Oro Valley’s 2024 Financial Results Show Better Than Budgeted Performance Because of Timing of Spending

Preliminary 2024 financial results show continued financial health and impact of delayed spending on capital projects
The Town of Oro Valley has released its preliminary financial results for the fiscal year ending June 30, 2024. While these figures are unaudited and subject to adjustment, they provide a picture of the town’s financial health. Finance Director David Gephart presented the results of six funds at the town’s Budget and Finance Commission meeting last week. These funds form the core of Oro Valley’s financial operations, though the final audited numbers may vary slightly.

Operating Fund reflects increased housing permit activity and inflation impact on sales tax revenues
The General Fund, which powers most of the town’s day-to-day services, ended the year with revenues surpassing expectations by about $2 million. This positive outcome is attributed to higher-than-anticipated local sales taxes and an increase in permits related to residential construction. Notably, the town issued 178 single-family residential permits, exceeding the budgeted 119. These permit numbers indicate ongoing growth in the community.

Click To Enlarge

Community Center Fund significantly outperforms revenue expectations
Community Center Fund revenues exceeded the budget by 18%, driven by strong performance in golf operations, including a 20% increase in rounds played. Despite higher expenditures, the fund ended with a surplus of $798,000, a significant improvement from the budgeted deficit of $826,000.

Gephart suggests considering increasing community center fees
Membership at the community center and golf courses has been growing consistently, but this rapid growth may lead to some changes. As Gephart pointed out, there is an upper limit to how much the facility can accommodate. “At some point, people won’t be able to get tee times,” he noted. To address this, the town may consider adjusting membership rates and fees, making them more in line with market rates to manage demand. This potential fee increase is not only practical for balancing capacity but could also help fund future improvements at the center.

Higher water use boosts Water Utility Fund results
The Water Utility Fund benefited from higher water usage due to a drier year, with revenues exceeding budget by $1.2 million. Revenues exceeded the budget by 6%. Expenditures were lower than expected due to personnel vacancies and a lower administrative charge, resulting in a $3.1 million use of fund balance instead of the budgeted $4.5 million.

The three other fund balances show underspending in capital projects due to timing
The financial results of other funds were impacted by less-than-anticipated spending on capital projects.

• The Highway Fund also showed a favorable outcome, with expenditures coming in under budget due to capital project delays. While revenues from highway user taxes were slightly lower than anticipated, increased interest earnings helped offset this shortfall.
• The Capital Fund saw $7.6 million in expenditures, significantly lower than the $13.6 million originally budgeted. This variance was largely due to the delay of several capital improvement projects, which will carry over into the next fiscal year. As a result, the town’s ending capital fund balance stands at $16.9 million, leaving ample room for future projects once they are ready to proceed.
• The Stormwater Utility Fund also reported an increase in its fund balance due to delays in capital projects, despite the town not receiving a budgeted grant.

Still, there are financial headwinds ahead
There’s no reason to believe that the town is facing financial headwinds based on the 2024 results. Still, there are financial headwinds ahead, as noted by Gephart in May to the council.

Future spending is going to require making hard choices. Inflation boosted town sales tax revenues this year, but as inflation abates, so will sales tax revenue increases. An unexpected increase in housing permits this year also increased general fund revenues. However, permit fees will decrease as the town builds out.

No town can underspend on capital projects forever because these are projects that need to be done. This is especially true for Oro Valley, where there are some significant projects. Funding for the water fund’s NWRRDS project will require borrowing, which the Town Council approved last week. The town’s bridge structures are reaching the point where they need to be repaired, and that’s going to cost a substantial amount. Something significant also needs to be done regarding police facilities. Together, all of these capital projects are going to cost about $100 million over the next few years.

It’s going to take strong fiscal management and an exceptionally financially astute Town Council to work through these future funding challenges.

Bits and Pieces

Town Council fails to consider financial results on a timely basis

Forever, it seems, the town staff updated the Oro Valley Town Council on financial results. It was a monthly report that discussed spending and receives of all major funds. It was a source of transparency for all residents.  In January, the council voted to change that to quarterly reporting or results. As of April 19, 2023 not a single monthly financial report has actually appeared on a 2023 Council Agenda.  It's Mayor Winfield's job to set the agenda.

The Budget and Finance Commission, a group of unelected residents who have no authority over anything, see the monthly financials at each of their meetings. Mayor Winfield is the council liaison to that Board. So, if you want to know how the town is doing financially, you have to attend their meetings.  Fortunately, their meetings are short and contain little substance.

These are the neighbors that are resolutely opposed to the OVCN sports complex request

LOVE has referred to OVCN Neighbors in our postings on the OVCN matter. These are individuals who oppose the rezoning of land adjacent to the Oro Valley Church of the Nazarene (OVCN). The Church wants to build sports facilities on this land. The "neighbors" cover a very large portion of the original section of Oro Valley. 

