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Home My WebLink AboutPackets - Budget and Finance Committee (65) AGENDA ORO VALLEY BUDGET AND FINANCE COMMISSION REGULAR SESSION APRIL 21, 2026 COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE REGULAR SESSION AT OR AFTER 4:00 PM CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE CALL TO AUDIENCE - at this time, any member of the public is allowed to address the Commission on any issue not listed on today’s agenda. Pursuant to the Arizona open meeting law, individual Commission members may ask Town staff to review the matter, ask that the matter be placed on a future agenda, or respond to criticism made by speakers. However, the Commission may not discuss or take legal action on matters raised during "Call to Audience." In order to speak during "Call to Audience", please specify what you wish to discuss when completing the blue speaker card. STAFF LIAISON REPORT REGULAR SESSION AGENDA 1.REVIEW AND APPROVAL OF THE MARCH 17, 2026 REGULAR SESSION MEETING MINUTES 2.PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY25/26 FINANCIAL UPDATE THROUGH JANUARY 2026 (PLEASE REFERENCE ATTACHMENTS) 3.PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY25/26 FINANCIAL UPDATE THROUGH FEBRUARY 2026 (PLEASE REFERENCE ATTACHMENTS) COUNCIL LIAISON COMMENTS ADJOURNMENT POSTED: 4/17/26 at 5:00 PM by ck POSTED: 4/17/26 at 5:00 PM by ck When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours prior to the Commission meeting in the Town Clerk's Office between the hours of 8:00 a.m. – 5:00 p.m. The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with a disability needs any type of accommodation, please notify the Town Clerk’s Office at least five days prior to the Commission meeting at 229-4700. INSTRUCTIONS TO SPEAKERS Members of the public have the right to speak during any posted public hearing. However, those items not listed as a public hearing are for consideration and action by the Commission during the course of their business meeting. Members of the public may be allowed to speak on these topics at the discretion of the Chair. If you wish to address the Commission on any item(s) on this agenda, please complete a blue speaker card located on the Agenda table at the back of the room and give it to the Recording Secretary. Please indicate on the speaker card which item number and topic you wish to speak on, or if you wish to speak during “Call to Audience,” please specify what you wish to discuss when completing the blue speaker card. Please step forward to the podium when the Chair announces the item(s) on the agenda which you are interested in addressing. 1. For the record, please state your name and whether or not you are a Town resident. 2. Speak only on the issue currently being discussed by the Commission. Please organize your speech, you will only be allowed to address the Commission once regarding the topic being discussed. 3. Please limit your comments to 3 minutes. 4. During “Call to Audience”, you may address the Commission on any issue you wish. 5. Any member of the public speaking must speak in a courteous and respectful manner to those present. Thank you for your cooperation. “Notice of Possible Quorum of the Oro Valley Town Council, Boards, Commissions and Committees: In accordance with Chapter 3, Title 38, Arizona Revised Statutes and Section 2-4-4 of the Oro Valley Town Code, a majority of the Town Council, Board of Adjustment, Historic Preservation Commission, Parks and Recreation Advisory Board, Stormwater Utility Commission, and Water Utility Commission may attend the above referenced meeting as a member of the audience only.” Budget and Finance Commission 1. Meeting Date:04/21/2026 Submitted By:Melissa Flores, Legal SUBJECT: REVIEW AND APPROVAL OF THE MARCH 17, 2026 REGULAR SESSION MEETING MINUTES RECOMMENDATION: Staff recommends approval EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to approve (approve with changes) the