HomeMy WebLinkAboutBudget Records-Town - 6/30/2024TOWN OF ORO VALLEYANNUAL BUDGET FY 2023/24
Photo by: John Byerly
Caymin Hannan, “Pusch On Pusch Up”
ORO VALLEY,
ANNUAL BUDGET 2023 – 2024
Community Vision
Oro Valley is a community dened by the highest s tandards of
environmental integrity, education, infrastructure, services
and public safety. It is a community of people working
together to create the Town’s future with a government that is
responsive to residents and ensures the long-term nancial
stability of the Town.
Mission
Govern eciently, inclusivel y and responsively to promote
community health, safety and a sustainable quality of life for
residents, business and visitors.
Organizational Values
We are strongly committed to:
Honesty, Integrity, Trustworthiness
Openness, Accountability, Transparent Government
Respect for Diversity
Creativity, Teamwork and Continuous Improvement
Excellent Service
Oro Valley strives to be a well-managed community that
provides all residents with opportunities for quality living. Oro
Valley will keep its friendly, small-town, neighborly character,
while increasing services, employment and recreation. The
community, a high regard for public safety and an extraordinary
natural environment and scenic views.
OROVALLEY,
ANNUALBUDGET2017–20 8
CommunityVision
Oro Valley is a community dened by the highest s tandards of
environmental integrity, education, infrastructure, services
and public safety. It is a community of people working
together to create the Town’s future with a government that is
responsive to residents and ensures the long-term nancial
stability of the Town.
Mission
Govern eciently, inclusivel y and responsively to promote
community health, safety and a sustainable quality of life for
residents, business and visitors.
OrganizationalValues
We are strongly committed to:
Honesty, Integrity, Trustworthiness
Openness, Accountability,Transparent Government
Respect for Diversity
Creativity, Teamwork and Continuous Improvement
Excellent Service
OROVALLEY,
ANNUALBUDGET2017–20 8
CommunityVision
Oro Valley is a community dened by the highest s tandards of
environmental integrity, education, infrastructure, services
and public safety. It is a community of people working
together to create the Town’s future with a government that is
responsive to residents and ensures the long-term nancial
stability of the Town.
Mission
Govern eciently, inclusivel y and responsively to promote
community health, safety and a sustainable quality of life for
residents, business and visitors.
Organizational Values
We are strongly committed to:
Honesty, Integrity, Trustworthiness
Openness, Accountability, Transparent Government
Respect for Diversity
Creativity, Teamwork and Continuous Improvement
Excellent Service
Table of Contents
FY 2023/24 Adopted Budget
Introduction Budget Document Guide ............................................................................................... 1 Budget Message ............................................................................................................ 3 Distinguished Budget Award .......................................................................................... 14 “Know Your Town’s Budget” .......................................................................................... 15 Community Profile ......................................................................................................... 17 History of Oro Valley ...................................................................................................... 19 Mayor and Council ......................................................................................................... 21 Organizational Chart ...................................................................................................... 22 General Plan .................................................................................................................. 23 Strategic Plan ................................................................................................................ 24 Fund Structure ............................................................................................................... 36 Financial and Budgetary Policies .................................................................................. 38
Budget Process ............................................................................................................. 51
Financial Overview
Budget Overview ........................................................................................................... 55 Fund Balances ............................................................................................................... 61 Budget Summary ........................................................................................................... 64 Revenue Summary ........................................................................................................ 65 Expenditure Summary ................................................................................................... 67 Revenue Schedule by Fund .......................................................................................... 70 Revenue Sources .......................................................................................................... 78 Expenditure Schedule by Fund ..................................................................................... 86 Expenditures by Department ......................................................................................... 87 Personnel Summary ...................................................................................................... 89 FTE Summary by Fund ................................................................................................. 92 Personnel Schedule ...................................................................................................... 93 Debt Service .................................................................................................................. 100 Debt Service Schedules ................................................................................................ 104 Five Year Forecast ........................................................................................................ 109
Department Budgets
Clerk .............................................................................................................................. 121 Community & Economic Development ........................................................................... 123 Council ........................................................................................................................... 132 Town Court .................................................................................................................... 134 Finance .......................................................................................................................... 137 General Administration ................................................................................................... 139 Human Resources ......................................................................................................... 140 Innovation & Technology ............................................................................................... 142 Legal .............................................................................................................................. 145 Town Manager’s Office .................................................................................................. 147 Parks and Recreation .................................................................................................... 153 Police ............................................................................................................................. 160 Public Works .................................................................................................................. 169 Water Utility ................................................................................................................... 186
Capital Improvement Program
Program Overview ......................................................................................................... 193 Projects by Category ..................................................................................................... 200 Project Descriptions ....................................................................................................... 205
Appendix
Resolution Adoption ...................................................................................................... 232
Auditor General Schedules ............................................................................................. 234 Glossary ......................................................................................................................... 243
TOWN OF ORO VALLEY ANNUAL BUDGET FY 2020-2021
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INTRODUCTION
Budget Document Guide
Budget Message
Distinguished Budget Award
“Know Your Town’s Budget”
Community Profile
History of Oro Valley
Mayor and Council
Organizational Chart
General Plan
Strategic Plan
Fund Structure
Financial & Budgetary Policies
Budget Process
Introduction | Budget Document Guide
Budget Document Guide
The budget document seeks to implement the Town of Oro Valley’s adopted General Plan and Strategic Plan within the boundaries of its available financial resources. The budget is a policy document, financial plan, operations guide
and communication device.
The purpose of this guide is to provide the reader with some basic understanding on the organization of the budget document and what is included in each of the sections.
The budget document is comprised of the following five major areas:
Budget Document Guide
Introduction
The introduction section includes the Manager’s budget message, a “Know Your Town’s Budget” synopsis
document, a community profile and town history, the Town’s Strategic Plan, General Plan, financial policies, fund
structure and the budget process.
Financial Overview
The financial overview section illustrates the total financial picture of the Town, sources and uses of funds, as well as
types of debt issued and their uses.
The Manager’s budget message provides an introduction to the budget. The message outlines the assumptions used
in the development of the budget, goals for the upcoming fiscal year, any new program enhancements or changes
in service levels, and any challenges for the upcoming year.
Also included is a budget synopsis or “snapshot” document called “Know Your Town’s Budget”, a community profile
containing interesting facts about the town, and a history of the town. The section also includes information on the
Town’s elected officials, an organization chart, elements of the Town’s General Plan and Strategic Plan, financial
policies of the Town and the budget development process.
The financial overview begins with the total sources and uses of funds. Summary tables and graphs depict revenue
sources and expenditure categories.
Consolidated financial summaries and schedules provide a look, by major fund levels, at the sources and uses of
funds, beginning and ending fund balances, and explanations of variance in these balances.
The revenue and expenditure section provides a detailed history of sources and uses both at the fund level and the
department level. It also contains a section on revenue sources which discusses their use, assumptions used in
forecasting, and anticipated growth. The expenditure section includes an explanation of year-over-year changes in
expenditure categories.
The personnel summary provides an overview of personnel and employee compensation, staffing levels, employee
benefit matching rates, FTEs per capita and consolidated personnel schedules.
The debt section provides an overview on the types of debt issued by the Town, their uses and future debt
requirements.
The five year forecast discusses the broader economic outlook for the Town and includes five-year forecasts of the
Town’s General Fund, Highway Fund, Capital Fund, and Community Center Fund.
1 Town of Oro Valley FY 2023/24 Adopted Budget
Introduction | Budget Document Guide
Department Budgets
The department budget section contains the operating piece of the budget document. Specifics on types of
services offered, along with associated costs and revenues are found in this section.
Capital Improvement Program (CIP)
The capital improvement section contains information on the projects budgeted in this fiscal year and their
operating impacts on the budget.
Appendix
The appendix section contains several additional documents pertaining to the budget and a glossary of terms.
Each department budget begins with a department overview. Organizational charts and summary budget schedules
are shown for departments with multiple funds, divisions or program areas. Department budgets also contain the
following information:
Accomplishments: Highlights achieved by departments in the previous fiscal year.
Council Focus Area(s) and Objective(s): Tie to the Town’s Council-adopted Strategic Plan and adopted General
Plan
Performance Measures: Performance indicators that assess progress towards Strategic Plan or General Plan goals
and objectives.
Departmental Budgets: Larger departmental budgets are divided into program areas or divisions, which provide
a brief description of each, and the service provided. Department budgets include data on personnel,
expenditures by category and explanations on variances between budget years.
The capital improvement section describes the process and timeline for compiling the CIP budget, a summary of
revenue sources to support the program, and a ten-year CIP plan.
It also includes a description and justification for each of the projects budgeted and their future operating impact.
The appendix section contains the resolution adopting the budget, Auditor General Statements and a glossary of
frequently used terms.
Town of Oro Valley FY 2023/24 Adopted Budget 2
Introduction | Budget Message
Budget Message
Jeff Wilkins, Town Manager I am proud to present the Town of Oro Valley balanced budget for Fiscal Year 2023/2024 (FY 23/24). This budget totals $148.5 million, representing an increase of $785,000, or 0.5% percent more than the adopted FY 22/23 budget of $147.7 million. The General Fund budget totals $55.4 million, a 4.4% increase from the FY 22/23 budget of $53.1 million. This budget reflects the priorities of the Town Council Strategic Plan. The budget process involves the prudent allocation of resources across Town operations to continue and improve the high service levels Oro Valley residents expect in order to live, work, play and prosper in our community. The Town actively monitors and assesses current economic conditions during the development of the annual budget. The Town’s strong financial position is testament to conservative revenue forecasting and judicious resource allocation. Economic factors that shaped the development of the FY 23/24 budget included risk of mild recession; higher interest rates and the associated impacts on development; and continued, persistently high inflation. While local sales tax and state-shared revenue collections have grown with inflation, the Town has, in some cases, experienced exponential cost increases in capital projects and fleet replacements, which is resulting in some resource strain that is impacting the Town’s ability to fund its growing capital needs. The FY 23/24 Adopted Budget includes capital improvements totaling $47.8 million, making up 32.2% of the overall budget. During this budget year, the Town will be completing significant additional recreational amenities that expand the offerings provided to both residents and visitors. The Adopted Budget reflects the following overarching themes, further explained later in this message:
• Addressing notable cost increases in capital projects and sustained high prices in supplies and services.
• Adding personnel to meet growing service demands.
• Implementing a continued, robust capital investment strategy utilizing the remaining Parks and Recreation $25 million bond proceeds and other one-time revenues.
• Funding step and pay increases per the Town’s recently completed classification and compensation pay plan to ensure the organization attracts and retains quality employees. LOCAL, STATE AND NATIONAL TRENDS The Town is cautiously optimistic heading into the FY 23/24 economy. Job growth and the labor market remain strong, and recent population growth estimates for Arizona are at their fastest pace since 2007. At the same time, higher interest rates have resulted in a significant slowdown in residential permitting and development activity. Regardless of whether the larger economy experiences a slowdown in growth or a modest recession, Arizona remains poised to endure the coming year with only mild effects. The outlook for the overall state economy is positive, with the baseline forecast calling for job growth of 1.5% to 1.6% over the next two years and continued personal income and retail sales growth. Inflation in the Phoenix area outpaced the nation for some time. The Town’s overall local sales tax collections are expected to grow 4.8% from the FY 22/23 budget. State-shared revenues are expected to grow 25.6%, the bulk of which is attributable to an increase in the allocation of shared income taxes to cities and towns. This increase, however, is temporary and will be offset in coming years with legislative reductions in personal income tax rates. The Town is taking advantage of this temporary increase by investing these additional revenues towards projects in the Capital Fund for one-time needs. The Town has been analyzing potential impacts of future residential buildout within existing incorporated boundaries, as remaining developable land continues to shrink. The march towards buildout increased during the COVID-19 pandemic, as the Town saw explosive growth in single family residential (SFR) permits, hitting a 15-year high of 497 in FY 20/21. This permitting acceleration, coupled with rising interest rates, is having an impact on current permitting activity. The Town is forecasting 116 and 119 SFR permits for FY 22/23 and FY 23/24, respectively, reflecting 10-plus year lows. Increased construction valuations are muting what would typically be larger reductions in revenue from the reduced permitting activity. The Town relies upon this activity to help fund capital projects. Any large commercial projects are
3 Town of Oro Valley FY 2023/24 Adopted Budget
Introduction | Budget Message
also considered one-time, generating critical funding for Town capital project needs as well. A buildout analysis is
underway, intended to provide Town management and Council with data and projections necessary to further address and plan for the fiscal impacts of buildout.
MAJOR BUDGET CHANGES EXPLAINED O&M Cost Increases
The Adopted Budget reflects an increase of 6.3% percent, or $2.2 million, in O&M costs. In FY 22/23, the Town experienced considerable cost inflation in areas such as gasoline, public safety equipment, field supplies, technology,
professional services and more across the organization. The Town has yet to see any measurable relief of inflationary pressures. For FY 23/24, areas of further increase include software and technology, medical claims costs and Central
Arizona Project water costs. Revenue increases due to inflation have helped to relieve some of this pressure, but nonetheless, it does place strain on resource allocation during the budget process. Capital Investments
As mentioned previously, costs for capital projects are higher than predicted just a year ago. Asphalt-related projects have seen exponential cost growth. The state’s shared gas taxes are not sufficient to cover these increases. Infusion of
General Fund resources will eventually be necessary, should high costs continue. Availability of contractors and subcontractors continues to be unpredictable, which can significantly impact the timing and cost of capital investments. The FY 23/24 Adopted Budget includes additional project contingency funds budgeted in the Capital Fund and Water Utility Fund to ensure capital projects can still move forward should the Town’s updated estimates not align with future
market conditions.
In keeping with the Town Council’s financial policies, the Adopted Budget includes a transfer of $10 million in excess General Fund reserves to the Capital Fund to fund capital projects included in the current and future budgets. New Positions
The Town continues to maintain a conservative approach to adding new personnel, but workload increases have necessitated the addition of five new full-time and two part-time positions. Innovation and Technology – The Adopted Budget includes two new full-time positions in the Innovation & Technology Department. An additional business systems analyst is necessary to support the growing use of technology in Town operations, with special emphasis on the needs of the Police Department. A security and compliance administrator will protect the organization by implementing and managing cybersecurity tools, as well as respond to and remediate cybersecurity incidents and threats. This position will also ensure the Town’s IT systems are compliant with recommended best practices and that action plans are completed for all regulatory agencies. Public Safety – The Adopted Budget includes an additional police officer in the Police Department, which will allow the Police Chief to keep up with increases in calls for service in the community and maintain overall response times. Parks and Recreation – In Parks and Recreation, a new full-time parks maintenance worker II will accommodate the addition of the Vistoso Trails Nature Preserve, while a part-time park monitor will accommodate new acreage and facilities coming online with the completion of the latest phase of the Naranja Park improvements. Public Works – The Adopted Budget also includes a new full-time transit supervisor to assist in driver management and review, service scheduling, and operations and program compliance, ensuring we continue meeting the needs of our community for this critical service. This position will be 85% funded through the Regional Transportation Authority (RTA). Town Court – The Adopted Budget includes a new part-time Court security manager to replace the phased-out security services provided by Arizona Rangers. Savings from the phase-out of these services will help offset the cost of the new
Town of Oro Valley FY 2023/24 Adopted Budget 4
Introduction | Budget Message
position. This higher-level position is needed to assist the Court in keeping the building, court staff and patrons safe, as
well as maintaining compliance with the security standards set by the Arizona Supreme Court. Staff Retention and Attraction
The nation’s labor market remains tight and, and since the Town is a service-based organization, recruiting and retaining top talent is foundational to our ability to provide quality public services. Last year, the Town finalized a comprehensive
classification and compensation study that adjusted employee pay grades to remain competitive. The FY 23/24 Adopted Budget continues this commitment to employees with step increases for sworn Police Department staff and annual pay adjustments for all eligible Town employees.
The Town has experienced recent growth in claims costs in the employee health self-insurance fund. Fortunately, positive trends in claims costs in years prior have resulted in a healthy, stable reserve balance in the fund. In addition,
an ongoing emphasis on wellness and early detection for Town employees and their dependents encourages a proactive approach to managing personal health. As a result, the Town will see only a minimal increase in premiums for FY 23/24. The Town’s benefit advisor has expressed that the self-insurance fund reserves remain healthy and are adequate to address any unexpected claims. SUPPORTING THE TOWN COUNCIL FY 23/24 – FY 24/25 STRATEGIC PLAN
The leadership of the Mayor and Town Council provide the foundation and direction for the work of Town staff. In addition
to the day-to-day work of good government like responding to emergency calls, conducting building inspections, processing business licenses, and ensuring residents and visitors have quality water, the elected body sets a robust
number of two-year priorities for further emphasis. The priorities of the FY 23/24 - FY 24/25 Council Strategic Plan reflect the following overarching strategic focus areas:
• Economic Vitality
• Culture and Recreation
• Public Safety
• Roads, Water and Town Assets
• Land Use and Design
• Efficient and Effective Government
• Financial Stability and Sustainability Under the guidance of the Mayor and Town Council, the Town of Oro Valley has a demonstrated history of responsible budgets, strong reserve funds, conservative financial projections and continuous improvement. The FY 23/24 Adopted Budget continues to build upon that foundation and is structurally balanced, meaning one-time revenues are used for one-time investments—not for supporting ongoing operations. Department directors continued their practice of being prudent in making budget requests necessary to support operations and collaborated fully to ensure the budget is balanced. Strategic Investments The Adopted Budget includes funds that support the Council’s Strategic Plan priorities and focus areas. Economic Vitality – The adopted Community and Economic Development (CED) budget focuses on continued support of the department’s OVNextSteps initiatives with the Business Retention and Expansion program and includes continued capacity for targeted tourism attraction and sponsorship opportunities. The budget also includes a rollover of the $25,000 retail market assessment, which will help the Town target specific retailers in the future to help fill vacant spaces. In addition, the Town will continue to partner with the Oro Valley Chamber of Commerce to conduct the annual Business Summit. Culture and Recreation – The Adopted Budget focuses on (1) investing in and maintaining Oro Valley recreational assets, (2) investing in and maintaining the Oro Valley trail system, and (3) increasing resident involvement in multi-generational recreation opportunities and programming.
5 Town of Oro Valley FY 2023/24 Adopted Budget
Introduction | Budget Message
The Town will spend the remaining proceeds from its $25 million Parks and Recreation bond issuance in the coming fiscal year. Supplemented with Capital Fund reserves, Community Center Fund reserves, parks impact fees and federal
funding, amenities include additional multi-purpose fields, a splash pad, pickleball courts, skate park and pump track, golf course irrigation replacement, multi-use path connections, and Community Center parking lot reconstruction and
expansion.
The master plan process continues for the 202-acre Vistoso Trails Nature Preserve acquired in July 2022. Significant community input has been part of the process, which will be the foundation of future investment priorities for the property. The preserve provides an abundance of wildlife and nature viewing for residents and visitors of all ages who can look forward to expanded opportunities to enjoy the property in the coming fiscal year and into the future. The addition of ADA
restrooms and other capital improvements for the preserve total $330,000 in the Adopted Budget.
One of the most visited recreation and historic properties, Steam Pump Ranch, will see continued investments with the restoration and preservation of the BBQ and Bunk Houses, located within the historic core of the property. Design will also commence on the Tack Building renovation. This project will provide indoor storage space for historically significant artifacts and collections. Completion of the Garage renovation during FY 22/23 has allowed the Recreation and Culture Division to move into the building and begin expanding programming for visitors, including targeted programs for seniors.
Contractor operations at the Community Center have been in the black since FY 21/22, which has allowed the Town to direct unencumbered resources in the Community Center Fund to partially offset the costs of the golf course irrigation
project that will be completed in FY 23/24. The Adopted Budget also includes 36-hole turf reduction around the greens, lifecycle replacement of bunker sand, Cañada Course pathway improvements, Pusch Ridge facility ADA and code compliance updates. The Community Center continues to grow in membership. Members as well as visitors will benefit from continued improvements in the facility. ADA improvements and installation of an elevator are included in the Adopted Budget, as
well as replacement of cardio equipment and completion of a recreation lounge geared towards teenage patrons. Additional facility improvements include roof replacement, restaurant cooler/freezer improvements, and fire alarm system upgrades. The Town will be celebrating its 50th anniversary in 2024. Included in the Adopted Budget is capacity of $35,000 to celebrate this exciting milestone throughout the year. Public Safety – The Adopted Budget continues to prioritize funding for the health, wellness, and safety of Town first responders, including ample training, up-to-date equipment, health and wellness investments, as well as a focus on community education and awareness. Another area of focus for our Police Department is accreditation, which furthers the department’s implementation of best practices and ensures continued checks and balances in operations and processes. Included in the Adopted Budget is an investment in our Police evidence facility to gain Property and Evidence accreditation from the Arizona Law Enforcement Accreditation Program (ALEAP). This accreditation establishes best practices for evidence storage and will eventually be a required state accreditation. The department is taking a proactive approach to earning the accreditation this fiscal year. Also included in the budget is a reclassification of a current records specialist to an accreditation, audits and inspections coordinator. This position will be responsible for managing the department’s ALEAP accreditation, Property and Identification Accreditation through the International Association for Property and Evidence, and Public Safety Answering Points (PSAP) accreditation. Planning and discussions have been set in motion to address the Police Department’s need for an improved main station. The department has outgrown the current facility, and it is ill-suited to meet the requirements and demands of the current workforce. This project is of utmost importance, and a plan with options will be forthcoming to address challenges as well as recommend potential funding for the new or improved facility. Part of the overall public safety ecosystem includes the Town Court and Legal Services. The Adopted Budget includes $1.6 million for an expansion and improvement of the Town’s Court building. This project will address critical lobby
Town of Oro Valley FY 2023/24 Adopted Budget 6
Introduction | Budget Message
deficiencies and space constraints that will vastly improve the overall efficiency and safety of Court operations. An
additional $1.5 million will be budgeted in FY 24/25 to complete the project. Roads, Water and Town Assets – The Adopted Budget includes resources to continue funding the Town’s highly successful Pavement Preservation Program at $2.5 million, ensuring the Town continues to maintain its overall pavement
condition (OCI) index of 76. This amount is a $650,000 increase over FY 22/23, mainly due to increasing asphalt costs. As roads continue to age, these investments are crucial to managing long-term pavement investments. Several major
road repairs and intersection improvements are included, which are noted below under the capital overview. The operating budget for the Water Utility Fund is increasing 4.0%, or roughly $710,000, due primarily to increases in Central Arizona Project (CAP) water delivery costs related to the Colorado River Tier 2a shortage. Water system capital
improvements total $14.1 million in the Adopted Budget, which includes $7.2 million for partnered and independent components of the Northwest Recharge, Recovery and Delivery System (NWRRDS) project, a partnership with the Town
of Marana and Metro Water District. The NWRRDS project is a multi-year project that, when completed, will allow the Utility to increase utilization of the Town’s CAP water allocations in the future. Of the $7.2 million budgeted for the NWRRDS project, $4.3 million is funded from water impact fees. Water impact fees will also fund $3.7 million in the Adopted Budget for the La Cañada booster station expansion, a project that will improve the delivery of CAP water to northern areas of the Water Utility’s system. In total for FY 23/24, the Water Utility has budgeted $5.1 million for CAP water.
In addition, maintaining Town facilities remains a continuing priority. Emergency generator replacements at Town Hall
will be completed in the Adopted Budget. The Facilities Division of Public Works also includes $362,000 for a variety of smaller projects not included in the Capital Fund, such as facility painting, electrical and lighting work, ADA improvements, flooring replacement and restroom refurbishment. These projects are tasks identified in the Facilities 10-year Maintenance and ADA Plan. Land Use and Design – Nearly $300,000 is included in the Adopted Budget to begin the process of updating the Town’s
General Plan, which includes contract personnel, consulting, interactive website costs and community engagement efforts. The Adopted Budget includes funding to complete the housing study that began in FY 22/23, which will help determine the types of residential opportunities necessary to successfully promote a thriving and diverse economic base. In addition, funding of annexation efforts continues in the Adopted Budget. Efficient and Effective Government – Funds are included in the Adopted Budget to implement digital dashboard and information-sharing platforms to enhance community engagement and understanding of Town operations and resource allocation. The Town continues to apply Peak Performance process improvement tools to daily tasks and projects. These tools, training, and methodologies touch all Town departments. Resources are again included in the Adopted Budget to continue this highly effective initiative. Since inception, the Peak Performance initiative has resulted in a wide range of implemented process improvements across the organization, resulting in considerable savings in ongoing time and materials. Financial Stability and Sustainability – As noted earlier, the Adopted Budget includes a transfer of $10 million in excess General Fund reserves to the Capital Fund, providing needed resources for Council priorities as well as normal maintenance and replacement projects. The Town is experiencing higher costs and some resource strain for capital projects, and will continue the approach of conservative revenue forecasting and mindful allocation of resources. Such an approach has served the Town well and resulted in regular outperformance to budget and healthy reserve levels. Also noted previously is the residential buildout analysis that will be completed in 2023, providing the Town with critical planning data and projections. Revenue diversification is a key component to financial stability and sustainability, and staff is in the process of reviewing recreation fees, which for the Aquatic Center in particular, have not increased in ten years. Staff intends to present proposed increases to Council in FY 23/24. Other Regional Partnerships The Adopted Budget includes funds to continue Town partnerships with the Oro Valley Chamber of Commerce ($42,500), the Children’s Museum Oro Valley ($75,000), the Southern Arizona Arts and Cultural Alliance ($50,000) and
7 Town of Oro Valley FY 2023/24 Adopted Budget
Introduction | Budget Message
the University of Arizona Center for Innovation at Oro Valley ($30,000). Funding for the Town’s destination marketing
organization, Visit Tucson, has been budgeted at a continued $410,000 in FY 23/24.
With the Town’s partnership with the Regional Transportation Authority (RTA), the Adopted Budget provides the necessary local match to acquire seven replacement busses for the Sun Shuttle Dial-a-Ride system. The transit system
ridership continues to grow, and the $211,200 match will facilitate the purchase of more than $1,056,000 worth of vehicles through the ADOT grant program.
CAPITAL INVESTMENTS
Capital Fund
With more than $300 million in Town assets, continuing investments in existing infrastructure is vital. The Adopted Budget
includes a robust Capital Improvement Program to address roadway repair and maintenance, building maintenance, infrastructure improvements and water system enhancements. The Town Council’s financial policies include a
requirement that the Town set aside at least five (5) percent of sales tax revenues for the Capital Fund annually, which is projected at approximately $1.5 million for FY 23/24. An additional $8.5 million is included in the Adopted Budget, for
a total amount of $10 million. Expenditures in the Capital Fund total $23.4 million for FY 23/24, which includes $13.0 million for Council-approved investments in Naranja Park.
The following descriptions are highlights of some of the Capital Fund projects. Those that include carryover from the
previous budget are noted with an asterisk (*). The rest of the capital projects can be found in the Capital Improvement Program (CIP) section of the Adopted Budget.
Naranja Park Improvements* $13.0 million Continued master plan implementation
Golf Course Irrigation Replacement $2.0 million La Cañada Course
Community Center Elevator and ADA Improvements* $1.6 million Full elevator and lowered entrance to the facility Town Court Expansion* $1.6 million Building expansion and space improvements
Vehicles – New and Replacements* required for added staff $1.2 million Non-Enterprise Fund vehicle replacements and new vehicles Multi-Use Paths (MUPs)* $877,590 Installation of the La Cañada and Naranja Drive MUPs Community Center Parking Lot* $589,920 Community Center parking lot reconstruction and expansion Emergency Generators* $364,384 Town Hall emergency generator replacements
Public Works Laydown Yard* $200,000 Laydown yard improvements previously located at Naranja Park The Capital Fund has a contingency of $2.5 million budgeted this year to ensure there is capacity to respond to the continuing uncertainty and volatility of the construction market. Community Center Fund
Town of Oro Valley FY 2023/24 Adopted Budget 8
Introduction | Budget Message
The Adopted Budget includes $1.7 million in capital projects proposed in the Community Center Fund. The following are
highlights of those capital projects. The rest can be found in the CIP section of the budget. Those that include carryover from the previous budget are noted with an asterisk (*).
Cañada Course
Pathway Improvements $550,000 Crack-seal, skin patch and surface treatment for Cañada Course cart paths
Vistoso Preserve Improvements* $330,000 Master plan and restroom refurbish for the Vistoso Trails Nature Preserve Pusch Ridge Facility
ADA/Code Compliance* $285,000 ADA improvements at the Pusch Ridge facility to include tennis restrooms
Community Center Roof Replacement $198,000 Replacement of flat roofing material at the Community Center Bunkers and Turf Reduction $100,000 Addition of bunker sand and reduced turf landscaping with irrigation project
The Community Center Fund also includes several necessary operating capital projects for the Community Center
building and Pusch Ridge facility, including Pusch Ridge tennis bleacher demolition, facility landscaping and safety improvements, as well as pool lighting and deck maintenance. Transportation and Drainage Infrastructure The Adopted Budget includes significant funding of $5.4 million for numerous road projects. As mentioned previously,
the cost of most roadway projects has grown exponentially due to asphalt price increases, which is placing some strain on the Town’s available resources to fund all roadway project needs. The Pavement Preservation Program is included at $2.5 million, an increase of $650,000 over FY 22/23. Also included is a $1 million mill and overlay for Rancho Vistoso Boulevard from Vistoso Highlands Drive to the Honey Bee bridge; carryover of the Westward Look improvements at approximately $845,000; and Lambert Lane reconstruction from La Cholla Boulevard to the western Town limits for $388,000. Details on other projects can be found in the CIP section of the budget. Fleet Vehicle costs are another area that has seen notable increases with inflation. Fortunately, the annual reserve program that the Town began nearly ten years ago provides considerable continued funding for a majority of the Town’s vehicle replacements. The Town exercises prudent and mindful consideration for the remaining additional needs beyond what the reserve program currently provides. The FY 23/24 Adopted Budget in the Capital Fund includes funding of $1.2 million for routine replacements and includes carryover of $244,000 for four vehicles that could not be purchased this fiscal year due to supply chain issues. Of the $1.2 million, $800,000 is for replacement and outfitting of 11 Police vehicles. The remaining funding of $158,000 is for two Parks and Recreation vehicles, one Street Maintenance vehicle and one Inspection and Compliance vehicle. Capacity for Transit vehicles is included in the Grants and Contributions Fund, as 80% of the replacement costs for these vehicles is funded through federal grants. The total for Transit vehicle replacements is $1.5 million, with $1.2 million in grant funding. The budget for Transit vehicles includes carryover of $450,000 for expected delivery delays with supply chain constraints. Water Utility vehicle replacements total $110,000 and include carryover of one vehicle from FY 22/23. Finally, $118,000 is included for new vehicles for the additional police officer and parks maintenance worker II in the Adopted Budget. Water Utility The Adopted Budget includes $14.2 million for Water Utility capital projects. Of this amount, $9.1 million is funded with Water Utility impact fees, while $5.1 million is funded with revenues from the Water Utility operating fund. The FY 23/24 budget for the partnered portion of the Northwest Recharge Recovery and Delivery System (NWRRDS) totals $3 million, and is included in the Impact Fee Fund to begin the forebay and reservoir construction. A total of $4.2 million is included
9 Town of Oro Valley FY 2023/24 Adopted Budget
Introduction | Budget Message
in the budget for the independent portion of the NWRRDS project. The Adopted Budget in the Water Utility Impact Fee
Fund also includes $3.7 million for expansion of the La Cañada booster station and $1.1 million to complete the equipping of the La Posada and Steam Pump wells. Details can be found in the CIP section. FINANCIAL OVERVIEW
Below are two charts depicting the total FY 23/24 Adopted Budget of $148.5 million by category and fund.
$49.5M, 33.3%
$43.1M, 29%
$36.9M, 24.8%
$11.1M, 7.5%
$8M, 5.4%
Capital
Personnel
O&M
Contingency Reserves
Debt Service
$0 $10 $20 $30 $40 $50 $60Millions
FY 23/24 Adopted Budget by Category
$55.4M, 37.3%
$25.9M, 17.4%
$21.4M, 14.4%
$13.6M, 9.2%
$8.9M, 6.0%
$6.7M, 4.5%
$4.8M, 3.2%
$4.8M, 3.2%
$4.1M, 2.8%
$2.1M, 1.4%
$0.6M, 0.4%
$0.2M, 0.1%
General Fund
Capital Fund
Water Utility Fund
Impact Fee Funds
Community Center Fund
Highway Fund
Benefit Self Insurance Fund
Grants & Contributions
Debt Service Funds
Stormwater Utility Fund
PAG/RTA Fund
Misc Funds
$0 $20 $40 $60
Millions
FY 2023/24 Adopted Budget by Fund
Town of Oro Valley FY 2023/24 Adopted Budget 10
Introduction | Budget Message
General Fund
The General Fund budget totals $55.4 million (including contingency reserves of $5 million and excluding interfund
transfers of $12.3 million), and overall is $2.3 million or 4.4% more than the current year budget of $53.1 million. The General Fund has a planned use of excess reserves to fund identified one-time projects and initiatives. The following are key revenue provisions included in the General Fund budget:
• In total, FY 23/24 General Fund revenues are $6.7 million or 13.3% higher than FY 22/23 budgeted General Fund revenues.
• FY 23/24 local sales tax collections in the General Fund are $1.1 million or 4.5% higher than FY 22/23 budget figures, which is due largely to price inflation and the economic recovery from the pandemic.
• State-shared revenues are $5.3 million or 30.4% higher than FY 22/23 amounts. These revenue sources are impacted by state revenue collections, legislative actions and population figures.
• Licenses and permit revenues are $507,000 or 22.8% less than the adopted FY 22/23 budget due to less commercial building activity projected for the coming year.
• Charges for Services are $158,000 or 5.2% higher than the adopted FY 22/23 budget. Primary drivers for this increase are Parks and Recreation-related revenues as well as increased administrative support charges to the Town’s enterprise funds. The following are key expenditure provisions included in the General Fund budget:
• Personnel costs for FY 23/24 total $35.7 million, which is $776,000 or 2.2% higher than the FY 22/23 budget. This figure includes new positions, step increases for sworn Police positions, and 4.25% pay increases for all eligible Town positions.
• Department O&M budgets increased about $1.6 million or 13.4%, a combination of increased prices for technology, supplies, and vehicle maintenance. Additionally, there is about $300,000 budgeted for costs related to development of the Town’s new General Plan.
• There is a budgeted transfer of $10 million to the Capital Fund. This amount reflects 5% of estimated General Fund sales tax collections, plus an additional $8.5 million, per Town policy.
The estimated year-end reserve balance in the General Fund (excluding contingency) for FY 23/24 is $17.7 million or 35.2% of the expenditure budget. The Town’s adopted policy level is 30%. Water Utility Fund
Revenues for the Water Utility Fund are budgeted at $19.4 million, which is a $654,000 or 3.5% increase from the adopted FY 22/23 budget, due to a projected increase in water sales, including a 5% approved increase in potable water
rates.
Expenses for the Water Utility Fund are budgeted at $24.9 million, which is a $1.1 million, or 4.6% increase from the adopted FY 22/23 budget. This increase is primarily due to operating cost increases, including increased water resource
costs. Capital expenses are detailed in the CIP section of the Adopted Budget document. 10-Year Capital Improvement Program (CIP)
Town Council financial policies require the development of a 10-year Capital Improvement Program, which is reviewed and modified every year based upon needs and projected funding. The full 10-year plan projects a need for $320.6
million in funding through FY 32/33. Total funding allocated to CIP projects for FY 23/24 is $47.8 million, $10.4 million of which is funding carried forward from the prior year for ongoing budgeted projects. Highlights of the 10-year CIP plan
include $78.6 million for potential new municipal facilities and equipment, $59.1 million for Parks and Recreation related amenities, $29.6 million for the Water Utility NWRRDS project, $29.3 million in continued pavement management and
preservation, $60.9 million for various road widening projects, $19.4 million for bridge deck repairs, and $20.6 million for
11 Town of Oro Valley FY 2023/24 Adopted Budget
Introduction | Budget Message
road reconstruction and/or improvements. Additional details regarding CIP projects and project funding are included in
the CIP section. CONCLUSION
This Adopted Budget document is a direct reflection of the efforts and many hours contributed by staff from all Town departments, as well as from the Town Council and residents. There is significant cross-departmental collaboration that
occurs to work towards building a budget that strives to meet community and organizational needs, while also bearing in mind the resource challenges we face. It is this exceptional collaboration and effort from our staff and the support of
our Executive Leadership Team that results in an adopted budget that hopefully reflects the desires and expectations of the Town Council and Oro Valley community. I especially want to recognize my budget team for their extraordinary work
and countless hours in preparing the budget: Senior Budget Analyst Christopher Hutchison, Deputy Finance Director Wendy Gomez, Chief Financial Officer David Gephart, Management Analyst Karl Shaddock and Chief Innovation Officer Chuck Boyer.
Respectfully submitted,
Jeff Wilkins Town Manager
Town of Oro Valley FY 2023/24 Adopted Budget 12
TOWN OF ORO VALLEY ANNUAL BUDGET FY 2020-2021
THIS PAGE INTENTIONALLY LEFT BLANK
13 Town of Oro Valley FY 2023/24 Adopted Budget
GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished Budget Presentation Award
PRESENTED TO
Town of Oro Valley
Arizona
For the Fiscal Year Beginning
July 01, 2022
Executive Director
The Government Finance Officers Association of the United States and Canada (GFOA) presented an
award of Distinguished Budget Presentation to the Town of Oro Valley, Arizona for its annual budget
for the fiscal year beginning July 1, 2022.
In order to receive this award, a governmental unit must publish a budget document that meets
program criteria as a policy document, as an operations guide, as a financial plan, and as a
communication device.
The award is valid for a period of one year only. We believe our current budget continues to conform
to program requirements, and we are submitting it to GFOA to determine its eligibility for another
award.
Town of Oro Valley FY 2023/24 Adopted Budget 14
KNOW YOUR TOWN’S BUDGET
TOWN OF ORO VALLEY | FY 2023/24 BUDGET
Fiscal Year 2023/24 budget is in the amount of $148.5 million; a $785,000, or 0.5% increase from the adopted FY 2022/23
budget totaling $147.7 million.
TOTAL SOURCES
TOWN-WIDE BY CATEGORY
TOWN-WIDE BY CATEGORY
FY24 CIP BUDGET BY CATEGORY
TOTAL USES
CAPITAL IMPROVEMENT PROGRAM (CIP)
THE TOWN DOES NOT LEVY A PROPERTY TAX
$44.5M
30%
$21.4M
45%
$47.8
32%
$30.1M
20%
$14.1M
29%
$21M
14%
$27.3M
19%
$5.4M
11%
$15.2M
10%
$13.7M
9%
$2.8M
6%
$11.3M
8%
$16.1M
11%
$3.6M
8%
$12.5M
8%
$7.3M
5%
$0.4M
1%
$11.1M
8%
$6.3M
4%
$0.1M
0%
$9M
6%
$1.9M
1%
$8M
5%
$1.4M
1%
$6.3M
4%$3.9M
3%$1.5M
1%
$1M
1%
Budgeted Fund Balance
Sales Taxes
State Shared Revenue
Water Sales
Charges for Services
Miscellaneous
Grants and
Reimbursements
Fines, Licenses & Permits
Impact Fees
Parks & Recreation
Water System
Streets/Roads
Other Public Facilities
Vehicle Replacements
Stormwater
Public Safety
Capital Improvements
Police
Water Utility
General Government
Parks & Recreation
Contingency
Public Works
Debt Service
Innovation & Technology
Community & Economic
Development
Stormwater
Town Court
FY24 Budget Millions
Budgeted Fund Balance 44,462,876 $44.5M 29.9%
Sales Taxes 30,124,334 $30.1M 20.3%
State Shared Revenue 27,287,830 $27.3M 18.4%
Water Sales 16,060,000 $16.1M 10.8%
Charges for Services 13,719,757 $13.7M 9.2%
Miscellaneous 7,265,241 $7.3M 4.9%
Grants and Reimbursements 6,339,761 $6.3M 4.3%
Fines, Licenses & Permits 1,867,118 $1.9M 1.3%
Impact Fees 1,362,473 $1.4M 0.9%
148,489,391 $148.5M
FY24 Budget Millions
Capital Improvements 47,771,435 $47.8M 32.2%
Police 21,001,948 $21.0M 14.1%
Water Utility 15,236,316 $15.2M 10.3%
General Government 12,537,682 $12.5M 8.4%
Parks & Recreation 11,255,838 $11.3M 7.6%
Contingency 11,071,610 $11.1M 7.5%
Public Works 9,035,121 $9.0M 6.1%
Debt Service 7,957,564 $8.0M 5.4%
Innovation & Technology 6,271,309 $6.3M 4.2%
Community & Economic Development 3,882,445 $3.9M 2.6%
Stormwater 1,457,461 $1.5M 1.0%
Town Court 1,010,662 $1.0M 0.7%
148,489,391 $148.5M
FY24 Budget Millions
Parks & Recreation 21,441,089 $21.4M 44.9%
Water System 14,069,792 $14.1M 29.5%
Streets/Roads 5,427,534 $5.4M 11.4%
Other Public Facilities 3,569,820 $3.6M 7.5%
Vehicle Replacements 2,818,200 $2.8M 5.9%
Stormwater 365,000 $0.4M 0.8%
Public Safety 80,000 $0.1M 0.2%
FY2023/24 Total CIP $47,771,435 $47.8M
15 Town of Oro Valley FY 2023/24 Adopted Budget
THE TOWN BUDGET: PLANNING FOR THE FUTURE
The budget reflects the careful allocation of available resources towards the services our residents, businesses
and visitors value and deserve. The budget is also a long-range planning tool that allows the Town of Oro
Valley to review the community’s goals and objectives, evaluate and determine what is required to meet those
objectives, and develop an implementation strategy.
CAPITAL INVESTMENTS
The Town’s budget once again reflects a robust capital investment strategy using one-
time revenues to complete the Parks and Recreation bond-funded projects, fund the
Town’s highly successful Pavement Preservation Program that maintains our high-quality
roads, deliver additional CAP water to residents and businesses, and ensure Town
facilities are in optimal condition for public use and safety.
RECREATION AND CULTURE
The Town will spend the remaining proceeds from its $25 million Parks and
Recreation bond issuance in FY 2023/24. Supplemented with Capital Fund reserves,
Community Center Fund reserves, parks impact fees and federal funding, Naranja Park
amenities include additional multi-purpose fields, a splash pad, pickleball courts,
skate park and pump track. Community Center improvements include golf course
irrigation replacement, multi-use path connections, and parking lot and tennis court
reconstruction and expansion.
The master plan process continues for the 202-acre Vistoso Trails Nature Preserve
acquired in July 2022. ADA restrooms and other capital improvements for the preserve
are included in the FY 2023/24 budget. Continued investment in the historical Steam
Pump Ranch property will include the completion of the BBQ and Bunk House
restoration and design of the Tack Building renovation. The Community Center, Aquatic
Center, and golf courses will also see numerous equipment and facility upgrades and
replacements to enhance and improve residents’ experience.
PUBLIC SAFETY
Funding public safety continues to be one of the Town’s top priorities, with capacity
included in the budget for training, up to date equipment and vehicles, health and
wellness investments, and a focus on community education and awareness. The Police
Department will proactively further best practices by achieving accreditation from the
Arizona Law Enforcement Accreditation Program in the FY 23/24 for the Town’s evidence
facility. Part of the overall public safety ecosystem includes the Town Court and Legal
Services, and FY 23/24 will see the commencement of a $3.1 million expansion and
improvement of the Town’s Court building to address critical lobby deficiencies and
space constraints and vastly improve the efficiency and safety of Court operations.
GENERAL PLAN UPDATE
Nearly $300,000 is included in the FY 2023/24 budget to begin the process of updating the
Town’s General Plan, including contract personnel, consulting, interactive website costs
and community engagement efforts. Following an extensive and inclusive process, the
updated plan will be brought to voters in the fall of 2026.
FINANCIAL STABILITY AND SUSTAINABILITY
The Town is primarily supported by sales tax collections and state-shared revenues,
and does not levy a property tax. Long-standing conservative and structurally sound
budget practices contribute to healthy reserves, safeguarding the Town and allowing it to
continue providing the high level of services our residents expect and deserve. The Town’s
AA+ debt rating saves the Town and its residents money on debt issuances. Strategic Plan
objectives include prioritizing financial stability by evaluating costs, as well as current and
potential new revenue sources, and an update of the Town’s annexation strategies.
HOW IS THE BUDGET BALANCED HOW IS THE BUDGET BALANCED
AND HOW ARE FUND BALANCES USED?AND HOW ARE FUND BALANCES USED?
The FY 2023/24 Adopted Budget of $148.5
million comprises 17 separate funds, each with
its own balanced budget. Each fund contains
its own ”savings” account, otherwise known
as its fund balance. When revenues are less
than expenditures, the Town draws from its
fund balance. For FY 2023/24, the Town plans
to spend approximately $33.4 million from its
overall beginning fund balance total of $87
million, leaving $68.6 million on hand at year
end. These are planned uses of funds that have
been building up over a period of time being
used primarily to cash-fund one-time capital
projects and initiatives. In FY 2023/24, the Town
is planning to utilize a fund balance of about $5.2
million in the General Fund.
The Town of Oro Valley does NOT levy a
property tax; however, Oro Valley property
owners pay more than $31 million every year in
property taxes to Pima County and other taxing
districts (school districts, fire districts, etc.).
Town residents and visitors pay approximately
$30 million in local sales taxes to Oro Valley
each year.
WHAT KINDS OF WHAT KINDS OF
TAXES DO ORO VALLEY TAXES DO ORO VALLEY
RESIDENTS PAY?RESIDENTS PAY?
• 4% utility tax (~$3.5 million/year)
• 2.5% retail tax and 2.5%
restaurant/bar tax (~$11 million/
year)
• 2.5% + 6.0% hotel and bed tax
(~$3 million/year)
• 4.0% construction tax (~$4-7
million/year)
• All other categories (~$2 million/
year)
Town of Oro Valley FY 2023/24 Adopted Budget 16
Introduction | Community Profile
Oro Valley, Arizona
Climate
When it comes to climate, Oro Valley is one of the sunniest, most comfortable places in the country. High temperatures average 83.4 degrees while lows average 53.8 degrees.
Principal Economic Activities
• Biotechnology/medical
• Recreation/resort/leisure
• Arts and culture
Basic Information
Founded: 1881 Distance to Major Cities: Incorporated: 1974 Phoenix 109 miles, Tucson 3 miles County: Pima Legislative District: 9, 11 Congressional District: 1 Form of Government: Council – Manager
Population 2000 2010 2020
Oro Valley 29,700 41,011 47,070
Pima County 843,746 980,263 1,043,400 Arizona 5,130,632 6,392,017 7,151,502
Source: US Census Bureau
Age & Gender Composition Male 48.4% Female 51.9% Median Age 53.9 Under 5 years 3.3% 5 to 9 years 5.6% 10 to 14 years 5.6% 15 to 19 years 4.7% 20 to 34 years 12.4% 35 to 44 years 9.3% 45 to 54 years 10.2% 55 to 64 years 14.5% 65 + years 34.6%
Source: US Census Bureau 2021 ACS
Labor Force 2000 2010 2020 2022
Civilian Labor Force 15,073 18,264 19,591 19,873 Unemployed 389 1,233 1,251 718 Unemployment Rate 2.6% 6.8% 6.4% 3.6% Source: U.S. Bureau of Labor Statistics | Local Aurea Unemployment Survey (LAUS)
Education Attainment
Source: US Census Bureau
2nd Safest City in Arizona SafeWise, 2023
Arizona's Best Small City WalletHub, 2017
One of America’s 10 Safest Suburbs Movoto Real Estate, 2014
Best Place in Arizona to Raise Kids Bloomberg Businessweek, 2013
Oro Valley is located in northern Pima County approximately three miles north of the Tucson city limits. Nestled between the Catalina and Tortolita mountain ranges, the town sits at an elevation of 2,620 feet and covers more than 36 square miles.
One of the safest places to live in Arizona National Council on Home Safety and Security, 2017
Oro Valley
Phoenix
Tucson
Oro
Valley
56.0%Pima
County
34.4%
Arizona
31.2%
Bachelor's Degree or Higher
17 Town of Oro Valley FY 2023/24 Adopted Budget
Introduction | Community Profile
Source: US Census Bureau 2021 ACS
Major Employers Roche Tissue Diagnostics
Honeywell Aerospace
(unincorporated Pima County)
Oro Valley Hospital
Amphitheater School District
Town of Oro Valley
El Conquistador Tucson, A Hilton
Resort
Casa de la Luz Hospice
Simpleview
Meggitt Securaplane
Splendido at Rancho Vistoso
Community Facilities
Oro Valley is home to more than 440 acres of parks, a community
and recreation center, a competition-level aquatic center, an
archery range, lighted ball fields, multi-use fields, tennis courts and
an accessible playground. In addition to aquatic events, Oro Valley
hosts a number of sporting events, including triathlons, duathlons
and marathons. Fire services are provided by Golder Ranch Fire
Department, while law enforcement services are provided by the
Town of Oro Valley Police Department.
Home Values
Less than $50k 1.4%
$50k to $99k 1.9%
$100k to $199k 6.8%
$200k to $299k 30.7%
$300k to $499k 43.2%
$500k to $999k 14.9%
$1M or more 1.2%
Source: US Census Bureau 2020 ACS
Taxes Property Tax Rate (per $100 assessed valuation) Elementary/High Schools $5.16
Countywide $6.54
Fire District $2.61
Town of Oro Valley $0.00
Total $14.31
Source: Pima County Treasurer’s Office Sales Tax City/Town 2.5%
County 0.5%
State 5.6%
Source: League of Arizona Cities and Towns, Arizona Dept of Revenue
5.0%
5.1%
5.3%
9.8%
13.7%
15.8%
20.3%
9.9%
15.2%
Less than $15k
$15k to $25k
$25k to $35k
$35k to $50k
$50k to $75k
$75k to $100k
$100k to $150k
$150k to $200k
$200k or more
Houshold Income
Town of Oro Valley FY 2023/24 Adopted Budget 18
Introduction| History of Oro Valley
History of Oro Valley
The area of Oro Valley has been inhabited intermittently for nearly two thousand years by various groups of people. The Native American
Hohokam people lived in the Honeybee Village located in the foothills of the Tortolita Mountains on Oro Valley's far north side around 500 AD. Hohokam artifacts are still being discovered in the Honeybee Village site that the Hohokam inhabited continuously for nearly 700 years.
Early in the 16th century, Native American tribes known as the Apache
arrived in the southern Arizona area, including Oro Valley. These tribes inhabited the region only a few decades prior to the arrival of the Spanish conquistadors, including Francisco Coronado. The Spanish established forts in the area, including the Presidio at Tucson (1775)
beginning in the late 16th century. Arizona Territorial Period Beginning in the 19th century, Americans increasingly settled in the Arizona Territory, following the Mexican-American War and the subsequent Gadsden Purchase that included the area of southern
Arizona. George Pusch, a German immigrant, settled in the area of Oro Valley in 1874 and established a cattle ranch. This ranch was unique because it utilized a steam pump to provide water, eventually popularizing Pusch's property as the Steam Pump Ranch on the
Cañada del Oro. The steam pump was one of only two in the Arizona Territory. Pusch's ranch provided respite for settlers and travelers entering and leaving the Tucson area. Pusch Ridge is named in honor of George Pusch. Ranching in the area continued to flourish as greater numbers of Americans settled in the Arizona Territory. Large
ranching families in the Oro Valley area included the Romeros and the Rooneys. Gold rushers into the American West also were attracted to southern Arizona, where gold was said to be in abundance in and around the Santa Catalina mountains north of Tucson. Fueled by the legend of a lost fabulous gold mine sealed with an iron door in the Santa Catalina mountains, prospectors in search of gold trekked through the Oro Valley area focusing their attention along the Cañada del Oro washbed. Post-World War II Period After World War II, the Tucson metro area experienced dramatic population growth, impacting Oro Valley as well. In the early 1950s, the Oro Valley Country Club opened at the base of Pusch Ridge, affirming the area's future as an affluent community. Although one tract housing development was built in the area in the early 1950s, the majority of the original homes in the Oro Valley area were built by individual landowners on large lots in a low-density residential style. Founding of the Town The community continued to grow gradually, and area residents increasingly desired local control of the land in the area. In the late 1960s, incorporation became a greater focus in Oro Valley. Tucson Mayor James M. Corbett, Jr. expressed great interest in expanding the Tucson city limits to the far north side of Pima County. Corbett vowed to bring the Oro Valley area into Tucson "kicking and screaming," alluding to the reservations Oro Valley residents expressed about joining Tucson. A petition to incorporate began to circulate in Oro Valley. The Pima County Board of Supervisors officially refused to allow Oro Valley to incorporate, and litigation followed. Ultimately, in 1974 a group of area residents successfully incorporated the Town of Oro Valley, then only 2.4 square miles in size. Oro Valley was centered primarily around the Oro Valley Country Club and Canyon del Oro High School. The Town began with a population of nearly 1,200. The map on the following page depicts Oro Valley’s growth since its inception.
19 Town of Oro Valley FY 2023/24 Adopted Budget
Introduction| History of Oro Valley
Town of Oro Valley FY 2023/24 Adopted Budget 20
Introduction | Mayor and Council
Mayor and Council
Oro Valley’s Mayor and Council are committed to providing high-quality municipal services and responsible development. Through the Town Manager, the Mayor and
Council provide policy direction by adopting rules, regulations, and procedures to meet community needs. The Mayor and Council remain accountable and accessible to the residents through their commitment to full, honest, and timely communication.