We've created the panel at right for you to see the large area of opposition. It includes four neighborhoods: Linda Vista Citrus Tracts 2; Shadow Mountain Estates, Campo Bello and Oro Valley Estates. 

One trip through those neighborhoods and you will know why there is such resolute, united opposition to the OVCN request.

Oro Vally SR77 Wildlife Game and Fence is complete 

ORO VALLEY, Ariz. (April 7, 2023) – The Town of Oro Valley is holding a ribbon cutting on Wednesday, April 19 to celebrate the completion of the State Route 77 (Oracle Road) Wildlife Gate and Fence project. 

The ribbon cutting is the culmination of a years-long collaboration between the Town, surrounding neighbors and regional partners to preserve scenic views and protect wildlife along SR 77 north of Tangerine Road. The ribbon cutting will start at 9 a.m. at 2746 E. Scenic Overlook Place (the west side of SR 77 at Scenic Overlook Place). Parking will be available in the neighborhood along two streets. A-frame signs will provide instructions on where to park as well as directions to the ribbon cutting staging area.

The Pima Association of Governments and the Regional Transportation Authority funded this project. (Source: Town of Oro Valley Media Release)

Friends of Pusch Ridge Golf host Cinco De Mayo Scramble

The date is May 5. The time is 8:00 am. Its a Friday. So that's another good reason to take the day off and play nine holes on this beautiful course. Register here.

(Source: Friends of Pusch Ridge Golf email)

- - -

Guest View: Mike Zinkin – A Plea to the Younger Demographic of Oro Valley to "Get Involved"

I have documented on many occasions how the newly elected mayor and three councilmembers will be remembered as the most fiscally irresponsible council members in the history of Oro Valley.

Examples
Allowing the past Town Manager to spend $620,000+ unchecked and against Town Policy, spending bonded monies for park amenities that the citizens did not desire and without asking what the cost will be to maintain these amenities in the future, giving over $400,000 to Visit Tucson even though our Bed Tax revenues are down 11%, and until recently, completely ignoring the ADA issue at the Community Center and ignoring the need for a new Police Station.

Does anyone care about these issues? Does anyone care about the horrendous waste of potable water the Town is using on its properties? Does anyone care about the continued golf losses?

The impact of these council decisions will have lasting effects
Those most impacted will be those who are younger…our college students, young couples with small children, and those under 65. Where are these people? Why are they not engaged in the conversation when they will be the most impacted?

These issues will not likely affect me, and yet I still take the time to research them and report on them. Where are the citizens that have children who will be adversely affected by this Council’s decisions?

Over the years, residents in various parts of town have been “up in arms” over land and development issues that impact their views, their neighborhoods, and their property values. They organize and spend a lot of their time and energy on these issues that directly impact them. But where is their anger over the Council’s reckless spending and water waste?

An appeal to the younger generation
Unless the younger population of the Town gets involved, this Council will continue unchecked. The result? In about 10 years, there will be a Council faced with paying for the maintenance and upkeep of the Town’s amenities -- the cost of maintaining the splash pad, the BMX track, the Vistoso Preserve. When coupled with the cost of providing needed services, the Council in office in 10 years will either have to reduce amenities, reduce services, or levy an additional tax on you to pay for these things.

People need to get involved, ask questions of the Council, and implore them to consider the future costs of the decisions that they make today that will impact you tomorrow.

---
Mike Zinkin and his wife have lived in Oro Valley since 1998. He 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. He was named a Fellow for the National League of Cities. He was a member of the NLC Steering Committee for Community and Economic Development and a member of the Arizona League of Cities Budget and Economic Development Committee. He was an Air Traffic Controller for 30 years. Mike 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.

Town of Oro Valley Flooded With Revenues in Fiscal 2022

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.

Mayor Hiremath: "Our House Is In Order"

"Ladies and Gentlemen, it is my honor to deliver my fifth 'State of the Town Address' as your newly reelected Mayor...I'm pleased to tell you that, in 2015, our house is in order. That is not by accident. It is by design."

Friday, an upbeat, enthusiastic Mayor Hiremath delivered this opening remark to 520 attendees at the "State Of The Town" address. The event was held at the Hilton Tucson El Conquistador Golf and Tennis Resort. The event was sponsored by the Greater Oro Valley Chamber of Commerce.

Building relationships was Hiremath's core message.

"It has been through the deliberate building of relationships with residents, businesses, and employees, that the Town Of Oro Valley has been able to meet and exceed the community's expectations."

The Mayor told LOVE that he chose this theme because it was the next step of a plan for Oro Valley that he identified when he was elected in 2010.  Prior year theme's were:

• The need for Oro Valley to be more business and development friendly in order to achieve financial success without the need for a property tax(2010); 
• Encouraging the development community to invest in Oro Valley (2011);
• Improving intergovernmental-regional cooperation (2012); and 
• A "thank you" to Oro Valley's dedicated employees for their many accomplishments (2013)

Mayor Hiremath believes that relationships work when "... both parties contribute and both parties benefit."

