Bits and Pieces

Barrett and Bohen "get it."  Oro Valley’s stewardship requires balancing the financial impact of buildout and the sustainability of maintaining a maturing infrastructure

In January, LOVE reported on an independent study of the town's financial future. This study focussed on the impact of a "buildout" on Oro Valley's future. That study concluded that the town's budgets will remain sustainable through the expected residential buildout in 2034. However, the projected financial margin is very tight, leaving limited resources for long-term maintenance and unforeseen costs. Then, a few weeks ago, we reported regarding the town's five year financial projection. This was prepared by staff. That report projected that the town will face financial challenges starting in 2026, necessitating at least $11 million in bond funds to cover shortfalls for major highway projects and rising pavement preservation costs. 

The study and the five year projection address different time frames regarding the town's financial future; but both do emphasize the need for careful planning and spending as the town continues to mature. Given what we observed in the two day TMRB study session last week, two council members, Bohen and Barrett, "get it." And Nicolson is not far behind.

Town Grant Update: $18.1 Million in Progress, $213K Awarded

Town Manager Wilkins added a section in his May report to the council. That section discusses the status of grants sought by the town over the past six months. The report lists eight grants in progress, totaling $18.1 million. $213K has been awarded to date. Most of the pending dollars requested are for three public works bridge projects. $4.5 million is sought for public safety, including a $3 million request for the design of a police station. The town will file a $2 million grant request for the Vistoso Nature Preserve revegetation project in the next fiscal year. (Source: Town Manager May Report to Council, page 32)

Town Financial Update through February: Revenues rise, expenditures driven by capital Projects

"The Town continues to perform as expected from a Townwide financial perspective. Total Townwide revenues are up $7,399,890 through February 2024 in comparison to February 2023. Meanwhile, total Townwide expenditures are greater than February 2023 by $6,388,977. Capital is the primary driver of the increase in spending from the prior year, as it accounts for $4,875,207 of the $6,388,977, or 76%. Personnel and O&M also continue to outpace last year’s outflows through February. Total estimated Townwide Fund Balances through February 2024 are $84,981,826, which is about $4.2 million less than the Town carried into the fiscal year. This reduction in fund balance is primarily a function of the large capital projects being executed and the continued spend down of ARPA and Parks and Recreation bond monies." (Source: Town Manager May Report To Council, page 31) 

Let’s hear it for CDO’s… An Arizona sports leader

The Canyon Del Oro High School sports teams have had an impressive year, showcasing their talent and dedication. While both the baseball and softball teams narrowly missed winning the 3A Arizona State Championships this past week, their effort and skill were commendable. Last fall, the football team triumphed, securing the 3A State Championship. Congratulations to all the athletes for their hard work and for being outstanding representatives of Oro Valley. Your community is proud of your achievements and spirit.

Get ready to rock at OV Battle of the Bands, May 17

"This free concert, which runs from 6:30 to 9 p.m., on Friday, May 17, at the Riverfront Park Amphitheater (551 W. Lambert Lane), features three bands comprised of students from local high schools. The bands will bring their musical talents to a live audience with a three-song setlist...Admission to the concert is free and food trucks will be on site with items available for purchase. It is recommended that attendees bring a lawn chair or blanket." (Source: Town of Oro Valley Media Release).   

The Watchdog Report: What will it take to get a responsible council?

The end of fiscal year 2016/17 financials have been released and they are disastrous. We all know the Mayor and Council rely on staff to make the decisions, so why doesn't staff do their job and give these elected officials the facts?

What I am about to communicate is not "fake news” as Councilmember Solomon would have you believe, but facts that can be substantiated by Town documents.

Food and Beverage
Food and beverage, primarily the Town-owned restaurant, The Overlook, was forecasted to make $39,589 during the fiscal year, but lost $114,792. Including last year’s losses, this government-owned restaurant has lost over $370,000.

I am aware of a conversation that took place between an entrepreneur and the Interim Town Manager, Finance Director, and Parks and Rec Director for a potential lease. That offer has gone nowhere.

Even the Town's contracted golf study recommended that the Town lease this venture. How many more thousands of dollars (that could be spent on Naranja Park instead) are we going to lose before this Council takes action? I was told by the ex-Town Manager, Greg Caton, that it cost $250,000 to establish a lighted ball field. The $255,000 that The Overlook Restaurant lost last year could have funded one lighted ball field.

The Community Center
The Community Center and Recreation Fund (CRF) finished the year $97,156 in the red. In other words, even with $2.1 million in sales tax revenues, and an additional $350,000 transferred from the General Fund, the CRF ended the year with almost a $100,000 deficit.

Since its inception the CRF has received $1,550,000 from the General Fund and $4,736,926 from the increased sales tax revenues for a total of $6,286,926, and still the fund is almost $100,000 in the hole. How many Naranja Park improvements could be built with this money?

Councilmember Solomon spreads false information

Back in April, Councilmember Steve Solomon asserted that, “The Community Center is thriving. It is not failing.” He also said, “The Golf and Community Center revenues and the dedicated half cent sales tax for the year will cover all of its costs. It’s not using any other Town funds.”

FACT: The Community Center revenues and half-cent sales tax increase did not cover all of its costs. And it is using other Town funds in the form of $1.5 million that has been transferred out of the General Fund to meet Community Center expenses.

Troon Golf and Tennis
The total Troon losses (golf, tennis, non-aquatic center swimming, food and beverage) for FY 2016/17 were $2,512,938. Troon forecasted that the losses would be $1,534,505. This is a $978,433 miscalculation. How many more miscalculations are staff and the Town Council going to allow before they rid the town of Troon?

Trending Upward?
The Town Staff and the Town Council assert that the Community Center is trending upwards. Councilmember Solomon asserted in April: “The expenditures for the Community Center, particularly this year, are down and our revenues are up.” He continued, “Now that’s the kind of trend you want and it’s been trending that way for awhile now.”

FACT: During the prime months for golf (November - March) Troon lost $489,378 during FY 2015/16, and they lost $787,934 during FY 2016/17. That's almost $300,000 more in losses this year than last year. Trending upward?

Fiscal year 2016/17 began the year with $65,770 in monthly Member Dues and ended the year with $58,226 in Member Dues. Trending upward?

Council can no longer blame it on “headwinds”
The Town Staff and the Town Council cannot support their statements that this investment is trending upward. The Council does not do their homework to verify the staff statements.

In April of 2016, Councilmember Mary Snider claimed that my “constant attack on the viability of this property” was “creating a headwind in town” and “impacting the memberships in golf.” Vice-Mayor Waters chastised me to “get on board” with the project.

Since I have not been on council for almost 10 months (during which time the staff and council have repeatedly told the community that the Community Center is doing great) they can no longer blame the problem on “headwinds.”

It’s time for the Town Council to “get on board” and admit the horrendous mistake they made in December 2014 and do something about it…look at the facts, spend responsibly, and stop taxing the citizens.

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 in 1969. He worked as an Air Traffic Controller for 30 years. He and his wife moved to Oro Valley after retiring in 1998. Mike 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. During his time on council, he was named as one of 23 Leadership Fellows 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.