Joe Winfield, Mayor Term Expires: Nov 2026
Steve Solomon, Councilmember Term Expires: Nov 2024
Harry “Mo” Green II, Councilmember
Term Expires: Nov 2024
Melanie Barrett, Vice Mayor Term Expires: Nov 2026 Joyce Jones-Ivey, Councilmember Term Expires: Nov 2026
Josh Nicolson, Councilmember Term Expires: Nov 2026
Timothy Bohen, Councilmember Term Expires: Nov 2024
21 Town of Oro Valley FY 2023/24 Adopted Budget
Introduction | Organizational Chart
The Town Council consists of the mayor and six councilmembers elected to represent the town and serve staggered
four-year terms. The organizational structure of the Town, as shown below, was devised to enable an efficient division of labor while affording oversight and accountability in order to carry out the strategic goals and objectives set by the
Town Council.
Boards
Adjustment
Parks & Recreation
Mayor & Town Council
Commissions
Budget and Finance
Historic Preservation
Planning and Zoning
Stormwater Utility
Water Utility
Citizen Advisory
Groups
Town Manager
Legal Services
Town Attorney
(Contract)
Town Magistrate
Police Deputy Town Manager
Water Utility
Parks & Recreation
Public Works
Town Clerk’s Office
Finance
Human Resources
Community &
Economic Development
Town Manager’s Office
Innovation &
Technology
Town Court
Oro Valley Residents
Police Chief
Key position
Department
Town of Oro Valley FY 2023/24 Adopted Budget 22
Introduction | General Plan
General Plan
Arizona State law requires all cities, town and counties in Arizona to prepare, update or readopt a document known as a General Plan every 10 years to guide and inform critical decisions about a community’s future and quality of life. Although the General Plan addresses immediate concerns, it focuses primarily on the future of the community, particularly on future improvements, land development and growth. The adoption or re-adoption of the General Plan must be approved by the affirmative vote of at least two-thirds of the members of Town Council and ratified by voters. The current General Plan (also referred to as Your Voice, Our Future) was adopted and ratified in 2016 and is summarized below:
ORO VALLEY’S VISION FOR THE FUTURE
Oro Valley strives to be a well-managed community that provides all residents with opportunities for quality living. Oro Valley will keep its friendly, small-town, neighborly character, while increasing services, employment and recreation. The Town’s lifestyle continues to be defined by a strong sense of community, a high regard for public safety and an extraordinary natural environment and scenic views. GUIDING PRINCIPLES
Focus on community safety and maintain low crime
Preserve the scenic beauty and environment
Keep the unique community identity as a special place
Create a complete community with a broad range of shopping, dining and places to gather
Minimize traffic and increase ways to get around Town
Manage how we grow and maintain high design standards
Grow the number of high-quality employment opportunities
Keep Oro Valley a family-friendly community
Support and build on high quality of schools
Provide more parks, recreation and cultural opportunities for all ages
Promote conservation of natural resources
Maintain financial stability
Land Use & Design Development, Growth & Special Areas Infrastructure
VISION AND GUIDING PRINCIPLES
GOALS COMMUNITY ENVIRONMENT DEVELOPMENT
POLICIES AND ACTIONS
Economy Complete Community Town Services
Sonoran Desert Resources Water Resources Cultural Resources Clean Environment
23 Town of Oro Valley FY 2023/24 Adopted Budget
STRATEGIC PLAN
FY 23/24 - FY 24/25
ORO VALLEY TOWN COUNCIL
Town of Oro Valley FY 2023/24 Adopted Budget 24
25 Town of Oro Valley FY 2023/24 Adopted Budget
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INDEX
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OVERVIEW
ORO VALLEY’S VISION FOR THE FUTURE
YOUR VOICE, OUR FUTURE
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Town of Oro Valley FY 2023/24 Adopted Budget 26
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(0"-
Strengthen assistance to support and
retain local businesses.
(0"-
Attract, expand, and retain primary
employers to encourage growth and
development of job opportunities.
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FOCUS AREA 1: ECONOMIC VITALITY
27 Town of Oro Valley FY 2023/24 Adopted Budget
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(0"-
Attract, expand, and retain retail, food
service, and hospitality opportunities in
commercial centers.
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(0"-
Increase the number of residents and visitors
who choose Oro Valley as a premier place to
dine, shop, play, and stay.
Town of Oro Valley FY 2023/24 Adopted Budget 28
(0"-
Invest in and maintain OV
recreational assets that provide
opportunities for residents to
connect with each other, nature, and
their community (i.e., Aquatic Center,
Community Center, golf courses,
historic sites, parks, trails, etc.).
(0"-
Invest in and maintain the OV trail
system for accessibility, to best
serve the needs of the community,
and as a way to connect with
neighbors and nature.
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FOCUS AREA 2: CULTURE AND RECREATION
29 Town of Oro Valley FY 2023/24 Adopted Budget
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(0"-
Increase Oro Valley residents’
involvement in multi-generational
recreation opportunities and
programming.
Town of Oro Valley FY 2023/24 Adopted Budget 30
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(0"-
Strengthen strategies that
keep Oro Valley as one of
the safest communities in
Arizona.
(0"-
Invest in the health and
wellness of OVPD employees.
(0"-
Strengthen the OV
justice system, including
coordination between the
OVPD, Legal Services, and the
Town Court.
FOCUS AREA 3: PUBLIC SAFETY
31 Town of Oro Valley FY 2023/24 Adopted Budget
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(0"-
Invest in current and future
OV transportation networks
and quality infrastructure
(i.e., bridges, Dial-a-Ride,
roads, Sun Shuttle, etc.).
(0"-
Deliver a safe, reliable, and
sustainable water supply that
meets the long-term needs of
the community.
(0"-
Maintain and improve the
community’s infrastructure
by ensuring the effective
utilization of Town and
regional resources.
FOCUS AREA 4: ROADS, WATER, AND TOWN ASSETS
Town of Oro Valley FY 2023/24 Adopted Budget 32
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(0"-
Maintain and enhance the character
of the community regarding
development, recognizing the
importance of natural and open spaces.
FOCUS AREA 5: LAND USE AND DESIGN
1033 Town of Oro Valley FY 2023/24 Adopted Budget
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(0"-
Strengthen community engagement with a
focus on clear and accessible information.
(0"-
Foster and cultivate the Town’s culture of
continuous improvement to enhance customer
experience, improve organizational efficiency,
and increase value through innovation.
(0"-
Attract and retain skilled and knowledgable
employees.
(0"-
Invest in the health and wellness of Town
employees.
FOCUS AREA 6: EFFECTIVE & EFFICIENT GOVERNMENT
Town of Oro Valley FY 2023/24 Adopted Budget 34
FOCUS AREA 7: FINANCIAL STABILITY AND SUSTAINABILITY
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(0"-
Safeguard the Town’s financial
resources to ensure high service
levels are met and maintained
for current and future residents.
35 Town of Oro Valley FY 2023/24 Adopted Budget
Introduction | Fund Structure
The Town’s accounting and budget structure is segregated into various funds. In governmental accounting, a fund is a separate, self-balancing set of accounts that are created and maintained for specific purposes. All of the Town’s funds are appropriated in the annual budget.
The General Fund is the primary operating fund of the Town and is set up to account for the resources devoted to finance services traditionally associated with local government. Police, parks and recreation, development services, human resources, finance, legal services, and court are some examples of services in the General Fund. Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for a specific purpose. The Highway User Revenue Fund accounts for the Town’s share of motor fuel tax
revenues, which are expended on street/roadway construction, maintenance and improvements. The Grants & Contributions fund assists in demonstrating spending compliance with grants and awards, while also assisting the Town in ensuring current and future budgets are structurally balanced. The Community Center Fund accounts for the operations of the Town’s Community Center and contract-managed golf. The Seizure & Forfeiture Funds account for
state and federal police seizures and forfeitures received by the Town. Capital Project Funds are used to account for revenue received and expenditures related to infrastructure improvements such as streets, water, buildings and park facilities. Examples of revenue sources include impact fees, the issuance of bonds, outside funding and special assessments. The Town has a dedicated Capital Project Fund to track various capital expenses. Additionally, most of the other capital project funds consist of impact fee funds. The
PAG/RTA Fund, which is used to manage the collection and expenditure of roadway grant funds from the Pima Association of Governments (PAG) and the Regional Transportation Authority (RTA) is also a capital project fund. Debt Service Funds are used to account for the payment of principal and interest on general long term debt obligations that are not serviced by the General, Special Revenue and Enterprise Funds. It does not include contractual obligations accounted for in the individual funds.
Town of Oro Valley Budgetary Funds
Governmental Funds Proprietary Funds
General Fund Capital Project Funds Debt Service Funds Enterprise Funds
Highway User
Grants &Contributions
Community Center
Seizures & Forfeitures
Water Utility
Stormwater Utility
Municipal Debt ServiceCapital Fund
PAG/RTA
Water Resource System Development Impact Fee
Recreation In Lieu Fee
Parks & Recreation Impact Fee
Roadway Development Impact Fee
Police Impact Fee
Special Revenue Funds Internal Service Funds
Benefit Self Ins.
Town of Oro Valley FY 2023/24 Adopted Budget 36
Introduction | Fund Structure
Enterprise Funds are funds in which the services provided are financed and operated similarly to those of a private
business. User fees are established to ensure that revenues are adequate to meet all expenses. The Town’s major enterprise fund is the Water Utility Fund, which is used to account for the costs to operate, construct and finance the
town’s water system. The Town’s non-major enterprise fund is the Stormwater Utility Fund, which accounts for costs of maintaining the town’s stormwater drainage system.
Internal Service Funds are funds that account for services provided to other divisions and departments within the Town
government. The Benefit Self Insurance Fund is used to manage costs related to the Town’s self-funding of health insurance. Budget Basis of Accounting The Town’s budget basis of accounting is based on the modified accrual basis. This method recognizes revenues in the period that they become available and measurable, and expenditures are recognized in the period the associated liability is incurred. The Town’s governmental funds consist of the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Project Funds. Governmental fund type budgets are developed using the modified accrual basis of accounting. Under the modified accrual basis, revenues are accrued if they are earned and will be collected within 60-days after the fiscal year-end. This method differs from Generally Accepted Accounting Principles (GAAP) used for preparing government-wide financial statements in the Town’s Annual Comprehensive Financial Report (ACFR). The Town’s proprietary fund budgets consist of the Water, Stormwater, and Benefit Self-insurance Funds and are adopted using the full accrual basis of accounting. The major differences between the budget and the Annual Comprehensive Financial Report are: • Certain revenues, expenditures and transfers are not included in the budget, but are accrued and reported in
the Annual Comprehensive Financial Report. For example, increases or decreases in compensated absences, payroll accruals and changes in fair market value are not included for budget purposes but are presented in the Annual Comprehensive Financial Report. • Grant revenues are budgeted on a modified cash basis. GAAP recognizes grant revenues on an accrual basis. • Capital outlays in the Enterprise Funds are fully expenses in the year acquired in the budget but are recorded as assets along with associated depreciation expenses in the Annual Comprehensive Financial Report. • Debt service principal payments in the Enterprise Funds are expenses in the budget but reported as reduction of long-term debt liability in the Annual Comprehensive Financial Report. • For budget purposes the Benefit Self Insurance Fund presents claim expenditures on a short-term basis while in the Annual Comprehensive Financial Report, the claim expenditures also include a long-term accrual for “incurred, but not reported” (IBNR) claims. All actual amounts in the budget document are shown on the budgetary basis to facilitate meaningful comparisons. The differences between modified accrual basis and GAAP accounting listed above are similar to those of many other local governments. These differences exist largely because they provide a more conservative view of revenues and expenditures and because they provide greater administrative controls.
37 Town of Oro Valley FY 2023/24 Adopted Budget
Introduction | Financial and Budgetary Policies
Financial and Budgetary Policies
The Town of Oro Valley has an important responsibility to its residents to carefully account for public funds, manage its finances prudently and plan for the adequate funding of services desired by the public. Sound financial policies help ensure the Town’s capability to adequately fund and provide government services desired by the community. The policies contained herein are designed to foster and support the continued financial strength and stability of the Town of Oro Valley. Following these policies enhances the Town’s financial health as well as its image and reputation with residents, the general public, bond and credit rating agencies and investors. The policies serve as guidelines for the Town’s overall fiscal planning and management. In addition, both the Government Finance Officers Association (GFOA) and the National Advisory Council on State and Local Budgeting (NACSLB) recommend formal adoption of financial policies by the jurisdiction’s governing board. The most recent Town Council amendment and re-adoption of the policies occurred on January 4, 2023 per Resolution (R)23-01. The Town is in compliance with all adopted financial and budgetary policies. 1-1 Annual Budget Process
1.0 Operating Budget and Capital Budget – The operating budget and capital budget shall serve as the annual financial plan of the Town. The budget shall provide staff with the resources necessary to accomplish the Town Council’s determined service levels, and will serve as the policy documents of the Town Council for implementing its Strategic Leadership Plan and other plans as periodically adopted by the elected body or voted on by the community.
2.0 Budget Timelines – The Town Manager shall annually prepare and present a Town Manager’s Recommended Budget to Town Council at least two months prior to the beginning of a new fiscal year. Based upon feedback from Town Council, a Tentative Budget shall be developed and approved by Town Council prior to the beginning of a new fiscal year establishing the maximum level of spending for the new fiscal year. The final budget shall be adopted by Town Council no later than July 31. The Town Manager shall meet all budget requirements specified in State Law. 3.0 Balanced Budget – The proposed budget will be balanced for the ensuing fiscal year. Deferrals, short-term loans, or one-time revenue sources will be avoided as budget balancing techniques. 4.0 Contingency – The budget shall include contingency appropriation to provide for unanticipated increases in service delivery costs, emergencies, and needs that may arise through the fiscal year. The contingency appropriation may only be expended upon Town Council approval.
5.0 Current Funding Basis – The Town shall budget and operate on a current funding basis. Expenditures shall be
budgeted and controlled so as not to exceed expected current revenues. The Town shall strive to achieve a structurally balanced budget whereby recurring expenditures are funded exclusively with recurring revenues.
6.0 Budget Development – The Town will use strategic, multi-year fiscal planning, conservative revenue forecasts and a program/performance-based budgeting method. This method requires each department to establish fiscal year goals and objectives that will be evaluated to determine the effectiveness and efficiency of both department and Town resources, such process and procedure to be up to the Town Manager. Utilization of the program/performance budget format will provide a basis for evaluation of service and other impacts of potential increases or decreases in funding. The budget will incorporate the best available estimates of revenues and expenditures.
7.0 Budget Management – The Town Council shall delegate authority to the Town Manager in managing the budget after it is formally adopted, including transfer of funds within programs, categories, and departments. The Town Manager may further delegate levels of authority for the daily operation of the budget. 8.0 Level of Budget Adoption – The annual budget shall be adopted at the fund level, except in the General Fund where it shall be adopted at the department level. To provide sufficient control and accountability, budgets shall be prepared and monitored by major expenditure categories (personnel, operations and maintenance, capital outlay, debt service). 9.0 Appropriations – All appropriations shall lapse at the end of the fiscal year. There is no carryover of appropriations from year to year.
Town of Oro Valley FY 2023/24 Adopted Budget 38
Introduction | Financial and Budgetary Policies
1-2 Strategic Long-Range Financial Planning
1.0 Five-year Forecast of Revenues and Expenditures – A five-year forecast of revenues and expenditures, to include a discussion of major trends affecting the Town’s financial position, shall be prepared in anticipation of the annual budget process. The forecast shall also examine critical issues facing the Town, economic conditions, and the outlook for the upcoming budget year. 1-3 Fiscal Monitoring & Reporting 1.0 Financial Status and Performance Reports – Monthly reports comparing expenditures and revenues to current budget, noting the status of fund balances to include dollar amounts and percentages, and outlining any remedial actions necessary to maintain the Town’s financial position shall be prepared for review by the Town Manager and Town Council. The monthly reports shall also contain forecasts, updated on a quarterly basis, projecting expenditures and revenues through the end of the fiscal year.
2.0 Status Report on Capital Projects – A summary report on the contracts awarded, capital projects completed, and the status of the Town’s various capital programs will be prepared at least quarterly and presented to the Town Manager and Town Council. 3.0 Compliance with Financial Policy Statements – Financial policies will be reviewed annually by the Town Council and updated, revised or refined as deemed necessary. Policy statements adopted by the Council are guidelines and
occasionally exceptions may be appropriate and required. However, exceptions to stated policies will be specifically identified and the need for the exception will be documented and fully explained 1-4 Banking and Investment
1.0 Objective – While conforming to federal, state, and other legal requirements the primary objectives of the Town of Oro Valley investment activities shall be: Safety, Liquidity and Yield. These objectives shall be achieved through mitigating credit risk and interest rate risk. 1.1 Safety – The principal goal of the investment program is the preservation and safety of the capital of all Town Funds. Each investment transaction shall seek to first ensure that capital losses are avoided, whether they are from security defaults or erosion of market value.
1.2 Liquidity – The Town’s investment portfolio shall remain sufficiently liquid in order to meet the operating
requirements that may be reasonably foreseen. The investment portfolio should be composed in such a way that securities mature concurrent with cash needs to meet required demands. Furthermore, since all possible
cash demand cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity). Alternatively, a portion of the portfolio may be placed in money market mutual
funds or local government investment pools which offer same-day liquidity for short-term funds. 1.3 Yield – The Town’s investment portfolio shall attain the highest rate of yield through budgetary and economic cycles taking into account the constraints imposed by its safety objectives, cash flow considerations and state laws that restrict the placement of certain public funds. Yield on investment is of secondary importance
compared to the safety and liquidity objectives above. The investments are limited to relatively low risk securities in anticipation of earning a fair yield relative to the risk being assumed. Securities shall generally be held until maturity with the following exceptions: 1.3.1 A security with declining credit may be sold early to minimize loss of principal.
1.3.2 A security swap that would improve the quality, expected return, or target duration in the portfolio. 1.3.3 Liquidity needs of the portfolio require that the security be sold.
1.4 Credit risk – The Town will minimize credit risk by:
1.4.1 Limiting investments to the types of securities listed in this investment policy. 1.4.2 Pre-qualifying financial institutions, brokers/dealers, intermediaries, and advisors with which the Town will do business in accordance to this policy.
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1.4.3 Diversifying the investment portfolio so that the impact of potential losses from any one type of security or
from any one individual issuer will be minimized. 1.5 Interest rate risk – The Town will minimize interest rate risk by:
1.5.1 Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity.
1.5.2 Investing operating funds primarily in shorter-term securities, money market mutual funds or similar
investment pools limiting the average maturity in the portfolio in accordance with this policy.
2.0 Delegation of Authority – Authority to manage the investment program is granted to the Town Finance Director/CFO, under the supervision of the Town Manager. Responsibility of the operation of the daily investment program is delegated to the Finance Director/CFO, who shall carry out the operation of the investment program consistent with this investment policy. No employee may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Finance Director/CFO.
3.0 Prudence – The standard of prudence to be used by the Finance Director/CFO shall be the "prudent person" standard and shall be applied in the context of managing the overall portfolio. The Finance Director/CFO, shall exercise due diligence and not be liable for losses. The "prudent person" standard with respect to Town Investments shall be the exercise of judgment and care, with prudence, discretion and intelligence that a person would exercise in their own affairs, not for speculation, but for investment, considering the primary objectives set forth in Section 1-1 of this policy.
4.0 Ethics and Conflicts of Interest – Employees involved in the investment process will refrain from conducting personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees will disclose any material interests in financial institutions with which they conduct business. They will disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees shall refrain from undertaking personal investment transactions with the same individual that conducts business with the Town.
5.0 Safekeeping and Custody – To protect against potential fraud or embezzlement, the investments of the Town shall
be secured through third-party custody and safekeeping procedures. Ownership shall be protected through third-party custodial safekeeping. The Town’s external auditor shall review safekeeping procedures annually.
5.1 Internal Controls – The Finance Director/CFO is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the Town are protected from loss, theft or misuse. The controls shall be designed to prevent the loss of public funds arising from fraud, employee error, third party misrepresentation, unanticipated changes in financial markets or imprudent actions by employees and officers
of the Town. 5.2 Independent Financial Institution - The Town shall contract with a single, independent financial institution for custodial and safekeeping services for the Town’s investment portfolio. 5.3 Delivery vs. Payment – All trades of marketable securities will be executed by delivery vs. payment (DVP) to ensure that securities are deposited in an eligible financial institution simultaneously to the release of funds. 5.4 Authorized Financial Dealers and Institutions – The Finance Director/CFO will review the financial condition and registration of qualified bidders. Financial institutions and broker/dealers who would like to become qualified bidders for investment transactions with the Town must supply the following:
• Audited financial statements
• Proof of National Association of Securities Dealers (NASD) certification
• Proof of stated registration
• Certification of having read and understood and agreeing to comply with the Town’s investment policy
• Evidence of adequate insurance coverage An annual review of the financial condition and registration of all qualified financial institutions and broker/dealers will be conducted by the Finance Director/CFO. If the Town utilizes an external investment advisor, the advisor may be authorized to transact with its own Approved Broker/Dealer List on behalf of the
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Town. If the investment advisor utilizes its own Broker/Dealer List, the advisor will perform due diligence for
the brokers/dealers on its Approved List. 6.0 Investment Types – Suitable and authorized investments include the following:
6.1 Authorized investments for the debt service reserve funds shall be consistent with those set forth in the trust indentures or the long-term debt issuances.
6.2 Fully insured or collateralized certificates of deposit (CD) that are FDIC-insured in eligible depositories if the interest rate bid is 103% or more of the equivalent bond yield of the offer side of treasury bills.
6.3 Interest bearing savings accounts in qualified banks and savings and loan institutions which are FDIC insured.
6.4 Repurchase agreements with maximum maturity of 180 days. 6.5 The pooled investment funds established by the State Treasurer pursuant to A.R.S. 35-326.
6.6 Bond or other evidence of indebtedness of the United States or any of its agencies or instrumentalities when the obligations are guaranteed as to principal and interest by the United States or by any agency or instrumentality of the United States. 6.7 Bonds or other evidences of indebtedness of this State, any county, city, town, or school district. Ratings of these investments must be AAA or equivalent. 6.8 Bonds, notes or evidences of indebtedness of any county or municipal district within this State which are payable from revenues or earnings specifically pledged for the payment of the principal and interest on the obligations, if they meet certain criteria as specified in A.R.S.35-323. Ratings of these investments must be AAA or equivalent. 6.9 Bonds, notes or other evidences of indebtedness issued by any municipal improvement district in this State to finance local improvements authorized by law, if the principal and the interest of the obligations are payable
from assessments on real property within the local improvement district. Ratings of these investments must be AAA or equivalent.
6.10 Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist of dollar-denominated securities. Money market mutual funds that are treasury-based funds must always be priced at $1/share.. 6.11 Commercial paper, rated in the highest tier (e.g., A-1, P-1, F-1, or D-1 or higher) by a nationally recognized rating agency. 6.12 Bonds, debentures, notes or other evidences of indebtedness that are denominated in United States dollars and that carry at a minimum an “A” or better rating at the time of purchase, from at least two nationally recognized rating agencies.
6.13 Bonds, debentures, notes or other evidences of indebtedness that are denominated in United States dollars
and that carry at a minimum an “A” or better rating at the time of purchase, from at least two nationally recognized rating agencies.
6.14 Negotiable or brokered certificates of deposit issued by a nationally or state-chartered bank or savings and loan association. Callable securities are not permitted.
6.15 Collateralization of 102% will be required on two types of Town investments: certificates of deposit and repurchase agreements.
7.0 Investment Parameters – Investment parameters include the following: 7.1 Diversification - The investments shall be diversified by:
7.1.1 Limiting investments to avoid over-concentration in securities from a specific issuer or business sector
(excluding U.S. Treasury securities) 7.1.2 Limiting investment in securities that have higher credit risks
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7.1.3 Investing in securities with varying maturities
7.1.4 Investing a portion of the portfolio in readily available funds such as local government investment pools (LGIP’s), overnight repurchase agreements, or other overnight accounts to ensure that appropriate liquidity is maintained in order to meet ongoing obligations 7.2 Maturities - Reserve funds are subject to different requirements on maximum maturities than those for other Town funds according to the terms and provisions as outlined in the trust indenture of the long-term debt issuances. To ensure liquidity the Town shall attempt to match its investments with anticipated cash flow requirements. As all possible cash demands cannot be anticipated, a portion should consist of securities with active secondary and resale markets. The Town will not invest in securities with maximum maturities greater than those allowed under A.R.S. 35-323, Investment of Public Monies. Currently, maximum maturities are: 7.2.1 Securities and deposits: 5 years
7.2.2 Repurchase agreements: 30/180 days in accordance with A.R.S 35-323.
7.3 Competitive Procurement Process/Use of Cooperative Contract - Before the Town invests any public funds, a competitive procurement process should be conducted for the necessary services or investment instruments.
If a specific maturity date is required, either for cash flow purposes or in order to conform to maturity guidelines, bids will be requested for instruments which meet the maturity requirement. If no specific maturity
is required, a market trend (yield curve) analysis will be conducted to determine which maturities would be most advantageous. The competitive process will follow the policies and procedures outlined in the Town’s
Procurement Code and comply with A.R.S. 35-323. The Town may also choose to use an existing cooperative contract provided the contract meets all requirements of the Town’s Procurement Standards.
8.0 Shock Test – The purpose of the shock test is to analyze the impact of changes in market interest rates on the potential value of the portfolio. The investment portfolio shall be shock tested quarterly by the safekeeping agent as part of their contract responsibility. At a minimum, the stress test will value the portfolio assuming interest rates rise or fall by up to 300 basis points across the entire yield curve. Information obtained from the stress test combined with current economic and interest rate forecasts will assist in determining appropriate maturities for new investments considering risks.
9.0 Benchmarks – The investment portfolio held by authorized financial institutions will be managed in accordance with the parameters specified within this policy. The portfolio should obtain a market average rate of return of stable interest rates which are equal to or exceed that obtained through investing in the State of Arizona Local Government Investment Pool (LGIP), which is managed by the State Treasurer. Performance will be monitored quarterly. 10.0 Banking Services – The Town will execute a contract with its financial depository which shall designate the requirements of serving as a depository for the Town, including collateralization of Town funds invested at such depository and the related safekeeping requirements of the pledged securities. The Town will evaluate and request bids on banking services every five years. 1-5 Banking and Investment
1.0 Capital Improvements – The Town shall annually review the needs for capital improvements, including the current status of the Town infrastructure, replacement and renovation needs, and potential new projects. All projects, both ongoing and proposed, shall be prioritized based on an analysis of current needs and resource availability at the direction of the Town Manager. For every proposed capital project, all operation, maintenance, and replacement
costs shall be fully costed. Proposed capital projects will not be authorized or awarded until a funding source is identified.
2.0 Capital Assets – Capital assets shall be depreciated over their estimated useful lives utilizing the straight-line method and shall be included in the operating budget.
3.0 Leases – Leased assets subject to GASB Statement No.87 shall be amortized over the shorter of the lease term or the asset useful life. The threshold for capitalizing lessor leases shall be $125,000. The threshold for capitalizing lessee leases shall be $75,000.
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4.0 Capital Projects – Capital projects shall be depreciated over their estimated useful lives utilizing the straight-line method and shall be included in both the capital improvement program (CIP) and capital budget.
5.0 Capital Improvement Program (CIP) – A minimum ten-year capital improvement program will be developed and updated annually, encompassing both anticipated funding sources and any estimated operating expenditures. Estimated operating expenditures associated with capital projects will be included in the operating budget. Estimated first-year capital expenditures in the CIP shall be included in the Capital Fund budget. A quarterly status report will be prepared for Council to facilitate monitoring of each project’s progress and identify any significant issues.
6.0 Prioritization – Prioritization shall occur first at the department level, and then at the Town-wide level by a cross-departmental capital project team. Financing sources will then be identified for the projects ranking the highest based on evaluation criteria and available resources. 7.0 Minimum Funding Level – In order for the Town to provide sustainable funding for capital improvements and asset repair/maintenance needs each year, the annual budget shall include the allocation of a minimum of 5% of the Town’s General Fund estimated sales tax revenues (not including state-shared revenues) to fund these needs, subject to Council approval and funding availability. These funds will be accounted for in a separate Capital Fund. 8.0 Capital Expenditure Financing – The Town recognizes that there are three basic methods of paying for capital requirements. It can budget the funds from current resources (pay as you go), it can take the funds from fund
balance as allowed by the Fund Balance Policy (another pay as you go method), or it can borrow money through debt. Debt financing includes general obligation bonds, revenue bonds, lease/purchase agreements, certificates of participation, and other debt instruments permitted under Arizona law. Guidelines for incurring debt are set forth in the Debt Policy Statements. 9.0 Audits – The Finance Department shall be responsible for verifying the actual physical existence of capital and minor assets and the accuracy of the Town’s asset database. The process will be monitored through asset audits
of Town departments and divisions. Any significant irregularities will be reported to the Town Manager. The Town shall strive to perform a complete inventory of capital items at least every two years. 1-6 PSPRS Pension Funding 1.0 Public Safety Personnel Retirement System (PSPRS) 1.1 PSPRS is administered as an agent multiple-employer pension plan. An agent multiple-employer plan has two main functions: 1) to comingle assets of all plans under its administration, thus achieving economy of scale for more cost efficient investments, and invest those assets for the benefit of all members under its administration and 2) serve as the statewide uniform administrator for the distribution of benefits. 1.2 Under an agent multiple-employer plan, each agency participating in the plan has an individual trust fund reflecting that agencies’ assets and liabilities. Under this plan all contributions are deposited to and distributions are made from that fund’s assets, each fund has its own funded ratio and contribution rate, and each fund has a unique annual actuarial valuation. The Town of Oro Valley has one trust fund for police
employees. The Town also contributes to the Correction Officer Retirement Plan (CORP), administered by the Public Safety Personnel Retirement System, on behalf of selected individuals who serve as dispatchers in the
Oro Valley Police Department. CORP maintains one trust fund for dispatchers.
1.3 Council formally accepts the assets, liabilities, and current funding ratio of the Town’s PSPRS and CORP
trust funds from the June 30, 2021 actuarial valuations specified below.
Trust Fund Assets Accrued Liability Unfunded Actuarial Accrued Liability Funded Ratio
Oro Valley Police (PSPRS) $46,773,089 $70,792,554 $24,019,465 66.1%
Oro Valley Dispatchers(CORP) $ 1,649,829 $ 3,551,295 $ 1,901,466 46.5%
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Note: The Town of Oro Valley funded the PSPRS Pension Plan with $27.6M in July 2021, after the June 30,
2021 actuarial report was prepared. At this time, it is expected the plan is 100% funded.
1.4 PSPRS and CORP Funding Goal – Pensions that are less than fully funded place the cost of service provided in earlier periods (amortization of UAAL) on current taxpayers. Fully funded pension plans are the best way to
achieve taxpayer and member intergenerational equity. 1.5 The Council’s PSPRS and CORP funding ratio goal is 100% (fully funded) by June 30, 2036 and beyond. Council establishes this goal for the following reasons: 1.5.1 The PSPRS and CORP trust funds represent only the Town of Oro Valley’s liability
1.5.2 The fluctuating cost of an UAAL causes strain on the Town’s budget, affecting the Town’s ability to provide services.
1.5.3 A fully funded pension is the best way to achieve taxpayer and member intergenerational equity.
1.6 Council has determined that in order to achieve the 100% funding ratio goal, the following actions will be taken:
1.6.1 Maintain ARC payment from operating revenues – Council is committed to maintaining the full ARC payment (normal cost and UAAL amortization) from operating funds. The estimated combined ARC for FY21/22 is estimated at $2.9 million for PSPRS and at $183,000 for CORP and shall be paid from operating funds.
1.6.2 At such time the ARC is projected to be reduced, the Town should endeavor to continue paying the ARC at the higher rate (currently 43.47% for Police), to maintain the funding ratio goal of 100%. This is due to historically poor investment performance in the Plan and should assist in mitigating that risk should it continue.
1.6.3 Retain 20-year amortization of unfunded liability 1.6.4 Review Local board practices annually
1.6.5 Periodically engage consultants to review actual results and recommend possible adjustments or
corrections as necessary 1.7 Payments to PSPRS will be as follows:
1.7.1 In FY22, the Town will make approximately $2.9M in payments based upon a 43.57% contribution rate. 1.7.2 In FY23, the Town will make approximately $2.9M in payments based upon a 43.47% contribution rate.
1.7.3 In FY24 and subsequent years, the Town will continue maintaining a 100% funding ratio. If the funding
ratio grows to over 110%, the Town Manager through the budget process, may recommend applying funding to other Town priorities. If the funding ratio falls below 100%, future additional payments will be made to restore the funding ratio back to 100%.
1.8 It is hereby the Town Council’s intent to achieve its goal of 100% funding by June 30, 2036, in accordance
with the amortization timeline set forth by the PSPRS and CORP June 30, 2021 Actuarial Valuation. 1.9 The following shows the historical performance of the unfunded actuarial accrued liability.
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Unfunded
Accrued Actuarial Accrued Funded
Year Trust Fund Assets Liability Liability Ratio
2014 Oro Valley Police 23,567,852 36,122,643 (12,554,791) 65%
2014 Oro Valley Dispatchers 1,216,956 2,269,744 (1,052,788) 54%
2015 Oro Valley Police 26,200,389 40,452,911 (14,252,522) 65%
2015 Oro Valley Dispatchers 1,205,067 2,362,604 (1,157,537) 51%
2016 Oro Valley Police 29,296,195 48,414,270 (19,118,075) 61%
2016 Oro Valley Dispatchers 1,163,258 2,524,360 (1,361,102) 46%
2017 Oro Valley Police 31,882,797 53,037,566 (21,154,769) 60%
2017 Oro Valley Dispatchers 1,260,798 3,077,649 (1,816,851) 41%
2018 Oro Valley Police 34,172,618 57,022,056 (22,849,438) 60%
2018 Oro Valley Dispatchers 1,337,558 2,945,307 (1,607,749) 45%
2019 Oro Valley Police 37,842,906 62,278,853 (24,435,947) 61%
2019 Oro Valley Dispatchers 1,424,947 3,240,399 (1,815,452) 44%
2020 Oro Valley Police 41,498,361 67,240,526 (25,742,165) 62%
2020 Oro Valley Dispatchers 1,504,732 3,374,933 (1,870,201) 45%
2021 Oro Valley Police 46,773,089 70,792,554 (24,019,465) 66%
2021 Oro Valley Dispatchers 1,649,829 3,551,295 (1,901,466) 46%
Source: Town Annual Comprehensive Financial Report for June 30, 2021 – Note 15.
1-7 Revenues 1.0 Balance and Diversification in Revenue Sources – The Town shall strive to maintain a balanced and diversified revenue system to protect it from fluctuations in any one source due to changes in local economic conditions which adversely impact that source.
2.0 User Fees and Charges – For services that benefit specific users, the Town shall establish and collect fees to recover the costs of those services. The Town Council shall determine the appropriate cost recovery level and establish the fees. Where feasible and desirable, the Town shall seek to recover full direct and indirect costs. Material user fees shall be reviewed on an annual basis to calculate their full cost recovery levels, to compare them to the current fee structure, and to recommend adjustments where necessary. 3.0 Development Impact Fees – Development impact fees for capital expenses attributable to new development will be reviewed periodically to ensure the fees recover all direct and indirect development-related expenses and be
approve by Town Council. 4.0 Enterprise Revenues – The Town will establish rates and fees at levels to fully cover the total direct and indirect costs, including operations, capital outlay, debt service, debt coverage requirements and unrestricted cash reserve balances. Enterprise funds will not be used to subsidize operations of other funds. Interfund charges will be assessed for the administrative support of enterprise fund activities. 5.0 Revenue Estimates for Budgeting – To maintain a stable level of services, the Town shall use a conservative, objective and analytical approach when preparing revenue estimates. The process shall include analysis of probable economic changes and their impacts on revenues, historical collection rates, and trends in revenues. This approach should reduce the likelihood of actual revenues falling short of budget estimates during the year and should avoid mid-year service reductions.
6.0 Revenue Collection and Administration – The Town shall maintain high collection rates for all revenues by keeping the revenue system as simple as possible to facilitate payment. In addition, because revenue should exceed the
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cost of producing it, the Town shall strive to control and reduce administrative costs. The Town shall pursue to the
full extent allowed by state law all delinquent taxpayers and others overdue in payments to the Town. 7.0 Write-off of Uncollectible Accounts – The Town shall monitor payments due the Town (accounts receivable) and the Town Manager or designee shall periodically write-off accounts where collection efforts have been exhausted and/or collections efforts are not feasible or cost-effective.
8.0 Use of One-time Revenues – The Town shall discourage the use of one-time revenues for ongoing expenditures. 9.0 Use of Unpredictable Revenues – The Town shall exercise caution with the use of unpredictable revenues for ongoing expenditures. 1-8 Expenditures 1.0 Current Funding Basis – The Town shall operate on a current funding basis. Expenditures shall be budgeted and controlled so as to not exceed current revenues plus the planned use of fund balance accumulated through prior year savings. (The use of fund balance shall be guided by the Fund Balance Policy Statements). 2.0 Avoidance of Operating Deficits (Governmental Funds) – The Town Manager shall take immediate corrective actions if, at any time during the fiscal year, expenditure and revenue re-estimates are such that an operating deficit (projected expenditures in excess of projected revenues) is projected at year-end. Corrective actions may include a hiring freeze, employee reductions, expenditure reductions, fee increases, use of fund balance within the Fund Balance Policy or other actions that may be deemed necessary and appropriate. Expenditure deferrals into the following fiscal year, short-term loans or use of one-time revenue sources shall be avoided in attempt to achieve fiscal structural balance. Corrective actions referenced above shall be presented to Town Council at the earliest possible time for approval. 3.0 Maintenance of Capital Assets – Within the resources available each fiscal year, the Town shall maintain capital assets and infrastructure at a sufficient level to protect the Town’s investment, to minimize future replacement and maintenance costs, and to continue service levels.
4.0 Periodic Program Reviews – The Town Manager shall undertake periodic staff and third-party reviews of Town
programs for both efficiency and effectiveness. Privatization and contracting with other governmental agencies will be evaluated as alternative approaches to service delivery. Programs which are determined to be inefficient and/or
ineffective shall be reduced in scope or eliminated. 5.0 Purchasing – The Town shall conduct its purchasing and procurement functions efficiently and effectively, fully complying with applicable Federal and State laws, and the Town Procurement Code. Staff shall make every effort to maximize any discounts offered by creditors/vendors. Staff shall also utilize competitive bidding or cooperative
purchasing agreements to attain the best possible price on goods and services. Procurement policy and procedures are found in Town AD 2-2.
6.0 Uniform Expenditure Reporting System – The Arizona Constitution imposes a limit on the expenditures of local jurisdictions. The Town will comply with these expenditure limitations and submit an audited expenditure limitation report, audited financial statements, and audited reconciliation report as defined by the Uniform Expenditure Reporting System to the State Auditor General within prescribed timelines in accordance with A.R.S. 41-1279.07.
7.0 Budget Amendments and Transfers – To provide flexibility in the management of department budgets for major expenditures (personnel, operations & maintenance, capital outlay, and debt service) the following amendment and transfer provisions shall apply: 7.1 Transfers of budget capacity between funds shall require the recommendation of the Town Manager and formal action by the Town Council.
7.2 Transfers of budget capacity between line items within each major expenditure category shall be permitted upon recommendation of the Department Head and approval by the Town Manager.
7.3 Transfers of budget capacity between line items or major expenditure categories to fund additional personnel or increased expenditures as a result of personnel reclassifications shall require the recommendation of the
Town Manager and formal action by the Town Council.
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7.4 Transfers of budget capacity that reduce or eliminate funding for items designated in the adopted Capital
Improvement Program shall require the recommendation of the Town Manager and approval of the Town Council.
7.5 Transfers of budget capacity that reduce or eliminate funding for debt service shall require the recommendation of the Town Manager and approval of the Town Council. 1-9 Debt
1.0 Use of Debt Financing – Debt financing, to include general obligation bonds, certificates of participation,
lease/purchase agreements, and other obligations permitted to be issued or incurred under Arizona law, shall only be used to purchase capital assets that cannot be prudently acquired from either current revenues or fund balance. The useful life of the asset or project shall exceed the repayment schedule of any debt the Town assumes. The Town shall not use long-term debt to finance current operations.
2.0 Future Bond Proposals – Future bond proposals will be accompanied by an analysis showing how the new issue, combined with current debt, impacts the Town’s debt capacity and conformance with Town debt policies. The Town shall only issue additional non-enterprise fund debt should its excise taxes equal or exceed three times the annual debt service requirement of all its current and proposed annual debt obligations.
3.0 Bond Rating – The Town will seek to maintain, and if possible, improve current bond ratings in order to minimize borrowing costs and preserve access to credit. The Town will encourage and maintain good relations with financial bond rating agencies and will follow a policy of full and open disclosure. 4.0 Utilization of Bond Proceeds – Proceeds from bonded debt will be used in accordance with the purpose of the issuance. Funds remaining after the project is completed will be used in accordance with the provisions stated in the bond ordinance that authorized the issuance of the debt.
5.0 Arbitrage Rebate – The Town shall comply with Internal Revenue Service arbitrage rebate requirements for bonded
debt. 6.0 Interest Earnings on Bond Proceeds – Interest earnings on bond proceeds will be limited to 1) funding or acquiring the improvement(s), or 2) payment of debt service on the bonds.
7.0 Bond Project Eligibility – All projects funded with bonded debt must be included in the Town’s Capital Improvement
Program. 8.0 Bond Refunding – When considering refunding any outstanding bonded debt, either the Town or its financial advisor will perform a cost benefit analysis to determine if the cost savings of refunding will be greater than the cost to refund. Considerations will be made with regard to existing bond covenants when refunding any bonded debt.
9.0 Pledging of Utility Revenues – When utility revenues are pledged as debt service payments, the Town will strive to maintain a 1.3 times debt service coverage ratio to ensure debt coverage in times of revenue fluctuation. This will be in addition to the required ratio of the bond indenture. 10.0 Debt Limit – Article IX, Section 8 of the Arizona Constitution limits the Town’s bonded debt capacity (outstanding principal) to a certain percentage of the Town’s secondary assessed valuation by the type of project to be constructed. The limit for general purpose municipal projects is 6%. For water, light, sewer, open space, public safety, park, law enforcement, fire and emergency services, and streets and transportation facilities projects, the limit is 20%.
11.0 Post-Issuance Compliance – The Town will comply with all post-issuance compliance requirements in conformance with federal tax laws.
12.0 Bonded Indebtedness Report – In accordance with A.R.S. 35-501 and 35-502, new bond and securities
issuances will be reported to the State Treasurer within 60 days of issuance. Further, the Town will produce an annual bonded indebtedness report to the Arizona Department of Administration.
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1-10 Fund Balance
1.0 Committed Fund Balance – The Town shall strive to maintain the General Fund balance at 30% of regular General Fund operating expenditures. After completion of the annual audit, if the fund balance exceeds 30%, the excess must be specifically designated for capital project funding and/or reducing the Town’s Public Safety Personnel Retirement System (PSPRS) unfunded actuarial accrued liability (UAAL).
2.0 Unassigned Fund Balance – The Town shall strive to always maintain a positive unassigned fund balance.
3.0 Use of Fund Balance – Fund Balance shall be used only for emergencies, non-recurring expenditures or major
capital purchases that cannot be accommodated through current year savings. Should such use reduce the balance below the appropriate level set as the objective for that fund, restoration recommendations will accompany the decision to utilize said balance. 4.0 Governmental Accounting Standards Board (GASB) Statement No.54 – In accordance with GASB Statement
No.54, fund balances will be classified in the following components: 4.1 Nonspendable Fund Balance
4.2 Restricted Fund Balance 4.3 Committed Fund Balance
4.4 Assigned Fund Balance
4.5 Unassigned Fund Balance The following matrix depicts to which classification fund balances of Town governmental funds will be applied:
5.0 Town Council Authorization – Fund balance reserves may only be appropriated by authorization of the Town
Council.
6.0 Utilization Priority – When multiple categories of fund balance reserves are available for expenditure (i.e. a construction project is being funded partly by a grant, funds set aside by Town Council and unassigned fund balance) the Town will start with the most restricted category – spending those funds first – before moving down to the next category with available funds. 7.0 Water Enterprise Fund – The Water Enterprise Fund shall maintain a cash reserve in the operating fund of not less than 20% of the combined total of the annual budgeted amounts for personnel, operations and maintenance, and debt service. This cash reserve amount specifically excludes budgeted amounts for capital projects, depreciation, amortization and contingency. No cash reserve is required for the Water Utility Impact Fee Funds.
Town of Oro Valley FY 2023/24 Adopted Budget 48
Introduction | Financial and Budgetary Policies
8.0 Annual Review – All Town budgetary fund designations and reserves will be evaluated annually for long-term
adequacy and use requirements in conjunction with development of the Town’s long-term financial forecast. 1-11 Internal Controls 1.0 Proper Authorizations – Procedures shall be designed, implemented, and maintained to ensure that financial
transactions and activities are properly monitored, reviewed, and authorized. 2.0 Separation of Duties – Job duties will be adequately separated to reduce to an acceptable level the opportunities for any person to be able to both perpetrate and conceal errors or irregularities in the normal course of assigned duties.
3.0 Proper Recording – Procedures shall be developed and maintained that will ensure financial transactions and events are properly recorded and that all financial reports may be relied upon as accurate, complete and current.
4.0 Access to Assets and Records – Procedures shall be designed and maintained to ensure that adequate
safeguards exist over access to and use of financial assets and records.
5.0 Independent Checks – Independent checks and audits will be made on staff performance to ensure compliance
with established procedures and proper valuation of recorded amounts. 6.0 Costs and Benefits – Internal control systems and procedures must have an apparent benefit in terms of reducing and/or preventing losses. The cost of implementing and maintaining any control system will be evaluated against the expected benefits to be derived from that system.
7.0 Information Technology – The Town will follow policies and procedures outlined in AD4-1 Information Security and Computer Usage to minimize risk associated with electronic financial records being compromised. 1-12 Grants 1.0 Grant Guidelines – The Town shall apply for only those grants consistent with the objectives and high priority needs previously identified by the Town Council. The potential for incurring ongoing costs, to include the assumption of support for grant-funded positions from operating revenues, will be considered prior to applying for a grant.
2.0 Indirect Costs – The Town shall attempt to recover full indirect costs unless the funding agency does not allow it to
do so. The Town may waive or reduce indirect costs if it is deemed to be advantageous to the Town.
3.0 Grant Review – All anticipated grant requests will be evaluated by the Town Budget Committee. Federal or State
grant requests less than $15,000 will not be considered. All grant submittals shall be reviewed for their cash match requirements, their potential impact on the operating budget, and the extent to which they meet Town policy objectives. If there are cash match requirements, the source of funding shall be identified prior to application submittal.
4.0 Grant Program Termination – The Town shall terminate grant-funded programs and associated positions when grant funds are no longer available unless alternate ongoing funding is identified. 1-13 Accounting, Auditing, and Financial Reporting 1.0 Conformance to Accounting Principles and Recommended Practices – The Town accounting practices and financial reporting shall conform to generally accepted accounting principles (GAAP) as promulgated by the Governmental Accounting Standards Board (GASB), and best practices recommended by the American Institute of Certified Public Accountants (AICPA) and the Government Finance Officers Association (GFOA).
2.0 Selection of Auditors – The Town shall request proposals from qualified, independent certified public accounting firms every five years, including the current auditors if their past performance has been satisfactory. The audit firm selected shall perform an annual audit of the books of account, records and transactions, opining on the Basic Financial Statements and Single Audit Report (if necessary).
49 Town of Oro Valley FY 2023/24 Adopted Budget
Introduction | Financial and Budgetary Policies
3.0 Audit Completion – The Town shall strive to have its Annual Comprehensive Financial Report (ACFR), Alternative
Expenditure Limitation Report, and Single Audit Report (if necessary) completed and available within 180 days, 270 days, and 270 days, respectively, after the close of its previous fiscal year ending June 30.
4.0 Report Submission to GFOA – The Town shall annually submit its budget to the GFOA Distinguished Budget Presentation Program. Further, the Town shall also annually submit its ACFR to the GFOA Certificate of Achievement for Excellence in Financial Reporting program.
Town of Oro Valley FY 2023/24 Adopted Budget 50
Introduction | Budget Process
Town of Oro Valley’s Budget Development Process
Initial Processes and Guidelines The focus areas, goals and strategies outlined in the Council-adopted Strategic Plan provide an initial framework to guide management and staff on budget priorities for the upcoming fiscal year. The seven focus areas are: • Economic Vitality
• Culture and Recreation
• Public Safety
• Roads, Water and Town Assets
• Land Use and Design
• Effective and Efficient Government
• Financial Stability and Sustainability
The budget process typically begins in November, when departments submit their initial capital improvement program (CIP) project requests. In January, a cross-departmental team meets to compile a preliminary CIP program for Town Council discussion. In February, a planning retreat is held with Councilmembers to update the Town’s Strategic Plan, discuss preliminary revenue projections and the CIP program for the upcoming fiscal year. The Strategic Plan, as well as one-on-one meetings with Councilmembers, help guide and identify budget priorities and goals, and facilitate alignment with long-range planning. At the conclusion of the planning retreat, each department develops their budget based on the identified priorities and goals. Departments build their budget and formulate next year’s requests at the line-item level, as well as project current year-end estimates. This information is compiled on a program level and an overall department level for review and analysis. Budget Review and Adoption Once departments have submitted their budget requests for personnel, O&M, and capital, Finance staff reviews the requests and compiles a financial package for the Town Manager. Budget review meetings are held between each department and the Town Manager’s budget steering committee to ensure that departmental initiatives are aligned with the budget priorities outlined by Town Council. The budget steering committee is composed of the Town Manager, Deputy Town Manager, Chief Financial Officer, Chief Information Officer, Deputy Finance Director, and the Senior Budget Analyst. Any gaps existing between revenues and expenditures are discussed among the budget steering committee and the Town Manager with a recommendation for closure.
The Town Manager ultimately recommends a budget for Council consideration. The Town Manager’s recommended balanced budget and 10-year Capital Improvement Program are delivered to the Council. Simultaneously, a financial sustainability plan is updated and presented to Council that includes various assumption factors, projected revenue, and departmental costs to complete a five-year financial picture. During budget work sessions, Councilmembers have the option of adding new items for consideration, as well as amending or removing existing staff recommended budget items.
Upon Council’s revisions to the Town Manager’s recommended budget, Finance compiles and finalizes the proposed tentative budget.
The Manager’s recommended budget is delivered to Council in April with two consecutive dedicated study sessions for discussion held in May.
With input received during the two budget study sessions, the tentative budget is then presented and adopted on the first Town Council meeting in June. The adoption of the tentative budget sets the expenditure limitation for the fiscal
year. In addition to the Town’s website, the budget is also published via newspaper and two public hearings are held.
After completion of the public hearings, the final budget is adopted on the second Town Council meeting in June. Expenditure Limitation The State of Arizona imposes an expenditure limitation on local jurisdictions. State statute sets the limit unless otherwise
approved by the voters. If the limit imposed by the State is not sufficient to meet the Town’s needs, the budget law provides four options to potentially solve the problem. All of these options require voter approval.
• A local home rule (alternative expenditure limitation)
• A permanent base adjustment
51 Town of Oro Valley FY 2023/24 Adopted Budget
Introduction | Budget Process
• A capital projects accumulation fund
• A one-time override
In 2020, voters approved a proposition that would move the Town from home rule to a permanent base adjustment. Beginning in FY 23/24, the Town of Oro Valley will be on a permanent base adjustment and will not require voter approval every four years unless a new base adjustment or home rule is needed. The FY 23/24 expenditure limitation for Oro valley is $148,489,391 Budget Amendments Because detailed budgets are considered by the Town to be a planning tool for department management, departments should have some degree of flexibility in establishing and adjusting such detail including major expenditure categories. To provide such flexibility, the following budget amendment and transfer provisions shall apply: a. Transfers between funds shall require the recommendation of the Town Manager and formal action by the Town Council. b. Transfers between line items within each major expenditure category shall be permitted upon recommendation of the department director and approval by the Town Manager. c. Transfers between the line items or major expenditure categories to fund additional personnel or increased expenditures as a result of personnel reclassifications shall require the recommendation of the Town Manager and formal action by the Town Council. d. Transfers between the operations and maintenance and capital outlay major expenditure categories shall be permitted upon recommendation of the department director and approval by the Town Manager. e. Transfers that would reduce or eliminate funding for items designated in the adopted Capital Improvement Program shall require the recommendation of the Town Manager and formal Council action. f. Transfers that would reduce or eliminate funding for debt service shall require the recommendation of the Town Manager and formal Council action.
