Guest View-Tony D'Angelo: Facts About Golf

Guest view: Facts about golf
I appreciate your post today regarding “pay to play.” There is no problem with a town subsidizing recreational amenities for its residents and to encourage economic activity from them. What we need to get past is this obsession with golf being some sort of bad thing for a community that enjoys the sport.

Resident survey shows interest
The statistically valid survey in 2020 documented that 20% of the residents value golf. That is significant when you compare it to the published national benchmark of 12%.

Early challenges noted
There is no question there were extraordinary costs in the early years after the purchase. The Town had no expertise in managing golf, we were in a recession, and the property had been neglected for years before the sale.

Rounds and revenue under Indigo
During the five plus years under Indigo Golf management, almost 583,000 rounds were played. When including revenues from the Overlook, the average round sold for $52.17. That is consistent with a municipal course.

Operating performance improved
After all operating expenses, the gross profit is $2.79 per round. Indigo’s first year showed a loss of $4.44 per round. Through February of this year, operations are generating $7.24 of gross profit per round. This reflects improved operating efficiency.

Capital investment explained
More than 80% of the capital spent was for the new irrigation systems on the 36 holes. Actual golf-related capital since the acquisition has been just over $11 million, not $25–30 million as has been suggested. The new system replaced a 40-year-old system and is expected to last decades while improving water use efficiency.

Capital treatment matters
Capital should be viewed as an investment and not as an operating expense. If capital is amortized over 30 years using a depreciation model, golf would be in the black by over $1.8 million during the Indigo period. The average allocation of a green fee to cover capital would be about $2.23, or roughly 4%.

Overall conclusion
This is a good example of how the Town confronted a challenge and is now managing it more effectively. Like any recreational business, there will be up and down cycles. The question is whether other pay-for-play amenities should be managed and marketed in ways that produce similar results.
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Tony D'Angelo is a long-time Oro Valley resident and President of the Friends of Pusch Ridge Golf. He is Chairman of the town's Tourism Advisory Commission. The content is an email sent to us. We have published it with his permission.

Golf Pays Its Way, Other Recreation "Pay To Play" Facilities Require Town Subsidies

Only one of three fee-based recreation facilities covers its ongoing operating costs

Oro Valley’s three primary fee-based recreation facilities, Golf, the Community and Recreation Center, and the Aquatic Center, do not perform the same financially. A first-ever Town financial analysis of the town's financial amenities shows that golf is the only one where revenues exceeded operating costs in fiscal year 2024-25. The Community and Recreation Center and the Aquatic Center both required Town funding to operate.

Aquatic Center requires substantial financial support 

The Aquatic Center had a net operating cost of about $1.12 million, with operating costs of about $1.63 million and exceeding  revenue of about $516,000, The Community and Recreation Center had a net operating cost of about $744,000, on $2.32 million in costs and $1.58 million in revenue. Together these "pay for play"  facilities required about $1.86 million in Town subsidy.  At the same time, there were 296 aquatic center paying members and 4,150 Community Center members. That was a subsidy per member of  $3,784 and $179 in 2025, respectively.

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Other recreational assets are free to residents

The analysis included other Town recreational assets: Steam Pump Ranch, Vistoso Trails Nature Preserve, JDK Park, Naranja Park, and Riverfront Park. These facilities generally do not charge user fees and showed net operating costs ranging from about $163,000 for Vistoso Trails Nature Preserve to about $560,000 for Steam Pump Ranch. Staff said that these types of amenities are expected to recover little of their costs because they are open and accessible to the public. According to staff, the value of these assets is not reflected in revenue generation but in community access and use.

Some amenity costs are directly tracked while others are allocated

Costs for major facilities such as golf, the Community and Recreation Center, and the Aquatic Center are largely based on directly tracked revenues and operating expenses. Greater use of allocation was required for parks and other shared services, where costs such as maintenance, utilities, and portions of staffing are not tracked by individual location. In those cases, staff assigned costs using estimates based on factors such as acreage, building size, and staff time. Staff said these allocations provide a reasonable overall picture, though they are not exact.

