Unanimous approval of cap
Last Wednesday, the The Oro Valley Town Council unanimously approved a spending limit of $105 million for 2020-21. The council will meet on July 1 to discuss the budget in detail. They will be asked to approve the final budget at the July 15 meeting.
$11.4 Million not allocated to spending
2020-21 spending is budgeted to be less than the $105 million cap. There is $11.4 Million in "reserve". It is not allocated for spending in this budget. These are contingency reserves that could be used if there is a revenue shortfall; or council may decide to increase the line item budget when it meets on July 1.
The ending balance of the General Fund, the fund that pays for town operations, is budgeted to be $17.2 million. This is 41.4% of budgeted expenditures. The town has historically set 25% of expenditures as a minimum ending general fund balance.
CAREs Act money boosts limit
The approved expenditure level is $4.5 million more than the amount submitted by Town Manager Jacobs in May. That recommended budget had a spending cap of $100.9 Million.
The $4.5 million addition comes from two sources: One is the pending receipt of $5.3 million in Cares Act funding from the State.
The other is from savings and planned added revenue in town's golf operation. Billy Casper Golf has been selected as the course operator. Their proposal is to decrease golf operating and maintenance cost by $435,400 and to increase revenues by $300,300. The total financial impact is almost $736,000.
The spending limit can be changed by an emergency declaration by council. This would result in a supplemental budget.