Bits and Pieces

OV SafeSteps program wins national award in communications and marketing

ORO VALLEY, Ariz. (Sept. 19, 2022) – The Town of Oro Valley is pleased to announce that the OV SafeSteps program won first place in the 2022 City-County Communications & Marketing Association’s (3CMA) Savvy Award category of Communications and Marketing Tools: Printed Publications – COVID PR. The award was presented on September 7 at the 3CMA Annual Conference in Portland, Oregon. (Source: Town of Oro Valley Press Release)

Register now for the Fall 2022 Community Academy 

ORO VALLEY, Ariz. (Sept. 21, 2022) – Would you like to know more about local government and the Oro Valley community? Then we invite you to register for the Town of Oro Valley’s Fall 2022 Community Academy. For 25 years, the Town has been hosting this free, informative series to help residents understand more about town governance, finances, development, zoning, parks, roadways and more. Please register by October 1 to reserve your spot. (Source: Town of Oro Valley Press Release)

Oro Valley shows outstanding financial results for fiscal 2022

Financial results for fiscal 2022, which ended on June 30, are being finalized. According to Assistant Finance Director Wendy Gomez, results are outstanding. General Fund Revenues [panel right],the town’s primary operating fund, exceeded budget by 18%, led by local sales tax revenues which were 31% over budget.  State shared revenues were 11% over budget.

General Funding spending was 5% under budget. This was caused by a shift in planned spending for Westward Look improvements, to this fiscal year; and a savings from not having to make a principal payment on the pension obligation bonds

Oro Valley Awarded $3.5 million for multi-use path

The Pima County Association of Governments (“PAG”) awarded the Town of Oro Valley $3.5 million for the construction of the multi-use path along Naranja, from First Avenue to La Canada. The award was based on a town submission that received quick turnaround, according to Town Manager Mary Jacobs. These are federal funds. (Source: Manager Report To Council, Town of Oro Valley Council meeting, 9-21-22)

Fall Parks and Recreation Program Guide is available on line

"This seasonal guide includes details on Oro Valley’s 2022 fall break camp options (registration now open), as well as upcoming community events, activities, facility information and more." View the program online here or download a pdf version here.

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Bits and Pieces

The Town of Oro Valley lives well while many residents are hurting
Oro Valley Town Finance Director Gephart reported to the Town Council on Wednesday that just about every source of income to the General Fund are well ahead of budget as of April. 

Things look great. 

In fact, General Fund revenues are estimated by year end to be $6.3 million ahead of budget. That’s 13% better than budget. At the same time, General Fund expenditures are estimated to be $2.7 million less than budget. That’s 4% less than budgeted spending. Major factors in play are that inflation is driving the sales tax revenue increase of 23% over budget. The spending underage is the result of the town’s accounting for debt service on pension obligations. 

Given the town’s strong financial position, a reduction in fees residents pay for most of the town’s recreation facilities would be in order; given the impact that current historic inflation is having on reducing the buying power of the many senior residents… most of whom are on fixed income. This council has failed to even consider reducing taxes and fees residents pay!

Scrooge July 4… No fireworks! Laser Show at Kreigh Park instead
The Town of Oro Valley will celebrate July 4 at Kreigh Park with a Laser Show. There will be not be fireworks because of “supply chain issues,” according to Town Manager Mary Jacobs.  The event will start at 6pm. There will be a “Tom Petty Cover Band”, plenty of food trucks and lots of things to do. “Bring your chairs and blankets and enjoy a 4th of July in person.”  (Source: Town Manager Oral “Report To Council’, 6/15/22)

We understand that other communities will have fireworks. Guess they did not have any “supply chain” issues!

OVCN residents continue to speak out
Those who will be most impacted by the major sports facilities proposal of the Church of the Nazarene (“OVCN”) continue to address the town council. Speaking at this past Wednesday’s Meeting, they unanimously oppose this proposal for a variety of reasons. Follow LOVE’s exclusive coverage of this, “Do Unto Others”. 

Council declares Community Center Fund “Fully Paid”
In 2015, the Oro Valley Town Council, led by then Mayor Hiremath, voted to borrow $1.2 million from the General Fund to start the Community Center Fund. That money was to be repaid in annual installments of $120,000 per year for ten years. The present town council, led by now Mayor Winfield, set a precedent at Wednesday's council meeting meeting.  On a 6-1 vote (Councilmember Bohen dissenting), the council voted to rescind that annual repayment by declaring the debt “fully paid”.  This is precedent setting.  In essence, the Council has reneged on a commitment to pay back a debt that has been incurred by the town.