"We need to hear from you," Hiremath observed so that the town can make decisions that are best for the whole community.

Mayor Hiremath asserted that citizen input is critical at the local level. Otherwise, those making decisions will have no idea of what the community wants.  "Unfortunately. there seems to be a disconnect for some of us,"  referring to the fact that there are some who are simply not engaged.

This is something which LOVE has observed.  It is an area in which we most certainly agree with the Mayor.  There is no excuse for resident apathy.   People who are willing to "gripe" should also be willing to work to remedy that gripe.  Indeed, if you don't get involved in some way in our community then you will have a community that may not reflect what you want.  Please read the guest view of Oro Valley resident Bill Adler that we posted last Monday. Bill explains what it takes to become involved and why it is so important for you to do so.

Mayor Hiremath referred to the creation of the 2015 General Plan as an area in which Oro Valley wants community input.  "Community input is critical" and there are ample ways for our citizens to get involved.  The Mayor observed, and on Friday LOVE reported, that Oro Valley was recognized for its community outreach efforts in developing this plan.

The Mayor spoke of other activities undertaken by the town to enhance citizen involvement:

• The Town Of Oro Valley and The Oro Valley Police Department smart phone "APS" for residents to use to get information directly from the town.
• The town gathers community groups to identify citizen needs. Such a group has been working on a Naranja Park plan.
• A Youth advisory Council is sponsored by the town manager's department
• The Oro Valley Police Department has a new "Coffee With A Cop" Program

"I challenge each and every resident to engage with us to strengthen the relationship."  Oro Valley will only be successful, he concluded "...if the town and the community are equally engaged."

(The town will post the video of the Mayor's remarks.  We will link to it on LOVE's right panel.)

---

Bits and Pieces

You May Not Receive An Oro Valley Election Ballot If You Don't Act

If you are not planning to vote at the polls on August 26, then you most certainly should be sure you get a mail-in ballot.  Getting one is as easy as calling the county recorders office at 724-4330, then choose 6.  You will get an individual who will look you up in the data base.  During that conversation, be sure you tell them to mail the ballot to a location you will be at when the ballots go out. There is no mail forwarding of ballots.  Also tell them whether you want an Oro Valley election ballot only or a ballot that includes Oro Valley but has non Oro Valley candidates from a specific party.

So, the process is simple if you make the call.

If you don't make the call, you may not get a mail-in ballot if you wish to vote early.

In order to get an mail-in ballot "automatically" you must be:

• Noted on county voter records as on the "early voter list"
• A registered Republican or Democrat
• A valid address for getting the ballot.

If you are a registered "independent" or on the county's "inactive list," you need to call them to make sure you get the ballot.  You get to be "inactive" by not replying to one of there inquiries since you last voted.  So, given all the junk mail people receive, its easy to overlook their correspondence.  

Last week, the county sent out notices to voters denoted as active.  You may have received one.  You did not have to return anything if you were a registered Democrat or Republican and had a valid mailing address. If you were an independent, however, you were supposed to complete the form and send it back. Otherwise, you will not get ballot.

Confused?

That's why we suggest you call. Make sure the county gets it right. Make sure you get a ballot.  Make sure you vote.

---
Garner and Zinkin Bring Historic Preservation To Forefront

Next Wednesday, there is one item on the regular agenda of the Oro Valley Town Council.  It is consideration of Steam Pump Ranch's Procter-Lieber House.

"Our intent on Wednesday is to restart restoration of Steam Pump Ranch.  The intent is to restore the house. Get things moving again," noted Council Member Zinkin in our discussion with him yesterday.  "That ranch can be the focal point of Oro Valley. It can make us unique. No one in southern Arizona has anything like Steam Pump Ranch. It can be a real draw."

During the past 12 years. the town has created parking, put covers over the market area, and rehabbed the Pusch house.

Instead of working to fulfill a 2008 commitment to restore Steam Pump Ranch as a major draw for residents and visitors, the Majority-4 on council (Mayor Hiremath and Council Members Hornat, Snider and Waters) chose to do other things, all without a real plan or vision.

The Procter-Lieber house can be many things, as Garner and Zinkin see it. And, yes, it s also a  remembrance of times when the only thing in Oro Valley was the ranch's watering station.

---
Oro Valley Financial Operations Recognized For Excelllence

"The Town of Oro Valley has been tapped for three more national awards in the areas of financial reporting, budgeting and procurement.

The Town received two awards from the Government Finance Officers Association (GFOA). The first is the Certificate of Achievement for Excellence in Financial Reporting for the FY 2012/13 Comprehensive Annual Financial Report (CAFR). This is the 20th consecutive year that the Town has received this honor.

