Independent Study: “Buildout” Will Not Cause An Oro Valley Financial Catastrophe...But

It's really close...

“Based on the current budget structure, existing zoning and the expected amount of future residential development, the projections show a fiscally sustainable result at build-out …but with very limited resources to cover any significant increases in long-term maintenance costs.” (Applied Economics Fiscal Impacts Report, p 22).

No wiggle room

In fact, the projected difference between revenue and expenditures in the the two funds assessed is really tight (see chart below right). There's no "wiggle room."

Study seeks to answer question: Must residential growth in Oro Valley continue even after buildout in order for the town to be financially sustainable given current revenue sources?

Town Finance Director David Gephart presented the study to the town’s Budget and Finance Committee last week. He said that the town engaged an outside consultant to do the study as part of its strategic planning process. Gephart noted that the study was needed because there are some in the community, including former Town Manager Mary Jacobs, who believe that the arrival of “buildout” will herald a financial crisis.

Study conclusion applies to town day-to-day operations

The study focuses on two funds. One is the General Fund, the town’s source of funding for day-to-day town operations. These operations include major functions such as public safety, economic development, and some public works funding. The water department and the community center are funded by separate funds and were not included in the study. The highway fund, much of whose revenues come from state-shared revenues and transfers from the capital fund, was included in the study.

Study conclusion seems a bit of an overreach 

The study aims to determine whether residential growth in Oro Valley must continue after buildout to ensure the town's financial sustainability with its current revenue sources. We believe that the study conclusion that there is no problem is an overreach:

• The study projects a surplus of funds until significant buildout occurs in 2034. At that time, revenues and expenses nearly match. It's really too close to call.  As a minimum, the town will need to manage its spending ever more carefully as the town reaches buildout than it does today. Will it have the "ability" to do that?
• The study does not account for the fact that the General Fund is a source of funding the Capital Fund (see note below). That funding comes from the General Fund surplus. That impact is not included in the study, The consultant recognizes this by noting in their conclusion that the town will have “… very limited resources to cover any significant increases in long-term maintenance costs."
• According to Gephart, the study numbers were not reconciled with the town’s five-year financial forecast. That forecast is based on the best-known details of future events, while the consultant study used estimates of what may happen over twenty-five years.
• In addition, the town has yet to reach a "steady state" were all numbers can be reasonably estimated. For example, the town has yet to open and operate Naranja Park, one of the largest regional parks in Southern Arizona. The upkeep and renewal of this facility could be very costly.

Council should focus on "mitigating" the risk

We think that the council needs to know the circumstances under which "buildout" will cause a financial crisis for the town. They can then assess, using their own judgment, the likelihood of these events occurring and what, if anything, they can do to reduce the risk. That is really what planning is all about.

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About the Capital Fund

The Capital Fund is the source of funding for capital improvement projects. These are projects where spending is $50,000 or more, have an expected useful life of five or more years, and either become or preserve an asset of the Town. Although facility repair and maintenance, as well as fleet replacements, do not meet the definition of a capital project, they are significant expenses for the Town and are included in the CIP for planning purposes" (Source: 2023-24 Town Manager Recommended Budget, page 101). 

The General Fund is one source of money for this fund. Other sources include revenues derived from future commercial growth and development, including impact fees, commercial sales tax collections, other one-time revenue sources such as grants and contributions, and bond proceeds.

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Bits and Pieces

New segment of The Loop adds safety, recreation connection in Oro Valley

"Oro Valley has a new half-mile multiuse path segment of The Chuck Huckelberry Loop that provides a quick and safe connection to the regional trail system. In partnership with the Pima County Regional Flood Control District, the new segment, which is north of the Oro Valley Hospital, extends the pathway further north and connects to Rancho Vistoso Boulevard. Previously, users had to cycle or walk along Rancho Vistoso Boulevard and through Big Wash, traveling over dirt sections, to directly connect to The Loop. The new segment is now paved and striped, separating users from the road." (Source: Town of Oro Valley Media Release)

Planning and Zoning Commission considers general plan amendment next week

The Oro Valley Planning and Zoning Commission will consider a general plan amendment and two zoning changes for a parcel in Rancho Vistoso. The hearing is scheduled next Tuesday at 6pm in town council chambers.  The parcel is located south of Moore Loop Road. It is on the west bank of Big Wash. The land is designated in the 2016 General Plan for a school. However, the Amphi School District has concluded that one is not necessary. The land is now under the control of Vistoso Partners. The request is to rezone the land for medium density residential, the land designation prior to it being designated for a school. The plan is to build 59 homes on the property. Read more about this request here and here. This is yet another Paul Oland project.

Jacobs received compensation for 2022-23

Interim Town Manager Chris Cornelison, responding to a question at the 2023 Town Manager Recommended Budget session in May, noted that former town manger Mary Jacobs has been receiving compensation from the town for the full year.  Jacobs left her post at the end of September.

New town manager Jeff Wilkins is expect to start mid month.

Town Council Needs To Designate Use of $10.75 Million Windfall

$10.75 million of remaining ARPA funds yet to be designated for use

The Town of Oro Valley has $10.75 million in federal ARPA funds to designate for use. The town received these funds last fiscal year. The town has until the end of 2024 to assign these funds, obligate them to specific projects. The town must spend these funds by the end of calendar 2026.

The town received a total of $15.4 million of ARPA funds

This is truly a windfall. The town didn’t need this money. The Town of Oro Valley thrived financially during the pandemic. Many communities like Oro Valley are struggling to figure out how to spend all of the ARPA funds by the 2026 deadline.  The panel [below right] shows the total funds received and how they have been used to date.

The use of  $10 million of these fund is mostly unrestricted,  It can be used for replacing town revenues lost during the pandemic

$10 million of these funds can be used on a broader basis to replace “revenue losses” caused by the pandemic. This money can be spent on a broad range of general government expenses. For example, some communities are spending the money on what one would call welfare payments. Others are using it to replace shortfalls in capital spending.

