Council considers setting 2026 spending limit at $147.2 million
The Town Manager has recommended a spending limit of $147.2 million for fiscal year 2026. The Town Council met with staff last night to discuss this recommendation. We will report on the details of that discussion in a future article.
This spending limit is significant because it represents the legal maximum amount the Council can authorize for the fiscal year. Approximately $142 million is associated with detailed, line-item budgets for departments, programs, and capital projects. The $5.1 million difference between the $147.2 million total spending limit and the $142.1 million in detailed budget line items reflects reconciliation adjustments, including internal service fund allocations and the exclusion of non-cash accounting items such as depreciation and amortization.
Capital and operational breakdown
Recommended capital improvement projects, which we’ve covered in earlier articles, total approximately $46 million. Excluding those, the remaining $96.4 million in proposed spending goes toward operating the Town’s core services. Of that amount, $20.5 million is for operating the water utility, leaving about $75.9 million for all other Town services.
The general fund’s essential role
The Town’s General Fund, which supports most day-to-day services, is budgeted at nearly $53.9 million for the year. This fund covers critical functions like police protection, road maintenance, legal services, parks and recreation, and administrative support. The Police Department accounts for the largest share—$20.5 million—while Public Works and Parks and Recreation are budgeted at $6.6 million and $5 million, respectively. Every department, from Finance to the Town Clerk’s Office, receives a share.
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More than two-thirds of General Fund spending goes toward salaries and benefits for Town employees—the people who maintain roads, respond to emergencies, run programs, and support residents in countless ways. Town leadership describes this budget as measured and cautious, balancing service continuity with the reality of slower revenue growth.
Where golf and community center are tracked
The Community Center Fund is budgeted at $11 million and covers the operating costs of Oro Valley’s golf courses and recreation facilities. These costs—staffing, utilities, course maintenance—are partially supported by golf memberships and user fees. Major Capital improvements are budgeted separately and paid from another fund. d Residents who use the courses, fitness areas, and pools help support this part of the budget through the fees they pay.
The rest of the budget
About $10.5 million in spending falls outside the General Fund, Community Center Fund, and water utilities. These dollars support stormwater management, street maintenance, grant programs, and debt service. Though smaller in scale, these funds are vital to maintaining infrastructure and fulfilling legal and contractual obligations. Most are supported by dedicated revenue sources such as highway user taxes, grants, and impact fees.
Contingency across the board
Every major fund in the Town’s budget includes a contingency line item to cover unforeseen expenses. These contingency amounts total approximately $7.3 million and are fully appropriated within the fund-level budgets. They are not tied to specific departments or uses and cannot be spent without Council authorization. This gives the Town flexibility to respond to emergencies or economic shifts without breaching its legal spending limit.
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Where golf and community center are tracked
The Community Center Fund is budgeted at $11 million and covers the operating costs of Oro Valley’s golf courses and recreation facilities. These costs—staffing, utilities, course maintenance—are partially supported by golf memberships and user fees. Major Capital improvements are budgeted separately and paid from another fund. d Residents who use the courses, fitness areas, and pools help support this part of the budget through the fees they pay.
The rest of the budget
About $10.5 million in spending falls outside the General Fund, Community Center Fund, and water utilities. These dollars support stormwater management, street maintenance, grant programs, and debt service. Though smaller in scale, these funds are vital to maintaining infrastructure and fulfilling legal and contractual obligations. Most are supported by dedicated revenue sources such as highway user taxes, grants, and impact fees.
Contingency across the board
Every major fund in the Town’s budget includes a contingency line item to cover unforeseen expenses. These contingency amounts total approximately $7.3 million and are fully appropriated within the fund-level budgets. They are not tied to specific departments or uses and cannot be spent without Council authorization. This gives the Town flexibility to respond to emergencies or economic shifts without breaching its legal spending limit.
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