The Watchdog Report: July through October 2017 Financials

The October 2017 financials were on the Consent Agenda during the December 6th Council meeting. However, because the mayor has instructed councilmembers to ask their questions of staff prior to the meeting, once again there was no discussion about the continued losses of the Community Center. Does the mayor believe that the citizens are not interested in hearing about this continued drain of taxpayer money?

The Community Center Fund (CCF) was initially set up to pay for everything connected with the purchase of the Country Club, Golf and Tennis facilities from HSL. Two and a half years later, and this still has not happened.

First Four Months of the Fiscal Year  ~ Over $400,000 in the red
The Community Center Fund ended the first four months of the 2017/18 fiscal year (July 1 through October 31) $415,161 in the red. This is considering all the revenues derived from golf, tennis, food and beverage, and non-aquatic center swimming, along with $680,721 in sales tax revenue.

Troon has lost $1,025,260 in the first four months of the fiscal year, yet still only projects a year-end loss of $1,822,941. We are coming into the prime season for golf, and we can only hope that Troon gets it right this year.

October Losses ~ Troon lost almost $10,000 more this October than last October
While the Town manages the recreation center, Troon is contracted to manage golf, food and beverage, some tennis and swimming. Troon's balance sheet is no better. They lost $270,953 in October 2017 which is $9,905 MORE than they lost in October 2016. This loss is despite an increase in golf memberships and the corresponding increase in revenue from member dues.

Utilities were also $72,007 higher than October 2016.

The Town's portion of the Community Center (the recreation center) lost $44,074 in October. Nevertheless, staff stands by their projection of ending the 2017/18 fiscal year only $86,017 in the red.

How they derive this figure is questionable considering (1) $94,250 is planned in capital outlay and (2) a $120,000 loan re-payment is owed to the General Fund. You might remember that the first $120,000 payment owed in year-one has not been paid…and the payment for year-two was accomplished only by taking an additional $350,000 from the General Fund. (To be clear, the General Fund has transferred $1.5 million of YOUR MONEY to the CCF).

Overlook Restaurant averaging $12,000 per month in losses
The Overlook Restaurant lost $13,687 in October 2017 bringing the total loss in the first four months of the fiscal year to $47,701. Keep in mind that the Overlook pays no rent/mortgage or utilities like a normal business would. This restaurant was closed when the Town purchased the property so why did they re-open it? And why hasn’t the Council tried to contract it out? If there are no bidders for the contract, then CLOSE it. The Town is supporting the elite 242 members of the "club" by providing discounted food, discounted merchandise, and a free driving range. To be more precise, the Town is not supporting the golf members, you are.

Citizens are preparing an alternative
Last summer, the Town paid more than $50,000 for a golf study in an effort to minimize the stupidity of their decision to purchase this property. To date, they have ignored the recommendations. Two citizens are currently preparing an alternative that will be completely vetted and presented to you in the near future.

This purchase was outlandish when it was made and, at two and a half years into this misadventure, there is no reason to believe that the fiscal bleeding will ever stop.

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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 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.

Oro Valley Plans Its Future: Three Items For The General Plan

Last month, the Town Of Oro Valley started the process of updating the General Plan.    It will be Oro Valley's blueprint for the future.  The plan will include a vision of things the community would like to see in the future.

Here's our list of three items that we'd like to see included in the general plan.   These are three items that would bring our community together.

The Oro Valley Community Center

Wouldn't it be nice if Oro Valley had a community center?  Something for the people.  It would be a place for the community to gather for various events.  It could include a youth center, a senior center.  and a kids center.  It could include indoor multi use courts for things like basketball, volleyball and badminton.  That would be ideal for use on those very hot summer days.  Perhaps we could even have a youth summer basketball league.   How about youth dances?

The Oro Valley Community Center can be more.  It can be a place of residence for the Oro Valley Parks and Recreation Department.  It could be a place for a community television channel for Comcast.  It could have meeting rooms, booked by local groups and associations.  It could be located next to ball fields.  It could be many things but it will be nothing if we don't define it in the general plan.

The Oro Valley Historical Museum

At present, the recorded history of Oro Valley is being centered around Steam Pump Ranch.  We know that there were plants at one time to create a place to display some of Oro Valley's history there.    The history of our area extends well before the ranch and long since.  Yet, there is no place where our story is told.