Town staff designated $4.65 million of these unrestricted funds to pay for replacing the town's El Conquistador and Canada Golf Courses' Irrigation

The total cost of the irrigation replacement on the town's two 18-hole golf courses is estimated to be $9.15 million.  $4.5 million of this is being paid for from the $25million Parks Bond; the rest, $4.65 million, from the ARPA funds. 

Town Council did not approve, by resolution, the use of the ARPA funds for that purpose

Nor has the Town Council designated the use of the remaining $5.35 million of unrestricted funds. 

According to town staff, these funds are sitting in the capital improvement fund, waiting to be used to fund future capital projects.  Town staff, without a formal council resolution, used $4.65 million to pay for golf course irrigation replacement.

The use of  $5.4 million in ARPA in funds is restricted

These funds can be used to improve drinking water and wastewater infrastructure.

It is the town council’s job to obligate all ARPA funds. They have not done so.
The town budget does not define the specific use of these funds. Thus, the town council must decide this.  It is then the responsibility of the town staff to spend it as directed. 

Until the town Council meeting of December 7, this council has not focused on fulfilling their responsibility. Thus, Council Member Tim Bohen, prior to and at that meeting, requested that staff to respond to eight questions that he asked regarding these funds. Town staff responded.

None of the restricted funds have been obligated by the Council    

Town Council has not directed staff on how to spend the $5.4 million in restricted funds. LOVE has advocated that the town use theses funds to extend the reclaim water system to the south part of town, thus saving millions of acre feet of drinking water from being used on town parks. The town council rejected this at the last meeting, preferring to wait for the answers to the eight questions asked by Bohen. The answers given by staff don't tell the council how to spend these funds; but their response did clarify one thing.

Town Outside accountant confirms that restricted funds can’t be laundered through the water utility... so that they could be used for another purpose
The Town Council has been terribly misinformed regarding the use of the unrestricted funds for water. Town staff, under the leadership of former town manager Mary Jacobs, current town finance director David Gephart and with some misinformation provided by the town’s independent auditor, suggested laundering these funds through the water utility so that the town can use the funds for non approved purposes. The scheme was to lend money to the water utility, have the utility use it for an intended purpose and then to pay the loan back to the town. Then, the town could use the funds paid back for a non approved use. This is called money laundering. It is illegal. It is chicanery.

As it turns out, LOVE was correct when we identified this as a laundering scheme when Jacobs proposed it to Council in September. In one of the responses to Bohen’s request, the independent accountant recognized that the funds must always be used for the intended purpose, even if they are paid back. The independent accountant concluded this after consulting with a third party organization with which they have recently become affiliated. Frankly, we question the competence of the independent accountant.

Big question still remains: How to spend $10.75 million in remaining ARPA funds?

The clock is ticking. At some point, the council will have to obligate these funds or return them to the federal government.

Carpe Diem on Reclaimed Water

Carpe Diem

Tonight, the Oro Valley Town Council has the opportunity to designate $5.4million in restricted ARPA Funds to extend the reclaimed water system to Riverfront Park, Kreigh Park and the town owned Pusch Ridge Golf Course. This amount may not be enough to do the complete extension, but it is a start on saving millions of gallons of drinking water.

Council has done nothing to stop the outrageous use of drinking water on town parks

This council has done nothing regarding the extensive drinking water wasting that takes place at these facilities. 

 

Rather than "fast track" doing something about this, the Council let the town manager put it on the back burner to let the water director take a year to "dream" of the possibilities

On June 8, Town Water Director Peter Abraham spoke of the wondrous things and possibilities using Oro Valley's unused reclaimed water allotment could bring to the town.

At that time Abraham stated...in almost a dream state...  "When I started diving into this my mind was going to some amazing places that might be of better benefit to the community than just extending the reclaimed water system. We have an opportunity here to further ensure our sustainability. We have the resource. Let's take our time and wrestle with it." 

At that meeting, Town Manager Jacobs took charge and told the council that this was a strategic issue and that it should be added to the strategic leadership plan discussion this February. This was a delay tactic on the part of Jacobs because she wanted to use the ARPA funds for a host of other purposes. These other purposes will be discussed by town staff tonight.

Then, the town manager suggested laundering the ARPA funds through the water utility

Things did change a bit. Because in late September, two days prior to her resignation, Jacobs proposed "laundering" the restricted ARPA funds through the water utility. The money, she said, could be loaned to the water utility and then paid back. The money that was repaid was not ARPA funds, she said, so it could be used for any purpose! She said that the auditors told her this was OK to do. Really? Sounds like a laundering scheme to us. Maybe the town needs new auditors!

Meanwhile, drinking water that could supply at least 715 home is being squandered

In the past seven months, the three town owned facilities have used 35 million gallons of drinking water. That is equivalent to the use of 715 average Oro Valley homes...or... 7,150 homes reducing their water use by 10%.... or... one and a half times the total amount of rain that fell in Oro Valley this past weekend. It is a lot of drinking water!

The money is available. Jacobs is gone.  This ain't rocket science. Extend the reclaimed system.

We are we are. Jacobs is gone. This council is in control. This council can do the right thing. Fund extending the reclaimed water system. Prove that Oro Valley is the community of excellence that we are claim to be.

Editorial: Jacobs Exit Is An Opportunity For A Sea Change

Opportunity knocks
The exit of Town Manager Mary Jacobs presents an opportunity for a sea change in the way things get done in Oro Valley. We've identified seven areas where change would make a huge positive difference.

1. Pitting council members against each one another 

According to our sources, Jacobs was the master of pitting one council member against another.  She would do this in private meetings with council members. This practice should never been allowed. Winfield should have banned it.

2. Make sure all spending is authorized
In a September 13 Guest View, Mike Zinkin discussed town spending that was not approved by vote of Council. Jacobs would put things into memos to council discussing what she was going to do but to not  bring it to vote. Her tactic was in violation of what we think it’s still an existing policy number six of the town council. (Panel Left-Below)

Seven Areas Of Change

3. Eliminate using "business processes" to delay (sometimes forever) things that the council voted to get done
Jacobs is a process person. Everything has to fit within her business process and its timetable. The annually developed strategic plan was the cornerstone of her process.  Everything that the Council requested during the year had to fit within that framework. 