Monsoon ready? (Fill you own) Free sandbags available for Oro Valley residents
“ORO VALLEY, Ariz. (June 15, 2022) – June 15 marks the official start of monsoon season in Southern Arizona, and the Town of Oro Valley wants to make sure you are monsoon ready! Beginning today, June 15, the Town will provide free sandbags to residents who may need to protect areas of their homes from storm runoff during monsoons.

Sandbags can be picked up now through the duration of the 2022 monsoon (or while supplies last). Due to a limited number of supplies, only Town of Oro Valley residents are eligible. Sandbags are self-service; the Town will provide the bags and sand, but you will need to bring your own shovel and load your own sand. There is a limit of 10 sandbags per vehicle.

Pickup Location
*Naranja Park (810 W. Naranja Drive) Follow the signs to the area known as the “Christmas tree recycling lot,” just north of the archery range (see Pickup Location Map below). “ (Source: Oro Valley Press Release)

Lane Restrictions on Naranja: June 21 to July 1
“ORO VALLEY, Ariz. (June 16, 2022) – The Oro Valley Water Utility will be replacing a water main underneath Naranja Drive starting Tuesday, June 21, causing lane restrictions that will impact both lanes of travel and potential traffic delays until Friday, July 1.

The water main replacement is underneath the eastbound lanes of Naranja Drive, between Monterra Vista Drive and Desert Whisper Way. Traffic will be shifted to the westbound lanes on Naranja Drive, with one lane of traffic each way. Speed will be reduced to 25 mph in the construction zone. For the safety of workers and other drivers, please obey construction message boards, traffic signage and signals. Drivers are encouraged to find alternative routes of travel to avoid delays. “(Source: Oro Valley Press Release)

As 2023 Budget Is Being Developed, Here's What To Look For (Part 2)

Last week, we presented a view of overall town budgeted spending for fiscal 2022 (which ends in June) and our quick thoughts on why the budget will likely be bigger for fiscal 2023. We identified three key components that comprise town operations. Today, we look at one of the three keep element: Spending on Town Operations

It costs $91 million to operate the town in 2022
The total cost of operating the town in 2022 in budgeted at $91million. This includes has fourteen operating budget programs. Two of these, the Police Department and the Water Utility, are essential services. The rest are discretionary services, though some are less discretionary than others.

Essential programs-Police and Water- $32.8 million
The Police Department and the Water Utility budgets combine for 36% of the town operating budget. These two departments employ 44% of the town's 400 employees. They are both "life preserving" programs. 

From a financial perspective, however, they are quite different.  The water department gets its funding directly from customers. The Police Department gets its funding from the General Fund, which is the primary fund that your sales taxes and state shared revenues fund go into.

The two departments also differ in the level of scrutiny they get from the council during the budget process. The water utility gets no look at all. On the other hand, the funding for the police department has been a "political football" in past years, with some council members trying to paint their council opposites as "anti-cop." 

One final difference. The Police Chief and the Department report to Town Council. The Water Utility reports to the Town Manager. Consequently, the Town Council has primary responsibility for the police department budget.

Non essential programs: $58.3 million
We've classified everything else the town does as "non essential." That doesn't mean that the programs are not important. It means that these programs can be more easily scaled and adjusted because without impact on life. All of these departments, though, are important to the community. Two are public works, which maintains the town's road's and oversees public building projects (such as the Naranja Park expansion) and Parks and Recreations. We expect the Parks and Recreation budget to increase substantially because the program is rapidly expanding.

One large pool of spending is classified as "General Administration." The amount is about $20m. It is a collection of items that are discretionary. Half of budget dollars was a one-time payment to reduce the underfunding of the police pension. Much of the rest is to fund town operations and maintenance. The rest is spending on discretionary items, such as contributions to Visit Tucson.

2022-23 Town Manager Recommended Budget unveiled next week
The FY 2022/23 Town Manager Recommended Budget is in final development and will be distributed to the Town Council in the days following the Easter weekend.  It will also be posted to the Town’s website. Budget study sessions are scheduled for May 11 and 12 at 5 p.m., with tentative adoption on June 1 and final adoption on June 15. (Source: Town Manager's April "Executive Report To Council")

As 2023 Budget Is Being Developed, Here's What To Look For (Part 1)

2023 Budget underway
The Town of Oro Valley is preparing the 2022-23 budget. The process started in February with a strategic planning session with town council. The process ends in June when the town council approves the budget. In between, the town manager will submit a recommended budget. There will also be opportunities for residents to opine on the proposed budget