Town of Oro Valley FY 2023/24 Adopted Budget 52
Introduction | Budget Process
BUDGET DEVELOPMENT CALENDAR FISCAL YEAR 2023/24 (July 1, 2023 - June 30, 2024)
Strategic Planning November - January
CIP request process open for departments to submit initial project requests Dec 5, 2022
Senior Management Team meeting - discuss budget timeline and department requests Dec 15, 2022
New budget year planning meeting with Budget Steering Committee Jan 31, 2022
Budget Development Process January - April
Budget Kick Off. Preliminary outlook, operating budget formation & entry. Jan 30, 2023
Department budget request submission Jan 30 – Feb 24, 2023
Final revenue estimates prepared Jan 31 – Mar 3, 2023
Town Council Retreat: discussion of strategic plan, revenue projections, CIP, and budget Feb 10, 2022
Final CIP requests due Feb 28, 2023
Water Rates Analysis - Council adoption of notice of intent Mar 1, 2023
Budget Steering Committee reviews department budget requests Mar 1 – Mar 10, 2023
Finance prepares Town Manager Recommended Budget Mar 15 – Apr 14, 2023
Council Budget Review April – May
Town Manager's Recommended Budget distributed to Council and Budget & Finance Commission Apr 14, 2023
Town Council Review - Staff meetings with Councilmembers Apr 17 – Apr 21, 2023
Budget & Finance Commission review of Town Manager's Recommended Budget Apr 18, 2023
Town Council Study Session, Budget work session, CIP presented May 10 – May 11, 2023
Budget Adoption June
Adoption of Proposed Water Rates, Public Hearing Jun 7, 2023
Tentative Budget Adoption, Public Hearing Jun 7, 2023
Final Budget Adoption, Public Hearing; presentation of five-year forecast Jun 21, 2023
53 Town of Oro Valley FY 2023/24 Adopted Budget
FINANCIAL OVERVIEW
Budget Overview
Fund Balances
Budget Summary
Revenue Summary
Expenditure Summary
Revenue Schedule by Fund
Revenue Sources
Expenditure Schedule by Fund
Expenditures by Department
Personnel Summary
FTE Summary by Fund
Personnel Schedule
Debt Service
Debt Service Schedules
Five Year Forecast
Town of Oro Valley FY 2023/24 Adopted Budget 54
Financial Overview | Financial Organizational Chart
Adopted Budget $148,489,391
Operating Budget
$89,646,346
Contingency $11,071,610 Capital Improvement $47,771,435
General Fund $5,000,000
Special Revenue Funds $1,300,000
Debt Service
Funds $100,000
Capital Project Funds $3,421,060
Enterprise Funds $750,000
Streets & Roads
$5,427,534
Stormwater Management $365,000
Parks & Recreation $21,441,089
Internal Service Funds
$500,000
Water Systems $14,069,792
Public Safety $80,000
Vehicle Replacements $2,818,200
Other Public Facilities
$3,569,820
General Fund
$49,957,614
Special Revenue Funds $10,435,173
Debt Service Funds
$4,037,854
Capital Project Funds
$766,351
Enterprise Funds $20,159,503
Internal Service Funds $4,289,851
55 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Budget Overview
Budget Overview
The budget for FY 2023/24 totals $148.5 million, which includes a $89.6 million operating budget and $47.8 million for capital projects, and represents a $785,000, or 0.5% increase from the previous fiscal year budget of $147.7 million. Budgeted capital for FY 23/24 is a significant portion of the budget at $47.8 million and includes capacity for roadway improvements, water system improvements, parks and recreation amenities and improvements, public safety facilities and equipment, and fleet and technology replacements. Please refer to the Capital Improvement Program (CIP) for additional detail on budgeted projects. The FY 23/24 personnel budget provides funding for five new full-time and two part-time positions, several position reclassifications. Refer to the personnel summary section of the budget for further discussion and details regarding personnel changes. The O&M budget is increasing by approximately $2.2 million, or 6.3%, due to cost inflation in areas such as software and technology, medical claims costs and Central Arizona Project water costs. A more detailed discussion on the changes to each category of the Town’s budget can also be found in the expenditure summary section of this document.
Comprehensive Budget Overview
$41.7
$34.7
$46.5
$9.3
$15.5
$43.1 $36.9
$49.5
$8.0 $11.1
$0
$10
$20
$30
$40
$50
$60
Personnel O&M Capital Debt Service Contingency
FY 2022/23 Budget
FY 2023/24 Budget
Millions3.4%
6.4%
6.3%
-14.4%-28.6%
Town of Oro Valley FY 2023/24 Adopted Budget 56
Financial Overview | Budget Overview
Changes Between Recommended to Adopted
The Town Manager’s recommended balanced budget for FY 23/24 was prepared and delivered to the Town Council and
made public in April 2023. The budget process is typically underway for several months leading up to this point, and
Town Council, as well as the public are encouraged to ask questions and offer input on the proposed budget for the
upcoming fiscal year. During the next few weeks, there is the option to add new items, as well as amend or removing
existing items from the recommended budget. After necessary revisions, a tentative and subsequent final budget are
formally adopted by Town Council.
For FY 23/24, several significant changes were made from the recommended budget delivered in April, to the final
adopted budget in June. The largest of these changes was the cost increase for the NWRRDS (Northwest Recharge,
Recovery, and Delivery System) capital project, an ongoing collaborative water infrastructure effort by Oro Valley,
Marana, and Metro Water District. In total, the overall budget increased $600,170 or 0.4% from the recommended
amount of $147.9 million to the adopted amount of $148.5 million. A summary of the major changes is listed below.
Personnel
Refinement of wages and benefits projection +114,852
Operations & Maintenance
Increased grant funded travel and training for the Police Department +110,000
Software cost adjustments +65,000
Capacity for consulting fees for space needs +50,000
Carryover of Rooney Master Plan +35,000
Carryover of impact fee study +30,000
Reduced AZ Rangers court security hours -5,000
Capital Outlay
Adjustment to NWRRDS Projects +2,200,000
Refinement of project carryover from FY 22/23 -1,299,482
Rancho Vistoso & Woodburne Intersection CIP projet moved to FY 24/25 -750,000
Contingency
Roadway Impact Fee Fund +50,000
Rec in Lieu Fund -200
$-
$10
$20
$30
$40
$50
$60
GeneralFund SpecialRevenueFunds
Debt ServiceFunds CapitalProjectFunds
InternalServiceFunds
EnterpriseFundsMillionsFY 23/24 Budget Appropriation
Recommended Tentative
57 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Budget Overview
Balanced Budget
In accordance with the Town’s adopted Financial and Budgetary Policies, 1-1 – 3.0 Balanced Budget, “The proposed budget will be balanced for the ensuing fiscal year. Deferrals, short-term loans, or one-time revenue sources will be
avoided as budget balancing techniques.”
Revenues $ 57,487,819 Expenditures 62,674,258 Surplus/(Deficit) ($5,186,439) The budget is structurally balanced, that is all recurring expenditures are expected to be covered with recurring revenues. The planned use of fund balance will go towards funding of one-time expenditures in the budget. Revenues Budgeted revenue for FY 23/24 totals $104 million and represents a $2 million, or 2% increase from FY 22/23. The Town receives a variety of funding sources to finance operations, which are discussed in further detail in the Financial Overview section of the budget document. In FY 23/24, the Town has budgeted revenues from sales taxes, which is a major funding source (29% of the total), state shared revenues (26% of total) and water sales (16% of total).
Sales Taxes
29%State Shared
Revenue
26%
Water Sales
16%
Charges for Services
13%
Miscellaneous
7%
Outside Funding Sources
6%
Fines, Licenses & Permits
2%
Impact Fees
1%
FY 23/24 Budgeted Revenue Sources
$0 $10 $20 $30 $40 $50 $60 $70
Millions
FY 2024 General Fund Expenditures and Revenue
Revenue
Uses
Planned Use of Fund Balance = $5.2M
$62.7M
$57.5M
Town of Oro Valley FY 2023/24 Adopted Budget 58
Financial Overview | Budget Overview
Expenditures
Budgeted expenditures (excluding contingency) for FY 23/24 total $137.4 million and represent a 3.9% increase from FY 22/23. The budget includes approximately $89.6 million to support daily operations and services and $47.8 million in
capital projects to fund roadway expansions and improvements, water and stormwater infrastructure improvements, parks and recreation amenities and improvements, and public safety improvements.
Further detail on uses of expenditures and types can be found in the Financial Overview section of the budget document.
Personnel 31%
O&M 27%
Capital 36%
Debt Service 6%
FY 2023/24 Budgeted Uses
59 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Budget Overview
Revenue Transfers
In Personnel O&M Capital Debt
Service Contingency* Transfers
Out
General Fund 57,487,819 - 35,652,260 13,386,754 1,360,600 - 5,000,000 12,274,644
Special Revenue Funds
Highway Fund 4,432,608 1,500,000 1,262,861 1,003,930 4,202,000 - 200,000 -
Grants & Contributions 3,412,700 138,000 - 1,044,400 3,224,752 - 500,000 -
Seizures & Forfeitures 103,000 - - 100,000 - - 100,000 -
Community Center Fund 9,708,452 - 1,114,639 5,294,659 1,820,500 210,684 500,000 1,717,203
Debt Service Funds
Municipal Debt Svc Fund 185,146 3,902,708 - 10,000 - 4,027,854 100,000 -
Capital Project Funds
WRSDIF Fund 1,053,349 2,880,000 - 178,714 11,950,000 74,586 250,000 -
TWDIF Fund 301,810 - - 6,429 - - 300,000 -
PAG/RTA Fund 65,125 - - 30,000 438,000 - 120,000 -
Parks & Rec Impact Fee Fund 137,780 - - 3,000 600,000 - 185,000 -
Police Impact Fee Fund 39,234 - - 857 - - 50,000 46,553
Rec In Lieu Fee Fund 100 - - - - - 16,610 -
Capital Fund 1,727,540 10,000,000 254,765 - 23,121,391 - 2,500,000 1,500,000
Internal Service Funds
Benefit Self Insurance Fund 4,289,851 - - 4,289,851 - - 500,000 -
Enterprise Funds
Water Utility Fund 19,360,500 - 3,870,809 11,176,793 2,239,792 3,644,440 500,000 2,882,308
Stormwater Utility Fund 1,721,500 - 947,302 369,159 506,000 - 250,000 -
104,026,514 18,420,708 43,102,636 36,894,546 49,463,035 7,957,564 11,071,610 18,420,708
Total Budget Appropriation** 148,489,391
SOURCES USES
* Per Town budgetary and financial policy 1-1-4.0, the budget shall include contingency appropriation to provide for unanticipated increases
in service delivery costs, emergencies, and needs that may arise through the fiscal year. The contingency appropriation may only be
expended upon Town Council approval
** Excludes transfers out and assumes the use of all contingency reserves. Does not include non-cash outlays for depreciation or
amortization
Town of Oro Valley FY 2023/24 Adopted Budget 60
Financial Overview | Fund Balances
Special Capital Internal
General Revenue Water Utility Non-Major Project Service Debt Service 2023-2024
Fund Funds Fund Enterprise Fund Funds Funds Funds Total
Revenues
and Other Sources
Taxes 26,398,318$ 3,726,016$ -$ -$ -$ -$ -$ 30,124,334$
Licenses and Permits 1,717,118 25,000 - - - - - 1,742,118
Fines 125,000 - - - - - - 125,000
Water Sales - - 16,060,000 - - - - 16,060,000
Charges for Services 3,204,246 5,785,386 3,200,500 1,501,500 28,125 - - 13,719,757
State Shared Revenue 22,953,222 4,334,608 - - - - - 27,287,830
Intergovernmental 1,869,500 - - - - - - 1,869,500
Grants 657,415 2,827,700 - 210,000 650,000 - 25,146 4,370,261
Seizures & Forfeitures - 100,000 - - - - - 100,000
Impact Fees - - - - 1,362,473 - - 1,362,473
Interest Income 300,000 133,000 100,000 10,000 276,800 - 60,000 879,800
Miscellaneous 263,000 725,050 - - 1,007,540 4,289,851 100,000 6,385,441
Other Financing Sources - 138,000 - - 12,880,000 - 3,902,708 16,920,708
Total 57,487,819$ 17,794,760$ 19,360,500$ 1,721,500$ 16,204,938$ 4,289,851$ 4,087,854$ 120,947,222$
Expenditures
and Other Uses
General Government
Town Council 209,203$ -$ -$ -$ -$ -$ -$ 209,203$
Town Manager's Office 1,638,716 - - - - - - 1,638,716
Clerk 419,897 - - - - - - 419,897
Human Resources 590,520 - - - - - - 590,520
Finance 850,456 - - - - - - 850,456
Innovation & Technology 6,271,309 - - - - - - 6,271,309
Legal 1,132,503 - - - - - - 1,132,503
Town Court 1,010,662 - - - - - - 1,010,662
General Administration 2,555,536 600,000 - - 10,286 4,289,851 10,000 7,465,673
Debt Service -
Principal - - - - - - 2,668,242 2,668,242
Interest - - - - - - 1,359,612 1,359,612
Capital Projects - - - - 23,121,391 - - 23,121,391
Comm. & Economic Dev.3,882,445 - - - - - - 3,882,445
Parks and Recreation 4,664,040 9,114,200 - - 600,000 - - 14,378,240
Police 20,410,591 590,500 - - - - - 21,001,091
Public Works 6,763,736 8,973,725 - 1,822,461 254,765 - - 17,814,687
Water Utility -
Personnel - - 3,870,809 - - - - 3,870,809
Operations & Maintenance - - 11,176,793 - - - - 11,176,793
Capital Outlay - - 2,239,792 - 12,128,714 - - 14,368,506
Debt Service -
Principal - - 3,300,830 - 71,424 - - 3,372,254
Interest - - 343,610 - 3,162 - - 346,772
Roadway Improvements - - - - 468,000 - - 468,000
Other Financing Uses 12,274,644 1,717,203 2,882,308 - 1,546,553 - - 18,420,708
Total 62,674,258$ 20,995,628$ 23,814,142$ 1,822,461$ 38,204,295$ 4,289,851$ 4,037,854$ 155,838,489$
Increase/(Decrease)(5,186,439) (3,200,868) (4,453,642) (100,961) (21,999,357) - 50,000 (34,891,267)
Beginning Fund Balance 22,921,554$ 2,864,261$ 12,437,412$ 750,548$ 44,974,453$ 2,869,952$ 207,718$ 87,025,897$
Ending Fund Balance 17,735,115$ (336,607)$ 7,983,770$ 649,587$ 22,975,096$ 2,869,952$ 257,718$ 52,134,631$
Enterprise Funds
(1)(2)
(3)
(4)(5)(6)
61 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Fund Balances
The fund balance describes the net position of governmental funds calculated on a budgetary basis and is intended to serve as a measure of the financial resources available in a governmental fund. Fund Balance shall be used only for
emergencies, non-recurring expenditures or major capital purchases that cannot be accommodated through current year savings. Should such use reduce the balance below the appropriate level set as the objective for that fund, restoration
recommendations will accompany the decision to utilize said balance. For more information on policies related to fund balances, see financial and budgetary policies section 1-10.
The fund balances table depicts the estimated beginning fund balance on July 1, 2023, the budgeted revenues and expenditures for FY 23/24 and the projected ending fund balance on June 30, 2024.
1) The General Fund is planned to decrease by $5,186,439 due to a $10 million transfer of fund balance to the
Capital Fund.
2) Special Revenue Funds are planned to decrease by $3,200,868 for planned capital projects.
3) The fund balance in the Water Utility Enterprise Fund is decreasing $4,453,642 due to one-time capital projects. The fund balance in the Stormwater Utility Fund is decreasing $100,961 due to one-time capital projects.
4) Capital Project Funds are planned to decrease by $21,999,357 due to one-time capital projects and equipment.
5) Fund balance is expected to remain unchanged at $2,869,952 for the Benefit Self Insurance Fund.
6) Fund balances in the Debt Service Funds are increasing $50,000 due to interest income.
Town of Oro Valley FY 2023/24 Adopted Budget 62
TOWN OF ORO VALLEY ANNUAL BUDGET FY 2020-2021
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63 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Budget Summary
FY 2021 FY 2022 FY 2024
Budget Projected Budget
Personnel FTE
General Fund 310.69 313.31 328.89 331.99 336.48
Special Revenue Funds 37.55 33.55 34.77 33.55 35.02
Capital Project Funds - 2.00 2.00 2.00 2.00
Enterprise Funds 50.73 51.21 50.21 50.21 50.21
TOTAL PERSONNEL FTE 398.97 400.07 415.87 417.75 423.71
Expenditures by Fund
General Fund 39,532,747 51,204,588 48,073,483 45,777,577 50,399,614
Special Revenue Funds 9,045,776 10,262,969 19,579,140 16,331,553 19,278,425
Debt Service Funds 1,397,720 19,499,044 4,341,059 4,340,559 4,037,854
Capital Project Funds 9,886,602 12,552,077 34,305,154 22,400,337 36,657,742
Enterprise Funds 20,323,213 19,568,698 22,162,894 21,324,090 22,754,295
Internal Service Funds 3,561,013 3,269,744 3,764,477 4,218,658 4,289,851
TOTAL EXPENDITURES 83,747,071 116,357,121 132,226,207 114,392,774 137,417,781
Expenditures by Category
Personnel 33,970,613 36,234,387 41,740,350 40,151,271 43,102,636
Operations & Maintenance 27,386,557 56,792,475 34,705,814 32,913,541 37,105,230
Capital Outlay 15,812,322 17,026,291 46,468,412 32,016,331 49,463,035
Debt Service 6,577,579 6,303,969 9,311,631 9,311,631 7,746,880
TOTAL EXPENDITURES 83,747,071 116,357,121 132,226,207 114,392,774 137,417,781
Operating Results
Total Revenues 97,612,952 120,619,446 101,988,663 101,723,352 104,026,515
Total Expenditures 83,747,071 116,357,121 132,226,207 114,392,774 137,417,781
NET OPERATING RESULTS 13,865,881 4,262,325 (30,237,544) (12,669,422) (33,391,266)
1) Excludes depreciation, amortization, contingency amounts and interfund transfers
2) Excludes carry-forward balances and interfund transfers
3) Negative net operating results are attributable to planned one-time projects/initiatives and any associated debt service
Actual
FY 2023
(1)
(1)
(2)
(3)
(1)
Town of Oro Valley FY 2023/24 Adopted Budget 64
Financial Overview | Revenue Summary
Revenue Summary
Revenue for FY 23/24 is estimated to total $104,026,515. In comparison to the FY 22/23 budget, revenue is projected to increase by approximately $2.0 million, or 2.0%. This increase is mainly attributable to state shared revenues. Revenues remain difficult to forecast due to the many uncertainties that still exist in the national economy and high
inflation. With that in mind, projections remain conservative while still attempting to be as accurate as possible. The Town expects a mild recession in the U.S. economy and low growth in the Arizona economy over the next fiscal year. Revenues related to consumer spending are expected to see modest growth for FY 23/24. Local sales tax revenues are expected to increase $1.4 million, or 4.8% when compared to FY 22/23. The bulk of these increases are anticipated in retail, contracting, restaurant & bar, as well as hotel/bed tax categories.
Revenues associated with commercial development are projected to decrease in the upcoming fiscal year based on the expected timing of known projects.
Overall, state shared revenues are anticipated to increase approximately $5.6 million or 25.6% compared to the prior fiscal year. State shared income tax revenues are expected to increase 41.3%, state sales tax revenues are expected to increase 24.7%, highway user fund revenues are forecasted to increase slightly at 5%, and vehicle license tax is expected to increase 11% over the prior year. The increase in state shared income tax revenues is due to attributable to a statutory change in the state allocation rate from 15% to 18% to cities and towns. Depending on the revenue source, estimates are based on susceptibility to economic factors, current performance, economic drivers and indicators, information received from State reports and other sources. Refer to the Revenue Schedule by Fund on page 70 for detailed changes in revenue from year to year.
$30.1M, 29%
$27.3M, 26%
$16.1M, 16%
$13.7M, 13%
$7.3M, 7%
$6.3M, 6%
$1.9M, 2%
$1.4M, 1%
Sales Taxes
State Shared Revenue
Water Sales
Charges for Services
Miscellaneous
Outside Funding Sources
Fines, Licenses & Permits
Impact Fees
$0 $10 $20 $30 $40MillionsFY 23/24 Budgeted Revenue Sources
65 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Revenue Summary
A brief description of the major changes in revenue sources from budget year to budget year is as follows:
Sales Taxes
+$1.4M
• 3.6% increase in retail collections
• 10.3% increase in restaurant & bar collections
• 24.8% increase in hotel related collections
• 11.4% decrease in construction related collections
• 6.3% increase in utility sales tax collections
• 17.7% increase in remote seller tax collections
Charges for
Services +$1.1M
• 5.2% increase in the General Fund due mainly to administrative charges to the enterprise
funds
• 18.8% increase in Community Center Fund from golf and recreation programs
State Shared Revenues +$5.6M
• 24.7% increase in state shared sales taxes
• 5.0% increase in HURF revenues
• 41.3% increase in state income taxes
• 11.5% increase in vehicle license tax
Fines, Licenses & Permits -$0.5M
• $566K decrease in commercial building permit revenues, based on projected activity
• $67K increase in residential building permit revenues, based on projected activity
Outside Funding -$5.8M
• $5.8M decrease in federal grants mainly related to the American Rescue Plan Act of 2021 (ARPA) and Arizona Broadband Development Grant (ABDG) capacity for installation of fiber optic infrastructure
Impact Fees -$0.3M • 20.5% decrease based on anticipated commercial and residential building activity
Water Sales +$0.7M • 4.4% increase based on demand and scheduled rates
Miscellaneous +$0.2M • 0.3% increase based on anticipated investment income earnings and revenues related to the Benefit Self Insurance Fund
FY 2022 FY 2023/24 Variance
Actual Budget Projected Budget to Budget %
Sales Taxes 31,340,309 28,748,195 30,745,680 30,124,334 1,376,139 4.8%
Charges for Services 13,414,864 12,659,189 13,104,452 13,719,757 1,060,568 8.4%
State Shared Revenue 19,297,511 21,732,793 22,630,352 27,287,830 5,555,037 25.6%
Fines, Licenses & Permits 2,551,554 2,373,824 2,748,461 1,867,118 (506,706) -21.3%
Miscellaneous 4,103,320 7,243,087 7,372,386 7,265,241 22,154 0.3%
Impact Fees 1,772,492 1,712,866 1,978,812 1,362,473 (350,393) -20.5%
Water Sales 14,406,542 15,383,000 14,186,000 16,060,000 677,000 4.4%
Outside Funding Sources 33,732,854 12,135,709 8,957,209 6,339,761 (5,795,948) -47.8%
Total Revenue 120,619,446$ 101,988,663$ 101,723,352$ 104,026,515$ 2,037,851$ 2.0%
Does not include interfund transfers or carry-forward fund balances
FY 2022/23
Revenue Sources
Town of Oro Valley FY 2023/24 Adopted Budget 66
Financial Overview | Expenditure Summary
Expenditure Summary
The expenditure budget for FY 23/24 totals $137,417,781 and represents a $5.2 million, or 3.9% increase over the prior fiscal year budgeted expenditures. The budget includes $89.6 million to support daily operations and services and $47.8 million in capital projects. The chart below reflects all budgeted uses and their portion of the overall expenditure budget. A description of the changes in expenditure categories from budget year to budget year can be found on the following page. Please reference the personnel section of the budget document for further explanations on personnel changes. The capital budget for FY 22/24 addresses several areas of critical need, including roadway and street improvements, water and stormwater system improvements, public safety facilities and equipment, parks and recreation amenities and improvements, as well as fleet and technology replacements. Please reference the Capital Improvement Program (CIP) section of the budget document for further details on capital improvement projects.
Personnel 31%
O&M 27%
Capital 36%
Debt Service
6%
FY 2023/24 Budgeted Uses
67 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Expenditure Summary
A brief description of the major changes in expenditure categories from budget year to budget year is as follows:
Personnel +$1.4M • $798K for employee step increases and 4.25% pay adjustments
• $646K increase for seven new positions and various position reclassifications
O&M +$2.4M
• $580K for outside professional services
• $432K for Central Arizona Project water charges
• $454K for software licenses and subscriptions
• $375K for estimated Insurance claims
• $286K for contract personnel services
• $242K for golf operating expenditures
• $145K for telecommunications
• ($237K) reduced gasoline budget
Capital +$3.0M • $6.4M increase in capital outlay on the NWRRDS project
Debt Service -$1.6M
• Decrease in accordance with schedule of principal and interest payments
• Payoff of Series 2012 senior lien water bonds
FY 2022 FY 2023/24 Variance
Actual Budget Projected Budget to Budget %
Personnel 36,234,387 41,740,350 40,151,271 43,102,636 1,362,286 3.3%
O&M 56,792,475 34,705,814 32,913,541 37,105,230 2,399,416 6.9%
Capital 17,026,291 46,468,412 32,016,331 49,463,035 2,994,623 6.4%
Debt Service 6,303,969 9,311,631 9,311,631 7,746,880 (1,564,751) -16.8%
Total Expenditures 116,357,121$ 132,226,207$ 114,392,774$ 137,417,781$ 5,191,574$ 3.9%
Does not include depreciation, amortization, interfund transfers or contingency amounts
Budgeted Uses
FY 2022/23
Town of Oro Valley FY 2023/24 Adopted Budget 68
Financial Overview | Expenditure Summary
Capital Improvement Program
The Capital Improvement Program (CIP) is a comprehensive, ten-year plan of capital projects that identifies priorities, methods of financing, costs, and associated revenues. It includes a one-year recommendation for the Town’s capital
budget. The CIP is one of the mechanisms that implements the Town’s General Plan and Strategic Leadership Plan. It allocates funds to meet goals and strategies specified in both plans and implements these plans as part of the project
evaluation criteria.
The FY 23/24 adopted budget includes $47.8 million in capital improvement projects, funded with a variety of sources. Budgeted projects include street and roadway improvements, water and stormwater utility system improvements, parks and recreation improvements and public safety facilities.
Further information on CIP projects and project descriptions can be found in the Capital Improvement section of the budget document.
$21.4M, 45%
$14.1M, 29%
$5.4M, 11%
$3.6M, 7%
$2.8M, 6%
$0.4M, 1%
$0.1M, 0%
$0 $5 $10 $15 $20 $25
Parks & Recreation
Water System
Streets/Roads
Other Public Facilities
Vehicle Replacement
Stormwater
Public Safety
Millions
FY 23/24 Capital Improvement Projects$47.7 Million
69 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Revenue Schedule by Fund
Revenue Schedule by Fund
FY 2021 FY 2022 FY 2023 FY 2023 FY 2024 %
Major Revenue Accounts Actual Actual Budget Projected Budget to Budget
General Fund
Local Sales Tax:
Local Sales Tax 21,109,373 27,048,414 24,505,959 26,266,462 25,633,318 4.6%
Cable Franchise Fees 722,700 756,388 765,000 765,000 765,000 0.0%
Total Local Sales Tax 21,832,073 27,804,802 25,270,959 27,031,462 26,398,318 4.5%
License & Permit Fees:
Business Licenses & Permits 201,157 211,085 202,500 200,000 205,000 1.2%
Residential Building Permits 2,110,300 1,414,601 1,023,494 1,074,931 1,090,118 6.5%
Commercial Building Permits 715,612 594,623 816,330 1,066,330 250,000 -69.4%
Sign Permits 20,995 24,925 20,000 23,000 20,000 0.0%
Special Inspection Fees 5,460 10,230 8,000 12,500 8,000 0.0%
Grading Permit Fees 183,924 59,337 84,500 110,000 65,000 -23.1%
Road Permits 50 (50) - - - 0.0%
Floodplain Use Permits 3,700 2,235 4,000 5,200 4,000 0.0%
Fire Permits & Fees 84,628 73,094 65,000 145,000 75,000 15.4%
Total License & Permit Fees 3,325,826 2,390,080 2,223,824 2,636,961 1,717,118 -22.8%
Federal Grants:
DEA Overtime Reimbursement 32,875 28,045 40,000 25,000 41,415 3.5%
Miscellaneous Federal Grants 9,619,409 5,592,372 - 112,000 - 0.0%
HIDTA-DEA 116,830 96,218 80,000 115,000 90,000 12.5%
GOHS 186,936 42,101 45,000 102,000 71,000 57.8%
Homeland Security 139,768 177,764 215,000 215,000 380,000 76.7%
Total Federal Grants 10,095,818 5,936,500 380,000 569,000 582,415 53.3%
State Grants:
Misc State Grants 214,154 69,413 75,000 90,000 75,000 0.0%
Total State Grants 214,154 69,413 75,000 90,000 75,000 0.0%
State/County Shared:
State Income 6,580,331 6,174,401 9,084,919 9,082,717 12,839,525 41.3%
State Sales 5,462,343 6,637,079 5,780,575 6,737,363 7,207,659 24.7%
Vehicle License Tax 2,392,664 2,270,326 2,315,524 2,315,524 2,582,388 11.5%
Smart & Safe - 235,954 324,675 270,000 323,650 -0.3%
Opioid Settlement - - 100,000 97,648 - -100.0%
Total State/County Shared 14,435,338 15,317,760 17,605,693 18,503,252 22,953,222 30.4%
Other Intergovernmental:
School Resource Officers 64,122 61,209 65,000 65,000 90,000 38.5%
RTA Reimbursements 1,004,664 1,518,846 1,530,000 1,530,000 1,774,000 15.9%
PCLD Reimbursements 8,223 6,178 18,000 5,500 5,500 -69.4%
Animal Control Revenues 115,410 88,586 - - - 0.0%
Total Other Intergovernmental 1,192,419 1,674,819 1,613,000 1,600,500 1,869,500 15.9%
Charges for Services:
Court Costs 140,218 157,338 135,000 137,000 135,000 0.0%
Public Defender Fees 2,416 200 2,400 - 2,400 0.0%
Zoning & Subdivision Fees 121,973 83,601 65,000 89,000 65,000 0.0%
User Fees - Swimming Pool 405,834 545,171 496,000 362,540 466,000 -6.0%
User Fees - Fields & Courts 109,137 149,438 122,032 175,000 186,840 53.1%
User Fees - Miscellaneous 71,442 201,057 159,000 228,407 144,000 -9.4%
Copy Services 523 227 350 350 350 0.0%
General Government Other 3,719 1,833 7,000 800 800 -88.6%
Police Report Copying 5,652 6,519 6,500 7,000 6,500 0.0%
Police Other 15,071 4,114 5,000 14,000 5,000 0.0%
Town of Oro Valley FY 2023/24 Adopted Budget 70
Financial Overview | Revenue Schedule by Fund
FY 2021 FY 2022 FY 2023 FY 2023 FY 2024 %
Major Revenue Accounts Actual Actual Budget Projected Budget to Budget
Engineer Plan Review Fees 24,800 20,750 51,000 25,000 51,000 0.0%
Farebox 463 (1,676) 80,000 - 40,000 -50.0%
Administrative Services 729,048 1,284,684 1,718,960 1,648,960 1,897,065 10.4%
Financial Services 197,952 - - - - 0.0%
Real Property Rental Income 102,691 104,136 101,223 101,223 101,223 0.0%
Maps 80 50 250 80 80 -68.0%
Impound Processing 22,950 18,925 19,000 19,000 19,000 0.0%
Pawn Slips 750 - 300 300 300 0.0%
Police Fingerprinting 1,650 9,670 9,000 10,000 9,000 0.0%
Concession Sales 82 353 - 250 - 0.0%
Public Record Request Fees 1,412 1,412 1,500 1,700 1,400 -6.7%
Court Security Fee 20,000 58,759 57,000 57,000 57,000 0.0%
Public Art In Lieu Fees - - - - 16,288 0.0%
Facility Maintenance Services 14,024 12,291 10,000 - - -100.0%
Total Charges for Services 1,991,887 2,658,852 3,046,515 2,877,610 3,204,246 5.2%
Fines:
Fines 135,547 132,636 125,000 85,000 125,000 0.0%
Total Fines 135,547 132,636 125,000 85,000 125,000 0.0%
Interest Income:
Interest - Investments 123,041 (754,525) 150,000 300,000 300,000 100.0%
Total Interest Income 123,041 (754,525) 150,000 300,000 300,000 100.0%
Miscellaneous:
Donations 11,648 6,825 - 12,900 - 0.0%
Miscellaneous 28,160 27,655 15,000 340,000 15,000 0.0%
Special Events 370 1,740 4,000 8,000 4,000 0.0%
Insurance Recoveries 4,849 - - - - 0.0%
In-Lieu Income 220,921 224,391 220,000 234,000 234,000 6.4%
Sale of Assets 16,241 8,731 10,000 17,000 10,000 0.0%
Total Miscellaneous 282,189 269,342 249,000 611,900 263,000 5.6%
1.6%4.3%
TOTAL GENERAL FUND 53,628,292 55,499,679 50,738,991 54,305,685 57,487,819 13.3%
Highway Fund
License & Permit Fees:
Road Permits 37,108 28,838 25,000 26,500 25,000 0.0%
Total License & Permit Fees 37,108 28,838 25,000 26,500 25,000 0.0%
State Grants:
RTA Reimbursements 16,588 - - - - 0.0%
Total State Grants 16,588 - - - - 0.0%
State/County Shared:
Highway User 3,714,572 3,979,751 4,127,100 4,127,100 4,334,608 5.0%
Total State/County Shared 3,714,572 3,979,751 4,127,100 4,127,100 4,334,608 5.0%
Interest Income:
Interest - Investments 1,022 (16,303) 8,000 110,000 70,000 775.0%
Total Interest Income 1,022 (16,303) 8,000 110,000 70,000 775.0%
Miscellaneous:
Miscellaneous 2,658 102 2,000 5,925 2,000 0.0%
Insurance Recoveries 4,696 7,158 1,000 1,900 1,000 0.0%
Sale of Assets 188 - - - - 0.0%
Total Miscellaneous 7,542 7,260 3,000 7,825 3,000 0.0%
TOTAL HIGHWAY FUND 3,776,832 3,999,546 4,163,100 4,271,425 4,432,608 6.5%
71 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Revenue Schedule by Fund
FY 2021 FY 2022 FY 2023 FY 2023 FY 2024 %
Major Revenue Accounts Actual Actual Budget Projected Budget to Budget
Grants & Contributions Fund
Federal Grants:
GOHS - 94,730 130,000 130,000 127,000 -2.3%
Miscellaneous Federal Grants - 1,150 8,277,000 5,417,000 2,463,800 -70.2%
Homeland Security - 105,207 135,000 135,000 13,500 -90.0%
Total Federal Grants - 201,087 8,542,000 5,682,000 2,604,300 -69.5%
State Grants:
Miscellaneous State Grants - - 179,047 179,047 123,400 -31.1%
Opioid Settlement - - - - 100,000 0.0%
Total State Grants - - 179,047 179,047 223,400 24.8%
Interest Income:
Interest - Investments - (2,262) 50 25,000 25,000 49900.0%
Total Interest Income - (2,262) 50 25,000 25,000 49900.0%
Miscellaneous:
Donations - - - - 13,000 0.0%
Miscellaneous - - 1,500,000 - 547,000 -63.5%
Total Miscellaneous - - 1,500,000 - 560,000 -62.7%
TOTAL GRANTS & CONTRIBUTIONS FUND - 198,825 10,221,097 5,886,047 3,412,700 -66.6%
Seizures & Forfeitures Funds
Interest Income:
Interest - Investments 2,610 1,422 2,000 5,000 3,000 50.0%
Total Interest Income 2,610 1,422 2,000 5,000 3,000 50.0%
Miscellaneous:
Forfeitures 97,784 100,592 100,000 10,000 100,000 0.0%
Total Miscellaneous 97,784 100,592 100,000 10,000 100,000 0.0%
TOTAL SEIZURES & FORFEITURES FUNDS 100,394 102,014 102,000 15,000 103,000 1.0%
Community Center Fund
Local Sales Tax:
Local Sales Tax 2,947,420 3,535,507 3,477,236 3,714,218 3,726,016 7.2%
Total Local Sales Tax 2,947,420 3,535,507 3,477,236 3,714,218 3,726,016 7.2%
Charges for Services:
User Fees - Daily Drop-In 31,289 52,777 30,000 50,500 50,500 68.3%
User Fees - Member Dues 343,628 672,816 620,500 670,000 660,000 6.4%
User Fees - Recreation Programs 86,696 410,986 170,000 405,000 380,000 123.5%
Rental Income 70,717 101,660 67,300 99,402 85,300 26.7%
Concession Sales 129 143 100 100 100 0.0%
Management Contract Revenues 3,970,865 4,726,345 3,980,149 4,550,938 4,609,486 15.8%
Total Charges for Services 4,503,324 5,964,727 4,868,049 5,775,940 5,785,386 18.8%
Interest Income:
Interest - Investments 4,454 (165,041) 3,000 35,000 35,000 1066.7%
Total Interest Income 4,454 (165,041) 3,000 35,000 35,000 1066.7%
Miscellaneous:
Donations 5,200 - - - - 0.0%
Miscellaneous 125,000 160,533 159,050 159,050 159,050 0.0%
Special Events - - - 3,000 3,000 0.0%
Sale of Assets 2,060 - - 11,293 - 0.0%
Insurance Recoveries - 7,261 - - - 0.0%
Total Miscellaneous 132,260 167,794 159,050 173,343 162,050 1.9%
TOTAL COMMUNITY CENTER FUND 7,587,458 9,502,987 8,507,335 9,698,501 9,708,452 14.1%
Town of Oro Valley FY 2023/24 Adopted Budget 72
Financial Overview | Revenue Schedule by Fund
FY 2021 FY 2022 FY 2023 FY 2023 FY 2024 %
Major Revenue Accounts Actual Actual Budget Projected Budget to Budget
Municipal Debt Service Fund
Interest Income:
Interest - Investments 89 7,225 500 60,000 60,000 11900.0%
Total Interest Income 89 7,225 500 60,000 60,000 11900.0%
Federal Grants:
Miscellaneous Grants 43,773 33,289 30,088 30,088 25,146 -16.4%
Total Federal Grants 43,773 33,289 30,088 30,088 25,146 -16.4%
Miscellaneous:
Miscellaneous 97,536 95,776 100,000 93,082 100,000 0.0%
Total Miscellaneous 97,536 95,776 100,000 93,082 100,000 0.0%
TOTAL MUNICIPAL DEBT SERVICE FUND 141,398 136,290 130,588 183,170 185,146 41.8%
Oracle Road Debt Service Fund
Interest Income:
Special Assessments 4,340 20 - - - 0.0%
Penalties 387 - - - - 0.0%
Total Interest Income 4,727 20 - - - 0.0%
Principal Repayments:
Principal Repayments 168,464 - - - - 0.0%
Total Principal Repayments 168,464 - - - - 0.0%
TOTAL ORACLE RD DEBT SERVICE FUND 173,191 20 - - - 0.0%
Townwide Roadway Development Impact Fee Fund
Impact Fees:
Residential Impact Fees 505,460 251,914 338,300 150,000 236,810 -30.0%
Commercial Impact Fees 161,651 62,498 50,000 63,366 50,000 0.0%
Total Impact Fees 667,111 314,412 388,300 213,366 286,810 -26.1%
Interest Income:
Interest - Investments (7,068) (61,177) 4,000 15,000 15,000 275.0%
Total Interest Income (7,068) (61,177) 4,000 15,000 15,000 275.0%
TOTAL ROADWAY IMPACT FEE FUND 660,043 253,235 392,300 228,366 301,810 -23.1%
73 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Revenue Schedule by Fund
FY 2021 FY 2022 FY 2023 FY 2023 FY 2024 %
Major Revenue Accounts Actual Actual Budget Projected Budget to Budget
PAG/RTA Fund
State Grants:
PAG Reimbursements - 70,000 75,000 75,000 30,000 -60.0%
RTA Reimbursements 1,947,977 - 721,574 721,574 - -100.0%
Total State Grants 1,947,977 70,000 796,574 796,574 30,000 -96.2%
Interest Income:
Interest - Investments 12,556 (25,729) - 7,000 7,000 0.0%
Total Interest Income 12,556 (25,729) - 7,000 7,000 0.0%
Miscellaneous:
Miscellaneous 216,069 11,218 - - - 0.0%
Total Miscellaneous 216,069 11,218 - - - 0.0%
Charges for Services:
Real Property Rental Income 28,125 28,125 28,125 28,125 28,125 0.0%
Total Charges for Services 28,125 28,125 28,125 28,125 28,125 0.0%
TOTAL PAG/RTA FUND 2,204,727 83,614 824,699 831,699 65,125 -92.1%
Parks & Recreation Development Impact Fee Fund
Impact Fees:
Residential Impact Fees 423,720 206,112 165,520 129,920 133,280 -19.5%
Total Impact Fees 423,720 206,112 165,520 129,920 133,280 -19.5%
Interest Income:
Interest - Investments (5,940) (13,283) 3,000 4,500 4,500 50.0%
Total Interest Income (5,940) (13,283) 3,000 4,500 4,500 50.0%
TOTAL PARKS IMPACT FEE FUND 417,780 192,829 168,520 134,420 137,780 -18.2%
Police Development Impact Fee Fund
Impact Fees:
Residential Impact Fees 153,450 74,210 52,700 33,141 34,034 -35.4%
Commercial Impact Fees 12,145 10,672 5,000 16,920 5,000 0.0%
Total Impact Fees 165,595 84,882 57,700 50,061 39,034 -32.4%
Interest Income:
Interest - Investments (228) (3,337) 500 200 200 -60.0%
Total Interest Income (228) (3,337) 500 200 200 -60.0%
TOTAL POLICE IMPACT FEE FUND 165,367 81,545 58,200 50,261 39,234 -32.6%
Town of Oro Valley FY 2023/24 Adopted Budget 74
Financial Overview | Revenue Schedule by Fund
FY 2021 FY 2022 FY 2023 FY 2023 FY 2024 %
Major Revenue Accounts Actual Actual Budget Projected Budget to Budget
Capital Fund
State Grants:
Misc State Grants 119,868 - 420,000 - 620,000 47.6%
Total State Grants 119,868 - 420,000 - 620,000 47.6%
Federal Grants:
Misc Federal Grants - 263,024 - - - 0.0%
Total Federal Grants - 263,024 - - - 0.0%
Other Financing Sources:
Bond Proceeds - 25,367,224 - - - 0.0%
Total Other Financing Sources - 25,367,224 - - - 0.0%
Interest Income:
Interest - Investments 1,444 (57,628) 25,000 350,000 100,000 300.0%
Total Interest Income 1,444 (57,628) 25,000 350,000 100,000 300.0%
Miscellaneous:
Vehicle Reserves 633,012 741,012 820,010 820,010 892,540 8.8%
Insurance Recoveries 37,417 13,695 30,000 40,000 15,000 -50.0%
Donations 163,605 147,314 - - - 0.0%
Miscellaneous 92,485 150,797 170,000 100,000 100,000 -41.2%
Total Miscellaneous 926,519 1,052,818 1,020,010 960,010 1,007,540 -1.2%
TOTAL CAPITAL FUND 1,047,831 26,625,438 1,465,010 1,310,010 1,727,540 17.9%
Benefit Self Insurance Fund
Interest Income:
Interest - Investments 4,416 (89,992) 5,000 20,000 25,000 400.0%
Total Interest Income 4,416 (89,992) 5,000 20,000 25,000 400.0%
Miscellaneous:
Self Insurance Premiums - Employer 2,831,442 2,794,220 2,820,956 2,816,388 2,886,798 2.3%
Self Insurance Premiums - Employee 586,627 634,581 636,173 682,431 699,492 10.0%
COBRA Premiums 31,611 23,375 25,000 68,000 68,000 172.0%
Retiree Premiums 53,469 47,761 46,000 46,000 46,000 0.0%
UHC Wellness Program 20,000 20,000 20,000 20,000 20,000 0.0%
Miscellaneous 323,642 330,732 211,348 565,839 544,561 157.7%
Total Miscellaneous 3,846,791 3,850,669 3,759,477 4,198,658 4,264,851 13.4%
TOTAL BENEFIT SELF INSURANCE FUND 3,851,207 3,760,677 3,764,477 4,218,658 4,289,851 14.0%
75 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Revenue Schedule by Fund
FY 2021 FY 2022 FY 2023 FY 2023 FY 2024 %
Major Revenue Accounts Actual Actual Budget Projected Budget to Budget
Water Utility Fund
Water Sales:
Residential Water Sales 10,394,919 10,287,597 11,300,000 10,300,000 11,700,000 3.5%
Commercial Water Sales 902,536 974,823 1,000,000 995,000 1,080,000 8.0%
Irrigation Water Sales 1,579,055 1,388,934 1,465,000 1,316,000 1,669,000 13.9%
Turf Related Water Sales 1,565,038 1,367,924 1,384,000 1,275,000 1,386,000 0.1%
Construction Water Sales 237,525 387,264 234,000 300,000 225,000 -3.8%
Total Water Sales 14,679,073 14,406,542 15,383,000 14,186,000 16,060,000 4.4%
Charges for Services:
Engineer Plan Review Fees 1,186 1,779 5,000 2,837 2,000 -60.0%
Construction Inspection Fees 6,056 44,798 20,000 4,920 10,000 -50.0%
Misc Service Revenue 26,358 33,102 25,000 30,000 25,000 0.0%
Backflow-Install Permit Fee 2,847 2,080 3,000 2,210 2,500 -16.7%
Sewer Fees 381,534 388,564 390,000 380,000 390,000 0.0%
Late Fees 43,765 95,666 90,000 73,000 90,000 0.0%
NSF Fees 2,146 2,033 2,000 2,500 2,000 0.0%
Rain Sensors 23 23 - - - 0.0%
Meter Income 164,917 46,949 55,000 58,000 45,000 -18.2%
New Service Establish Fees 112,055 100,960 100,000 73,000 100,000 0.0%
Reconnect Fees 12,328 16,253 16,000 10,000 16,000 0.0%
Groundwater Preservation Fee 2,617,452 2,413,719 2,400,000 2,200,000 2,400,000 0.0%
Other 119,251 122,055 118,000 126,000 118,000 0.0%
Total Charges for Services 3,489,918 3,267,981 3,224,000 2,962,467 3,200,500 -0.7%
Interest Income:
Interest - Investments (14,911) (350,975) 100,000 100,000 100,000 0.0%
Total Interest Income (14,911) (350,975) 100,000 100,000 100,000 0.0%
Miscellaneous:
Miscellaneous 19,029 660,332 - 121,786 - 0.0%
Insurance Recoveries 20,744 12,404 - 2,982 - 0.0%
Sale of Assets 4,555 15,404 - 11,000 - 0.0%
Total Miscellaneous 44,328 688,140 - 135,768 - 0.0%
TOTAL WATER UTILITY FUND 18,198,408 18,011,688 18,707,000 17,384,235 19,360,500 3.5%
Water Resources Development Impact Fee Fund
Impact Fees:
Residential Impact Fees 3,746,803 1,089,528 958,050 1,400,000 760,053 -20.7%
Non-Residential Impact Fees 353,753 77,558 143,296 185,465 143,296 0.0%
Total Impact Fees 4,100,556 1,167,086 1,101,346 1,585,465 903,349 -18.0%
Interest Income:
Interest - Investments 13,700 (479,186) 150,000 150,000 150,000 0.0%
Total Interest Income 13,700 (479,186) 150,000 150,000 150,000 0.0%
TOTAL WRSDIF FUND 4,114,256 687,900 1,251,346 1,735,465 1,053,349 -15.8%
Town of Oro Valley FY 2023/24 Adopted Budget 76
Financial Overview | Revenue Schedule by Fund
FY 2021 FY 2022 FY 2023 FY 2023 FY 2024 %
Major Revenue Accounts Actual Actual Budget Projected Budget to Budget
Stormwater Utility Fund
Federal Grants:
Miscellaneous Federal Grants - 210,000 0.0%
Total Federal Grants - - - - 210,000 0.0%
State Grants:
Miscellaneous State Grants 152,152 16,906 - - - 0.0%
Total State Grants 152,152 16,906 - - - 0.0%
Charges for Services:
Late Fees 635 1,155 - 310 1,500 0.0%
Stormwater Utility Fee 1,473,177 1,494,024 1,492,500 1,460,000 1,500,000 0.5%
Total Charges for Services 1,473,812 1,495,179 1,492,500 1,460,310 1,501,500 0.6%
Interest Income:
Interest - Investments 1,270 (31,272) 1,500 10,000 10,000 566.7%
Total Interest Income 1,270 (31,272) 1,500 10,000 10,000 566.7%
Miscellaneous:
Miscellaneous 8,735 2,774 - - - 0.0%
Total Miscellaneous 8,735 2,774 - - - 0.0%
TOTAL STORMWATER UTILITY FUND 1,635,969 1,483,587 1,494,000 1,470,310 1,721,500 15.2%
Recreation In Lieu Fee Fund
Charges for Services:
Recreation In Lieu Fees 712 - - - - 0.0%
Total Charges for Services 712 - - - - 0.0%
Interest Income:
Interest - Investments 233 (428) - 100 100 0.0%
Total Interest Income 233 (428) 1,500 100 100 -93.3%
TOTAL REC IN LIEU FEE FUND 945 (428) - 100 100 0.0%
TOTAL REVENUE - ALL FUNDS 97,704,098$ 120,619,446$ 101,988,663$ 101,723,352 104,026,515$ 2.0%
Note: Does not include interfund transfers or carry-forward balances
77 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Revenue Sources
Revenue Sources
Local Sales Tax
Arizona cities and towns under state law have the authority to establish certain taxes for revenue purposes. The local sales tax, as a means of financing municipal services, is the most important source of local revenue for most Arizona cities and towns. The Town of Oro Valley levies a 2.5% tax on sales collected within the town boundaries, with the exception of sales on utilities and construction activity, which are a 4% tax. The Town also levies an additional 6% tax on lodging. The sales tax is collected by the state and remitted to the Town on a weekly basis. Uses Two percent of the 2.5% local sales tax, as well as the 4.0% utility sales tax, are used for any general governmental purpose. The additional 0.5% local sales tax was implemented in March of 2015 and is dedicated to funding the Town’s Community Center operations and the annual debt service on the parks & recreation related bonds. One quarter of the 6% tax on lodging is used to support economic development and tourism efforts. The Town’s adopted financial policies dictate that a minimum of 5% of the Town’s excise tax collections fund capital improvements, asset repair and maintenance needs.
Forecast Projected commercial activity for the Town consists mostly of infill projects and several larger projects deemed one-time in nature. Single family residential activity is expected to be stable in the near term and then decline in FY 26/27 due to reduce land availability for development. The following assumptions were used in compiling the projections:
• Assumes slow economic growth with no major downturns in the 5-year forecast
• Near-term growth in construction related sales taxes then declines in outer years due to reduced available land area for new development
• 3-5% growth in most local sales tax categories, hotel/bed tax modest 5% growth
• Development at the Oro Valley Marketplace; conservative levels of one-time, non-specific commercial development Category (in millions) FY 20/21 Actual
FY 21/22 Actual
FY 22/23 Est. Actual
FY 23/24 Adopted
FY 24/25 Forecast
FY 25/26 Forecast
FY 26/27 Forecast
FY 27/28 Forecast
Construction 4.93 7.01 6.00 5.20 5.21 5.24 6.73 5.55 Utilities 3.26 3.47 3.65 3.50 3.81 3.90 3.98 4.05 Retail 9.97 11.21 11.13 11.28 12.45 13.45 14.85 13.84 Hotel/Motel 1.34 3.42 2.74 2.74 3.79 3.98 4.18 4.38 Restaurant & Bar 2.20 3.06 2.94 2.94 3.29 3.37 3.44 3.51 Other 2.22 2.42 2.29 2.33 2.35 1.85 1.05 2.64 Cable Franchise 0.72 0.76 0.75 0.77 0.77 0.77 0.76 0.75
Total 24.64 31.34 30.67 30.12 31.68 32.54 34.98 34.73
20.6 24.1
28.7 30.1 31.7 32.5 35.0 34.7
24.6
31.3 30.7*
-
5
10
15
20
25
30
35
40
FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28Millions
Budget Actual/Estimate* Forecast
Town of Oro Valley FY 2023/24 Adopted Budget 78
Financial Overview | Revenue Sources
Fines, Licenses and Permits
Revenue from court fines comes from traffic violations and other fines paid for the violation of municipal ordinances. License revenue includes fees charged for obtaining a business license to operate a business within town boundaries. Permit fee revenue includes fees collected from building permits, both residential and commercial, zoning permits and a variety of other programs. Uses The revenue received from fines, licenses and permit fees is placed in the General Fund and used for various general governmental purposes.
Forecast The FY 23/24 revenue budget of $1.87 million is $0.5 million less than the FY 22/23 adopted budget due to lower anticipated revenues from large development projects. Residential permitting revenues and activity are expected to slow in outer years attributable to reduced available land area for new development. The following assumptions were used when compiling the projections:
• Single family residential permits are budgeted at 119 for FY 23/24, projected at 138 for FY 24/25, 197 for FY 25/26, 210 for FY 26/27, and begin declining in FY 27/28 to 133
• Forecast for commercial building activity includes one-time projects subject to fluctuation
• Conservative commercial permitting activity forecast, with specific permitting for the Oro Valley Marketplace
• Development-related permit and fee revenues, such as grading, fire, etc. mirror residential and commercial growth and begin to decline in outer years Category (in millions) FY 20/21 Actual FY 21/22 Actual FY 22/23 Est. Actual FY 23/24 Adopted FY 24/25 Forecast FY 25/26 Forecast FY 26/27 Forecast FY 27/28 Forecast
Residential Building Permits 2.11 1.41 1.07 1.09 1.17 1.32 1.34 1.14
Commercial Building Permits 0.72 0.59 1.07 0.25 0.26 0.26 0.27 0.27
Business Licenses, Fines, & Other 0.67 0.54 0.61 0.53 0.56 0.93 1.15 0.73 Total 3.50 2.55 2.75 1.87 1.98 2.51 2.76 2.14
1.7 2.0
2.4
1.9 2.0
2.5 2.8
2.1
3.5
2.6 2.7*
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28Millions
Budget Actual/Estimate* Forecast
79 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Revenue Sources
State Shared Revenue
Cities and towns in the state receive a portion of the revenues collected by the state of Arizona. These sources consist of the state sales tax, state income tax, and vehicle license tax. Oro Valley receives its share of the state sales and income tax based on the relation of its population to the total population of all incorporated cities and towns in the state based on U.S. Census population figures. Auto Lieu Tax, also known as vehicle license tax, is a part of the vehicle license fees collected by Pima County and is distributed to Oro Valley based on the relation of its population to the total population of all incorporated cities and towns in Pima County. Smart & Safe revenues are taxes collected on the sale of marijuana, and settlement payments from various organizations involved with the distribution, manufacturing, and marketing of opioids within the state. Shared income tax revenues reflect state collections from two years prior. State shared revenue is a significant source of funding and represents 40% of General Fund budgeted revenue for FY 23/24. Uses State Shared Revenue is collected in the General Fund and used for various general governmental purposes.
Forecast State shared revenues are projected to increase 30.4% for FY 23/24 which is attributable to a statutory change in the
state allocation rate from 15% to 18%. State shared income tax revenue growth is expected to slow in FY 24/25 due to a statutory state income tax rate cap of 2.5%. Further budget and legislative tax law changes made at the state level have the potential to impact this revenue source.
