Almost a year now and Gephart still does no know how huge construction sales tax forecasting error happenedLOVE has written for almost a year that the Town badly overestimated FY2025-26 construction sales tax revenue, budgeting about $5.1 million and ultimately collecting only about $2.7 million. At Wednesday’s Council meeting, we learned that staff made a large error in the opposite direction on building permits: residential building permit revenue reached $1.55 million, while total license and permit revenue exceeded budget by nearly $684,000.
Vice Mayor Melanie Barrett asked the obvious question: How could the Town significantly overestimate construction tax revenue while simultaneously underestimating the permit revenue associated with development? Finance Director David Gephart responded, “I don’t have a good answer for you at this point,” adding that he would have to “go back and look at how the budget was formulated.”
When Barrett asked for a report explaining the discrepancy, Gephart agreed.
The construction sales tax problem had been apparent for months, making it reasonable to expect Gephart to already understand how the original assumptions had gone so wrong. The issue is no longer simply that two forecasts missed badly in opposite directions. It now raises a broader question: Is Gephart providing the level of financial oversight the Council should expect?
Council and residents appeal staff zoning decision; Board of Adjustment hearing October 5
The Oro Valley Town Council and nearby Rancho Vistoso residents have appealed a staff zoning interpretation involving the proposed senior-care development on the vacant commercial parcel north of Safeway Vistoso Plaza. The disputed interpretation, issued by the Planning and Zoning Administrator, determined that a “sanatorium” is a permitted use in the Rancho Vistoso PAD’s C-1 commercial zoning district. Under Town procedures, appeals of zoning interpretations are heard by the Board of Adjustment, which acts as a quasi-judicial body and makes the Town’s final decision on the matter. Oro Valley The appeal is scheduled for a Board of Adjustment hearing on October 5. (learn more here)
Town launches pre-approved home plans to cut time and cost
Oro Valley’s new Community Model Homes program is now live, giving residents access to Town pre-approved designs intended to make building a guest house, casita or home faster and less expensive. The initial library includes accessory dwelling units and single-family homes, with duplex and triplex plans expected beginning in 2027. The plans are created by local design professionals and builders and are available for use by interested residents. The Town says the program is intended to expand housing options while reducing permitting time and costs. Visit the town program home page to learn more.
Oro Valley expects 14% CAP reduction in 2027 — but says local supplies are secure
Oro Valley Water Utility says the federal government’s new Colorado River operating framework is expected to reduce the Town’s Central Arizona Project allocation by about 14% beginning in January 2027. Water Utility Director Peter Abraham says Oro Valley is positioned to absorb that reduction because its CAP allocation exceeds what it normally needs, allowing the Town to store excess water underground, and because it has accumulated long-term storage credits that can be used if future CAP deliveries decline further. The Utility also points to its diversified water portfolio — groundwater, CAP water and reclaimed water — and regional partnerships as additional protection against future shortages. (Town of Oro Valley Water, "Behind the meter," Fall 2026 issue)
Fall pavement preservation work underway across Oro Valley
Oro Valley has started its fall 2026 pavement preservation program, with work scheduled from September through November on streets and in neighborhoods throughout town. The Town says the work is intended to extend the life of existing pavement before more expensive reconstruction is required, with streets selected based on pavement condition and prior treatment history. Among the larger areas on this fall’s list are Naranja Drive from La Cañada to First Avenue, Vistoso Commerce Loop, Vistoso Estates and Tangerine Heights, along with numerous neighborhood streets. Work is generally scheduled between 7 a.m. and 5 p.m., and residents in affected neighborhoods will receive notice before construction begins. (Source: Town of Oro Valley Media Release)