Oro Valley Finance Director Stacey Lemos commented, "It is truly an honor to be recognized by these national organizations and a true testament to the dedication and commitment to excellent fiscal management by our Finance Department team."

For the sixth consecutive year, the Town of Oro Valley has received the Distinguished Budget Presentation Award, which required the Town to satisfy a set of stringent, nationally-recognized guidelines for effective budget presentation.

Of the 91 incorporated municipalities in Arizona, Oro Valley is one of only 27 municipalities in the state to receive both awards from the GFOA.

These two awards are the highest form of recognition in governmental accounting, financial reporting and budgeting, and they represent a significant accomplishment by a government and its management.

Additionally, for the sixth year in a row, the National Procurement Institute has honored the Town of Oro Valley with its Achievement of Excellence in Procurement (AEP) Award.

The AEP award is sponsored by every major public procurement association in the country and is recognized as the benchmark of excellence in the profession. The Town of Oro Valley is one of only 16 government agencies in Arizona, and one of only 58 cities in the United States to receive this award.

In a press release, Stephen J. Gauthier, director of the GFOA Technical Services Center stated, "Award recipients have pioneered efforts to improve the quality of budgeting and provide an excellent example for other governments throughout North America." (Source: Oro Valley Press Release)
---
County To Approve Record Spending

"With the tentative 2014/2015 budget adoption set for June 17th, I have been working hard to analyze the 666 page county budget. Yes, the number of pages is actually 6-6-6. With its passage, homeowners will face a property tax rate increase of almost 17%. Many would assume that with an increase in property taxes, the County would be increasing funding for core services such as our roads, but sadly, the budget allots for no increase in funding for road repair. Over the years, Pima County has utilized grant funds to supplement various services and departments. As those grant funds have dried up, the County is now seeking revenue to account for those budget deficiencies. And that Revenue will come from YOU....the taxpayers." (5-22 Blast Message From County Supervisor Miller)

Remember: Oro Valley is a donor community. We pay taxes in. We get little out.

Bits and Pieces

Oro Valley Bond Rating Upgraded

Oro Valley, Ariz. (February 19, 2014) - The Town of Oro Valley is proud to announce that Standard & Poor's (S&P) Ratings Services has raised the Town's long-term rating on the Oro Valley Oracle Road Improvement District's special assessment revenue bonds two notches, from A- to A+.

The report from S&P states: "The stable outlook reflects our view of Oro Valley's very strong and stable economy and management."

"We are extremely pleased that Standard & Poor's has recognized the Town for its strong management and budgetary practices," said Oro Valley Finance Director Stacey Lemos. "To receive a two-notch upgrade on our outstanding debt in this slowly-recovering economy is rare."

This excellent investment grade rating will allow the Town to access future capital on the bond market at much lower interest rates, thereby saving taxpayer dollars on the Town's debt payments. (Source: Oro Valley Press Release)
---
Oro Valley Drafts Vision Statement

Oro Valley has drafted a vision statement for the 2015 General Plan Update:

"To be a well-managed community that provides all residents with opportunities for quality living. Oro Valley will retain its friendly, smalltown character, while increasing access to daily services, employment and recreation. The Town's lifestyle continues to be defined by a strong sense of community, a high regard for public safety and extraordinary natural environment and scenic views."

It has has created a draft set of 11 guiding principles. These are available at the "Our Voice, Your Vision" web site.
---
Oro Valley Historical Society Plans Gala Fundraiser For October

Jack Everett, Vice President of the Oro Valley Historical Society, announced a society-sponsored gala fundraiser to be held at the Lost Territory (El Conquistador) next October.  It will have a western theme. Jack announced this at last week's Oro Valley town council meeting.

Jack updated the council on the society's accomplishments and future goals. Watch his presentation to learn more.
---
Oro Valley Rated USA's 8th Safest Suburb

A real estate blog, Movoto, has issued its 2013 survey of the country's safest cities.  Oro Valley is ranked at 8.  It is the only Arizona community listed and one of two listed in the west.  The rankings were based on:

• Property crimes per capita (burglaries, thefts, and motor vehicle thefts) 
• Violent crimes per capita (murders, rapes, robberies, and aggravated assaults) 
• The chances of being the victim of a crime

(Source: Movoto Press Release)

---
Theft and Speeding are Oro Valley's #1 Crimes

The Oro Valley Police Department has published its 2013 crime statistics.  There were 769 serious crimes. Almost 80% of them were property theft ("larceny").  This increased about 10% over last year.  There were about 5,200 traffic related incidents.  71.5% of 2013's traffic citations were from one of three sources: Speeding (41%); Insurance Violation (20.5%); and Registration Violation (10.0%). (Source: Oro Valley 2013 Crime Statistics).