Category (in millions) FY 20/21 Actual
FY 21/22 Actual
FY 22/23 Est. Actual
FY 23/24 Adopted
FY 24/25 Forecast
FY 25/26 Forecast
FY 26/27 Forecast
FY 27/28 Forecast State Income Tax 6.58 6.17 9.08 12.84 11.46 10.65 10.86 11.08 State Sales Tax 5.46 6.64 6.74 7.21 7.50 7.88 8.19 8.52 Vehicle License Tax 2.39 2.27 2.32 2.58 2.73 2.88 3.04 3.22 Other - 0.24 0.37 0.32 0.37 0.41 0.45 0.49 Total 14.44 15.32 18.50 22.95 22.05 21.82 22.55 23.30
13.2 13.7
17.6
23.0 22.1 21.8 22.5 23.3
14.4 15.3
18.5*
-
5
10
15
20
25
FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28Millions
Budget Actual/Estimate* Forecast
Town of Oro Valley FY 2023/24 Adopted Budget 80
Financial Overview | Revenue Sources
Highway User Revenue (HURF)
HURF revenues are primarily generated from the state collected gasoline tax. Cities and towns receive 27.5% of highway user revenues. One-half of the monies that Oro Valley receives is based on its population in relation to the population of all cities and towns in the state. The remaining half is allocated on the basis of “county of origin” of gasoline sales and the relation of Oro Valley’s population to the population of all cities and towns in Pima County. The intent of this distribution formula is to spread a portion of the money across the state solely on the basis of population while the remaining money flows to those areas with the highest gasoline sales. Uses There is a state constitutional restriction on the use of the highway user revenues which requires that these funds be used solely for street and highway purposes. The Town has a separate fund – Highway Fund – where this revenue is collected and distributed for such purposes.
Forecast HURF revenue collections are a major source of funding for roadway improvements and account for nearly all of Highway
Fund budgeted revenue for FY 23/24. This revenue source is impacted by economic conditions, as well as any actions taken by the state legislature. The following assumptions were used in compiling the projections:
• HURF revenues will grow about 3.4-3.6% per year over the next four years in accordance with Arizona Department of Transportation (ADOT) projections
• Growth slows in outer years as demand is projected to decline with electric vehicle usage increases
• Forecast assumes no changes in allocation or tax levy Category (in millions) FY 20/21 Actual FY 21/22 Actual FY 22/23 Est. Actual FY 23/24 Adopted FY 24/25 Forecast FY 25/26 Forecast FY 26/27 Forecast FY 27/28 Forecast
HURF Revenue 3.71 3.98 4.13 4.33 4.49 4.65 4.80 4.97
Total 3.71 3.98 4.13 4.33 4.49 4.65 4.80 4.97
3.5 3.6 4.1 4.3 4.5 4.6 4.8 5.0
3.7 4.0 4.1*
-
1
2
3
4
5
6
FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28Millions
Budget Actual/Estimate* Forecast
81 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Revenue Sources
Charges for Services
Charges for Services are fees charged for specific services provided by the Town. They include internal administrative services provided to enterprise funds (i.e., water and stormwater), recreation user fees, development services fees, stormwater fees, various water fees and fares received from transit services. Except for development services fees and certain general services and water fees, the anticipated revenue generated from charges for services is generally correlated to population change and can be expected to increase with population growth. New or added recreation facilities and amenities would also cause these revenues to increase. Certain water fees and fees for development services are tied to development activity and will increase/decrease accordingly based on development activity within the town.
Uses Revenues in this category cover many types of charges for services and therefore, the usage various depending on fee
type. Fee amounts are based upon either a partial or full cost-recovery methodology and are only increased where absolutely necessary to cover costs.
Forecast For FY 23/24 and beyond, it is assumed these revenues continue to grow. The following assumptions were used in the projections:
• Revenue generated from development activity is tied to anticipated single family residential and commercial building permits
• 3% growth rate for administrative services charged to enterprise funds
• 2.7-2.9% growth rate for 36-hole golf revenue beyond FY 24/25
• 3-4% annual growth in recreation fee revenues Category (in millions) FY 20/21 Actual FY 21/22 Actual FY 22/23 Est. Actual FY 23/24 Adopted FY 24/25 Forecast FY 25/26 Forecast FY 26/27 Forecast FY 27/28 Forecast General Services 1.29 1.69 2.03 2.28 2.34 2.40 2.47 2.53 Development Services 0.15 0.10 0.12 0.12 0.12 0.12 0.12 0.12 Recreation Fees 5.09 6.86 6.54 6.58 7.12 7.29 7.48 7.67 Transit 0.00 (0.00) - 0.04 0.04 0.04 0.04 0.04 Water 0.87 0.85 0.76 0.80 0.81 0.82 0.82 0.83 Stormwater 1.47 1.50 1.46 1.50 1.50 1.51 1.52 1.52 Total 8.87 11.00 10.91 11.32 11.93 12.17 12.45 12.72
8.0 9.1 10.2 11.3 11.9 12.2 12.4 12.7
8.9
11.0 10.9*
-
2
4
6
8
10
12
14
FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28Millions
Budget Actual/Estimate* Forecast
Town of Oro Valley FY 2023/24 Adopted Budget 82
Financial Overview | Revenue Sources
Water Revenue
The Town’s Water Utility Fund is a self-sustaining fund with revenue generated from water sales, service fees and miscellaneous charges. Annually, the Oro Valley Water Utility Commission reviews and develops recommendations for water revenue requirements, water rates and fee structures. Uses The revenue collected from water sales is used for personnel, operations and maintenance, capital improvements to existing systems, and debt service. Revenue collected from the groundwater preservation fee (GPF) is used for renewable water capital infrastructure costs and related debt service.
Forecast Revenue projections relating to water sales and preservation fees are based on growth of the population as well as proposed rate increases. The following assumptions were used in compiling the projections:
• 4.8% potable water rate increase effective in FY 23/24
• 1% annual growth in fees, 6-10% annual growth in water sales
• Growth is estimated at 150 new connections annually through FY 27/28
• No groundwater preservation fee increases over the next five years Category (in millions) FY 20/21 Actual
FY 21/22 Actual
FY 22/23 Est. Actual
FY 23/24 Adopted
FY 24/25 Forecast
FY 25/26 Forecast
FY 26/27 Forecast
FY 27/28 Forecast
Water Sales 14.68 14.41 14.19 16.06 17.46 18.75 20.14 21.26
Groundwater Preservation Fee 2.62 2.41 2.20 2.40 2.42 2.45 2.47 2.50
Total 17.30 16.82 16.39 18.46 19.89 21.20 22.61 23.76
15.3 16.4 17.8 18.5 19.9 21.2 22.6 23.8
17.3 16.8 16.4*
-
5
10
15
20
25
FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28Millions
Budget Actual/Estimate* Forecast
83 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Revenue Sources
Development Impact Fees
Development Impact Fees are fees assessed by the Town on new development for the purpose of financing infrastructure ultimately needed to support a growing community. State legislation has restricted the types of impact fees collected with increased limitations placed on their use. Commercial impact fees are assessed to support roadways, water facilities and police; residential impact fees are assessed to support roadways, water facilities, police, and parks & recreation facilities. Uses As mandated by state law, development impact fee revenue can only be used to support new projects and expansion-
related capital infrastructure.
Forecast Residential permitting revenues and activity are expected to slow in outer years attributable to reduced available land
area for new development. The following assumptions were used in compiling the projections:
• Single family residential permits are budgeted at 119 for FY 23/24, projected at 138 for FY 24/25, 197 for FY 25/26, 210 for FY 26/27, and begin declining in FY 27/28 to 133
• Conservative commercial building activity Category (in millions) FY 20/21 Actual
FY 21/22 Actual
FY 22/23 Est. Actual
FY 23/24 Adopted
FY 24/25 Forecast
FY 25/26 Forecast
FY 26/27 Forecast
FY 27/28 Forecast Residential Fees 0.86 1.62 1.71 1.16 1.25 1.41 1.43 1.21
Commercial Fees 4.50 0.15 0.27 0.20 0.20 0.21 0.21 0.21
Total 5.36 1.77 1.98 1.36 1.45 1.62 1.64 1.43
2.6 2.7
1.7 1.4 1.4 1.6 1.6 1.4
5.4
1.8 2.0*
-
1
2
3
4
5
6
FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28Millions
Budget Actual/Estimate* Forecast
Town of Oro Valley FY 2023/24 Adopted Budget 84
Financial Overview | Revenue Sources
Grants
The Town receives federal and state grant funding from various agencies and sources, mainly for roadway projects or to support public safety. Specific restrictions exist on all grants in regard to how the funds may be used or what they may be spent on. Grants provide the Town with critical funding for public infrastructure projects and Police Department task force operations and equipment. Uses As mentioned above, historically the bulk of the Town’s grant funding is for roadway projects and public safety. Funding from the Pima Association of Governments (PAG) and the Regional Transportation Authority (RTA) provides for roadway expansion and improvement projects.
Forecast Grant funding will fluctuate from year to year and grants are typically on-time in nature and awarded without advance notice. Therefore, the Town will forecast very conservatively for grants. Funding for roadway projects fluctuates widely, depending on current or planned projects and available funding. The following assumptions were used in compiling the projections:
• Funding for roadway projects remains uncertain and is dependent on future regional voter approved plans
• No future federal funding is assumed
• Modest growth in police overtime and equipment grants Category ( in millions) FY 20/21 Actual FY 21/22 Actual FY 22/23 Est. Actual FY 23/24 Adopted FY 24/25 Forecast FY 25/26 Forecast FY 26/27 Forecast FY 27/28 Forecast
Roadway Projects 12.38 0.07 0.80 0.03 0.08 0.00 0.08 0.00 Public Safety 0.40 0.61 1.07 1.06 0.66 0.67 0.68 0.68 Stormwater - 0.02 - - - - - - Federal 0.16 5.59 5.38 2.41 - - - -
Other (0.35) 0.30 0.10 1.43 0.62 0.61 0.61 0.60
Total 12.59 6.59 7.35 4.93 1.36 1.29 1.36 1.29
8.1 9.0
11.9
4.9
1.4 1.3 1.4 1.3
12.6
6.6 7.3*
-
2
4
6
8
10
12
14
FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28Millions
Budget Actual/Estimate* Forecast
85 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Expenditure Schedule by Fund
Expenditure Schedule by Fund
FY 2021 FY 2022 FY 2023 FY 2023 FY 2024 %
Major Expenditure Accounts Actual Actual Budget Projected Budget to Budget
General FundClerk 400,344 375,414 422,705 431,246 419,897 -0.7%
Community & Economic Development 2,696,251 2,902,055 3,280,764 3,064,158 3,882,445 18.3%
Council 161,901 192,014 199,145 199,145 209,203 5.1%
Finance 836,613 936,561 1,111,460 880,810 850,456 -23.5%
General Administration 5,008,788 12,922,034 4,077,234 3,306,623 2,555,536 -37.3%
Human Resources 437,350 480,631 569,905 547,534 590,520 3.6%
Innovation & Technology 3,578,668 3,992,280 4,797,809 4,486,939 6,271,309 30.7%
Legal 863,783 894,601 1,015,753 1,023,542 1,132,503 11.5%
Parks and Recreation 3,130,364 3,460,952 3,775,162 3,699,552 4,664,040 23.5%
Police 16,602,097 17,531,660 20,403,472 20,089,276 20,410,591 0.0%
Public Works 4,067,848 5,580,572 6,200,227 5,818,436 6,763,736 9.1%
Town Court 802,123 861,186 1,059,674 959,785 1,010,662 -4.6%
Town Manager's Office 946,617 1,074,627 1,160,173 1,270,531 1,638,716 41.2%
Subtotal 39,532,747 51,204,588 48,073,483 45,777,577 50,399,614 4.8%
Special Revenue Funds
Highway User Revenue Fund 3,352,817 4,035,539 4,652,189 4,604,011 6,468,791 39.0%Grants & Contributions Fund - 90,575 5,741,059 3,193,724 4,269,152 0.0%Community Center Fund 5,615,181 6,005,895 9,085,892 8,453,818 8,440,482 -7.1%
Seizures & Forfeitures Funds 77,778 130,961 100,000 80,000 100,000 0.0%
Subtotal 9,045,776 10,262,969 19,579,140 16,331,553 19,278,425 -1.5%
Debt Service Funds
Municipal Debt Service Fund 1,221,882 19,499,044 4,341,059 4,340,559 4,037,854 -7.0%
Oracle Road Improvement District Fund 175,838 - - - - 0.0%
Subtotal 1,397,720 19,499,044 4,341,059 4,340,559 4,037,854 -7.0%
Capital Project Funds
Parks and Recreation Impact Fee Fund 880,708 - 7,000 4,000 603,000 100.0%Police Impact Fee Fund - - 2,000 1,143 857 100.0%
Capital Fund 2,725,682 10,191,746 28,935,575 19,273,708 23,376,156 -19.2%
Water Resources Dev. Impact Fee 3,294,230 1,609,040 3,287,005 1,908,291 12,203,300 271.3%
PAG/RTA Fund 1,338,628 458,866 1,308,574 1,204,624 468,000 -64.2%
Roadway Impact Fee Fund 1,647,354 292,425 765,000 8,571 6,429 -99.2%
Subtotal 9,886,602 12,552,077 34,305,154 22,400,337 36,657,742 6.9%
Enterprise FundsWater Utility 19,125,991 18,444,270 20,055,870 19,479,187 20,931,834 4.4%
Stormwater Utility 1,197,222 1,124,429 2,107,024 1,844,903 1,822,461 -13.5%
Subtotal 20,323,213 19,568,698 22,162,894 21,324,090 22,754,295 2.7%
Internal Service Funds
Benefit Self Insurance 3,561,013 3,269,744 3,764,477 4,218,658 4,289,851 14.0%
Subtotal 3,561,013 3,269,744 3,764,477 4,218,658 4,289,851 14.0%
Total Expenditures - All Funds 83,747,071$ 116,357,121$ 132,226,207$ 114,392,774$ 137,417,781$ 3.9%
Note: Does not include depreciation, amortization, interfund transfers or contingency amounts
Town of Oro Valley FY 2023/24 Adopted Budget 86
Financial Overview | Expenditures by Department
Expenditures by Department
Department/Program FTE
General
Fund
Special
Revenue
Funds
Debt
Service
Funds
Capital
Project
Funds
Enterprise
Funds
Internal
Service
Funds Total
Finance 6.20 850,456 850,456
6.20 850,456 - - - - - 850,456
Human Resources 4.00 590,520 590,520
4.00 590,520 - - - - - 590,520
Innovation & Technology 18.80 6,271,309 6,271,309
18.80 6,271,309 - - - - - 6,271,309
Clerk 3.96 419,897 419,897
3.96 419,897 - - - - - 419,897
Community & Economic Dev.
Administration 2.00 354,184 354,184
Permitting 9.48 1,160,335 1,160,335
Planning 7.30 1,190,567 1,190,567
Inspection and Compliance 8.00 777,800 777,800
Economic Development 2.00 399,559 399,559
28.78 3,882,445 - - - - - 3,882,445
Council 7.00 209,203 209,203
7.00 209,203 - - - - - 209,203
General Administration - 2,555,536 600,000 10,000 10,286 4,289,851 7,465,673
- 2,555,536 600,000 10,000 10,286 - 4,289,851 7,465,673
Legal 7.00 1,132,503 1,132,503
7.00 1,132,503 - - - - - 1,132,503
Town Court 9.46 1,010,662 1,010,662
9.46 1,010,662 - - - - - 1,010,662
Town Manager's Office
Administration 7.38 1,075,811 1,075,811
Communications 4.00 562,905 562,905 11.38 1,638,716 - - - - - 1,638,716
Parks and RecreationAdministration 3.00 564,730 564,730
Parks Maintenance 13.92 1,861,981 1,861,981
Recreation & Culture 6.70 716,400 40,000 756,400
Aquatics 22.17 1,520,929 1,520,929
Community Center 23.02 8,229,798 8,229,798
68.81 4,664,040 8,269,798 - - - - 12,933,838
(A)
(D)
(C)(B)
(A)
(L)
This table represents a summary of the adopted FY 2023/24 budget and is structured around major program areas within departments which represent services and operations viable to the Town and to which resources are allocated on a fiscal year basis. Footnotes are provided to delineate the specific fund(s) that support(s) each program. The table also includes funding sources and full-time equivalent employees (FTEs) for each program. Further information on a specific program can be found in the Department Budgets Section of the budget document.
87 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Expenditures by Department
Department/Program FTE
General
Fund
Special
Revenue
Funds
Debt
Service
Funds
Capital
Project
Funds
Enterprise
Funds
Internal
Service
Funds Total
Police 139.73 20,410,591 590,500 21,001,091
139.73 20,410,591 590,500 - - - - 21,001,091
Public Works
Administration 15.75 1,710,872 150,000 254,765 2,115,637
Transportation Engineering 12.00 5,719,291 5,719,291
Street Maintenance - 749,500 749,500
Fleet & Facilitiy Management 9.00 3,090,096 3,090,096
Stormwater Utility 9.73 1,822,461 1,822,461
Transit Services 31.63 1,717,768 1,509,400 3,227,168
78.11 6,518,736 8,128,191 - 254,765 1,822,461 - 16,724,153
Water Utility
Administration 9.48 3,302,375 3,302,375
Engineering & Planning 6.00 8,022,087 8,022,087
Operations 25.00 5,962,932 5,962,932
Water Resource Development - 12,128,714 12,128,714
40.48 - - - 12,128,714 17,287,394 - 29,416,108
Debt Service 210,684 4,027,854 74,586 3,644,440 7,957,564
- - 210,684 4,027,854 74,586 3,644,440 - 7,957,564
Capital Improvements 245,000 1,479,252 24,189,391 25,913,643
- 245,000 1,479,252 - 24,189,391 - - 25,913,643
FY 2023/24 Adopted Budget 423.71 50,399,614 19,278,425 4,037,854 36,657,742 22,754,295 4,289,851 137,417,781
(A) Grants & Contributions Fund (G) Capital Fund
(B) Municipal Debt Service Fund (H) Stormwater Utility Fund
(C) Benefit Self Insurance Fund (I) Water Utility Fund
(D) Community Center Fund (J) Water Resource Development Impact Fee Fund
(E) Seizures & Forfeitures Funds (K) Capital Fund, Roadway Dev. Impact Fee Fund, PAG/RTA Fund, Parks & Rec Impact Fee Fund
(F) Highway Fund (L) Roadway Dev. Impact Fee Fund, Parks & Rec Impact Fee Fund, Police Impact Fee Fund
(F)
(F)
(H)
(A,E)
(I)
(I)
(B)
(K)
(I)
(G)
(J)
(J)(I)
(A)
(D)
(A)
(A)
Town of Oro Valley FY 2023/24 Adopted Budget 88
Financial Overview | Personnel Summary
Personnel Summary
Personnel and Employee Compensation Personnel service represents 48% of the total operating budget, which is common in a service-based organization. Even
so, since it is a significant portion of the budget, employee compensation, staffing levels and benefit costs are scrutinized and closely managed.
The budget includes funds to continue normal step increases and merit adjustments for all eligible Town employees. Benefit costs rose slightly due to merit and step increases as well as new FTEs in the budget. Based on the financial scenario laid out for the next five years, the Town’s recurring revenues will need to be re-analyzed each year to confirm and determine an affordable and feasible level of future increases in overall compensation and benefits. Staffing Level Changes The following table summarizes the changes in staffing levels for the new fiscal year. FY 22/23 Budget FY 23/24 Budget +/-
Clerk 3.73 3.96 +0.23 Town Court 8.98 9.46 +0.48 Finance 9.20 6.20 -3.00 Innovation & Technology 16.80 18.80 +2.00 Town Manager’s Office 8.38 11.38 +3.00 Parks & Recreation 67.08 68.81 +1.73 Police 138.73 139.73 +1.00 Public Works 63.71 66.11 +2.40 Total 415.87 423.71 +7.84 The FY 23/24 budget includes five new full-time and two part-time positions, as well as various position reclassifications. The Clerk’s office increased the hours of a part-time office assistant. The Town Court added a new part-time court security manager position and reclassified a deputy court administrator to a court administrator. In Community and Economic Development (CED), a senior code compliance specialist was reclassified to a zoning inspection technician. In the Finance department, the procurement positions were reclassified to the Town Manager’s Office. This includes the chief procurement officer, contract specialist, and procurement specialist positions. Within the Innovation & Technology department a new cybersecurity analyst position was added to maintain a focus on cybersecurity and a business systems analyst was added to assist the Police Department in IT oriented software projects, upgrades, and improvements. In Parks and Recreation, an additional full-time park maintenance worker II will support new acreage and facilities associated with the Naranja Park expansion. An additional park monitor will help cover after hours and special events at Town parks as they continue to grow. A part-time recreation supervisor position was reclassified to a full-time position. The Town’s Police department added a police officer and reclassified a police records specialist to a new accreditation, audits, and inspections coordinator, a civilian position, to manage the reoccurring accreditation program. In Public Works, a new transit supervisor position was added. Additionally, in the transit services, more hours were budgeted for transit dispatchers and transit drivers to accommodate growing demand. Refer to the Personnel Schedule document for a detailed listing of positions by department and/or program.
89 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Personnel Summary
Benefit Rates and Costs For employee coverage of medical premiums, the Town pays 85% of the premium and the employee pays 15%. For employee coverage of dental premiums, the Town pays 100% of the premium. Premiums in FY 23/24 have increased 6.92% for the PPO health plan. The contribution rate for the Arizona State Retirement System (ASRS) will increase slightly from 12.03% to 12.14%. The rate for Public Safety Personnel Retirement System (PSPRS) is projected to decrease given the payment of the unfunded liability in FY 21/22. However, until a new actuarial report is released, the Town is choosing to continue budgeting a higher rate to maintain its funding ratio in the plan. The Correction Officers Retirement Plan (CORP) rate is projected to decrease given the payment of the unfunded liability; the Town is choosing to keep the rate the same as PSPRS. The table below illustrates the changes to employee benefit rates over the last several years. Employer Matching Rates FY 20/21 FY 21/22 FY 22/23 FY 23/24 Arizona State Retirement System (ASRS) 12.22% 12.22% 12.03% 12.14% Public Safety Personnel Retirement System (PSPRS) 41.65% 41.65% 41.65% 43.47% Correction Officers Retirement Plan (CORP) 75.53% 79.23% 118.45% 43.47% Medical Premiums (per year)* $4,132 $4,492 $4,492 $4,803 Dental Premiums (per year)** $300 $314 $314 $314
* single (employee-only) PPO coverage ** single (employee-only) base plan coverage Employees per Capita Looking at an employee per capita trend, full-time equivalent positions (FTEs) have remained relatively flat since 2016.
FTEs per capita may increase gradually with the town’s continued population growth, subject to available funding sources.
General Fund79%
Water Utility10%
Community Center
Fund5%
Highway Fund3%
Stormwater Utility2%
Capital Fund
1%
FY 23/24 Personnel by Fund
Town of Oro Valley FY 2023/24 Adopted Budget 90
Financial Overview | Personnel Summary
8.1
8.5 8.4 8.5 8.5 8.3 8.2 8.0 8.2
5.0
6.0
7.0
8.0
9.0
10.0
2016 2017 2018 2019 2020 2021 2022 2023Estimate 2024Budget
FTEs per Thousand Town Population
91 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | FTE Summary by Fund
Full-Time Equivalent (FTE) Summary by Fund
FY 2021 FY 2022 FY 2024 +/-
Actual Actual Budget Projected Budget to Budget
General Fund
Clerk 4.73 4.73 3.73 3.96 3.96 0.23
Community & Economic Dev.27.78 27.78 28.78 28.78 28.78 -
Council 7.00 7.00 7.00 7.00 7.00 -
Town Court 8.48 8.50 8.98 8.98 9.46 0.48
Finance 7.20 8.20 9.20 6.20 6.20 (3.00)
Human Resources 4.00 4.00 4.00 4.00 4.00 -
Innovation & Technology 14.80 15.80 16.80 16.80 18.80 2.00
Legal 6.00 6.00 7.00 7.00 7.00 -
Town Manager's Office 8.38 8.38 8.38 11.38 11.38 3.00
Parks and Recreation 41.55 41.55 44.31 45.78 45.79 1.48
Police 135.13 134.73 138.73 138.73 139.73 1.00
Public Works 45.64 46.64 51.98 53.38 54.38 2.40
General Fund Personnel 310.69 313.31 328.89 331.99 336.48 7.58
Special Revenue Funds
Highway Fund 15.00 12.00 12.00 12.00 12.00 -
Community Center Fund 21.55 21.55 22.77 21.55 23.02 0.25
Seizure Funds 1.00 - - - - -
Special Revenue Funds Personnel 37.55 33.55 34.77 33.55 35.02 0.25
Capital Project Funds
Capital Fund - 2.00 2.00 2.00 2.00 -
Capital Projects Funds Personnel - 2.00 2.00 2.00 2.00 -
Enterprise Funds
Water Utility 40.48 40.48 40.48 40.48 40.48 -
Stormwater Utility 10.25 10.73 9.73 9.73 9.73 -
Enterprise Funds Personnel 50.73 51.21 50.21 50.21 50.21 -
Total Town FTEs 398.97 400.07 415.87 417.75 423.71 7.84
FY 2023
Town of Oro Valley FY 2023/24 Adopted Budget 92
Financial Overview | Personnel Schedule
Personnel Schedule
FY 2021 FY 2022 FY2024 +/-
Actual Actual Budget Projected Budget to Budget
Clerk
Town Clerk 1.00 1.00 1.00 1.00 1.00 -
Deputy Town Clerk 1.00 1.00 1.00 1.00 1.00 -
Senior Office Specialist 1.00 1.00 1.00 1.00 1.00 -
Office Assistant 1.48 1.48 0.73 0.96 0.96 0.23
Communications Intern 0.25 0.25 - - -
Total Clerk 4.73 4.73 3.73 3.96 3.96 0.23
Full-time employees:3
Part-time employees:2
Community and Economic Development (CED)
CED Director 1.00 1.00 1.00 1.00 1.00 -
Division Manager, Permitting 1.00 1.00 1.00 1.00 1.00 -
Division Manager, Planning 1.00 1.00 1.00 1.00 1.00 -
Div. Mgr., Inspect. & Comp./Bldg. Official 1.00 1.00 1.00 1.00 1.00 -
Senior Civil Engineer 1.00 1.00 1.00 1.00 1.00 -
Principal Planner 2.00 2.00 2.00 2.00 2.00 -
Senior Planner 1.00 1.00 1.00 1.00 1.00 -
Planner 1.00 1.00 1.00 1.00 1.00 -
Economic Development Specialist 1.00 1.00 1.00 1.00 1.00 -
Senior Planning Technician 1.00 1.00 1.00 1.00 1.00 -
Engineering Design Reviewer 1.00 1.00 1.00 1.00 1.00 -
Plans Examiner II 2.00 2.00 2.00 2.00 2.00 -
Building Inspector II 4.00 4.00 4.00 4.00 4.00 -
Building Inspector I 1.00 1.00 1.00 1.00 1.00 -
Plans Examiner I 1.00 1.00 1.00 1.00 1.00 -
Management Analyst - - 1.00 1.00 1.00 -
Senior Code Compliance Specialist - - - 1.00 1.00 1.00
Code Compliance Specialist 1.00 1.00 1.00 1.00 1.00 -
Zoning Inspection Technician 1.00 1.00 1.00 - - (1.00)
Building Permit Technician 2.00 2.00 2.00 2.00 2.00 -
Senior Office Specialist 1.00 2.00 1.00 1.00 1.00 -
Office Specialist 0.48 0.48 0.48 0.48 0.48 -
Senior Office Assistant 1.00 1.00 1.00 1.00 1.00 -
Office Assistant 1.00 - 1.00 1.00 1.00 -
Intern 0.30 0.30 0.30 0.30 0.30 -
Total CED 27.78 27.78 28.78 28.78 28.78 -
Full-time employees:28
Part-time employees:2
Council
Mayor 1.00 1.00 1.00 1.00 1.00 -
Councilmember 6.00 6.00 6.00 6.00 6.00 -
Total Council 7.00 7.00 7.00 7.00 7.00 -
Full-time employees:-
Part-time employees:7
FY 2023
93 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Personnel Schedule
FY 2021 FY 2022 FY2024 +/-
Actual Actual Budget Projected Budget to Budget
Finance
Chief Financial Officer 1.00 1.00 1.00 1.00 1.00 -
Deputy Finance Director - - - 1.00 1.00 1.00
Finance and Budget Administrator 1.00 1.00 1.00 - - (1.00)
Senior Budget Analyst 1.00 1.00 1.00 1.00 1.00 -
Senior Accountant 1.00 2.00 2.00 2.00 2.00 -
Chief Procurement Officer 1.00 1.00 1.00 - - (1.00)
Contract Specialist - 1.00 1.00 - - (1.00)
Procurement Specialist 1.00 - 1.00 - - (1.00)
Accounting Specialist 1.00 1.00 1.00 1.00 1.00 -
Senior Office Specialist 0.20 0.20 0.20 0.20 0.20 -
Total Finance 7.20 8.20 9.20 6.20 6.20 (3.00)
Full-time employees:6
Part-time employees:-
Human Resources
Human Resources Director 1.00 1.00 1.00 1.00 1.00 -
Human Resources Analyst 2.00 3.00 3.00 3.00 3.00 -
Human Resources Assistant 1.00 - - - - -
Total Human Resources 4.00 4.00 4.00 4.00 4.00 -
Full-time employees:4
Part-time employees:-
Innovation & Technology
Chief Innovation Officer 1.00 1.00 1.00 1.00 1.00 -
Network Manager 1.00 1.00 1.00 1.00 1.00 -
Applications Manager 1.00 1.00 1.00 1.00 1.00 -
Network Administrator 1.00 1.00 2.00 2.00 2.00 -
Cybersecurity Analyst - - - - 1.00 1.00
Business Systems Analyst 2.00 3.00 2.00 2.00 3.00 1.00
IT Analyst 1.00 1.00 1.00 1.00 1.00 -
Database Analyst 1.00 1.00 1.00 1.00 1.00 -
Senior GIS Administrator 1.00 1.00 1.00 1.00 1.00 -
GIS Analyst 1.00 1.00 1.00 1.00 1.00 -
IT Technician 1.00 1.00 2.00 2.00 2.00 -
Strategic Initiatives Manager 1.00 1.00 - - - -
Management Analyst - - 1.00 1.00 1.00 -
Constituent Services Coordinator 1.00 1.00 1.00 1.00 1.00 -
Emergency Mgmt. & Safety Coordinator 1.00 1.00 1.00 1.00 1.00 -
Senior Office Specialist 0.80 0.80 0.80 0.80 0.80 -
Total Innovation & Technology 14.80 15.80 16.80 16.80 18.80 2.00
Full-time employees:19
Part-time employees:-
FY 2023
Town of Oro Valley FY 2023/24 Adopted Budget 94
Financial Overview | Personnel Schedule
FY 2021 FY 2022 FY2024 +/-
Actual Actual Budget Projected Budget to Budget
Legal
Legal Services Director 1.00 1.00 1.00 1.00 1.00 -
Chief Civil Deputy Attorney 1.00 1.00 1.00 1.00 1.00 -
Assistant Town Prosecutor 1.00 1.00 2.00 2.00 2.00 -
Senior Paralegal 1.00 1.00 1.00 - - (1.00)
Paralegal I 1.00 1.00 1.00 2.00 2.00 1.00
Legal Secretary 1.00 1.00 1.00 1.00 1.00 -
Total Legal 6.00 6.00 7.00 7.00 7.00 -
Full-time employees:7
Part-time employees:-
Town Court
Magistrate Judge 1.00 1.00 1.00 1.00 1.00 -
Court Administrator 1.00 1.00 2.00 - 1.00 (1.00)
Deputy Court Administrator - 1.00 - 2.00 1.00 1.00
Court Compliance Specialist - - - 1.00 1.00 1.00
Courtroom Clerk 1.00 1.00 1.00 - - (1.00)
Senior Court Clerk 3.00 3.00 1.00 1.00 1.00 -
Court Clerk 1.48 1.00 3.00 3.00 3.00 -
Probation Compliance Officer - - 0.48 0.48 0.48 -
Court Security Manager - - - - 0.48 0.48
Court Security Officer 1.00 - - - - -
Court Security Coordinator - 0.50 0.50 0.50 0.50 -
Total Town Court 8.48 8.50 8.98 8.98 9.46 0.48
Full-time employees:8
Part-time employees:3
Town Manager's Office
Town Manager 1.00 1.00 1.00 1.00 1.00 -
Deputy Town Manager 1.00 1.00 1.00 1.00 1.00 -
Executive Assistant 1.00 1.00 1.00 1.00 1.00 -
Management Analyst 1.00 1.00 1.00 1.00 1.00 -
Chief Procurement Officer - - - 1.00 1.00 1.00
Contract Specialist - - - 1.00 1.00 1.00
Procurement Specialist - - - 1.00 1.00 1.00
Management Intern 0.38 0.38 0.38 0.38 0.38 -
Communications & Marketing Administrator 1.00 1.00 1.00 1.00 1.00 -
Digital Content Specialist 1.00 1.00 1.00 1.00 1.00 -
Marketing & Communications Specialist 1.00 1.00 1.00 1.00 1.00 -
Public Information Officer 1.00 1.00 1.00 1.00 1.00 -
Total Town Manager's Office 8.38 8.38 8.38 11.38 11.38 3.00
Full-time employees:11
Part-time employees:1
FY 2023
95 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Personnel Schedule
FY 2021 FY 2022 FY2024 +/-
Actual Actual Budget Projected Budget to Budget
Parks and Recreation
Parks & Recreation Director 1.00 1.00 1.00 1.00 1.00 -
Parks & Recreation Deputy Director 1.00 1.00 1.00 1.00 1.00 -
Recreation & Culture Manager 1.00 1.00 1.00 - - (1.00)
Recreation Facility Manager 1.00 1.00 1.00 2.00 2.00 1.00
Parks Maintenance Superintendent 1.00 1.00 1.00 1.00 1.00 -
Parks Maintenance Supervisor 1.00 1.00 1.00 1.00 1.00 -
Parks Maintenance Worker III 1.00 1.00 1.00 1.00 1.00 -
Parks Maintenance Worker II 2.00 2.00 2.00 2.00 3.00 1.00
Parks Maintenance Worker I 5.00 5.00 6.00 6.00 6.00 -
Park Monitor 0.96 0.96 1.44 1.44 1.92 0.48
Senior Office Specialist 2.00 2.00 2.00 2.00 2.00 -
Office Specialist 1.00 1.00 1.00 1.00 1.00 -
Assistant Recreation Manager 3.00 3.00 3.00 3.00 3.00 -
Recreation Leader 2.91 2.91 2.91 1.91 1.91 (1.00)
Aquatics Manager 1.00 1.00 1.00 1.00 1.00 -
Assistant Aquatics Manager 1.00 1.00 1.00 1.00 1.00 -
Lifeguard Supervisor 2.25 2.25 3.00 3.00 3.00 -
Aquatics Shift Leader 2.54 2.54 2.54 2.54 2.54 -
Aquatics Facility Attendant 4.80 4.80 5.12 5.12 5.12 -
Custodian 0.48 0.48 0.48 0.48 0.48 -
Recreation Supervisor 0.75 0.75 0.75 2.00 2.00 1.25
Facility Attendant 4.25 4.25 4.72 4.72 4.72 -
Recreation Aide 6.63 6.63 6.63 6.63 6.63 -
Fitness Instructor 2.00 2.00 2.96 2.96 2.96 -
Lifeguard/Swim Instructor 13.53 13.53 13.53 13.53 13.53 -
Total Parks and Recreation 63.10 63.10 67.08 67.33 68.81 1.73
Full-time employees:25
Part-time employees:37
FY 2023
Town of Oro Valley FY 2023/24 Adopted Budget 96
Financial Overview | Personnel Schedule
FY 2021 FY 2022 FY2024 +/-
Actual Actual Budget Projected Budget to Budget
Police
Police Chief 1.00 1.00 1.00 1.00 1.00 -
Deputy Police Chief 1.00 1.00 1.00 1.00 1.00 -
Commander 2.00 2.00 2.00 2.00 2.00 -
Lieutenant 5.00 5.00 5.00 5.00 5.00 -
Sergeant 13.00 13.00 14.00 14.00 14.00 -
Public Relations Sergeant 1.00 1.00 - - - -
Public Information Officer - - 1.00 1.00 1.00 -
Detective 7.00 7.00 9.00 9.00 9.00 -
Lead Police officer 7.00 7.00 7.00 7.00 7.00 -
Police Officer 69.88 66.00 66.00 66.00 67.00 1.00
Traffic Investigator 1.00 1.00 1.00 1.00 1.00 -
Police Telecommunications Manager 1.00 1.00 1.00 1.00 1.00 -
Telecommunications Supervisor 2.00 2.00 2.00 2.00 2.00 -
Public Safety Telecommunicator 10.00 11.00 12.00 12.00 12.00 -
Police Workforce Specialist - 0.48 0.48 0.48 0.48 -
Police Records Manager - - - 1.00 1.00 1.00
Police Records Supervisor 1.00 1.00 1.00 - - (1.00)
Police Records Specialist 5.00 5.00 5.00 5.00 4.00 (1.00)
- - - - 1.00 1.00
Crime Scene Technician Supervisor 1.00 1.00 1.00 1.00 1.00 -
Police Crime Scene Technician 2.00 3.00 3.00 3.00 3.00 -
Administrative Services Manager 1.00 1.00 1.00 1.00 1.00 -
Crime Analyst 1.00 1.00 1.00 1.00 1.00 -
Police Recruitment Specialist - - - 1.00 1.00 1.00
Senior Office Specialist 3.00 3.00 3.00 2.00 2.00 (1.00)
Office Assistant 1.25 1.25 1.25 1.25 1.25 -
Total Police 136.13 134.73 138.73 138.73 139.73 1.00
Full-time employees:137
Part-time employees:3
FY 2023
Accreditation, Audits, and Inspection Coordinator
97 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Personnel Schedule
FY 2021 FY 2022 FY2024 +/-
Actual Actual Budget Projected Budget to Budget
Public Works
Director of Public Works & Town Engineer 1.00 1.00 1.00 1.00 1.00 -
Assistant Director of Public Works 1.00 1.00 1.00 1.00 1.00 -
Engineering Division Manager 1.00 1.00 1.00 1.00 1.00 -
Facility Mantenance Supervisor 1.00 1.00 1.00 1.00 1.00 -
Senior Civil Engineer 1.00 1.00 1.00 1.00 1.00 -
Senior Stormwater Engineer 1.00 1.00 1.00 1.00 1.00 -
Civil Engineer 1.00 1.00 1.00 1.00 1.00 -
CIP Project Manager - 2.00 2.00 2.00 2.00 -
Stormwater Utility Division Manager 1.00 1.00 1.00 1.00 1.00 -
Stormwater Utility Project Manager 1.00 1.00 - - - -
Streets and Drainage Supervisor 1.00 1.00 1.00 1.00 1.00 -
Stormwater Intern - 0.48 0.48 0.48 0.48 -
Transit Administrator - - - 1.00 1.00 1.00
Senior Transit Crew Leader 1.00 1.00 1.00 - - (1.00)
Transit Crew Leader 1.00 1.00 1.00 1.00 1.00 -
Civil Engineering Designer 1.00 1.00 1.00 1.00 1.00 -
Senior Civil Engineering Tech 3.00 3.00 3.00 3.00 3.00 -
Streets/Drainage Superintendent 1.00 1.00 1.00 1.00 1.00 -
Senior Traffic Technician 1.00 1.00 1.00 1.00 1.00 -
Construction Inspector 3.00 - - - - -
Administrative Coordinator 1.00 1.00 1.00 1.00 1.00 -
GIS Analyst - - - 1.00 1.00 1.00
Stormwater Utility Analyst 1.00 1.00 1.00 - - (1.00)
Stormwater Utility Inspector 1.00 1.00 1.00 1.00 1.00 -
Fleet and Facility Division Manager 1.00 1.00 1.00 1.00 1.00 -
Facilities Maintenance Crew Leader - - - - - -
Fleet Maintenance Supervisor 1.00 1.00 1.00 1.00 1.00 -
Fleet Maintenance Mechanic III 1.00 1.00 3.00 3.00 3.00 -
Fleet Control Specialist 1.00 1.00 - - - -
Fleet Attendant - 1.00 1.00 1.00 1.00 -
Traffic Signs/Markings Crew Leader 1.00 1.00 1.00 1.00 1.00 -
Traffic Signs/Markings Worker 1.00 1.00 1.00 1.00 1.00 -
Streets & Drainage Crew Leader 2.00 2.00 2.00 2.00 2.00 -
Traffic Technician 1.00 1.00 1.00 1.00 1.00 -
Facilities Maintenance Technician 3.00 3.00 3.00 3.00 3.00 -
Heavy Equipment Operator II 8.00 8.00 8.00 8.00 8.00 -
Senior Office Specialist 2.00 2.00 2.00 3.00 3.00 1.00
Office Specialist 1.00 1.00 1.00 - - (1.00)
Project Manager - - 1.00 1.00 1.00 -
Transit Supervisor - - - - 1.00 1.00
Transit Specialist 1.11 1.11 1.10 1.10 1.10 -
Transit Dispatcher 2.11 2.11 2.58 2.73 2.73 0.15
Office Assistant 0.96 0.96 0.95 0.95 0.95 -
Transit Driver 19.71 19.71 22.60 23.85 23.85 1.25
Total Public Works 70.89 71.37 75.71 77.11 78.11 2.40
Full-time employees:51
Part-time employees:63
FY 2023
Town of Oro Valley FY 2023/24 Adopted Budget 98
Financial Overview | Personnel Schedule
FY 2021 FY 2022 FY2024 +/-
Actual Actual Budget Projected Budget to Budget
Water Utility
Water Utility Director 1.00 1.00 1.00 1.00 1.00 -
Engineering Division Manager 1.00 1.00 1.00 1.00 1.00 -
Water Utility Administrator 1.00 1.00 1.00 1.00 1.00 -
Water Operations Manager 1.00 1.00 1.00 1.00 1.00 -
Water Distribution Superintendent 1.00 1.00 1.00 - - (1.00)
CIP Project Manager - - 1.00 1.00 1.00 -
Water Operations Superintendent 1.00 1.00 1.00 1.00 1.00 -
Senior Engineering Associate 2.00 2.00 1.00 1.00 1.00 -
Meter Operations Supervisor 1.00 1.00 1.00 - - (1.00)
Water Conservation Specialist 1.00 1.00 1.00 1.00 1.00 -
Water Operations Supervisor 3.00 3.00 3.00 4.00 4.00 1.00
Construction Inspector 2.00 2.00 2.00 2.00 2.00 -
Water Control Systems Supervisor 1.00 1.00 1.00 1.00 1.00 -
Instrumentation Control Specialist 1.00 1.00 1.00 2.00 2.00 1.00
Civil Engineering Tech 1.00 1.00 1.00 1.00 1.00 -
Water Utility Operator III 7.00 7.00 7.00 7.00 7.00 -
Water Utility Operator II 5.00 5.00 5.00 5.00 5.00 -
Senior Office Specialist 1.00 1.00 1.00 1.48 1.48 0.48
Water Utility Analyst 1.00 1.00 1.00 1.00 1.00 -
Water Utility Operator I 4.00 4.00 4.00 4.00 4.00 -
Customer Service Specialist 4.00 4.00 4.00 4.00 4.00 -
Customer Service Representative 0.48 0.48 0.48 - - (0.48)
Total Water Utility 40.48 40.48 40.48 40.48 40.48 -
Full-time employees:40
Part-time employees:1
Total Personnel 398.97 400.07 415.87 417.75 423.71 7.84
Full-time employees:339
Part-time employees:119
FY 2023
99 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Debt Service
Debt Service
The Town of Oro Valley occasionally issues debt to provide funding for the construction of capital projects. The Town has adopted financial policies on debt capacity that set guidelines for issuing debt and provide guidance in the timing and structuring of long-term debt commitments. The general policy of the Town is to fund capital projects with new, dedicated streams of revenue or voter-approved debt. Non voter-approved debt may be utilized when a dedicated revenue source other than general revenue can be identified to pay debt service expenditures. The Town currently uses Excise Tax Revenue Bonds, Water Project Revenue Bonds, Clean Renewable Energy Bonds, and programs offered by the state as funding mechanisms for capital projects.
The chart below represents the percentage each type of bonded debt contributes to the total outstanding debt of the Town as of June 30, 2023. Outstanding Principal = $60,429,632
The following chart depicts total annual principal and interest requirements on the Town’s current outstanding debt.
Excise Tax Revenue
Bonds90%
Senior Lien Water Project Revenue Refunding Obligations6%
Water Infrastructure Finance Authority Loans3%
Clean Renewable Energy Bonds1%
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000 Principal Interest
Annual Debt Service
Town of Oro Valley FY 2023/24 Adopted Budget 100
Financial Overview | Debt Service
Financing Sources Excise Tax Revenue Bonds Excise Tax Revenue Bonds are issued by the Town for the purpose of financing the construction or acquisition of capital
improvement projects. These bonds may be issued without voter approval. The Town of Oro Valley has issued excise tax revenue bonds for the construction and improvement of water facilities, parks and recreation amenities, the
acquisition of land and construction of buildings to support Town services. In 2021, the Town issued pension obligation bonds to pay down an unfunded liability in the public safety pension retirement system (PSPRS). Repayment of the debt
is pledged with excise sales tax, state shared revenue and other permit and fee revenues.
Senior Lien Water Project Revenue Refunding Obligations The Senior Lien Water Project Revenue
Refunding Obligations were issued by the Town in 2012 for the purpose of refunding previously
issued water revenue obligations. This was then again refunded in 2021 to take advantage of favorable market rates. The previously issued obligations financed improvements to the Town’s reclaimed and potable water systems. Water project revenue bonds may be issued without voter approval. Repayment of the debt is pledged with water system revenues.
Bond Rating Standard & Poor’s AA+
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000 Principal Interest
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
2024 2025 2026 2027 2028 2029
Principal Interest
101 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Debt Service
Water Infrastructure Finance Authority Loans (WIFA)
WIFA is a state agency with specific programs that can improve a city or town’s ability to use bonding as a revenue source. WIFA has the ability to assist smaller to medium sized communities in pooling their bond issues to help lower the costs of issuing debt. They also have monies set aside to help secure the debt and allow the bonds to be issued at the lowest interest rate possible. WIFA’s charge is specifically with water and wastewater projects. In 2007, the Town received a $4.6 million WIFA loan for infrastructure expansion of the reclaimed water system in the Town. In 2009, the Town received a $2.3 million WIFA loan to
finance existing water system infrastructure improvements. The 2007 and 2009 WIFA loans were refunded with the issuance of the 2021 Senior Lien Water Refunding Series. In 2014, the Town received a $4.7 million WIFA to finance meter replacements. Clean Renewable Energy Bonds (CREBs) In 2010, the Town issued Clean Renewable
Energy Bonds in the amount of $2.4 million to finance the construction of solar panel covered parking structures in the parking lot of Town hall. The bonds are secured by the Town’s excise tax
revenues. The debt service is paid through a combination of energy savings, electricity
rebates from Tucson Electric Power Company, and a 55% interest subsidy from the U.S.
Treasury Department.
Debt Limit The Arizona Constitution limits the Town’s bonded debt capacity (outstanding principal) to a certain percentage of the Town’s secondary assessed valuation for General Obligation (G.O.) bonds. The Constitution states that for general municipal purposes, the Town cannot incur a debt exceeding 6% of the assessed valuation of taxable property. Additional bonds amounting to 20% of the assessed valuation of taxable property can be issued for water, lighting and sewer projects, and for the acquisition and development of land for open space preserves, parks, playgrounds and recreational facilities. The Town’s current bond holdings do not include G.O. bonds and, therefore, are not subject to the debt limitation.
$-
$100,000
$200,000
$300,000
$400,000
$500,000
2024 2025 2026 2027 2028
Principal Interest
$-
$50,000
$100,000
$150,000
$200,000
$250,000
2024 2025 2026 2027 2028
Principal Interest
Town of Oro Valley FY 2023/24 Adopted Budget 102
Financial Overview | Debt Service
Impact of Debt Levels on Government Operations
The issuance of debt commits the Town to a significant, long-term recurring cost; therefore, each new debt issuance must be heavily scrutinized to ensure the Town’s ability to repay the debt. Debt service payments are contractual
obligations that take legal precedence over most other Town expenditures. Heavy debt levels may consume a significant portion of an entity’s ongoing revenues and could impact an entity’s ability to provide services to citizens and residents,
especially during economic downturns and revenue declines. When feasible, the Town may utilize cash reserves to fund a project, versus the issuance of debt. The Town’s financial policies on debt issuance and management also emphasize
minimal borrowing costs and affordability of future debt service obligations. Summary The below information summarizes the total outstanding principal and interest on current Town debt obligations for the next twenty years. A measure of a community’s financial soundness is its bond rating. The Town continues to maintain very strong coverage of debt service which contributes to the favorable bond ratings received from Standard & Poor’s and Fitch Investors Service.
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000 CREBs
WIFA Loans
Water Project Revenue Bonds
Excise Tax Revenue Bonds
FY
Excise Tax
Revenue Bonds
Water Project
Revenue Bonds WIFA Loans CREBs Total
2024 6,138,094 805,194 380,846 195,721 7,519,855
2025 6,133,937 808,378 380,846 191,318 7,514,479
2026 6,130,017 810,423 380,846 186,370 7,507,655
2027 5,674,051 804,729 380,846 176,066 7,035,693
2028 3,885,912 498,734 380,846 170,437 4,935,929
2029 3,664,990 119,499 3,784,489
2030 3,657,261 3,657,261
2031 3,656,839 3,656,839
2032 3,656,891 3,656,891
2033 3,486,258 3,486,258
2034 3,489,206 3,489,206
2035 2,799,668 2,799,668
2036 2,795,896 2,795,896
2037 2,798,399 2,798,399
2038 2,796,957 2,796,957
2039 2,791,821 2,791,821
2040 1,535,600 1,535,600
2041 1,533,900 1,533,900
2042 1,530,000 1,530,000
68,155,698 3,846,956 1,904,232 919,910 74,826,796
103 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Debt Service Schedules
Debt Service Schedules
$2,445,000 Clean Renewable Energy Bonds – Direct Payment Date: July 22, 2010 Interest: Payable semiannually commencing on January 1, 2011, and semiannually thereafter on July 1 and January 1 of each year. Purpose: The bonds were issued to finance the construction of solar panel covered parking structures in the parking lot of Town Hall.
Security: Excise Taxes Debt Service: Fiscal Year Principal * Interest * Total 2024 150,000 45,721 195,721 2025 155,000 36,318 191,318 2026 160,000 26,370 186,370 2027 160,000 16,066 176,066 2028 165,000 5,437 170,437
Total $790,000 $129,910 $919,910
*Debt Service is subsidized by electricity rebates from Tucson Electric Power Co. and an interest subsidy from the U.S. Treasury
Department
$2,580,000 Excise Tax Revenue Obligations, Series 2012
Date: April 5, 2012
Interest: Payable semiannually commencing on January 1, 2013, and semiannually thereafter on July 1 and January 1 of each year.
Purpose: The bonds were issued to finance the construction of enhancements and upgrades to the Town’s
Aquatic Center. Security: Excise Taxes
Debt Service: Fiscal Year Principal Interest Total 2024 190,000 34,019 224,019 2025 200,000 26,719 226,719 2026 205,000 19,631 224,631 2027 215,000 12,147 227,147 2028 220,000 4,125 224,125 Total $1,030,000 $96,641 $1,126,641
Town of Oro Valley FY 2023/24 Adopted Budget 104
Financial Overview | Debt Service Schedules
$5,000,000 Water Infrastructure Finance Authority Loan Date: January 22, 2014 Interest: Payable semiannually commencing on July 1, 2014, and semiannually thereafter on January 1 and July 1 of each year. Purpose: This loan was secured to finance the replacement of aging water meters with new technology electronic water meters. Security: Water Revenues
Debt Service: Fiscal Year Principal Interest Total 2024 334,128 46,718 380,846 2025 342,989 37,857 380,846 2026 352,085 28,761 380,846 2027 361,422 19,424 380,846 2028 371,007 9,839 380,846 Total $1,761,632 $142,600 $1,904,232
$3,775,000 Excise Tax Revenue Refunding Obligations, Series 2015 Date: November 2, 2015
Interest: Payable semiannually commencing on January 1, 2016, and semiannually thereafter on July 1 and January 1 of each year.
Purpose: The bonds were issued to refund previously issued excise tax revenue bonds. The previously issued obligations provided funding for the land acquisition, development costs and construction of a Municipal
Operations Center. Security: Excise Taxes
Debt Service: Fiscal Year Principal Interest Total 2024 437,000 21,249 458,249 2025 444,000 12,835 456,835 2026 450,000 4,298 454,298
Total $1,331,000 $38,381 $1,369,381
105 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Debt Service Schedules
$2,000,000 Excise Tax Revenue Obligations, Series 2016 Date: December 15, 2016 Interest: Payable semiannually commencing on July 1, 2017, and thereafter on July 1 and January 1 of each year. Purpose: The bonds were issued to finance energy efficiency improvements at the Town’s Community Center. Security: Excise Taxes
Debt Service: Fiscal Year Principal Interest Total
2024 143,000 29,403 172,403 2025 146,000 26,224 172,224
2026 150,000 22,968 172,968 2027 153,000 19,635 172,635
2028 156,000 16,236 172,236 2029-2032 660,000 29,414 689,414
Total $1,408,000 $143,880 $1,551,880
$14,302,000 Excise Tax Revenue Refunding Obligations, Series 2017
Date: April 6, 2017 Interest: Payable semiannually commencing on January 1, 2018, and thereafter on July 1 and January 1 of each year.
