Council Approves Limited Water Rate Increase For Oro Valley Water Customers.

Council approves limited water rate increase
Last week, The Oro Valley Town Council approved a potable water base rate increase. The increase applies only to drinking water base rates. It does not increase potable water commodity rates, groundwater preservation fees, reclaimed water base rates, or reclaimed water commodity rates. The increase takes effect July 4 and will first appear on August water bills.

Most customers will pay $1.86 more per month
For the typical customer with a 5/8-inch meter using 7,000 gallons per month, the water portion of the bill will increase from $51.45 to $53.31. That is an increase of $1.86 per month, or 3.6%. Water Utility Director Peter Abraham told council that about 84% of Oro Valley Water Utility customers have a 5/8-inch meter. 

Only the base rate is increasing
Abraham said the utility normally tries to balance increases between the base rate and the commodity rate. This year, however, staff recommended a base-rate-only increase because the utility needs more certain revenue. Commodity revenue can vary depending on water use and weather. A wet year could reduce water sales and make it harder for the utility to meet revenue requirements.

Higher operating costs are driving the increase
Staff said drinking water costs are rising by about $900,000, or 5.94%. The increases include personnel, operations and maintenance, power, CAP delivery, CAP wheeling, and Northwest Recharge, Recovery and Delivery System costs. Abraham said the utility offset part of that increase through reduced capital spending, lower debt paid by rates, and no added staff. Those actions produced about $450,000 in savings.

Renewable water costs are becoming a bigger factor
In response to questions from Mayor Joe Winfield, Abraham said most of the operating cost increase is tied to renewable water supplies. He said CAP wheeling, CAP delivery, and NWRRDS costs account for roughly 64% to 65% of the increase. Abraham also told council that Oro Valley is preparing for a possible 20% cut in its CAP allocation beginning in January. He said that would not reduce the amount of CAP water delivered to customers, but it would reduce the amount of CAP water the utility can store.

Council supports smaller annual adjustments
Council Member Mary Murphy, who serves as council liaison to the Water Utility Commission, praised staff and the commission for bringing forward smaller annual increases rather than waiting until a larger increase is needed. Abraham said his goal is to keep future annual increases in the 3% to 5% range, depending on costs and utility finances. 

Council approved the rate increase unanimously, 7-0.

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Bits and Pieces

Stay away from Kreigh Park Saturday morning, another big event
Residents planning to use James D. Kreigh Park Saturday morning may want to make other plans. The Oro Valley Triathlon and Duathlon Festival returns from 7 to 11 a.m., bringing nearly 500 competitors from 27 states and Canada to the Oro Valley Aquatic Center and the park area. The USA Triathlon-sanctioned event includes sprint-distance triathlon races and duathlon events, with participants ranging in age from 10 to 85. Traffic control will be in place from 4 a.m. through late morning, and town officials expect delays and heavy activity around the park while the races are underway.  (Source: Town of Oro Valley Media Release)

Water rate increase process moves forward
In January, LOVE reported that the Town of Oro Valley was considering a modest water rate adjustment. Last week, the town council formally approved a resolution giving public notice that a rate increase is being considered and starting the required public review process. The proposal currently under discussion would increase the monthly base rate for most residential customers by about $1.86, while leaving the per-gallon commodity charge unchanged. A public hearing is scheduled for June 3, when the council will decide whether to adopt the increase. If approved, the new rates would take effect about 30 days later, likely in early July.  

Traffic signal coming to Tangerine at Musette
The Oro Valley Town Council voted last week to proceed with installing a traffic signal at the intersection of Musette Drive and Tangerine Road. Town traffic engineer Paul Kiesler told council the intersection narrowly missed meeting the formal traffic “warrant” by about seven vehicles during peak periods, but he recommended moving forward because of limited sight distance caused by the vertical curve on Tangerine and increasing traffic generated by Naranja Park. Two council members expressed concern about installing a signal before the warrant is fully met, citing the town’s past practice of waiting for objective thresholds. Ultimately, the council approved the project on a 6-0 vote with Vice Mayor Barrett abstaining. The project is already included in the town’s capital improvement plan with approximately $750,000 budgeted for construction. 

Town restores original alignment for Naranja multi-use path
The town council last week approved shifting $400,000 in previously budgeted capital funds to restore the original alignment of the Naranja Drive multi-use path. When the project was first designed, rising construction estimates forced the town to trim costs through “value engineering,” including a plan that would have diverted path users through Naranja Park rather than keeping the route directly along Naranja Drive. With $300,000 no longer needed for an Oro Valley Drive drainage project and $100,000 from a La Cañada-Cobo road improvement that can now wait because a nearby development will change traffic patterns, staff recommended redirecting the funds to the path project. The council unanimously approved the change, allowing the path to remain continuous along Naranja as originally intended.

Council looks for ways to improve cell coverage north of Tangerine
The Oro Valley Town Council last week discussed persistent complaints about poor cell phone reception in Rancho Vistoso and other areas north of Tangerine Road. Vice Mayor Melanie Barrett and Council Member Mary Murphy requested the item after residents raised concerns about dropped calls, HOA gate systems that rely on cellular service, and possible public safety issues. Police officials also reported that weak signals can interrupt mobile data connections in patrol vehicles, slowing access to dispatch information. Because the town does not control cellular networks, the council unanimously directed staff to continue engaging wireless providers, identify possible town-owned sites for telecommunications infrastructure, and return with options to encourage improved service.