You can access Oro Valley's latest crime statistics here.
---

The Anti John Musolf Arizona House Bill 2419

There is an Arizona Senate Bill that would charge a rate per hour for fulfilling information request that require more than 8 hours to obtain. The bill would, in effect, reduce the number of information requests because of the cost.  This is yet another, ill-conceived bill from a group of legislators who, obviously, have too much time on their hands.

Individuals and organizations use information requests to further explore issues of interest. They have a right to get such information.  Charging a fee of such proportions will most certainly be in violation of the Freedom of Information Act.

---
March HiVE Deployments

Oracle and Magee continues to be Oro Valley's #1 intersection for traffic accidents.  (Source) The Oro Valley Police Department announces the following HiVE deployments on Oracle, from Magee to Suffolk Road:

•  March 5, 2014    4 - 7 p.m. 
•  March 11, 2014   4 - 7 p.m. 
•  March 12, 2014   7 - 10 a.m. 
•  March 20, 2014   4 - 7 p.m. 
•  March 27, 2014   7 - 10 a.m.

(Source: The Oro Valley Police Department Press Release)

---

Short Stuff: Last Week's Council Meeting

Here's some of the "stuff" that we have not reported that occurred at last week's Oro Valley council meeting:

• The town's general fund budget surplus of $1.7 million occurred because Oro Valley has yet to pay $2.1 million to Tucson Electric Power for burying wires on Oracle Road. 


• The new water company "automated meter reading program" is still in its implementation phase. The results for those locations installed:  More accurate readings have resulted in increased revenues.  In addition, savings have been achieved because to town does not use meter readers.


• Heirloom Farmers Market's lease of Steam Pump Ranch from Oro Valley includes the right to have liquor as approved on a case-by-case basis by the town manager and the chief of police.  Roxanne Garcia, representing Heirloom, said that the right to have liquor was needed because, from time-to-time, local wineries may want to display their product.

• Council approved by a 7-0 vote the public art for the Sun City Recreation Center.  The art had been approved by a  4-2 vote by the Conceptual Design Review Board.  Kelly Huber, who was put on the Conceptual Design Review Board to bring artistic talent to the board, voted against it because, as Planner Williams noted, she was concerned that this was a "...repeat artist with a repeat theme. She was looking for a more unique concept."


• The Council rejected, 4-3 a proposal to discuss new tax initiatives.  The reason that proposal was put forth was to enable a discussion of a renter's tax.  Read why Council Member Zinkin wanted this item discussed.

---

Guest View: Mike Zinkin-"The Lessons Of Leadership"

This past April, my wife and I took a wonderful river cruise from Paris to Normandy.  As with most vacations, one of the positive benefits was building new relationships.  While getting to know a couple on our riverboat, it turned out that the husband had been a member of his city’s council, as well as the Mayor.  When I revealed to him that I had just lost a close race for the Mayor of my community and was contemplating running again for a Council position, he shared a lesson with me, a lesson that he had learned during his years as an elected official. 

“There are three things that you must consider prior to making any decision,” he said.

“Is your decision legal? 

Is your decision ethical? 

Is your decision politically correct or, is it what the Citizens desire?” 

Let’s look at recent Council decisions and track them against these criteria. 

Raising the Utility Tax – Legal? Yes   Ethical? No, especially when the Council did nothing to cut the excess spending or show any sacrifices within the budget.  Citizen’s desire?  Absolutely, positively not!

Considering eliminating/transferring of Coyote Run – Legal? Yes  Ethical? No. Coyote Run is a 16-year, award winning, program that is unique to Oro Valley.  The current “gang's” plan is to put the service in the hands of the RTA. Their plan will put the program in jeopardy after 2013. This "gang" has presented their plan prior to negotiating an Intergovernmental Agreement, so they really don't know the economic bottom line of this decision.  In other words, they have made their decision, a decision supposedly driven by money, without knowing the costs or the benefits of this decision. Coyote Run costs the Town $300,000 a year. There is a plethora or areas where this money can be found.  Citizen’s desire? Absolutely, positively not!

Considering allowing apartments at the northwest corner of Tangerine and Rancho Vistoso?   Legal?  This decision has been delayed 60 days.  Planning and Zoning and the Council had not done their due diligence. It took an affected citizen to advise the “gang” that the PAD wording was suspect.  Ethical?  No.  Allowing this amendment without compelling reasons is against the voter approved General Plan.  There are almost 1,800 acres that are currently zoned for High Density Residential.  Why add more?  What of the other impacts of this amendment: The negative effects of increased traffic, the impact on school enrollment and the resultant costs, and the increased building heights?  While Tucson is being called “the emptiest City in the Nation” with high apartment vacancy rates, does Oro Valley really want to dive “head first” into the apartment business?  Is our local economy so different than that of Tucson that Oro Valley is a boom town while Tucson and the rest of the nation drowns in an economic malaise? Do the citizens want this?  Again, Absolutely, positively not!