Record setting spending expected
We suspect that the 2022-23 budget will be "record setting" in terms of spending for two reasons:

• The town will be spending some of the $25 Million in Parks Bond money borrowed last fall.
  Tonight, Town Council will be briefed on the status of that spending. The timing of that spending will have a one-time impact on increasing the capital projects spending for the next two years.
• Spending on town operations will increase.
  This is because of added spending to maintain the existing and the new parks the town will operate. This includes the added cost of maintaining the "to be named" Vistoso Nature Preserve. In addition, the town has engaged a consultant to do a "Comparative Wage and Beneifits Study." This study will be completed in time for the results to be included in the recommended budget. The town conducted a similar study in 2014 that resulted in large increases in wages and extended benefits for town staff.  Add to this the fact that extreme inflation has ballooned the cost of everything.

Total pending is $153.7 million this year
According to a town created chart, the budget for this year, which ends June 30, is $163 million. The town published budget is $153.7 million. We think that the difference relates to spending on capital projects ($5.1 million less) and contingency reserves ($5 million less).

Spending on town operations is $91.1 million this year
Town spending has three major components. Each one has very different characteristics in terms of the level of control a council can have over the spending:

• Spending to pay the cost and retirement of debt ("Debt Service") incurred by the town is fixed. The debt must be paid or retired per borrowing terms. The only control the council has on this spending is their authorization to incur the debt. This year, the council approved more than $50million in debt issuance. The cost of debt service will likely increase in 2022-23.
• Spending to pay for capital projects is almost entirely discretionary.  For example, this year the current council authorized millions in spending on the town's parks facilities.
• Spending for town operations is primarily under the control of the town manager. OroValley Town Manger Mary Jacobs has said that it is the town council's job to set policy. It is Jacobs' job to implement that policy. The town operations budget is town manager's implementation of that policy. 

We will continue our discussion of the budget in future articles. Next up: A look at spending on town operations.

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Bits and Pieces

Neighborhood meetings to return to in-person

The town will be returning to in-person neighborhood meetings. These are meetings that are held in relation to vetting proposed land use or zoning changes. These meetings are an important first step in vetting these proposed changes. There will also be a capability to join the meeting remotely.  

The return to in-person was proposed by Vice Mayor Barrett at Wednesday's Oro Valley Town Council meeting. Her motion was approved unanimously. 

Barrett asserted that the return to in-person will substantially improve the quality of the dialogue between residents, the applicant, and town staff.

Spring 2022 Parks and Recreation Program Guide now available
ORO VALLEY, Ariz. (Feb. 28, 2022) –– The Town of Oro Valley is pleased to announce that the Spring 2022 Parks and Recreation Program Guide is now available online.

 
This seasonal guide includes details on Oro Valley’s 2022 spring break camp options (registration now open), as well as upcoming community events, volunteer opportunities, facility information and more.

 
The Program Guide was first published on February 23 as the cover of the Explorer Newspaper, and it’s currently available on the Town’s website. Click here to view.

(Source: Town of Oro Valley Press Release)

Oro Valley Popular Annual Financial Report is available

“For the 14th year in a row, the Government Finance Officers Association (GFOA) has awarded the Town of Oro Valley the Distinguished Budget Presentation Award for its July 1, 2021, budget. The award represents a significant achievement by the Town of Oro Valley, reflecting the commitment of Town Council and staff to meeting the highest principles of governmental budgeting.” (Source)

In addition, the Popular Annual Financial Report  report (“PAFR”) for 2021 is now available. The PAFR is not the official financial report. Rather, it is a report for the rest of us; especially for those of us who don’t have a financial background and don’t want to spend the hours it takes to pour through the schedules included in the official report. 

“The PAFR includes a summary of accomplishments, net assets, activities, revenues, expenditures, debt and financial ratings and a snapshot of historical trends in these areas."

Council appoints new members to some commissions

This past Wednesday the town council appointed members to the following boards and commissions:

Water Utility Commission (WUC) 

Alan Forrest for a partial term expiring December 31, 2023 

Patricia Olson for a first term expiring December 31, 2024 

Budget and Finance Commission (BFC)

John Fortunato for a first term expiring December 31, 2023 

Parks and Recreation Advisory Board (PRAB)

Cheryl Horvath for a first term expiring December 31, 2023

Joanne Moothart for a first term expiring December 31, 2023

Planning and Zoning Commission (PZC)

Joe Nichols for a partial term expiring December 31, 2022

Congratulations to all.

