Here’s What Happened While We Were Away…

Town Finance Director: Oro Valley successfully negotiated the financial challenge of Covid-19

…this according to town finance manager, Wendy Gomez speaking at the May 19 town council meeting was referring to the projections for the year based on actual results through March. Gomez attributed this to holding the line on spending; and that revenues “…have significantly out performed expectations.” 

Speaking of the general fund, Gomez noted said the fund revenues are estimated to be 20% over budget for the year, at $52,2 million. The primary sources of this are federal government “rescue” money; higher than expected local sales tax revenues (12% over budget); and increased commercial and residential construction activity that is driving license and permit revenue. Spending is estimated to be 2.7% under budget.

Council to consider completed Parks and Recreation Master Plan as a “reference” for future spending decisions

The Oro Valley Town Council discussed the parks and recreation master plan at it’s May 19 meeting. According to the town’s master plan project consultant, the master plan “…provides information over which to make decisions” on parks and recreation spending now and in the future. The council made it clear in the resolution it passed (Panel at right) that this plan is not going to be implemented as is and that the community will continue to provide input

“This work is an invaluable tool for us but we are not committing to any particular spending,” noted Council Member Bohan. “It’s a plan. It’s not something we are going to be locked into,” according the Council Member Joyce-Ivey.

Mayor Winfield and Vice Mayor Barrett have proposed what they would like to see happen with Parks and Recreations spending next year.

La Posada Senior Living Facility Development Progressing

In March, LOVE reported that the Nakoma Sky senior living project was back in operation. Owners of the La Posada Senior Living Facility (formerly titled “Nakoma Sky”) develop ment have submitted a new conceptual architecture plan for the main part (Area C on map at left) of their development. This is the five-story apartment portion. This retirement community is located north of Home Depot and on the northern side of the CDO wash. The Hiremath council approved the entire project in 2016. “The maximum height (75', 5 stories)was previously approved as part of the PAD zoning in 2014 and is not under consideration. However, the revised design reduces the building mass by decreasing the height of the residential buildings from east to west.” The Planning and Zoning Commission will hear this item in tonight’s meeting.

GRDF says: “No Burning”

The Golder Ranch Fire District announced this past Thursday that it will not issue any burning permits. Also, any permits issued during the past 180 days are revoked.  “The conditions in our region are very dry and we are going to do everything we can to keep our community safe,” says Chief Randy Karrer. (Source: GRFD Press Release). Remember last summer. One dry lightening strike and the Catalina’s burned for two months.

Fireworks Test June 3

The town is conducting a fireworks test of nine shots this Thursday at 8:30pm.  It is a test of the July 4th fireworks show from Naranja  Park.  The test is a chance for residents to see if they can see the fireworks from their house as there will be no in person visits to the park allowed on July 4.

uPetsia makes pet breath smell better for longer.

No. this is not an advertisement. Its about our Oro Valley based startup.

 

The company, uPetsia, resides in the Center for Innovation in Oro Valley. It is the winner of an event sponsored by the Oro Valley Chamber of Commerce. “uPetsia (rhymes with "“You betcha") is a startup focused on making dog breath smell better for longer by engineering bacteria for dog and cat microbiota. uPetsia's product is incorporated into pet treats and chews and provides hours of minty-fresh breath. The The winner for the UACI Sponsored Launch Fueled by Greater Oro Valley Chamber of underlying technology was developed at the University of Arizona College of Agriculture and Life Sciences and BIO5 Institute by founders Eric Lyons, David Baltrus and Scott Zentack. Tech Launch Arizona (TLA), the technology commercialization arm of the UArizona refined and protected the invention and also helped them identify their best market.” (Source: May 2021 Center for Innovation Newsletter)

Bits and Pieces

Don't Run The Red
A 2019 AAA Foundation Survey found that more people are being killed by red light runners than ever before. "More than two people are killed every day on U.S. roads by impatient and reckless drivers blowing through red lights."