Town Centre rezoning: Residents weigh in at first neighborhood meeting
As previously reported in September and January, the Town Council is proposing to rezone portions of the Town-owned land at Rooney Ranch to expand commercial uses along Oracle Road, limit one portion (Area 3) to residential (either apartments or townhomes), and convert another (Area 4) from single-family lots to permanent open space with trails. At the first neighborhood meeting held several weeks ago, staff reviewed those concepts, including reduced building heights and elimination of the previously permitted five-story hotel. Residents generally supported preserving Area 4 as open space but raised concerns about traffic impacts at Oracle Road and Push View Lanes, residential density in Area 3, trail access near nearby neighborhoods, fencing and wildlife movement, water supply, long-term maintenance costs, and whether the Town should pursue a more distinctive “town center” design rather than conventional commercial development. A second neighborhood meeting is planned before the proposal moves to the Planning and Zoning Commission and Town Council for public hearings this spring.

Spring pavement preservation work underway
The Town of Oro Valley has begun its annual spring pavement preservation program, which includes surface treatments on a number of local streets to help extend pavement life and reduce the need for more costly reconstruction later. Work will occur in phases over the coming weeks and may involve temporary lane restrictions, brief delays, and construction activity in residential areas while crews apply treatments and allow surfaces to cure. Residents are encouraged to check the town’s online information page to see which streets are included and when work is expected in their area. ((Source: Town of Oro Valley Media Release)
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Bits and Pieces

Council links reported closure of Berger Performing Arts Center to potential Oro Valley Performing Arts Center
Last week, local media outlets have reported that the Arizona School for the Deaf and Blind will close the Berger Performing Arts Center on its Tucson campus effective June 30, citing funding and the closin of its Speedway location.  That reporting came after the Oro Valley Town Council had discussed the potential impact such a closure could have during last week’s strategic planning study session. At that time, Council members raised concerns about the possible loss of Berger, noting that the theater is widely used by Oro Valley-based groups and would cost tens of millions of dollars to replace. They also linked the issue to Oro Valley’s own discussions about a performing arts center, saying that the loss of a regional venue could shift demand to Oro Valley and affect the urgency and scope of any local project. Council members emphasized that the Town is not pursuing its own feasibility study, but intends to stay engaged with a nonprofit conducting a study and remain part of the broader regional conversation.

Council hires town attorney with Prescott Valley experience
This past Wednesday, the Oro Valley Town Council approved the employment contract for its new Town Attorney, a position that now reports directly to the Council rather than through the Town Manager. The Council selected Steven Zraick, a long-time Arizona attorney whose career has focused on municipal and public-sector law. Zraick most recently served as Deputy Town Attorney for the Town of Prescott Valley, where he advised elected officials, staff, and boards on day-to-day legal matters. Public records indicate that his legal work has been centered on local government rather than private practice, a background that aligns with the Council’s stated interest in strengthening its direct legal oversight.  The town attorney is responsible for providing legal advice directly to the Town Council, managing the Town’s legal department, representing the Town in legal matters, drafting and reviewing ordinances, resolutions, and contracts, and ensuring that Council actions comply with state law and the Oro Valley Town Code.  In his role, he may or may not replace the outside legal council at council meetings. 

Water impact fee shortfall flagged, changes to come before Council
Town water officials reported to the Water Utility Commission last week that the Water Resource & System Development Impact Fee, which is paid by new development to help fund growth-related water infrastructure, is projected to fall short in fiscal year 2026–27. Staff told the Commission that projected expenses of about $2.3 million exceed expected impact fee revenue of roughly $1.2 million, creating a gap tied largely to growth-related debt for major water projects. According to staff, current impact fees were set years ago and no longer reflect rising infrastructure costs. Staff said the next step is to prepare an updated impact fee analysis and bring a proposed fee adjustment to the Town Council later in 2026, following the state-required notice and public hearing process.

You can sign candidate nomination petitions online
Arizona voters can sign candidate nomination petitions online using the Secretary of State’s E-Qual system. Visit this link and select “Sign a Candidate Nomination Petition.” Log in with you Arizona driver license or state ID and date of birth to see which candidates they are eligible to support. The system allows you to review and sign petitions electronically, eliminating the need for in-person signature gathering and making it easier to participate in the local election process.

Stormwater Utility fee going up over three years
The Oro Valley Town Council approved a phased increase to the stormwater utility base rate on January 14. The increase will take effect July 1, at the start of the new fiscal year, and will be implemented over three years. The base rate will rise from $4.50 to $6.50 per equivalent residential unit (ERU) once fully phased in. Town staff said the additional revenue will support stormwater system maintenance, regulatory compliance, and flood control, noting that the stormwater rate had not been increased since 2016.

Water cost increase proposed for next July
At its January 12 meeting, the Water Utility Commission reviewed staff’s water rate analysis for FY 2026–27 and affirmed the recommended water rate changes for consideration by the Town Council. The recommendation includes an increase to potable water base rates only, with no changes to usage-based rates or reclaimed water rates; most residential customers with a 5/8-inch meter would see a $1.86 monthly increase. The Commission also reviewed the Groundwater Preservation Fee, for which no change is proposed. In addition, commissioners discussed the Water Resource & System Development Impact Fee, noting that projected expenses exceed revenues and that proposed changes would be brought to Town Council later in 2026 following the required notice and public hearing process. The amount of the proposed increase was not specified at the meeting.

