HomeMy WebLinkAboutPackets - Council Packets (1934)Town Council Meeting
Regular and Study Session
March 5, 2025
Town Council Meeting
Regular and Study Session
March 5, 2025
Town Council Meeting
Announcements
Upcoming meetings
Meetings are subject to change. Check the Town website for meeting status.
Water Utility Commission
March 10 at 5 p.m.
Hopi Conference Room
Wildfire Safety Community Q&A with Golder Ranch FD
March 14 at 3 p.m.
Council Chambers
Budget and Finance Commission
March 18 at 4 p.m.
Council Chambers
Town Council Regular Session
March 19 at 6:00 p.m.
Council Chambers
5
OV’s Path Forward
Resident Working Group Meetings
Topic: Housing
Thursday, March 6
5:30 - 7:30 PM
Online via Zoom
Topic: Economic Development
Tuesday, March 11
5:30 - 7:30 PM
Online via Zoom
Topic: Community Character/Arts & Culture
Thursday, March 13
5:30 - 7:30 PM
Online via Zoom
The community’s next 10-year action plan
OV Trails Connect
Planning for future tails and paths
Upcoming Meetings and Events
Trail Side Chat @ Vistoso Trails Nature Preserve
Thursday, March 6
8 - 11 AM
Trail Side Chat @ Bike Swap Event at Steam Pump Ranch
Saturday, March 8
9 AM - 1 PM
Trail Side Chat @ Linda Vista Trailhead
Sunday, March 9
8 - 11 AM
Trail Stakeholder Group Meeting
Wednesday, March 12
5:30 - 7:30 PM
Online via Zoom
Visit OVPathForward.com
to get involved today!
Take the Online Survey thru March 17!
Visit OVTrailsConnect.com
Get Involved in OV’s Future!
Town Council Meeting
Regular and Study Session
March 5, 2025
8
Spotlight on Youth – Riley Woznicki
Town Council Meeting
Regular and Study Session
March 5, 2025
10
Mayor and Council Reports
Town Council Meeting
Regular and Study Session
March 5, 2025
Five-Year Financial Forecast
March 5, 2025
OVERVIEW
General Fund, Highway Fund, Capital Fund, and Community Center Fund
Snapshot based upon known current information
Serves as planning document for future budgets
Forecast is updated annually as part of the budget process
Sources: University of Arizona, Joint Legislative Budget Committee, AZ
Department of Transportation, as well as the knowledge, expertise and
professional judgment by Town management and staff
OVERVIEW (continued)
Forecast shows a reduction in the excess amount that operating revenues
exceed operating expenditures in the General Fund
State shared revenues decline in FY 24/25 and FY25/26 causing total General
Fund revenue decline through FY 26/27
Street maintenance and road capital project increases
GENERAL FUND SOURCES - ASSUMPTIONS
Assumes no major economic downturns
Continued growth of 1-5% in most local sales tax categories
No new tax categories are included
Construction sales tax reflect general decline due to reduced available land for new
development
Conservative commercial permitting activity forecast
Single family residential permits
State shared revenues
Shared Income tax expected to decline in FY25/26 due to rate cap of 2.5%.
