Sea Change: Efficiency Will Be A Factor In Determining 2027 Budget

First step toward a program-level efficiency review
The Town of Oro Valley Council has taken a first step in ensuring that town operations are efficient. Last week, the council unanimously approved a measure directing staff to return with a defined scope of work and timeline to review town programs, including their costs, revenues, and participation levels, as part of the upcoming budget process.

Barrett, Nicholson, and Murphy: An efficiency review is needed
Vice Mayor Barrett said the item is“a follow-along on our recent tax conversation” and that she wanted to discuss “what are some methods or ways that we could kind of look for some of those efficiency opportunities as we go through some of this budget process.” She said the goal was not “to necessarily reduce the service levels that our community experiences, but there may be more efficient opportunities to provide that same level of service.” Council Member

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Nicholson described efficiency as “like miles per gallon on your truck… like miles per dollar,” and added, “We don’t have an infinite money supply… It’s the taxpayer’s money.” Council Member Murphy tied the issue to her earlier vote on taxes, stating, “That’s why I didn’t vote for the taxes is because we had not had an independent operational efficiency audit, to my knowledge, ever.”

Third-party audit discussed, but staff outlined an internal approach
The council initially discussed whether a third party should be hired to review operations. Town Manager Jeff Wilkins said an outside effort could cost “over $100,000… It could be 150, even,” depending on scope. He said staff could instead compile key information internally, including “a list of the programs, the cost of the program, the revenue that that program may bring, the users that might be overall users as well as unique users.” 

Staff push back: They are already "cutting costs"

This assignment will be challenging for staff for four reasons. First, it comes at a time when departments are building their budgets under an existing process and timeline. That process that does not include a challenge to town programs and activities.  Second, According to Wilkins, pulling this together requires coordination across departments during the budget process. Apparently, this coordination is not part of the normal budget process. Third, staff thinks that town operations are already efficient, so they likely view this request as a waste of time. Fourth, there is a difference between town staff and council members of what the term “efficiency" means.  Staff defines efficiency as cutting costs…

But "cost cutting" is not "efficiency".. It is the result of "efficiency"

Efficiency comes from reexamining what needs to be done and eliminating what does not. It means thinking differently than town staff's approach of incremental spending cuts and staged hiring freezes (see panel above right). It means reassessing priorities, identifying the activities that deliver the greatest public value, and concentrating resources there. It means streamlining processes. It means questioning all activities to insure that they serve a necessary purpose. It means challenging organization structure and layers of management. It means using tools, including artificial intelligence, to replace routine, lower-level work such as basic coding, data entry, basic document review, financial reconciliations, permit intake screening, and draft communications.

What this could lead to in the 2027 budget cycle
Last week's council conversation suggests that the coming 2026-27 budget discussions may focus on program value in addition to program cost. Council members said they want clearer information about what the town does, what it costs, and who it serves. If that information is developed in a usable way, it could shape broader discussions about program priorities, including whether some programs should be modified, expanded, reduced, or discontinued.

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