Council changes direction of sales tax revenue
Last week, the Oro Valley Town Council voted unanimously to move the half-percent sales tax revenue from the Community Center Fund into the General Fund, while maintaining the Community Center Fund through budgeted transfers from the General Fund. For years, these monies were dedicated to supporting municipal golf, the community center, and some other recreation assets.
Broadening its potential use to all town operations
While the decision may sound like a simple accounting move, it reflects a shift long in the making. The half-percent tax, enacted in 2015 to support early operational deficits at the golf course and community center, was projected to generate about $2 million annually. By 2021, revenues had already grown to more than $2.8 million, and in recent years annual collections have ranged from $2.9 million to $3.9 million, with FY 2025 projected near the high end of that range. Redirecting these funds into the General Fund means a substantial and growing revenue stream will now be available to support overall town priorities, not just recreation-related activities.
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Fund will continue to need town financial support |
Vice Mayor Barrett advanced the idea with the goal of giving the town greater financial flexibility while maintaining transparency about the costs of operating the golf courses and the community center. Barrett argued that this approach allows the Council to fund the community’s highest priorities—“whether that be parks, roads, or police facilities”—while also preserving transparency and historical continuity. “Residents want to know where the money is going, and this structure makes that clearer."
Only one resident spoke on this during the public hearing
This topic was a public meeting. In our June article on this we thought that there would be far more community spokespersons. Only one person spoke, however, Matt Wood, who serves on the Parks and Recreation Advisory Board spoke in support of what was to be Council’s decision. Wood emphasized trust in the Council’s judgment to use the sales tax revenue wisely across the community. At the same time, Wood underscored that parks and recreation still deserve continued funding attention even under the new arrangement.
These sales tax dollars are pledged ("encumbered") to pay park bonds
Councilmember Mary Murphy floated the idea of “sunsetting the tax when the Naranja Park bond is paid off” so that revenues could eventually be returned to residents. This would be in about 15 years. Barrett noted that the town relies on these monies, pointing out that they not only cover bond payments but also pay for capital expenses, and operating deficits: “These funds are encumbered … they pay for the bond...and they support capital and deficit operations in parks and rec … that’s part of why it’s important that those funds remain.”
Greene abstains with no comment or reason given
In the end, the Council approved Barrett’s motion by a 6–0 vote. Councilmember Green abstained from voting. He did not speak on this matter nor did he explain why he abstained. As a result of the vote, this year, all revenues from the half-percent sales tax will flow into the General Fund. The Community Center Fund will remain in place, with operations and capital needs supported by transfers approved during the annual budget process. This compromise preserves a record of past financial performance while giving the Council broader flexibility to direct revenues to the town’s most pressing needs.
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