November Financial Update: Town finances largely on track, construction sales tax trails budget
The town's General Fund revenues are tracking below budget through November 2025, largely due to weaker construction activity. Expenditures remain generally on budget due in part to vacancy savings. Community Center Fund continues to outperform expectations, the Highway Fund is tracking close to budget but may require continued capital fund support, and both the Water Utility and Stormwater Funds are trending positively. To address the General Fund shortfall, staff has taken cost-control measures including extended vacancies, reduced operating budgets, reconsideration of excess pension payments, and potential capital spending reductions, while noting that future transportation funding will depend on the outcome of the March RTA Next election [since the town is dependent on the RTA for public transportation] (Source: Budget and Finance Commission Meeting,  01-20-26)
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Oro Valley Water To Propose Small Water Rate Increase for 2026–27

Modest water rate adjustment recommended for next year
The Oro Valley Water Utility is considering only a small change to water costs for rates effecting next July. Water Director Peter Abraham and Water Utility Administrator Mary Rallis presented the annual water-rate analysis to the Water Utility Commission on November 10, emphasizing that the utility can meet its financial obligations with a modest increase to the monthly base rate only. There are no proposed increases to the per-gallon commodity rates that residents pay.

Base rate only increase keeps costs stable
Under the proposal, the typical residential customer with a 5/8-inch meter would see an increase of $1.86 per month. This adjustment affects only the fixed base charge, leaving all potable and reclaimed commodity tiers unchanged. About 84% of Oro Valley customers fall into this meter category. The groundwater preservation fee also remains unchanged at $1.00 per 1,000 gallons.

Drivers of the recommendation
Abraham and Rallis explained that rising CAP delivery costs and continued 5.5% annual increases in Tucson Water wheeling charges require the utility to secure stable revenue. A base-rate adjustment ensures that essential operating and capital expenses are reliably covered, even if water use fluctuates due to wetter weather or conservation shifts. The utility continues to see customers moving into lower-use tiers, a positive trend but one that reduces variable revenue.

Financial position remains strong
The five-year financial model presented to the Commission shows the Water Utility maintaining required reserves, meeting all debt-service coverage requirements, and keeping the system on a pay-as-you-go footing for existing system improvements. The utility anticipates a small, planned use of cash this year and next, followed by rising balances as older debt rolls off beginning in FY 27-28. Importantly, the debt associated with the Northwest Recharge, Recovery and Delivery System project (NWRRDS) is fully funded through impact fees and groundwater preservation fees, not water rates. 

Good news for residents
For residents, the message is positive. The cost of water use is not increasing, the overall financial health of the utility remains solid, and the proposed base-rate adjustment is the smallest step needed to maintain system reliability. The utility does not expect to seek changes to reclaimed-water rates or commodity charges next year. Director Abraham is expected to forward a recommendation to the Town Council early in 2026.

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Bits and Pieces

Council approves new police agreement 

Wednesday, the Oro Valley Town Council unanimously (5-0 Vote) approved a new Memorandum of Understanding (MOU) with the Oro Valley Police Officers Association. The Council’s vote followed several weeks of behind-the-scenes discussions after negotiations had reached an impasse in early May. While speakers praised the agreement as fair and competitive, the final version of the MOU and its supporting documents were not made available to the public prior to the vote, so no further details can be reported at this time. We reported regarding the various options being consider and will report the final agreement once we receive the materials.

Water rate increase approved—effective July 5

Also Wednesday, the Oro Valley Town Council unanimously approved increases to the town’s potable water base and commodity rates, effective July 5. The average residential customer using 7,000 gallons per month will see a monthly increase of $1.81, or about 3.6%. The primary driver is a sharp increase in the cost of Central Arizona Project (CAP) water. The Town continues to cash-fund its capital improvement program without issuing new debt, which also contributes to the rate hike. Reclaimed water rates remain unchanged, and the town notes that Oro Valley still offers some of the lowest water rates in southern Arizona for typical residential customers.

Council targets chronic building and litter violations with stronger enforcement tools

And Also Wednesday, the Oro Valley Town Council adopted Ordinance No. (O)25-03, changing how the Town enforces certain code violations. The ordinance reclassifies issues such as illegal construction, unpermitted electrical or plumbing work, and failure to remove accumulated litter from criminal to civil offenses for initial violations. This change allows Town code enforcement officers—not just police or legal staff—to issue citations directly, making enforcement faster and more efficient. To address ongoing noncompliance, the ordinance also introduces a mechanism to escalate repeat violations to criminal charges after three offenses within 24 months. A new maximum civil fine of $1,000 per day was also established.

Town stays on track to fully fund police pensions

And, once again, Wednesday, the Oro Valley Town Council unanimously approved fulling funding the town's Public Safety Personnel Retirement System (PSPRS) obligation. The policy is a continuation of prior year policies under Winfield's leadership. The contribuion reflects the most recent actuarial data, showing that the town’s police pension fund improved from 95% funded in FY 2023 to 98.6% in FY 2024. With this year’s additional budgeted contributions, staff expects to reach full funding—potentially exceeding 100%—by the end of FY 2025–26, assuming stable investment returns. The new policy maintains the town’s commitment to responsible, long-term pension funding.