That fact has been noted by Oro Valley Public Works Director and Engineer Paul Keesler. Speaking on Jim Horn's Oro Valley Podcast last week, Keesler said that intersection safety will be a key focus area in 2020.

"We have to get people to obey the traffic control because the T-Bone accident is one of the most dangerous." Keesler is going to study the most dangerous Oro Valley intersections to try to determine what is causing the accidents.  There was one of these last Friday at Oro Valley's most dangerous intersection: Magee and Oracle.

Residents note property tax increase
Oro Valley residents are becoming aware that there are consequences for voter approval of the Golder Ranch Bond. Posting on NextDoor, a resident seemed astounded to learn that taxes are going up. The resident learned this when they were notified of the need for increased property tax escrow by their bank. Send thank notes to the Golder Ranch Fire District.

Ironwood Ridge Lights On... Nobody There

Ironwood Ridge HS...
Lights burn bright at night
The lights are on in the ball fields at Ironwood Ridge well into the evening. It's a time when the fields are not being used. The neighbors are annoyed.

According to one: "Nobody is in sight anywhere on campus and the parking lot is empty. Why [is Amphi School District] allowing taxpayer money to be wasted while ruining our night skies in Oro Valley by leaving these lights on until 9:00 PM, M-F, regardless of actual use?" We referred the writer to Council Member Joyce-Ivey. She is the council liaison to the Amphi School District. Joyce plans to look in to it.

Traffic proceeds nicely at Moore and LaCanada

Roundabout works well
The roundabout at Moore Road and La Canada seems to work quite well. This a according to Paul Keesler during an interview last week on Jim Horn's Oro Valley Podcast.

Keesler invested considerable time determining ways to make sure that drivers approach the intersection cautiously and at low speed.

Horn noted that the roundabout works well for bicyclists. We took a look at it Wednesday. Indeed, it does work well.

Light installation at Naranja and La Canada

Town installs turn lights at Naranja and La Canada
This week, the town added a protected left turn arrow at the intersection of Naranja and La Canada. The line of traffic traveling northbound was back to the Frys Shopping Center.

Here's a look at the work.

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Have something interesting for us to know? Just get in touch and we'll highlight it for you in LOVE.

The GRFD Bond

The GRFD bond is a broad request for $26.6 million in funding
A vote in favor of the GRFD bond will authorize the authority to issue bonds. The authority has provided some information on the projects for which it plans to use these funds. The total cost of the bonds including principal and interest is $45.2 million.

$5.25 million to be used to repay existing debt
Some bond proceeds will be used to retire debt assumed when GRFD merged with the Mountain Vista Fire Department in 2017. The interest on this debt is currently being paid from the GRFD operations and maintenance budget. This amount will "... provide funding to pay for firefighter equipment and apparatus..." (Source: GRFD Bond Information Pamphlet).

Bond funds, can be used for anything that relates to their general purpose
The GRFD Bond information pamphlet lists projects that total $26.6 million.  These are detailed in the bond information pamphlet. These are intended purposes.

The ballot measure does not include these projects. It includes a broad statement of the purpose fo the bonds. GRFD does not have to use the money for these intended projects. GRFD can used these funds for any facilities and facility related purposes. Thus, we reviewed the project list and identified several items to consider.

Source: GRFD Bond Information Pamphlet

$3million in Arroyo Grande station funding could be a placeholder
There are projects listed in the pamphlet that appear to be "placeholders."

One such project is the building of a facility for Arroyo Grande. Today Arroyo Grande is an open wash. There are no plans for Oro Valley to annex it. It is likely that it will lay barren for years to come. However, the bond request is for a $3million station there. What will GRFD do with these funds since there is likely no need for this station?

Other potential "placeholder" items include:

• There are no architectural drawings in place for the $1.8 million remodel of station 375
• A $2 million land acquisition is listed. It is for undefined purposes
• Communication towers for a cost of $500,000. Pima and GRFD my collaborate on this.

The bond will increase the GRFD portion of your property tax by $34 today
The county estimates that a home valued at $250,000 will  experience a $34 per year tax to pay for this bond.

