"A conservative projection"
Oro Valley Town Manager Mary Jacobs is recommending capital spending in 2023 of $56.1 million. Jacobs says that this is a conservative projection of spending. Two programs dominate this spending: Almost half is for Parks and Recreation facilities; while one quarter is for water facilities.(See panel below, right)Parks and Recreation: $26.1 Million
Spending for Oro Valley Parks and Recreation facilities is the centerpiece of this year’s capital budget portion of the Town Manager's Recommended Budget ("TMRB").
$10 million is budgeted for spending on the buildout of Naranja Park.
We’ve noted in a previous article that the specifics of exactly what amenities are going to be built at the park have yet to be defined. The town is moving forward with grading the remaining undeveloped portions of the land and installing needed infrastructure.
Spending on municipal golf is almost $7.8 million.
Water Department: $15.1 Million
There are two components to the Water Department capital funding amount. Approximately one third is planned to be spent to maintain the existing water system. This includes a host of projects. The remainder is a continuation of a project to bring water directly from one of the Avra Valley reservoirs that hold CAP water to Oro Valley. (Currently, Oro Valley gets CAP water through connection to the City of Tucson water system.) The project is called NWRRDS. It is a project in which the town is partnering with the Town of Marana and Metro Water. We think that some of the cost included in the budget are partially reimbursed from those entities. NWRRDS spending is planned at $10.4 million this year.
Public Works: $8.0 Million
The town's Public Works Department takes care of the roads on which we travel, the facilities the town uses, the vehicles it uses, and the town’s public transportation interface. There are seventeen public works projects planned. The largest proposed projects include pavement preservation ($1.9m), two road repaving projects, ($1.2m) and vehicle replacement ($.5m).
"Costs for capital projects have been projected conservatively and are higher than predicted just a year ago. The Town’s experience, as well as that of our regional and state counterparts, is that availability of contractors and subcontractors is unpredictable and continues to significantly impact the cost of capital investments. The Recommended Budget includes additional project contingency funds budgeted in the Capital Fund, Water Utility Fund, and Community Center Fund to ensure capital projects can still move forward if the Town’s updated estimates do not align with future market conditions." (Source: TMRB 2023, P.iii).
Spending on municipal golf is almost $7.8 million.
That includes spending of $7 million on golf course irrigation for the town’s two 18-hole golf courses. There is also money planned for golf path repaving, for turf replacement, and for equipment replacement. $142,000 is set planned for reconfiguring the Pusch Ridge facility parking and pedestrian approach to meet ADA code requirements, resurfacing of roof and replacing roof drains.
From what we can tell, no money is targeted for improving the Pusch Ridge golf course. As we noted recently, the group Friends of Pusch Ridge believe that more needs to be done at their course.
The TMRB calls for spending approximately $1.9 million on the Community Center
The TMRB calls for spending approximately $1.9 million on the Community Center
Almost 80% of this relates to mobility access. That has two components. One is spending $750,000 on “Various accessibility modifications and improvements to the Community Center.” The other is a "placeholder" for an elevator that also costs $750,000. We call it a "placeholder" because it has been included in the past three town capital budgets.
Water Department: $15.1 Million
There are two components to the Water Department capital funding amount. Approximately one third is planned to be spent to maintain the existing water system. This includes a host of projects. The remainder is a continuation of a project to bring water directly from one of the Avra Valley reservoirs that hold CAP water to Oro Valley. (Currently, Oro Valley gets CAP water through connection to the City of Tucson water system.) The project is called NWRRDS. It is a project in which the town is partnering with the Town of Marana and Metro Water. We think that some of the cost included in the budget are partially reimbursed from those entities. NWRRDS spending is planned at $10.4 million this year.
Public Works: $8.0 Million
The town's Public Works Department takes care of the roads on which we travel, the facilities the town uses, the vehicles it uses, and the town’s public transportation interface. There are seventeen public works projects planned. The largest proposed projects include pavement preservation ($1.9m), two road repaving projects, ($1.2m) and vehicle replacement ($.5m).
General Administration: $5.8 Million
Approximately 60% of TMRB general administrative capital spending is a project that will establish a fiber optic network for expanded broadband services. This will provide a faster internet network. The town believes that having such is"... critical to Oro Valley's ability to attract, grow and retain primary employers and expand job opportunities. (TMRB, p 114). Most of this project is funded by a grant.
Police: $1.2Million
We identified two capital projects that relate to the police department. One is to replace police vehicles ($1.1m). The other is for a traffic camera video recording system.
Whats' Missing?
The TMRB's schedule of capital projects includes spending for all projects anticipated over the next ten years. Two items which LOVE has been following are not included in this schedule. One is funding for a new police facility. According to our discussion with Chief Riley, one will be needed within five or six years. The other is funding for bringing reclaimed water to the southern section of the town. Such would save millions of gallons of drinking water by converting the Pusch Ridge Golf Course, Kreigh Park, and CDO High School to its use.
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About The TMRB: "Capital spending conservatively projected""Costs for capital projects have been projected conservatively and are higher than predicted just a year ago. The Town’s experience, as well as that of our regional and state counterparts, is that availability of contractors and subcontractors is unpredictable and continues to significantly impact the cost of capital investments. The Recommended Budget includes additional project contingency funds budgeted in the Capital Fund, Water Utility Fund, and Community Center Fund to ensure capital projects can still move forward if the Town’s updated estimates do not align with future market conditions." (Source: TMRB 2023, P.iii).
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About the numbers
The numbers we have presented by program are based on the detail information by department presented in the TMRB. This detail does not tie to the summary presented by the town manager. The summary for capital spending per the town manager is $59.5 million. The detail provided by program is $56.1 million. We have not identified why there is this difference. However, regardless of the reason, the data we have presented in accurate at the program level.
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