For example, this past June, when the council finally got around to discussing the use of reclaimed water, Jacobs was successful in having this important topic tabled for a year. According to Jacobs, the topic was not in the strategic plan for 2022. It would be added as a topic at the next strategy session, the following February. Thus, we are not going to hear anything on this until next June. Perhaps we will still have water by then! 

Yes. Processes are good because they provide order. Processes are bad when they are used to delay implementing decisions that need to be done. 

An elevator, even a temporary one, at the Community Center has been approved and in the budget for the past two years. But it has not been implemented. That’s because Jacobs didn’t want to implement it. Her end goal was to completely rebuild the Community Center and to add an elevator at that time. Perhaps now, with a new town manager, the town will do something to help those who are mobility challenged get reasonable access to the Community Center.

4. Reorganize to protect the essence of Oro Valley ... not to foster unwanted growth

Jacobs has focussed town staff on growth. One way she did this is in the way she organized the to town. For example, the town's Planning and Zoning Department is an arm of the Economic Development Department. We’re not sure when it became part of an effort to influence growth in our community. 

Town Council Policy 6

The goal of the Planning and Zoning Department should be to interpret and to enforce town codes as approved in the General Plan. This is no longer the case. We have seen countless times the enthusiasm of the planning staff to recommend exceptions to Oro Valley code they just didn’t make sense. Seventy foot  tall buildings with minimal setback from Oracle Road and Tangerine Road at the Oro Valley Marketplace don’t cut it in Oro Valley. Yet the town planning staff specifically, thought this was supported by the general plan. It is not.

More recently, town Public Works Director Keesler stated that he is not advocating for the two tiny rental homes Avilla projects in Rancho Vistoso; but that it would be nice to do because it might fix a road design problem. 

5. Get "straight answers"

It's hard to get forthright information from the town.  For example, several weeks ago, we published two articles regarding the mess in the desert that has been perpetuated for several years by Meritage Homes Silverhawke Project contractors.  Since we knew for certain that the town had formally noticed Meritage of this problem, we asked the town if there was a process in which repeated violations result in escalating penalties. We were told by the town that Meritage had never had been noticed for this. Gee! We had the citation letter in our hands. We even got it from the town.

6. Cut back on Executive Sessions

The Winfield years have been marked by a significant number of Executive Sessions. These are allowed when council discusses personnel, legal or contractual issues. Oro Valley seems to have lot of these issues because the Council is always going into Executive Session. 

It seems to us as though the Council goest into Executive Session if there is even a hint of the matter touching on one of these three areas areas. For example, they were scheduled to discuss the fact that the light poles at Naranja Park are too close to the playing field in  public.  They made that an Executive Session discussion, never discussing it in public. We have no idea why they moved it from public to private discussion. They never explained it.

7. Winfield leads

Mayor Joe Winfield relied on the Town Manager. As recently as a year ago, he sent an email to a resident stating his complete trust in her. His trust was not earned by her. It was given by him.

Winfield should retain a town manager whose vision is consistent with his and with the council majority. The Mayor needs to define this vision clearly, communicate it publicly and then find someone who will implement it.

Tonight, the Council will meet to discuss the process for hiring a town manager. We hope that the process is a robust one that searches "far and wide" for the best person. 

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Town Manager Jacobs Resigns After Proposing "Laundering" ARPA Funds

Jacobs resigns

Town Manager Mary Jacobs resigned Friday. We do not know the reasons behind this. We do know that she proposed a money laundering scheme regarding $5.38million in ARPA funds. This happened at the Town Council meeting last Wednesday. You can read about this scheme in this article.

We do know that council conducted her annual review as scheduled after she had proposed this scheme. 

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Jacobs proposed laundering ARPA funds 
Jacobs and her staff tried to “pull a fast one”. She put an item, Consent Agenda, item 2, on last week’s council meeting, which was an item that clearly needed discussion. Consent Agenda items are not discussed at the meeting unless a council member requests that the item be pulled for discussion. Otherwise, Consent Agenda items are voted on as a block.

The item called for the council to approve a loan of  $5.38 million from the General Fund to the Water Utility Fund.  These funds were received from the federal government as part of the ARPA award. ARPA required that the funds be used for water infrastructure projects. Under Jacobs’ scheme, the utility would pay back this money with interest over time. 

Rather than simply gifting the money from the town to the Water Utility to build infrastructure, Jacobs wanted to lend the money to the Water Utility so that the town can get it back and use it for another purpose, one not related to the federal allowable use of these funds.

As council member Steve Solomon pointed out at the council meeting, the scheme sounds like the town is trying to get around federal regulations for the use of the money because the town will get the money back and then use it for some other, non ARPA allowable purpose.

Solomon was exactly right.  

The Water Utility was the conduit for the sham transaction

Speaking in defense of the loan arrangement, Town Manager Mary Jacobs said that the money that the utility will be getting would be the ARPA funds which carry the restriction that be used for water infrastructure.  According to Jacobs, the money the town will get back in loan repayment and interest would be unrestricted. It will not get back ARPA funds. The funds would be from the general revenues of the Water Utility.

Attention all.

This is called “money laundering”.

Gephart: It's OK to do this because the Water Utility is an enterprise fund

Town Finance Director David Gephart justified the scheme because he felt that the town should not simply transfer the money to the utility.  Gephart said that the reason that a loan has been proposed is because the Water Utility is supposed to be a self sustaining (“An Enterprise Fund”) entity. Thus, anything that has to do with the Water Utility, including administrative services that are provided by the town must be paid by the utility.

The loan approach, according to Gephart, provides the appearance that the Water Utility is self-supporting. Gephart also explained that the town had no alternative but to use this money for the Water Utility system. That’s because any other allowable uses were just not feasible for the town.

