Bits and Pieces

Oro Valley to get $7 million federal grant for La Canada bridge work 

Town Manager Jeff Wilkins announced Wednesday that Congressman Juan Ciscomani was successful in his efforts to get Oro Valley $7milllion for bridge repairs. The appropriation is included in the Congressional funding bill that is awaiting President Trump's signature. This funding has been years in the making.  This is, indeed, good news. 

Street condition survey underway to guide future pavement planning
The Town of Oro Valley has begun a comprehensive inventory of all Town-maintained roads. The town has engaged a specialized contractor to collect detailed imagery of pavement and transportation assets throughout the community. Over the next week or so, residents may notice data-collection vans driving local streets during daylight hours. The information gathered will be used by Town staff to evaluate current road conditions and update the Pavement Preservation Program. Town Manager Jeff Wilkins said the effort supports Oro Valley’s long-standing, proactive approach to pavement management, helping maintain some of the best roads in the region. The project is funded through Highway User Revenue Funds (HURF). These are state-shared revenues distributed to cities and towns to pay for street and roadway construction, maintenance, and transportation-related improvements.  (Source: Town of Oro Valley Media Release)

"Crimefighter" focuses on crime prevention, digital safety, and community education

The Oro Valley Police Department’s January/February CrimeFighter newsletter highlights several community safety priorities, including steps residents can take to reduce package theft, guidance for families on safer internet use as artificial intelligence becomes more common online, and upcoming public engagement programs. The newsletter also promotes OVPD’s women-only automotive care classes, answers common traffic and vehicle-related questions from residents, and provides crime statistics for the final quarter of 2025 (panel right), offering a snapshot of calls for service and reported incidents. Several community events and safety programs are also listed, reinforcing OVPD’s focus on crime prevention, education, and outreach. (Source)

Former Oro Valley town manager Greg Caton at center of escalating Scottsdale leadership dispute

Former Oro Valley Town Manager Greg Caton is the City Manager of Scottsdale. He is involved in a dispute with Mayor Lisa Borowsky. The conflict intensified in mid-January after Caton placed the mayor’s chief of staff, R. Lamar Whitmer, on paid suspension pending an internal personnel investigation, prompting Borowsky to accuse Caton of undermining her office and to suggest she may seek his resignation. City officials have declined to release details, citing the ongoing investigation, while Caton’s administration has said the action was required under city policy. Whitmer, a longtime Scottsdale political consultant and adviser with past involvement in high-profile and controversial development proposals, is not a low-profile staff member, giving the suspension broader political significance. Caton served as Oro Valley town manager from 2011 to 2016, later held senior management roles in Grand Junction and Durango, Colorado, and joined Scottsdale as assistant city manager in 2024 before being promoted to city manager the following year. (Source: News Reports)

Cycling partnership between Oro Valley and Marana seen as first of several joint economic efforts

The Town of Oro Valley and the Town of Marana have formalized a long-standing collaboration by approving an intergovernmental agreement that establishes a regional bicycling partnership focused on tourism and economic activity. The agreement builds on years of joint efforts, including events such as the Tucson Bicycle Classic and other regional cycling initiatives, and provides a framework for coordinated planning, marketing, and evaluation of economic impacts. Speaking to the Town Council on Wednesday, Economic Development Director Paul Melcher said he hopes that this bicycling partnership will be just one of multiple economic development activities Oro Valley will pursue with Marana, signaling a broader regional approach to future collaboration. (Source: Town of Oro Valley 2-4-26 Town Council Meeting and Oro Valley Media Release)

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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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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.

Oro Valley Weathers The Financial Storm.... So Far

Council discusses 2020 year end results tonight

Tonight, town council will hear the unaudited financial results of three of the towns funds for the year ended 2020: The General Fund, the community center fund and the Highway Fund. Results have been uncertain because of the unknown financial impact of the pandemic.  It appears the town has weathered the storm.

General Fund Balance Increased to $21.4 million

The general fund pays for all of the town's administrative functions and the police department. It is the fund that would be most impacted by the pandemic since sales tax collections are about half of total general fund revenues.  Year end balance is expected to increase by $1.8 million from the beginning of the year to $21.4 million.

(Click image to enlarge)

General Fund revenues 6% over budget

The town took measures early in March to slow spending and freeze hiring. The objective was to 
"hunker down" and be prepared for the worst. That game plan worked through the end of the year. The total estimated year end was 6% over budget, totaling $41.7 million.  Local sales tax revenues and interest income exceeded budget by $2.5 million. Inter-government funds and charges for services were $800,000 under budget.

General Fund spending 5% under budget

Total General Fund spending was $39.9 million. This was $2.1 (5%) million under budget. Spending in all departments except for legal were under budget. The Police and the Parks and Recreation Departments spent $1.2 million less than budget.

Community Center essentially on budget

Community Center revenue was $175,000 less than budget. Spending was $285,000 less than plan. The center received sales tax subsidy of $2.9 million. This amount is far more than the $750,000 sales tax subsidy target that was set by the town council last November. That subsidy level is to be achieved by 2023.  Golf revenues and membership fees were 9% over budget. Most other revenue sources were under budget because the Community Center has been closed since March.

Highway Fund slightly over budget
"In the Highway Fund, total actual revenues for the year came in over budget by approximately $272,000 or 7.2%. Expenditures for the year were under budget by roughly $12,000 or 0.3%. Overall, the Highway Fund ended the year with a decrease in fund balance of $53,343 (note that the planned budgeted decrease in fund balance was $337,241) (source)

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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.