The bond tax assessment could last 30 years
Bonds generally have a 30 year term with a provision to repay the debt starting after year 10. However, the voter information packet indicates that the term will be 26 years.

Today, the county mails your ballot
This completes LOVE’s special series on “Get To Know GRFD”.  Our postings and the information pamphlet voters received provide ample information for voters to make an informed decision.

Today, the county mails your ballot.  The decision on whether the measure passes or fails is up to you.

Get To Know: GRFD Is Politically Active In Oro Valley

GRFD: Major contributors to the Hiremath-Snider-Waters-Hornat campaigns

Oro Valley is very important to Golder Ranch Fire District (GRFD) because it provides more than half of GRFD revenues. Thus, it is important to them to have council members in place who will look favorably on them. 

Political activism traced to Oro Valley annexation
LOVE can trace their political activism back to 2004, when candidates they endorsed and financed for office were elected. What did GRFD get in return: The annexation of Oro Valley into the district. 

"Special interest groups usually support a candidate and expect something in return. You may recall that Golder Ranch Fire Fighters supported candidates in the 2004 election with most being elected. Shortly thereafter, the new council voted to allow Golder Ranch Fire District to annex Oro Valley. Rural Metro Fire was forced out of business in Oro Valley. That led to thousands of our citizens having fire service rate increases of up to 100 percent and more." (Source)

GRFD were major contributors to the Majority-4
2010: Four firefighter organizations contributed to the Hiremath-Snider-Waters-Hornat campaigns. The amount totalled $4,160. It came from:

• International Firefighters Association (IFFA)
• Professional Firefighters of Arizona
• United Pima Firefighters Association
• Yuma Firefighters

2014: Firefighter PACs donated almost $1,500 to the Hiremath-Snider-Waters-Hornat campaigns.

2018: Firefighter PACs contributed $6,000 to the Hiremath-Snider-Waters-Hornat campaigns.

None of these PACs donated to any other candidates during the Majority-4 years

2019: GRFD Chief Randy Karrer spoke on behalf of GRFD at the golf course hearing at the Church of the Nazarene,

Karrer voiced GRFD support of making no change in the use of Oro Valley's courses. He stated that he has a concern that a closing of the golf courses could have on property values; because that would impact the taxes collected by GRFD. "This will result in a significant loss of fire revenues for the district." You can watch  his comments at right.

GRFD "VoteYesforGolderRanch" PAC
A PAC was established in July to support the bond ballot measure.  The chairperson is Mick Anna of Oro Valley. The treasurer is Ryan Ward. Ryan is the treasurer of GRFD. (Source)
You can visit their site on facebook or you can visit their web site.
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Get To Know: GRFD Gets 55% Of Its Tax Subsidy From Oro Valley Property Tax Payers

Golder Ranch Fire District is A $31million business
Golder Ranch Fire District revenues total almost $31million in 2018. Expenses almost equal revenue. Generally, their goal is to spend what they receive each year. This is "normal" for a quasi-public enterprise. About a third of the assets owned by GRFD are for vehicles, apparatus and equipment. Buildings are the largest portion of assets owned.

Property taxes are 84% of total GRFD revenues
The taxes we pay to the district are the most significant source of revenue for GRFD. GRFD assesses taxes based on the class of the asset. For example, residential property is assessed a tax base on 10% of the limited cash value ("LCV") of that property. That value is multiplied by a tax rate per $100 of the LCV value. The 2018 tax rate was $2.31.

Oro Valley residents are the largest source of GRFD Revenues

Source: GRFD 2018 CAFR

Oro Valley parcel assessed values are 57% of the total values of the district. The number of Oro Valley parcels are 44% of the total.

This disparity in valuation results in Oro Valley residents paying more than their fair share into GRFD revenues.

GRFD also experiences economies of scale in serving Oro Valley residents. Oro Valley's population density is much greater than the rest of the district. Oro Valley land area is 16% of the total land area served by GRFD; yet Oro Valley population is 71% of the total GRFD population served.