“Know Your Town’s Budget”

 

(Source: Town of Oro Valley)

Council Targets Nagging Problems In 2021-22 Record Budget

2021-22 budget cap: $162 Million

Oro Valley will roar into the post pandemic era. Last week, the town council unanimously approved the largest budget cap it the town’s history: $162 Million.

The approved cap is intended to be used to fix nagging problems

An underfunded public safety plan and long needed investment in Naranja Park; Golf Course Irrigation; the town’s trails system are the drivers of the spending.

The council has seized the opportunity to fix these problems now because the town has received free federal money, seen an unexpected surge in sales tax revenues and fees, and has the opportunity to take advantage of cheap interest borrowing rates.

Town Manager’s requested budget: $107.5 million 

The Town Manager’s recommended budget starts the formal budget process. We reported our build up of that budget in April. The town manager submitted a budget of $107.4 million. She was instructed by council to ad $27 million for the pay down of the town’s underfunded public safety pension (“PSPRS”).

Town Council problem fix: $54 million

PSPRS: $27 million 

The budget cap includes $27 million in spending that the council directed the town manager to include in the budget. That amount is to be used to pay-down the town’s underfunded PSPRS.

Parks: $25 million 

Since that budget’s submission, the council directed the town manager to add spending of about $24 million to pay for parks. Half of that was directed by council to be spent on Naranja Park. (Our report on the town $42 million in bonds to cover the PSPRS pay down and parks investment.) 

Annexation of Westward Look: $700,000 

The Westward Look annexation, also a council decision, caused the addition of about $700,000 to the budget. This amount is needed for the town to complete promised improvements and for added funding of $160,000 for “Visit Tucson”. 

The town is required to designate a percentage of its bed tax revenues for tourism attraction. According to Town Manager Mary Jacobs: “We currently utilize Visit Tucson as our primary marketing group.” Visit Tucson had been receiving about 50% of Westward Look’s bed taxes through an agreement with Pima County. The town manager’s budget had included $250,000 for Visit Tucson. So, the total in the budget for Visit Tucson is $410,000

Former Vistoso Golf Course: $1,000,000 

Another council decision will be its role in possible grant funding of $1 million if The Conservation Fund is successful in purchasing the former Vistoso Golf Course from Romspen LLC; and then gifting a permanent conservation easement of the property to the town.

The council will conduct a second hearing on the budget at its June 14 meeting.

Jacobs Unveils $134.5 Million Budget

$134 Million in total spending
Town manager Mary Jacobs introduced her “2021-22 Town Manager Recommended Budget” to the town’s budget and finance commission last week. The budget calls for spending of $134.5 million. $27 million of this is for a non-recurring special payment to the State’s Public Safety Pension System (“PSPRS”) to pay down the town’s unfunded pension obligation. She was directed by council to put this item in the budget.

Will be impacted by council decisions on items in May
According to Oro Valley Finance Director David Gebhart, the budget is tentative because the council is deliberating on key issues that may affect the budget. One of these was the annexation of the Westward Look Resort. This happened last week, after the tentative budget was prepared. Other items include the impact of the possible inclusion of the former Vistoso Golf Course land in the town’s parks system; the impact of the possible approval of the Parks and Recreation Study that calls for almost $28 million in spending; and the possible broadening of use of the half-percent golf/community center sales tax. 

Budget includes federal “bail out” funds  

One item included in the budget is approximately $5 million the town will be receiving next year from a recently approved federal “bail out” program. This allows the town to ‘free up’ funds for other uses. For example, the federal money can be used to pay for town operations, freeing the same amount for use in paying a portion of the PSPRS payment. 

 

Operating spending of $76 million
Expenditures for town operations are $75.5 million. This is $8 million more than projected spending this year. 79% of this is from four areas: The Water, Police, and Public Works departments; and the Community Center. The Water Department generates revenue to cover its cost. The Community Center generates revenue that covers some of its costs.

398 full time equivalent employees

Four departments house 70% of all town employees: Police Department, Public Works, Parks (not including the golf course/community center) and the Water Department. Total number of full time equivalent positions are about the same as this year. 

Capital Spending: $22.8 Million
Recommended capital spending is $22.8 M. This is part of a council plan to spend $92.4m over the next 10 years. Major projects include water’s northwest water recovery program ($4.4m), golf course irrigation ($2.7m), the town’s pavement preservation program ($1.6m) and implementation of the yet to be determined parks master plan amenities ($1.5m). 

Next Step: Study Session Next Week 
The council will hold a study session on the budget on May 5 and 6. It is open to the public via Zoom.