FY 23/24
Actual
FY 24/25
Forecasted
FY 25/26
Forecasted
FY 26/27
Forecasted
FY 27/28
Forecasted
FY 28/29
Forecasted
FY 29/30
Forecasted
148 114 107 97 142 130 92
GENERAL FUND SOURCES - FORECAST
Town of Oro Valley
Five-Year Forecast
FY 23/24
Actual
FY 24/25
Forecast
FY 25/26
Forecast
FY 26/27
Forecast
FY 27/28
Forecast
FY 28/29
Forecast
FY 29/30
Forecast
SOURCES
Taxes 27,494,515$ 27,374,127$ 28,843,700$ 29,212,673$ 28,246,535$ 29,984,031$ 30,051,345$
State Shared Revenue 22,785,500 20,556,368 20,349,270 21,492,689 22,471,164 23,468,909 24,512,119
Charges for Services 2,971,448 3,081,369 3,060,191 3,146,660 3,230,556 3,328,830 3,420,663
Licenses & Permits 2,122,503 1,793,735 2,153,498 1,598,946 2,143,430 1,797,258 1,581,526
Intergovernmental 2,027,141 2,141,306 2,000,471 2,019,575 2,038,871 2,058,360 2,078,043
Grants 448,272 567,929 650,003 657,190 664,493 671,912 679,451
Miscellaneous 594,658 717,680 274,857 277,605 280,381 283,185 286,017
Fines 61,640 68,000 68,680 69,367 70,060 70,761 71,469
Interest Income 716,939 750,000 637,500 586,500 598,230 610,195 622,398
Total Sources 59,222,615 57,050,514 58,038,171 59,061,206 59,743,721 62,273,440 63,303,033
GENERAL FUND
GENERAL FUND SOURCES - FORECAST
GENERAL FUND USES - ASSUMPTIONS
Employee pay adjustments and Police step increases included in all years of forecast
Very modest capacity for new FTEs
Continued capacity for normal increases in employee-related personnel costs (ERE)
Continuation of elevated PSPRS payments
O&M assumes current service levels
Transfers for CIP projects assumed at 5% of sales tax collections per Town Council financial
policies, plus all fund balance over 30% reserve excluding contingency
GENERAL FUND USES - FORECAST
Town of Oro Valley
Five-Year Forecast
FY 23/24
Actual
FY 24/25
Forecast
FY 25/26
Forecast
FY 26/27
Forecast
FY 27/28
Forecast
FY 28/29
Forecast
FY 29/30
Forecast
USES
Personnel 34,847,443 35,507,892 37,065,963 37,974,699 39,003,607 40,052,350 41,118,849
O&M 13,508,142 14,380,325 15,283,232 15,905,309 16,413,790 17,099,034 17,663,722
Capital Outlay 180,402 516,600 520,784 373,168 385,743 398,515 412,490
Transfers Out 12,274,644 9,156,345 8,878,038 4,393,071 3,475,592 4,199,514 3,614,439
Total Uses 60,810,631 59,561,162 61,748,017 58,646,247 59,278,731 61,749,412 62,809,501
Surplus/(Use of Fund Balance)(1,588,016) (2,510,648) (3,709,846) 414,959 464,990 524,028 493,532
Beginning Fund Balance 23,798,492 22,081,503 19,570,855 15,861,009 16,275,969 16,740,958 17,264,987
Ending Fund Balance 22,210,476$ 19,570,855$ 15,861,009$ 16,275,969$ 16,740,958$ 17,264,987$ 17,758,518$
Reserve as % of Expenditures 45.8%38.8%30.0%30.0%30.0%30.0%30.0%
GENERAL FUND
GENERAL FUND USES - FORECAST
GENERAL FUND FORECAST
GENERAL FUND FORECAST
HIGHWAY FUND SOURCES - ASSUMPTIONS
Arizona Department of Transportation forecasts moderate growth, 2.9 - 3.4%, in
highway user gas tax (HURF) revenues
Other revenue sources assume modest and incremental growth
Transfers in from the Capital Fund supplement HURF revenues for roadway
projects identified in the ten-year CIP
La Cañada Bridge Deck Repair - $1.7 million in FY 25/26
Rancho Vistoso Bridge Deck Repair (eastbound) - $750,000 in FY 26/27
First Avenue mill/overlay - $1.7 million in FY 27/28
Rancho Vistoso Blvd mill/overlay - $2 million in FY 28/29
Annual pavement preservation program - $3.0-$3.2 million per year
HIGHWAY FUND SOURCES - FORECAST
Town of Oro Valley
Five-Year Forecast
FY 23/24
Actual
FY 24/25
Forecast
FY 25/26
Forecast
FY 26/27
Forecast
FY 27/28
Forecast
FY 28/29
Forecast
FY 29/30
Forecast
SOURCES
State Shared Revenue 4,221,036$ 4,288,907$ 4,457,715$ 4,597,681$ 4,839,086$ 4,991,599$ 5,124,674$