Our conclusion: Oro Valley residents have a bigger "stake in the game" than residents from any other communities. 
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Getting To Know: Golder Ranch Fire District Has A Large Organization Structure

This is our third posting in our series "Getting To Know Golder Ranch Fire District." This posting presents the district's organization sturcture.
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GRFD has a four layer organization structure
The GRFD organization structure spans four layers.  GRFD has a 5 person Board of Directors. Voters approve the directors, each serving rotating terms. Historically, there has been very little competition for board seats. Thus, there are directors who have been on the board for many years.

 The district had 261 employees in 2018. The ratio of workers to staff is 5:1.

Chief Karrer's compensation over $200K
Salary and wage information is not available in the 2018 annual report. This should be a major component of total cost of operations. We do know from this report that administrative costs are 24% of total spending.

To gauge the level of supervisory overhead cost, we reviewed the 2019 employment contract between the district and Chief Karrer.  Chief Karrer's contract states his annual salary to be $176,500. In addition, he receives added deferred compensation of $30,000 annually. The total is more than $200,000.He also receives an annual allowance of $850 for his uniforms. In addition, the contract grants him an annual amount of $9,700 for medical costs. He is also reimbursed for education and related expenses.

Generally, compensation and benefits received by other administrative personnel will "trickle" down from that of the chief's earnings level.
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Get To Know: Golder Ranch Fire District Is A Two-County District

This is the second of our postings in our series "Getting To Know Golder Ranch Fire District."

GRFD Serves Oro Valley, Saddlebooke and Catalina
The GRFD district covers three communities: Oro Valley, Catalina and Saddlebrooke. Thus, voters in these communities, communities that have a far different set of interests that Oro Valley residents, will also be voting on the bond offering.

GRFD Service Area
(Source: http://grfdaz.gov/pdf/cafr_fy13.pdf)

"The current district fire boundaries are approximately 241 square miles and the ambulance transport boundaries are approximately 394 square miles. These boundaries are geographically located in Northern Pima and Southern Pinal County. The District is predominantly comprised of residential properties and an urban/commercial corridor. The estimated population of the newly consolidated entity is 120,000 residents." (Source: GRFD CAFR June 2018)

Oro Valley population is 61% of the population served.

GRFD has grown through annexation and merger
"The geographical boundaries of the District have expanded through annexations and a joint merger with the Catalina Fire District and Oracle Junction Fire District and in July 2017; and consolidation with the Mountain Vista Fire District."

"The 2010 Census data estimates 60,000 residents within the District and this is supported by a land-ownership report that estimates nearly 82% of the 31,000 parcels are for residential use."
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Getting To Know: GRFD Is Not Primarily A Fire Service

Starting October 10, Pima County is mailing early ballots for the November 5th election. There is a ballot measure requesting voter approval of a $26.6 million bond for Golder Ranch Fire District (GRFD). GRFD plans to sell the bonds over a three year period. GFRD plans to use bond sale proceeds for new facilities and to update existing facilities. The bonds will increase the total GFRD property tax rate, thus increasing your property tax.

GFRD is approximately 17% of  your property tax. It costs more than 2  times what Rural Metro cost Oro Valley residents before Rural Metro sold to GRFD about 14 years ago.

It is our sense that voters are relatively uniformed regarding GRFD. Thus, LOVE plans to present a series of informational postings regarding GRFD. Then we will discuss the bond offering and the use of proceeds.
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GRFD is an emergency medical and help service. Fire calls were less than 4% of all callouts
The state intended fire districts to be fire fighting operations when it established this legal form of organization. Districts were needed in order to cover large swarths of unincorporated land.

However, the word "fire" is a misnomer when it comes to Golder Ranch Fire District.

GRFD fights very few fires. Their primary purpose is to provide emergency medical and related service.

In 2018, fire calls were less than 4% of all callouts. 56% of the 2018 calls were for emergency medical service. A rather large catchall category of "other calls" is 37%.

The ratios have been the same over the years as seen on the following chart.