So, why not just gift the money to the Water Utility Fund and be done with it? After all, these ARPA monies were gifted to the town by the federal government  The funds are intended to be used for water infrastructure projects.  In this case, the town’s general fund is merely a conduit to get the money to the town-owned Water Utility Fund because the Water Utility did not get the funds get directly from the federal government.

Jacobs tried to do this "in the dark of night" by putting the item on the “Consent Agenda” segment of the town council meeting

Jacobs claimed at the meeting that she wrote about this loan transaction in April. Council Member Bohen agreed that he found it buried in a document council received back then. The members never discussed it then because they were never really aware of it.

It would not have been discussed last week had it not been for the sharp eyes of Bohen, Jones-Ivey and Solomon. The former two asked for the item to be pulled from the Consent Agenda for discussion. Solomon identified the transaction for the “sham” that it is.

Former Town Manager Jacobs tried to put "one past them." 

Fortunately, she failed.

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Town Manager Mary Jacobs Resigns

Town Manager Mary Jacobs resigned yesterday

Jacobs was with the town for five years. We do not know detailed reasons for her resignation. What we do know is that it comes after she attempted on Wednesday to get the council to approve, without discussion, a scheme to launder certain federal ARPA funds for use in a non approved manner. You can read more about that Monday.

That same night, council held an Executive Session annual review of Jacobs’ performance. That review happened after her advocacy of the sham transaction.

Her resignation Friday followed that council performance review.

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Guest View: Mike Zinkin – Questioning Unauthorized Spending by the Town

Mike Zinkin presented a similar version of this article in a speech he gave during the Call to Audience at the September 7th Town Council meeting. LOVE added the subheadings.
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Town Council Chambers Renovations
I inquired where the authority came from to spend over $620,000 to redo the Council chambers. In a recent communication from the Town, I was told that it came from the $5.3 million supplied by the Cares Act funding. I was also told that it was approved by Council and was in the FY 2020/21 adopted budget.

This appears to be a fabrication, as the FY 2020/21 Capital Improvements Program (CIP) allowed only for $105,000 for Council Chamber AV improvements and $55,000 for new furniture for a total of $160,000. There was no authorization to spend the Cares Act money for anything beyond that, yet Town Manager Mary Jacobs spent $620,000.

Wi-Fi installation at Naranja Park

The Council minutes of 7/7/21 denote approved projects for Naranja Park as a result of the $25 million bond. Wi-Fi was never mentioned. Where did Jacobs get the authority to spend our tax dollars for Wi-Fi? Who approved this project? The Wi-Fi cost about $123,000. Did that money come from the yearly $125,000 HOA contributions that are supposed to be used to support the golf courses?

The Council minutes of 5/18/22 show that there were three attempts to get staff to bring in a list of Naranja projects along with their associated costs but none of these motions were passed. Doesn’t the public deserve to know how their money is being spent?

I’ll say it again. The Town Council needs to take control of this Town back from Jacobs and the staff and stop the unauthorized spending, which is a direct violation of Town Policy 6.

Community Center Elevator
The Council minutes of 4/6/22 note a motion that passed 7-0 to “Ask town staff to bring us a proposal to add an elevator or appropriate technology to the existing building in the most cost effective way, while keeping the existing entrances, restaurant location and building functions, and make it a priority from existing Community Center funds and the $750,000 set aside for this purpose.”

This motion is 5 months old. What happened to the priority to add an elevator?  It appears that unauthorized spending has taken precedence over authorized spending!

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Mike Zinkin and his wife have lived in Oro Valley since 1998. He served on the Oro Valley Development Review Board from 2005-2009, the Board of Adjustment from 2011-2012, and the Town Council from 2012-2016. He was named a Fellow for the National League of Cities. He was a member of the NLC Steering Committee for Community and Economic Development and a member of the Arizona League of Cities Budget and Economic Development Committee. He was an Air Traffic Controller for 30 years. Mike has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge.

Guest View: Mike Zinkin – Oops! She did it again.

 

Past Violations
In previous LOVE articles, I discussed the problem with Town Manager, Mary Jacobs, disregarding established Town Policies. I specifically discussed her violations of Town Policy #6 and Town Policy #11.

Recent Violation: State Statute requiring 24 hours’ notice of meetings
The Council Meeting agenda for the May 18, 2022 meeting was amended. However, the amended agenda was not posted within 24 hours of the meeting in accordance with State Law.
The open meeting law requires at least 24 hours’ notice of meetings to the members of the public body and the general public. A.R.S. § 38-431.02(C). Notice must be posted on the public body’s website, unless otherwise permitted by statute.

Notice must also be posted at any other electronic or physical locations identified in the disclosure statement and by giving additional notice as is reasonable and practicable. A.R.S. § 38-431.02(A)(1) through (4).

“Clerical Error” or just more negligence?
When this was brought to the attention of Town Manager, Mary Jacobs, her response was that the Council was notified within 24 hours. Although this is true -- the Council was emailed about the amended agenda at 5:52 PM on May 17, 2022 (8 minutes shy of the required notice) --the public was not notified until 7:58 AM on the day of the meeting (just 10 hours before the meeting) in violation of State Law. She blamed it on a “clerical error.”

A pattern of behavior
The primary problem is that Ms. Jacobs continues to violate Town Policies (and now State Law). But the secondary problem is that the Mayor/Council are allowing her to do this without reprimand. It appears that instead of Mayor Winfield and the Town Council managing Mary Jacobs, that Jacobs is managing them. Again, I ask, when will this stop?

How about a non-binding raise?
Additionally, Ms. Jacobs has advised the Council that they are not bound by past Council motions/decisions. As a result, the yearly $120,000 payback from the Community Center Fund to the General Fund (as promised and mandated by the Hiremath Council in 2015) is not binding. Funny how the Town never told us this in 2015 when this “promise” was made.

But, hey, if previous council decisions are not binding, does this mean that the $20,000 raise that the Hiremath Council gave Ms. Jacobs is not binding and can be withdrawn as well?