Licenses & Permits 25,869 37,000 37,740 38,117 38,499 38,884 39,272
Interest Income 185,013 100,000 99,000 59,400 20,790 6,861 21,954
Miscellaneous 14,715 3,231 3,263 3,296 3,329 3,362 3,396
Transfers from Capital Fund 1,500,000 4,000,000 2,000,000 4,000,000 3,000,000 3,000,000 1,000,000
Total Sources 5,946,633 8,429,138 6,597,718 8,698,495 7,901,704 8,040,706 6,189,297
HIGHWAY FUND
HIGHWAY FUND USES - ASSUMPTIONS
Personnel and O&M figures reflect similar assumptions to General Fund
Pavement preservation funding is included at $3.0 – $3.2 million per year
Capital outlay reflects ten-year, tentative CIP schedule
HIGHWAY FUND USES - FORECAST
Town of Oro Valley
Five-Year Forecast
FY 23/24
Actual
FY 24/25
Forecast
FY 25/26
Forecast
FY 26/27
Forecast
FY 27/28
Forecast
FY 28/29
Forecast
FY 29/30
Forecast
USES
Personnel 1,241,700 1,322,820 1,361,984 1,389,299 1,417,162 1,445,585 1,474,579
O&M 1,052,092 1,256,505 1,228,817 1,212,601 1,247,398 1,283,239 1,320,155
Capital Outlay 3,921,615 5,451,000 4,425,000 6,376,800 5,512,500 5,269,315 3,189,000
Total Uses 6,215,407 8,030,325 7,015,801 8,978,699 8,177,060 7,998,139 5,983,734
Surplus/(Use of Fund Balanc (268,774)398,813 (418,083)(280,205)(275,356)42,567 205,563
Beginning Fund Balance 878,932 606,047 1,004,860 586,777 306,572 31,216 73,783
Ending Fund Balance 610,158$ 1,004,860$ 586,777$ 306,572$ 31,216$ 73,783$ 279,345$
HIGHWAY FUND
HIGHWAY FUND FORECAST
HIGHWAY FUND FORECAST
CAPITAL FUND SOURCES - ASSUMPTIONS
Capital Fund is supported by General Fund transfers, vehicle reserves for fleet
replacements, bond proceeds and grants
Miscellaneous revenues, including sale of assets and insurance recoveries held
steady in the forecast
Non-enterprise fund vehicle reserves charged to General Fund based on
replacement cost of each vehicle over useful life and includes 10% cost inflation
Transfers annually from the General Fund reflect 5% of sales tax and excess fund
balance over 30% reserve
CAPITAL FUND SOURCES - FORECAST
Town of Oro Valley
Five-Year Forecast
FY 23/24
Actual
FY 24/25
Forecast
FY 25/26
Forecast
FY 26/27
Forecast
FY 27/28
Forecast
FY 28/29
Forecast
FY 29/30
Forecast
SOURCES
Grants 420,000$ 1,000,000$ -$ -$ -$ -$ -$
Interest Income 716,598 348,382 351,866 383,534 314,498 264,178 221,910
Miscellaneous 247,745 115,000 115,000 115,000 115,000 115,000 115,000
Vehicle Reserves 892,540 933,490 961,495 1,000,340 1,040,350 1,081,560 1,124,007
Transfers from General Fund 10,000,000 7,139,787 6,586,855 2,409,162 1,631,107 2,639,802 2,052,351
Total Sources 12,276,883 9,536,659 8,015,215 3,908,036 3,100,954 4,100,541 3,513,268
CAPITAL FUND
CAPITAL FUND USES - ASSUMPTIONS
Capital outlay reflects ten-year, tentative CIP schedule
Includes $5,000,000 cash contribution towards police facility in FY26/27; no
debt issuance
New vehicle purchases (in addition to replacements) assumed at one patrol
vehicle annually
3% inflation for vehicle replacements
Transfers out to the Highway Fund for roadway CIP projects
CAPITAL FUND USES - FORECAST
Town of Oro Valley
Five-Year Forecast
FY 23/24
Actual
FY 24/25
Forecast
FY 25/26
Forecast
FY 26/27
Forecast
FY 27/28
Forecast
FY 28/29
Forecast
FY 29/30
Forecast
USES
Personnel 278,321 - - - - - -
O&M 102,004 61,403 61,703 62,012 62,330 62,658 62,658
Capital Outlay 18,199,379 8,316,569 1,730,000 8,383,500 4,029,800 3,069,500 4,076,000
Transfers to Highway Fund 1,500,000 4,000,000 2,000,000 4,000,000 3,000,000 3,000,000 1,000,000
Transfers to Grants Fund - 2,174,530 113,600 117,008 120,518 124,134 127,858
Total Uses 20,079,704 14,552,502 3,905,303 12,562,520 7,212,649 6,256,292 5,266,517
