf played on 45 holes, while at a public course within 5 miles there were 3,764 rounds played on 18 holes. The golf membership was 233, however, there were 6 members who did not pay dues in January due to medical leave and those over 90 not being required to pay dues.

The Overlook lost $11,224 in January, bringing the total loss for the fiscal year to $77,348.

Clever Bookkeeping
Since the establishment of the CCF in May 2015, Troon has paid $4,905,941 in utility expenses and the Town has paid ZERO. This is odd when you consider that:

• The Town’s portion of the Community Center includes a heated swimming pool, lighted tennis courts, and HVAC requirements for the fitness and recreation center.

• Troon’s portion includes the golf courses, the pro shop, and the Overlook Restaurant. However, all utility costs have been allocated to Troon.

I asked the Town why Troon was responsible for the Town’s portion of the utility expenses. They responded:

“The decision was made upon acquisition to account for all utilities in the Troon budget because the bulk of the utilities costs (water for the golf courses) was a Troon expense, and the building was not equipped with separate meters to clearly measure the Town’s portion of utilities versus Troon’s portion.”

This was a decision made by former Town Manager, Greg Caton and Finance Director, Stacy Lemos upon the purchase of the property.

Granted, water is a large expense for golf, but there is also water utilized in the two swimming pools and the shower facilities.

The Town goes on to further justify this unfair allocation:

“Conversely, the Troon budget also does not allocate a portion of golf member dues (collected by Troon) to the Town to recognize the fact that golf members have access to the Town’s fitness facilities as Premium members.”

However, the Town fails to mention that the Premium Fitness and Tennis members also have all the benefits regarding food and beverage and merchandise discounts, but Troon receives no portion of these dollars.

Why did the Town rig the financials this way?
We all know that whatever they do, golf is going to lose money. Was this “clever” bookkeeping done because this might be a way to show that the purchase was not a total loss if they can show that the Community Center/Fitness/Tennis portion is making money?

Although the Town’s expenses vs. revenues are showing a positive trend (with recent financials indicating that the Town has made a $36,377 profit through January 2019) is this a valid number when it does not include utility costs accrued by the Town?

Utilities for this fiscal year show:
Water $917,132
Electric and Gas $301,720
Waste Removal and Cable Service $38,673
TOTAL $1,257,525

Given these numbers, the Town’s true expenditures for the fiscal year would be considerably more than the $475,423 listed above and their “profit” of $36,377 would be non-existent. There would, in fact, be a negative balance.

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Mike Zinkin 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. He was a commissioned ensign in the United States Navy Reserve. He was an Air Traffic Controller for 30 years. He and his wife moved to Oro Valley in 1998. Mike served on the Oro Valley Development Review Board from 2005-2009 and the Board of Adjustment from 2011-2012. He served on the Town Council from 2012-2016 during which time he was named a Fellow for the National League of Cities University, he was a member of the National League of Cities Steering Committee for Community and Economic Development, and a member of the Arizona League of Cities Budget and Economic Development Committee.

Town’s Golf Investment priority continues to run “off course.”

Below are the financial statistics for the Community Center and Golf since its inception in May 2015 through the last available financials in November 2018 (four months into the fiscal year).

Purchase Price

Total - $1,000,000

Total transfers from the General Fund to the Community Center Fund (CCF)

FY 2014/15 $1.2 million to start the CCF Fund
FY 2016/17 $350,000

Total Transfers - $1,550,000

Total sales tax revenues from the dedicated sales tax increase to fund the CCF

FY 2014/15 - $506,710
FY 2015/16 - $2,030,750
FY 2016/17 - $2,199,466
FY 2017/18 - $2,330,941
FY 2018/19 - $906,463 (through Nov. 2018)

Total Sales Taxes - $7,974,330

Grand Total of tax dollars funneled to the Community Center/Golf = $10,524,330.

That’s $10 million dollars of the people’s money and the Community Center is still not ADA compliant. This is your money that could have built a new, state-of-the-art Community Center. In addition, the sales tax increase could have been repealed after the new Community Center was built.

Total Troon losses – Forecasted vs. Actual

FY 2014/15 – Lost $1,112,252 (Opened for only two months)
FY 2015/16 - Forecasted - $1,518,343; Lost $2,567,385 -- (off by $1,049,042)
FY 2016/17 - Forecasted - $1,534,505: Lost $2,512,938 -- (off by $978,433)
FY 2017/18 - Forecasted - $1,822,941; Lost $1,993,040 -- (off by $170,099)
FY 2018/19 – Forecasted (see below); Lost $1,102,243 (through Nov. 2018)

In FY 2018/19, Troon initially forecasted losses to be $1,893,595. However, they updated their forecast to $1,936,101. We are only 4 months into the fiscal year, and they have already lost $1.1 million.

Total Troon losses - $9,287,858 and counting

Food and beverage losses (Overlook Restaurant)

FY 2014/15 – Unknown. (Opened for only two months)
FY 2015/16 - $255,570
FY 2016/17 - $114,792
FY 2017/18 - $96,100
FY 2018/19 - $62,325 (through Nov. 2018)

Total restaurant losses - $528,787

Member Dues

FY 2014/15 – $201,531
FY 2015/16 - $876,133
FY 2016/17 - $725,611
FY 2017/18 - $784,071
FY 2018/19 - $284,968 (through Nov. 2018)

Total dues - $2,872,314

The Town Council needs to ask staff the following questions:

• Why is the facility still not ADA compliant after almost four years of operations?
• Why are the citizens still subsidizing the Overlook Restaurant?
• Why is the staff still supporting the 45-hole golf model?
• Why is the staff still supporting a dedicated golf course for only 226 members?