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Mike Zinkin and his wife have lived in Oro Valley since 1998. He served on the Oro Valley Development Review Board from 2005-2009, the Board of Adjustment from 2011-2012, and the Town Council from 2012-2016. He was named a Fellow for the National League of Cities. He was a member of the NLC Steering Committee for Community and Economic Development and a member of the Arizona League of Cities Budget and Economic Development Committee. He was an Air Traffic Controller for 30 years. Mike has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge

Council Approves "HAWK" At Ironwood Ridge

Device will be installed this summer

Last week, the Oro Valley Town Council approved the installation of a HAWK traffic control system at Ironwood Ridge High School. Students will be able to cross Naranja Drive safely starting with the fall semester. 

Council overrides staff recommendation

The decision of the Council to move forward with this overrode the recommendation of town Public Works Director Paul Keesler. Keesler did not believe that there would be use sufficient to warrant requiring the system.

Keesler based his conclusion on standards published by the US Federal Highway Administration. "The Manual on Uniform Traffic Control Devices for Streets and Highways (MUTCD) defines the standards used by road managers nationwide to install and maintain traffic control devices on all public streets, highways, bikeways, and private roads open to public travel."  Keesler said that an average of 20 students per hour needed cross in a one-hour period. His team observed the intersection on several occasions in late April and identified not more than a maximum use of 14 people.

Keesler's strident assertion that the standards of the MUTCD must be met in this case is in stark contrast to the implementation of a traffic light at the Community Center and La Canada Drive. There was no study done to determine the need for that traffic light. Town staff justified that light on the basis that there was a "line of sight" problem and that a traffic light was necessary.

Council Member Solomon brought the issue to town council

Council Member Solomon presented the motion to move forward with HAWK approval.  Solomon said that he had been contacted by residents. We do not know if he discussed this with town staff. Rather, he chose to discuss it with former Police Chief Danny Sharp. According to Solomon, Sharp chairs the Highway Safety Committee of the International Association of Chiefs of Police. Sharp is also a candidate for mayor. Sharp told Solomon that a HAWK system was the most appropriate solution.

Barrett... Jacobs.. Keesler say they have been "working on this for some time"

According to Vice Mayor Barrett, speaking at the same meeting, this is not a new item. The town has been aware of the need to consider a traffic control device at the school since students returned to school last August after the pandemic.  According to Town Manager Jacobs: "We have been working very closely with the neighborhoods and the police" in this regard.  According to Keesler: "We've been working on this for quite some time."

... with no results

Regardless of alleged good intentions, the issue did not become important enough to investigate in detail until this April when Keesler did a survey to determine the actual potential HAWK usage.  That's when he did his surveys of potential use.

Town Manager asserts that she budgeted for the signal but...

The Town Manager stated (1.34:38 at the meeting) that she included funding in the 2023 Town Manager Recommended Budget Capital for the signal. Her statement is true but it is misleading. 

The Town has not allocated any of its own funds for the signal. The $400,000 for the signal is a line item in the Regional Transportation Authority and Pima Association of Governments ("RTA/PAG") This means that the Town must apply for the money and then RTA/PAG must approve the money to come out of their funds. There is no guarantee that they will approve it.  In addition, Keesler would need to approve the warrant for the signal. 

Council approval settles the issue and funds project

By approving the HAWK system at last week’s meeting, the Council said that it’s time to get this done regardless of what is Mr. Keesler or Ms. Jacobs thinks.

What else is being overlooked by town staff?

The decision to move ahead with HAWK does make one wonder. Why did Council Member Solomon have to put this on the agenda to prompt town staff to do something now? Isn't student safety of paramount importance? Why was the decision allowed to languish in a "bureaucratic" state?

This is the second item that Solomon has put on the agenda that appears to have been overlooked by town staff. The other is the discussion about improving mobility access at the community center. It was the action of Solomon that brought this to the forefront so that the Council acted to do something now. We wonder what would’ve happened if he had not made this a centerpiece of discussion?

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Note: Ironwood High School sits on a Naranja Drive, east of Shannon Road. It was opened in 2001. In recent years, medium density housing has been built around it, creating the need for some sort of crossing traffic control. Resident Jeff Taylor lives in the area. Yelling a council at the meeting, Taylor said that he has been after the town to do something for the past 18 months. Taylor did not live in Oro Valley prior to that. The schools were closed for much of that time due to the pandemic. They opened last August.

Town Manager Jacobs Unveils $159.2 Million Budget Proposed For Fiscal 2023

The process begins 
"It is my privilege to present the Town of Oro Valley balanced budget for Fiscal Year (FY) 2022/2023. This budget totals $159.2 million." Thus begins the process of developing the the Town of Oro Valley's budget for 2023.  That budget takes effect July 1. The budget includes spending for every service the town provides to the community.

Recommended capital spending record high
The town manager proposes spending more than $56 million on capital items this year. There are eighty-three projects. These projects include spending $10m on the Naranja Park buildout and almost $7m in the replacement of the golf course irrigation on the community center two 18 hole golf courses.

Town operations to cost $90.4 million
Operations includes public safety ($19.1m), water($28.5m), parks and recreation ($15.2m) and public works ($13.0m).  Spending on town operations has grown over the years, indicative of the expanded scope of town services. Oro Valley requires more infrastructure to serve the substantial population growth that has happened in the community. 

Staffing up to 416 personnel

The town manager is requesting increased staffing in virtually all areas to a total of 416 employees. This is up from 400 employees in last year's budget.  In addition, the budget includes more than a $1.3 million in pay increases anticipated based on a competitive wage study that the town is now undertaking. That study will be presented to council in a month or so.

Inflation a major budget factor
According to Jacobs, inflation plays an important role in her recommended budget. On the revenue side, sales tax revenues are inflated because the cost of the things we buy are inflated.  "Sales taxes for FY 22/23 are 19 percent higher than the current fiscal year budget, largely reflecting the results inflation is having on local purchases." Inflation is running at about this same rate.

