Bits and Pieces

Town releases simplified financial report for fiscal 2024

The Town of Oro Valley has published the Popular Annual Financial Report (PAFR), a concise and easy-to-read summary of the more detailed Annual Comprehensive Financial Report (ACFR). The PAFR provides residents with key financial information, including revenues, expenditures, net assets, debt, financial ratings, and historical trends. It offers a clear overview of the Town’s fiscal health and achievements, making it more accessible to the community. (Source: Town of Oro Valley Media Release)

Oro Valley brings back public art tours

The Town of Oro Valley is relaunching its in-person Public Art Tour Program starting February 2, 2025. The tours, which were suspended in 2020 due to the pandemic, are being offered as a pilot program with free participation this season. Tours will take participants to over 20 locations around Oro Valley to view various public art pieces, with stops at the Oro Valley Marketplace and Oro Valley Hospital. Tours are available on select Wednesdays and Sundays from February to April and can be booked online. The town aims to make Oro Valley a prime destination for art lovers and is gathering community feedback to improve future offerings. (Source: Town of Oro Valley Media Release)

Our police don't have "traffic ticket" quotas

The Oro Valley Police Department (OVPD) does not have quotas for traffic tickets, as quotas could pressure officers to issue unnecessary citations. Officers focus on addressing significant traffic violations to ensure public safety, with the goal of correcting unsafe behavior rather than issuing tickets automatically. (Source: Oro Valley Crimefighter, January 2025)

Rancho Vistoso residents need vote on street parking enforcement  

A new Arizona law may limit the Vistoso Community Association’s ability to enforce street parking rules, but a community-wide vote would allow enforcement to continue. If the association loses this authority, it could lead to safety concerns such as blocked views for drivers and pedestrians, restricted access for emergency vehicles, and reduced property values due to unsightly parked vehicles. Residents are urged to participate in the upcoming vote before the annual meeting on March 27, 2025, to help maintain the community’s safety and aesthetics. (Source: VCA Newsletter-January 2025)

Oro Valley gets high marks

Oro Valley, Arizona, has been recognized as the #1 safest and wealthiest retirement community in the United States. This recognition comes from a November 2024 report by GoBankingRates.com, which highlights factors such as low crime rates, high average retirement income ($52,098), and a livability score of 81. (Report) 

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FOPRG to Honor Rick Messina
“The Friends of Pusch Ridge Golf partnered with the El Conquistador Golf team to create a tranquility garden at the top of the fourth hole in honor of Rick Messina, our beloved groundskeeper, who we lost last summer. Many generous Friends donated succulents of all varieties that have been planted, while others contributed funds for colorful pots and flagstone. Our community is abundant with thoughtful and generous humans.” (Source: FOPRG Newsletter)


2024 Oro Valley External Financial Audit in Process
According to Town Finance Director David Gephart: “Our auditors were here the first week of this month for fieldwork, and they finished up on Thursday afternoon. There were no real findings or issues; just a couple of minor follow-up items we’re working on with them. We’re in the process of drafting our [annual report] and look forward to completing and wrapping up that process for the last fiscal year.” (Source: Budget and Finance Commission Meeting, 10-15-24)

Winfield to Deliver Oro Valley’s 23rd Annual State of the Town, Oct. 31
“Oro Valley Mayor Joe Winfield will deliver his sixth State of the Town Address on Thursday, Oct. 31, 2024, at El Conquistador Tucson, a Hilton Resort. The luncheon, a ticketed event hosted by the Oro Valley Chamber of Commerce, will begin at 11:30 a.m. Mayor Winfield will reflect on the Town’s successful initiatives, projects, and partnerships over the past year—including the celebration of Oro Valley’s 50th anniversary—while sharing his vision and optimism for the Town’s future.” (Source: Town of Oro Valley Media Release)

Update on the “Shot Clock”
Several weeks ago, we discussed the state-mandated shot clock on zoning requests that the town must implement by January. That article was based on a study session with the Planning and Zoning Commission. This past Wednesday, at the Oro Valley Town Council meeting, the council emphasized the need for a clear definition of when an application is deemed “administratively complete” to ensure consistency. The council raised concerns about the new timeframe potentially limiting the ability to address resident feedback thoroughly, while also considering a six-month cap on applicant-requested extensions to avoid indefinite delays. Additionally, council members noted that changes to legal protest requirements under the new law might increase the number of rezoning cases requiring a council vote, potentially amplifying resident input. As the January implementation deadline approaches, the council aims to refine these amendments to maintain a balanced rezoning process that meets state requirements and local needs.

