Bits and Pieces

Call it like it is: Staff badly missed this year's construction sales tax estimate

Staff presented the Town’s March financial update at Wednesday’s council meeting. There is really nothing new to report beyond what LOVE told you in March. The Town budgeted about $5.1 million in construction-related sales tax revenue for the year. The March update now estimates the year-end total at about $2.6 million. That is a shortfall of about $2.5 million, or nearly 49% below budget. This is a huge forecasting error that should have been avoidable.

Staff blamed the missed forecast on two projects: A later-than-expected start for the Oro Valley Marketplace hotel and a Vistoso Golf Club apartment development that has yet to happen.

This raises a fair question: How could staff miss the timing of these projects so badly? Town staff reviews development plans, processes approvals, and issues permits. Staff knows how long the process takes. Thus, staff knows when major projects are likely to start. Staff should have known the timing of these projects.

This mistake matters because some council candidates are pointing to the revenue shortfall as evidence that the Town is not fiscally sustainable. We disagree. The mistake is evidence of something else. Town staff needs to be challenged more closely when it provides financial results and budget forecasts to the council. That is the job of the town manager. If he fails to do it, then it is up to the council to be the backstop.

Council approves Operation Stonegarden agreement

Last night, the Town Council approved a resolution allowing Police Chief Kara Riley to sign a subrecipient agreement with the Arizona Department of Homeland Security for Operation Stonegarden funding. The agreement provides up to $143,000 for Oro Valley Police Department overtime and mileage for deployments with U.S. Customs and Border Protection. This resolution follows a May council action approving Stonegarden funding for equipment. Together, the grants continue OVPD’s participation in the regional law enforcement program. Staff says the program works with other local agencies and the U.S. Border Patrol Tucson Sector to reduce crime, improve quality of life, and target smugglers involved in human trafficking, illegal contraband, and other threats. The funding is reimbursement-based.

Council renews inmate housing agreement

Also last night, the council approved an annual intergovernmental agreement with Pima County for the housing of Oro Valley municipal prisoners at the Pima County Adult Detention Complex. State law requires cities and towns to pay for incarceration costs when prisoners are held on municipal court charges. Under the agreement, Pima County will charge Oro Valley $527.42 for booking, intake, and the first day of housing. Each additional billable day will cost $134.76. The agreement runs from July 1, 2026 through June 30, 2027. The town’s recommended FY 2026-27 budget includes $175,000 for prisoner custody, which staff expects will be sufficient.

Council approves Sun Shuttle Dial-a-Ride agreement

And last night, the council approved an intergovernmental agreement with the Regional Transportation Authority for Oro Valley’s Sun Shuttle Dial-a-Ride service. The service provides free, door-to-door transportation in designated areas, with service for the general public, seniors 65 and older, and ADA-certified riders. Staff said the service has operated in partnership with the RTA for more than 15 years and provided nearly 68,000 passenger trips in FY 2025. Ridership is expected to exceed 74,000 trips in FY 2026. The new agreement reflects the voter-approved RTA Next plan and runs through June 2031. For FY 2027, the estimated service cost is about $2.5 million. The RTA is projected to reimburse about $2.4 million. The Town’s estimated share is $113,000.

Council extends police radio maintenance agreement

And finally last night, the council approved a first amendment to the Town’s agreement with Pima County for Pima County Wireless Integrated Network subscriber services. The agreement provides repair and maintenance services for radios used by the Oro Valley Police Department. The original agreement was approved in 2021 and was set to end in June 2026. The amendment extends the agreement for five more years, through June 2031, with the option for another five-year renewal. The updated agreement covers 312 OVPD radios, including 162 mobile radios, 148 portable radios, and two control stations. The annual preventive maintenance cost is $9,360, or $46,800 over five years. Staff says the related expenses are included in the current budget and the recommended FY 2026-27 budget. 

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Bits and Pieces

Kriegh park use highlights need to balance town revenue goals and resident access
Kriegh Park will be largely unavailable for casual resident use for the third consecutive weekend. This weekend, the Oro Valley Aquatic Center is hosting the Age Group State Swim Meet, running Thursday through Sunday, and attendees are expected to use much of the available parking. The previous two weekends also brought heavy park activity with wine festivals held at the site. In addition, during most weekdays the park’s fields are reserved for organized baseball and softball beginning around 5 p.m., further limiting opportunities for casual resident use of the park. These programs run year-round. Finding parking is difficult. Walking the perimeter during games can also be difficult, with foul balls, lawn chairs, and children riding bikes around the fields. 