Oro Valley has more than fifty commercial sites available for development
The Town of Oro Valley’s economic development website lists over 50 sites available for commercial activity, including both land parcels and existing buildings. Specifically, there are 19 sites designated for high-tech and bioscience development, some located within Innovation Park’s expedited development zone. Additionally, there are over 30 commercially zoned sites ranging in size from under an acre to nearly 15 acres. These figures encompass both vacant land suitable for new construction and existing buildings available for adaptive reuse. Most of the existing buildings are along Oracle Road. Most f the vacant land is west of La Canada. [See Panel right]. (Source: ChooseOroValley.com )

No congressional funds for Oro Valley in 2026...Overreached in FY25?

Congressman Juan Ciscomani has no community project funding requests for Oro Valley in the FY2026 federal appropriations cycle. That’s a sharp contrast from last year, when he sought $17 million for Oro Valley bridge repairs—a figure that now appears far higher than necessary. According to the Town’s own FY26 Capital Improvement Program, total bridge-related spending over the next ten years is budgeted at just $7.2 million. That includes specific repairs to La Cañada, Rancho Vistoso, and First Avenue bridges, as well as ongoing annual maintenance. (Source)

Red light therapy, juice bars, and high-tech optics highlight May's business openings

Oro Valley welcomed several new businesses this month, with a notable focus on wellness and innovation. Two red light therapy studios—Diviti Adora and Red Light Method—have opened on Tangerine and Oracle, offering treatments that blend fitness with infrared light technology. On the tech side, Transformative Optics brings cutting-edge imaging system development to town, while Talon Analytics offers engineering solutions to Fortune 500 firms. Also new: Oranju, a fresh juice bar, and a branch of Tucson Federal Credit Union inside Walmart. (Source: The OV Edge)

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Lowest Water Uses Hit Hardest By Water Cost Increase

More details on Oro Valley’s water rate increase proposal
Last week, in our article “It Happens Every Year—Another Water Rate Increase,” we provided an overview of the fiscal year 2026 water rate increase. Since then, Water Utility Director Peter Abraham has presented the proposed changes to the Oro Valley Town Council. His presentation included additional details that were not covered in our previous article. This update highlights those details, as well as some of the Town Council members’ comments and concerns regarding the rate increase.

Big hit to low water users (Last year 8%, this year 4.2%)

The proposed rate increase affects both the base rate and commodity rates, with the greatest percentage impact on lower water usage tiers. 84% of Oro Valley residents have the smallest 5/8-inch meter and will see their monthly base rate rise by $1.11 (5%), from $22.20 to $23.31. The base rate is the fixed charge for being connected to the system, regardless of water usage.

Additionally, Tier 1 users (customers who use up to 7,000 gallons of water per month) will see their commodity rate increase by $0.10 per 1,000 gallons (3.5%), while Tier 2 users (customers consuming between 7,001 and 16,000 gallons per month) will experience a $0.17 per 1,000 gallons (3.5%) increase. This results in an overall 3.8% increase in the water bill, following last year’s 7.8% increase.

The total water bill also includes five additional fees or taxes, which add approximately $15 to $16 to the bill. As a result, a Tier 1 user will be billed $60.48 in total under the proposed rate schedule. Only $44.45 is for the cost of water.

Big users see no water cost increase

Meanwhile, about 1,200 of the town’s highest water users fall into Tier 3 and Tier 4. Last year, Tier 3 rates increased by 35%, and Tier 4 rates increased by 40%, the largest hikes among all tiers. No additional increases were proposed for these tiers, as Abraham wants to evaluate whether last year’s steep increases successfully reduced high water consumption among that group. Our guess is that the town itself is the biggest user in these categories.

Four factors driving the water rate increase

According to Abraham, four factors are driving the need for a rate increase:

• Rising CAP water costs (an 8.9% increase, or $257,450)
• $10.8 million in cash-funded system improvements over five years
• A town mandated requirement that operating cash reserves be at or above 20% of the combined total of the annual budgeted amounts for personnel, operations and maintenance, and debt service. This reserve excludes budgeted amounts for capital projects, depreciation, amortization, and contingency funds. (Town of Oro Valley Water Policies Section II.A.1.d)
• Funds required to purchase more long term storage credits ($200,000). Abraham refers to these funds as "Cash Firming". These are measures employed to ensure the availability of funds during periods when water supplies from primary sources, such as the Central Arizona Project (CAP), are reduced or interrupted.
  
  

Water conservation leads to revenue shortfalls...rates go up to cover that too
A fifth reason, one not noted directly in Abraham's report to council is that Oro Valley water revenue has a shortfall from plan. This is a direct result of residents conserving water—a practice the town encourages, yet one that paradoxically leads to higher rates. As more people reduce their water use, the utility collects less revenue, even though its fixed costs for infrastructure, maintenance, and operations remain unchanged. To offset the shortfall, water rates must be increased, ensuring the utility meets its financial obligations. This creates an ironic situation where the less water you use, the more you pay per gallon. Unlike other utilities where lower usage directly reduces costs, there’s no real way to significantly lower your water bill since the base rate and tiered pricing structure ensure the utility recovers its required revenue.

Future water rate increases may decline in fiscal 2028
During the council discussion, Vice Mayor Barrett suggested smoothing out rate increases over multiple years to prevent large fluctuations. Abraham acknowledged the concern but noted that projected rate hikes will drop significantly after fiscal year 2027-28, when substantial debt obligations come off the books. The town will still need to take on new debt, including a $6 million private placement loan for the Northwest Recharge Recovery, and Delivery System (NWRRDS) project. These costs, however, will be covered by groundwater preservation fees and impact fees, not additional rate increases.