Things to do this weekend

Well, it's getting cooler thank goodness. Tonight, there’s a Parents’ Night Out at Steam Pump Ranch, where kids can enjoy games and crafts while parents take the evening off. Might be fun to take a movie at Steam Pump Ranch tomorrow night at 6 o'clock. "The movie will be shown on the lush lawn at the ranch and attendees are welcome to bring blankets and chairs. This event will feature the 1993 Halloween themed family comedy, Hocus Pocus and a few spooky crafts for the kiddos." It is free to all. And Sunday there's a concert sponsored by the southern Arizona arts Council (SAACA).  It runs from 4 to 6 PM and we think it's at Riverfront Park. (unfortunately the website does not list specific location.)  Enjoy!

Oro Valley’s 2024 Financial Results Show Better Than Budgeted Performance Because of Timing of Spending

Preliminary 2024 financial results show continued financial health and impact of delayed spending on capital projects
The Town of Oro Valley has released its preliminary financial results for the fiscal year ending June 30, 2024. While these figures are unaudited and subject to adjustment, they provide a picture of the town’s financial health. Finance Director David Gephart presented the results of six funds at the town’s Budget and Finance Commission meeting last week. These funds form the core of Oro Valley’s financial operations, though the final audited numbers may vary slightly.

Operating Fund reflects increased housing permit activity and inflation impact on sales tax revenues
The General Fund, which powers most of the town’s day-to-day services, ended the year with revenues surpassing expectations by about $2 million. This positive outcome is attributed to higher-than-anticipated local sales taxes and an increase in permits related to residential construction. Notably, the town issued 178 single-family residential permits, exceeding the budgeted 119. These permit numbers indicate ongoing growth in the community.

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Community Center Fund significantly outperforms revenue expectations
Community Center Fund revenues exceeded the budget by 18%, driven by strong performance in golf operations, including a 20% increase in rounds played. Despite higher expenditures, the fund ended with a surplus of $798,000, a significant improvement from the budgeted deficit of $826,000.

Gephart suggests considering increasing community center fees
Membership at the community center and golf courses has been growing consistently, but this rapid growth may lead to some changes. As Gephart pointed out, there is an upper limit to how much the facility can accommodate. “At some point, people won’t be able to get tee times,” he noted. To address this, the town may consider adjusting membership rates and fees, making them more in line with market rates to manage demand. This potential fee increase is not only practical for balancing capacity but could also help fund future improvements at the center.

Higher water use boosts Water Utility Fund results
The Water Utility Fund benefited from higher water usage due to a drier year, with revenues exceeding budget by $1.2 million. Revenues exceeded the budget by 6%. Expenditures were lower than expected due to personnel vacancies and a lower administrative charge, resulting in a $3.1 million use of fund balance instead of the budgeted $4.5 million.

The three other fund balances show underspending in capital projects due to timing
The financial results of other funds were impacted by less-than-anticipated spending on capital projects.

• The Highway Fund also showed a favorable outcome, with expenditures coming in under budget due to capital project delays. While revenues from highway user taxes were slightly lower than anticipated, increased interest earnings helped offset this shortfall.
• The Capital Fund saw $7.6 million in expenditures, significantly lower than the $13.6 million originally budgeted. This variance was largely due to the delay of several capital improvement projects, which will carry over into the next fiscal year. As a result, the town’s ending capital fund balance stands at $16.9 million, leaving ample room for future projects once they are ready to proceed.
• The Stormwater Utility Fund also reported an increase in its fund balance due to delays in capital projects, despite the town not receiving a budgeted grant.

Still, there are financial headwinds ahead
There’s no reason to believe that the town is facing financial headwinds based on the 2024 results. Still, there are financial headwinds ahead, as noted by Gephart in May to the council.

Future spending is going to require making hard choices. Inflation boosted town sales tax revenues this year, but as inflation abates, so will sales tax revenue increases. An unexpected increase in housing permits this year also increased general fund revenues. However, permit fees will decrease as the town builds out.

No town can underspend on capital projects forever because these are projects that need to be done. This is especially true for Oro Valley, where there are some significant projects. Funding for the water fund’s NWRRDS project will require borrowing, which the Town Council approved last week. The town’s bridge structures are reaching the point where they need to be repaired, and that’s going to cost a substantial amount. Something significant also needs to be done regarding police facilities. Together, all of these capital projects are going to cost about $100 million over the next few years.

It’s going to take strong fiscal management and an exceptionally financially astute Town Council to work through these future funding challenges.