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Editor's Note: We originally posted incorrect numbers for Troon losses in FY 17/18. We have corrected the information.

The Watchdog Report: August 2018

Community Center Fund
The August 2018 Community Center/Golf numbers are in. The Community Center Fund (funded with your sales tax revenues) to pay for ALL the expenses for the Community Center/Golf ended August 2018 $215,610 in the red. This is what Hiremath-Hornat-Snider-Waters referred to as “breaking even” during their 2018 re-election campaigns. This deficient includes $356,161 in your sales taxes to offset the losses.

Revenues were 869,664. Expenses were $1,121,274. When you add the fact that this fund started the year $74,010 in the hole, you get a fund balance as of August 31st of minus $325,620.

We lost $75,177 more in August 2018 than in August 2017.

Troon Golf
Troon’s revenues were $13,345 less in August 2018 than August 2017. This is partially because the dues the members pay were $10,752 less in 2018. What happened to the robust membership income? As of September 30, 2018, golf membership is down to 214. For comparison, golf membership in August 2017 was 238.

The Overlook Restaurant
The Overlook Restaurant lost $21,661 in August 2018. They pay no rent, they pay no utilities, and they do not pay for advertising, yet they still lose almost $700.00 a day. Since the close of FY 2015/16 (the first year of operation) the Overlook has lost $384,685 yet the “Hiremath” Town Council and Town Manager kept it open.

Summation
The golf membership is at an all time low, the Overlook continues to lose money, your sales tax revenues continue to increase, the Community Center Fund continues to be in the red, yet the Troon contract has been extended for another 6 months to December 2019. Additionally, the Pusch Ridge course was reopened on November 1st and we will continue with the same 36-hole model that includes private membership.

We still have September and October numbers to see before we can close out the legacy of Hiremath-Hornat-Snider-Waters. Although those two Watchdog Reports will be published after the new Council is seated, the numbers posted in those upcoming reports will still be the responsibility of Hiremath et. al.
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Mike Zinkin 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. He was a commissioned ensign in the United States Navy Reserve. He was an Air Traffic Controller for 30 years. He and his wife moved to Oro Valley in 1998. Mike served on the Oro Valley Development Review Board from 2005-2009 and the Board of Adjustment from 2011-2012. He served on the Town Council from 2012-2016 during which time he was named a Fellow for the National League of Cities University, he was a member of the National League of Cities Steering Committee for Community and Economic Development, and a member of the Arizona League of Cities Budget and Economic Development Committee.

The Golf Members (The Royalty) are spreading lies

Members of the Golf Association, otherwise known as "The Royalty" have been spreading lies by telling people that golf is breaking even as a result of their membership dues and trail fees. According to a Town financial document, this is TOTALLY FALSE.

Fiscal year 2016/2017 is the last complete year that we have to work with. The Community Center Fund (CCF) is divided into two entities: Contracted and Town.

The Town’s Portion consists of revenues provided by:

• Fitness member dues
• Daily drop ins
• Recreation programs
• Swim/Tennis Lessons
• Facility rental income
• Concession sales.

The Town's expenses come from: Personnel, Operations and Maintenance.

The Contracted Portion (Troon) consists of revenues provided by:

• Golf revenues
• Member dues (golf)
• Tennis revenues
• Food and Beverage
• Merchandise and Other.

The Contracted expenses come from: Personnel, Operations and Maintenance, and Equipment leases. There are additional revenues coming to the CCF that are derived from Sales Tax Revenues, General Fund Transfers ($350,000 in FY 2016/17), Real Property Rental income, Sale of Assets, and Miscellaneous.

During FY 2016/17, the Contracted revenues were $2,975,096. This number includes $725,611 that was provided by member dues. The Contracted expenses were $5,488,034...resulting in a LOSS OF $2,512,938.

Since when is 37% and 24% considered as “breaking even?”
The proposed FY 2016/17 budget forecasted $1,153,655 in member dues. At only $725,611, the member DUES fell short of this mark by 37%. Total CONTRACTED REVENUES are $2,975,096 of which members provided $725,611 or just 24%.

To be fair, the Town is operating 45 holes of golf. A member course would only utilize 18 holes. The five Tucson 18-hole courses average about $1.3 million each to operate. Tucson spends less in water and in management fees then Oro Valley. However, if the members desire their own 18-hole course, they need to provide at least $1.3 million, NOT just $725,611.

Town admits that golf membership is declining
The current fiscal year budget forecasts member dues to be $959,000. (That’s $194,464 less than last year's forecast; an admission by the Town that golf membership is declining). Even with the reduced forecast, as of January 2018 (58% through the fiscal year), the members have provided only $465,500 which is 48.5% of the expected dues.

Bottom Line
The members are NOT providing the income required to support their own course. We need to only keep 18 holes of golf, eliminate the members, and become a strictly municipal course. If that doesn’t work, then stop golf all together. We know the current model is not working as we have been doing this for three years with no positive results. In fact, there are less members now than when the Community Center opened in May 2015.