Surplus/(Use of Fund Balance)(7,802,821)(5,015,843)4,109,912 (8,654,484)(4,111,694)(2,155,751)(1,753,249)
Beginning Fund Balance 24,550,288 16,677,730 11,661,887 15,771,799 7,117,315 3,005,620 849,869
Ending Fund Balance 16,747,467$ 11,661,887$ 15,771,799$ 7,117,315$ 3,005,620$ 849,869$ (903,380)$
CAPITAL FUND
CAPITAL FUND FORECAST
CAPITAL FUND FORECAST
COMMUNITY CENTER FUND SOURCES - ASSUMPTIONS
Local sales tax figures follow same growth as General Fund for relevant categories
Conservative 1% growth for Parks & Recreation related revenues to account for
potential discretionary spending decreases as result of inflation
Golf rounds stay flat – 1% increase
HOA contributions end after FY 24/25, upon completion of five-year contracts
COMMUNITY CENTER FUND SOURCES - FORECAST
Town of Oro Valley
Five-Year Forecast
FY 23/24
Actual
FY 24/25
Forecast
FY 25/26
Forecast
FY 26/27
Forecast
FY 27/28
Forecast
FY 28/29
Forecast
FY 29/30
Forecast
SOURCES
Taxes 3,803,267$ 3,859,523$ 3,972,920$ 4,090,255$ 4,211,856$ 4,335,221$ 4,462,690$
Charges for Services 6,563,012 7,280,153 7,289,853 7,501,869 7,720,451 7,945,810 8,178,166
Interest Income 35,000 3,000 22,500 9,675 34,830 59,211 56,250
Miscellaneous 159,050 161,244 2,000 2,000 2,000 2,000 2,000
Total Sources 10,560,329 11,303,920 11,287,272 11,603,799 11,969,137 12,342,243 12,699,106
COMMUNITY CENTER FUND
COMMUNITY CENTER FUND USES - ASSUMPTIONS
Personnel and O&M figures reflect similar assumptions to General Fund
Capital outlay reflects ten-year, tentative CIP schedule
Vistoso Trails Nature Preserve maintenance at $200,000 per year through FY29,
$100,000 annually thereafter $100,000 annually for building improvements and
minor assets (non-CIP)
Debt service transfers for Parks and Recreation bonds and energy efficiency bonds
COMMUNITY CENTER FUND USES – FORECAST
Town of Oro Valley
Five-Year Forecast
FY 23/24
Actual
FY 24/25
Forecast
FY 25/26
Forecast
FY 26/27
Forecast
FY 27/28
Forecast
FY 28/29
Forecast
FY 29/30
Forecast
USES
Personnel 1,187,609 1,372,465 1,313,143 1,351,323 1,390,625 1,431,081 1,472,725
O&M 5,718,086 6,294,789 6,443,871 6,581,270 6,696,706 6,816,214 6,938,355
Capital Outlay 1,659,167 1,534,749 3,012,500 665,000 1,065,000 1,225,000 3,630,000
Debt Service (Leases)197,119 223,205 232,133 239,097 246,270 253,658 261,268
Transfers to Debt Service 1,717,149 1,716,268 1,716,268 1,711,661 1,714,810 1,709,757 1,708,502
Total Uses 10,479,130 11,141,476 12,717,915 10,548,352 11,113,411 11,435,710 14,010,850
Surplus/(Use of Fund Balance)81,199 162,444 (1,430,643) 1,055,448 855,726 906,533 (1,311,744)
Beginning Fund Balance 1,008,233 1,815,118 1,977,562 546,919 1,602,367 2,458,093 3,364,625
Ending Fund Balance 1,089,432$ 1,977,562$ 546,919$ 1,602,367$ 2,458,093$ 3,364,625$ 2,052,881$
COMMUNITY CENTER FUND
COMMUNITY CENTER FUND FORECAST
COMMUNITY CENTER FUND FORECAST
TOTAL NON-ENTERPRISE DEBT SERVICE DUE BY YEAR
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
Questions?
Town Council Meeting
Regular and Study Session
March 5, 2025
Notice of Intent to
Increase Water Rates
FY 2025-26
Peter A. Abraham, P.E.
March 5, 2025
Notice of Intent (NOI) to Increase Water Rates
45
Adoption of NOI pursuant to A.R.S. § 9-511.01
Begins formal process to increase water rates
Adoption of NOI does not increase or modify water rates
Makes the 2025 Water Rates Analysis Report available for public review
Placed in Town Clerk’s office
Placed on Water Utility website
Placed in Water Utility’s lobby
Directs the Town Clerk to publish the resolution in a newspaper of general circulation at least 20 days prior to the public hearing
Establishes a public hearing date for June 4, 2025
Rate Drivers
46
What is driving a water rate increase?