Analysis did not include estimated economic impact of events

One of the values assumed for the Aquatic Center is that it drives sales and bed tax revenues based on the events that it hosts. The Aquatic Center generates revenue from swim meets, team use, and other events. The report includes those revenues in total operating income but does not isolate how much is attributable to out-of-town visitors or measure any related economic activity, such as spending at local businesses.

Capital spending totaled about $2.9 million, largely tied to "Pay to Play" facility improvements
Capital spending for the recreational amenities included in the analysis totaled about $2.9 million in fiscal year 2024-25. Of that amount, the $2.02 million was reported under golf included approximately $1.2 million for an elevator and entryway project that serves access to the Community and Recreation Center. Other capital spending included and added $160,000 for the Community and Recreation Center, $378,000 for Steam Pump Ranch, and $328,000 for Vistoso Trails Nature Preserve. There was no capital spending for the Aquatic Center, JDKriegh Park, Naranja Park, or Riverfront Park.

Council views analysis as baseline for future funding decisions

The Council took no action after the presentation and asked few questions. Rather, they said that the analysis is a starting point for future budget discussions, noting that it provides a clearer picture of how individual amenities perform financially. Council members said the information will be useful as they consider funding levels, fees, and priorities in upcoming budget cycles. They also indicated interest in additional information, including how recent fee changes may affect future results.

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Publisher's Note: The financial results presented in this article were prepared by Town staff and presented to Council. They have not been independently audited, and we have no basis to challenge their validity. An ad hoc analysis of this type should be viewed as a general picture of results rather than precise measurements, particularly since many costs are allocated rather than directly tracked.

Town Council Approves Shift of Half-Percent Sales Tax to General Fund

Council changes direction of sales tax revenue
Last week, the Oro Valley Town Council voted unanimously to move the half-percent sales tax revenue from the Community Center Fund into the General Fund, while maintaining the Community Center Fund through budgeted transfers from the General Fund. For years, these monies were dedicated to supporting municipal golf, the community center, and some other recreation assets.

Broadening its potential use to all town operations
While the decision may sound like a simple accounting move, it reflects a shift long in the making. The half-percent tax, enacted in 2015 to support early operational deficits at the golf course and community center, was projected to generate about $2 million annually. By 2021, revenues had already grown to more than $2.8 million, and in recent years annual collections have ranged from $2.9 million to $3.9 million, with FY 2025 projected near the high end of that range. Redirecting these funds into the General Fund means a substantial and growing revenue stream will now be available to support overall town priorities, not just recreation-related activities.

Fund will continue to need town financial support

Brings greater financial flexibility while retaining focus on golf and community center operations
Vice Mayor Barrett advanced the idea with the goal of giving the town greater financial flexibility while maintaining transparency about the costs of operating the golf courses and the community center. Barrett argued that this approach allows the Council to fund the community’s highest priorities—“whether that be parks, roads, or police facilities”—while also preserving transparency and historical continuity. “Residents want to know where the money is going, and this structure makes that clearer."

Only one resident spoke on this during the public hearing
This topic was a public meeting. In our June article on this we thought that there would be far more community spokespersons. Only one person spoke, however,  Matt Wood, who serves on the Parks and Recreation Advisory Board spoke in support of what was to be Council’s decision. Wood emphasized trust in the Council’s judgment to use the sales tax revenue wisely across the community. At the same time, Wood underscored that parks and recreation still deserve continued funding attention even under the new arrangement.

These sales tax dollars are pledged ("encumbered") to pay park bonds
Councilmember Mary Murphy floated the idea of “sunsetting the tax when the Naranja Park bond is paid off” so that revenues could eventually be returned to residents. This would be in about 15 years. Barrett noted that the town relies on these monies, pointing out that they not only cover bond payments but also pay for capital expenses, and operating deficits: “These funds are encumbered … they pay for the bond...and they support capital and deficit operations in parks and rec … that’s part of why it’s important that those funds remain.” 