Next steps in the rate approval process
With the Notice of Intent (NOI) approved, the public review period has begun. The final vote on the rate increase is scheduled for June 4, 2025, following two public hearings. If approved, the new rates will take effect on July 5, 2025. Abraham assured the council that no additional rate or fee increases are planned beyond the adjustments to the base rate and Tiers 1 and 2 commodity rates.
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It Happens Every Year…Another Water Rate Increase In Progress

Tonight: Oro Valley starts the process of increasing your water bill
Oro Valley residents will likely see an increase in their water bills in August as the town’s Water Utility Commission recommends increases to both base rates and commodity rates. According to the recently released Water Rates Analysis Report, the changes are necessary to maintain financial stability while funding operational costs, infrastructure improvements, and debt obligations. The report states that the rate increases will help the utility recover fixed and variable costs while ensuring compliance with financial policies and bond covenants. The report, along with a request for the Town Council to approve notice of a water rate increase, will be presented to the Oro Valley Town Council tonight.

Base and commodity rates will increase
The report proposes an increase in the drinking water base rate and a commodity rate hike per 1,000 gallons used. For residential customers with a 5/8-inch meter—the most common size in Oro Valley—the monthly base rate would increase by $1.11, while the commodity rate would rise by $0.10 per 1,000 gallons. This means that a household using 7,000 gallons per month would see their bill increase by $1.81 per month, a 3.8% increase over current rates. However, the actual impact on water bills will be greater because sales and utility taxes are added, further increasing the cost.

Rate increases driven by rising costs, financial planning, and department philosophy
According to the Water Rates Analysis Report, water rate increases are attributed to rising operating costs, inflation, and the need to maintain adequate cash reserves in the utility’s operating fund. Additionally, Water Utility Director Peter Abraham advocates for annual rate increases, believing this approach smooths out financial impacts on residents. However, this philosophy failed residents last year when the Town Council approved a significant increase [See panel right]. 

The Water Utility Commission and town staff defend the increases also citing the need to meet debt service coverage requirements and maintain financial reserves at a safe level. The current proposal projects that the water utility operating fund will retain a cash balance of over $5.4 million by the end of the five-year period, exceeding reserve requirements. They claim this financial stability will allow Oro Valley to continue funding capital improvements while keeping rate increases “modest.”

And NWRRDS project requires more funding
Another key driver of future costs is the Northwest Recharge, Recovery, and Delivery System (NWRRDS) project, which will deliver Central Arizona Project (CAP) water directly to Oro Valley from the Avra Valley ponds. The estimated cost of this project has increased significantly since its conception. According to the report, the town plans to issue $17 million in new debt to support this project this fiscal year, with debt service payments funded through the Groundwater Preservation Fee and the Water Resource and System Development Impact Fee Fund.

Public hearing to be set before final decision in June
The Town Council will review the water rates report tonight and is expected to approve the posting of a notice of a water rate increase. Following this, the council will hold a public hearing before they approve the new rates in June. Approval is virtually a certainty. Very few, if any, speak at the public hearing and water rates are comparable to other communities [Panel left]. This Council has never altered a request for nor denied a water rate increase request. Once approved, the new rates will take effect in August 2025.

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About the Oro Valley Water Utility
The Oro Valley Water Utility operates as an enterprise fund, meaning it is financially separate from the town’s general operations and funded solely by water service charges rather than tax dollars. It provides potable and reclaimed water to residents and businesses while managing infrastructure, conservation efforts, and long-term resource planning. The utility’s revenues cover all operational costs, debt service, and capital improvements, ensuring that water-related funds are not used for other town services. The town does provide the utility some administrative and vehicle maintenance services for fees that are "negotiated" between the utility and the town itself.  Oversight is provided by the Oro Valley Town Council, which reviews and approves rate adjustments and financial plans to maintain a stable and sustainable water supply for the community.

It's a Wrap! Top Stories of 2024

Top five stories of 2024

2024 was a busy year in Oro Valley. Here us out cut at the top five stories. 

1. Celebrating 50 years of community and growth
The Town of Oro Valley commemorated its 50th anniversary throughout 2024 with a series of events that highlighted the community’s history and spirit. The celebrations included a vibrant parade on April 6, featuring over 90 participants from local schools, community groups, and businesses, along with a spectacular fireworks display on April 13 at James D. Kriegh Park. Additionally, on April 27, the town hosted the “50 Trees for 50 Years” community tree planting event, where residents gathered to plant 50 trees across four locations, enhancing the town’s green spaces. The Oro Valley Chamber of Commerce also launched the “50 Businesses for 50 Years” Shop OV campaign, highlighting 50 local businesses throughout the year to encourage community support and economic growth.

2. Robb and Murphy elected to council
In the 2024 Oro Valley Town Council election, two new council members were elected by a vast majority of votes, reflecting strong community support. Elizabeth Robb, a local business owner, and Mary Murphy, a longtime resident and community advocate, bring fresh perspectives to the council. Their addition is expected to influence upcoming decisions on key community issues, including development projects, public services, and fiscal policies. Residents anticipate that the new council members will prioritize transparency and community engagement, ensuring that the voices of Oro Valley citizens are well-represented in the town’s governance.