On the expense side: "inflation, supply chain delays, and the impact of overall supply/demand issues have been reflected in the Recommended Budget... Departmental budgets include higher-than-usual annual increases in areas such as gasoline, public safety equipment, field supplies, technology, professional services and more across the organization."

Key dates for budget review and approval
There is plenty of opportunity for residents to learn about and opine on this proposed budget.

• May 11 at 5 p.m. – Council Budget Study Session #1 
• May 12 at 5 p.m. – Council Budget Study Session #2 
• June 1 at 6 p.m. – Public Hearing and tentative budget adoption 
• June 15 at 6 p.m. – Public Hearing and final budget adoption

At some point, we suspect, the town's Budget and Finance Commission will review and opine on the budget. However, that timing has not been published.

Upcoming LOVE articles on proposed budget

There is much to the Town Manager's recommendations. Wednesday we will discuss spending on town operations. Next Monday we will discuss spending on capital projects.

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The Watchdog Report: Golf Stats from March 2022

The truth behind the numbers
At the Council meeting on April 6, 2022, Town Manager, Mary Jacobs, broadcast that in March 2022, golf had surpassed 10,000 rounds for the first time.

The actual numbers are 10,109 rounds on the two 36-hole courses (of which 112 were comped rounds) and 3,363 on the Pusch Ridge 9-hole course (of which 155 were comped rounds.) That’s a total of 267 comped (free) rounds.

Here is what was not mentioned. Remember, the income comes from the non-member rounds. (Members pay a flat fee whether they play 1 round or 100 rounds.)

In March 2022, the non-member rounds on 36 holes were 3,976. A year earlier, in March 2021, the non-member rounds were 5,234. That means that in March 2022 there were 1,258 less non-member (income producing) rounds.

It is amazing what you find when you look under the covers and stop listening to the Jacobs spin machine.

Golf Memberships Update
As of March 19th, there were 334 Full Memberships, 31 seasonal memberships (30-60-90 day), and 16 Pusch Ridge Memberships.

Golf Course Irrigation –
3.5 Million Gallons of Drinking Water
The amount of drinking water used to irrigate the 9-hole Pusch Ridge course in March was 3,529,000 gallons, up from 1,428,000 gallons in March 2021. That is 2,101,000 more gallons over the same month last year!

If your home utilizes 7,000 gallons per month (which is typical) then the Town wasted enough potable/drinking water on Pusch Ridge to supply water to 504 homes.

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Mike Zinkin and his wife have lived in Oro Valley since 1998. He served on the Oro Valley Development Review Board from 2005-2009, the Board of Adjustment from 2011-2012, and the Town Council from 2012-2016. He was named a Fellow for the National League of Cities. He was a member of the NLC Steering Committee for Community and Economic Development and a member of the Arizona League of Cities Budget and Economic Development Committee. He was an Air Traffic Controller for 30 years. Mike has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge.

Guest View: Mike Zinkin – Where did all the money go? Part 2.

The adopted budget gives authority to the Town staff on how to spend our taxpayer money. The Town Manager (Mary Jacobs) must present a balanced budget, that is, with every dollar of expenditures, there must be a dollar of revenue. In Part 1 of “Where did all the money go?” I noted numerous areas where there was no follow-through on the spending authorizations. I have since heard back from the Town and it gets even murkier.

Golf Course Irrigation Improvements
I stated: “On page 244 of the adopted budget for FY 19/20 there is a Capital Improvement allocation for a $3,000,000 bond for golf course irrigation improvements. What happened? Was there a bond, and, if so, where are the improvements?”

The Town’s response: “There were not any bonds issued.”

Again, where did Jacobs get the authorization not to comply with the Council’s policy?

I stated: “On page 227 of the adopted budget for FY 20/21 there is a Capital Improvement allocation for $1,100,000 for golf course irrigation improvements. What happened? Where are the improvements?”

The Town’s response: “Town Manager Mary Jacobs provided this information to you in October 2020. The Town did not do the golf course irrigation but proceeded with the design, though construction documents and the remaining funds stayed in reserves.”

Where did the authorization come to disregard the Council direction and proceed with the alternative? The money was there in the balanced budget, but Jacobs did not follow through on $4.1 million dollars of authorized expenditures.

When challenged, Jacobs tells me:
“Town received one bid for the first irrigation project on the El Conquistador 18-hole course from an Illinois firm in the amount of $3.7+M. This extremely high cost and lack of bidders has resulted in my decision to postpone the irrigation replacement for this summer. Our Chief Procurement Officer will be reaching out to prospective bidders to find out the optimal time to rebid the project with greater lead time for a bidder to plan, in hopes of a more competitive bid. Increasing construction costs are concerning for other future Town capital projects and will be monitored closely."

There was $4.1 million authorized, and she states that the bid came in at $3.7 million. In other words, the money was there.

Jacobs admits it was her decision to postpone the authorized spending. If she is going to disregard the spending policy set by the Council, she must go before Council for permission, not simply publish her decision in an Executive Report.

Town Manager’s Office Personnel
I stated: “On page 110 of the adopted budget for FY 21/22 there is a breakdown of the personnel allocated to the Town Manager’s office. In this breakdown there is no allocation for the position of CIP Director (Capital Improvement Projects). However, there was a recent Facebook posting advertising a position for a CIP Director -- a position that is not budgeted.”

Jacobs’ response: “The position for CIP Director is a temporary position and is budgeted within the CIP Funds.”

I responded by informing her that temporary or not, I still wanted to know if it was authorized. Jacobs then directed me to the Personnel Schedule found on page 109 of the FY 21/22 adopted budget. I read it and there is no authorization as she states.

However, Town Policy 6, “Unbudgeted Expenses” directs the Town Manager to go to Council for approval for any unbudgeted expenses. Was there Council approval for this unbudgeted position?

If this CIP position is temporary and budgeted within CIP Funds, does this mean that no general funds are being used? Does this position get benefits, such as health and retirement?