Special interests and people who support these actions will tell you that it is for the betterment of the Citizen because it will increase our revenues.  After the construction tax is paid, where are the revenues?  They will tell you that eliminating Coyote Run lessens the Town’s obligations by $300,000, but they will not look at the myriad of additional opportunities to cut the Town budget.  Council member Garner gave a 20-page Power Point presentation showing over $3 million in savings, only to be chastised, and ignored by the “gang”.

It is a good thing for them that the “gang” did not meet this gentleman that I met because in no way do their votes meet these criteria.   

You see, their criteria are very different: Is there a way this can be made legal?  Does it satisfy the people who donated to their campaign?   And, is this what the Special Interests desire?

To me, leading using the gang's criteria is no way to run our Town.

Mike Zinkin

Guest View- John Musolf: "Unnecessary Purchases"

---
[This question and answer is from Oro Valley Police Chief Sharp's "Know Your Police Budget"]

Q. What are Anti-Racketeering funds and how does the Police Department use them?
A. Federal Guidelines and Arizona Revised Statutes strictly regulate the use of Anti-Racketeering funds (also known as seizure funds). Seizure funds are often utilized to fund departmental necessities that are not funded through the approved Town Budget. Examples of approved expenditures are inclusive, but not limited to:
• Member training/travel
• Investigative support
• Equipment purchase/maintenance
• Community oriented policing programs
• Gang and drug education and awareness for the community

---

Remember! “Seizure funds are often utilized to fund departmental necessities that are not funded through the approved Town Budget”.

You decide which are necessities!

1. Equipment Purchases: Ice Maker 1 for $5,334 and Ice Maker 2 for $4,955

• Obviously the acquisition of two ice makers is crucial to the public safety of Oro Valley citizens and day to day policing activities!

2. Uniform Purchases: Lycra shorts ($1500) and Polo T-shirts ($2000), Cycle wear ($1500) and Jackets ($600)

• The OVPD has a bicycle unit that must be outfitted in the latest “fashion” like Lycra shorts. The cycle wear and jackets could be for the bicycle unit or the motorcycle unit.

3. Miscellaneous: Bar Stools, Party Carousel, Festival Tents, Fry’s food, Petty Cash Vouchers

• The bar stools are “standard” in policing activities?

One other small note! Seizure funds can be used with the approval of the Pima County Attorney’s Office. Recently, there was a change in the law that says the Use of Seizure Funds may have to be paid back if the case concerning the Seized Funds is dismissed. This might take months or years.

John Musolf
---

Guest View-John Musolf: Town of Oro Valley Receives An "F" Grade On Flimsy Financial Forecasting Of The Construction Sales Tax

---
Let’s look at two of Town of Oro Valley’s past two operating budgets:

FY2009/2010 (Dave Andrews (Town Manager):

“Local sales tax represents a significant source of the Town’s budgeted revenue. In this category, taxes related to construction activity are the biggest contributor. While residential activity is down, FY2010 will see a major renovation undertaken at the Ventana Medical Systems facility (130K+square feet), which will contribute significantly to taxes on construction, permit and impact fees. The FY2010 budget is also forecasted to see an addition of 350K+square feet of commercial building in the form of hotels, restaurants, retail and office space”.(Page 49, Revenue Summary, second paragraph)

FY2010/2011 (Jerene Watson (Town Manager):

“Local sales tax represents a significant source of the Town’s budgeted revenue at 19% of total revenue. In this category, taxes related to retail trade are now the biggest contributor. In previous years, taxes related to construction activity were the greatest contributor. For FY 2010/2011, revenue was projected assuming limited development and activity patterns similar to what is currently being observed. Commercial activity is down significantly from previous years with many projects having been put on hold, delayed or canceled. FY2010/2011 will see new construction commencing at the Ventana Medical Systems facility (130K+square feet) which will contribute significantly to permit and impact fees”. (Page 51, Revenue Summary, second paragraph)

WOW! In FY2009/2010 Ventana Medical Systems was making a major renovation (130K+square feet) and in FY2010/2011, Ventana Medical Systems will commence new construction (130K+square feet) Do those statements sound somewhat redundant?

"The FY2010 budget was forecasted to see an addition of 350K+square feet of commercial building in the form of hotels, restaurants, retail and office space." "The FY 2011 budget is forecasted to see an addition of 280K+ square feet of commercial in the form of a hotel, a school, restaurants, and office space." WOW! Sound familiar?

Let’s go to Item B on the consent agenda of the September 7, 2011 Town Council Meeting. Wendy Gomez’s Fiscal Year 2010/11 Year-End Financial Update.