3. The OVCN’s onslaught on Oro Valley’s historic neighborhood took a new turn
The Oro Valley Church of the Nazarene (OVCN) put its plan to build a massive sports complex on hold, at least for the moment. However, that plan is not dead; it’s simply on hiatus. Instead, they are now pursuing the addition of new facilities to their campus, substantially increasing their footprint. The latest effort is to ask permission for buildings of greater height than currently exists. As we wrote yesterday, it’s a continuing cycle of misery for the residents. This saga will continue into 2025.

4. Another year of nothing for the Vistoso Trails Nature Preserve
The Town Council did lots of talking about the Vistoso Trails Nature Preserve. There was much discussion about plans to do something. The council even agreed to “do something” only to learn that one of those plans — repurposing the abandoned pond into a “desert garden” — was an unattractive alternative. Residents noticed this, and the council temporarily paused the approved plan to take another look at the water feature instead of a desert garden. More on this in 2025. In the meantime, the preserve looks like an abandoned golf course.

5. "OVPathForward" moves forward big time
The town made progress this year in creating its 2026 General Plan, called “OV Path Forward.” A draft vision and guiding principles were developed with the input of thousands of residents. The next step is to flesh out the details around these principles. Working groups will tackle this in 2025.

Honorable mention

There were some other notable happenings this year:

• The fourth annual Rockin’4Heroes concert was a huge success.
• The town implemented an 8.3% increase in water rates, while continuing to use thousands of gallons of water on recreation facilities, earning the LOVE Water Waster Award for the fourth time.
• The town council adopted a $151.2 million budget.
• Oro Valley celebrated the opening of Naranja Park.
• The Arizona Heroes Memorial at the park was dedicated.
• The town ended its contract with Visit Tucson and took over its own destination marketing program.
• The Town Council rejected the tiny homes project in Rancho Vistoso.

And on a sad note
Rick Messina, a well-liked groundskeeper at the Pusch Ridge Golf Course, tragically died from a bee attack in July. Friends of Pusch Ridge Golf raised almost $10,000 to help Rick’s parents.

It was indeed a busy year in Oro Valley.

We suspect that 2025 will be just as busy.

Happy holidays to all.
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Sticker Shock: Cost of Water Could Skyrocket Starting This Coming August

Smoothing water rate increases has been Oro Valley's history
Each year, the town raises the cost of water by 2-3%. According to Oro Valley Water Director Peter Abraham, addressing the town council last week, the objective has been to smooth rate increases over time to account for inflation and the ever-increasing cost of operating the system, so that there is no 'sticker shock'.

But next year water cost could skyrocket
Starting in August, your water bill will increase by 8.3% for some and up to 26% for others if a proposed water rate increase is approved by the council in June. Last week, the council took the first step in doing just that by approving the posting of a notice on new water rates for 2024-25.”

The proposed water rate increases are in three pieces:

• A 5% increase in the base connection rate 
• A 10% to 40% increase in the cost of the amount of water consumed, depending on how much is used. 
• A 12.5% increase in the groundwater preservation fee

In addition, these added costs are increased by the taxes residents pay on the water portion of their bills. (See panel)

Abraham notes three reasons for the need for these increases

• First, water rates that were set too low in fiscal 2023 last year causing a $843,000 shortfall in revenues. These revenues must be recouped in order to shore up required reserves. Sad but true: The less water the community uses the more the cost per gallon. That is because the water rate is computed based on an assumed number of gallons used. So, if residents use less total gallons than the projected number of gallons, as they did in fiscal 2022, the revenue raised will be insufficient to cover cost.
• Second, CAP is going to bill towns for CAP water at higher rates; and Tucson Water is increasing its fee to Oro Valley for bringing (“wheeling”) CAP water to Oro Valley.
• Third, there are needs for system improvements and these are funded on a "pay as you go" basis

Even after these increases, Abraham notes, the cost of the water component of the bill is less than that of Marana and Tucson.

The town is looking for more ways to make water even more expensive 
In the past, Abraham has stated that Oro Valley has reached a point where conservation has peaked. However, he has decided that increasing water costs will further promote conservation. He announced that the town is looking to update its water rate model. The tentative plan is to add the "Winfield Tier," a water consumption tier for usage of up to 3,000 gallons. This is the amount that the Mayor and his family use.

There will be a public hearing on the proposed rate increase in June
We do not expect any public opposition because people may not know how to oppose this type of rate increase. That will be up to the Town Council. Based on council comments at last week's meeting, we anticipate that only Council Member Bohen may mount any substantive challenge, if indeed one does happen. The rates will go into effect on August 1.

Big increase is really bad timing… Just another nail in the cost of living fisaco...The town can help if it wants to
The proposed water cost increase comes at a really bad time. Every living cost is up substantially, from the Southwest Gas bill to the cost of gasoline. Every product you buy at Fry's is 30% more than it was three years ago, and the cost of prescription medicine is up as well. Additionally, a large majority of people in Oro Valley live on fixed incomes. Perhaps the town should find a way to smooth this significant increase over several years to alleviate the burden on residents.

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This and That From The TMRB Study Sessions

No change in what we previously reported on the TMRB

The Oro Valley Town Council held 8 hours of a study session on the 2023-24 Town Manager’s Recommended Budget (TMRB). Nothing new regarding the TMRB emerged. What we previously reported stands.  However, there were a few things that we did learn from the sessions that are worth sharing.