Is Jacobs in violation of ICMA ethics?
Tenet 6 of the International County/City Managers Association (ICMA) states: “Recognize that elected representatives are accountable to their community for the decisions they make; members are responsible for implementing those decisions.”

Who’s running the Town?
Why does the elected body allow her to get away with her arbitrary decisions? These decisions are contrary to the policies set forth by Council. If anybody voted for Mary Jacobs to run this Town, please advise me.

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Mike Zinkin and his wife have lived in Oro Valley since 1998. He served on the Oro Valley Development Review Board from 2005-2009, the Board of Adjustment from 2011-2012, and the Town Council from 2012-2016. He was named a Fellow for the National League of Cities. He was a member of the NLC Steering Committee for Community and Economic Development and a member of the Arizona League of Cities Budget and Economic Development Committee. He was an Air Traffic Controller for 30 years. Mike has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge.

DeSimone: Oro Valley Is A Town of "OK"

Not a "Town of Excellence" when it comes to maintaining Naranja Park

The Town of Oro Valley calls itself a "Town Of Excellence." Oro Valley resident Chris DeSimone disagrees. It a "Town of OK".

DeSimone is host of the weekday morning show: Wake Up Tucson. He expressed this view in his remarks to council in March.  He reemphasized it at last night's Oro Valley Town Council meeting.

In March, DeSimone pointed to what he termed “the poor conditions of the fields at Naranja Park” after use on a holiday weekend. At that time, Mayor Winfield directed the town manager to look into it. She responded with a three-page memo that explains this and other matters.

DeSimone read portions of that response at last night's meeting.

Town Manager Jacobs: "The playing fields at Naranja Park are not in the condition we would like them to be"

In the memo, Jacobs identified two reasons why the Naranja Park fields are not in good condition at all times: First, “Naranja [Park] fields are over used... The condition of the turf is largely a function of overuse and lack of down time for remedial work.” The fields were overused because they were fully booked on the holiday weekend to which DeSimone referred. It is the town that does the booking.

Second, the fields are difficult to maintain. They are difficult to maintain because they are built on a sand substrate. When the turf is punched through, the sand comes up. (See panel right)

Jacobs: Problem of overuse will be solved with two new fields

According to Jacobs, the problem will be solved with the addition of the two new fields that are being built at the park.  

We fail to understand the logic of this because these fields will be also be sand substate based. In addition, the added fields will also bring added visitors, which is what the town has stated it wants to do to drive economic activity.  More fields=more use= more visitors.

Two  staff were assigned to maintain all town parks facilities on a "fully booked" weekend

DeSimone also complained about garbage that was left on the field after the holiday weekend. According to Jacobs, that “weekend was a very busy weekend for Naranja Park and Oro Valley as a whole. Every sports field throughout our Parks and Recreation system was booked.” Two staff were on duty to maintain all of the towns facilities over that weekend. Despite that, “we were unable to address all facilities and events to the standards we expect.”

Jacobs offers no solution other than saying that our towns are parks are very popular.

The solution, of course, is to schedule less use of our parks on those very busy weekends or to employ the staff needed to maintain the fields in busy times.

New fields and high standards means more cost

The town of Oro Valley has embarked on a plan to substantially increase its Naranja Park sports facilities. The town is spending millions to build new fields. The Naranja Park fields and the Naranja Park facility will need to be maintained at a very high level to meet Oro Valley's historically high standards. This will come at high cost.

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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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Jacobs Works "Behind Closed Doors" To Craft Economic Development Agreement On Oro Valley Village Center

"Dark of Night" Negotiating
Town manager Mary Jacobs is working "behind closed doors" without council authorization to craft an Economic Development Agreement  ("EDA") between the owner of the Oro Valley marketplace, Town West, and the town of Oro Valley. 

We believe that this agreement relates to the Entertainment District of the proposed Oro Valley Village Center. The cost of that district, according to Town West representative Keri Silvyn, will be from $11-$12 million. It is possible that the EDA may well be for that amount.

Jacobs has been negotiating this EDA since at least the fall of 2020. She has been doing so at a time when the council has yet to approve the many concessions that town staff wants to make regarding this revisioning of the marketplace. We posted about that yesterday.

Only rezoning is supposed to be on the table.. Not "deals"
Indeed, Council has been told that their job at this point is to only discuss the rezoning that has been as requested. Therefore, any EDA between the Town and Town West is premature because it assumes that the council will approve the project as proposed. The council should not be participating in any discussion regarding an agreement on how the Town is going to help make this project financially viable.

Deja Vu 2006: "The Outrageous Giveaway"
We wish to remind everyone of the 2006 "Outrageous Giveaway" involving Oro Valley Marketplace  It was an EDA from which Vestar, the developer and center operator, was to receive 45% of all sales tax revenues during the first ten years,  up to $23.3 million.

In the end, the venture was a miserable failure. In the ten years, the center earned a total of $16.4 million in sales tax revenue, with Vestar getting $7.4 million.

While the Town had agreed to do so, thousands of residents opposed the  "The Outrageous Giveaway." They fought to get the item put on the ballot. It was ultimately approved by the voters, due in part to Vestar's glitzy marketing campaign. However, it was a straight up deal and everyone knew what they were going to get and what it was going to cost. It was not hidden behind closed doors as this one is. (Indeed. LOVE's first post was about this giveaway)

Bohen Asks: Why the secrecy?
Rothchild Responds: Because we can and I recommend it
At last week's Town Council Study Session, Councilmember Tim Bohen asked Town Council Jonathan Rothschild whether keeping these discussions behind closed doors is required by law. Rothschild replied: “What we don’t want to get [into] is a conversation of how much you expect from us or, you know, [what]we want to do because again those are contractual discussions and negotiations. Those are subject to executive session… and what we need to do is to keep [this a] zoning conversation, which is really what tonight’s about separate from that.” (Source: Oro Valley Town Council Study Session, January 19, 4:47:51)

Bohen, once again, asked if this was mandatory. Rothschild stated that it was his strong recommendation. In other words, there is no legal requirement against having public discourse on this.