Greene abstains with no comment or reason given
In the end, the Council approved Barrett’s motion by a 6–0 vote. Councilmember Green abstained from voting.  He did not speak on this matter nor did he explain why he abstained.  As a result of the vote, this year, all revenues from the half-percent sales tax will flow into the General Fund. The Community Center Fund will remain in place, with operations and capital needs supported by transfers approved during the annual budget process. This compromise preserves a record of past financial performance while giving the Council broader flexibility to direct revenues to the town’s most pressing needs.
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Council To Consider Folding Community Center Sales Tax Into General Fund In August

Tax no longer need to support municipal golf and the community center
The Oro Valley Town Council will consider folding the one-half percent Community Center sales tax into the town's General Fund when it returns from summer holiday in August. This will make the funds available for any use; not just use for the community fund or other recreational assets. This tax was enacted ten years ago by a 4-3 council vote when the town acquired the 47-hole El Conquistador Golf facility from HSL Properties. The reason for the tax was to provide a stable, dedicated funding source to support the newly acquired community center and golf operations, which were expected to run at a deficit in the early years. The expectation was that the tax would not be needed after that time.  But, as we all know, a tax, once enacted never goes away, 

Mayor’s proposal: Move the tax to the general fund
At last week’s Council meeting, Mayor Winfield proposed folding the tax into the general fund for several reasons:

• The dedicated sales tax has stabilized the finances of the community center and golf operations, which are now performing better and require less support.
• Moving the tax revenue to the general fund allows the Council to allocate funds to the town’s most pressing needs—including public safety, roads, parks, infrastructure, and community services—rather than limiting it to the community center and golf.
• The current arrangement is perceived as benefiting a narrow interest group.  Yet the tax is collected from all residents and visitors. Integrating it into the general fund “reinforces unity and fairness” and reflects a shift to shared community investment.
• This change would increase fiscal flexibility as Oro Valley nears build-out and construction-related revenues decline, positioning the town for long-term financial health.

Council reactions: Range of opinions, but no support for status quo
Council members expressed support for doing something different with the tax revenues. None supported leaving it as a dedicated source for the community center only: 

• Vice Mayor Barrett supported the Mayor’s proposal:  “I am so pleased with how well golf is doing. For the second year in a row we have not relied on any of the tax money, and that’s what it was basically set up to do ten years ago. ” 
• Council Member Murphy floated the idea of dedicating the tax for all parks and recreation programs. 
• Council Member Greene seemed cautious about making a change:  “I think if we go back historically, this money was designated for the community center and for golf and I think that we need to keep that in mind as we begin to spend it on other issues as they come up. So, I’m for really having a full discussion on this and not acting precipitously on it tonight.”
• Council Member Jones-Ivey leaned toward the parks and recreation fund idea but expressed concern about transparency if the money goes to the general fund: “Sometimes when monies go into the general fund, it really in the past has kind of gotten mired so that transparency is lost. … My question would be: How would we then earmark that money going into the general fund so if something is needed in parks and rec, it can come back?”
• Council Member Robb summed up her support for a change stating, “I agree it’s time to share the wealth on this money.” 

August public hearing. ..Active community involvement
The August meeting will be a public hearing on the proposed change. The community center and golf supporters are expected to pack the hearing and advocate for keeping the tax dedicated to their operations. Historically, they have been successful in persuading the Council to continue support. It remains to be seen whether Mayor Winfield will stick to his position or compromise as he has done in the past when face was significant opposition. 

"Putting to bed" a "bone of contention”

Golf and the community center have been a point of contention since former Mayor Hiremath first brought the acquisition to the council in 2014. The hope is that folding the sales tax into the general fund will help reduce this ongoing debate. 

No discussion of permanently sunsetting the tax
One thing the Council will not consider is ending (sunsetting) the community center sales tax. As it stands, this tax means Oro Valley’s sales tax rate is 2.5% is the highest in southern Arizona. This higher rate may contribute to residents and visitors shopping outside of Oro Valley for big-ticket items, as it is less expensive to shop elsewhere.