March 17, 2026 regular session meeting minuts Attachments Draft Minutes 031726 D R A F T MINUTES BUDGET AND FINANCE COMMISSION REGULAR SESSION MARCH 17, 2026 COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE REGULAR SESSION AT OR AFTER 4:00 PM CALL TO ORDER at 4:01 PM by Vice Chair Garland ROLL CALL Present: (Via Zoom) John Moothart, Vice Chair Joyce Garland, Member Erin Krapf, Member Absent:Eloho Okeze, Member Dan Karlsberg, Chair Staff Present: Joe Winfield, Mayor David Gephart, Chief Financial Officer Jeff Wilkins, Town Manager Wendy Gomez, Deputy Finance Director Chris Hutchison, Senior Budget Analyst PLEDGE OF ALLEGIANCE led by Vice Chair Garland CALL TO AUDIENCE - No speaker cards were received STAFF LIAISON REPORT Chief Financial Officer, David Gephart, reported the following: Congratulations to Deputy Finance Director, Wendy Gomez on achieving her Certified Public Finance Officer credential with GFOA The next Town Council Meeting will address: The Five-Year Forecast Presentation that is on this Agenda Happy Joes Pizza and Ice Cream Liquor License Approval Request Discussion and Possible Action regarding the Tourism Advisory Commission rankings of the draft Oro Valley Leisure Travel Management Plan Non-Operating recommendations At the March 4th Town Council meeting: Chief Financial Officer, David Gephart, presented the mid-year financials (to be heard this evening) Town Council approved a Notice of Intent to increase potable water base rates for next fiscal year A Reallocation of Funding request was approved to accommodate a change order for the Naranja Drive Multi-Use Path Staff received direction from Town Council on a possible traffic signal at the intersection of Tangerine Road and Musette Drive Direction to Staff regarding cellphone connectivity issues north of Tangerine Road RTA Next passed RTA Next passed REGULAR SESSION AGENDA 1.REVIEW AND APPROVAL OF THE FEBRUARY 17, 2026 REGULAR SESSION MEETING MINUTES Motion by Vice Chair (Via Zoom) John Moothart, seconded by Member Erin Krapf to approve the February 17, 2026, Regular Session Meeting Minutes Vote: 3 - 0 Carried 2.PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY25/26 FINANCIAL UPDATE THROUGH DECEMBER 2025 (PLEASE REFERENCE ATTACHMENTS) Presentation by Deputy Finance Director, Wendy Gomez. Discussion ensued amongst Staff and Commissioners 3.DISCUSSION AND POSSIBLE RECOMMENDATION OF DRAFT PSPRS PENSION FUNDING POLICY FOR FISCAL YEAR 2027 Presented by Chief Financial Officer, David Gephart. Discussion Ensued amongst Staff and Commissioners. Mayor Winfield leaves the meeting at 5:00 PM Motion by Vice Chair (Via Zoom) John Moothart, seconded by Member Erin Krapf to recommend Town Council approval of the updated PSPRS pension funding policy for the fiscal year ending June 30, 2027, as presented. Vote: 3 - 0 Carried 4.PRESENTATION AND POSSIBLE DISCUSSION REGARDING THE TOWN'S PRELIMINARY FIVE-YEAR FINANCIAL FORECAST THROUGH FY2030/2031. (Please reference attachments) Presentation by Chief Financial Officer, David Gephart. Discussion ensued amongst staff and commissioners. 5.PRESENTATION AND DISCUSSION OF BUDGET STABILIZATION PLAN Presentation by Chief Financial Officer, David Gephart. Discussion ensued amongst Staff and Commissioners. Motion by Member Erin Krapf, seconded by Vice Chair (Via Zoom) John Moothart to recommend Town Council approval of the Oro Valley Budget Stabilization Plan with recommended changes. Vote: 3 - 0 Carried COUNCIL LIAISON COMMENTS Mayor Winfield left a comment with the Recording Secretary, Melissa Flores, to inform the Commission of the upcoming Celebrate Oro Valley Concert Series and the schedule is on the website. ADJOURNMENT Motion by Member Erin Krapf, seconded by Vice Chair (Via Zoom) John Moothart to adjourn the meeting at 6:40 PM Vote: 3 - 0 Carried I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the Town of Oro Valley Budget and Finance Commission of Oro Valley, Arizona held on the 17th day of March, 2026. