2023 Town Manager Recommended Budget Reduced to $148 million... Hearing Tonight

Town Public  Hearings Tonight

Tonight, Town Manager Mary Jacobs will ask the Oro Valley Town Council to approve a spending limitation of $147.7 million for fiscal 2023. This request is part of the first public hearing that the town is holding on the 2023 Town Manager Recommended Budget (“TMRB”). 

Requested amount is less than previously reported

The amount being requested is about $11.5 million less than was submitted in the TMRB on which we have reported.

Reduction in the request is the net result of changes in the funding requested of three items

• The General Fund request was reduced by about $600,000. That reduction is the net result of two items: An estimated increase of $2.7 million in state shared income tax revenue; and an increase in recommended personnel spending. The town manager is adding funds to provide for additional capacity for implementing the classification and compensation study currently being performed by an outside firm. 
• One of the largest recommended capital expenditures this year was in the water resources fund. This request was reduced by $10.3 million due to adjustments in the spending on partnered portions of the Northwest recovery project (NWRRDS). That is a project the town is doing in cooperation with the Town of Marana and with Metro Water to bring water more directly from a CAP Reservoir in Avra Valley to Oro Valley.
• The Town Manager  reduced her requested capital fund monies by $3 million. This reflects two items. One is a shift in the source of the funding; the other is changes in the estimated cost of some road projects.  

Spending requested for town operations remains the same

The operating portion of the TMRB (with the exception of the personnel cost spending increase noted previously) remain the same. So let’s take a look at those personnel costs. 

TMRB request is for staff to grow to 414

This year’s TMRB includes 414 personnel. That is an increase of nine full-time and four part-time positions. TMRB personnel spending is $89.3 million. 

 
Two departments are 52% of total personnel cost and 43% of all personnel (panel right)

Police

The Police Department is asking for funding of 139 positions. This adds two police officers and a civilians public information officer. An additional telecommunications position is also sought. The addition of the public information officer frees a sergeant position for field work. According to Oro Valley Police Chief Kara Riley, these staff position additions fulfill all staffing needs for 2023.

 

Water

The water utility has one-third of the town's personnel spending.  The utility currently has forty full-time and 1 part-time position. The department has no TMRB request for added staff.   

Public Works and Parks and Recreation

Public Works and Parks and Recreation are seeking to add four positions each. Public Works is responsible for building all the planned parks facilities. That will be a huge focus of their activity this year. The Parks Department itself wants to add staff at the aquatic center. The TMRB also seeks to add one Park monitor to help cover hours in special events of town parks.

 
Big raises due?
The town is undertaking a competitive wage study. As previously reported and as noted above, the result of the wage study will have a major impact on personnel cost. “The recommended budget includes $1.3 million in the general fund set aside for implementing the final pay plan which is yet to be brought to council. [The TMRB] also includes funds to continue normal step increases for all eligible town employees.”

 
According to Town Manager Jacobs, Oro Valley has fared better than other organizations when it comes to employee turnover and resignations.

Also tonight...Water rate hike!

Tonight's town council agenda includes a public hearing on the proposed 2022-23 water rate price increase. The council will likely approve the rate hike once the public hearing is closed.