This report states that the construction sales tax revenue projection missed (was short) by $1.7 million for FY2010/2011. When you predict 75 residential starts at the beginning of the year and end up with 47 at year-end, it’s a big surprise? Nobody was monitoring the building starts on a month-to-month basis? I suppose they were depending on hope and change! Also, some of commercial development with Ventana got delayed! Surprise! Surprise! Nobody was talking to the company? Nobody get excited! Did the Mayor just put this item [the budget report] on the consent agenda because it is routine and non-controversial so as to rubber stamp it? Problem solved?

Take a look at the Town Manager's Budget for FY2011/2012. Do you see any Revenue Summary discussion on how low our construction sales tax revenue might be for FY2011/2012? It looks like that construction sales tax revenue problem has disappeared. Not to worry! The Town Council could always double our utility taxes again.

Oh, by the way, Greg Caton, our interim town manager, doesn’t believe a hiring freeze exists and is considering adding people to the Development and Infrastructure (DIS) department because of the intolerable increased workload for the residential and commercial development activity!

John Musolf
---

Guest View- John Musolf: "Officers On The Force"

Did you ever wonder why Oro Valley has 97 Police Officers? Why not have 70? Why not have 120?

Chief Sharp justifies the number of officers on the force by using a ratio of "Police to Population" of 2.5 per 1,000. Based on his numbers, Oro Valley would have 103 officers. So, I guess from his viewpoint, he's doing a simply great job of keeping it to 97. Why he's six positions short.

Not so, Chief.

The ratio method that you use is a bogus method. Your fellow Chiefs know that the ratio method should not be used. This, from the International Association of Chiefs of Police (IACP web site): “Defining patrol staffing allocation and deployment requirements is a complex endeavor which requires consideration of an extensive series of factors and a sizable body of reliable, current data”. In short, staffing should not be based on a police to population ratio.

Even if the "ratio method" of staffing were a valid method for determining the number of required Officers, the IACP states that, according to the Bureau of Justice Studies (BJS) (last study was 2003), the ratio BJS suggests for a town the size of Oro Valley is 1.8 officers per 1000; not 2.5 officers. This means based on the 1.8 ratio with a population of 41,000 the chief should have 74 sworn officers. The current FY 2011/2012 budget for the OVPD has 97 sworn officers. It looks like the Chief, using his own flawed methodology, has overstaffed the police force by 23 sworn officers.

For years Chief Sharp has used his faulty ratios from IACP to justify his sworn officers only. He has a total of 126 FTE for 2011 (29 are not sworn police officers) and 129 FTE for 2012 (32 are not sworn police officers). These extra people are all civilian overhead. With a hiring freeze still in effect how does he do it? For example, there are 13 FTE in the communications department that are all civilians. A large portion of them are 911 operators that could be incorporated into a regional center for all of Pima County instead of Oro Valley. Perish the thought that the Chief would recommend a regional center. He would lose part of his empire.

Isn't it time for the Chief to provide factual justification for determining the number of officers needed? Isn't it time to Chief Sharp to bring some creative thinking on how to properly staff his department?

John Musolf
----

Guest View: John Musolf- A Perspective On The Oro Valley Police Budget

In case you don't know it, the Oro Valley Police Department sops up almost half the $25 million Oro Valley 2011-2012 budget. Yes. It is less than half; but not by much.

In these tough economic times, while the Oro Valley Gang of Five Dominated Council considers dumping services such as Cayote Run, one wonders how Chief Daniel G. Sharp can be proud of reducing his budget of $12,096,513 by a whopping $39,060. This is less than one half of one percent. The reduction is infinitesimal (.00323 of the Police Department's budget).

Wow! What a significant reduction!

Any reduction of Oro Valley spending must, of necessity include a reduction in spending by the Police Department.

Are there ways this can happen?

You bet.

I will cover these in future postings.

John Musolf

Guest View: John Musolf- “Know Your Police Department’s Budget”

A good Neighborhood Watch Program is one of the most effective crime prevention tools ever invented. It is the combination of concerned residents and law enforcement working together to reduce residential burglaries and other crimes. It consists of a cohesive body of concerned citizens addressing issues that affect their neighborhood.

The Oro Valley Police Department has two Crime Prevention officers who organize, train and provide valuable information to these neighborhoods in order to reduce and prevent crime. Neighborhood Watch provides communities a direct liaison with the police department and monthly newsletters are distributed.

A number of Homeowners Associations (HOA) recently received an email message from the OVPD Neighborhood Watch. The email included a two-page document entitled "Know Your Police Department's Budget" said to have been completed in an effort to address questions concerning the Oro Valley Police Department's (OVPD) 2011/2012 fiscal year budget. [Click here to retrieve it.]

I believe that the OVPD should identify which Neighborhood Watch participants and which Homeowner’s Associations demanded answers to questions about the OVPD's budget? Did the Council authorize the time and cost to produce this brochure information for its approval prior to the e-mail being sent by OVPD and this information being posted on the Town Web Site? Is it possible that the public might question the justification and validity of this brochure?