Town considers "Winfield Special" fifth tier for water billing

The town’s water department is studying adding a fifth tier to the water billing structure. That tier would be for users, like the Winfield family, of less than 3,000 gallons of .water.  The town’s current structure, in which users are penalized for water use, will continue. Staff did not announce a timetable for this new tier.  Interestingly, the brain child of this tier was offered up some months ago by Mayor Winfield on the guise of encouraging less water use. Could it be that he just wants he wants to lower his water bill? One could reasonably question how a family of six can survive on 3,000 gallons of water a month.

Homeowner insurance may cover scams

We hope that you are never scammed. Some of the latest scams are discussed on the Oro Valley Police web site.  If you are, we learned at the special session that Homeowners insurance may cover the damage. Check your policy or ask your agent to see if you are covered.

Whether municipal golf makes a profit is a matter of accounting

There is no agreement among councilmembers or among town staff on how to determine if municipal golf is making a profit. Staff says it is but one has no idea if that interpretation includes sales tax support.  And there are differences in understanding what revenues and what costs should be charged to golf operations. For example, when town staff says that municipal golf is profitable that are not including the millions that are being spent on replacing the irrigation system, enlarging the community center parking, or making the area more challenged accessible.

Grants and outside funds play a huge role in public works funding

The town seeks federal, state or local funds for just about every road project they do.  The La Canada Bridge needs repairs so staff is seeking federal funding. Naranja Drive needs a multi-user path. Staff is seeking PAG and RTA funds for this. Much of the remaining roads program is funded by state highway funds.

Councilmembers want to measure the results of economic development efforts but…

Every council member asked how the Economic Development Department measures its results. None of them got an answer. That’s because, try as he may, Mr. Melcher, the department head, has very little to show in his three years in on the job. Much of this is because the town's target businesses, high tech and medical tech, are hard to find. So, Melcher is focusing on bringing events to town. This will bring outsiders in to use the town's retail and hotel services. Melcher will report to council on the result of one such event, the Tucson Bicycle Classic, at this Wednesday's meeting. Read our April analysis of why economic development efforts have produced limited results.

The town is getting software to help them identify those who do not register their short term rentals

The software scans the various short term rental website. The program gathers information on rentals offered in Oro Valley, summarizes the results, and develops a report of activity by the owner.  Staff will then compare that list to the list of those who have registered to determine those who have not.  Staff claims that this will be "evidence" sufficient to press forward. Here's one example of the kind of software that can do this.

Fee Payers should pay credit card fee

The town budgets a $57,000 credit card fee cost incurred when people pay fees using their credit cards. Why doesn't the town add this fee to the cost when the person is paying? This is a common practice when paying bills online to public entities.

Councilmembers "fall over backwards" to complement staff on the job staff is doing

It was difficult to listen to eight hours of a study session. Much of the session is consumed by councilmembers telling staff what a great job the town staff person is doing; and if they are addressing a supervisor, telling them what a great job their staff is doing. "Thank you for your services and the great work you do" is heard over and over again.  There's nothing wrong with that. But when you do to every one every time, the compliment becomes gratuitous. One suggestion: Mayor Winfield should thank staff for their great work at the start of every meeting. That way, the same praise does not have to be repeated ad nauseam. 

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Bits and Pieces

Not everyone is happy with plans for Vistoso Trails Nature Preserve

This Tuesday, the Planning and Zoning Commission viewed the latest set of plans and options for the transformation of the Vistoso Trails Nature Preserve from the former Vistoso Golf Course. The commission entertained audience comments. 

All of the commenters lived in the area. These concerns include the location of the parking lot off Vistoso Highlands drive and its impact on increasing traffic; too many trails; the design of a restored pond; security and privacy in relation to homes abutting the preserve; preventing use of the preserve by dirt bikers. One speaker said the plan was turning the preserve into an amusement park. Another said that the plan was grandiose. Others said that they were not included in the design process. One wanted to know how their objections would be further considered. The Parks and Recreation staff will present the plan to the council in a study session on March 15.

No audience speaker mentioned two important concerns of all residents: The cost of building this, the source of this money, and the cost of maintaining this facility.

ChatGPT is bonkers over Oro Valley 

The website ChatGPT is the "rage."  Ask it a question. It will reply with a full response, one that seems as if it were written by a human. Some futurists see it, or something like it, as the next step in freeing people for the tedium of actually having to research and  write something of their own. CHATGPT can only reply with internet information which it can cobble together. The panel at right is its description of Oro Valley.  Sort of accurate. Sort of not. The ChatGPT response reads like it was written by one of our town's public relations people.

Water rate increase on the horizon

Every year at this time the Town of Oro Valley Town Council approves a motion to provide notice to all of a water rate increase. This starts the clock of an increase with goes into effect this August 1. This Wednesday, the council will likely approve that motion as it is on the consent agenda. The water utility is proposing an increase in the cost of both potable and reclaimed water. For the average potable water user: "The financial impact of the proposed base and commodity rate increase for a customer with a 5/8-inch meter using 7,000 gallons is $2.11 per month." The council will hold the first public hearing on the proposed rate increase in April.

Naranja Park Splashpad design survey results

“Thank you to everyone that participated and provided feedback regarding the Naranja Park splashpad design! We had over 950 surveys submitted and 69% of those votes were in favor of... drumroll please... option B. This option includes the slide. As a reminder, while it's not pictured, the design will include shade and seating. Comments that were submitted regarding safety have been noted and will be shared with the design team. We anticipate the splashpad opening in late spring/early summer of 2024.” (Source: Town of Oro Valley Parks and Recreation weekly email)

Water Rate Hikes Coming...Reclaimed Water Use Becomes A Strategic Decision

Potable water rates and wastewater use in forefront

Two items on last week's Town of Oro Valley Town Council agenda related to water. One is a water rate increase. The second is a discussion the potential for extending the towns reclaimed water system to those parks currently use potable water for irrigation.

