Bits and Pieces

Council links reported closure of Berger Performing Arts Center to potential Oro Valley Performing Arts Center
Last week, local media outlets have reported that the Arizona School for the Deaf and Blind will close the Berger Performing Arts Center on its Tucson campus effective June 30, citing funding and the closin of its Speedway location.  That reporting came after the Oro Valley Town Council had discussed the potential impact such a closure could have during last week’s strategic planning study session. At that time, Council members raised concerns about the possible loss of Berger, noting that the theater is widely used by Oro Valley-based groups and would cost tens of millions of dollars to replace. They also linked the issue to Oro Valley’s own discussions about a performing arts center, saying that the loss of a regional venue could shift demand to Oro Valley and affect the urgency and scope of any local project. Council members emphasized that the Town is not pursuing its own feasibility study, but intends to stay engaged with a nonprofit conducting a study and remain part of the broader regional conversation.

Council hires town attorney with Prescott Valley experience
This past Wednesday, the Oro Valley Town Council approved the employment contract for its new Town Attorney, a position that now reports directly to the Council rather than through the Town Manager. The Council selected Steven Zraick, a long-time Arizona attorney whose career has focused on municipal and public-sector law. Zraick most recently served as Deputy Town Attorney for the Town of Prescott Valley, where he advised elected officials, staff, and boards on day-to-day legal matters. Public records indicate that his legal work has been centered on local government rather than private practice, a background that aligns with the Council’s stated interest in strengthening its direct legal oversight.  The town attorney is responsible for providing legal advice directly to the Town Council, managing the Town’s legal department, representing the Town in legal matters, drafting and reviewing ordinances, resolutions, and contracts, and ensuring that Council actions comply with state law and the Oro Valley Town Code.  In his role, he may or may not replace the outside legal council at council meetings. 

Water impact fee shortfall flagged, changes to come before Council
Town water officials reported to the Water Utility Commission last week that the Water Resource & System Development Impact Fee, which is paid by new development to help fund growth-related water infrastructure, is projected to fall short in fiscal year 2026–27. Staff told the Commission that projected expenses of about $2.3 million exceed expected impact fee revenue of roughly $1.2 million, creating a gap tied largely to growth-related debt for major water projects. According to staff, current impact fees were set years ago and no longer reflect rising infrastructure costs. Staff said the next step is to prepare an updated impact fee analysis and bring a proposed fee adjustment to the Town Council later in 2026, following the state-required notice and public hearing process.

You can sign candidate nomination petitions online
Arizona voters can sign candidate nomination petitions online using the Secretary of State’s E-Qual system. Visit this link and select “Sign a Candidate Nomination Petition.” Log in with you Arizona driver license or state ID and date of birth to see which candidates they are eligible to support. The system allows you to review and sign petitions electronically, eliminating the need for in-person signature gathering and making it easier to participate in the local election process.

Stormwater Utility fee going up over three years
The Oro Valley Town Council approved a phased increase to the stormwater utility base rate on January 14. The increase will take effect July 1, at the start of the new fiscal year, and will be implemented over three years. The base rate will rise from $4.50 to $6.50 per equivalent residential unit (ERU) once fully phased in. Town staff said the additional revenue will support stormwater system maintenance, regulatory compliance, and flood control, noting that the stormwater rate had not been increased since 2016.

Water cost increase proposed for next July
At its January 12 meeting, the Water Utility Commission reviewed staff’s water rate analysis for FY 2026–27 and affirmed the recommended water rate changes for consideration by the Town Council. The recommendation includes an increase to potable water base rates only, with no changes to usage-based rates or reclaimed water rates; most residential customers with a 5/8-inch meter would see a $1.86 monthly increase. The Commission also reviewed the Groundwater Preservation Fee, for which no change is proposed. In addition, commissioners discussed the Water Resource & System Development Impact Fee, noting that projected expenses exceed revenues and that proposed changes would be brought to Town Council later in 2026 following the required notice and public hearing process. The amount of the proposed increase was not specified at the meeting.

November Financial Update: Town finances largely on track, construction sales tax trails budget
The town's General Fund revenues are tracking below budget through November 2025, largely due to weaker construction activity. Expenditures remain generally on budget due in part to vacancy savings. Community Center Fund continues to outperform expectations, the Highway Fund is tracking close to budget but may require continued capital fund support, and both the Water Utility and Stormwater Funds are trending positively. To address the General Fund shortfall, staff has taken cost-control measures including extended vacancies, reduced operating budgets, reconsideration of excess pension payments, and potential capital spending reductions, while noting that future transportation funding will depend on the outcome of the March RTA Next election [since the town is dependent on the RTA for public transportation] (Source: Budget and Finance Commission Meeting,  01-20-26)
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Oro Valley Considers Increases In Non Utility Development Impact Fees

The town of Oro Valley is considering a substantial change in development impact fees.  These are fees paid by new construction to the town.  The fee changes are required by Senate Bill 1525.  This bill mandates that fees be set in a specified manner based on certain projections; and that a new fee structure be implemented by August 1, 2014.  Oro Valley plans to implement the new fees on July 1.

Bill 1525 requires changes to all impact fees.  We previously reported that the town is considering changes in water development impact fees.   In Oro Valley, there are non utility impact fees for transportation, parks and police.

Last week, the Oro Valley town Council conducted a hearing on the proposed impact fees.

The non utility impact fees are based on assumptions regarding land use and on an infrastructure improvement plan.

The assumptions used for land use were based on existing town approved land use.   The population is projected to grow by 4,700, adding 1,400 housing units over 10 years.  These were developed from Pima Alliance of Governments (PAG) projections.   Council Member Hornat noted that changes that are made to land use in the future are not anticipated in the projections since the projections are based on current approved land use.

Oro Valley capital improvement plans for the 10-year projection period include $27.2 million, $5.0 million and $2.2 million for transportation, parks and police improvement.

The plan and projections do not include any assumptions as to growth through annexation.

The proposed non utility impact fee structure eliminates non utility impact fees imposed on non residential development for parks development. This is required by SB 1525.  As noted by Council Member Zinkin at the meeting, non residential development, such as schools, do have an impact on the parks needed in the community.    Town Finance Director Stacey Lemos noted that there was no clear relationship between non residential development and the impact on parks and that "... unless there is a study that documents that, we really are on unsure footing on our ability to go ahead and assess those fees." Council Member Burns agreed in general with that comment with the exception of the hotel/motel category.  He noted that the town is seeking events to host in our community that involve our recreational facilities. "The are hopefully using our parks," he noted.

SB 1525 does not allow impact fees for parks greater than 30 acres.  So, for example, improvements to the entire Naranja Town Site amount eligible for inclusion in determining the basis of the fee.  Yet, as resident Bill Adler noted during the public hearing portion of the meeting, business owners want Oro Valley to provide recreation facilities to attract talent to the community.  Adler advocated that the council consider legislative activism to change this portion of the law.

David Godlewski, President of the Southern Arizona Homebuilder's Association, observed during the public hearing that he plans to monitor and provide council on the revised fees as the process moves forward.

There were 2 public comments at this hearing.  There will be one more public hearing on all impact fees. This will be on February 19, 2014.   Perhaps, this is something with which you may want to become more familiar so that you can "weigh-in" at this hearing. You will also have an opportunity to learn more about the land use assumptions and the infrastructure plans that underly the new rates at the council meeting of January 15.  Formal adoption of the fees will be considered by council on April 2.
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