Town Manager Jacobs Unveils $159.2 Million Budget Proposed For Fiscal 2023

The process begins 
"It is my privilege to present the Town of Oro Valley balanced budget for Fiscal Year (FY) 2022/2023. This budget totals $159.2 million." Thus begins the process of developing the the Town of Oro Valley's budget for 2023.  That budget takes effect July 1. The budget includes spending for every service the town provides to the community.

Recommended capital spending record high
The town manager proposes spending more than $56 million on capital items this year. There are eighty-three projects. These projects include spending $10m on the Naranja Park buildout and almost $7m in the replacement of the golf course irrigation on the community center two 18 hole golf courses.

Town operations to cost $90.4 million
Operations includes public safety ($19.1m), water($28.5m), parks and recreation ($15.2m) and public works ($13.0m).  Spending on town operations has grown over the years, indicative of the expanded scope of town services. Oro Valley requires more infrastructure to serve the substantial population growth that has happened in the community. 

Staffing up to 416 personnel

The town manager is requesting increased staffing in virtually all areas to a total of 416 employees. This is up from 400 employees in last year's budget.  In addition, the budget includes more than a $1.3 million in pay increases anticipated based on a competitive wage study that the town is now undertaking. That study will be presented to council in a month or so.

Inflation a major budget factor
According to Jacobs, inflation plays an important role in her recommended budget. On the revenue side, sales tax revenues are inflated because the cost of the things we buy are inflated.  "Sales taxes for FY 22/23 are 19 percent higher than the current fiscal year budget, largely reflecting the results inflation is having on local purchases." Inflation is running at about this same rate.

On the expense side: "inflation, supply chain delays, and the impact of overall supply/demand issues have been reflected in the Recommended Budget... Departmental budgets include higher-than-usual annual increases in areas such as gasoline, public safety equipment, field supplies, technology, professional services and more across the organization."

Key dates for budget review and approval
There is plenty of opportunity for residents to learn about and opine on this proposed budget.

• May 11 at 5 p.m. – Council Budget Study Session #1 
• May 12 at 5 p.m. – Council Budget Study Session #2 
• June 1 at 6 p.m. – Public Hearing and tentative budget adoption 
• June 15 at 6 p.m. – Public Hearing and final budget adoption

At some point, we suspect, the town's Budget and Finance Commission will review and opine on the budget. However, that timing has not been published.

Upcoming LOVE articles on proposed budget

There is much to the Town Manager's recommendations. Wednesday we will discuss spending on town operations. Next Monday we will discuss spending on capital projects.

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