Potable water rates will increase in August

The council unanimously (6-0, Jones-Ivey absent) approved it's annual increase in water rates. An annual increase is part of Water Director Peter Abraham's plan to gradually increase rates to compensate for increased cost. This year, the cost of CAP water went up, causing the need for this year's increase cost. The rates schedules were accepted as presented. 

Mayor Winfield would like to see the town increase the cost of water to those homes that use more than 3,000 gallons of water a month.  Council Member Solomon disagrees. He noted the unfairness of this increase in subsidization by larger homes for smaller homes. The current rate schedule already does this.  The average use of water for Oro Valley homes is 7,000 gallons per month.  Winfield's suggested change further increase water cost to most resident.

Reclaimed water system to stay as is for now...further discussion needed

Council members Nicolson and Bohen had asked that a discussion of the wastewater system be on the agenda. They wanted to know: Can the system be extended to those town parks that use potable water? If so, what would it cost to do so?  What would be the impact on the town's potable water supply?

Abraham sees multiple uses of Oro Valley's reclaimed water allotment

Oro Valley Water Director Peter Abraham framed his response in a broader context. "When I started diving into this my mind was going to some amazing places that might be of better benefit to the community than just extending the reclaimed water system. We have an opportunity here to further ensure our sustainability. We have the resource. Let's take our time and wrestle with it."  One possibility is that reclaimed water can be treated and injected into our current potable water system.

Town Manager Jacobs: Future use of reclaimed water is a major policy issue

Oro Valley Town Manager Jacobs agrees that "this is a major policy issue. It is something we need to figure out in terms of what is right for this community. This should be incorporated into the strategic leadership plan."

Yes. The reclaimed water can be extended to the southern area of town

The cost of doing so depends on the route and the engineering challenges along the way. Abraham guesses that it could be $8 million dollars. But then again it could be $10 million or $6 million. Since Abraham doesn't know the route, he can not give a firm estimate of the cost of extending the route.  

Yes. The town does have enough capacity of reclaimed water to be able to supply those parks that are currently using potable water

These parks used 6.4 million gallons of drinking water in April [panel left]. That is the equivalent use for 917 single family residential home.

Jacobs will present a motion to the town council at next week’s meeting to “…analyze and develop policy options for the cost-effective and efficient long-term use of the Town’s unused reclaimed water entitlement.” (Source) This is to be completed by June 30 2023.

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Drinking Water Rate Increase "On Tap" For July

The process began last night

Last night, the Oro Valley town Council started opened the spigot for a 2022 – 23 water rate increase. The increase would be effective next July.  

The Council started the process of increasing the water rate by approving a notice to all that a water rate increase is being considered. The actual approval of the increase will not happen until June when there is a hearing before council.

Increase is part of a long term plan

The proposed increase is consistent with Water Department Utility Director Peter Abraham's plan to annually increase rates in small increments rather than implementing a large increase every few years.

The bottom line: Every user will experience an increase in drinking water cost

"The financial impact of the proposed base and commodity rate increase for a customer with a 5/8-inch meter using 7,000 gallons is $1.79 per month. Customers with a 5/8-inch meter represent 87 percent of the total customer base and include residential, commercial and irrigation classifications with the vast majority of those being residential. The base rate increase would be $0.95 per month for all customers with this meter size. The proposed commodity rate increase for customers in Tier 1 would be $0.12 per 1,000 gallons used per month."

The actual cost of the increase will be greater because of the taxes and fees that are added to your water bill. Some of these, the sales tax and utility tax, are a percent of the bill.

All water users will see some increase in water rates as shown in the table above.

There is no change proposed to the cost of reclaimed water.

Six Percent Drinking Water Rate Increases Being Discussed

Consultant: Future Water Rate Increases Needed

The town council will consider a drinking  rate increase in June. This will be the result of a process that started in October, with a consultant's study of the cost of water service. It continued Monday night when the Town of Oro Valley Water Commission will review a report prepared by the consultant,  Willdan. 

The study, “Water Rate Study and Long-Term Financial Plan”. recommends that the town implement water rate increases each July from 2022 through 2026. The rate of increase this year and next would be 6% (See panel right). This would be a 

... to cover increase cost and investment

According to the study, the increases are needed to cover expected personnel and operating expense increase, increases in the cost of CAP water and funding of $18.9 million in capital improvements during these years. Two thirds of the capital improvement spending is for the NWRRDS project that will bring and added $4,000 acre feet of CAP water to Oro Valley.

Most of the improvements will be funded either by the add on tax, the Groundwater Preservation Fee, and through $8million bond issuance in 2023.

Would result in a 6% increase next July

A residential user of 7,000 gallons per month would see an increase of $2.15 on their water bill in 2022. That is a 6% increase over their current billed used at this level.

Four reasons the increase benefits the community

The consultant provides four reasons why the 6% rate increase will be beneficial to Oro Valley:

• Will enable utility to continue operating on a stand-alone basis and independent of general fund assistance
• Will result in financially-healthy utility that has ability to fund operations and capital needs
• Ensures that ratepayers pay only what it costs to provide water service
• Will allow $18.8 million of capital investment to improve quality of service and provide a well-functioning system for future generations