Increasing water resource costs: CAP deliveries (up $257,450 / 8.9%), Cash Firming (up $200,000)
Cash funding existing system improvements over the 5-year projection period ($10.8 M)
Cash reserve requirements
Utility must maintain an operating cash reserve requirement of 20% of personnel, O&M and debt
Cash reserves and end of FY must exceed cash reserve requirement
Water rate report is now available to the public
Proposed Potable Water Rates and Fees
Proposed Potable Water Base Rate Increase:
Water base rates increase by meter size:
84% of customers have a 5/8-inch meter and will see a $1.11 per month increase in the base rate
Proposed Potable Water Commodity Rate Increase:
Commodity rates:
The commodity rate is based on consumption tiers as shown to the right
No other proposed rate or fee increases:
Meter Size Current Proposed Monthly
(in inches)Potable Base Rates Potable Base Rates Increase
5/8 $ 22.20 $ 23.31 $ 1.11 (5%)
3/4 $ 33.27 $ 34.93 $ 1.66 (5%)
1 $ 55.46 $ 58.23 $ 2.77 (5%)
1.5 $ 110.92 $ 116.47 $ 5.55 (5%)
2 $ 177.48 $ 186.35 $ 8.87 (5%)
3 $ 354.93 $ 372.68 $ 17.75 (5%)
4 $ 554.60 $ 582.33 $ 27.73 (5%)
6 $1,109.19 $1,164.65 $ 55.46 (5%)
8 $1,774.71 $1,863.45 $ 88.74 (5%)
Commodity Tiers Current Proposed Increase
Tier 1 $ 2.92 $ 3.02 $ 0.10 (3.5%)
Tier 2 $ 4.85 $ 5.02 $ 0.17 (3.5%)
Tier 3 $ 8.17 $ 8.17 $ 0.00 (0.0%)
Tier 4 $ 12.32 $12.32 $ 0.00 (0.0%)
Potable Water Cost Comparisons
48
Monthly Water Bill Comparisons to Other Water Providers:
84% of Oro Valley Water Utility customers have a 5/8-inch meter and consume an average of 7,000 gallons per month
These customers will see an increase to their monthly bill of $1.81 or 3.6% increase
Water Provider Cost for
7,000 Gallons
Cost for
15,000 Gallons
Cost for
25,000 Gallons
Cost for
40,000 Gallons
Oro Valley Current $49.64 $96.44 $184.82 $355.57
Oro Valley Proposed $51.45 (3.6%)$99.61 (3.3%)$188.61 (2.1%)$358.91 (.9%)
Metro Water $57.10 $105.10 $179.65 $307.90
Marana Water $55.50 $104.56 $179.26 $319.81
Tucson Water $56.74 $139.10 $288.21 $581.49
Schedule
49
01/13/25 Commission made a recommendation on water rates
03/05/25 Present Notice of Intent to increase rates to Town Council
03/06/25 Publish public hearing date on Town website – 60-day notice
03/06/25 Publish Notice of Intent in newspaper – 20-day notice
06/04/25 Town Council to hold public hearing on proposed rate increase
07/05/25 New rates become effective – 30 days after adoption
50
Questions?
Town Council Meeting
Regular and Study Session
March 5, 2025
Retail and Restaurant Leakage Analysis
and Recommendations
Paul Melcher, Community and Economic Development Director
Margie Adler, Economic Development Specialist
53
Leakage Analysis Topics
Retail and Restaurant Leakage
Top 10 Categories of Retail and
Restaurant Leakage
Market Analysis of Lost Revenue
Exploring Reasons Why Oro Valley
Residents Make Purchases and
Dine Outside of Oro Valley
Conclusions and Recommendations
Dining
Retail Auto
54
Retail and Restaurant Leakage and Surplus: What is it?
A situation in which income exits an economy instead
of staying within. In retail, leakage refers to
consumers spending money outside the local market.
For instance, crossing a border to buy goods instead
of making the same purchase from local shops.
A retail surplus means that the community's trade
area is capturing the local market plus attracting non-
local shoppers.
55
Retail Gap/Leakage: Why is it important?
The Oro Valley Story: The Town of Oro Valley
relies heavily on the local retail sales and
restaurant sales taxes to support quality of life
amenities for residents, AND residents are
requesting more and higher quality amenities,
BUT the sales taxes lost from shopping outside
Oro Valley town limits the Town’s ability to meet
these needs. THEREFORE, it’s imperative that
the Town educate residents about the
importance of shopping and dining in Oro Valley
to change their spending habits.
