Town Council Needs To Designate Use of $10.75 Million Windfall

$10.75 million of remaining ARPA funds yet to be designated for use

The Town of Oro Valley has $10.75 million in federal ARPA funds to designate for use. The town received these funds last fiscal year. The town has until the end of 2024 to assign these funds, obligate them to specific projects. The town must spend these funds by the end of calendar 2026.

The town received a total of $15.4 million of ARPA funds

This is truly a windfall. The town didn’t need this money. The Town of Oro Valley thrived financially during the pandemic. Many communities like Oro Valley are struggling to figure out how to spend all of the ARPA funds by the 2026 deadline.  The panel [below right] shows the total funds received and how they have been used to date.

The use of  $10 million of these fund is mostly unrestricted,  It can be used for replacing town revenues lost during the pandemic

$10 million of these funds can be used on a broader basis to replace “revenue losses” caused by the pandemic. This money can be spent on a broad range of general government expenses. For example, some communities are spending the money on what one would call welfare payments. Others are using it to replace shortfalls in capital spending.

Town staff designated $4.65 million of these unrestricted funds to pay for replacing the town's El Conquistador and Canada Golf Courses' Irrigation

The total cost of the irrigation replacement on the town's two 18-hole golf courses is estimated to be $9.15 million.  $4.5 million of this is being paid for from the $25million Parks Bond; the rest, $4.65 million, from the ARPA funds. 

Town Council did not approve, by resolution, the use of the ARPA funds for that purpose

Nor has the Town Council designated the use of the remaining $5.35 million of unrestricted funds. 

According to town staff, these funds are sitting in the capital improvement fund, waiting to be used to fund future capital projects.  Town staff, without a formal council resolution, used $4.65 million to pay for golf course irrigation replacement.

The use of  $5.4 million in ARPA in funds is restricted

These funds can be used to improve drinking water and wastewater infrastructure.

It is the town council’s job to obligate all ARPA funds. They have not done so.
The town budget does not define the specific use of these funds. Thus, the town council must decide this.  It is then the responsibility of the town staff to spend it as directed. 

Until the town Council meeting of December 7, this council has not focused on fulfilling their responsibility. Thus, Council Member Tim Bohen, prior to and at that meeting, requested that staff to respond to eight questions that he asked regarding these funds. Town staff responded.

None of the restricted funds have been obligated by the Council    

Town Council has not directed staff on how to spend the $5.4 million in restricted funds. LOVE has advocated that the town use theses funds to extend the reclaim water system to the south part of town, thus saving millions of acre feet of drinking water from being used on town parks. The town council rejected this at the last meeting, preferring to wait for the answers to the eight questions asked by Bohen. The answers given by staff don't tell the council how to spend these funds; but their response did clarify one thing.

Town Outside accountant confirms that restricted funds can’t be laundered through the water utility... so that they could be used for another purpose
The Town Council has been terribly misinformed regarding the use of the unrestricted funds for water. Town staff, under the leadership of former town manager Mary Jacobs, current town finance director David Gephart and with some misinformation provided by the town’s independent auditor, suggested laundering these funds through the water utility so that the town can use the funds for non approved purposes. The scheme was to lend money to the water utility, have the utility use it for an intended purpose and then to pay the loan back to the town. Then, the town could use the funds paid back for a non approved use. This is called money laundering. It is illegal. It is chicanery.

As it turns out, LOVE was correct when we identified this as a laundering scheme when Jacobs proposed it to Council in September. In one of the responses to Bohen’s request, the independent accountant recognized that the funds must always be used for the intended purpose, even if they are paid back. The independent accountant concluded this after consulting with a third party organization with which they have recently become affiliated. Frankly, we question the competence of the independent accountant.

Big question still remains: How to spend $10.75 million in remaining ARPA funds?

The clock is ticking. At some point, the council will have to obligate these funds or return them to the federal government.

Censure Motion Withdrawn

It was "Much Ado About Nothing"

Council member Solomon, with the agreement of Council Member Greene, withdrew the motion that they had proffered to censure Council Member Bohen. They did this with the understanding that Bohen had apologized to Town Manager Jacobs for a remark Bohen had made at the prior town council meeting. 

As we reported this past Monday, the motion to censure was patently ridiculous.

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The Race Is On: Council Candidates File Petitions

The race is on
At least four Oro Valley candidates for council have filed petitions to run for one of the three open town council seats. Each has established a PAC to fund their activities. We understand that the candidates filed petitions that contained signatures well in excess of the required 468.

The next step for them is to organize their campaign and win the hearts of voters before the August 4 primary election. You will be hearing much more from them in the months ahead.

Today, we want to share with your their reaction to the process of getting on the ballot.

Candidate Tim Bohen
"As a first time candidate, the process of getting on the August primary ballot has been a great learning experience. We have met many Oro Valley residents and they have shared their concerns with us.

The Town Staff we have interfaced with were knowledgeable and capable of clearly explaining what is required.

I want to share with LOVE readers that the process of running for Town Council is daunting but also viable with the support of a motivated campaign team."

Candidate Bill Garner
"For myself the process was fairly easy and very smooth. I was instructed to go into the council chambers room where table and chairs were set-up for me to sit at while reviewing my paperwork. There were two clerks present with Mike Standish handling the documents and Michele Stine taking care of counting and copying.

They counted the ballots on the council dais with table tents indicated with numbers one to ten simulating totals on each petition sheet. Mike placed the sheets in each pile according to numbers on each petition then added them up by starting at table tent number ten and working down to number one.

I knew my count going into the room and told Mike in advance and the count was correct after verification or a total of 676.

I had a couple of questions and they were answered and I was given my copies with time stamps and I was on my way."

Candidate Harry "Mo" Greene
"The Town Clerk Michael Standish and his assistant Michelle Stine made the signature procurement very clear and totally understandable. Michael had prepared briefing books for anyone contemplating running for Town Council. The manuals were clear and concise.

As someone new to the political scene Mr. Standish was a tremendous help.

Using his guidance and the manual we had no missteps. My campaign volunteers fanned out and obtained the near maximum signatures in an amazingly short period of time.

The bonus of the process is being able to talk with the voters and learn about their concerns. It was truly energizing.

I am looking forward to the campaign and the election."

Other candidates: Incumbents Bill Rodman and Steve Solomon
At least one of these incumbents filed their nomination petitions as of this past Friday. We are assuming that the other will file shortly.

The race is on!