Purpose: The bonds were issued to refund previously issued excise tax revenue refunding bonds. The previously issued obligations provided funding to refinance certain outstanding excise tax secured obligations. Security: Excise Taxes
Debt Service: Fiscal Year Principal Interest Total
2024 1,634,000 144,828 1,778,828 2025 1,673,000 104,648 1,777,648 2026 1,714,000 63,496 1,777,496 2027 1,756,000 21,335 1,777,335
Total $6,777,000 $334,307 $7,111,307
Town of Oro Valley FY 2023/24 Adopted Budget 106
Financial Overview | Debt Service Schedules
$8,140,000 Excise Tax Revenue Obligations, Series 2018 Date: October 23, 2018 Interest: Payable semiannually commencing on July 1, 2019, and thereafter on January 1 and July 1 of each year. Purpose: The bonds were issued to finance Oro Valley Water Utility infrastructure improvements and the Town’s new police evidence and substation facility. Security: Excise Taxes Debt Service:
Fiscal Year Principal Interest Total 2024 500,000 186,213 686,213
2025 516,000 170,872 686,872 2026 531,000 155,062 686,062
2027 547,000 138,784 685,784 2028 564,000 122,008 686,008
2029-2032 2,430,000 309,912 2,739,912 2033-2034 1,328,000 40,408 1,368,408
Total $6,416,000 $1,123,259 $7,539,259
$5,582,000 Senior Lien Water Project Revenue Refunding Obligations, Series 2021 Date: January 20, 2021 Interest: Payable semiannually commencing on July 1, 2021, and thereafter on January 1 and July 1 of each year. Purpose: The bonds were issued to refund previously issued bonds and loans. The previously issued obligations financed improvements to the Town’s reclaimed and potable water systems. Security: Water Revenues Debt Service: Fiscal Year Principal Interest Total 2024 760,000 45,194 805,194 2025 772,000 36,378 808,378 2026 783,000 27,423 810,423
2027 787,000 17,729 804,729 2028 491,000 7,734 498,734 2029 118,000 1,499 119,499 Total $3,711,000 $135,956 $3,846,956
107 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Debt Service Schedules
$17,975,000 Excise Tax Revenue Obligations, Series 2021 Date: July 6, 2021 Interest: Payable semiannually commencing on January 1, 2022, and thereafter on January 1 and July 1 of each year. Purpose: The bonds were issued to fund a portion of the Town’s legacy obligations to the Public Safety Personnel Retirement System (PSPRS). At the same time, the Town used $10 million of General Fund reserves to reduce the PSPRS obligations. The combined contribution of the Town and the bond proceeds are to fully fund PSPRS. Security: Excise Taxes Debt Service:
Fiscal Year Principal Interest Total 2024 960,000 315,582 1,273,582
2025 960,000 308,715 1,268,715 2026 970,000 301,262 1,271,262
2027 975,000 291,350 1,266,350 2028 985,000 279,118 1,264,118
2029-2033 5,180,000 1,135,532 6,315,532 2034-2038 5,765,000 538,850 6,303,850 2039 1,240,000 16,721 1,256,721 Total $17,035,000 $3,185,130 $20,220,130
$21,120,000 Excise Tax Revenue Obligations, Series 2021 Date: November 4, 2021 Interest: Payable semiannually commencing on July 1, 2022, and thereafter on January 1 and July 1 of each year. Purpose: The bonds were issued to finance various park projects, including Community Center Property improvements, amenities to Naranja Park and multiuse path connections throughout the Town’s park system. Security: Excise Taxes
Debt Service: Fiscal Year Principal Interest Total
2024 680,000 864,800 1,544,800 2025 715,000 829,925 1,544,925 2026 750,000 793,300 1,543,300 2027 790,000 754,800 1,544,800 2028 825,000 714,425 1,539,425 2029-2033 4,795,000 2,898,150 7,693,150
2034-2038 5,945,000 1,747,100 7,692,100 2039-2042 5,670,000 464,600 6,134,600
Total $20,170,000 $9,067,100 $29,237,100
Town of Oro Valley FY 2023/24 Adopted Budget 108
Financial Overview | Five Year Forecast
Five Year Forecast
The Town's adopted financial policies provide as a part of the annual Town budget preparation cycle, the Finance Department shall prepare a minimum five-year financial forecast of projected revenues and expenditures to measure the financial sustainability of the Town's operations and service levels. The forecast serves as the basis to test the potential impacts of proposed policy, operational modifications, and pending legislative changes all intended to avoid significant or irregular fluctuations in rates/fees and service levels. Please note the FY 23/24 budget numbers in the five-year forecast are as they were presented in the tentative
budget stage before final adoption and may not agree to the final adopted budget numbers elsewhere in this document. This type of long-term planning involves aligning our General and Strategic Plans to our long-term forecast, which in turn, drives our budget. The five-year financial forecast provides the Town Council, Town management, and residents with a long-term financial perspective of revenues, expenditures, cash transfers in/out, fund balances and capital financing options.
The base forecast is developed using the current services offered by the Town. Assumptions relating to inflation and growth rates are used to predict expenditure levels. Revenues are projected by trend or by specific information, when available. This information is used in conjunction with the impact of new commercial and residential development, future construction projects and economic conditions to develop a long-term forecast.
Finance staff works in tandem with the Community and Economic Development Department when compiling projections for long range planning to ensure compatibility among all planning processes. When compiling the long-range forecast,
the focus is on four of the Town’s major funds: the General Fund, Highway Fund, Capital Fund, and Community Center Fund.
Proactive management of the budget to actual expenditures allows staff the opportunity to promptly notify the Town Council of potential budget concerns. Staff monitor the budget monthly and adjust the estimated annual revenues and expenditures based on the latest trends and economic information. Budget to actual amounts are reported to the Town
Council monthly and the CIP budget status is reported quarterly. Staff monitor and identify changes in the financial and economic climates and considers solutions to negative trends.
Economic and Financial Environment Oro Valley relies primarily on local sales tax and state shared revenues to fund ongoing operations. Costs that come along with growth, such as road maintenance and water infrastructure, are offset by residential and commercial development through construction sales tax, permit fees, and impact fees. The Town follows closely the trend of single-family residential permits issued as an indicator for development. With a recent surge in homebuilding across the region and much of the country, the Town issued 498 SFR permits in fiscal year 20/21, the most in nearly two decades. The following graph depicts historical SFR permit totals, as well as projected totals through FY 28/29.
Community Feedback (Surveys , Citizen Based Commitees, Meetings)
Monitor and Adjust(Monthly financial reports, financial analysis)
General PlanStrategic Plan
Resource Allocation(Budget & CIP)
Business Plan (Long-term Forecast)
109 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Five Year Forecast
Development and growth-related revenues such as these, as well as sales taxes and state shared revenues, are
economically volatile and may experience steep declines during economic downturns, as was the case with the last economic recession. The Town does not levy a
property tax and is therefore vulnerable to shifts in economic conditions. Furthermore, changes in
state legislation can impact local tax collection and state shared revenues.
The Town’s population growth has slowed considerably from its historical trend and since the last economic recession and is projected to increase gradually over the next five years due in part to the limited amount of developable land within the incorporated boundaries of the town. Impacts of Future Capital Needs
In additional to personnel costs, the Capital Improvement Program makes up a significant portion of the Town’s expenditure forecast, for both the one-time cost of the capital and the continued operational impacts of the new facilities or equipment. New or expanded parks and police facilities, for example, may require additional personnel and increased operations & maintenance (O&M) costs. Capital projects will continue to demand much of the Town’s resources. Costs
to support these projects, as well as any identified recurring costs, have been incorporated in the long-term forecast. Budget Impact The Town’s General and Strategic Plans, its financial policies and the long term forecast all have dramatic impact on the budget. The development of the budget is a process of resource allocation, and the resources available to be allocated are a direct output of the long term forecast. The long term forecast influences the Town’s decision-making by projecting the effect that current spending decisions will have on the future and whether resources will be available to fund them. Financial policies, such as fund balance reserve policies, can have a visible impact on the budget, particularly during economic downturns and revenue declines, when resources become strained. Fund Forecasts General Fund The General Fund forecast demonstrates modest and reasonable growth in revenues over the next five years and is balanced with expenditure levels that sustain current levels of programs and services, continued capital investments, and continue the commitment to reasonable employee compensation and benefits. The forecast for the General Fund assumes continued, conservative growth with no major economic downturns. The forecast models local sales tax growth using several datapoints. Figures are provided by JLBC, the University of Arizona, and the Arizona Department of Revenue. These are then combined with the Town’s analysis and trend data to form the baseline forecast.
120 65 47 56
217
124 143
220
338 325 296 275
498
198
119 119 138 197 210
133 84
0
100
200
300
400
500
600
Permits IssuedSingle Family Residential Permits
Actual Budget Forecast
6,670
29,700
41,011 47,070 51,758
-
10,000
20,000
30,000
40,000
50,000
60,000
1990 2000 2010 2020 2030Projected
Oro Valley Population
Town of Oro Valley FY 2023/24 Adopted Budget 110
Financial Overview | Five Year Forecast
The General Fund forecast demonstrates modest and reasonable growth in revenues over the next five years and is balanced with expenditure levels that sustain current levels of programs and services, continued capital investments,
and continued commitment to reasonable employee compensation and benefits.
The forecast assumes conservative growth with no major economic downturns. The forecast models local sales tax growth using several data points. Figures are provided by JLBC, the University of Arizona, and the Arizona Department
of Transportation. These are then combined with the Town’s analysis and trend data to form the baseline forecast.
Continued growth of 3-5% in most local sales tax categories is anticipated. Increases in construction sales tax are forecasted in FY 23/24 and FY 24/25 given the assumption of increased commercial construction in the near term, then
decline slightly in outer years due to reduced available land area for new development. State shared revenues will see a sharp increase in FY 23/24 due to a change in the revenue allocation from 15% to 18%. Beginning FY 24/25, statutory
income tax rate reductions and a cap of 2.5% will reduce the revenue 10.8%, and another 7.1% in FY 25/26. URS growth then is expected to stabilize to about 2% growth per year. The forecast assumes flat residential development
continues through FY 26/27, with a steep decline thereafter. Single family residential permits are forecasted to fall below 100 per year by FY 28/29.
Forecasted personnel expenditures in the General Fund reflect merit and step increases for employees, as well as
historical increases for insurance coverage and other employee-related costs. The General Fund forecast also includes modest capacity for new positions. The forecast assumes the Town will continue to make elevated PSPRS contributions
through FY24/25, with a reduction expected thereafter due to funded status.
The forecast assumes operations and maintenance (O&M) costs increase 2% per year. No changes to service levels are assumed. Annual transfers to the Capital Fund for CIP projects are assumed at 5% of sales tax collections plus any
remaining fund balance over the 30% reserve policy. The ending fund balance in the General Fund is maintained at the Town’s adopted policy requirement of 30% of expenditures each year, ranging from approximately $15.0 - $16.9 million.
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
$50,000,000
$55,000,000
$60,000,000
$65,000,000
$70,000,000
FY 22/23
Estimated
FY 23/24
Tentative
FY 24/25
Projected
FY 25/26
Projected
FY 26/27
Projected
FY 27/28
Projected
FY 28/29
Projected
General Fund
Sources, Uses and Fund Balance
USES
SOURCES
FUND BALANCE
RESERVE (30%)
111 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Five Year Forecast
Town of Oro Valley
Five-Year Forecast
FY 22/23
Estimated
FY 23/24
Tentative
FY 24/25
Projected
FY 25/26
Projected
FY 26/27
Projected
FY 27/28
Projected
FY 28/29
Projected
SOURCES
Taxes 27,031,462$ 26,398,318$ 28,024,560$ 28,758,293$ 31,096,860$ 30,747,462$ 31,672,268$
State Shared Revenue 18,405,604 22,953,222 22,052,464 21,821,068 22,548,044 23,303,237 24,071,732
Charges for Services 2,877,610 3,218,646 3,338,208 3,423,802 3,517,977 3,613,226 3,684,639
Licenses & Permits 2,636,961 1,717,118 1,827,011 2,357,215 2,601,111 1,982,150 1,756,252
Intergovernmental 1,600,500 1,869,500 1,887,295 1,905,268 1,923,421 1,941,755 1,960,272
Grants 659,000 657,415 663,989 670,629 677,335 684,109 690,950
Miscellaneous 611,900 263,000 273,520 284,461 295,839 307,673 319,980
Fines 85,000 125,000 126,250 127,513 128,788 130,076 131,376
Interest Income 300,000 300,000 255,690 263,730 271,439 279,805 287,939
Total Sources 54,208,037 57,502,219 58,448,987 59,611,979 63,060,815 62,989,491 64,575,408
GENERAL FUND
USES
Personnel 33,379,955 35,652,260 36,159,451 37,322,888 38,617,334 39,879,057 41,237,279
O&M 11,549,240 13,386,754 13,452,376 13,855,121 14,061,752 14,429,593 14,655,352
Capital Outlay 848,382 1,360,600 537,030 547,771 558,726 569,901 581,299
Transfers Out 15,996,977 12,274,644 10,907,325 7,413,122 9,369,393 7,618,719 7,622,865
Total Uses 61,774,554 62,674,258 61,056,182 59,138,901 62,607,205 62,497,269 64,096,794
Surplus/(Use of Fund Balance)(7,566,517) (5,172,040) (2,607,195) 473,077 453,610 492,222 478,614
Beginning Fund Balance 30,390,423 22,823,906 17,651,867 15,044,672 15,517,749 15,971,360 16,463,582
Ending Fund Balance 22,823,906$ 17,651,867$ 15,044,672$ 15,517,749$ 15,971,360$ 16,463,582$ 16,942,196$
Reserve as % of Expenditures 49.9%35.0%30.0%30.0%30.0%30.0%30.0%
Town of Oro Valley FY 2023/24 Adopted Budget 112
Financial Overview | Five Year Forecast
Highway Fund
Highway Fund revenues are composed primarily of State-shared highway user (gas tax) revenues. The State-shared highway user revenue projections are provided by the Arizona Department of Transportation and are projected to grow
5% in FY 24/25, with growth slowing to about 3.5% per year thereafter.
Highway Fund expenditures reflect similar assumptions to those included in the General Fund forecast for personnel and O&M costs. Funding for the pavement preservation program is included in the forecast at $2.5-$2.8 million each
year. To fund needed roadway CIP projects, the forecast assumes annual transfers of $4 million from the Capital Fund in FYs 24/25 through 26/27.
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
FY 22/23
Estimated
FY 23/24
Tentative
FY 24/25
Projected
FY 25/26
Projected
FY 26/27
Projected
FY 27/28
Projected
FY 28/29
Projected
Highway Fund
Sources, Uses and Fund Balance
USES
SOURCES
FUND BALANCE
113 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Five Year Forecast
Town of Oro Valley
Five-Year Forecast
FY 22/23
Estimated
FY 23/24
Tentative
FY 24/25
Projected
FY 25/26
Projected
FY 26/27
Projected
FY 27/28
Projected
FY 28/29
Projected
SOURCES
State Shared Revenue 4,127,100$ 4,334,608$ 4,489,198$ 4,646,394$ 4,804,458$ 4,972,076$ 5,140,562$
Licenses & Permits 26,500 25,000 25,025 25,526 25,781 26,039 26,299
Interest Income 110,000 70,000 280,000 255,077 361,457 314,754 277,131
Miscellaneous 7,825 3,000 3,120 3,245 3,375 3,510 3,650
Transfers from Capital Fund - 1,500,000 4,000,000 4,000,000 4,000,000 - -
Total Sources 4,271,425 5,932,608 8,797,343 8,930,241 9,195,071 5,316,378 5,447,642
HIGHWAY FUND
USES
Personnel 1,196,095 1,262,861 1,382,643 1,403,978 1,432,041 1,460,744 1,490,102
O&M 766,518 1,003,930 983,979 1,003,628 1,023,671 1,044,114 1,064,966
Capital Outlay 2,641,398 4,202,000 4,995,500 6,462,063 5,852,542 2,819,532 2,888,521
Total Uses 4,604,011 6,468,791 7,362,121 8,869,669 8,308,254 5,324,390 5,443,588
Surplus/(Use of Fund Balance)(332,586) (536,183) 1,435,222 60,572 886,817 (8,012) 4,054
Beginning Fund Balance 1,206,985 874,399 338,216 1,773,438 1,834,010 2,720,828 2,712,816
Ending Fund Balance 874,399$ 338,216$ 1,773,438$ 1,834,010$ 2,720,828$ 2,712,816$ 2,716,869$
Town of Oro Valley FY 2023/24 Adopted Budget 114
Financial Overview | Five Year Forecast
Capital Fund
The Capital Fund is primarily supported by transfers from the General Fund, with supplemental sources from annual vehicle reserves, CIP-related bond proceeds, and grant-funded CIP projects.
Capital Fund expenditures consist primarily of the Town’s projected CIP projects, as well as personnel costs for two
temporary CIP managers. The forecast excludes the cost of a new police station, as a revenue source has not yet been identified. Vehicle replacement costs are projected to grow 10% annually due to inflation.
As noted above, to fund needed roadway CIP projects, the forecast assumes annual transfers of $4 million from the
Capital Fund into the Highway Fund in FYs 24/25 through FY 26/27.
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
FY 22/23
Estimated
FY 23/24
Tentative
FY 24/25
Projected
FY 25/26
Projected
FY 26/27
Projected
FY 27/28
Projected
FY 28/29
Projected
Capital Fund
Sources, Uses and Fund Balance
USES
SOURCES
FUND BALANCE
115 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Five Year Forecast
Town of Oro Valley
Five-Year Forecast
FY 22/23
Estimated
FY 23/24
Tentative
FY 24/25
Projected
FY 25/26
Projected
FY 26/27
Projected
FY 27/28
Projected
FY 28/29
Projected
SOURCES
State Grants -$ 620,000$ -$ -$ -$ -$ -$
Interest Income 350,000 100,000 99,159 67,053 59,657 57,079 68,903
Miscellaneous 140,000 115,000 115,000 115,000 115,000 115,000 115,000
Vehicle Reserves 820,010 892,540 993,594 1,109,885 1,238,145 1,379,575 1,535,501
Transfers from General Fund 13,500,000 10,000,000 8,619,145 5,121,939 7,385,484 5,774,234 6,063,153
Transfer from Community Center Fund 4,079,275 - - - - - -
Total Sources 18,889,285 11,727,540 9,826,899 6,413,877 8,798,285 7,325,888 7,782,558
CAPITAL FUND
USES
Personnel 236,528 254,765 157,755 158,790 - - -
O&M 4,162 - - - - - -
Capital Outlay 19,033,018 23,131,471 5,951,102 6,190,937 6,212,477 8,237,652 7,420,852
Transfers to Highway Fund - 1,500,000 4,000,000 4,000,000 4,000,000 - -
Total Uses 19,273,708 24,886,236 10,108,857 10,349,727 10,212,477 8,237,652 7,420,852
Surplus/(Use of Fund Balance)(386,623) (13,158,696) (281,959) (3,935,849) (1,414,191) (911,765) 361,706
Beginning Fund Balance 23,952,930 23,566,307 10,407,611 10,125,652 6,189,803 4,775,612 3,863,847
Ending Fund Balance 23,566,307$ 10,407,611$ 10,125,652$ 6,189,803$ 4,775,612$ 3,863,847$ 4,225,553$
Town of Oro Valley FY 2023/24 Adopted Budget 116
Financial Overview | Five Year Forecast
Community Center Fund
Community Center Fund revenue consists of local sales tax, contracted golf revenues, HOA golf contributions through FY 24/25, Parks and Rec program revenue, and fitness memberships. Local sales tax estimates follow the same growth
projections as the General Fund for relevant categories. Contracted golf revenues are modestly increased in FY 23/24 and with a healthy bump in FY 24/25 due to course closures for irrigation construction. The remaining recreation charges
are conservatively forecasted to grow 1% annually, accounting for the potential impact high inflation may have on discretionary spending.
Forecasted Town personnel and O&M figures reflect similar assumptions to the General Fund. Contracted expenditures
related to golf operations, including the Pusch 9-hole course, assume annual cost increases of about 5% in FY 23/24 and FY23/24 and 1-2% annually thereafter. Upon completion of irrigation construction, it is assumed that contractor
operations, play levels and revenues are consistent with FY 20/21 and FY 21/22.
Capital outlay in the Community Center Fund reflects the 10-year CIP, with additional costs of $150,000 assumed annually for other operating capital needs and maintenance.
Transfers out reflects debt service on the Parks and Recreation bonds and the 2016 Community Center energy efficiency
bonds.
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
FY 22/23
Estimated
FY 23/24
Tentative
FY 24/25
Projected
FY 25/26
Projected
FY 26/27
Projected
FY 27/28
Projected
FY 28/29
Projected
Community Center Fund
Sources, Uses and Fund Balance
USES
SOURCES
FUND BALANCE
117 Town of Oro Valley FY 2023/24 Adopted Budget
Financial Overview | Five Year Forecast
Town of Oro Valley
Five-Year Forecast
FY 22/23
Estimated
FY 23/24
Tentative
FY 24/25
Projected
FY 25/26
Projected
FY 26/27
Projected
FY 27/28
Projected
FY 28/29
Projected
SOURCES
Taxes 3,714,218$ 3,726,016$ 3,843,990$ 3,966,910$ 4,116,585$ 4,272,252$ 4,405,631$
Charges for Services 5,775,940 5,785,386 6,289,749 6,575,824 6,885,460 7,205,521 7,379,261
Interest Income 35,000 35,000 35,951 51,527 84,941 192,897 192,897
Miscellaneous 173,343 162,050 168,532 16,273 16,924 17,601 17,601
Total Sources 9,698,501 9,708,452 10,338,221 10,610,534 11,103,909 11,688,271 11,995,391
COMMUNITY CENTER FUND
USES
Personnel 1,017,000 1,114,639 1,203,022 1,241,000 1,280,116 1,320,880 1,363,032
O&M 5,391,991 5,294,659 5,527,141 5,633,589 5,723,318 5,806,780 5,891,734
Capital Outlay 1,853,347 1,820,500 1,426,300 1,729,000 1,735,000 1,700,000 250,000
Debt Service 191,480 210,684 214,898 219,196 223,580 228,051 232,612
Transfers Out 6,105,141 1,717,203 1,717,328 1,715,524 1,717,768 1,712,060 1,714,286
Total Uses 14,558,959 10,157,685 10,088,689 10,538,308 10,679,782 10,767,771 9,451,664
Surplus/(Use of Fund Balance)(4,860,458) (449,233) 249,532 72,226 424,127 920,501 2,543,727
Beginning Fund Balance 5,860,458 1,000,000 550,767 800,300 872,526 1,296,653 2,217,154
Ending Fund Balance 1,000,000$ 550,767$ 800,300$ 872,526$ 1,296,653$ 2,217,154$ 4,760,881$
Town of Oro Valley FY 2023/24 Adopted Budget 118
TOWN OF ORO VALLEY ANNUAL BUDGET FY 2020-2021
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119 Town of Oro Valley FY 2023/24 Adopted Budget
DEPARTMENT BUDGETS
Clerk
Community and Economic Development
Council
Town Court
Finance
General Administration
Human Resources
Innovation & Technology
Legal
Town Manager’s Office
Parks and Recreation
Police
Public Works
Water Utility
Town of Oro Valley FY 2023/24 Adopted Budget 120
Department Budgets | Clerk
CLERK
Overview
The Clerk's Office is the centralized information distribution point for our citizens, Town Council and staff. Responsibilities include preserving the legislative history of the Town, maintaining public records of the Town and conducting fair and impartial elections. The Clerk's Office provides staff support to Town Council; public
records and information; liquor licensing; records management; elections; voter registration; and notary services. Functions of the Clerk's Office are performed in accordance with Arizona Revised Statutes, Oro Valley Town Code and the administrative policies and objectives of the Town.
2022/23 Accomplishments
•Analyzed and implemented a process to track and ensure timely review and/or renewal of contracts.
•Added 15,738 documents consisting of 293,750 pages to the Town’s electronic document database.
•Conducted the August 2, 2022 Primary Election with a voter turnout of 51.12%.
•Received and processed 389 public record requests, resulting in a total of 425 staff hours to process.
•Reviewed and implemented system updates to the Town’s electronic document management system thatenhanced the document search functionality and user experience.
Council Focus Area(s)
•Effective & Efficient Government
2023/24 Objectives
•Analyze the current contract management and tracking process to identify possible improvements andimplement any identified efficiencies or improvements by 6/30/24.
•Implement a solution to track and report future agenda items for Town Council and board/commissionmeetings.
•Assess space needs for the inactive records room and develop a plan, in consultation with IT and Public
Works, to minimize the storage room footprint to allow for additional office space.
Performance Measures
FY 2022 Actual FY 2023 Target FY 2023 Result FY 2023 Status FY 2024 Target
Post all public meeting agendas and notice of quorums at least 24 hours prior to meeting/event start time 100% 100% 100% 100%
Resolve 95% of customer service inquiries within the first contact N/A N/A N/A 95%
Percentage of public record requests initiated within 24 business hours of receipt 100% 100% 100% 100%
Target Met Target Not Met Informational Only N/A – New/Previous Measure
121 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Clerk
Significant Changes
• The increase of 0.23 FTE is due to increased hours for an office assistant position.
• Personnel costs increased due to rate adjustments resulting from a class and compensation study performed in
FY 2023.
• The decrease in O&M is due to costs related to primary and general elections held in the prior year.
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Town Clerk 1.00 1.00 1.00 -
Deputy Town Clerk 1.00 1.00 1.00 -
Senior Office Specialist 1.00 1.00 1.00 -
Office Assistant 1.48 0.73 0.96 0.23
Communications Intern 0.25 - - -
Total FTEs 4.73 3.73 3.96 0.23
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Personnel 357,669 327,105 394,847 67,742
Operations & Maintenance 17,745 95,600 25,050 (70,550)
Total Expenditures 375,414 422,705 419,897 (2,808)
FY 2022 FY 2023 FY 2024
Revenue Sources Actual Budget Budget Change
Business Licenses & Permits 211,085 202,500 205,000 2,500
Public Record Request Fees 1,412 1,500 1,400 (100)
Total Revenues 212,497 204,000 206,400 2,400
Town of Oro Valley FY 2023/24 Adopted Budget 122
Department Budgets | Community & Economic Development (CED)
COMMUNITY & ECONOMIC DEVELOPMENT (CED)
Overview
The Community and Economic Development (CED) Department supports and welcomes new and expanded
business and residential development in the Town of Oro Valley. The department provides excellent customer service in coordinating all facets of economic development, planning, permitting, and inspection and compliance related to horizontal and vertical construction within the community. The team is dedicated to
ensuring that development proceeds in a safe and efficient manner that meets today’s business needs. The department encourages the use of best practices in both community and economic development, including planning for growth and development that supports a sustainable economy, diverse employment and housing
opportunities, and expanded education and cultural experiences for local residents. 2022/23 Accomplishments
ADMINISTRATION
• Completed the conversion of the department’s planning, permitting, inspections, and code compliance software to SmartGov.
• Integrated Golder Ranch Fire District personnel into SmartGov software for inspections and plan review.
• Completed the transition of business licensing from the Town Clerk’s Office to CED.
• Transitioned business licensing software to SmartGov and conducted the renewal process via the new
software.
• Implemented a short-term rental licensing program.
PERMITTING
• As of March 30, 2023: Issued 1,935 permits, including 89 single family residential permits, 23 grading
permits, 39 commercial building permits, 556 photovoltaic permits and126 pool permits.
• Collected nearly $2.4 million in plan review and permit fees representing more than $196 million in work
valuation for new private construction.
• Initiated the pilot phase of the SolarAPP+ application process, an online tool developed by the National Renewable Energy Laboratory that automates project approvals for standard rooftop solar systems.
• Streamlined the process for various permit types to make them automated, self-issue permits, creating time savings for both customers and Town staff.
• Made continuous improvements to the permitting section of the Town’s website to provide more information for customers and to make information easier to find.
CED Director
ADMINISTRATION PERMITTING PLANNING INSPECTION AND COMPLIANCE ECONOMIC DEVELOPMENT
123 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Community & Economic Development (CED)
PLANNING
• Facilitated 15 neighborhood meetings and reviewed 30 pre-application proposals and 100 new formal
applications.
• Processed all aspects of Oro Valley Marketplace zoning amendments and design changes.
• Completed zoning code amendments for development review and multi-family residential standards.
• Compiled recreation code amendment research and completed study sessions with the Planning & Zoning
Commission, Parks & Recreation Advisory Board and Town Council.
• Provided a fall version of Community Academy, including an online option that increased attendance and
graduation rates.
• Improved neighborhood meetings by incorporating software to immediately post participant comments
onscreen.
• Hired a consultant and commenced work on the housing study with target completion of fall 2023.
• Finalized the community engagement plan for the upcoming 2026 General Plan and compiled project
budget.
• Comprehensively evaluated Your Voice, Our Future general plan action item implementation and updated
the Planning work plan accordingly.
• Implemented OVprojects.com website for customer improvements.
• Instituted internal process efficiency improvements regarding communication facilities, sign code
enforcement case review, and conversion of case records from paper to electronic form.
• Accomplished American Institute of Certified Planner credentials for all staff planners.
INSPECTION & COMPLIANCE
• Performed 22,531 inspections at approximately 7,137 site visits.
• High-profile inspection projects included La Posada at Pusch Ridge, a 350,000 sq. ft. five-story multi-
building adult active living facility; continuance of Roche Tissue Diagnostics renovations and expansion;
Community Center renovations and expansion of pickleball courts; continued improvements at Oro Valley
Aquatic Center and historic Steam Pump Ranch; renovation and expansions at Pusch Ridge Christian
Academy, Splendido, Vistoso Community Center and many other businesses.
• Through July 2023, Inspection & Compliance issued 63 Certificates of Occupancy for new commercial
business and ownership changes.
• Development and roll out of customer experience survey for inspection processes with anticipated
feedback and improvement opportunities throughout the upcoming fiscal year.
• Continued collaboration with Code Compliance to provide industry expertise and assistance for cases
involving structural and life safety compliance.
ECONOMIC DEVELOPMENT
• Implemented the startup business curriculum.
• Enhanced business retention and expansion efforts with annual survey to determine business needs, continued direct visits with businesses and additional small business support programming.
• Partnered with the Oro Valley Chamber to host the second annual business summit with 150 participants.
• Forged Town agreements for the new fiscal year with Visit Tucson, Children’s Museum, the Greater Oro
Valley Chamber of Commerce, and SAACA.
• Developed partnerships with Tucson Audubon and Tohono Chul Park for the development of an Oro
Valley birding experience utilizing Vistoso Trails Nature Preserve, Catalina Park, and Tohono Chul Park.
• Presented targeted travel Oro Valley itineraries to the Arizona Office of Tourism’s reservation call center.
Town of Oro Valley FY 2023/24 Adopted Budget 124
Department Budgets | Community & Economic Development (CED)
• Created quarterly Economic/Tourism Newsletter focusing on cross-selling opportunities for town related
tourism businesses.
• Completed tourism forum survey.
• Fostered partnerships with USA Cycling, El Tour De Tucson and Tucson Bike Classic to establish cycling
activities and events in Oro Valley.
Council Focus Area(s)
• Land Use and Design
• Economic Vitality
2023/24 Objectives
• Conduct an assessment to determine the types of residential opportunities necessary to successfully
promote a thriving and diverse economic base.
• Support and encourage the current key economic sectors in Oro Valley while exploring opportunities for
new growth.
• Host three start-up business classes to educate and support prospective entrepreneur prospects with
support from Startup Tucson and/or the Pima County Small Business Development Center.
• Develop a strategy to identify, engage, and support community-based “solopreneurs” (e.g. consultants,
early retirees, freelancers, etc.) and others who want to create new businesses.
• Complete a comprehensive analysis of the return on investment and benefits derived from the Town’s
partnership with Visit Tucson and bring options to Council regarding the Town’s tourism and attraction plans.
• Conduct an external retail market assessment by a qualified firm to provide targeted data designed to assist the Town in attracting and retaining restaurant and retail establishments.
• Implement a Town-owned public art maintenance plan.
Performance Measures
FY 2022 Actual FY 2023 Target FY 2023 Result FY 2023 Status FY 2024 Target
Percentage of zoning or building code violation complaints investigated within 72 hours 100% 100% 100% 100%
Percentage of zoning or building code violations resolved through voluntary compliance 95% 95% 100% 95%
Percentage of inspections completed by end of next business day 95% 98% 98% 98%
Startup businesses established N/A 3 1 3
Target Met Target Not Met Informational Only N/A – New/Previous Measure
125 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Community & Economic Development (CED)
FY 2022 FY 2023 FY 2024
Actual Budget Budget Change
28.78 28.78 28.78 -
FY 2022 FY 2023 FY 2024
Expenditures by Division Actual Budget Budget Change
Administration 236,121 226,290 354,184 127,894
Permitting 1,038,195 1,094,080 1,160,335 66,255
Planning 659,776 746,557 1,190,567 444,010
Inspection and Compliance 847,940 817,619 777,800 (39,819)
Economic Development 120,024 396,218 399,559 3,341
Total 2,902,056 3,280,764 3,882,445 601,681
FY 2022 FY 2023 FY 2024
Revenue Sources Actual Budget Budget Change
Residential Building Permits 1,414,604 1,023,494 1,090,118 66,624
Commercial Building Permits 594,623 816,330 250,000 (566,330)
Special Inspection Fees 10,230 8,000 8,000 -
Zoning and Subdivision Fees 83,601 65,000 65,000 -
Sign Permits 24,925 20,000 20,000 -
Grading Permit Fees 59,337 84,500 65,000 (19,500)
Engineer Plan Review Fees 20,750 51,000 51,000 -
Fire Permits and Fees 73,094 65,000 75,000 10,000
Total 2,281,164 2,133,324 1,624,118 (509,206)
Total FTEs
Town of Oro Valley FY 2023/24 Adopted Budget 126
Department Budgets | Community & Economic Development (CED)
CED - Administration
Overview
The primary function of the Community and Economic Development Director is to ensure harmonious growth as well as the health, safety and welfare of the public in the built environment. The director, with support of the division managers and administrators, provides leadership, direction and support to the department's staff. Responsibilities include establishing departmental policy; leadership direction and support of the department's staff; preparation and management of the department's operating and capital budget; code interpretation and enforcement; revisions to the Town Code; Council support; Town Manager's Executive Leadership Team; customer service including effective public outreach and communication; and resolution of personnel and legal issues.
Significant Changes
• One management analyst position was transferred from the Economic Development Division.
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
CED Director 1.00 1.00 1.00 -
Management Analyst - - 1.00 1.00
Office Assistant 1.00 1.00 1.00 -
Total FTEs 2.00 2.00 3.00 1.00
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Personnel 220,228 210,890 343,784 132,894
Operations & Maintenance 15,893 15,400 10,400 (5,000)
Total Expenditures 236,121 226,290 354,184 127,894
127 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Community & Economic Development (CED)
CED - Permitting
Overview
The Permitting division coordinates all facets of plan review for permitting and development by assessing compliance with the codes and ordinances adopted by the Town. Plan review and coordination of projects include conceptual and final site plans, improvement plans, grading, building, walls, pools, spas, signs, equipment and miscellaneous projects for both residential and commercial development.
Significant Changes
• The increase in personnel costs is related to annual pay adjustments for eligible employees and an implemented class and compensation study
• O&M increased due credit card payment fees
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Division Manager, Permitting 1.00 1.00 1.00 -
Senior Civil Engineer 1.00 1.00 1.00 -
Engineering Design Reviewer 1.00 1.00 1.00 -
Plans Examiner II 2.00 2.00 2.00 -
Plans Examiner I 1.00 1.00 1.00 -
Senior Planning Technician 1.00 1.00 1.00 -
Building Permit Technician 2.00 2.00 2.00 -
Office Specialist 0.48 0.48 0.48 -
Total FTEs 9.48 9.48 9.48 -
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Personnel 956,942 978,205 1,032,370 54,165
Operations & Maintenance 81,253 115,875 127,965 12,090
Total Expenditures 1,038,195 1,094,080 1,160,335 66,255
Town of Oro Valley FY 2023/24 Adopted Budget 128
Department Budgets | Community & Economic Development (CED)
CED - Planning
Overview
The Planning division administers the General Plan and Zoning Code for the harmonious growth of the town. The division is responsible for providing planning and zoning services to the community, Town Council, Planning and Zoning Commission, Board of Adjustment and project teams. The division's current work plan focuses on updates to the sign code, zoning code, general plan and associated guidelines and standards.
Significant Changes
• The increase in personnel costs is related to: 1) a transfer and reclassification of a zoning technician from the CED -Inspection & Compliance Division to align with the workload and needs of the planning division; 2) rates adjustments resulting from a class and compensation study performed in FY 2023; 3) annual pay adjustments for eligible employees in FY 2024.
• The increase in O&M is related to the new General Plan which includes temporary contracted employees, consultants, and an interactive website.
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Division Manager, Planning 1.00 1.00 1.00 -
Principal Planner 2.00 2.00 2.00 -
Senior Planner 1.00 1.00 1.00 -
Planner 1.00 1.00 1.00 -
Senior Code Compliance Specialist - - 1.00 1.00
Code Compliance Specialist 1.00 1.00 1.00 -
Senior Office Specialist 1.00 1.00 1.00 -
Intern 0.30 0.30 0.30 -
Total FTEs 7.30 7.30 8.30 1.00
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Personnel 580,817 660,492 837,037 176,545
Operations & Maintenance 78,959 86,065 353,530 267,465
Total Expenditures 659,776 746,557 1,190,567 444,010
129 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Community & Economic Development (CED)
CED – Inspection & Compliance
Overview
The Inspection and Compliance division is responsible for inspecting all new and altered, commercial and residential, vertical and horizontal construction within the town to assess their compliance with the codes and ordinances adopted by the Town. The division is also responsible for the monitoring and enforcement of the zoning, building and Town codes and ordinances, including all construction, plant salvage, landscape, signage and development performance standards.
Significant Changes
• The decrease of 1.0 FTE is due to a transfer and reclassification of a zoning technician from the CED -Planning Division; The decrease in personnel costs is partially offset by annual pay adjustments for eligible employees
• The increase in O&M is in outside professional services to assist with inspections and short-term rental compliance
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Div. Mgr., Inspect. & Comp./Bldg. Official 1.00 1.00 1.00 -
Building Inspector II 4.00 4.00 4.00 -
Building Inspector I 1.00 1.00 1.00 -
Zoning Technician 1.00 1.00 - (1.00)
Senior Office Assistant 1.00 1.00 1.00 -
Total FTEs 8.00 8.00 7.00 (1.00)
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Personnel 838,002 799,799 745,730 (54,069)
Operations & Maintenance 9,938 17,820 32,070 14,250
Total Expenditures 847,940 817,619 777,800 (39,819)
Town of Oro Valley FY 2023/24 Adopted Budget 130
Department Budgets | Community & Economic Development (CED)
CED – Economic Development
Overview
Economic Development works to retain and expand existing businesses by providing free advertising through the Oro
Valley Business Navigator; serves as a point of contact between local owners/managers and the Town; and prepares
reports about the economy for the community. This department also searches for new businesses to bring to Oro
Valley, works with site selectors on new opportunities and maintains information on the sites and buildings that are
available in the town.
Significant Changes
• The decrease in 1.0 FTE is due to a mid-year transfer of a Management Analyst position to CED –
Administration. Personnel costs decreased due to the transfer of a Management Analyst and annual pay adjustments for eligible employees
• The increase in O&M is due to costs related to a partnership with SAACA previously budgeted in General Administration and a new site selection marketing strategy
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Economic Development Specialist 1.00 1.00 1.00 -
Management Analyst 1.00 1.00 - (1.00)
Total FTEs 2.00 2.00 1.00 (1.00)
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Personnel 83,630 192,862 99,968 (92,894)
Operations & Maintenance 36,394 203,356 299,591 96,235
Total Expenditures 120,024 396,218 399,559 3,341
131 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Council
COUNCIL
Overview
Town Council consists of seven officials elected by residents of the Town. The Mayor is directly elected by the citizens while the Vice Mayor is selected by the Council annually. Councilmembers serve four-year
overlapping terms in the manner prescribed by state law. The Mayor and Councilmembers of Oro Valley are committed to high quality municipal services and responsible development. Through the Town Manager, the Town Council provides policy direction by adopting rules, regulations and procedures to meet community
needs. The Mayor and Councilmembers remain accountable and accessible to the residents through their commitment to full, honest and timely communication and exchange promoting responsive, accountable governance.
2022/23 Accomplishments
• Approved zoning amendments and a revised master development plan for developer Town West Companies to revitalize the Oro Valley Marketplace. The approved amendments and revisions reflect more than two years of effort, six (6) neighborhood meetings, extensive technical review, numerous site inspections by decision makers and six (6) public meetings.
• Approved the General Plan Public Engagement Plan related to the 2026 General Plan.
• Achieved one of the goals for the Steam Pump Ranch Master Plan through staff and Historic Preservation Commissions’ work, which included the Garage restoration (which now houses Parks and
Recreation staff), and improvements to the Pusch House building (a museum operated by the Oro Valley Historical Society).
• Approved the updated Strategic Plan for fiscal years 2023/24 and 2024/25.
• Directed staff to install a high-intensity activated crosswalk (HAWK) in front of Ironwood Ridge
Highschool on Naranja Drive, which has been installed and operational.
• Provided direction to staff to fund and install an elevator at the Community and Recreation Center for
improved ADA accessibility to the facility.
• Approved the new short-term rental ordinance and licensing process.
Council Focus Areas and Goals
• Economic Vitality
Strengthen assistance to support and retain local businesses.
Attract, expand, and retain primary employers to encourage growth and development of job opportunities.
Attract, expand, and retain retail, food service, and hospitality opportunities in commercial centers.
Increase the number of residents and visitors who choose Oro Valley as a premier place to dine, shop, play, and stay.
• Culture and Recreation
Invest in and maintain OV recreational assets that provide opportunities for residents to connect with each other, nature, and their community (i.e., Aquatic Center, Community Center, golf courses, historic
sites, parks, trails, etc.).
Invest in and maintain the OV trail system for accessibility, to best serve the needs of the community, and as a way to connect with neighbors and nature.
Increase Oro Valley residents’ involvement in multi-generational recreation opportunities and programming.
Town of Oro Valley FY 2023/24 Adopted Budget 132
Department Budgets | Council
Council Focus Areas and Goals (continued)
• Public Safety
Strengthen strategies that keep Oro Valley as one of the safest communities in Arizona.
Invest in the health and wellness of OVPD employees.
Strengthen the OV justice system, including coordination between the OVPD, Legal Services, and the Town Court.
• Roads, Water and Town Assets
Invest in current and future OV transportation networks and quality infrastructure (i.e., bridges, Dial-a-Eide, roads, Sun Shuttle, etc.).
Deliver a safe, reliable, and sustainable water supply that meets the long-term needs of the community.
Maintain and improve the community’s infrastructure by ensuring the effective utilization of Town and regional resources.
• Land Use and Design
Maintain and enhance the character of the community regarding development, recognizing the importance of natural and open spaces.
• Effective and Efficient Government
Strengthen community engagement with a focus on clear and accessible information.
Foster and cultivate the Town’s culture of continuous improvement to enhance customer experience, improve organizational efficiency, and increase value through innovation.
Attract and retain skilled and knowledgeable employees.
Invest in the health and wellness of Town employees.
• Finances Stability and Sustainability
Safeguard the Town’s financial resources to ensure high service levels are met and maintained for current and future residents.
Significant Changes
• The increase in O&M is related to travel and training, volunteer recognition costs, and office supplies.
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Mayor 1.00 1.00 1.00 -
Councilmember 6.00 6.00 6.00 -
Total FTEs 7.00 7.00 7.00 -
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Personnel 78,817 78,822 78,825 3
Operations & Maintenance 113,198 120,323 130,378 10,055
Total Expenditures 192,015 199,145 209,203 10,058
133 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Town Court
TOWN COURT
Overview
Oro Valley Town Court is charged with the processing and adjudication of all cases filed with the court. This includes misdemeanor criminal and traffic cases, civil traffic cases and Town Code violations. The court also collects fines, surcharges, restitution, and other fees associated with these cases. Oro Valley Town Court
also issues domestic violence orders of protection and injunctions against harassment, and issues marriage licenses. Services rendered by the Court are governed by rules set by the Arizona Supreme Court, statutes and/or ordinances enacted by the Arizona Legislature and/or the Oro Valley Town Council.
2022/23 Accomplishments
• The Court and Oro Valley Police Department (OVPD) collaborated on a pilot program called Virtual
Initial Appearances (VIA), that gives officers the opportunity to contact the Magistrate Judge at the time of a misdemeanor arrest and have an Initial Appearance Hearing immediately. Defendants have an opportunity to plead guilty and be sentenced then.
• The Court and the Public Works Department worked with Breckenridge Architects to design a proposed addition to the courthouse that will add a lobby/waiting area, public restrooms, attorney/client interview
rooms, and a jury deliberation room. It also reconfigures the clerk area, allowing for growth in the coming years.
• A state-mandated triennial audit was completed in November 2022 to determine the Court’s compliance with the State of Arizona Supreme Court’s Minimum Accounting Standards. The Court had a successful audit, with only issue identified that has since been corrected. A new procedure has also been established to avoid any future findings.
• Another triennial audit was conducted by the State of Arizona Supreme Court in December 2022 to
determine compliance with the Court Security Standards. The Court had a successful audit that will be improved upon with the courthouse addition. Council Focus Area(s)
• Public Safety 2023/24 Objectives
• Uphold the law and administer justice fairly, timely, and efficiently.
• Ensure that all citizens have equal access to justice
• Complete design phase of the court remodel in Capital Improvement Program (CIP)
Town of Oro Valley FY 2023/24 Adopted Budget 134
Department Budgets | Town Court
Performance Measures
FY 2022 Actual FY 2023 Target FY 2023 Result FY 2023 Status FY 2024 Target
Resolve non-DUI misdemeanor cases within 180 days (98% resolution standard required by the Arizona Supreme Court)
N/A 98% 99.43% 98%
Resolve DUI misdemeanors within 180
days (93% resolution standard required by
the Arizona Supreme Court) N/A 93% 98.15% 93%
Resolve ex parte protective orders within
24 hours of filing (99% resolution standard
required by the Arizona Supreme Court)
N/A 99% 87.62% 99%
Resolve civil traffic cases within 90 days
(98% resolution standard required by the
Arizona Supreme Court)
N/A 98% 92.21% 98%
Target Met Target Not Met Informational Only N/A – New/Previous Measure
135 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Town Court
Significant Changes
• The increase in 0.48 FTE is due to a new part-time court security manager position
• The judge will be a contracted employee for part of FY 2024, shifting some personnel costs to O&M
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Magistrate Judge 1.00 1.00 1.00 -
Court Administrator 2.00 2.00 1.00 (1.00)
Deputy Court Administrator - - 1.00 1.00
Court Compliance Specialist - - 1.00 1.00
Courtroom Clerk 1.00 1.00 - (1.00)
Senior Court Clerk 1.00 1.00 1.00 -
Court Clerk 3.00 3.00 3.00 -
Probation Compliance Officer - 0.48 0.48 -
Court Security Manager - - 0.48 0.48
Court Security Coordinator 0.50 0.50 0.50 -
Total FTEs 8.50 8.98 9.46 0.48
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Personnel 644,193 766,543 760,239 (6,304)
Operations & Maintenance 178,234 254,131 250,423 (3,708)
Capital Outlay 38,759 39,000 - (39,000)
Total Expenditures 861,186 1,059,674 1,010,662 (49,012)
FY 2022 FY 2023 FY 2024
Revenue Sources Actual Budget Budget Change
Court Costs 157,338 135,000 135,000 -
Court Security Fee 58,759 57,000 57,000 -
Public Defender Fees 200 2,400 2,400 -
Fines 132,636 125,000 125,000 -
Total Revenues 348,933 319,400 319,400 -
Town of Oro Valley FY 2023/24 Adopted Budget 136
Department Budgets | Finance
FINANCE
Overview
Finance is responsible for Town financial activities, including accounting, payroll and accounts payable
processing, budget development, coordination and analysis, financial statement preparation, audit coordination, debt management, managerial reporting, sales tax compliance and participation in a variety of other administrative and special projects. Finance also coordinates the development of the Town’s Capital
Improvement Program and provides procurement administration for the Town. 2022/23 Accomplishments
• Received the Distinguished Budget Presentation award from the Government Finance Officers Association (GFOA) for fiscal year 22/23, the 15th consecutive year.
• Received the Certificate of Achievement for Financial Reporting Excellence from GFOA for fiscal year 20/21, the 28th consecutive year.
• Received the Popular Annual Financial Reporting award from GFOA for fiscal year 20/21, the 10th consecutive year.
• Recognized by the Government Finance Officers Association (GFOA) as a “Triple Crown Winner” for the 2020 fiscal year.
• Implemented paperless payments for the Town’s accounts payable process, vastly reducing the need for printed, mailed checks and greatly enhancing the speed and efficiency of invoice payments.
• Received an unmodified “clean” audit opinion for the Town’s annual financial statements.
• Due to conservative budgeting practices and prudent fiscal management, the Town is expected to
significantly outperform financial expectations in the General Fund and across nearly all funds for the fiscal year.
• Updated Comprehensive Financial and Budgetary Policies Council Focus Area(s)
• Financial stability and sustainability
• Effective and efficient government
2023/24 Objectives
• Explore opportunities to broaden revenue diversity to improve the Town’s long-term financial stability
• Leverage technology to broaden electronic access to information and data on Town’s finances and contracts
• Collaborate between Procurement, IT and Clerk’s Office to seek, source and implement best solution for public access to Town procurement contracts
• Assist in update of Town-wide development impact fees and increase cost recovery of Town services through update of development review, permitting, and parks & recreation fees
137 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Finance
Performance Measures
FY 2022 Actual FY 2023 Target FY 2023 Result FY 2023 Status FY 2024 Target
Excise tax revenue bond ratings from Fitch and/or Standard & Poor’s (S&P) S&P AA+ S&P AA+ S&P AA+ S&P AA+
Maintain minimum General Fund reserve balance of 25% of General Fund expenditures 52.8% >25% 49% (projected) >30%
Percentage variance between mid-year revenue forecast and actual fiscal year-end revenue for General Fund 11.3% <5% 3.3% <5%
Target Met Target Not Met Informational Only N/A – New/Previous Measure
Significant Changes
• 3.0 FTE positions related to procurement were transferred to the Town Manager’s Office.
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Chief Financial Officer 1.00 1.00 1.00 -
Deputy Finance Director - - 1.00 1.00
Finance & Budget Administrator 1.00 1.00 - (1.00)
Chief Procurement Officer 1.00 1.00 - (1.00)
Contract Specialist 1.00 1.00 - (1.00)
Procurement Specialist - 1.00 - (1.00)
Senior Budget Analyst 1.00 1.00 1.00 -
Senior Accountant 2.00 2.00 2.00 -
Accounting Specialist 1.00 1.00 1.00 -
Senior Office Specialist 0.20 0.20 0.20 -
Total FTEs 8.20 9.20 6.20 (3.00)
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Personnel 870,187 1,017,379 763,346 (254,033)
Operations & Maintenance 66,375 94,081 87,110 (6,971)
Total Expenditures 936,562 1,111,460 850,456 (261,004)
Town of Oro Valley FY 2023/24 Adopted Budget 138
Department Budgets | General Administration
GENERAL ADMINISTRATION
Overview
The General Administration budget accounts for certain non-departmental costs such as utility expense,
general liability insurance and regional partnerships for tourism and economic development, as well as health clinic costs and vehicle reserves (excluding Enterprise Funds). It also allocates monetary transfers to subsidize various funds, i.e. debt service and capital projects.
Significant Changes
• O&M consists principally of vehicle replacement reserves, tourism and economic development regional partnerships, and Town-wide general liability insurance
• Capital outlay is the Westward Look Drive improvements CIP project carried over from FY23 ($845,534) and the storage for digital forensics CIP project ($80,000)
• Other Financing Uses consists of transfers to the Municipal Debt Service Fund for debt service ($2.1 million) and a transfer to the Capital Fund for capital projects ($10 million). Transfers to the Capital Fund for CIP vary from year to year and are dependent on the General Fund balance that exceeds the Town’s reserve policy.
FY 2022 FY 2023 FY 2023 FY 2024
Expenditures Actual Budget Projected Budget Change
Operations & Maintenance 12,782,733 2,358,290 2,320,855 2,440,536 82,246
Capital Outlay 139,301 569,625 43,543 925,534 355,909
Other Financing Uses 6,262,832 16,446,977 15,996,977 12,274,644 (4,172,333)
Total Expenditures 19,184,866 19,374,892 18,361,375 15,640,714 (3,734,178)
139 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Human Resources
HUMAN RESOURCES
Overview
Human Resources (HR) provides services and support in the following areas: policy and procedure; administration and compliance; compensation and benefits; hiring, development and retention; employee and labor relations; and performance management.
2022/23 Accomplishments
• Provided customized recruitments which resulted in the hiring and onboarding of 80 new employees and promotions of 28 existing employees through the first 9 months of the fiscal year.
• Recommended the 2022/2023 General Pay Plan and resulting implementation, to include:
• New pay grade structure and numbering system
• Streamlined the 4.25% general employee pay increases through improved, more efficient data entry process
• Implemented new pay placement tool for new hires and phase II compression analysis
• Created new classification series and standardized job description language
• Implemented a variety of improved benefit offerings, to include:
• Enriched plan design for the dental high plan
• Added second/enriched tier for the vision plan
• Transitioned Employee Assistance Plan to a new provider and extended coverage to all employees
• Conducted annual employee recognition where 46 employees who reached the 5, 10, 15, 20, 30, and 35-year marks were honored for over 555 combined years of service. Quarterly employee recognition programs honored recently promoted and welcomed new hires.
• 77.5% of employees enrolled in the Town’s Health Insurance Plans are actively participating in the “Know
Your Numbers” campaign.
• Processed 13 police officer new hires and 8 DROP applications though the PSPRS local board, including a new extended DROP request standard operating procedure.