There were at least two Native American  settlements in this area before the area was settled by the Pusch family and others.   The settlement years were turbulent.  The settlers and the Native Americans did not always get along.   It was not easy for Oro Valley to become a town.  Did you know that the town's founders had to win a court case against the City of Tucson to become a town.  And, since 1974, the town has a rich history of growth and development; and of some unique characters who became our early leaders.

Oro Valley is growing quickly.   There are many people who move here who know nothing of what preceded them.  Isn't it important to give them an opportunity to learn the history and to understand why we find this place great!

Wouldn't it be nice if the history was gathered together and placed in an Oro Valley Historical Museum.    Isn't it important to do this while some who lived through it are still around to tell the story.

The Oro Valley Business Accelerator

Oro Valley is doing a feasibility study for a business accelerator. We have written about this concept previously.

 "Creating an accelerator in Oro Valley will help us grow our bioscience corridor, Innovation Park, and create additional primary jobs. The Oro Valley Accelerator will allow small startup companies to develop a prototype of their product or its equivalent, i.e. the early clinical data or “mock up” that attracts venture capital investors in their company." (Source)

The accelerator will drive growth in the community.  Some of the businesses will succeed.  These businesses will drive employment in our community.  Their success will spur others to come here to experience similar success.  That will attract even more capital investment to the community.  All this will attract young professionals to want to live here.  This, in turn, will drive the need for things like a community center, and more parks, and yes, even an historical museum.

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That's our list of three items for the general plan.  We think that these three items bring together the disparate elements of our community.  There's something here for all of us, whether we be everyday citizens, history buffs, or business owners.

What are some of your ideas for the general plan?
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Oro Valley Hospital To Provide Space For Parkinson's Exercise Program

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In our posting last week, A Town of Excellence Must Also Have A Heart, we observed that the 2012 2013 Oro Valley operating budget, as recommended by the town manager, eliminated funding for the Oro Valley Recreation Center ("rec center").  The problem we had with that proposal was that it did not consider the impact of the closing of the rec center on those that use it; particularly those with Parkinson's Disease,who have a special exercise program in which they engage that is exceptionally beneficial for them.

We were concerned that one of the unintended consequences of closing the rec center would be that these people would be hurt, just like many would've been hurt if the Council had not found a suitable solution to providing Coyote Run services.

Good News: We learned at the May 2 Council Meeting that the Oro Valley Hospital will provide space for the Parkinson's exercise program. The plan is for the town to continue to sponsor and advertise the program.  The program should stay the same for all participants except for it's location.  

The future is unclear regarding other rec center activities. It appears to be the sentiment of of most Council Members to close the recreation center. This would save the town approximately $58,000 annually. It would also get the Town out of sponsoring and subsidizing programs that individuals could obtain by going to local work out facilities.

As members Hornat and Solomon noted, private activities of individuals should be funded by those individuals and not funded by the town. After all, doing such on the part of the town result in subsidizing private enterprise. This is something they believe the town should not do.  (Will they apply the same standard when considering a budget proposed donation to the Chamber of Commerce, a private organization that should be funded by the private sector?)

Members Waters and Snider were concerned about the impact on individuals who use the facility. It appeared that they want town to consider a transition plan from the current program to something that individuals can do on their own.

Council member Garner observed that the town should consider putting any recreational facilities which would include expanded recreation activities at the property the town owns steam pump Ranch. His vision is for a rec center that would have far broader usage. This is an interesting concept.
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A "Town Of Excellence" Must Also Have A Heart

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The Town of Oro Valley has a recreation center. It is located near Bruegger's at La Canada and Naranja (11143 N. La Cañada, #107) ). The town has been spending approximately $30,000-$35,000 a year to lease the facility. Many of the center's activities are facilitated by independent contractors. Programs include Jazzercise, Pilates, T'ai Chi, Dyamic Yoga, and Zumba.

The 2012-2013 Oro Valley town budget eliminates the recreation center and its programs.

In 2010, the current town council initially voted to cut Cayote Run. They reconsidered this decisions when it was noted to them the enormous impact that eliminating that service would have on those who used it.

The elimination of the recreation center from the town budget may have a similar "unintended consequence." That is, there are people who use the center for very important purposes.  There is a program called: Parkinson Exercise.  This is a unique program. Some who use it spoke eloquently about its importance to them in the call to audience portion of last week's Town Council meeting. For them, the program is unique.

There are those who believe that spending on the recreation center is a good thing. There are those who believe that it is not. That really is not the question is it? To us the question is: What does the Town Council intend to do to mitigate the impact of closing the center on those who need this service?

A "town of excellence" must also have a heart.    Hurting those in need is never a good thing.
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