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

Catalina Foothills group opposes Oro Valley annexation efforts

During the public hearing on Oro Valley’s Path Forward General Plan, this past Wednesday, Tom Pugh, speaking on behalf of the Catalina Foothills Association, urged Oro Valley officials to stop pursuing annexation efforts involving nearby unincorporated areas. Pugh said the association represents more than 1,700 homes and does not want to become part of Oro Valley. He stated that letters expressing those concerns had previously been sent to the Town and asked Council to respect the wishes of residents living in the Catalina Foothills area.

Unused Preserve funds redirected to pond irrigation and ADA trails
The Oro Valley Town Council voted Wednesday to use about $150,000 in unspent fiscal 2025-26 Vistoso Trails Nature Preserve funds, plus $50,000 from next year’s allotment, for plant and turf irrigation in the pond area as part of the pond restoration project. Council also approved use of a $136,210 Arizona State Parks grant for ADA trails in the same area. Supporters said doing the irrigation work now, while the pond is being built, would be more cost effective and would make it easier to complete other improvements later. 

Council approves Stonegarden Grant funds for police night vision equipment
Wednesday, the Oro Valley Town Council unanimously approved participation in the Operation Stonegarden grant program, authorizing the Police Chief to enter into an agreement with the Arizona Department of Homeland Security to receive up to $38,808 for equipment. The funding will be used by the Oro Valley Police Department to purchase night vision goggles to support regional law enforcement efforts, including coordinated deployments with U.S. Border Patrol aimed at reducing human trafficking, smuggling, and related criminal activity. The grant is reimbursable and tied to specific federal requirements, with the equipment intended to enhance officer effectiveness in targeted operations.

Town extends agreement with Pima County for animal control services

Also Wednesday, the Oro Valley Town Council approved a one year extension of its intergovernmental agreement with Pima County for animal control services, continuing the current arrangement from July 1, 2026 through June 30, 2027. The agreement does not include a direct contract payment amount. The service model is based on Pima County retaining licensing fee revenues and covering remaining costs through its own general fund, with no change to the existing terms. The extension allows Pima County to continue enforcing local animal control ordinances and providing sheltering and care services within Oro Valley. During public comment, one resident urged the Town to seek stronger enforcement response provisions for neighborhood complaints involving pet waste and animal control issues.

Town terminates contract legal services to consolidate under Town Attorney 

The Oro Valley Town Council approved termination of its contract with Mesch Clark Rothschild for Town Attorney services, following the establishment of an in house Town Attorney position, currently held by Steven Zraick. The change reflects a shift to consolidate legal services under a single office that reports directly to Council. According to the staff report, maintaining both a contract attorney and an in house Town Attorney created potential confusion over roles, raised ethical concerns about who provides legal advice, and could result in unnecessary costs. The contract termination was made by mutual consent and allows the Town to streamline how legal services are delivered going forward.

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