• Transitioned deferred compensation program from MissionSquare Retirement to Empower Retirement to include improvement of employee communication, education, and general overall employee financial wellness.
• Updated employee work injury procedures, including reporting procedures, collaboration with Town Departments and added a second provider for medical services
• Improved investigatory services to Town departments.
• Conducted “anti-harassment and anti-retaliation” training for all employees through the new NeoGov learning management system and 6 live classes.
• Implemented new FMLA tracking software and improved case tracking ability.
• Coordinated three blood drives with the Red Cross, four flu shot clinics and one onsite mammography event. Council Focus Area(s)
• Effective & Efficient Government
2023/24 Objectives
• Benchmark workforce policies and practices and recommend and implement sustainable changes to the
Town’s personnel policies and internal procedures as appropriate
• Implement a robust on-going supervisory training program that supports delivery of quality services,
strengthens employee engagement and builds leadership skills.
Town of Oro Valley FY 2023/24 Adopted Budget 140
Department Budgets | Human Resources
• Invest in education and training programs to develop current employees for promotional opportunities
• Develop an enhanced performance management system to strengthen employee engagement and
retention
Performance Measures
FY 2022 Actual FY 2023 Target FY 2023 Result FY 2023 Status FY 2024 Target
Employee Investment: # of Supervisory Training Hours Attended N/A 248 7.8 248
Employee Investment: # of Tuition Reimbursement Recipients 8 10 6 10
Employee Investment: # of Promotions 17 15 27 20
Full Time Employee Turnover Rate 17.4% 15% 12.7% 13%
Target Met Target Not Met Informational Only N/A – New/Previous Measure
Significant Changes
• The increase in personnel costs is related to rate adjustments resulting from an implemented class and compensation study, changes in benefit elections, and annual pay adjustments for eligible employees in FY 2024.
FY 2021 FY 2022 FY 2023
Personnel Actual Budget Budget Change
Human Resource Director 1.00 1.00 1.00 -
Human Resource Analyst 2.00 3.00 3.00 -
Human Resource Assistant 1.00 - - -
Total FTEs 4.00 4.00 4.00 -
FY 2021 FY 2022 FY 2023
Expenditures Actual Budget Budget Change
Personnel 383,866 401,410 427,780 26,370
Operations & Maintenance 53,484 133,980 142,125 8,145
Total Expenditures 437,350 535,390 569,905 34,515
141 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Innovation & Technology
INNOVATION & TECHNOLOGY
Overview
The Innovation & Technology Department (I&T) is committed to providing secure, proven, innovative technologies that enhance operational efficiencies while providing convenient access to government information and services for employees, citizens, visitors and businesses. I&T is comprised of two divisions:
Innovation and Strategy, and Information Technology. The Innovation and Strategy division manages the Council Strategic Leadership Plan, OV Peak Performance
(continuous improvement activities dedicated to delivering better value to customers, internally and externally, by eliminating waste), emergency management, safety, and constituent services. Emergency Management programs ensure disaster preparedness, education and information is made available to staff and to
community stakeholders. Constituent Services, through phone calls and AskOV, addresses concerns, complaints, inquiries and referrals with excellent customer service and a commonsense approach.
The Information Technology Division (ITD) identifies, implements, and supports technology for all Town departments to support their business needs. Responsibilities include management and security of the Town's computer and telephony networks, Geographic Information System (GIS), technology acquisition, application, and database support. ITD strategizes its work through five focus areas: service delivery Improvement; cyber security; application lifecycles; business continuity; and ITD as a strategic partner.
2022/23 Accomplishments
• Provided a Town Council report that explored options on how to implement and manage a Town-owned
fiber optic network that would minimize reliance on third party carriers and increase technology capabilities at Town facilities.
• Developed and acted on strategies to expand broadband services throughout the town.
• Continued to foster a culture of continuous improvement through actions that support, challenge, and engage the employee at all levels.
• Trained all new staff on process improvement. 13 employees completed Green Belt training. Continued to provide regular training to Town staff to enhance process improvement proficiencies.
• Received the SHRM - GT: 2022 Celebrating Innovation in the Workplace award for medium and large organization category for our Peak Improvement program.
• Resolved over 5,500 I&T Helpdesk ticket requests and completed 111 projects to include: o New Water Utility customer billing software, enabling more online interaction with customers.
o New permitting software, which streamlined the permitting workflow and enabled more online interaction with customers. o Outfitted the PD Mobile Command Center with technology to keep users connected in the field.
o Rolled out 100% multifactor authentication to all Town network accounts. o Extended the Town’s network to the new Steam Pump Ranch offices for Town staff.
• Coordinated updated cybersecurity training courses for employees twice per year along with ongoing phishing testing campaign with remedial training to help mitigate against potential breaches.
• Implemented a Town wide safety reporting program to track incidents and corrective actions.
• Participated with Pima County in updating the multi-jurisdictional hazard mitigation plan.
• Provided training to Town senior management team in emergency operations and conducted an emergency management exercise.
Town of Oro Valley FY 2023/24 Adopted Budget 142
Department Budgets | Innovation & Technology
Council Focus Area(s)
• Economic Vitality
• Roads, Water and Town Assets
• Effective and Efficient Government
2023/24 Objectives
• Improve I&T asset inventory by consolidating all data into one system
• Upgrade Legal case management system
• Upgrade Town phone system
• Implement Citizen Engagement Software to assist with the Town’s General Plan
• Host Lunch & Learns to improve communication and training on Innovation and Technology topics
• Foster a culture of continuous improvement through actions that support, challenge, and engage the
employee at all levels
• Implement constituent facing dashboards for the Strategic Plan
• Identify and implement ways in which Peak Performance teams share their journey and successes within
the organization
Performance Measures
FY 2022 Actual FY 2023 Target FY 2023 Result FY 2023 Status FY 2024 Target
Ensure all systems are updated and patched within 30 days of patch release. N/A 95% 100% 95%
Implement Helpdesk satisfaction survey N/A 80% 98% 85%
Quarterly Peak Improvement events added N/A 4 0 4
Add storyboards to InsideOV as projects
complete N/A 5 2 5
Peak Performance initiative cost savings $119,224 $100,000 $127,087 $100,000
Peak Performance initiatives implemented 24 30 30 30
Employees Lean Six Sigma Green Belt new certifications 29 15 13 15
Target Met Target Not Met Informational Only N/A – New/Previous Measure
143 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Innovation & Technology
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Chief Innovation Officer 1.00 1.00 1.00 -
Network Manager 1.00 1.00 1.00 -
Applications Manager 1.00 1.00 1.00 -
Network Administrator 1.00 2.00 2.00 -
Cybersecurity Analyst - - 1.00 1.00
Business Systems Analyst 3.00 2.00 3.00 1.00
Database Analyst 1.00 1.00 1.00 -
Senior GIS Administrator 1.00 1.00 1.00 -
GIS Analyst 1.00 1.00 1.00 -
IT Analyst 1.00 1.00 1.00 -
IT Technician 1.00 2.00 2.00 -
Strategic Initiatives Manager 1.00 - - -
Management Analyst - 1.00 1.00 -
Constituent Services Coordinator 1.00 1.00 1.00 -
Emergency Mgmt. & Safety Coordinator 1.00 1.00 1.00 -
Senior Office Specialist 0.80 0.80 0.80 -
Total FTEs 15.80 16.80 18.80 2.00
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Personnel 1,598,342 1,742,909 2,187,859 444,950
Operations & Maintenance 2,230,542 2,705,600 3,412,850 707,250
Capital Outlay 213,324 349,300 670,600 321,300
Total Expenditures 4,042,208 4,797,809 6,271,309 1,473,500
Significant Changes
• A new security and compliance administrator position (1.0 FTE) in order to keep the Town’s IT systems within compliance and maintain cybersecurity.
• A new business systems analyst position (1.0 FTE) to provide the Police Department a dedicated resource to accomplish I&T oriented software projects, upgrades, and improvements.
• Personnel costs increased due to two new positions, rate adjustments resulting from an implemented class and compensation study, and annual pay adjustments for eligible employees in FY 2024.
• The increase in O&M is related to software maintenance costs and licensing.
• The increase in capital outlay is related to costs for desktop replacements and police mobile computer (MDC) replacements.
Town of Oro Valley FY 2023/24 Adopted Budget 144
Department Budgets | Legal
LEGAL
Overview
The Legal Services Department is managed by the Legal Services Director. A contract attorney is hired by the Mayor and Council to act as their chief legal advisor. The Legal Services Department is committed to providing the highest quality representation possible to meet the present and future needs of the Town in an efficient and effective manner.
2022/23 Accomplishments
•Worked with the local court to increase operational efficiencies.
•Worked with the Police Department regarding prosecuting felony declination cases.
•Provided training statewide on the topics of Advanced DUI, Prosecuting the Drugged Driver and DUIEnforcement to both police officers and prosecutors for the State Prosecutors Association and theGovernor’s Office of Highway Safety.
•Town Prosecutor was reappointed as the States Best Practices Chairman for AZ prosecutors.
•Responded to legal claims against the Town.
•Reviewed contracts, policies and ordinances; and provided legal advice
•Provided support for the Town acquisition of Vistoso Trails Nature Preserve
•The U.S. Attorney’s Office asked for trial materials prepared by our prosecutor, and then used them toobtain a guilty plea on a large federal fraud case due to that evidence.
Council Focus Area(s)
•Public Safety
2023/24 Objectives
•Provide the highest quality representation in order to meet the present and future needs of the Town in
an efficient and effective manner
Performance Measures
FY 2022 Actual FY 2023 Target FY 2023 Result FY 2023 Status FY 2024 Target
Percentage of all legal requests fulfilled within 14 days 100% 100% 100% 100%
Number of criminal cases handled by prosecution staff (calendar year) 1,287 1,000 911 900
Local or statewide officer trainings provided 3 2 3 2
Target Met Target Not Met Informational Only N/A – New/Previous Measure
145 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Legal
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Legal Services Director 1.00 1.00 1.00 -
Chief Civil Deputy Attorney 1.00 1.00 1.00 -
Assistant Town Prosecutor 1.00 2.00 2.00 -
Senior Paralegal 1.00 1.00 - (1.00)
Paralegal I 1.00 1.00 2.00 1.00
Legal Secretary 1.00 1.00 1.00 -
Total FTEs 6.00 7.00 7.00 -
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Personnel 767,212 840,808 963,063 122,255
Operations & Maintenance 127,389 162,945 169,440 6,495
Capital Outlay - 12,000 - (12,000)
Total Expenditures 894,601 1,015,753 1,132,503 116,750
Significant Changes
• Personnel costs increased due to rate adjustments resulting from an implemented class and compensation study and annual pay adjustments for eligible employees in FY 2024.
• The increase in O&M is primarily related to increases for memberships and subscriptions.
Town of Oro Valley FY 2023/24 Adopted Budget 146
Department Budgets | Town Manager’s Office
TOWN MANAGER’S OFFICE
Overview
The Town Manager is responsible for the proper management and administration of the Town and serves as the Chief Administrative Officer of the government under the direction of the Town Council. The Town Manager’s office advises the Town Council on policy matters and manages the operations of the Town. This
includes directing and supervising the administrative Town departments, recommending the annual budget; carrying out the policy direction of the Town Council; monitoring legislation; and representing the Town at the local, state and national level. The Town of Oro Valley is made up of the following departments and/or offices: Town Manager; Town Clerk; Finance; Human Resources; Information Technology; Legal Services; Police; Water Utility; Community and Economic Development; Public Works; Parks and Recreation; and Town Court.
2022/23 Accomplishments
• Completed negotiated agreement for the Vistoso Trails Nature Preserve and initiated the development of a draft master plan to include a robust community engagement process.
• Established a process to convert paper files to accessible digital documents to increase staff efficiency, document availability and sustainability.
• Accepted a 2022 Celebrating Innovation in the Workplace Award from the Society for Human Resources Management of Greater Tucson in the Technology and Process Improvement category for the Town’s Peak Performance program.
• Established the Oro Valley Health Care Benefits Trust for the Town Self-Insurance Program.
• Led and implemented a new 457 deferred compensation provider with enhanced financial well-being opportunities for employees leading to an eight (8) percent increase in participation.
• Implemented the FY 22/23 General Pay Plan and Police Step Plan changes resulting from a completed classification and compensation study.
• Negotiated and finalized an operating agreement with the Arizona Heroes Memorial for a living memorial dedicated to veterans, first responders and health care workers at Naranja Park.
• Successfully negotiated a land swap agreement with a private landowner to facilitate the parking lot expansion at the Town’s Community Center.
• Negotiated and signed a new intergovernmental agreement to utilize Regional Transit Authority funds to design and construct improvements to the Naranja Drive multi-use path from La Canada to 1st Ave.
• Negotiated an updated intergovernmental agreement with Pima County (Pima County Animal Care Center/PACC) for the provision of animal care services resulting in annual savings of approximately $160,000, without a reduction in service.
Town Manager
ADMINISTRATION COMMUNICATIONS
147 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Town Manager’s Office
• Negotiated and signed a new intergovernmental agreement with Pima County for Opioid Settlement Funds, which will provide an ongoing revenue source to address epidemic needs within the community.
• The OV SafeSteps program won first place in the 2022 City-County Communications & Marketing Association’s (3CMA) Savvy Award category of Communications and Marketing Tools: Printed Publications – COVID PR.
• The Town’s new economic development website, www.chooseorovalley.com, was awarded a Golden Prospector award from the Arizona Association for Economic Development, which was developed and launched by the Communications Division, in partnership with the Community and Economic Development Department.
• Completed a seven-video series of “quality of life” videos for the new www.chooseorovalley.com website, which showcase topics such as housing, working in OV, education, arts, culture and recreation in Oro Valley.
• As part of the Town’s tourism marketing efforts, staff developed an OV Sports Tourism tradeshow brochure and the Town’s first-ever Spanish-language brochure for Mexican shoppers, encouraging them to stay in Oro Valley hotels. Council Focus Area(s)
• Effective and Efficient Government
2023/24 Objectives
• Integrate process improvement and data-driven decision-making across Town departments by embedding
continuous improvement functions within the Town Manager’s Office.
• Enhance performance management and strategic alignment by implementing a balanced scorecard initiative.
• Develop a comprehensive roadmap for the Vistoso Trails Nature Preserve in the form of a master plan and implementation strategy.
• Enhance efficiency and resource allocation through informed decision-making by conducting a comprehensive space needs assessment.
• Provide Council the information necessary to evaluate the Pusch Ridge 9-Hole Golf Course through a comprehensive analysis of course operations and continued feasibility, capital improvement requirements,
water usage and other alternative considerations.
• Utilize information from the Buildout Analysis to assist in decision-making and future planning of Town
resources.
• Harness and leverage local expertise to elevate organizational effectiveness and community impact by
establishing an “expert volunteer” program.
• Elevate community amenities and quality of life by successfully completing all projects within the
transformative Parks and Recreation bond, including Naranja Park expansion projects and related safety improvements.
• Strengthen community unity and foster civic pride through a memorable and inclusive celebration of the Town’s 50th Anniversary.
• Secure robust community engagement and facilitate successful adoption of the 2026 General Plan by initiating early and inclusive participation in the planning process.
Town of Oro Valley FY 2023/24 Adopted Budget 148
Department Budgets | Town Manager’s Office
Comms Performance Measures
FY 2022 Actual FY 2023 Target FY 2023 Result FY 2023 Status FY 2024 Target
Website: annual number of page views* 1,463,204 1,609,524 1,548,389
1,445,280
Website: annual number of daily active** users 726,933 799,626 819,370
822,228
Website: engaged sessions (New metric for 2024. See below)*** 356,376
Podcast: annual downloads 1,080 1,188 869 1,306
Facebook: Total reach 103,583 110,000
Facebook: Published posts 203 225
Facebook: Median post engagements 20 21
Facebook: Total followers 8,217 8,500 8,724 9,000
* The annual number of page views for FY 2023 is not comparable to FY 2022 since Google changed the metrics definition to: “An instance of a
page being loaded (or reloaded) in a browser.” Therefore, 2023 Status is not applicable due to new measures.
** Previous metric/term was “user” and metric has been revised to state “active user” moving forward with FY 23/24, which is a more
meaningful metric; however, it will not be apples-to-apples when comparing to FY 22/23. We are establishing a new baseline this year.
*** Engaged session is defined by a session that lasts longer than 10 seconds, has a conversion event, or has at least 2 pageviews or screen
views.
NOTE: Regarding the three Facebook/META metrics above: When META implemented its new “Facebook page experience” earlier this year,
they changed their Insights page (metrics) and no longer provides these three annual metrics. It has simplified its metrics/insights, which means we don’t have access to data for FY 2023 status, and we will be implementing the three updated metrics. See definitions below. Additionally, these metrics are representative of the main Town of Oro Valley – Government Facebook page. It does not include metrics from the OVPD or Parks & Recreation social media accounts. DEFINITIONS FOR REVISED FACEBOOK METRICS:
• Published posts is the number of posts (including photos, videos, text, shares, etc.) posted by the Town
• Total (overall) reach includes the estimated total reach from organic and paid distribution of content, tags, check-ins and Page profile visits. This metric is only counted once if it occurs from both organic and paid distribution.
• Median post engagement is the median number of reactions, comments and shares on posts.
Target Met Target Not Met Informational Only N/A – New/Previous Measure
149 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Town Manager’s Office
FY 2022 FY 2023 FY 2024
Actual Budget Budget Change
8.38 8.38 11.38 3.00
FY 2022 FY 2023 FY 2024
Expenditures by Division Actual Budget Budget Change
Administration 608,609 657,306 1,075,811 418,505
Communications 466,018 502,867 562,905 60,038
Total 1,074,627 1,160,173 1,638,716 478,543
Total FTEs
Town of Oro Valley FY 2023/24 Adopted Budget 150
Department Budgets | Town Manager’s Office
TOWN MANAGER’S OFFICE - ADMINISTRATION
Overview
The Town Manager’s office is responsible for the fiscal health of the Town government, and for direction and
coordination of the administrative functions of the various departments, divisions, boards and services of the Town Government. The Town Manager’s office provides staff support to the Town Council, promotes the Town’s legislative agenda through intergovernmental programs, seeks opportunities for partnerships and
financial assistance at the county, state and federal levels through grants, legislation and federal appropriation requests, represents the Town at the regional, state and national level, and oversees the operations of Town departments and offices.
Significant Changes
• The increase in personnel costs is related to the transfer of procurement positions (3.00 FTEs) to the Town Manager’s Office, rate adjustments resulting from an implemented class and compensation study, and annual pay adjustments for eligible employees in FY 2024.
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Town Manager 1.00 1.00 1.00 -
Deputy Town Manager 1.00 1.00 1.00 -
Executive Assistant 1.00 1.00 1.00 -
Management Analyst 1.00 1.00 1.00 -
Management Intern 0.38 0.38 0.38 -
Chief Procurement Officer - - 1.00 1.00
Contract Specialist - - 1.00 1.00
Procurement Specialist - - 1.00 1.00
Total FTEs 4.38 4.38 7.38 3.00
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Personnel 590,259 612,939 1,028,260 415,321
Operations & Maintenance 18,350 44,367 47,551 3,184
Total Expenditures 608,609 657,306 1,075,811 418,505
151 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Town Manager’s Office
TOWN MANAGER’S OFFICE - COMMUNICATIONS
Overview
The Communications & Marketing Division is responsible for managing and facilitating all media relations on
behalf of the Town (with the exception of the Police Department, which has a designated public information
officer). The Division is responsible for internal and external communications, marketing and publications; the
Town’s multiple websites; oversight of the Town’s social media accounts; graphic design and maintenance of
Town graphic standards; videography and photography. Additionally, the Communications & Marketing
Division, in partnership with Economic Development, manages and facilitates the Town’s marketing and
advertising efforts. The division also partners with the various departments to plan, develop and produce
publications and initiatives designed to facilitate communication between Town leadership and residents to
keep residents informed about Town services, activities and programs.
Significant Changes
• The increase in personnel costs is related to rate adjustments resulting from an implemented class and compensation study, and annual pay adjustments for eligible employees in FY 2024.
• O&M increased due to special event costs for the Town’s 50th anniversary celebration
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Communications & Marketing Administrator 1.00 1.00 1.00 -
Digital Content Specialist 1.00 1.00 1.00 -
Marketing & Communications Specialist 1.00 1.00 1.00 -
Public Information Officer 1.00 1.00 1.00 -
Total FTEs 4.00 4.00 4.00 -
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Personnel 364,424 384,280 409,793 25,513
Operations & Maintenance 101,594 118,587 153,112 34,525
Capital Outlay - - - -
Total Expenditures 466,018 502,867 562,905 60,038
Town of Oro Valley FY 2023/24 Adopted Budget 152
Department Budgets | Parks and Recreation
PARKS and RECREATION
Overview
The Parks and Recreation Department is comprised of the following divisions: Administration, Parks Management, Recreation and Culture, Aquatics and Community Center/Golf Fund. The department is further responsible for providing staff support to the Parks and Recreation Advisory Board and the Historic Preservation Commission. The Mission of the department is Inspire Connection through Recreation 2022/23 Accomplishments
ADMINISTRATION
• July 2022 – Cut the ribbon at the new Vistoso Trails Nature Preserve
• July 2022 – Celebrated the TABY art project at the north entry of Naranja Park
• September 2022 – Received awards from the Arizona Parks and Recreation Association state agency for the Park Professional of the Year (Parks Maintenance Superintendent) and Best Adaptive
Recreation program (Camp I Can Too!)
• October 2022 – Cut the ribbon at the community center tennis/pickleball courts
• October 2022 – Cut the ribbon for the Conquistador Golf irrigation project
• December 2022 – Cut the ribbon for the restoration of the garage at Steam Pump Ranch
PARKS MANAGEMENT
• Demolished and removed the residential pool at Steam Pump Ranch
• Restored irrigation and replaced 14 trees along El Conquistador Way
• Replaced lawn irrigation at the Oro Valley Community and Recreation Center
• Renovated play area at Riverfront Park to include new decking on the play structures, new wood fiber
safety fall material and new ADA access path
• Repaired broken and heaved concrete in 9 locations along the Vistoso Trails Nature Preserve path
• Replaced 4 barbeque grills at park ramadas
• Repainted the James D Kriegh Park handball courts exterior walls
• Replaced roof on James D Kriegh ballfield score tower, painted interior and replaced flooring.
• Planted 60 new trees throughout the park system
RECREATION & CULTURE
• Completed renovation and moved into the garage offices at Steam Pump Ranch, allowing staff to be onsite six days of the week.
Parks and RecreationDepartment Director
ADMINISTRATION PARKSMANAGEMENT
RECREATION & CULTURE AQUATICS COMMUNITY CENTER
153 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Parks and Recreation
• Renovated the bunkhouses and BBQ buildings to increase the amenities during events, including additional restrooms, dressing room and kitchenette.
• Implemented new programing at Steam Pump Ranch such as overnight family camping and expanded youth camp hours to allow for early drop-off and late pickup, giving parents more flexibility in their day.
• Reorganized the archery range with input from the user base for more efficient use of the space.
• Opened more event and parking space at Steam Pump Ranch to increase the desirability as a venue for
events.
• Started the Oro Valley hiking series program that reached capacity shortly after opening registration.
• Implemented a volunteer program that has seen multiple applicants start volunteering at the archery range.
AQUATICS
• Continued to hold a strong membership base of over 400 memberships. This number jumped to over
600 during the three months of summer.
• Completed a major pump room expansion for new filters, an installation of a new recreation pool heater and a draining and deep cleaning of the Olympic pool.
• Refurbished 22 competitive dive blocks to maintain the Aquatic Center’s presence as a state-of-the-art competitive facility.
• Assistant Manager achieved Red Cross Lifeguard Instructor Trainer certification, one of only 10 individuals in southern Arizona. The certification also allows the facility to now offer the Red Cross
Lifeguard Instructor course to the public.
• The Aquatic Center hosted the National Jr/Sr Artistic Swimming Championship in April, attracting over
300 athletes and their families.
COMMUNITY CENTER
• Set an all-time high in membership numbers, reaching over 2,840 members in March. Previous record
was 2,550 members in 2018. Facility check-ins also reached an all-time high, averaging over 400 visits
per day.
• Successfully implemented Renew Active, a UnitedHealthcare program that provides free access to
individuals 65 and up. As of June 2023, the program had over 820 members.
• Completed the reconstruction project of the tennis and pickleball facility, including the addition of four
new post tension concrete pickleball courts.
• Oversaw the replacement and installation of all new strength and cardio equipment at the facility.
• Cleaned and resealed the pool deck to provide a safer and cleaner surface for facility users.
• Converted a racquetball court to a rec lounge space, geared towards youth ages 8-13 who previously
did not have programming space available to them in the facility.
• Upgraded various audio/visual equipment in the Sunset Room conference room.
EL CONQUISTADOR GOLF
• Green fees ahead of budget by $362,805
• Cart fees ahead of budget by $50,370
• Golf shop merchandise sales ahead of budget by $59,349
• Food and beverage sales ahead of budget by $178,872
• Rental clubs ahead of budget by $17,133
• Membership dues ahead of budget by $280,836
Council Focus Area(s)
• Culture and recreation
Town of Oro Valley FY 2023/24 Adopted Budget 154
Department Budgets | Parks and Recreation
2023/24 Objectives
• Continue implementation of Council bond funded projects to include Naranja Park build out and multi-
use paths.
• Finish partnership between the Town and Amphitheater School District for joint use of sports facilities.
• Increase programming to diversify and expand wellness opportunities to better serve Oro Valley
residents of all ages.
• Evaluate current department fees and create proposal to correspond with next fiscal year budget.
• Complete work with Senior Task Force designed to create new opportunities for seniors in Oro Valley,
including possible new programs or changes to facility use.
Performance Measures
FY 2022
Actual
FY 2023
Target
FY 2023
Result
FY 2023
Status
FY 2024
Target
Community and Recreation Center
Members 1,870 2,000 2,840 3,300
Oro Valley Aquatic Center Members 643 700 701 725
Rounds of Golf Played
97,111 79,875 99,062 82,000
Number of sport field reservations 4,649 N/A 4,625 N/A
Target Met Target Not Met Informational Only N/A – New/Previous Measure
155 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Parks and Recreation
FY 2022 FY 2023 FY 2024
Actual Budget Budget Change
63.58 67.08 68.81 1.73
FY 2022 FY 2023 FY 2024
Expenditures by Fund Actual Budget Budget Change
General Fund 2,268,745 3,815,162 4,664,040 848,878
Grants & Contributions Fund - - 673,718 673,718
Community Center Fund 6,319,322 13,171,272 10,157,685 (3,013,587)
Total 8,588,067 16,986,434 15,495,443 (1,490,991)
FY 2022 FY 2023 FY 2024
Revenues by Fund Actual Budget Budget Change
General Fund 896,019 817,032 796,840 (20,192)
Grants & Contributions Fund - - 653,718 653,718
Community Center Fund 9,502,986 9,813,852 9,708,452 (105,400)
Total 10,399,005 10,630,884 11,159,010 528,126
Total FTEs
Town of Oro Valley FY 2023/24 Adopted Budget 156
Department Budgets | Parks and Recreation – General Fund
PARKS and RECREATION
FY 2022 FY 2023 FY 2024
Actual Budget Budget Change
42.03 44.31 45.79 1.48
FY 2022 FY 2023 FY 2024
Expenditures by Division Actual Budget Budget Change
Administration 429,404 475,921 564,730 88,809
Parks Management 1,332,435 1,497,043 1,861,981 364,938
Recreation and Culture 506,906 616,241 1,390,118 773,877
Aquatics 1,225,957 1,520,929 294,972
Total 2,268,745 3,815,162 5,337,758 1,522,596
FY 2022 FY 2023 FY 2024
Revenue Sources Actual Budget Budget Change
Aquatics User Fees 545,171 496,000 466,000 (30,000)
Concession Sales 353 - - -
Fields & Courts User Fees 149,438 122,032 186,840 64,808
Miscellaneous User Fees 201,057 159,000 144,000 (15,000)
Federal Grants 633,718 633,718
State Grants 40,000 20,000 (20,000)
Total 896,019 817,032 1,450,558 633,526
Total FTEs
157 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Parks and Recreation – General Fund
PARKS and RECREATION – ADMINISTRATION
Overview
The Parks and Recreation Administration Division is responsible for program registrations, processing fees
and making deposits, coordinating facility reservations, grant writing and management for the department, responding to all phone, walk-in and email inquiries, and clerical and organizational support to the entire department. Additionally, this division provides administrative support to the Parks and Recreation Advisory Board.
Significant Changes
• The increase in personnel costs is related to rate adjustments resulting from an implemented class and compensation study, and annual pay adjustments for eligible employees in FY 2024.
• The increase in O&M is related to outside professional services to develop a trails master plan.
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Parks & Recreation Director 1.00 1.00 1.00 -
Parks & Recreation Deputy Director 1.00 1.00 1.00 -
Office Specialist 1.00 1.00 1.00 -
Total FTEs 3.00 3.00 3.00 -
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Personnel 343,184 344,730 396,814 52,084
Operations & Maintenance 86,220 131,191 167,916 36,725
Total Expenditures 429,404 475,921 564,730 88,809
Town of Oro Valley FY 2023/24 Adopted Budget 158
Department Budgets | Parks and Recreation – General Fund
PARKS and RECREATION – PARKS MANAGEMENT
Overview
The Parks Maintenance Division is responsible for janitorial services, turf management, landscape
maintenance and property upkeep for all parks, natural trails, and bicycle/pedestrian oasis facilities. Parks
Maintenance is also responsible for the landscape maintenance at the Town Hall campus.
Significant Changes
• The increase in personnel is related to: 1) a new parks maintenance worker II (1.0 FTE) and a new part-time park monitor (0.48 FTE); 2) rate adjustments resulting from an implemented class and compensation study; 3) annual pay adjustments for eligible employees
• The increase in O&M is related to cost increases for field supplies, water & sewage, and increased on-call maintenance services.
• The capital outlay is new one-time equipment purchases and park improvements at Honey Bee Canyon.
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Parks Maintenance Superintendent 1.00 1.00 1.00 -
Parks Maintenance Supervisor 1.00 1.00 1.00 -
Parks Maintenance Worker III 1.00 1.00 1.00 -
Parks Maintenance Worker II 2.00 2.00 3.00 1.00
Parks Maintenance Worker I 5.00 6.00 6.00 -
Park Monitor 0.96 1.44 1.92 0.48
Total FTEs 10.96 12.44 13.92 1.48
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Personnel 589,548 699,493 921,831 222,338
Operations & Maintenance 641,392 665,550 760,950 95,400
Capital Outlay 101,495 132,000 179,200 47,200
Total Expenditures 1,332,435 1,497,043 1,861,981 364,938
159 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Parks and Recreation – General Fund
PARKS and RECREATION – RECREATION & CULTURE
Overview
The Recreation and Culture Division is responsible for providing recreational programs, activities, classes,
hikes, and special events for all ages, as well as ball field management and contracts. It is also responsible
for management of all town historic and cultural properties, such as Steam Pump Ranch. Additionally, this
division is responsible for implementation and follow-through of master plans for town historic sites and
cultural resources.
Significant Changes
• The recreation & culture manager was reclassified to a recreation facility manager, and a recreation leader position was reclassified to a recreation supervisor in FY 2023
• The increase in personnel costs is due to the above-mentioned reclassifications, rate adjustments resulting from an implemented class and compensation study, and annual pay adjustments for eligible employees
• Operations & Maintenance increased due to contract programming instructors and special event
expenditures.
• The capital outlay is primarily the Steam Pump Ranch BBQ & bunk house capital improvement project that is carried over from FY2023 and funded out of the Grants and Contributions Fund. Capital outlay also includes minor assets and equipment for the archery range and Steam Pump Ranch.
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Recreation Facility Manager - - 1.00 1.00
Recreation & Culture Manager 1.00 1.00 - (1.00)
Assistant Recreation Manager 2.00 2.00 2.00 -
Recreation Leader 1.95 1.95 0.95 (1.00)
Recreation Supervisor - - 1.00 1.00
Recreation Aide 1.75 1.75 1.75 -
Total FTEs 6.70 6.70 6.70 -
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Personnel 355,050 390,091 418,600 28,509
Operations & Maintenance 151,856 211,150 279,800 68,650
Capital - 15,000 691,718 676,718
Total Expenditures 506,906 616,241 1,390,118 773,877
Town of Oro Valley FY 2023/24 Adopted Budget 160
Department Budgets | Parks and Recreation – General Fund
PARKS and RECREATION – AQUATICS
Overview
The Aquatics Division is responsible for the safe operation, maintenance, and management of the Oro Valley
Aquatic Center. This facility includes an Olympic-sized swimming pool, a 25-yard pool, a splash pad for
children and other family-friendly amenities. The facility serves as one of Southern Arizona's premier,
competition-level facilities.
Significant Changes
• The increase in personnel is related to rate adjustments resulting from an implemented class and compensation study, and annual pay adjustments for eligible employees in FY 2024.
• The increase in O&M is related to utilities, supplies, and building maintenance.
• Capital outlay is a replacement of a commercial grade vacuum.
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Aquatics Manager 1.00 1.00 1.00 -
Assistant Aquatics Manager 1.00 1.00 1.00 -
Senior Office Specialist 1.00 1.00 1.00 -
Lifeguard Supervisor 2.25 2.25 2.25 -
Shift Leader 0.96 0.96 0.96 -
Facility Attendant 4.80 5.12 5.12 -
Fitness Instructor 0.48 0.96 0.96 -
Lifeguard/Swim Instructor 9.88 9.88 9.88 -
Total FTEs 21.37 22.17 22.17 -
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Personnel 787,413 884,957 1,122,929 237,972
Operations & Maintenance 370,216 332,000 373,000 41,000
Capital Outlay 34,578 9,000 25,000 16,000
Total Expenditures 1,192,207 1,225,957 1,520,929 294,972
161 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Parks and Recreation - Community Center Fund
COMMUNITY CENTER FUND
Overview
This fund is used to manage the operations of the Town’s Community Center, golf, food & beverage, and tennis facilities. Revenues include a dedicated 0.5% sales tax, as well as revenues from golf, tennis, food and beverage, fitness, and recreation activities. Expenditures include personnel, operating and capital
improvement costs for the facilities. Golf, as well as food and beverage, are managed by an outside contractor.
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Recreation Facility Manager 1.00 1.00 1.00 -
Assistant Recreation Manager 1.00 1.00 1.00 -
Senior Office Specialist 1.00 1.00 1.00 -
Recreation Supervisor 0.75 0.75 1.00 0.25
Custodian 0.48 0.48 0.48 -
Facility Attendant 4.25 4.72 4.72 -
Aquatics Shift Leader 1.58 1.58 1.58 -
Lifeguard Supervisor - 0.75 0.75 -
Lifeguard 3.65 3.65 3.65 -
Recreation Leader 0.96 0.96 0.96 -
Recreation Aide 4.88 4.88 4.88 -
Fitness Instructor 2.00 2.00 2.00 -
Total FTEs 21.55 22.77 23.02 0.25
FY 2022 FY 2023 FY 2024
Expenditures and Other Financing Uses Actual Budget Budget Change
Personnel 891,869 920,274 1,114,639 194,365
Operations & Maintenance 4,839,345 5,296,236 5,294,659 (1,577)
Capital Outlay 139,003 2,666,700 1,820,500 (846,200)
Debt Service 135,678 202,682 210,684 8,002
Other Financing Uses 313,427 4,085,380 1,717,203 (2,368,177)
Total Expenditures 6,319,322 13,171,272 10,157,685 (3,013,587)
FY 2022 FY 2023 FY 2024
Revenue Sources Actual Budget Budget Change
Local Sales Taxes 3,535,507 3,477,236 3,726,016 248,780
Charges for Services 5,964,727 4,868,049 5,785,386 917,337
Miscellaneous 2,753 162,050 197,050 35,000
Total Revenues 9,502,986 8,507,335 9,708,452 1,201,117
Town of Oro Valley FY 2023/24 Adopted Budget 162
Department Budgets | Parks and Recreation - Community Center Fund
Significant Changes
• The increase in personnel costs is related to a reclassification of a recreation supervisor to full-time, rate adjustments resulting from an implemented class and compensation study, and annual pay adjustments for eligible employees in FY 2024.
• Capital Outlay is related to various improvements to the Community Center and capital projects such as ADA improvements, golf course improvements, and Vistoso Trails Nature Preserve improvements.
• Debt service is related to capital leases for fitness and golf equipment.
• Other financing uses in FY 2023 included a transfer to the Capital Fund for the golf irrigation project.
163 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Police
POLICE
Overview
The Oro Valley Police Department is dedicated to courageous and selfless service in preventing crime, building trust and enhancing quality of life for our community.
The Oro Valley Police Department (OVPD) embodies a community policing philosophy and guides all staff toward embracing this throughout the entire organization. Personnel are trained to deliver a high level of service that meet our community’s expectations. OVPD allows our staff to maintain professional certifications and focuses on developing the skills, abilities, knowledge, and talents to continue exceptional services. OVPD thoroughly investigates all complaints against its employees to preserve public confidence through our willingness to oversee and control the actions of our employees. In Oro Valley, community policing is the foundation of all our programs and initiatives.
Chief of Police
Deputy Chief of Police
COMMUNITYSERVICES
PROPERTY/ID RECORDS
INVESTIGATIVE SERVICES
SCHOOL RESOURCE OFFICERS
COMMUNICATIONS
CRIMINAL INVESTIGATIONS
TASK FORCE
COMMUNITY RESOURCES
PATROL SERVICES TRAFFIC & SPECIAL OPS.
SUPPORT SERVICES FIELD SERVICES
PATROL
MOTOR/TRAFFIC
COMMUNITY ACTION TEAM
K-9 UNIT
DUI
PIMA REGIONAL TEAMS
Professional Development & TrainingOffice of Professional Standards
Town of Oro Valley FY 2023/24 Adopted Budget 164
Department Budgets | Police
The Support Services Division is comprised of Criminal Investigations Unit, Pima Regional Critical Incident
Team, Crime Analyst, Task Force Operations, Property and I.D., School Resource Officers, Community
Resources, Citizen Volunteer Assistants Program, Records, and the Communications Bureau. Support
Services focuses on and analyzes crime trends, efficient resource allocation and technological solutions.
The Field Services Division is comprised of Patrol, Traffic Unit, Community Action Team, K-9 and Pima
Regional assignments. Field Services is responsible for the uniformed patrol functions of the department,
including 24-hour response to the initial investigation of crimes and incidents, traffic enforcement and control,
crash investigations, community policing programs and specialized operations such as SWAT and K-9.
2022/23 Accomplishments
• Multiple vendors use various matrix criteria to identify “The Safest Cities in Arizona.” Oro Valley was
identified as: #2 by Safewise.com, #7 by Propertyclub.nc, #5 by MovingWaldo.com and #10 by
RamseySolutions.com
• Completed first year with the Pima Regional Critical Incident Team (PRCIT) and participated in 14
incidents.
• Continued to promote high visibility enforcement deployments to reduce crashes and crimes.
• Awarded funding in the amount of $89,120 from the Governor’s Office of Highway Safety for overtime,
supplies, and equipment.
• Awarded a $223,652 grant from Operation Stonegarden for equipment, overtime, and mileage to combat
illegal contraband / human smuggling and other transnational threats.
• Expanded department staff health & wellness program, including fitness incentives, education on nutrition
and Blue Key project anonymous counseling
• Completed more than 4,600 hours of advanced officer training, including CPR, firearms, defensive tactics,
rifle, active shooter, high risk stop, Taser, and stop stick.
• Held 46 active shooter trainings for the community.
• Four command staff members are now Accredited Command Executives through the Arizona Association
Chiefs of Police.
• Renewed a Memorandum of Understanding with Arizona Department of Public Safety regarding
Commercial Vehicle Enforcement for an additional five years.
• Community Resources Unit provided training to local hotels on the topic of sex trafficking so staff can better identify victimization and report accordingly.
• Applied for and received a $17,273 Bureau of Justice grant for ballistic vests for police officers. This was
the highest award OVPD has received from this grant.
• Applied for and received a $42,000 Arizona Criminal Justice Commission grant through the Arizona
Coronavirus Emergency Supplemental Funding program to offset costs of personal protective supplies
purchased to protect OVPD staff during the Covid-19 pandemic.
• The School Resource Officers Unit was recognized by KGUN 9 for their efforts in teaching high school
students about the consequences of distracted driving with Teen Maze.
• Oro Valley Cadet Unit 6873 provided more than 1,200 community service hours assisting with patrols
during football games and traffic control during graduations.
• Implemented virtual court appearance in conjunction with Oro Valley Town Court and IT Department.
• OVPD received two new canines (Vito and Cash), trained in narcotics detection and patrol function.
• In cooperation with United States Border Patrol and the Department of Public Safety, OVPD hosted the
Southern Arizona Multi-Agency Honor Guard Academy.
165 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Police
• The Arizona Department of Public Safety Access Integrity Unit completed an audit for compliance with
the Uniform Crime Reporting requirements. This audit was critical in demonstrating OVPD’s commitment
to compliance with accurate and timely reporting of crime statistics in Oro Valley.
• Citizens Volunteer Assistants Program (CVAP) provided nearly 16,000 hours of service.
• Completed an assessment on property and evidence procedures, best practices, and facilities, as part of
an ongoing effort by OVPD to evaluate and improve operations and promote organizational transparency
to Oro Valley residents
• Awarded a $12,000 grant from the Arizona Auto Theft Authority for equipment.
Council Focus Area(s)
• Public Safety
2023/24 Objectives
• Deploy High Visibility Enforcement (HiVE) in high collision areas to address the increasing volume of
traffic and associated issues in and around Oro Valley roadways.
• Analyze police calls, response and service trends/data and develop a responsible short and long-term
plan to ensure the community continues to receive high quality public safety services.
Performance Measures
FY 2022 Actual FY 2023 Target FY 2023 Result FY 2023 Status FY 2024 Target
HiVE deployments conducted 19 2 per month for total of 24 12
2 per month for total of 24
Priority 1 calls for service average response time 3:55 <5 minutes 3:49 <5 minutes
Priority 2 calls for service average response time 4:41 <8 minutes 4:53 <8 minutes
Target Met Target Not Met Informational Only N/A – New/Previous Measure
Town of Oro Valley FY 2023/24 Adopted Budget 166
Department Budgets | Police
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Police Chief 1.00 1.00 1.00 -
Deputy Police Chief 1.00 1.00 1.00 -
Commander 2.00 2.00 2.00 -
Lieutenant 5.00 5.00 5.00 -
Sergeant 13.00 14.00 14.00 -
Public Relations Sergeant 1.00 - - -
Public Information Officer - 1.00 1.00 -
Detective 7.00 9.00 9.00 -
Lead Police officer 7.00 7.00 7.00 -
Police Officer 66.00 66.00 67.00 1.00
Traffic Investigator 1.00 1.00 1.00 -
Police Telecommunications Manager 1.00 1.00 1.00 -
Telecommunications Supervisor 2.00 2.00 2.00 -
Public Safety Telecommunicator 11.00 12.00 12.00 -
Police Workforce Specialist 0.48 0.48 0.48 -
Police Records Manager - - 1.00 1.00
Police Records Supervisor 1.00 1.00 - (1.00)
Police Records Specialist 5.00 5.00 4.00 (1.00)
Accreditation, Audits, & Inspections Coord.- - 1.00 1.00
Crime Scene Technician Supervisor 1.00 1.00 1.00 -
Police Crime Scene Technician 3.00 3.00 3.00 -
Administrative Services Manager 1.00 1.00 1.00 -
Crime Analyst 1.00 1.00 1.00 -
Police Recruitment Specialist - - 1.00 1.00
Senior Office Specialist 3.00 3.00 2.00 (1.00)
Office Assistant 1.25 1.25 1.25 -
Total FTEs 134.73 138.73 139.73 1.00
167 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Police
Significant Changes
• The decrease in personnel costs is related to changes in benefit deductions and retirement contributions.
• O&M increased due to increased travel & training, field supplies, equipment, hiring and recruitment costs.
• The capital outlay is related to drone equipment, grant funded vehicles and equipment, and furniture needs.
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Personnel 16,549,260 18,986,678 18,858,244 (128,434)
Operations & Maintenance 1,091,774 1,625,544 1,924,347 298,803
Capital Outlay 112,163 245,000 218,500 (26,500)
Total Expenditures 17,753,197 20,857,222 21,001,091 143,869
FY 2022 FY 2023 FY 2024
Revenue Sources Actual Budget Budget Change
Federal Grants 344,128 380,000 981,915 601,915
Intergovernmental 61,209 65,000 90,000 25,000
State Grants 69,413 75,000 75,000 -
Seizures & Forfeitures 102,014 102,000 103,000 1,000
Fingerprinting 9,670 9,000 9,000 -
Report Copying 6,519 6,500 6,500 -
Impound Processing 18,925 19,000 19,000 -
Other 4,114 5,000 18,000 13,000
Total 615,992 661,500 1,302,415 640,915
Town of Oro Valley FY 2023/24 Adopted Budget 168
Department Budgets | Public Works
PUBLIC WORKS
Overview
The Public Works Department is organized into five functional areas: Administration, Highway Fund, Fleet
and Facility Management, Stormwater, and Transit. Administration manages all the department’s activities,
non-fund specific capital projects and capital project management/support to other departments as needed.
Highway Fund, which includes Transportation Engineering and Street Maintenance divisions, are responsible
for road related construction projects as well as routine maintenance. Fleet and Facility Management is
responsible for Town facility maintenance, including repairs and minor renovations, and fleet maintenance for
vehicles and equipment. Stormwater is responsible for management and operation of the Town's Stormwater
Utility. Transit is responsible for management and operation of the Sun Shuttle Dial-a-Ride public transit
service under contract with the Regional Transportation Authority (RTA).
Public Works Director
Assistant Director
ADMINISTRATION HIGHWAY FUND STORMWATER UTILITY
STREET MAINTENANCE
TRANSPORTATION ENGINEERING
TRANSITFLEET AND FACILITY
169 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Public Works
FY 2022 FY 2023 FY 2024
Actual Budget Budget Change
87.12 75.71 78.11 2.40
FY 2022 FY 2023 FY 2024
Expenditures by Fund *Actual Budget Budget Change
General/Capital Fund 4,253,049 6,599,498 7,018,501 419,003
Grants & Contributions Fund 2,504,934 2,504,934
Highway Fund 4,035,539 4,652,189 6,468,791 1,816,602
Stormwater Utility Fund 1,124,429 2,107,024 1,822,461 (284,563)
Total 9,413,017 13,358,711 17,814,687 4,455,976
* Does not include the PAG/RTA Fund or the Roadway Impact Fee Fund
FY 2022 FY 2023 FY 2024
Revenues by Fund*Actual Budget Budget Change
General Fund 1,517,170 1,747,309 3,022,200 1,274,891
Highway Fund 3,999,546 4,163,100 4,432,608 269,508
Stormwater Utility Fund 1,483,587 1,494,000 1,721,500 227,500
Total 7,000,303 7,404,409 9,176,308 1,771,899
* Does not include the PAG/RTA Fund or the Roadway Impact Fee Fund
Total FTEs
Divisions/programs supported by the General Fund include Fleet Maintenance, Facilities Maintenance, Transit and
Administration. Capital Fund supports capacity for two temporary CIP Project Manager positions.
Town of Oro Valley FY 2023/24 Adopted Budget 170
Department Budgets | Public Works - Administration
PUBLIC WORKS - ADMINISTRATION
Overview
Administration is responsible for department management and oversight, funding and program implementation, contract management, and obtaining reimbursement of outside funding for projects from Pima Association of Governments, the Arizona Department of Transportation and the Federal Emergency Management Agency. Administrative staff responsibilities include clerical duties, maintaining the Public Works Department website, records management, and logistical support. In addition, streets maintenance operations
staff are located within Administration and funded by the General Fund to provide working flexibility for involvement with non-highway related CIP and other projects.
2022/23 Accomplishments
• Provided oversight, project management and administration to over 50 planned and 14 unplanned projects
and 1,482 service tasks. This includes design of upcoming construction projects such as the Town Court
expansion and Community Center elevator.
• Enhanced the development, tracking and delivery of the Town’s Capital Improvement Program
o Naranja Park Expansion o Catalina Ridge - Alternative & Construction
o Community Center Elevator ADA - Design o Sierra Wash: Phase I Naranja Construction o Magistrate Court Expansion Design
o Community Center ADA Improvements (Pathway Reconstruction) o MUP La Canada Dr. (Lambert Lane to Naranja Dr) o Tripspark Passenger Portal Enhancements
o RTA - SR77 Wildlife Fencing and Gate Project o Main Town Admin Generator Replacement Construction o Pusch Facility External ADA Access (Construction)
o Pusch Facility Roof & Drain Repairs o CRC Jacuzzi to Outdoor Restroom Design
o CRC Fire Alarm System Upgrade Design
o Pusch Facility Tennis Center Restroom Upgrade Design
• Continued oversight and management of the $25M Parks bond projects and the Steam Pump Ranch historic renovation project.
• Successfully hired a Project Manager/Architect to enhance the department’s facilities project manager abilities. Council Focus Area(s)
• Effective and Efficient Government 2023/24 Objectives
• Expand use of process improvement tools through the Town’s internal OV Peak Performance initiative
171 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Public Works - Administration
Performance Measures
FY 2022 Actual FY 2023 Target FY 2023 Result FY 2023 Status FY 2024 Target
Standard operating procedures developed or reviewed (looking for opportunities to improve processes) 4 2 2
2
Target Met Target Not Met Informational Only N/A – New/Previous Measure
Significant Changes
• The increase in personnel costs is related to rate adjustments resulting from a class and compensation study and annual pay adjustments for eligible employees.
• The increase in O&M is related to ADA sidewalk remodeling at the Town campus funded out of the Grants and Contributions Fund, utilities, insurance costs, and office supplies.
• The capital outlay is for the Westward Look Drive improvements capital project funded out of the Grants and Contributions Fund.
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Director of Public Works & Town Engineer 1.00 1.00 1.00 -
Assistant Director of Public Works 0.75 0.75 0.75 -
Fleet & Facility Division Manager 1.00 1.00 1.00
Streets/Drainage Superintendent 1.00 1.00 1.00 -
Streets & Drainage Crew Leader 2.00 2.00 2.00 -
CIP Project Manager 2.00 2.00 2.00 -
Project Manager 1.00 1.00 -
Heavy Equipment Operator II 5.00 5.00 5.00 -
Administrative Coordinator 1.00 1.00 1.00 -
Senior Office Specialist - - 1.00 1.00
Office Specialist 1.00 1.00 - (1.00)
Total FTEs 14.75 15.75 15.75 -
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Personnel 1,309,493 1,583,756 1,747,887 164,131
Operations & Maintenance 128,438 206,342 367,750 161,408
Capital Outlay - - 845,534 845,534
Total Expenditures 1,437,931 1,790,098 2,961,171 1,171,073
Town of Oro Valley FY 2023/24 Adopted Budget 172
Department Budgets | Public Works – Fleet & Facility Management
PUBLIC WORKS – FLEET & FACILITY MANAGEMENT
Overview
Fleet & Facility Maintenance are programs within the Fleet & Facilities Management Division of the Public Works Department. Facility Maintenance is responsible for building maintenance repairs, energy management, heating, ventilation and air conditioning services, minor renovations, project management, and
contract administration for all the Town’s buildings and facilities. Fleet Maintenance is responsible for preventative maintenance and repair of the Town's fleet of vehicles and
heavy equipment. This is accomplished through the combination of service contracts and staff. Fleet costs for the Town's Water Utility and Stormwater Utility are budgeted in the enterprise funds. 2022/23 Accomplishments
Fleet and Facilities Division logged over 4,700 maintenance tasks and projects.
Notable tasks that are not considered routine maintenance that were completed this year include:
500 Magee Police Substation
• Design of HVAC modifications to support DNA evidence storage.
680 Calle Concordia
• Repaired the wash-rack facility to fully operational and created a preventative maintenance schedule
for it.
• Installed risers and manhole covers on the septic system to facilitate maintenance and inspections.
• Installed a four-post lift in the fleet shop to service large vehicles.
Community and Recreation Center (CRC)
• Men’s & women’s sauna heater units were repaired by the facility maintenance team to extend their
service life.
• Cart barn walls and employee restroom were repaired after a golf cart impact.
• Converted a racquetball court to an open space for Parks and Recreation programming.
• Designed an updated replacement fire detection and alarm system.
• Designed exterior accessible restrooms for construction in place of the men’s jacuzzi.
• Replaced the facility awning coverings.
• Replaced and remodeled the P&R Director's office to increase efficiencies and use of space.
Golf Maintenance Facility
• Installed a landing outside of the shop’s north entrance for safety and compliance.
• Relocated a shipping container storage unit to facilitate servicing of the septic system.
• Installed a riser and manhole cover on the septic system to permit access for maintenance.
Municipal Operations Center (MOC)
• Repaired entry canopy roofing on two buildings.
Pusch Ridge Tennis/Golf Facility
• Anchored the golf swing practice netting according to the Town Engineer’s specifications.
• Designed ADA compliant restrooms for the tennis pro-shop.
Riverfront Park
• Performed permit remediation and code compliance construction activities to obtain a certificate of
occupancy.
Steam Pump Ranch
• Installed an intrusion detection alarm in the Pusch House.
173 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Public Works – Fleet & Facility Management
Tangerine Police Substation
• Replaced water damaged hallway flooring
• Installed a tertiary power dock for the emergency back-up generator to bring the install into code
compliance.
Town Hall
• Building A, Administration
• Fire alarm panel was upgraded to a cellular service connection.
• Began construction of the emergency back-up generator.
• Repaired campus sidewalks.
• Upgraded the interior lighting to LED.
• Removed a wall in the IT Director's Office to increase space.
• Designed a reconfiguration of the front lobby copy room into an office.
• Building B, Courts
• Designed a building expansion to support Court operations and improve safety.
