There are two very different aspects of Parks and Recreation in Oro Valley. There are the traditional amenities—playgrounds, ball fields, trails, multi-use paths, and cultural venues like Steam Pump Ranch. Most of these assets are paid for by tax proceeds and grants. Only about 10% of operating costs and capital investments come from user fees.
Fee-Based Recreational Facilities
The other part of Parks and Recreation includes amenities for which users pay fees. These include the Community Center health club, the Overlook Restaurant, El Conquistador Golf, El Conquistador Tennis, pickleball courts, and the Aquatic Center. Because these facilities are owned and operated by the town, they are not considered “for profit” but are managed with the goal of offsetting most expenses through user fees. Currently, user fees cover approximately 60% of the costs associated with these assets. Not only do these assets meet the needs of Oro Valley residents, but they also attract and serve visitors. Should both aspects of Parks and Recreation be managed together and in the same way?
A Shift in Oro Valley's Growth
We are at a point in the evolution of Oro Valley where growth through land development is reaching its limit. To meet the future needs of our community, Economic Development is exploring alternative ways to generate revenue. Our fee-based community recreational assets already contribute to a tourism strategy.
Investing in Fee-Based Assets
Leveraging fee-based assets requires investments to maintain the quality needed to attract the desired audience. These facilities must be well-maintained, aggressively marketed, and managed in ways that balance their use to serve both residents and visitors. To achieve this, we should consider creating an enterprise entity for fee-based recreational assets to ensure they are mostly self-funded. This could involve establishing a separate taxing authority. Fees need to remain affordable for residents while being sufficient to cover operating costs and future capital needs to maintain the quality expected to attract and serve visitors and businesses in Oro Valley.
Current Management vs. Revenue Potential
Currently, revenue-generating assets are managed in the same way as non-revenue-generating facilities that are freely accessible to the community. The distinction between these types of assets is clear. For example, Kriegh Park is a general-use facility for baseball and softball, with a playground and walking path—all mostly free. In contrast, the adjacent Aquatic Center is a revenue-generating facility that hosts swim meets and supports the town’s sports tourism strategy.
Enhancing Economic Development
Revenue-generating facilities should be strategically used to support the town’s economic development, specifically through sports and recreational tourism. These facilities need focused attention to ensure they achieve the goal of bringing visitors and their spending to the community.
Proposal: A Commission That Reports to the Council
Assigning an accountable commission that reports to the council to oversee fee-based facilities from a business perspective is more appropriate than using valuable Town Council resources to discuss operational details, such as dust abatement on the El Conquistador Course. Many communities have established enterprise funds or similar oversight organizations to manage user-fee-based recreational operations. This model could be applied in Oro Valley.
The Challenge Ahead
Our Parks and Recreation staff does an excellent job managing a diverse range of assets. The challenge going forward is determining whether it is realistic for them to manage everything in a way that best serves both residents and the town’s economic future.
I believe exploring this alternative is worth debating.
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Tony D'Angelo is a long-time Oro Valley resident and President of the Friends of Pusch Ridge Golf.