John Musolf
----

Oro Valley Clean Energy Bonds Almost Ready For Issue

This is not a solicitation; merely some information for those interested in owning a piece of the following new Oro Valley Bond issue.

The Town is issuing taxable bonds to pay for the solar project for town facilities. The town plans to issue $2.45 million in taxable excise tax clean energy renewable bonds. This is a relatively small issue with bonds maturing from 2011 to 2027.

The bonds are S&P rated as AA- ("quality borrowers, a bit higher risk than AAA". Scottsdale is rated AAA.)

Tomorrow is the pricing for these bonds.

The bonds are being underwritten by Stone and Youngberg LLC, a San Francisco based company. So, you can call them if you are interested in purchasing these bonds.

Click here to view the prospectus, which has lots of information about Oro Valley, this bond issue, and the town's finance.

Will Joe Hornat Believe MTCVB & TREO To Be More Important Than Steam Pump Ranch?

Newly elected Council Member Joe Hornat thought funding Coyote Run was more important than funding the historical Steam Pump Ranch.

That sounds right to us.

Soon we'll see if Hornat believes funding Steam Pump Ranch is more important than helping to subsidize MTCVB & TREO.

For us----it's a "no-brainer." Steam Pump Ranch is more important, and as Council Member Bill Garner points out, we have an obligation to the voters of Pima County who helped finance the ranch with a bond issue.

Read what The Explorer says here.
http://www.explorernews.com/articles/2010/07/07/news/doc4c339f9999aab595096773.txt

Oro Valley Council Is Told 2010/2011 Tentative Budget Will Be Balanced

At tonight's Council meeting, Oro Valley Finance Director Stacey Lemos presented the results of the tentative budget for fiscal year 2010/2011.

The good news is this. Without using any contingency funds the new tentative budget is projected to be balanced with an equal amount of revenue & expenditures of $25,751,743.

The new budget will be less than 2009/2010, dropping from $121.5M to $110.6M.

The bad news is the fact that our contingency fund has dropped rather dramatically from around $18M to less than $11M which is approx 41% of our General Fund.($25.75M)

It is expected that the new council will be the one to approve a final budget sometime in June or perhaps July.

Oro Valley Seeks $6M In Federal Funds For Steam Pump Ranch

As reported in The Explorer, Oro Valley council will seeks federal funds to help sudsidize Steam Pump Ranch.

Read the article here.
http://www.explorernews.com/articles/2010/03/10/news/doc4b96d8ed4962a682316726.txt

Oro Valley Council To Study Feasibility Of An Industrial Development Authority

As reported in The Explorer,(below) the OV Council will initiate a Study Session to determine the feasibility of initiating a Industrial Development Authority in order to access bond funding for private interests intent on developing.


Industrial authority moved to study item

A proposal to start an industrial development authority in Oro Valley has been put on hold to give the council time to learn more about how the body would function.

The Oro Valley Town Council last Wednesday voted unanimously to hold a study session on the issue before making a final decision on it.

Councilwoman Salette Latas had requested that the item appear on the Feb. 17 agenda. The Explorer was unable to reach her before publication deadline last week for comment on the matter.

Latas subsequently said she asked to have the proposed industrial development authority on the agenda to weigh whether it would make sense for the town to establish one.

The IDA, which would function similar to other town commissions with members appointed by the council, would act as an intermediary to the bond markets.

Communities across the state have IDAs, which access bond funding for private interests intent on developing. The IDAs come in because often times the private interests don't have access to traditional funding.

With a local government's backing, bond financing often comes tax-free as well. Taxpayers are not financially liable for any of the debt incurred by the private interest in an IDA agreement.

In Oro Valley's case, the IDA issue came up as result of an inquiry from the operators of a charter school.

BASIS Charter School, a well-regarded public charter, has expressed interest in opening a school in Oro Valley. The non-profit that operates BASIS has schools in Scottsdale and Tucson.

School founder Michael Block had asked town economic development staffers if Oro Valley operates an IDA. Numerous charters across Arizona have gotten funding through IDAs. Pima County's IDA has provided more than $500 million in bond funding to charters over the past 10 years.

Because Oro Valley does not have an IDA, BASIS has looked outside to get funding.

"They have gone to the City of Florence for bond financing," according to Amanda Jacobs, Oro Valley economic development coordinator.

Jacobs told the council the school would be able to pay off its debt sooner by going through the Pinal County city, and would save nearly $400,000 in the process.

Block previously told The Explorer that he still intends to open in Oro Valley, possibly by the start of the next school term. The school has looked at an industrial site just off Oracle Road once occupied by Sanofi-aventis as a location for the new charter.

The town council still intends to discuss the possibility of initiating an IDA.

Oro Valley had an IDA from 1985 to 2006 when it was disbanded. In 21 years, the authority had not engaged in any bonding activity.