Council Focus Area(s)
• Roads, Water and Town Assets 2023/24 Objectives
• Develop a comprehensive, organization-wide facility space plan concept that maximizes efficiencies and
reflects the best use of Town properties for the future
• Increase cost effectiveness by maintaining, repairing, and improving aging Town facilities
• Complete necessary routine maintenance tasks to Town equipment and vehicles
Performance Measures
FY 2022
Actual
FY 2023
Target
FY 2023
Result
FY 2023
Status
FY 2024
Target
Number of facility tasks completed 2,287 NA* 2,347 NA*
Total cost per mile for vehicle repair and maintenance $0.29 $0.65 $0.27 $0.65
Operations & maintenance expenditures per square foot of buildings maintained $6.29 $7.00 $4.68 $7.00
Number of fleet tasks completed 2,565 NA* 2,370 NA*
Cost per mile to maintain transit vehicles (repair & fuel only) $0.17 $0.50 $0.16 $0.50
*There is no target. Number of tasks completed is determined via service requests and may vary based on demand.
Target Met Target Not Met Informational Only N/A – New/Previous Measure
Town of Oro Valley FY 2023/24 Adopted Budget 174
Department Budgets | Public Works – Fleet & Facility Management
Significant Changes
• The increase in personnel costs is related to rate adjustments resulting from a class and compensation study
and annual pay adjustments for eligible employees.
• The increase in O&M is related to repair and maintenance costs for buildings and vehicles.
• Capital outlay reflects projects associated with the Town’s facility maintenance program.
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Facilities Maintenance Supervisor 1.00 1.00 1.00 -
Fleet Maintenance Supervisor 1.00 1.00 1.00 -
Facilities Maintenance Technician 3.00 3.00 3.00 -
Fleet Maintenance Mechanic III 2.00 3.00 3.00 -
Fleet Control Specialist 1.00 - - -
Fleet Attendant 1.00 1.00 1.00 -
Total FTEs 9.00 9.00 9.00 -
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Personnel 548,896 674,363 719,346 44,983
Operations & Maintenance 2,328,500 2,343,700 2,370,750 27,050
Capital Outlay 37,268 170,000 245,000 75,000
Total Expenditures 2,914,664 3,188,063 3,335,096 147,033
175 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Public Works – Highway Fund
PUBLIC WORKS – HIGHWAY FUND
Overview
Within the Highway Fund, Public Works is responsible for managing the design and construction of roadway projects, issuing right-of-way permits, developing annual and long-term schedules for surface treatments on town streets, as well as maintaining and operating the Town's traffic signs, striping, intersection signals and
lights. In addition, Public Works is responsible for street maintenance, including landscape maintenance,
pavement repair, storm readiness and clean-up. The personnel for this work responsibility is located within Administration; however, all materials, equipment and consumables are located within this fund/area. 2022/23 Accomplishments
Between transportation and streets maintenance, over 3,600 tasks were completed, including:
• La Cañada Drive mill/overlay from Tangerine Road to Moore Road
• Shannon Road pavement reconstruction from Lambert Lane to Naranja Drive
• Naranja Drive HAWK signal in front of Ironwood Ridge High School
• Oracle Road wildlife fence (RTA Project)
• Westward Look Drive pavement reconstruction
• La Cañada Drive multi-use pathway
• Naranja Drive multi-use pathway – secured RTA funding and initiated IGA process with Arizona Department of Transportation
• Annual main line striping
• Pavement management: applied various pavement preservation treatments to 75 lane miles
• Road overall condition index (OCI) of 76.84
• Completion of quarterly and bi-annual arterial, collector and residential sweeping
• Completion of drainage improvements to Calle Buena Vista low water crossings as well as Hardy Rd. @ Carmack Wash crossing
• Completion of more than 25 pavement repairs
• Completion of more than 146 sidewalk repairs
• Over 23.8 miles of crack sealing surface treatments
• Maintained essential service levels within Town rights of way, averaging only two Arizona Department of Corrections (ADC) personnel in addition to subsidizing with outside contractor/vendors.
• Addressed all non-ADA compliant parking signs within the Town’s parking lots.
• Transportation Art by Youth (TABY) project oversight
• Project Management: o Steam Pump Ranch Garage Building rehabilitation
o Steam Pump Ranch BBQ and Bunkhouse Buildings rehabilitation
o Community Center tennis court reconstruction o Community Center ADA ramp
o Community Center overflow parking lot
Town of Oro Valley FY 2023/24 Adopted Budget 176
Department Budgets | Public Works – Highway Fund
Council Focus Area(s)
• Roads, Water and Town Assets 2023/24 Objectives
• Maintain an Overall Condition Index (OCI) rating of 76 for all arterial paved streets
• Participate in and support the Regional Transportation Authority’s (RTA) effort to facilitate voter reauthorization of RTA Next by ensuring Oro Valley’s long-term transportation needs are fairly represented.
Performance Measures
FY 2022 Actual FY 2023 Target FY 2023 Result FY 2023 Status FY 2024 Target
Overall Condition Index rating for all paved streets 77.76 76 76.8 76
Percent of pavement crack sealed annually throughout town 7.54% 20% 13.7%* 20%
Road rehabilitation expenditures per paved lane mile $20,000 $25,000 $26,000 $25,000
Percentage of crosswalks, legends and symbols restriped throughout town 31% 50% 32%* 50%
Percentage of roads restriped throughout town 38% 50% 46%* 50%
*Both lack of ADC crews and material cost negatively impacted the department’s ability to meet this target.
Target Met Target Not Met Informational Only N/A – New/Previous Measure
177 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Public Works – Highway Fund
FY 2022 FY 2023 FY 2024
Actual Budget Budget Change
26.75 12.00 12.00 -
FY 2022 FY 2023 FY 2024
Expenditures by Program Actual Budget Budget Change
Transportation Engineering 3,711,481 4,192,089 5,719,291 1,527,202
Street Maintenance 324,058 460,100 749,500 289,400
Total 4,035,539 4,652,189 6,468,791 1,816,602
FY 2022 FY 2023 FY 2024
Revenue Sources Actual Budget Budget Change
HURF Gas Taxes 3,979,751 4,127,100 4,334,608 207,508
Licenses and Permits 28,838 25,000 25,000 -
Interest Income (16,303) 8,000 70,000 62,000
Miscellaneous 7,260 3,000 3,000 -
Total 3,999,546 4,163,100 4,432,608 269,508
Total FTEs
Town of Oro Valley FY 2023/24 Adopted Budget 178
Department Budgets | Public Works – Highway Fund
PUBLIC WORKS – TRANSPORTATION ENGINEERING
(HIGHWAY FUND)
Overview
Transportation Engineering is responsible for managing the design and construction of roadway projects. While most large projects are designed by consultants, Public Works has a small, in-house design team for
smaller projects. Transportation Engineering also issues permits for all activity within the Town's right-of-way, develops annual and long-term schedules for surface treatments on Town streets, and maintains and operates the Town's traffic signals, roadway signs and pavement markings.
Significant Changes
• The increase in capital costs is related to the pavement preservation program.
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Engineering Division Manager 1.00 1.00 1.00 -
Senior Civil Engineer 1.00 1.00 1.00 -
Senior Civil Engineering Tech 3.00 3.00 3.00 -
Civil Engineer/Project Manager 1.00 1.00 1.00 -
Civil Engineer Designer 1.00 1.00 1.00 -
Senior Traffic Technician 1.00 1.00 1.00 -
Traffic Technician 1.00 1.00 1.00 -
Traffic Signs/Markings Crew Leader 1.00 1.00 1.00 -
Traffic Signs/Markings Worker 1.00 1.00 1.00 -
Senior Office Specialist 1.00 1.00 1.00 -
Total FTEs 12.00 12.00 12.00 -
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Personnel 1,175,502 1,202,574 1,262,861 60,287
Operations & Maintenance 280,329 370,515 369,430 (1,085)
Capital Outlay 2,255,650 2,619,000 4,087,000 1,468,000
Total Expenditures 3,711,481 4,192,089 5,719,291 1,527,202
179 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Public Works – Highway Fund
PUBLIC WORKS – STREET MAINTENENACE
(HIGHWAY FUND)
Overview
Street maintenance is responsible for maintaining the Town's streets and drainage ways. Personnel
associated with this division are budgeted in administration.
Significant Changes
• The increase in O&M is related to street maintenance material costs.
• The capital outlay is a heavy-duty truck and general operating equipment.
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Operations & Maintenance 324,058 453,100 634,500 181,400
Capital Outlay - 7,000 115,000 108,000
Total Expenditures 324,058 460,100 749,500 289,400
Town of Oro Valley FY 2023/24 Adopted Budget 180
Department Budgets | Public Works – Stormwater Utility
PUBLIC WORKS – STORMWATER UTILITY
Overview
The Stormwater Utility enterprise is a division within the Public Works Department. The Stormwater Utility is responsible for federally mandated compliance with the Clean Water Act, meeting all surface water flow
quality and quantity issues, including the Town's stormwater management plan, floodplain and erosion hazard management and support of all other Town programs that are impacted by storm events. The Stormwater Utility also coordinates with federal, state and local government agencies with regard to floodplain issues and storm preparedness of this community. 2022/23 Accomplishments
• Updated the Pima County Regional Flood Control District and Oro Valley Watershed Management intergovernmental agreement
• Completed the 2023/24 Stormwater Utility Management Rate Analysis Report
• Developed and implemented an Arizona Department of Environmental Quality – stormwater runoff water quality sampling process
• Underwent an Arizona Department of Water Resources – Community Assistance Visit audit
• Continued the successful sandbag program and tree cycle with relocation to a new operating site
• Launched new Stormwater Utility Fee billing and customer engagement portal Projects and programs delivered:
• Sierra Wash at Naranja Drive spillway repair
• Catalina Ridge drainage channel improvements
• Oro Valley Drive sediment removal
• Carmack Wash Tributary near Spring Valley Drive sediment removal
• Mutterer Wash at Greenock Drive sediment removal
• Hardy Road and Northern Avenue culverts sediment removal (4 locations)
• Mutterer/Pusch/Rooney Wash floodplain assessment
• Bangalor Drive erosion control improvements
• Atua Place erosion control improvements
• Calle Buena Vista erosion control improvements
• Carmack Wash at Hardy Road erosion control improvements
• El Conquistador Golf Course irrigation replacement
• El Conquistador Golf Course pathway improvements
• Vistoso Preserve watershed analysis Council Focus Area(s)
• Roads, Water and Town Assets
• Financial Stability and Sustainability
2023/24 Objectives
• High-quality and well-maintained Town assets, including streets, infrastructure, and facilities
• Identify and implement strategies to reduce downstream watershed pollution emanating from Town washes.
• Continue to align the annual budget and associated work plans with conservatively forecasted revenues
181 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Public Works – Stormwater Utility
Performance Measures
FY 2022 Actual FY 2023 Target FY 2023 Result FY 2023 Status FY 2024 Target
Percentage of Stormwater assets inspected annually (20% required by law) 25.6% 20% 20% 20%
Maintain cash reserves in the Stormwater Utility Fund of at least 15% of the collected annual stormwater fees * 49.8% 15% 38.1% 15%
Conduct annual rate review by October 30 Sep 16, 2021 Oct. 30, 2022 Sep. 15, 2022
Oct. 30, 2023
*Calculations do not include cash reserves balance dedicated to future vehicle equipment replacement.
Target Met Target Not Met Informational Only N/A – New/Previous Measure
Town of Oro Valley FY 2023/24 Adopted Budget 182
Department Budgets | Public Works – Stormwater Utility
Significant Changes
• The increase in personnel costs is related to rate adjustments resulting from an implement class and
compensation study in FY 2023 and annual pay adjustments for eligible employees in FY 2024.
• The decrease in O&M is due to reduced cost for outside professional services in FY 2024
• Capital outlay relates to Townwide drainage and CIP projects.
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Assistant Director of Public Works 0.25 0.25 0.25 -
Stormwater Utility Division Manager 1.00 1.00 1.00 -
Senior Stormwater Engineer 1.00 1.00 1.00 -
Streets & Drainage Supervisor 1.00 1.00 1.00 -
Stormwater Utility Project Manager 1.00 - - -
Stormwater Utility Inspector 1.00 1.00 1.00 -
GIS Analyst 1.00 1.00 1.00 -
Heavy Equipment Operator II 3.00 3.00 3.00 -
Senior Office Specialist 1.00 1.00 1.00 -
Stormwater Intern 0.48 0.48 0.48 -
Total FTEs 10.73 9.73 9.73 -
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Personnel 810,920 826,266 947,302 121,036
Operations & Maintenance 313,509 396,245 369,159 (27,086)
Capital Outlay 884,513 506,000 (378,513)
Total Expenditures 1,124,429 2,107,024 1,822,461 (284,563)
FY 2022 FY 2023 FY 2024
Revenue Sources Actual Budget Budget Change
Charges for Services 1,495,179 1,492,500 1,501,500 9,000
Federal Grants - - 210,000 210,000
State Grants 16,906 - - -
Miscellaneous 2,774 - - -
Interest Income (31,272) 1,500 10,000 8,500
Total Revenues 1,483,587 1,494,000 1,721,500 227,500
183 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Public Works – Transit Services
PUBLIC WORKS – TRANSIT SERVICES
Overview
Transit Services facilitates partnerships and coordinates transportation services among public and private agencies, serving Oro Valley to improve mobility for community residents. Transit Services has developed a long-term partnership with the Regional Transportation Authority (RTA) to improve the transportation network
and maximize transportation options available to the community at the lowest possible cost. Transit Services is proud to operate the regional Sun Shuttle Dial-a-Ride service under contract with the RTA and is committed to providing high quality transit alternatives and planning for the future.
2022/23 Accomplishments
• Set a new annual ridership record of 61,447, an increase of 9.7% over last year.
• With the support of the Innovation & Technology Department, improved passenger on-line capabilities with the scheduled acquisition of the Passenger Portal module of TripSpark. Passenger Portal module installed and operational.
• Awarded Arizona Department of Transportation (ADOT) grants for eight replacement vehicles
• Revised Fleet Maintenance Plan in coordination with the Town Fleet Manager resulting in major improvements in preventative maintenance.
• Participated in the RTA Transit Working Group committee and Citizens Advisory Committee Transit Working Group subcommittee, helping to make decisions on regional transportation improvements and future regional and local transportation planning and budgeting. Council Focus Area(s)
• Roads, Water and Town Assets
• Financial Stability and Sustainability
2023/24 Objectives
• Partner with the RTA in evaluating long-term transportation needs for future RTA continuation, ensuring Oro Valley’s needs are fairly represented
• Continue to align the annual budget and associated work plans with conservatively forecasted revenues
Performance Measures
FY 2022 Actual FY 2023 Target FY 2023 Result FY 2023 Status FY 2024 Target
Percentage of requested reservations fulfilled 90% 90% 82.4%
90%
Total cost per passenger trip $31.82 <$35.00 $30.95 <$35.00
Farebox recovery rate 0.0%* NA* 0.0%* NA*
*COVID-19 ridership drop and impact. RTA stopped the collection of fares. The farebox recovery ratio (also called fare recovery ratio, fare recovery rate or other terms) of a passenger transportation system is the fraction of operating expenses which are met by the fares paid by passengers.
Target Met Target Not Met Informational Only N/A – New/Previous Measure
Town of Oro Valley FY 2023/24 Adopted Budget 184
Department Budgets | Public Works – Transit Services
Significant Changes
• The increase in personnel costs is related to: 1) additional hours for transit drivers and dispatchers (1.40 FTE); 2) a new transit supervisor position (1.00 FTE); 3) rate adjustments resulting from a class and compensation study; 4) annual pay adjustments for eligible employees
• Capital outlay relates to transit van replacements, which are 80% funded with ADOT grants
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Transit Administrator - - 1.00 1.00
Transit Supervisor - - 1.00 1.00
Senior Transit Crew Leader 1.00 1.00 - (1.00)
Transit Crew Leader 1.00 1.00 1.00 -
Transit Specialist 1.11 1.10 1.10 -
Transit Dispatcher 2.11 2.58 2.73 0.15
Transit Driver 19.71 22.60 23.85 1.25
Office Assistant 0.96 0.95 0.95 -
Total FTEs 25.89 29.23 31.63 2.40
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Personnel 1,267,088 1,383,972 1,612,768 228,796
Operations & Maintenance 61,043 139,256 84,600 (54,656)
Capital Outlay 10,254 98,109 1,529,800 1,431,691
Total Expenditures 1,338,385 1,621,337 3,227,168 1,605,831
FY 2022 FY 2023 FY 2024
Revenue Sources Actual Budget Budget Change
RTA Reimbursement 1,518,846 1,530,000 1,774,000 244,000
Federal Grants 275,969 - 1,204,800 1,204,800
State Grants 9,060 137,309 3,400 (133,909)
Farebox (1,676) 80,000 40,000 (40,000)
Total Revenues 1,802,199 1,747,309 3,022,200 1,274,891
185 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Water Utility
WATER UTILITY
Overview
The primary function of the Water Utility is the protection of public health and safety through the production and efficient delivery of water that meets and/or exceeds water quality standards. Responsibilities include regulatory compliance, customer service, promoting water conservation, generating customer billings,
collection of utility revenues, efficient use of available water resources, planning for future water resource requirements, and coordination with the development community. 2022/23 Accomplishments
• Delivered a combined total of 2.99 billion gallons of water to customers.
• 47% of the total deliveries were water supplies other than groundwater, including: o 851 million gallons of CAP water
o 567 million gallons of reclaimed water o 1.57 billion gallons of groundwater
• Utilized full allocation of 10,305 acre feet of CAP water for potable use and recharge.
• Took 4,732 water quality samples with all results meeting regulatory requirements.
• Added 155 new metered connections for an estimated total customer base of 21,269 connections.
• Developed and delivered four quarterly customer newsletters titled Behind the Meter.
• The WaterSmart customer portal has 7,300 registered users and has provided over 8,000 leak alerts directly to our customers.
• Implemented a new customer information system to improve our customers experience by providing additional payment options and other self-help tools. The customer service portal currently has 7,000
registered users.
• Began construction of the independent portion of the Northwest Recharge Recovery and Delivery System
(NWRRDS).
• Implementation of a new Adult Detention Center (ADC) inmate work program.
• Rehabilitated three groundwater production wells.
• Completed the design of the independent NWRRDS Reservoir & Booster Station.
Water Utility Director
ADMINISTRATION ENGINEERING & PLANNING OPERATIONS
Town of Oro Valley FY 2023/24 Adopted Budget 186
Department Budgets | Water Utility
Council Focus Area(s)
• Roads, Water and Town Assets
2023/24 Objectives
• Develop and evaluate strategies to reduce the use of potable water in OV (I.e., golf courses, parks,
residential, etc.).
• Identify and evaluate potential new water sources for the Town.
• Begin phased construction of the Northwest Recharge Recovery and Delivery System project.
Performance Measures
FY 2022 Actual FY 2023 Target FY 2023 Result FY 2023 Status FY 2024 Target
Groundwater pumped 4,997 AF < 5,500 AF 4,826 AF < 5,500 AF
CAP water delivered 2,670 AF > 2,500 AF 2,612 AF > 2,500 AF
Total customer contacts in WaterSmart
portal 6,700 7,000 7,300 7,600
Years’ worth of long-term storage credit reserves (at 100% utilization) 3.10 3.35 3.35 3.60
Cash reserves in the Water Utility operating
fund as % of combined budget for personnel, O&M and debt service 52% 50% 40% 40%
Debt service coverage (annual net
operating revenue divided by annual debt service) for water revenue bonds 2.24% 2.46% 3.46% 4.39%
Target Met Target Not Met Informational Only N/A – New/Previous Measure
187 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Water Utility
FY 2022 FY 2023 FY 2024
Actual Budget Budget Change
40.48 40.48 40.48 -
FY 2022 FY 2023 FY 2024
Expenditures by Division Actual Budget Budget Change
Administration 7,691,098 8,393,427 9,829,123 1,435,696
Engineering and Planning 6,113,332 6,508,288 8,022,087 1,513,799
Operations 4,936,466 5,816,595 5,962,932 146,337
Total 18,740,896 20,718,310 23,814,142 3,095,832
FY 2022 FY 2023 FY 2024
Revenue Sources Actual Budget Budget Change
Charges for Services 3,267,981 3,224,000 3,200,500 (23,500)
Interest Income (350,975) 100,000 100,000 -
Miscellaneous 688,140 - - -
Water Sales 14,406,542 15,383,000 16,060,000 677,000
Transfer in from Grants Fund - 5,378,000 - (5,378,000)
Total 18,011,688 24,085,000 19,360,500 (4,724,500)
Total FTEs
Town of Oro Valley FY 2023/24 Adopted Budget 188
Department Budgets | Water Utility
WATER UTILITY – ADMINISTRATION
Overview
The Administration Division is responsible for the overall management of the Utility, including customer service, water utility billings, collection of water revenues, administration of the department's budget,
implementation of water rates, fees and charges, water conservation, water resource planning and strategic planning.
Significant Changes
• The increase in personnel costs is related to annual pay adjustments for eligible employees in FY 2024.
• O&M costs increased primarily due to Town-wide indirect cost allocations of supporting services.
• The decrease in debt service is due to the payoff of the Series 2012 Senior Lien debt.
• The increase in other financing uses reflects transfers out to the Water Impact Fee Fund for the Northwest Recharge, Recovery, and Delivery System (NWRRDS) partnered CIP project.
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Water Utility Director 1.00 1.00 1.00 -
Water Utility Administrator 1.00 1.00 1.00 -
Senior Office Specialist 1.00 1.00 1.48 0.48
Water Utility Analyst 1.00 1.00 1.00 -
Customer Service Specialist 4.00 4.00 4.00 -
Customer Service Representative 0.48 0.48 - (0.48)
Water Conservation Specialist 1.00 1.00 1.00 -
Total FTEs 9.48 9.48 9.48 -
FY 2022 FY 2023 FY 2024
Expenditures and Other Financing Uses Actual Budget Budget Change
Personnel 631,894 887,740 904,484 16,744
Operations & Maintenance 1,760,112 2,181,352 2,397,891 216,539
Capital Outlay 235,083 18,640 - (18,640)
Debt Service 4,767,383 4,643,255 3,644,440 (998,815)
Other Financing Uses 296,626 662,440 2,882,308 2,219,868
Total Expenditures 7,691,098 8,393,427 9,829,123 1,435,696
189 Town of Oro Valley FY 2023/24 Adopted Budget
Department Budgets | Water Utility
WATER UTILITY – ENGINEERING and PLANNING
Overview
The Engineering and Planning Division is responsible for providing engineering support for the Operations
Division as well as managing the capital improvement program. Additional responsibilities include new
development plan review, construction inspection and regulatory compliance, and the maintenance and
updating of GIS.
Significant Changes
• The increase in personnel costs is related to annual pay adjustments for eligible employees in FY 2024
• The increase in O&M is related to CAP water wheeling and CAP water delivery charges
• Capital outlay is related to planned CIP projects for FY 2024
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Engineering Division Manager 1.00 1.00 1.00 -
Project Manager 1.00 1.00 1.00 -
Senior Engineering Associate 1.00 1.00 1.00 -
Construction Inspector 2.00 2.00 2.00 -
Civil Engineering Technician 1.00 1.00 1.00 -
Total FTEs 6.00 6.00 6.00 -
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Personnel 566,939 651,291 711,920 60,629
Operations & Maintenance 4,172,029 4,706,997 5,560,167 853,170
Capital Outlay 1,374,364 1,150,000 1,750,000 600,000
Total Expenditures 6,113,332 6,508,288 8,022,087 1,513,799
Town of Oro Valley FY 2023/24 Adopted Budget 190
Department Budgets | Water Utility
WATER UTILITY – OPERATIONS
Overview
The Operations Division oversees the operation and maintenance of all potable and reclaimed water
production and distribution facilities, to include wells, boosters, reservoirs, metering stations, water mains, fire
hydrants and valves. Additional responsibilities include meter installations, commercial meter testing, water
quality testing, backflow prevention, construction of minor water main projects and oversight of the Advanced
Metering Infrastructure system, disinfection systems and security systems.
Significant Changes
• The increase in personnel costs is related to related to annual pay adjustments for eligible employees and an implemented class and compensation study
• The increase in O&M is primarily related to equipment repair and maintenance
• The capital outlay is related to equipment, meter purchases, and two vehicles
FY 2022 FY 2023 FY 2024
Personnel Actual Budget Budget Change
Water Operations Manager 1.00 1.00 1.00 -
Water Operations Superintendent 1.00 1.00 1.00 -
Water Control Systems Supervisor 1.00 1.00 1.00 -
Prod. & Meter Operations Superint.1.00 1.00 - (1.00)
Water Operations Supervisor 3.00 3.00 4.00 1.00
Instrumentation Control Specialist 1.00 1.00 2.00 1.00
Meter Operations Supervisor 1.00 1.00 - (1.00)
Water Utility Operator III 7.00 7.00 7.00 -
Water Utility Operator II 5.00 5.00 5.00 -
Water Utility Operator I 4.00 4.00 4.00 -
Total FTEs 25.00 25.00 25.00 -
FY 2022 FY 2023 FY 2024
Expenditures Actual Budget Budget Change
Personnel 2,034,905 2,114,033 2,254,405 140,372
Operations & Maintenance 2,470,198 2,796,912 3,218,735 421,823
Capital Outlay 431,363 905,650 489,792 (415,858)
Total Expenditures 4,936,466 5,816,595 5,962,932 146,337
191 Town of Oro Valley FY 2023/24 Adopted Budget
CAPITAL IMPROVEMENT PROGRAM
Program Overview
Projects by Category
Project Descriptions
Town of Oro Valley FY 2023/24 Adopted Budget 192
Capital Improvement Program | Program Overview
Capital Improvement Program (CIP)
Overview Providing infrastructure is a primary function of a local government. Maintaining public safety, town services, parks and recreation facilities, adequate transportation systems, and the community’s quality of life are all heavily dependent on how the Town plans for future infrastructure needs. The Capital Improvement Program (CIP) is a comprehensive, ten-year plan of capital projects that will support the continued growth and development of the town. The CIP is used in implementing the General Plan and supporting the Town’s adopted Strategic Leadership Plan by developing a prioritized schedule of short-range and long-range community capital needs, evaluating projects, and analyzing the community’s ability and willingness to pay for them in the most cost-effective way. The Town uses the CIP as its method in determining future infrastructure requirements and planning the financing of facilities and equipment to maintain the service levels provided to town citizens. The Town identifies capital projects as those which:
• Cost $50,000 or more;
• Have an expected useful life of five or more years; and
• Becomes, or preserves, an asset of the Town
Although fleet replacements do not meet the definition of a capital project, they are a significant expense for the Town, and thus are included in the CIP for planning purposes.
The Town uses the CIP as an avenue of communication to the public. Through the CIP document, residents and
businesses are provided with an accurate and concise view of the Town’s long term direction for capital investment and the Town’s need for stable revenue sources to fund large multi-year capital projects.
CIP Process and Timeline The CIP process began in December. Project requests were submitted, reviewed and analyzed by Finance staff and the Town Manager’s Office. An internal, cross-departmental review and prioritizing of all project requests was completed in order to prepare the proposed ten-year CIP. Meetings convened in February for project presentation and evaluation. The ten-year recommendation was submitted to Council for approval and adoption with the Town’s budget in June. A summary of the process and timeline is provided below: December: CIP request forms provided to department directors February: Department requests due Forms reviewed, cost analysis performed CIP packets distributed Meeting scheduled to present and evaluate project requests February: Meeting scheduled to prioritize projects CIP recommendations finalized May: Budget study sessions to present budget and CIP to Mayor and Council June: Adoption of Tentative Budget and CIP June: Adoption of Final Budget and CIP Project Evaluation Criteria Critical to the selection of the CIP projects are the criteria by which projects are assessed and evaluated. The evaluation criteria guide the review and selection of the projects to be funded. The evaluation criteria areas are as follows:
• Public Health, Safety and Welfare – improves or addresses pressing public health, safety, or welfare need
193 Town of Oro Valley FY 2023/24 Adopted Budget
Capital Improvement Program | Program Overview
• Supports Stated Community Goals – implements or furthers the policies, goals and objectives of the Town’s General Plan, Strategic Plan, or other adopted plan
• Fiscal Impact – economic development impact, efficiency improvement, outside or dedicated funding sources, ongoing operating impact
• Service Level Impact – improves service levels or brings the Town up to a desired service level
• Legal Ramifications – exposure to liability actions, applicable regulations
• Relationship to Other Projects – coordination with and/or impacts on other ongoing or prospective projects The Capital Improvement Program is comprised of six major categories: parks & recreation; public facilities, vehicles & equipment; public safety; stormwater; streets/roads; and water system. Parks & Recreation pertains to projects that construct, maintain, or enhance recreation facilities, parks, multiuse paths, trails, sports fields, the Community Center, and golf courses Public Facilities, Vehicles & Equipment pertains to the renovation of current facilities, construction of new facilities, equipment, and technology needs necessary for the efficient and effective operations of the Town. Public Safety pertains to police stations, training and communication systems related to police operations. Stormwater is related to drainage improvements and flood control projects. Stormwater requirements are mandated by the Federal government in the Clean Water Act and by the Federal Emergency Management Agency. These projects are funded from Stormwater Utility rates and grants. Streets/Roads pertains to projects that maintain and enhance the transportation infrastructure within the Town. These include streets, roads, crosswalks, traffic signals, and right-of-way projects. These projects are funded by the General Fund, Highway User revenues, impact fees, and regional funding such as the Regional Transportation Authority (RTA)
and Pima Association of Governments (PAG). Water System pertains to projects that maintain or enhance to Town’s water infrastructure with the goal of delivering safe, reliable water. Water system projects are primarily funded by water utility rates, fees, and charges, as well as water impact fees.
Capital Improvement Program Summary The cumulative ten-year CIP for the Town of Oro Valley totals $320,594,295 for fiscal years 2023/24 through 2032/33. The graph below shows the allocations by category for the given years:
Town of Oro Valley FY 2023/24 Adopted Budget 194
Capital Improvement Program | Program Overview
The amount allocated for CIP projects in the FY 23/24 budget is $47,771,435. Expenditures are presented on a
budgetary basis rather than cash flow basis. The graph below shows the budget allocations by category. The projects included in the FY 23/24 CIP reflect the needs of the Town based on goals established in both the General Plan and
Strategic Plan. The projects represent a significant investment in the infrastructure of the Town and attempt to meet the needs of the community.
Parks & Recreation$130.2M, 40.6%
Water System$59.1M, 18.4%
Public Facilities, Vehicles & Equipment$51.3M, 16%
Streets/Roads$40.1M, 12.5%
Stormwater$38.6M, 12%
Public Safety
$1.4M, 0.4%
FY 2023/24 -2032/33 CIP by Category
$320.6 Million
195 Town of Oro Valley FY 2023/24 Adopted Budget
Capital Improvement Program | Program Overview
Financing the Capital Improvement Program Over the years, the Town of Oro Valley has financed a substantial portion of capital improvements through operating
revenue and use of cash reserves. The “pay-as-you-go” financing method has been the main method for funding CIP projects in the past. Revenues deemed one-time in nature, such as large commercial and residential permitting and
associated construction sales taxes, are dedicated towards one-time capital projects. Bond financing has also recently been used to advance certain CIP projects. This process allows projects to be built sooner than traditional “pay-as-you-
go”. The following options may be considered when analyzing potential funding sources for CIP projects:
• Pay-as-you-go financing
• Bonds
• Development impact fee ordinances
• Federal and state grants
• Loans
• Certificates of participation
• Lease-purchase agreements
• Improvement districts
• Donations and intergovernmental agreements
• User fees
Parks & Recreation$21.4M, 44.9%
Water System
$14.1M, 29.5%Public Facilities, Vehicles & Equipment$6.4M, 13.4%
Streets/Roads$5.4M, 11.4%
Stormwater
$0.4M, 0.8%
Public Safety$0.1M, 0.2%
FY 2023/24 CIP by Category
$47.8 Million
Town of Oro Valley FY 2023/24 Adopted Budget 196
Capital Improvement Program | Program Overview
Funding for the FY 23/24 CIP is derived from a variety of sources as depicted in the chart below:
The Town has relied heavily on growth-related income, including construction sales taxes and development fees, to fund capital projects. A continuing challenge for the Town is the development of funding sources to supplement this income as the town’s growth slows.
Impact on the Operating Budget The Town of Oro Valley’s operating budget is directly affected by the CIP. When certain types of capital projects are developed and completed, they also have ongoing financial impacts on the Town’s operating budgets. For example, if
the Town were to construct a new park or ball field, the operating budget for the Parks and Recreation Department would increase to include capacity for any new staff, equipment, utilities, supplies, etc. that would be necessary to maintain and operate the new facility. In the FY 2024-2033 CIP, the individual projects include an estimated future operating budget impact if it is possible to identify the cost at this time in the project’s lifecycle. These costs are estimates provided by the professionals in each department that are responsible for the completion of the project. The Town carefully considers these operating costs when deciding which projects move forward in the CIP, as it may not be sustainable for the Town to fund concurrently several large-scale projects that have significant operating budget impacts. Emphasis is placed on the desire for self-sustaining projects with neutral operating impacts.
$0.4M, 0.8%
$2.1M, 4.4%
$2.2M, 4.7%
$2.8M, 5.9%
$3.8M, 8%
$4.4M, 9.2%
$6.1M, 12.7%
$12M, 25.2%
$13.9M, 29.1%
Stormwater Fund
Water Utility Funds
Dedicated Sales Taxes
Vehicle Reserves
HURF Gas Taxes
Grants & Regional Funds
General Fund
Impact Fees
Bond Financing
FY 2023/24 CIP Funding Sources
$47.8 Million
197 Town of Oro Valley FY 2023/24 Adopted Budget
Capital Improvement Program | Program Overview
The table below summarizes the projected annual impact of the FY 23/24 CIP on the Town’s overall operating budget:
Project Impact Impact $ Annually
Community Center Parking Reconstruction & Expansion Annual maintenance costs $14,000
Golf Course Irrigation Water and utility savings ($25,000)
Hydropneumatic Tank Replacements at Boosters Annual maintenance cost savings ($500)
Hydropneumatic Tank Replacements at Wells Annual maintenance cost savings ($500)
MUP Phase I - La Cañada Dr. (Lambert Lane to Naranja Dr) Annual pavement preservation costs $1,260
MUP Phase II - Naranja Dr. (La Cañada Dr to Naranja Park entrance) Annual pavement preservation costs $2,460
Naranja Park Master Plan Implementation Annual operating and maintenance costs $184,400
Vistoso Trails Nature Preserve Improvements Annual operating costs $100,000
Total $276,120
Note: This list represents projects that were approved for funding in FY 23/24 that have a known and quantifiable impact on the Town’s operating budget. For a complete list of funded projects, please see the Project Descriptions section of this document. Capital Improvement Program Summary Projects included in the FY 2023/24 CIP reflect the combined efforts of all Town departments as well as the Town Council
and Oro Valley residents. The plan recognizes the added benefits the projects will bring to the Town, while understanding the fiscal requirements and obligations each of these projects will entail. The CIP is updated annually, and new projects may be included should additional funding sources be identified. The FY 2023/24 CIP attempts to meet the priority needs of the community, at the same time maintaining financial sustainability in future years. The plan as submitted is financially feasible and many of the projects included can be expected to be complete before the end of the fiscal year. As Town priorities and policies change, it is imperative that the CIP remain fluid and undergo continual evaluation to ensure the projects and funding sources are in accordance with the Town Council priorities and policies. The tables and documents provided on the following pages offer an in-depth view into the CIP budget and provide detailed information on the projects and the impact they have on the operating budget.
Fund 2023/24 2024/25 2025/26 2026/27 2027/28
2028/29-
2032/33 Total
General Fund 442,000$ 493,000$ 508,000$ 524,000$ 540,000$ 2,962,000$ 5,469,000$
Highway Fund 4,180,000 4,935,500 14,059,863 5,792,542 2,759,532 14,867,633 46,595,069
Community Center Fund 1,678,000 1,276,300 1,579,000 1,585,000 1,550,000 7,020,000 14,688,300
Capital Fund 22,953,391 9,604,850 23,382,960 23,842,300 7,854,700 27,256,700 114,894,901
PAG/RTA 388,000 2,661,424 - 4,079,016 25,000,000 40,564,000 72,692,440
Roadway Impact Fee Fund - 2,586,676 5,358,000 - - 750,000 8,694,676
Water Utility Fund 2,229,792 1,890,000 2,230,000 2,230,000 2,390,000 6,720,000 17,689,792
Stormwater Utility Fund 365,000 183,420 386,445 300,000 650,000 100,000 1,984,865
Grants Fund 2,985,252 - - - - - 2,985,252
Water Impact Fee/ GPF 11,950,000 4,470,000 8,430,000 6,450,000 3,000,000 - 34,300,000
Parks Impact Fee Fund 600,000 - - - - - 600,000
Total 47,771,435$ 28,101,170$ 55,934,268$ 44,802,858$ 43,744,232$ 100,240,333$ 320,594,295$
Town of Oro Valley FY 2023/24 Adopted Budget 198
Capital Improvement Program | Program Overview
$0.4M, 0.8%
$0.4M, 0.8%
$0.4M, 0.9%
$0.6M, 1.3%
$1.7M, 3.5%
$2.2M, 4.7%
$3M, 6.2%
$4.2M, 8.7%
$12M, 25%
$23M, 48%
Stormwater Utility Fund
PAG/RTA
General Fund
Parks Impact Fee Fund
Community Center Fund
Water Utility Fund
Grants Fund
Highway Fund
Water Impact Fee/ GPF
Capital Fund
FY 2023/24 by Fund
$47.8 Million
199 Town of Oro Valley FY 2023/24 Adopted Budget
Capital Improvement Plan | Projects by Category
CIP Project Listing by Category
* Denotes a project with carryforward funding from the prior year FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 FY 32/33 Grand Total
Parks & Recreation 21,441,089 1,521,300 4,172,660 4,470,000 6,602,800 4,635,000 9,300,000 4,954,000 1,856,000 100,000 59,052,849
ADA/Safety Walkway Concrete Improvements System Wide 150,000 150,000
Artificial Turf Installation at Community Center Entrance 82,500 82,500
Audio System Update 115,000 115,000
Canada Golf Course Pathway Improvements 550,000 550,000
CC Men's Jacuzzi to Outdoor Accessed Restroom 285,000 285,000
CC Parking Lot Reconstruction & Expansion*589,920 589,920
Cloud Lake Sediment Dredging 85,000 85,000
Community Center Elevator*1,612,861 1,612,861
Community Center Exterior Stucco repair and Painting 183,300 183,300
Community Center Fire Alarm System Upgrade*75,000 75,000
Community Center Flat Roof Surface Replacement 198,000 200,000 200,000 200,000 200,000 998,000
Community Center Parking Lot Reconfigure/Resurface - Bond VE 1,400,000 1,400,000
CRC Fitness Exterior Window Replacement 100,000 100,000
CRC Pool Deck and Equipment Renovation 100,000 100,000
CRC Renovation and Construction 600,000 3,000,000 3,000,000 6,600,000
CRC Restaurant Cooler/Freezer Modernization and Floor Repair 65,000 65,000
Equipment Replacement (Golf Maintenance)145,000 81,500 226,500
Event space with shade at CRC tennis/pickleball courts 195,660 195,660
Golf Course Irrigation Phase 2 (Cañada Course)2,000,000 2,000,000
Golf John Deere Tractor Replacement 110,000 110,000
Golf Maintenance - Parking Lot Reconstruction 300,000 300,000
Golf Maintenance Facility Siding Replacement and Exterior Painting 63,000 63,000
Greenmaster Mowers Replacement 125,000 125,000
Greenock Trail Improvements*15,000 15,000
Improved Landscape and Gathering Area at Aquatic Center 330,000 330,000
James D. Kriegh Park - Egleston Road Connection Parking lot 60,000 750,000 810,000
James D. Kriegh Park - North Area Improvements 78,000 975,000 1,053,000
James D. Kriegh Park - North Parking Lot Improvements 375,000 375,000
James D. Kriegh Park - Racquetball/Basketball Court Conversion 22,800 285,000 250,000 557,800
James D. Kriegh Park Field Lighting 30,000 1,500,000 1,530,000
Life Cycle Replacement (Bunkers and Turf Reduction)100,000 100,000
MUP – Phase I - La Cañada Dr. (Lambert Lane to Naranja Dr)*677,590 677,590
MUP – Phase II - Naranja Dr. (La Cañada Dr to 1st Ave)*200,000 200,000
MUP - Phase III – Alignment (CDO wash to James D. Kriegh Park)1,500,000 1,500,000
MUP Big Wash Trailhead Improvements 250,000 250,000
Naranja Park Splashpad, Restroom and Ramada Bond VE 1,500,000 1,500,000
Naranja Park Archery Range - Paved Parking, Lights, Landscape 44,000 550,000 594,000
Naranja Park Asphalt Parking Lot, Roadway and MUP Bond Project VE 4,000,000 4,000,000
Naranja Park Basketball Courts Bond VE 250,000 250,000
Naranja Park Entry Site Improvements 36,000 450,000 486,000
Naranja Park Fields 7 & 8 - Park Bond Project VE 1,900,000 1,900,000
Naranja Park Maintenance Facility 1,200,000 1,200,000
Town of Oro Valley FY 2023/24 Adopted Budget 200
Capital Improvement Plan | Projects by Category
CIP Project Listing by Category
* Denotes a project with carryforward funding from the prior year FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 FY 32/33 Grand Total
Parks & Recreation (continued)
Naranja Park Master Plan Implementation*13,600,000 13,600,000
Naranja Park Pickleball Courts (3) and Shade Structure 330,000 330,000
Naranja Park Ramadas 250,000 250,000
Naranja Park Skate Park expansion Park Bond Project VE 250,000 250,000
OVAC Diving Board and Dive Block Replacement 136,000 136,000
OVAC Olympic Pool Heater Replacement 500,000 500,000
OVAC Pool Replastering 200,000 200,000
OVAC Pump Room Upgrades - Phase Two 78,000 112,000 190,000
Parks Maintenance Toro Reelmaster Mower Replacement 85,000 85,000
Proctor/Lieber House Renovation 1,500,000 1,500,000
Pusch Ridge Facility ADA and Code Compliance*418,718 85,000 503,718
Pusch Ridge Golf Course Improvements 75,000 75,000
Pusch Ridge Golf Course Pathway Bank Protection Improvements 300,000 300,000
Pusch Ridge Golf Course Pavement Preservation 275,000 275,000
Pusch Ridge Tennis Court Lighting Replacement 300,000 300,000
Pusch Ridge Tennis Court Resurfacing 120,000 120,000
Pusch Ridge Tennis Landscape Improvements 250,000 250,000
Pusch Ridge Tennis Renovations Bleachers/Pad/Storage 100,000 100,000
Riverfront Park - Field Lighting Replacement 1,000,000 1,000,000
Riverfront Park - Parking Lot Expansion 60,000 750,000 810,000
Riverfront Park - Playground Renovation 500,000 500,000
Riverfront Park - ramada over sports courts 22,000 275,000 297,000
Steam Pump Ranch - New Northern Entry by Panhandle Stables/Event Space 1,500,000 1,500,000
Steam Pump Ranch - Solar Lighting 71,000 71,000
Steam Pump Ranch - Tack Building 50,000 500,000 550,000
Steam Pump Ranch BBQ & Bunk House Renovations*500,000 500,000
Steam Pump Ranch Farmer's Market Structure Upgrade 100,000 100,000
Vistoso Trails Nature Preserve ADA Restrooms 75,000 75,000
Vistoso Trails Nature Preserve Improvements*255,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 1,155,000
Vistoso Trails NP Maintenance Facility Roof Repair and Security 190,000 190,000
201 Town of Oro Valley FY 2023/24 Adopted Budget
Capital Improvement Plan | Projects by Category
CIP Project Listing by Category
* Denotes a project with carryforward funding from the prior year FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 FY 32/33 Grand Total
Public Facilities, Vehicles & Equipment 6,388,020 5,776,000 3,257,500 3,738,500 3,256,000 3,101,500 3,311,000 3,023,000 3,183,500 3,515,500 38,550,520
680 Fuel Station Renovation 55,000 450,000 505,000
680 Maintenance Yard Back-up Generator 50,000 500,000 550,000
680 Renovation for removal of Fleet and Ops - adding P&R 220,000 220,000
Administration Building Efficiency Renovation 50,000 500,000 550,000
CEDPW Building D File Room to Conference Room Renovation 20,000 150,000 170,000
Coronado Middle School Park Pre-Fab Restroom - Amphi Partnership*217,200 217,200
Equipment Replacement Program 648,000 289,500 260,500 368,000 418,500 403,000 204,000 178,500 178,500 2,948,500
F450 4X4 Reg Cab Dump 100,000 100,000
Facility Maintenance Program 362,000 493,000 508,000 524,000 540,000 557,000 574,000 592,000 610,000 629,000 5,389,000
Fuel Management Software (Gasboy Replacement)70,000 70,000
MOC Decommissioning 50,000 50,000
MOC Perimeter Fence & Entry Gate 30,000 450,000 480,000
MOC Water and Transit flat roof surface replacement 70,000 70,000
Network Storage 60,000 50,000 50,000 160,000
PD Main Town Hall, Building F, Locker Room Remodel 40,000 375,000 415,000
Phone System Refresh*300,000 300,000 600,000
Public Works Operations Laydown Yard*200,000 200,000
Server OS Refresh 60,000 60,000 120,000
Town Court Expansion*1,629,899 1,500,000 3,129,899
Town Hall Admin Building A, Remodel I&T area 50,000 335,000 115,000 500,000
Town Hall Data Center Migration*21,337 21,337
Town Hall Emergency Generator Replacements*364,384 364,384
Town Hall, Building A, Elevator System Modernization 75,000 75,000
Town-Wide Drainage Study 100,000 100,000
Traffic Camera Video Recording System*110,000 110,000
Upgrade Desktop Operating Systems 200,000 200,000 400,000
Vehicle Replacement Program*2,818,200 1,640,000 1,760,000 1,844,000 1,893,000 2,026,000 2,084,000 2,227,000 2,335,000 2,408,000 21,035,200
Public Safety 80,000 4,000,000 18,000,000 18,000,000 40,080,000
Future Police Station 4,000,000 18,000,000 18,000,000 40,000,000
Storage for Digital Forensics 80,000 80,000
Town of Oro Valley FY 2023/24 Adopted Budget 202
Capital Improvement Plan | Projects by Category
CIP Project Listing by Category
* Denotes a project with carryforward funding from the prior year FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 FY 32/33 Grand Total
Stormwater 365,000 386,445 650,000 1,401,445
Mutterer's Wash Bank Improvements 500,000 500,000
Public Storm Sewer Survey and Assessment 150,000 150,000
Sierra Wash @ Glover Road Culvert and Apron Rehabilitation 386,445 386,445
Sierra Wash at Via Mandarina Drainage Improvements 365,000 365,000
Streets/Roads 5,427,534 10,483,870 19,537,663 9,994,358 27,885,432 20,203,621 3,781,634 18,410,514 11,200,207 3,264,857 130,189,689
First Ave. Mill & Overlay (CDO Bridge to SR77)250,000 250,000
First Ave. Mill & Overlay (CDO Bridge to Tangerine Rd.)1,695,000 1,695,000
First Avenue Bridge Deck Repair 2,661,424 2,661,424
Illuminated Street Signs 60,500 62,315 122,815
La Cañada Bridge Deck Repair 7,657,800 7,657,800
La Cañada Dr & Tangerine Rd Intersection - Mill & Overlay 305,000 305,000
La Cañada Drive Mill/Overlay - CDO Bridge to Lambert Lane 1,081,000 1,081,000
La Cañada Drive Phase III (Naranja Dr. to Tangerine Rd.)678,000 678,000
La Canada Traffic Signal - Street Improvements (near Lehman Academy)600,000 600,000
Lambert Lane Reconstruction (La Cholla to west Town Limits)388,000 388,000
Lambert Lane Widening (Shannon Rd to Rancho Sonora Dr)17,246,000 17,246,000
Linda Vista Blvd Safety (Calle Buena Vista to Oracle Rd)3,121,000 3,121,000
Moore Rd La Cholla Blvd Intersection 500,000 1,700,000 2,200,000
Moore Road Widen (La Cholla Blvd to La Cañada Drive)9,417,000 9,417,000
Naranja Dr. Widening ( La Cholla Bl. to 1st Ave.)3,394,000 3,394,000
Oracle Rd & Rams Field Intersection 750,000 750,000
Palisades Road Widening (1st Ave to 1 mile east)5,886,000 5,886,000
Pavement Preservation - Non Roadways 114,000 116,850 119,800 122,800 125,900 129,100 132,400 135,800 139,200 142,700 1,278,550
Pavement Preservation - Roadways 2,500,000 2,562,500 2,626,563 2,692,227 2,759,532 2,828,521 2,899,234 2,971,714 3,046,007 3,122,157 28,008,454
Pomegranate Drive - Drainage Improvement and Roadway Stabilization 183,420 183,420
Rancho Vistoso & Woodburne Intersection 750,000 750,000
Rancho Vistoso Blvd Bridge Deck Repair 4,079,016 4,079,016
Rancho Vistoso Blvd Mill/Overlay (Moore Rd to Tangerine Rd)1,500,000 1,500,000
Rancho Vistoso Bridge Deck Repair over Honeybee Wash 1,336,676 1,336,676
RV Blvd Mill /Overlay - Vistoso Highland to Honey Bee Bridge 1,025,000 1,025,000
RV Blvd Mill/Overlay - Honey Bee Wash Bridge to Green Tree Drive 2,034,000 2,034,000
Shannon Road Widening - Lambert Lane to Tangerine Road 25,000,000 25,000,000
Sun City Light Circuit #3 438,000 438,000
Tangerine Rd. Bridge Deck Repair over Big Wash 3,658,000 3,658,000
Tangerine Road Mill/Overlay (La Cañada Dr. to Oracle Rd.)2,600,000 2,600,000
Westward Look Drive Improvements*845,534 845,534
203 Town of Oro Valley FY 2023/24 Adopted Budget
Capital Improvement Plan | Projects by Category
CIP Project Listing by Category
* Denotes a project with carryforward funding from the prior year FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 FY 32/33 Grand Total
Water System 14,069,792 6,320,000 10,580,000 8,600,000 5,350,000 1,360,000 1,360,000 1,160,000 1,160,000 1,360,000 51,319,792
Big Wash Building Improvements 100,000 100,000
Booster Station HP Tank Replacement 150,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 1,680,000
Booster Station Rehabilitation*300,000 590,000 50,000 50,000 240,000 250,000 250,000 50,000 50,000 250,000 2,080,000
Control Systems - SCADA 200,000 200,000 500,000 500,000 700,000 200,000 200,000 200,000 200,000 200,000 3,100,000
Countryside Wheeling Station 300,000 300,000
El Con/El Camino Diestro main and valve replacement 150,000 150,000
La Canada Booster Station Expansion 3,700,000 3,700,000
La Canada Main Replacement on Southbound Lanes across from Golf Mainte 250,000 250,000
La Posada Well Equipping*600,000 600,000
NWRRDS (Independent) Booster Station at Partnered Reservoir 1,000,000 1,000,000 2,000,000
NWRRDS (Independent) E-Zone main interconnect to Tangerine 810,000 90,000 900,000
NWRRDS (Independent) E-Zone main interconnection to Naranja 360,000 40,000 400,000
NWRRDS (Independent) Pipeline from Partnered Reservoir to Shannon Rd. Reservoir)4,000,000 4,000,000 2,000,000 10,000,000
NWRRDS (Independent) Shannon Road Booster Station*2,800,000 1,000,000 3,800,000
NWRRDS (Independent) Shannon Road Reservoir 1,400,000 300,000 1,700,000
NWRRDS (Partnered) Forebay, reservoir construction 3,000,000 2,000,000 5,000,000
NWRRDS (Partnered) Pipeline construction (recovered water & Transmission)2,100,000 1,050,000 1,000,000 4,150,000
NWRRDS (Partnered) Well Equipping, TRICO power to sites and associated tasks 1,200,000 400,000 1,600,000
Palisades Area Supply Redundancy 250,000 250,000
Reservoir Relining 100,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 1,900,000
Steam Pump Well Equipping*450,000 450,000
Water Meters- New Connections (based on 210 meters per year)169,792 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 1,519,792
Well D-8 Replacement (Design/Permit/Construction/ Equipping)690,000 690,000 500,000 1,880,000
Well HP Tank Replacement 150,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 1,680,000
Well Rehabilitation 150,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 2,130,000
Grand Total 47,771,435 28,101,170 55,934,268 44,802,858 43,744,232 29,300,121 17,752,634 27,547,514 17,399,707 8,240,357 320,594,295
Town of Oro Valley FY 2023/24 Adopted Budget 204
Capital Improvement Program | Project Descriptions – Parks & Recreation
ADA/Safety Walkway Concrete Improvements System Wide
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
General Fund - 150,000 - - - - - 150,000
Total:- 150,000 - - - - - 150,000
Cañada Golf Course Pathway Improvements
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
Community Center Fund - 550,000 - - - - - 550,000
Total:- 550,000 - - - - - 550,000
CC Parking Lot Reconstruction & Expansion
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
Bond Financing 27,740 589,920 - - - - - 617,660
Total:27,740 589,920 - - - - - 617,660
Repair and replace broken and heaved sidewalks.
Create improved connections and ramps to improve
safety and accessibility.
None anticipated
$16,600 annual maintenance cost
Resurface and redesign of the Community Center
parking lot for increased capacity. This project will
maintain the parking and increase parking capacity to
accommodate more visitors.
Crack repair, patching and surface treatment to the
Canada Golf Course pathway. In addition to extending
the service life, pathway aesthetics will be improved
providing a more enjoyable experience for users.
