Below are some quotes from both local and national media
April 14, 2020 – the Washington Post: "Local governments generally cannot run deficits, unlike the nation’s capital, leaving them no choice but to slash spending or raise taxes.”
April 16, 2020 – the Arizona Star: “City workers could face furloughs and layoffs as Tucson deals with steep, unexpected revenue losses as a result of the coronavirus pandemic, City Manager Michael Ortega says.”
April 16, 2020 – KGUN TV: “In a memo Wednesday, County Administrator Chuck Huckelberry said retail sales in the county are down almost a third this quarter. He says restaurants, bars and hotels are down 70%. Huckelberry says it's likely [that] all state-shared revenues will be down about $11 million, so he's asking all departments to prepare for a 5% cut if economic conditions continue to deteriorate."
The Town has not furloughed or laid off any employees
Does Oro Valley think things will be different here? In a recent communication from the Town Manager, I was informed that the Town has not furloughed or laid off any employees despite the closure of the Community Center and the Overlook Restaurant.
The Town’s Pandemic Leave Policy explains employee entitlements, however, unlike businesses small and large, there is NO money coming to the Town of Oro Valley from the Federal government. This is an unfunded mandate. Additionally, there is nothing in the Town’s Pandemic Leave Policy that precludes reducing the workforce.
We are just starting to get a look at the February financials in mid-April. However, this financial report will not reflect the economic conditions that we have experienced since February. We won’t see the April financials until June.
Due to the pandemic and resulting economic downturn, sales tax, bed tax, HURF revenues, and State shared revenues are all going to be well below forecast. Therefore, we have no alternative but to reduce our expenditures.
The Town Manager is in charge of the Town’s staffing. As such, she is in a difficult position. On one hand, she needs her staff to know that she is there for them and will do all she can for them. On the other hand, she is responsible to the Council and must show fiscal responsibility, especially during times like this. That is why the Council must take the decision out of her hands and do what is right for the Town of Oro Valley.
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Mike 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, 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.