Retail Leakage 1.1.24 – 12.31.24 Visits by
Residents Residents # Visits per
Resident
Community Shopping Centers 5,102,636 55,990 91
Fast Food & QSR 1,923,995 49,826 38
Gas Stations & Convenience Stores 1,615,002 48,502 33
Groceries 1,195,349 48,744 24
Restaurants 1,138,833 50,070 22
Superstores 862,867 45,727 18
Breakfast, Coffee, Bakeries & Dessert
Shops 735,269 42,920 17
Home Improvement 286,894 29,315 9
Car Shops & Services 284,386 32,440 8
Clothing 278,783 34,574 8
TOTAL 13,424,014 438,108
OV Resident Visits and Leakage
Supply and Demand, Leakage and Surplus
Table 4. Market Analysis of Lost Revenue by Retail/Restaurant Sector
Category Demand($)Supply($)Unmet Need($)$ Loss Est. Sales Tax Loss
Automobile Dealers 195,848,281 0 195,848,281 100%$4,896,207
Clothing Stores 20,648,843 966,022 19,682,821 95%$492,070
Gasoline Stations 101,596,062 13,502,332 88,093,730 87%N/A
Other Motor Vehicle Dealers 21,079,688 2,642,130 18,437,558 87%$460,938
Electronic Shopping & Mail-Order
Houses/Non-store Retailers 222,344,258 32,399,029 189,945,229 85%$4,748,630
Other General Merchandise Stores 125,191,908 27,447,031 97,744,877 78%$2,443,621
Limited-Service Eating Places 54,121,884 13,103,593 41,018,291 76%$1,025,457
Full-Service Restaurants 52,432,890 12,893,100 39,539,790 75%$988,494
Building Material & Supplies Dealers 83,894,282 24,021,410 59,872,872 71%$1,496,821
Health & Personal Care Stores 50,724,718 24,794,529 25,930,189 51%$648,254
TOTAL TOP TEN CATEGORIES $927,882,814 $151,769,176 $776,113,638 84%$17,200,492
TOTAL ALL CATEGORIES $1,185,659,658 $292,908,016 $892,751,642 75%N/A
58
Top 10 Sources of Leakage by Category
Community Shopping Centers
AZ Pavilions
SWC I-10 and Cortaro Road
Fast Food & Quick Service
McDonald’s
3640 W. Tangerine Rd.
Gas Stations & Convenience
Circle K
3880 W. Tangerine Rd
Groceries
Fry’s
12100 N. Thornydale Rd.
Restaurants
Guadalajara Grill
7360 N. Oracle Rd.
Home Improvement
The Home Depot
3925 W. Costco Drive
Breakfast, Coffee, Dessert
Dairy Queen
12030 N. Thornydale Rd.
Superstores
Costco
3901 W. Costco Drive
Clothing
Nordstrom Rack
4320 N. Oracle Rd.
Car Shops & Services
Precision Toyota of Tucson
700 W. Wetmore Rd.
59
Tucson Metro Area “Pull”
Tucson
(547,000)
Oro
Valley
(48,311)
Marana
(58,430)
Sahuarita
(36,356)
60
Commercial Node Pull Examples
61
Strategies and Recommendations
Education
•The WHY
•OV Values
•OV Story
Shop and
Dine Local
•Targeted
Audiences
•Year -round
Strategic
Recruiting
•Placer info
•Nodes!!!
•Best Fits
62
Gap Reduction Goal: A percentage reduction of the $776,113,638 “GAP” by shopper
recapture and recruiting specific retail/restaurant businesses to prevent leakage.
Strategies and Recommendations
% Recapture Estimated REV
Recapture
Estimated Sales Tax
Recapture
1%$7,761,136 $194,028
2%$15,522,272 $388,056
3%$23,283,409 $582,085
4%$31,044,545 $776,113
5% $38,805,681 $970,142
63
Reminder: Why is it important?
The Oro Valley Story: The Town of Oro Valley relies heavily on the local retail sales and restaurant sales taxes
to support quality of life amenities for residents, AND residents are requesting more and higher quality
amenities, BUT the sales taxes lost from shopping outside Oro Valley town limits the Town’s ability to meet
these needs. THEREFORE, it’s imperative that the Town educate residents about the importance of shopping
and dining in Oro Valley to change their spending habits.
Paul Melcher, Community and Economic Development Director
Margie Adler, Economic Development Specialist
Town Council Meeting
Regular and Study Session
March 5, 2025
Town Council Meeting
Regular and Study Session
March 5, 2025