None anticipated
205 Town of Oro Valley FY 2023/24 Adopted Budget
Capital Improvement Program | Project Descriptions – Parks & Recreation
Community Center Elevator
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
General Fund 99,879 1,612,861 - - - - - 1,712,740
Total:99,879 1,612,861 - - - - - 1,712,740
Community Center Fire Alarm System Upgrade
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
Community Center Fund 23,377 75,000 - - - - - 98,377
Total:23,377 75,000 - - - - - 98,377
Community Center Flat Roof Surface Replacement
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future*Total Project
Cost
Community Center Fund - 198,000 - 200,000 - 200,000 400,000 998,000
Total:- 198,000 - 200,000 - 200,000 400,000 998,000
*This is an ongoing biennial project with no definitive end. Thus, future costs and total costs shown here are only those through FY 2032/33.
None anticipated
Reduced maintenance costs
Unknown until final designs are complete
Design and construction of an elevator at the Town's
Community Center increase accessibility to the
facility.
Upgrade the fire alarm system at the Community and
Recreation Center. The current fire alarm system is
obsolete and requires replacement
Replace roofing material on all flat roofs at the
Community Center
Town of Oro Valley FY 2023/24 Adopted Budget 206
Capital Improvement Program | Project Descriptions – Parks & Recreation
CRC Restaurant Cooler/Freezer Modernization and Floor Repair
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
Community Center Fund - 65,000 - - - - - 65,000
Total:- 65,000 - - - - - 65,000
Golf Course Irrigation Phase 2 (Cañada Course)
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
Community Center Fund 1,171,578 562,075 - - - - - 1,733,653
ARPA - 1,437,925 - - - - - 1,437,925
Total:1,171,578 2,000,000 - - - - - 3,171,578
Greenock Trail Improvements
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
General Fund 43,070 15,000 - - - - - 58,070
Total:43,070 15,000 - - - - - 58,070
$25,000 estimated yearly water and utility savings
(Phase 1 and 2 combined)
Irrigation system improvements to the 18-hole Cañada
golf course. Construction to take place over two fiscal
years.
None anticipated
Create a trail connection from the Canada del Oro
pedestrian bridge to Greenock Drive
None anticipated
Replace refrigeration components and coat flooring for
two walk-in coolers and one freezer
207 Town of Oro Valley FY 2023/24 Adopted Budget
Capital Improvement Program | Project Descriptions – Parks & Recreation
Life Cycle Replacement (Bunkers and Turf Reduction)
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
Community Center Fund 95,034 100,000 - - - - 195,034
Total:95,034 100,000 - - - - - 195,034
MUP – Phase I - La Cañada Dr. (Lambert Lane to Naranja Dr)
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
RTA Grant - 420,000 - - - - - 420,000
Bond Financing 50,405 257,590 - - - - - 307,995
Total:50,405 677,590 - - - - - 727,995
MUP – Phase II - Naranja Dr. (La Cañada Dr to Naranja Park entrance)
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost*
RTA Grant 44,000 200,000 - - - - - 244,000
Total:44,000 200,000 - - - - - 244,000
Bunker sand will be added to existing bunkers and
landscaping reduced in connection with the irrigation
project. This project will increase playability and
enhance areas of the course.
Construct approx. 1 mile of multi-use path along La
Canada Drive from Lambert Lane to Naranja Drive.
Council direction regarding bond funded projects
$1,260 annual pavement preservation cost
Reduced water costs
Construct approx. 0.7 mile of multi-use path along W.
Naranja Drive from La Canada to the Naranja Park
entrance. This project is federal and RTA funded.
$2,460 annual pavement preservation cost
*Cost reflected is that of local match only, funded by the RTA, the State of Arizona is administering project design and construction with federal
funds.
Town of Oro Valley FY 2023/24 Adopted Budget 208
Capital Improvement Program | Project Descriptions – Parks & Recreation
Naranja Park Master Plan Implementation
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
Bond Financing 9,899,115 13,000,000 - - - - - 22,899,115
General Fund 2,641 - - - - - - 2,641
Parks Impact Fee Fund - 600,000 - - - - - 600,000
Total:9,901,756 13,600,000 - - - - - 23,501,756
OVAC Pump Room Upgrades - Phase Two
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
General Fund - 78,000 - 112,000 - - - 190,000
Total:- 78,000 - 112,000 - - - 190,000
Parks Maintenance Toro Reelmaster Mower Replacement
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
General Fund - 85,000 - - - - - 85,000
Total:- 85,000 - - - - - 85,000
Multi-year project covering earthwork, two oversized
multi-use fields, splash pad, basketball courts,
pickleball courts, restrooms, parking, entry road, paths
and landscape.
$184,400 annual maintenance and operating cost
Replace current 3550 D-Reel mower
Complete Aquatic Center pump room upgrades
including sanitary system improvements to the
recreation pool and adding a roofing structure over the
new pump room equipment
Anticipated reduction in pool maintenance costs
None anticipated
209 Town of Oro Valley FY 2023/24 Adopted Budget
Capital Improvement Program | Project Descriptions – Parks & Recreation
Pusch Ridge Facility ADA and Code Compliance
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
Community Center Fund - 285,000 - - 85,000 - - 370,000
ARPA 238,105 133,718 - - - - - 371,823
Total:238,105 418,718 - - 85,000 - - 741,823
Pusch Ridge Golf Course Improvements
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
Community Center Fund - 75,000 - - - - - 75,000
Total:- 75,000 - - - - - 75,000
Steam Pump Ranch - Solar Lighting
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost*
General Fund - 71,000 - - - - - 71,000
Total:- 71,000 - - - - - 71,000
Various improvements to increase playability and
aesthetics as well as replacing stairs that have become
a safety concern and repairing fencing around the cart
storage area
None anticipated
Install solar lighting to illuminate areas of Steam Pump
Ranch. Lighting would improve safety and security
Unknown at this time
Various improvements at the Pusch Ridge facility to
achieve ADA and code compliance.
None anticipated
Town of Oro Valley FY 2023/24 Adopted Budget 210
Capital Improvement Program | Project Descriptions – Parks & Recreation
Steam Pump Ranch - Tack Building
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost*
General Fund - 50,000 - 500,000 - - - 550,000
Total:- 50,000 - 500,000 - - - 550,000
Steam Pump Ranch BBQ & Bunk House Renovations
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
ARPA 722,582 500,000 - - - - - 1,222,582
General Fund 59,079 - - - - - - 59,079
Total:781,661 500,000 - - - - - 1,281,661
Vistoso Trails Nature Preserve ADA Restrooms
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
Community Center Fund - 75,000 - - - - - 75,000
Total:- 75,000 - - - - - 75,000
None anticipated
Potential for reduced maintenance costs as buildings
are repaired
Preservation and restoration of Barbeque and Bunk
House building on Steam Pump Ranch property.
Preserve and restore two buildings in need of repair
None anticipated
Continuation of refurbishment and ADA compliance of
the restrooms at the Vistoso Trails Nature Preserve
This project will provide indoor storage space for
historically significant artifacts as well as storage for
the Recreation and Culture division
211 Town of Oro Valley FY 2023/24 Adopted Budget
Capital Improvement Program | Project Descriptions – Parks & Recreation
Vistoso Trails Nature Preserve Improvements
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost*
Community Center Fund 321,612 255,000 100,000 100,000 100,000 100,000 500,000 1,476,612
Total:321,612 255,000 100,000 100,000 100,000 100,000 500,000 1,476,612
*This is an ongoing annual project with no definitive end. Thus, future costs and total costs shown here are only those through FY 2032/33.
Approx $100k operating and maintenance cost
annually
Vistoso Trails initial site clean up including weed,
invasive grasses and dead tree removal, trail
accessibility and restoring restrooms to working
condition. Significant work is required to ensure public
safety and access to this golf course.
Town of Oro Valley FY 2023/24 Adopted Budget 212
Capital Improvement Program | Project Descriptions – Public Facilities, Vehicles & Equipment
680 Fuel Station Renovation
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
General Fund - 55,000 450,000 - - - - 505,000
Total:- 55,000 450,000 - - - - 505,000
Coronado Middle School Park Pre-Fab Restroom - Amphi Partnership
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
General Fund - 217,200 - - - - - 217,200
Total:- 217,200 - - - - - 217,200
F450 4X4 Reg Cab Dump
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
General Fund - 100,000 - - - - - 100,000
Total:- 100,000 - - - - - 100,000
Purchase of a Ford F450 4X4 Regular Cab Dump
Truck
Future maintence to be determined
Decreased costs associated with equipment
maintenance
Design and construct a modern fuel station at 680
Calle Concordia which will improve efficiencies at the
station
Unknown at this time
Install a prefabricated restroom building for use at the
Coronado K-8 sports fields. This item was determined
to be the highest priority following discussions
between the Town and Oro Valley Little League who
use these fields as their home site. There currently
are no permanent onsite restrooms, a portable toilet is
the only facility onsite.
213 Town of Oro Valley FY 2023/24 Adopted Budget
Capital Improvement Program | Project Descriptions – Public Facilities, Vehicles & Equipment
Facility Maintenance Program
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost*
General Fund - 362,000 493,000 508,000 524,000 540,000 2,962,000 5,389,000
Total:- 362,000 493,000 508,000 524,000 540,000 2,962,000 5,389,000
*This is an ongoing annual project with no definitive end. Thus, future costs and total costs shown here are only those through FY 2032/33.
Fuel Management Software (Gasboy Replacement)
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
General Fund - 70,000 - - - - - 70,000
Total:- 70,000 - - - - - 70,000
MOC Perimeter Fence & Entry Gate
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
General Fund - 30,000 450,000 - - - - 480,000
Total:- 30,000 450,000 - - - - 480,000
No changes in operating costs anticipated
Replace current Gasboy system with current
technology to ensure that fueling continues to be
served from 680
Reduced maintenance costs
Design and construct MOC entryway and perimeter
fencing. Entry to include security gate, vehicle
turnaround and video monitoring
Unknown at this time
Maintenance and rehabilitation of Town owned
facilities. Annual repair and maintenance of Town
owned facilities and assets are crucial to maintain and
extend the useful life of the asset
Town of Oro Valley FY 2023/24 Adopted Budget 214
Capital Improvement Program | Project Descriptions – Public Facilities, Vehicles & Equipment
Network Storage
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
General Fund - 60,000 - - 50,000 - 50,000 160,000
Total:- 60,000 - - 50,000 - 50,000 160,000
Phone System Refresh
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost*
General Fund - 300,000 - - - - 300,000 600,000
Total:- 300,000 - - - - 300,000 600,000
*Total project costs shown here is reflecting two refreshes within the 10-year CIP plan.
Public Works Operations Laydown Yard
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
General Fund 114,500 200,000 - - - - - 314,500
Total:114,500 200,000 - - - - - 314,500
Replace the existing telephone system with an
updated system. Replacing the current telephone
system would leverage newer technologies including
cloud services for telephone service.
Unknown at this time
Purchase additional storage to meet the Town's
growing data needs
Unknown at this time
Building a public works operational storage yard for
street maintenance. Road Maintenance currently
operates out of three facilities, one of these being at
Naranja Park. The expansion of Naranja Park will
occupy the space used by operations requiring
operations to relocate.
None anticipated
215 Town of Oro Valley FY 2023/24 Adopted Budget
Capital Improvement Program | Project Descriptions – Public Facilities, Vehicles & Equipment
Town Court Expansion
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
General Fund 138,510 1,629,899 1,500,000 - - - - 3,268,409
Total:138,510 1,629,899 1,500,000 - - - - 3,268,409
Town Hall Admin Building A, Remodel I&T area
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
General Fund - 50,000 335,000 - - 115,000 - 500,000
Total:- 50,000 335,000 - - 115,000 - 500,000
Town Hall Data Center Migration
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
General Fund 159,294 21,337 - - - - - 180,631
Total:159,294 21,337 - - - - - 180,631
Design and construct work spaces in building A to
better support the operations of the Innovation and
Technology Department. Design will include remodel
of IT area and restroom
None anticipated
Minimal utility and maintenance cost increases with
expanded building
Migrate the Town data center and facilities to the
Police facility building. Data center at the Police
facility is more appropriate from a security and
reliability perspective.
None anticipated
Design for the Town Court building expansion. The
current court building is too small to accommodate
needs
Town of Oro Valley FY 2023/24 Adopted Budget 216
Capital Improvement Program | Project Descriptions – Public Facilities, Vehicles & Equipment
Town Hall Emergency Generator Replacements
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
General Fund 237,887 364,384 - - - - - 602,271
Total:237,887 364,384 - - - - - 602,271
Traffic Camera Video Recording System
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
General Fund - 110,000 - - - - - 110,000
Total:- 110,000 - - - - - 110,000
Replace aging backup generators. Replacement will
allow Town to maintain continuity of operations when
power is interrupted
None anticipated
Establish a recording server for the Town of Oro Valley
signalized intersections. By establishing our own
recording server we can improve the reliability and
accessibility to these cameras .
None anticipated
217 Town of Oro Valley FY 2023/24 Adopted Budget
Capital Improvement Program | Project Descriptions – Public Facilities, Vehicles & Equipment
Vehicle Replacement Program
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost*
General Fund - 999,200 1,481,868 1,553,224 1,631,173 1,716,644 9,961,888 17,343,997
Grants Fund - 1,506,000 - - - - - 1,506,000
Highway Fund - 203,000 118,132 126,776 132,827 136,356 798,112 1,515,203
Water Utilty Fund - 110,000 40,000 80,000 80,000 40,000 320,000 670,000
Total:- 2,818,200 1,640,000 1,760,000 1,844,000 1,893,000 11,080,000 21,035,200
Annual replacement of vehicles across Town
departments. Replacement of aging fleet helps control
vehicle repair and maintenance costs. Vehicle
reserves are set aside annually to fund replacements
Reduced maintenance costs as aging vehicles are
replaced
*This is an ongoing annual project with no definitive end. Thus, future costs and total costs shown here are only those through FY 2032/33.
Vehicle replacements are evaluated annually based on actual fleet conditions. As such, future costs may change by total amount and funding
sources.
Town of Oro Valley FY 2023/24 Adopted Budget 218
Capital Improvement Program | Project Descriptions – Public Safety
Storage for Digital Forensics
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
General Fund - 80,000 - - - - - 80,000
Total:- 80,000 - - - - - 80,000
Data storage backup solution for the police
department forensics. This evidence requires multiple
copies, some muted copies which increases the size
and complexity of the storage solution
None anticipated
219 Town of Oro Valley FY 2023/24 Adopted Budget
Capital Improvement Program | Project Descriptions – Stormwater
Sierra Wash at Via Mandarina Drainage Improvements
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
Stormwater Fund - 365,000 - - - - - 365,000
Total:- 365,000 - - - - - 365,000
Improvements to the outlet apron protecting the box
culvert and roadway from potential failure. The
Stormwater Utility has submitted a federal Hazard
Mitigation Grant Program application under FEMA.
None anticipated
Town of Oro Valley FY 2023/24 Adopted Budget 220
Capital Improvement Program | Project Descriptions – Streets/Roads
First Ave. Mill & Overlay (CDO Bridge to SR77)
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
General Fund - 250,000 - - - - - 250,000
Total:- 250,000 - - - - - 250,000
La Cañada Dr & Tangerine Rd Intersection - Mill & Overlay
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
Highway Fund - 305,000 - - - - - 305,000
Total:- 305,000 - - - - - 305,000
Lambert Lane Reconstruction (La Cholla to west Town Limits)
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost*
PAG/RTA Fund - 388,000 - - - - - 388,000
Total:- 388,000 - - - - - 388,000
Mill the upper two inches of asphalt rubber pavement
and repave with conventional asphalt along First
Avenue between the CDO Bridge and SR77. The
asphalt rubber pavement has reached the end of
lifecycle
None anticipated
None anticipated
Mill the upper two inches of asphalt rubber pavement
and repave with conventional asphalt at the La Canada
Drive and Tangerine Road intersection. The asphalt
rubber pavement has reached the end of lifecycle
Remove fatigued pavement sections, apply a stress-
absorbing membrane layer and overlay roadway with
conventional asphalt concrete along Lambert Lane
between La Cholla Blvd and the west Town limit
None anticipated
221 Town of Oro Valley FY 2023/24 Adopted Budget
Capital Improvement Program | Project Descriptions – Streets/Roads
Pavement Preservation - Non Roadways
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost*
General Fund - 114,000 116,850 119,800 122,800 125,900 679,200 1,278,550
Total:- 114,000 116,850 119,800 122,800 125,900 679,200 1,278,550
*This is an ongoing annual project with no definitive end. Thus, future costs and total costs shown here are only those through FY 2032/33.
Pavement Preservation - Roadways
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost*
Highway Fund - 2,500,000 2,562,500 2,626,563 2,692,227 2,759,532 14,867,633 28,008,454
Total:- 2,500,000 2,562,500 2,626,563 2,692,227 2,759,532 14,867,633 28,008,454
*This is an ongoing annual project with no definitive end. Thus, future costs and total costs shown here are only those through FY 2032/33.
RV Blvd Mill /Overlay - Vistoso Highland to Honey Bee Bridge
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
Highway Fund - 1,025,000 - - - - - 1,025,000
Total:- 1,025,000 - - - - - 1,025,000
Annual pavement preservation for non-roadway assets.
Cost effective asphalt surface treatments will be
applied to the Town's parking lots and multi-use paths
to preserve and extend the service life
Maintaining adequate funding for this program prevents
future costly roadway reconstruction and rehabilitation.
Perform annual roadway treatments per the Town's
pavement preservation and management program.
Enhances and improves the roadway system
Maintaining adequate funding for this program prevents
future costly roadway reconstruction and rehabilitation.
None anticipated
Mill the upper two inches of asphalt rubber pavement
and repave with conventional asphalt along Rancho
Vistoso Blvd from Vistoso Highlands Drive to Honey
Bee Wash Bridge. The asphalt rubber pavement has
reached the end of lifecycle
Town of Oro Valley FY 2023/24 Adopted Budget 222
Capital Improvement Program | Project Descriptions – Streets/Roads
Westward Look Drive Improvements
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
General Fund 46,349 - - - - - - 46,349
ARPA 15,038 845,534 - - - - - 860,572
Total:61,386 845,534 - - - - - 906,920
Pavement replacement and landscape improvements
along Westward Look Drive. Current asphalt does not
meet Town standards and reconstruction is listed as
part of annexation agreement with Westward Look
Resort.
None anticipated
223 Town of Oro Valley FY 2023/24 Adopted Budget
Capital Improvement Program | Project Descriptions – Water System
Big Wash Building Improvements
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
Water Utility Fund - 100,000 - - - - - 100,000
Total:- 100,000 - - - - - 100,000
Booster Station HP Tank Replacement
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future*Total Project
Cost*
Water Utility Fund - 150,000 170,000 170,000 170,000 170,000 850,000 1,680,000
Total:- 150,000 170,000 170,000 170,000 170,000 850,000 1,680,000
*This is an ongoing annual project with no definitive end. Thus, future costs and total costs shown here are only those through FY 2032/33.
Booster Station Rehabilitation
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future*Total Project
Cost*
Water Utility Fund - 300,000 590,000 50,000 50,000 240,000 850,000 2,080,000
Total:- 300,000 590,000 50,000 50,000 240,000 850,000 2,080,000
*This is an ongoing annual project with no definitive end. Thus, future costs and total costs shown here are only those through FY 2032/33.
None anticipated
Enclose the openings at the existing Big Wash
Buildings to create storage space for spare parts and
materials
Unknown at this time
New 5,000 gallon tank to meet all American Society of
Mechanical Engineers (ASME) certifications and
standards
$500 Decrease in annual maintenance costs
Rehabilitate select booster stations to return the
boosters to optimum operational efficiency and
maintain system reliability
Town of Oro Valley FY 2023/24 Adopted Budget 224
Capital Improvement Program | Project Descriptions – Water System
Control Systems - SCADA
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
Water Utility Fund - 200,000 200,000 500,000 500,000 700,000 1,000,000 3,100,000
Total:- 200,000 200,000 500,000 500,000 700,000 1,000,000 3,100,000
Countryside Wheeling Station
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
Water Utility Fund - 300,000 - - - - - 300,000
Total:- 300,000 - - - - - 300,000
La Canada Booster Station Expansion
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
Water Impact Fees/GPF 650,050 3,700,000 - - - - - 4,350,050
Water Utility Fund 177,717 - - - - - - 177,717
ARPA 210,636 - - - - - - 210,636
Total:1,038,403 3,700,000 - - - - - 4,738,403
Design and construction of a higher capacity wheeling
station to the Countryside service area. This will allow
for additional Central Arizona Project water deliveries
to the service area further reducing groundwater
pumping
Unknown at this time
Construct a sixteen-inch water main from the Shannon
Road booster station to Naranja Road to serve "E"
Zone. Capital investment to deliver an additional four-
thousand acres per foot a year of recovered Central
Arizona Project (CAP) water to the Oro Valley Water
Utility service area.
None anticipated
Instrumentation replacement due to aging
infrastructure that is not compatible with newer
Supervisory Control and Data Acquisition (SCADA)
equipment
None anticipated
225 Town of Oro Valley FY 2023/24 Adopted Budget
Capital Improvement Program | Project Descriptions – Water System
La Canada Main Replacement on Southbound Lanes across from Golf Maintenance Building
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future*Total Project
Cost*
Water Utility Fund - 250,000 - - - - - 250,000
Total:- 250,000 - - - - - 250,000
*This is an ongoing annual project with no definitive end. Thus, future costs and total costs shown here are only those through FY 2032/33.
La Posada Well Equipping
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
Water Impact Fees/GPF - 600,000 - - - - - 600,000
Total:- 600,000 - - - - - 600,000
NWRRDS (Independent) Shannon Road Booster Station
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
Water Impact Fees/GPF - 2,277,299 1,000,000 - - - - 3,277,299
ARPA - 522,701 - - - - - 522,701
Total:- 2,800,000 1,000,000 - - - - 3,800,000
None anticipated
Oro Valley Water Utility independent booster from
partnered forebay reservoir at Shannon Road
None anticipated
Replacement of water main under Southbound lanes
across from the Golf Course Maintenance Building.
The pressure class of the existing water pipe is not
adequate for operational requirements.
None anticipated
Complete the equipping of the new well at the La
Posada development at First Avenue and Lambert
Lane. This project will peplace lost well capacity,
maintain healthy groundwater capacity during periods
of increased summer demand and, in the event of CAP
water outage, as a redundant system.
Town of Oro Valley FY 2023/24 Adopted Budget 226
Capital Improvement Program | Project Descriptions – Water System
NWRRDS (Independent) Shannon Road Reservoir
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
Water Impact Fees/GPF - 1,400,000 300,000 - - - - 1,700,000
Total:- 1,400,000 300,000 - - - - 1,700,000
NWRRDS (Partnered) Forebay, reservoir construction
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
Water Impact Fees/GPF - 3,000,000 2,000,000 - - - - 5,000,000
Total:- 3,000,000 2,000,000 - - - - 5,000,000
Palisades Area Supply Redundancy
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
Water Utility Fund - 250,000 - - - - - 250,000
Total:- 250,000 - - - - - 250,000
Partnered forebay reservoir construction to supply
recovered CAP water to the NWRRDS booster station.
None anticipated
Construction based on previous year design to build a
redundant connection to the Palisades area for
improved reliability and service
None anticipated
Reservoir to store and blend recovered CAP water and
"D" Zone water prior to delivery to La Canada reservoir
and booster station.
None anticipated
227 Town of Oro Valley FY 2023/24 Adopted Budget
Capital Improvement Program | Project Descriptions – Water System
Reservoir Relining
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost*
Water Utility Fund - 100,000 200,000 200,000 200,000 200,000 1,000,000 1,900,000
Total:- 100,000 200,000 200,000 200,000 200,000 1,000,000 1,900,000
*This is an ongoing annual project with no definitive end. Thus, future costs and total costs shown here are only those through FY 2032/33.
Steam Pump Well Equipping
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future Total Project
Cost
Water Utility Fund 8,822 - - - - - - 8,822
Water Impact Fees 875,986 450,000 - - - - - 1,325,986
Total:884,808 450,000 - - - - - 1,334,808
Water Meters- New Connections (based on 210 meters per year)
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future*Total Project
Cost*
Water Utility Fund - 169,792 150,000 150,000 150,000 150,000 750,000 1,519,792
Total:- 169,792 150,000 150,000 150,000 150,000 750,000 1,519,792
*This is an ongoing annual project with no definitive end. Thus, future costs and total costs shown here are only those through FY 2032/33.
Well equipping and system tie-in for replacement of
retiring wells.
Replacement of existing well; none anticipated
None anticipated
Purchase meters for new water system connections
based on two-hundred and ten meters per year
None anticipated
Reservoir relining will include draining the reservoir,
removing the existing lining, cleaning, applying the
lining, disinfecting, filling and returning reservoir to
service
Town of Oro Valley FY 2023/24 Adopted Budget 228
Capital Improvement Program | Project Descriptions – Water System
Well HP Tank Replacement
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future*Total Project
Cost*
Water Utility Fund - 150,000 170,000 170,000 170,000 170,000 850,000 1,680,000
Total:- 150,000 170,000 170,000 170,000 170,000 850,000 1,680,000
*This is an ongoing annual project with no definitive end. Thus, future costs and total costs shown here are only those through FY 2032/33.
Well Rehabilitation
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/23
2023/24
Adopted
2024/25
Forecast
2025/26
Forecast
2026/27
Forecast
2027/28
Forecast Future*Total Project
Cost*
Water Utility Fund - 150,000 220,000 220,000 220,000 220,000 1,100,000 2,130,000
Total:- 150,000 220,000 220,000 220,000 220,000 1,100,000 2,130,000
*This is an ongoing annual project with no definitive end. Thus, future costs and total costs shown here are only those through FY 2032/33.
None anticipated
New 5,000 gallon tank to meet all American Society of
Mechanical Engineers (ASME) certifications and
standards
$500 decrease in annual maintenance costs with new
tank
Remove existing pumping unit, rehabilitate the existing
well casing and install new pumping unit
229 Town of Oro Valley FY 2023/24 Adopted Budget
APPENDIX
Resolution Adoption
Auditor General Schedules
Glossary
Town of Oro Valley FY 2023/24 Adopted Budget 230
Official Budget Forms
Town of Oro Valley
Fiscal year 2024
3/22 Arizona Auditor General Official City/Town Budget Forms
231 Town of Oro Valley FY 2023/24 Adopted Budget
Town of Oro Valley FY 2023/24 Adopted Budget 232
233 Town of Oro Valley FY 2023/24 Adopted Budget
Fiscal yearGeneral FundSpecial Revenue Fund Debt Service FundCapital Projects Fund Permanent FundEnterprise Funds AvailableInternal Service Funds Total all funds2023 Adopted/adjusted budgeted expenditures/expenses* E153,073,483 22,979,140 4,441,059 40,033,234 - 22,912,894 4,264,477 147,704,287 2023 Actual expenditures/expenses** E245,777,577 16,331,553 4,340,559 22,400,337 - 18,854,545 4,218,658 111,923,229 2024Beginning fund balance/(deficit) or net position/(deficit) at July 1*** 322,823,906 2,961,909 207,718 44,974,453 - 13,187,960 2,869,952 87,025,898 2024 Primary property tax levyB4- - 2024 Secondary property tax levy B5- 2024 Estimated revenues other than property taxes C657,487,819 17,656,760 185,146 3,324,938 - 21,082,000 4,289,851 104,026,514 2024 Other financing sources D7- - - - - - - - 2024 Other financing (uses) D8- - - - - - - - 2024 Interfund transfers in D9- 1,638,000 3,902,708 12,880,000 - - - 18,420,708 2024 Interfund Transfers (out) D1012,274,644 1,717,203 - 1,546,553 - 2,882,308 - 18,420,708 2024Line 11: Reduction for fund balance reserved for future budget year expenditures Maintained for future debt retirement- Maintained for future capital projects- Maintained for future financial stability- 2024 Total financial resources available1268,037,081 20,539,466 4,295,572 59,632,838 - 31,387,652 7,159,803 191,052,412 2024Budgeted expenditures/expensesE1355,399,614 20,578,425 4,137,854 40,079,352 - 23,504,295 4,789,851 148,489,391 Expenditure limitation comparison202320241Budgeted expenditures/expenses147,704,287$ 148,489,391$ 2Add/subtract: estimated net reconciling items3Budgeted expenditures/expenses adjusted for reconciling items147,704,287 148,489,391 4Less: estimated exclusions5Amount subject to the expenditure limitation147,704,287$ 148,489,391$ 6EEC expenditure limitation$ $ X******Town of Oro ValleySummary Schedule of estimated revenues and expenditures/expensesFiscal year 2024Includes actual amounts as of the date the proposed budget was prepared, adjusted for estimated activity for the remainder of the fiscal year.Amounts on this line represent beginning fund balance/(deficit) or net position/(deficit) amounts except for nonspendable amounts (e.g., prepaids and inventories) or amounts legally or contractually required to be maintained intact (e.g., principal of a permanent fund).SchFundsIncludes expenditure/expense adjustments approved in the current year from Schedule E. The city/town does not levy property taxes and does not have special assessment districts for which property taxes are levied. Therefore, Schedule B has been omitted.113/22 Arizona Auditor GeneralSchedule AOfficial City/Town Budget FormsTown of Oro Valley FY 2023/24 Adopted Budget234
Estimated
revenues Actual revenues*
Estimated
revenues
2023 2023 2024
General Fund
Local taxesLocal Sales Tax $ 24,505,959 $ 26,266,462 $ 25,633,318Cable Franchise Tax 765,000 765,000 765,000
Licenses and permitsLicenses 202,500 200,000 205,000Permits 1,863,824 2,169,461 1,364,118Fees 157,500 267,500 148,000
Intergovernmental
State/County Shared 17,505,693 18,405,604 22,953,222
State Grants 75,000 90,000 75,000Federal Grants 380,000 569,000 582,415Reimbursements 1,613,000 1,600,500 1,869,500
Charges for services
Reimbursements 194,400 194,400 194,400
Fees 1,012,932 923,027 1,002,558Other 1,839,183 1,760,183 2,007,288
Fines and forfeits
Fines 125,000 85,000 125,000
Interest on investments
Interest Income 150,000 300,000 300,000
MiscellaneousMiscellaneous 249,000 611,900 263,000
Total General Fund $ 50,638,991 $ 54,208,037 $ 57,487,819
*
Town of Oro ValleyRevenues other than property taxes
Fiscal Year 2024
Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was
prepared, plus estimated revenues for the remainder of the fiscal year.
Source of revenues
3/22 Arizona Auditor General Schedule C Official City/Town Budget Forms235Town of Oro Valley FY 2023/24 Adopted Budget
Estimated
revenues Actual revenues*
Estimated
revenues
2023 2023 2024
Town of Oro ValleyRevenues other than property taxes
Fiscal Year 2024
Source of revenues
Special revenue funds
Highway User Revenue FundHighway User Fuel Tax $ 4,127,100 $ 4,127,100 $ 4,334,608Permits25,000 26,500 25,000
Interest Income 8,000 110,000 70,000
Other 3,000 7,825 3,000$ 4,163,100 $ 4,271,425 $ 4,432,608
Grants and Contributions Fund
Federal Grants $ 8,542,000 $ 5,682,000 $ 2,604,300
State Grants 279,047 276,695 223,400Interest Income 50 25,000 25,000Miscellaneous1,500,000 560,000
$ 10,321,097 $ 5,983,695 $ 3,412,700
Services and ForfeituresSeizures and Forfeitures $100,000 $10,000 $100,000Interest Income 2,000 5,000 3,000
$102,000 $15,000 $103,000
Community Center Fund
Local Sales Tax $ 3,477,236 $ 3,714,218 $ 3,726,016Charges for Services 4,868,049 5,775,940 5,785,386Interest Income 3,000 35,000 35,000
Other 159,050 173,343 162,050
$ 8,507,335 $ 9,698,501 $ 9,708,452
Total special revenue funds $ 23,093,532 $ 19,968,621 $ 17,656,760
* Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was
prepared, plus estimated revenues for the remainder of the fiscal year.
3/22 Arizona Auditor General Schedule C Official City/Town Budget FormsTown of Oro Valley FY 2023/24 Adopted Budget 236
Estimated
revenues Actual revenues*
Estimated
revenues
2023 2023 2024
Town of Oro ValleyRevenues other than property taxes
Fiscal Year 2024
Source of revenues
Debt service funds
Municipal Debt Service FundFederal Grants $ 30,088 $ 30,088 $ 25,146
Interest Income 500 60,000 60,000
Miscellaneous 100,000 93,082 100,000$ 130,588 $ 183,170 $ 185,146
Total debt service funds $ 130,588 $ 183,170 $ 185,146
Capital projects funds
Water Rescources Development Impact Fee FundDevelopment Impact Fees $ 1,101,346 $ 1,585,465 $ 903,349
Interest Income 150,000 150,000 150,000
$ 1,251,346 $ 1,735,465 $ 1,053,349
Townwide Roadway Development Impact Fee FundDevelopment Impact Fees $ 388,300 $ 213,366 $ 286,810
Interest Income 4,000 15,000 15,000
$ 392,300 $ 228,366 $ 301,810
Parks and Recreation Impact Fee FundDevelopment Impact Fees $ 165,520 $ 129,920 $ 133,280Interest Income 3,000 4,500 4,500
$ 168,520 $ 134,420 $ 137,780
Police Impact Fee FundDevelopment Impact Fees $ 57,700 $ 50,061 $ 39,034Interest Income 500 200 200
$ 58,200 $ 50,261 $ 39,234
Capital Fund
Miscellaneous $ 1,020,010 $ 960,010 $ 1,007,540State Grants 420,000 620,000Interest Income 25,000 350,000 100,000
$ 1,465,010 $ 1,310,010 $ 1,727,540
PAG/RTA FundState Grants $ 796,574 $ 796,574 $ 30,000Other 28,125 28,125 28,125
Interest Income 7,000 7,000
$ 824,699 $ 831,699 $ 65,125Recreation in Lieu Fee FundInterest Income $ $ 100 $ 100
$ $ 100 $ 100
Total capital projects funds $ 4,160,075 $ 4,290,321 $ 3,324,938
* Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was
prepared, plus estimated revenues for the remainder of the fiscal year.
3/22 Arizona Auditor General Schedule C Official City/Town Budget Forms237Town of Oro Valley FY 2023/24 Adopted Budget
Estimated
revenues Actual revenues*
Estimated
revenues
2023 2023 2024
Town of Oro ValleyRevenues other than property taxes
Fiscal Year 2024
Source of revenues
Enterprise funds
Water Utility FundWater Sales $ 15,383,000 $ 14,186,000 $ 16,060,000Charges for Services 3,224,000 2,962,467 3,200,500
Interest Income 100,000 100,000 100,000
Miscellaneous 135,768$ 18,707,000 $ 17,384,235 $ 19,360,500
Stormwater Utility Fund
Charges for Services $ 1,492,500 $ 1,460,310 $ 1,501,500
Interest Income 1,500 10,000 10,000Federal Grants 210,000$ 1,494,000 $ 1,470,310 $ 1,721,500
Total enterprise funds $ 20,201,000 $ 18,854,545 $ 21,082,000
*
Internal service funds
Benefit Self Insurance FundInterest Income $ 5,000 $ 20,000 $ 25,000
Miscellaneous 3,759,477 4,198,658 4,264,851
$ 3,764,477 $ 4,218,658 $ 4,289,851
Total internal service funds $ 3,764,477 $ 4,218,658 $ 4,289,851
Total all funds $ 101,988,663 $ 101,723,352 $ 104,026,514
* Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was
prepared, plus estimated revenues for the remainder of the fiscal year.
Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was
prepared, plus estimated revenues for the remainder of the fiscal year.
3/22 Arizona Auditor General Schedule C Official City/Town Budget FormsTown of Oro Valley FY 2023/24 Adopted Budget 238
Fund Sources (Uses)In (Out)
General Fund
Transfer to Capital Fund $ $ $ $ 10,000,000
Transfer to Grants Fund 138,000
Transfer to Debt Service Fund 2,136,644Total General Fund $ $ $ $ 12,274,644
Special revenue funds
Grants and Contributions Fund $$$ 138,000 $
Community Center Fund 1,717,203
Highway Fund 1,500,000Total special revenue funds $ $ $ 1,638,000 $ 1,717,203
Debt service funds
Municipal Debt Service Fund $$$ 3,902,708 $Total debt service funds $$$ 3,902,708 $
Capital projects funds
Water Resource Impact Fee Fund $$$ 2,880,000 $
Police Impact Fee Fund 46,553
Capital Fund 10,000,000 1,500,000Total capital projects funds $$$ 12,880,000 $ 1,546,553
Enterprise funds
Water Utility Fund $$$$ 2,882,308Total enterprise funds $ $ $ $ 2,882,308
Total all funds $ $ $ 18,420,708 $ 18,420,708
2024 2024
Town of Oro Valley
Other financing sources/(uses) and interfund transfers
Fiscal year 2024
Other financing Interfund transfers
3/22 Arizona Auditor General Schedule D Official City/Town Budget Forms239Town of Oro Valley FY 2023/24 Adopted Budget
Adopted
budgeted
expenditures/
expenses
Expenditure/
expense
adjustments
approved
Actual
expenditures/
expenses*
Budgeted
expenditures/
expenses Fund/Department 2023 2023 2023 2024
General Fund
Council $ 199,145 $ $ 199,145 $ 209,203
Clerk 422,705 431,246 419,897Town Manager's Office 1,160,173 189,603 1,270,531 1,638,716
Human Resources 569,905 547,534 590,520Finance 1,111,460 (189,603) 880,810 850,456Innovation & Technology 4,797,809 4,486,939 6,271,309
General Administration 4,077,234 3,306,623 2,555,536Legal 1,015,753 1,023,542 1,132,503
Community & Economic Development 3,280,764 3,064,158 3,882,445Parks & Recreation 3,775,162 3,699,552 4,664,040
Police 20,403,472 20,089,276 20,410,591Town Court 1,059,674 959,785 1,010,662
Public Works 6,200,227 5,818,436 6,763,736Contingency Reserve 5,000,000 5,000,000Total General Fund $ 53,073,483 $ $ 45,777,577 $ 55,399,614
Special revenue funds
Highway User Revenue Fund $ 4,852,189 $ $ 4,604,011 $ 6,668,791
Grants and Contributions Fund 5,841,059 3,193,724 4,769,152Seizures and Forfeitures 200,000 80,000 200,000
Community Center Fund 12,085,892 8,453,818 8,940,482Total special revenue funds $ 22,979,140 $ $ 16,331,553 $ 20,578,425
Debt service funds
Municipal Debt Service Fund $ 4,441,059 $ $ 4,340,559 $ 4,137,854Total debt service funds $ 4,441,059 $ $ 4,340,559 $ 4,137,854
Capital projects funds
Water Resources Dev Impact Fee Fun $ 3,537,005 $$ 1,908,291 $ 12,453,300Townwide Roadway Impact Fee Fund 1,015,000 8,571 306,429
Parks and Recreation Impact Fee Fund 168,520 4,000 788,000Police Impact Fee Fund 52,000 1,143 50,857
Recreation in Lieu Fee Fund 16,560 16,610Capital Fund 33,935,575 19,273,708 25,876,156
PAG/RTA Fund 1,308,574 1,204,624 588,000Total capital projects funds $ 40,033,234 $ $ 22,400,337 $ 40,079,352
Enterprise funds
Water Utility Enterprise Fund $ 20,555,870 $ $ 17,384,235 $ 21,431,834Stormwater Utility Enterprise Fund 2,357,024 1,470,310 2,072,461
Total enterprise funds $ 22,912,894 $ $ 18,854,545 $ 23,504,295
Internal service funds
Benefit Self Insurance Fund $ 4,264,477 $ $ 4,218,658 $ 4,789,851Total internal service funds $ 4,264,477 $ $ 4,218,658 $ 4,789,851
Total all funds $ 147,704,287 $ $ 111,923,229 $ 148,489,391
*
Expenditures/expenses by fundFiscal year 2024
Town of Oro Valley
Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was
prepared, plus estimated expenditures/expenses for the remainder of the fiscal year.
3/22 Arizona Auditor General Schedule E Official City/Town Budget FormsTown of Oro Valley FY 2023/24 Adopted Budget 240
Adopted
budgeted
expenditures/
expenses
Expenditure/
expense
adjustments
approved
Actual
expenditures/
expenses*
Budgeted
expenditures/
expenses
2023 2023 2023 2024
Council
General Fund $ 199,145 $ $ 199,145 $ 209,203Department total $ 199,145 $ $ 199,145 $ 209,203
Clerk General Fund $ 422,705 $ $ 431,246 $ 419,897Department total $ 422,705 $ $ 431,246 $ 419,897
Town Manager General Fund $ 1,160,173 $ 189,603 $ 1,270,531 $ 1,638,716Department total $ 1,160,173 $ 189,603 $ 1,270,531 $ 1,638,716
Human Resources General Fund $ 569,905 $ $ 547,534 $ 590,520Department total $ 569,905 $ $ 547,534 $ 590,520
Finance General Fund $ 1,111,460 $ (189,603) $ 880,810 $ 850,456Department total $ 1,111,460 $(189,603)$880,810 $850,456
Innovation and Technology General Fund $ 4,797,809 $$ 4,486,939 $ 6,271,309Department total $ 4,797,809 $$ 4,486,939 $ 6,271,309
General Administration General Fund $ 4,077,234 $$ 3,306,623 $ 2,555,536
General Fund - Contingency Reserve 5,000,000 5,000,000 Grants & Contributions Fund 5,310,000 1,900,000 1,100,000
Municipal Debt Service Fund 4,441,059 4,340,559 4,137,854 Benefits Self Insurance Fund 4,264,477 4,218,658 4,789,851 Capital Fund 33,673,613 19,033,018 25,621,391Department total $ 56,766,383 $$ 32,798,858 $ 43,204,632
Legal General Fund $ 1,015,753 $$ 1,023,542 $ 1,132,503Department total $ 1,015,753 $$ 1,023,542 $ 1,132,503
Community and Economic Development General Fund $ 3,280,764 $$ 3,064,158 $ 3,882,445Department total $ 3,280,764 $$ 3,064,158 $ 3,882,445Parks and Recreation General Fund $ 3,775,162 $$ 3,699,552 $ 4,664,040 Grants & Contributions Fund 40,000 2,382,665 673,718 Parks & Recreation Impact Fee Fund 168,520 4,000 788,000 Recreation in Lieu Fee Fund 16,560 16,610 Community Center Fund 12,085,892 8,453,818 8,940,482Department total $ 16,086,134 $$ 14,540,035 $ 15,082,850Police General Fund $ 20,403,472 $$ 20,089,276 $ 20,410,591
Grants & Contributions Fund 353,750 353,750 490,500 Seizures and Forfeitures 200,000 80,000 200,000
Police Impact Fee Fund 52,000 1,143 50,857Department total $ 21,009,222 $$ 20,524,169 $ 21,151,948
Town Court General Fund $ 1,059,674 $$959,785 $ 1,010,662
Department total $ 1,059,674 $$959,785 $ 1,010,662Public Works General Fund $ 6,200,227 $$ 5,818,436 $ 6,763,736 Grants & Contributions Fund 137,309 137,309 2,504,934 Highway Fund 4,852,189 4,604,011 6,668,791 Stormwater Utility Fund 2,357,024 1,470,310 2,072,461 PAG/RTA Fund 1,308,574 1,204,624 588,000 Townwide Roadway Impact Fee Fund 1,015,000 8,571 306,429 Capital Fund 261,962 240,690 254,765Department total $ 16,132,285 $$ 13,483,951 $ 19,159,116Water Utility Water Utility Fund $ 20,555,870 $$ 17,384,235 $ 21,431,834 Water Resources Dev Impact Fee Fund 3,537,005 1,908,291 12,453,300Department total $ 24,092,875 $$ 19,292,526 $ 33,885,134
*
Expenditures/expenses by departmentFiscal year 2024
Town of Oro Valley
Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed
budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year.
Department/Fund
3/22 Arizona Auditor General Schedule F Official City/Town Budget Forms241Town of Oro Valley FY 2023/24 Adopted Budget
Full-time equivalent (FTE)Employee salaries and hourly costs Retirement costs Healthcare costs Other benefit costsTotal estimated personnel compensation2024 2024 2024 2024 2024 2024336.48 $ 24,702,366 $ 5,429,247 $ 2,894,301 $ 2,626,346 $ 35,652,260Highway Fund 12.00 $ 956,185 $ 117,515 $ 91,346 $ 97,815 $ 1,262,861Community Center Fund 23.02 969,516 32,734 29,376 83,013 1,114,639Total special revenue funds35.02 $ 1,925,701 $ 150,249 $ 120,722 $ 180,828 $ 2,377,500Capital Fund 2.00 $ 196,040 $ 24,093 $ 19,252 $ 15,380 $ 254,765Total capital projects funds2.00 $ 196,040 $ 24,093 $ 19,252 $ 15,380 $ 254,765Water Utility Fund40.48 $ 2,816,940 $343,444 $436,032 $274,393 $ 3,870,809Stormwater Utility Fund9.73704,72984,53384,74473,296947,302Total enterprise funds50.21 $ 3,521,669 $427,977 $520,776 $347,689 $ 4,818,111Total all funds423.71 $ 30,345,776 $ 6,031,566 $ 3,555,051 $ 3,170,243 $ 43,102,636FundTown of Oro ValleyFull-time employees and personnel compensationFiscal year 2024General FundSpecial revenue fundsCapital projects fundsEnterprise funds3/22 Arizona Auditor GeneralSchedule GOfficial City/Towns Budget FormsTown of Oro Valley FY 2023/24 Adopted Budget242
Appendix | Glossary
Glossary
Accrual: Accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged. Adopted Budget: Formal action made by Town Council that sets spending limits for the fiscal year. Allocation: Assigning one or more items of cost or revenue to one or more segments of an organization according to benefits received, responsibilities, or other logical measures of use. Amortization: The systematic and rational distribution of the cost of an intangible capital asset over its estimated useful life. Appropriation: a sum of money or total of assets devoted to a special purpose. Audit: Objective examination and evaluation of the financial statements of an organization by an outside Certified Public Accountant firm to ensure that the financial records are a fair and accurate representation of the transactions. Balanced Budget: A budget in which recurring revenues equal recurring expenditures. Bond: A municipality will issue this debt instrument and agree to repay the face amount of the bond on the designated maturity date. Bonds are primarily used to finance capital projects. Budget: A financial plan consisting of an estimate of proposed expenditures and their purposes for a given period and the proposed means of financing them. Capital Expenditure: Those items valued over $1,000 with a life expectancy of at least five years. Capital Improvement Program (CIP): A comprehensive ten-year plan consisting of items costing $50,000 or more which will support the continued growth and development of the Town. Carryforward: Year-end savings that may be re-appropriated in the following fiscal year to cover one-time expenditures. Central Arizona Project (CAP): The system of aqueducts, tunnels, pumping plants and pipelines responsible for bringing Colorado River water to Arizona’s Pima, Pinal, and Maricopa counties.
Central Arizona Water Conservation District (CAWCD): A state agency with the primary responsibility of managing the Central Arizona Project (CAP). Clean Renewable Energy Bonds (CREBs): Bonds issued to finance certain renewable energy or “clean coal” facilities. Projects funded with CREBs must generate electricity and must be created from clean and/or renewable sources. Contingency: Monies set aside as carryover to the following fiscal year, but which can be used to finance unforeseen expenditures of the various operating funds. Debt Service: Principal and interest payments on outstanding bonds. Debt Service Fund: Fund used to account for accumulation of resources that will be used to pay general long-term debt. Department: A major administrative division of the Town that indicates overall management responsibility for an operation or group of related operations within a functional area. Depreciation: The systematic and rational distribution of the cost of a tangible capital asset (less salvage value) over its estimated useful life. Division: A functional unit of a department. Enterprise Fund: Accounts for expenses of programs or services, which are intended to be self-sustaining. User fees primarily cover the cost of services. Estimated Revenue: The amount of projected revenue to be collected during the fiscal year. Expenditure: The use of government funds to acquire goods or services. Expenditure Limitation: The Arizona State Legislature imposed constitutional amendment that limits the annual expenditures of all municipalities. The Economic Estimates Commission sets the annual limit based on population growth and inflation. All municipalities have the option of (Home Rule Option) proposing an alternative expenditure limitation to its voters. Oro Valley citizens approved the Home Rule Option in 2018.
243 Town of Oro Valley FY 2023/24 Adopted Budget
Appendix | Glossary
Fiscal Year: Any period of twelve consecutive months
establishing the beginning and the ending of financial transactions. For the Town of Oro Valley, this period
begins July 1 and ends June 30. Full Accrual: Basis of accounting that recognizes the financial effect of transactions, events, and interfund
activities when they occur, regardless of the timing of related cash flows. Full Time Equivalent (FTE): A position, permanent or
temporary, based on 2,080 hours per year. Part-time positions are converted for budget purposes to a
decimal equivalent of a full-time position based on 2,080 hours per year. For example, a part-time employee working 20 hours per week would be equivalent to a 0.5 FTE. Fund: A fiscal and accounting entity with a self-
balancing set of accounts recording cash and other financial resources. Fund Balance: The difference between assets and liabilities reported in a governmental fund. General Fund: A fund used to account for all general-purpose transactions of the Town that do not require a
special type of fund. General Obligation Bonds: Bonds that are guaranteed by the full taxing power of a city or town. These bonds are usually retired from property tax funds. General Plan: A plan approved by Town Council and ratified by the voters that provides the fundamental policy direction and guidance on development decisions in the Town. The General Plan is the “constitution” for growth and development in the community. GIS: Geographic Information System(s). A geographic information system is an integrated hardware, software and data system that allows for the capturing and analyzing of geographic information in forms such as maps and globes. Goal: A statement of broad direction, purpose or intent based on the needs of the community. Governmental Funds: Funds generally used to account for tax-supported activities. Examples include the general fund, special revenue funds, debt service funds, and capital projects funds.
GPF (Groundwater Preservation Fee): A fee assessed on water utility customers based on water consumption. Fees shall be used for renewable water capital costs and associated debt; renewable water supplies and related debt; and for costs to wheel Central Arizona Project water to the Town. Grant: A contribution by the state or federal government or other agency to support a particular function. Highway Users Revenue Fund (HURF): This revenue source consists of the gasoline tax collected by the state and distributed to counties and cities based on the county of origin and population. These revenues are to be used for street and highway purposes. Home Rule Option: An alternative expenditure limitation that allows a municipality to expend what it anticipates in revenues each fiscal year. This limitation must be approved by the voters and is effective for four fiscal years. Impact Fees: The fees charged to offset the cost of town improvements that are required due to growth-related development. Improvement District: A special taxing district as a means of financing the construction or improvement of local public infrastructure such as streets, water, and drainage ways. Infrastructure: Facilities that support the continuance and growth of a community. Interfund Transfer: Movement of resources between two funds. Internal Service Fund: Used to report any activity that provides goods or services to other funds, departments, or agencies on a cost-reimbursement basis. Long Term Debt: Debt with a maturity of more than one year after date of issuance. Major Fund: As defined by the Government Finance Officers Association budget award criteria, a major fund is any fund whose revenues or expenditures, excluding other financing sources and uses, constitute more than 10% of the revenues or expenditures of the appropriated budget. Modified Accrual: Basis of accounting that reports those transactions, events, and interfund activity that affect inflows and outflows of financial resources in the near future.
Town of Oro Valley FY 2023/24 Adopted Budget 244
Appendix | Glossary
Non-Major Fund: As defined by the Government Finance Officers Association budget award criteria, a
non-major fund is any fund whose revenues or expenditures, excluding other financing sources and
uses, constitute less than 10% of the revenues or expenditures of the appropriated budget.
Objective: A statement of specific measurable outcomes that contribute toward accomplishing the departmental goal. Operating Budget: Appropriations for the day-to-day costs of delivering Town services.
PAG: Pima Association of Governments. Pima County’s federally designated metropolitan planning organization that oversees long-range transportation planning and serves as the region’s water quality, air quality and solid waste management and planning
agency. PAG also manages the RTA of Pima County. Per Capita: A unit of measure that indicates the amount of some quantity per person. Performance Measures: Indicators that measure how well an organization is performing on progress towards organizational objectives. Permanent Base Adjustment: An adjustment to the state imposed expenditure limitation placed on all cities and towns based upon a 1979 formula to determine expenditure levels. Program: A group of related functions or activities performed by a division where there is a desire to budget and identify expenditures independently of other activities within the division. Proprietary Funds: Funds that either (1) operate largely on fees and charges for services to external customers or (2) operate on a cost recovery basis with internal customers, such as other government departments, divisions, or programs. Enterprise Funds and Internal Service Funds are the two types of proprietary funds. Reserves: To set aside a portion of a fund balance to protect against economic downturns or emergencies. Revenue: Amounts estimated to be received from taxes and other sources during the fiscal year. RTA: Regional Transportation Authority. The government entity that manages the $2.1 billion, 20-year regional transportation plan approved by Arizona’s Pima County voters on May 16, 2006.
Special Revenue Fund: Fund used to account for revenues from specific taxes or other earmarked revenue sources that by law are designated to finance particular functions or activities of government. State Shared Revenue: Includes the Town’s portion of state sales tax revenues, state income tax receipts, and motor vehicle taxes. Strategic Plan: A plan updated and approved every two years by Town Council that provides short-term (2 to 5-year) policy direction and guidance for decision-making and budgeting by the Town and its staff. User Fees: Fees charged for the direct receipt of a public service to the party or parties who benefit from the service.
Water Infrastructure Finance Authority Bonds (WIFA): WIFA is a state agency that has specific programs that can improve a city or town’s ability to use bonding as a revenue source. WIFA is charged to assist smaller to medium sized communities’ pool their bond issues together to help lower the costs of issuing debt. They also have monies set aside to help secure the debt and allow the bonds to be issued at the lowest interest rate possible.
245 Town of Oro Valley FY 2023/24 Adopted Budget
TOWN OF ORO VALLEY ANNUAL BUDGET FY 2020-2021
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Town of Oro Valley FY 2023/24 Adopted Budget 246