The town’s goal of attracting visitors who spend money locally needs to be balanced with maintaining reasonable access for residents.

New police headquarters is well underway...20 police units may locate there

At Monday’s second council strategic planning session, council and staff discussed police facilities. As we reported in August, the town purchased an existing building for a future police headquarters. The building is about 50,000 square feet. Planning is underway to determine how it will house roughly 20 police operational units and support the department’s needs over the next 10 to 20 years. 

At present, the plan is for dispatch operations to remain in the La Canada headquarters because of the cost of relocating the communications infrastructure. Once the police department moves into the new facility, the remaining space in the La Canada building will likely be used by other town departments that need additional room, with the Water Utility Department mentioned as a possible future occupant.

Renovation may cost far less than anticipated

Staff delivered some good news regarding the cost of renovating the new space at the Monday strategy session.  Early planning indicates that about 70 percent of the existing building can be reused with only interior modifications, such as moving walls and repurposing rooms. Because much of the structure can remain intact, staff believe the renovation may be completed for only a few million dollars, depending on final design and construction estimates.  The town will first look for available cash within its capital improvement program to fund the work. If borrowing is required, the town will likely arrange a direct bank loan rather than issuing bonds, which staff said would keep financing costs lower.

Firefighters host community cookout tomorrow at Naranja Park archery range

The North Tucson Firefighters Association are hosting the Jose Samaniego Memorial Archery Shoot and BBQ Challenge, a community event that combines a 3D archery competition with a first-responder cookout. The event is from 10 a.m. to 4 p.m. at the Naranja Park archery range. The event raises funds for programs such as “Shop with a Firefighter,” which supports local families during the holidays. The event also honors fallen Golder Ranch firefighter Jose Samaniego. Residents are welcome to stop by to watch the competition, enjoy barbecue, and meet local first responders.

March 15:  Celebrate Oro Valley with the Tucson Roadrunners

Oro Valley residents are invited to attend Oro Valley Day with the Tucson Roadrunners on March 15 at 4 p.m. when the Roadrunners host the San Jose Barracuda at the Tucson Convention Center. The event, organized with the Town of Oro Valley and the Greater Oro Valley Chamber of Commerce, offers discounted tickets for Oro Valley attendees and includes a pregame St. Patrick’s day themed gathering with music, food, and community booths highlighting Oro Valley organizations. Town officials are expected to take part in the festivities, including a ceremonial puck drop. Mayor Winfield is expected to ride the Zamboni.  More information and ticket details are available here.

Traffic alert for Sunday's Arizona Distance Classic

Drivers should expect minor delays Sunday morning, March 8, due to the Arizona Distance Classic running event in Oro Valley. The half marathon begins at 6:30 a.m., followed by the quarter marathon and 5K at 7:05 a.m., with the race starting and finishing at Roche Tissue Diagnostics on Innovation Park Drive. Portions of Innovation Park Drive, Rancho Vistoso Boulevard, Tangerine Road, and nearby residential streets will experience traffic control, lane restrictions, and some temporary closures as runners move along the course. Motorists are advised to allow extra travel time and watch for runners, volunteers, and law enforcement directing traffic. (Source: Town of Oro Valley Media Release)

Mid-year financial report shows stable finances but sales tax shortfall

The town’s fiscal year 2025-26 mid-year financial report shows that Oro Valley’s finances remain generally stable, though several trends bear watching. Local sales tax revenue, particularly construction sales tax, is running significantly below budget and is expected to finish the year about $4.8 million short. Some of that reflects development projects that were assumed in the budget but have not yet begun. Town departments, however, are holding spending below budget, helping offset part of the revenue gap. Golf operations at the Community Center are performing strongly and are expected to exceed budget, providing a bright spot in the results. Even with the sales tax shortfall, the town projects that its General Fund balance will remain about $4 million above the 25% reserve policy at year end. (Source: Finance Director David Gephart report to council on March 4, 2026)

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