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Bits and Pieces

Traffic delays expected on Ina at Westward Look today

Drivers should expect traffic delays today at the intersection of Ina Road and Westward Look Drive due to traffic signal repairs. Westbound Ina will be reduced to one lane with a 25 MPH speed limit, and periodic full stops will occur during crane operations. Oro Valley Police will direct traffic while the signal is offline. Motorists are encouraged to use alternate routes and allow extra travel time.

Nine Month Results: Town finances remain stable with a caution

Town staff reported at Tuesday's Budget and Finance Commission meeting that Oro Valley’s financial position remains strong through the first nine months of the fiscal year. Revenues—including sales tax and recreation income—are generally meeting or exceeding budget, while most departments continue to manage expenses at or below expected levels. Staff credited conservative budgeting and a healthy local economy for these results, but cautioned that slower revenue growth may be ahead, reinforcing the need for continued prudent financial management.

Nine Month results: Community Center Fund surplus grows as golf revenues exceed budget

Tuesday, The Parks and Recreation Advisory Board received an update on the nine-month financial results for the Community Center Fund and municipal golf. Staff reported that both areas are performing well above expectations. Membership and program revenues are exceeding budget, golf rounds and revenues remain strong, and overall expenditures are on track or below budget. As a result, the Community Center Fund is now projected to end the year with a significant surplus, growing the fund balance to an estimated $2.3 million.

Staff sees progress toward golf self-sufficiency...possibly freeing funds for other recreation activities one day

Also at this meeting, staff reported that municipal golf operations are now generating an operating profit, thanks in part to strong membership growth and efficient management. Since the town took ownership ten years ago, about $29 million in half-cent sales tax has been collected to subsidize golf and the community center, with cumulative operating losses and major capital investments totaling about $19 million ($10 million each for losses and capital). Now, things may be changing. Staff noted that the next step is to use these operating surpluses to fund ongoing capital improvements, reducing the need to rely on the half-percent sales tax for golf’s capital needs. As golf operations move closer to full self-sufficiency, staff emphasized that more sales tax revenue will be available to support other parks and recreation projects across Oro Valley.

Honor America's Heroes Monday

Memorial Day is more than just a day off—it’s a time to remember and honor those who gave their lives in service to our country. Join the community on Monday from 10 a.m. to noon at the Arizona Heroes Memorial in Naranja Park for a special remembrance event. The ceremony is free and open to all.

OVPOA: Delay in police MOU discussion a good thing

According to Chris Knapp, representative for the OVPOA and FPO (Fraternal Order of Police), removing discussion of the possible wage agreement between the town and OVPOA from last night's council agenda is a good thing.  Knapp noted that there have been discussions with council members and staff and that good progress has been made. Knapp thinks a compromise is at hand.  A new MOU will be presented for approval at the June 4 council meeting.

Vella provides added insights into the Trails Master Plan
On Tuesday, LOVE provided an update on the Town’s Trails Master Plan study. That evening, Town Planning Manager Bayer Vella offered additional insights during a presentation to the Parks and Recreation Advisory Board, expanding on several key areas:

• Funding may be key: Vella noted that Marana dedicates part of its bed tax to trail and open space improvements. Oro Valley may consider a similar approach to fund future trail needs.
• Trail easements required: Much of the well-used trail land north of Big Wash lies on State Trust Land with no public easements. Gaining access will likely require coordination with state and county agencies and possibly purchasing easements.
• Trail difficulty ratings suggested: Board members proposed labeling trails by difficulty, similar to ski runs. Vella confirmed that trail maps will include slope, surface type, and other features to help users—especially families and those with mobility concerns—plan their outings.
• Connectivity gaps identified: Suggestions included creating safer access from the Loop to Catalina State Park, and building a direct connection from Riverfront Park to the Loop—both of which will likely be included in the plan’s recommended actions.
• Volunteer and partner contributions remain vital: The Town has no full-time trail planning staff. Many unpaved trails have been built by developers or volunteers, and that approach will remain important as the system expands.

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