Council "in the dark"?
We do not know if any council member has been participating in the discussions with Town West on this economic development agreement. We do know, however, that at least one member council, Tim Bohen, has not. Bohen told LOVE: "The draft agreement was never shared with me except a brief view in a meeting with Mary Jacobs near the beginning of my term. And I don’t know if what I was shown is actually current as of today." Bohen asked Town Manager Jacobs for the current draft agreement. As of today, he has not received it.

If Bohen does not know any of the details of the EDA, it is reasonable to assume that the rest of the council does not know the details since "Council members shall be provided equal access to information, documents and materials." (Source: Oro Valley Parliamentary Rules 13.9 INFORMATION)

A pattern of behavior
Jacobs seems to want to keep everything private. And, unfortunately, Mayor Winfield allows her to do so. With Jacobs, the public only finds out what the deal is after the deal is done. By then, there's nothing the public can do about it.

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Vistoso Preserve $1.8 Million Fundraising Target Reaches Million Dollar Mark

"This deal is going to get done"

Mike Ford of The Conservation Fund (“TCF”) updated residents on the status of TCF’s purchase of the former Vistoso Golf Course. “This deal is going to get done.” Ford noted at a Zoom meeting hosted by the group Preserve Vistoso on November 5.

$1 Million raised to date for the purchase of the 202 acres

Ford said that $1 million had been raised to date to fund the purchase. The goal is to raise $1.8 million by the end of the year. Ford believes that the purchase of the land from Rompsen LLC will be completed at that time. TCF will create a conservation easement on the property. 

TCG will employ a third party to that the conservation easement is maintained  in perpetuity. TCF will then donate the land to the Town of Oro Valley where the land will become part of the town’s Parks and Recreation system.

Been a "long road" to get to this point

Ford detailed the path that has been taken to make this purchase a reality. Initially, Rompsen LLC, the property owner, rejected a fair market value offer made by TCF in summer of 2020. That discussion included six acres of land that is zoned for high density residential use.

Negotiations were restarted by the town last spring at the urging of Rancho Vistoso Residents.  Mayor Winfield, Vice Mayor Barrett, Town Manager Jacobs and town outside council Jonathan Rothchild led this

Unlike the  discussion, this discussion separated the six acres of land that is now zoned for his density residential use. The group negotiated on the remaining 202 acres. The fair market value for that property, as agreed to by Rompsen, is a bit less than the $1.8 million being raised. 

Ford stated that the six acres will be sold to a third party by Romspen. That party will develop the land consistent with current HDR zoning.

What Ford did not mention is that the town is a party to the agreement. The details of the town's commitment have yet to be revealed to the public.  

Your help needed
This will be a preserve for all to use, not just those in Rancho Vistoso.  You can help to make it so by donating to TCF. Click here to learn how to do so

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Watchdog Report: Am I The Only One Who Is Disappointed?

Disappointed?

Sometimes things just don't turn out the way we hoped...

Town Staff and Town Counsel act as if Oro Valley is desert water oasis

We’re told to “conserve water” but the town's water director tells us we have plenty of water to accomplish almost unlimited growth.

Really? Apparently Town Water Director Peter Abraham thinks we are an oasis. This is contrary to every publication in the last 12 months informing us of the extreme, prolonged drought conditions. The Council went to the Arizona League of Cities and Towns meeting last month and was briefed by the CAP on the drought issues, and the “Dead Pool” situations at Lake Mead and Lake Powell. With all this information available to the Council, they just approved a BOND to improve the irrigation system on the two golf courses. Is it more important to water golf courses or to water the farms that grow our food and grow feed for cattle.

We have a Town Council that has been factually informed that the potable water being wasted on the Pusch Ridge course this year has exceeded 18 million gallons, and has done nothing, not even a discussion to close the course. As of this writing, no council member has even acknowledged a communication that I sent to them about this subject.

The town's public works director thinks that traffic congestion is good

According to Town Public Works Director Paul Keesler, traffic congestion is good. It makes drivers slow down and, therefore, reduces any collision damage. The fact that it increases pollution and the town’s carbon footprint apparently is of no concern to him. This individual also sees no issues with the development of the Marketplace to include apartments and hotels despite how much traffic and congestion these will add to the community.

The town manager "manages" the town council

In violation of Town Policy, Town Manager Mary Jacobs would not allow two council members to amend an agenda. She has also ignored the Council policy of November 2019 that stated that we would pay for golf improvements on a “pay-as-you-go” basis and not via a bond. She completely ignored the policy and convinced the Council to bond to improve the irrigation on the two 18-hole courses and make improvements to the community center building.

The Community and Economic Development Department has done nothing of substance

Nothing. The department has not bought real wage jobs and real employers into Oro Valley. However, this department, under its prior “here today, gone tomorrow leader", convinced the Council that pre-grading lots would entice big-time employers to locate here, when in actuality, it only increased dust pollution. What a joke. Add to this the fact that the town contributes money to the Sun Corridor to help entice employers, which has shown to be another waste of money.

The barn at Steam Pump Ranch is becoming town offices

The Mayor boasts that his administration is the only Council to pay any attention to Steam Pump Ranch. His council is restoring the garage. However, the original use of the restored garage was intended for the offices of the Oro Valley Historical Society – but the Town Manager, with the concurrence of the Council, amended its usage to allow it to be used for Town Staff offices instead. Once again, the “needs” of the Town Staff come before the needs of Steam Pump Ranch.

Town Council members simply don't communicate with their constituents

We have four elected members of Council that promised to hold “Council on Your Corner” events to give you an opportunity to express your opinions one-on-one. Granted COVID put a dent into this promise, but they could have held zoom meetings. What about now? Massive changes are currently being proposed for the former Oro Valley Marketplace. This would be the perfect time for all seven council members to hold constituent meetings. Why haven’t they done it?

Aren't you disappointed too?