The Watchdog Report: February 2020, The Best Yet. However…

The financials are in for February 2020 and they are the best yet. The Community Center Fund (CCF), with both the contracted (Troon) and Town-sponsored facilities actually made a profit of $2,035. The balance of the CCF through Feb. 2020 is $332,266 which is $34,858 above the forecast.

The total membership of the golf “club” was 262 which was unchanged from January but was 22 more than in February 2019. The total number of non-member rounds was 4,673 which totaled 1,256 more than the same time last year.

The Overlook was budgeted to lose $1,416 in February but actual losses were $5,034. However, this is still much better than last February when they lost $10,871. However, the total Overlook losses so far this fiscal year (July 2019 through February 2020) were $89,185 which is $17,400 more than the forecasted amount of $71,785. The Overlook is currently closed, and, hopefully, will not re-open. The Town is forecasting a CCF surplus over $400,000. Why don’t we use that money to make the Community Center ADA compliant? In fact, of the budgeted $106,500 set aside for capital outlay, only $26,697 has been spent. With the building closed and nobody walking around, this would be a great time to make the facility ADA compliant.

Why do I say, however?
With all this great news, why do I use the word “however” in the title? It’s not because I see the glass as half empty. I say “however” because of the current pandemic.

As of February 2020 ,your sales tax subsidy to the CCF is 3.3% above forecast ($1,728,698). However, according to the recent Financial Report to the Council:

“Due to the impacts from Covid-19, current year end estimates have been revised down $2.3 million from January’s estimate.”

The report goes on to say:

“It is important to note that due to the timing of sales taxes received, forecasted declines may not be seen until as late as May 2020.”

As previously stated in my April 20th Guest View, “Who’s running the Town?” a communication I received from the Town on 7/1/19, stated that there were 13.18 full-time equivalent employees (FTE) at the Overlook (which is now closed). The entire Community Center (which is now closed) employed 73.73 FTE’s. Despite these closures, the town has not furloughed or laid off any employees.

The Town Manager advises us about a future with reduced revenues. Due to the pandemic, Sales Tax, Bed Tax, State Shared Revenues are all going to be less than forecasted in FY 2019/20. It’s time to look at our expenditures and start reducing them. One of the reasons that we elected the “new Council” is because we were looking for fiscal responsibility.
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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. He was 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.