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 17th day of March, 2026. ___________________________ Melissa Flores Legal Secretary Budget and Finance Commission 2. Meeting Date:04/21/2026 Submitted By:Christopher Hutchison, Finance SUBJECT: PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY25/26 FINANCIAL UPDATE THROUGH JANUARY 2026 (PLEASE REFERENCE ATTACHMENTS) RECOMMENDATION: N/A EXECUTIVE SUMMARY: Please reference attachments for this item. BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments Consolidated January 2026 Monthly Financial Report Town Manager’s Office TOWN COUNCIL REPORT DATE: March 9, 2026 TO: Mayor and Council FROM: Jeff Wilkins, Town Manager David Gephart, Chief Financial Officer SUBJECT: January 2026 Financial Update This financial update is intended to provide an overview and status of revenues and expenditures for the Town’s selected funds through January 2026 for fiscal year 2025/26. Funds included in this financial update are the General Fund, Highway Fund, Community Center Fund and Capital Fund. Also included are the two enterprise funds, Water and Stormwater. Please note that all amounts are preliminary, un- audited and subject to change. Additionally, figures may not include any adjusting audit entries required at year-end. Pages 1-15 are the financial status reports for the funds. Appendix 1 and 2 provide further details on golf activity and contractor performance. Appendix 3 is the consolidated report of all Town funds. Appendix 4 is the local sales tax collections. Appendix 5 is the General Fund state shared revenues. Appendix 6 is a breakdown of the Town’s outstanding debt service principal and interest payments. Appendix 7 is a summary of operating investment values and earnings by month. Appendix 8 lists the specific infrastructure projects that are eligible to receive funding from impact fees. General Fund Financial Status Fiscal Year to Date: January 2026 Revenues ` Amount Percent Local Sales Tax 15,486,656$ 15,479,605$ 32,470,107$ (16,990,502)$ 48% 27,837,339$ State Shared Revenues 11,826,596 11,576,253 19,863,884 (8,287,631) 58% 19,809,058 Licenses & Permits 1,103,034 1,638,528 2,116,123 (477,595) 77% 2,317,479 Grants 347,386 470,572 466,851 3,721 101% 728,219 Intergovernmental 1,069,278 1,196,096 2,320,362 (1,124,266) 52% 2,320,362 Charges for Service 1,790,836 1,779,939 3,050,223 (1,270,284) 58% 3,100,270 Other Revenue 1,082,693 499,165 916,480 (417,315) 54% 924,099 Total Revenues 32,706,480$ 32,640,158$ 61,204,030$ (28,563,872)$ 53% 57,036,826$ Uses Amount Percent Personnel Services 20,114,660$ 20,988,265$ 37,457,276$ 16,469,011$ 56% 36,553,840$ Operations and Maintenance 8,464,127 8,029,382 15,317,790 7,288,408 52% 15,104,790 Capital Outlay 170,180 87,806 211,000 123,194 42% 211,000 Transfers Out 5,458,073 8,203,829 8,831,579 627,750 93% 10,831,579 Total Uses 34,207,039$ 37,309,282$ 61,817,645$ 24,508,363$ 60% 62,701,209$ Change in Fund Balance Total Revenues 32,706,480$ 32,640,158$ 61,204,030$ 57,036,826$ 57,036,826$ Total Uses (34,207,039) (37,309,282) (61,817,645) (62,701,209) (62,701,209) Change in Fund Balance (1,500,559)$ (4,669,124)$ (613,615)$ (5,664,383)$ (5,664,383)$ Beginning Fund Balance 20,702,401$ 20,702,401$ Estimated Ending Fund Balance 16,033,277$ 15,038,018$ 15,038,018$ Note: The estimated ending fund balance exceeds the Town's 25% expenditure reserve policy by a margin of about $2.1 million. Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2025/26 Budget Year End Estimate Year End Estimate 58% through the fiscal year (Period 7 of 12)Page 1 of 14 General Fund Financial Status Fiscal Year to Date: January 2026 Local Sales Tax Revenue Amount Percent Construction 2,570,423$ 1,184,296$ 5,086,266$ (3,901,970)$ 23% 2,130,135$ Utilities 2,523,903 2,480,187 4,316,890 (1,836,703) 57% 3,870,678 Retail 5,485,324 6,514,006 11,836,368 (5,322,362) 55% 11,362,477 Remote Seller 1,105,720 1,523,224 2,444,773 (921,549) 62% 2,794,466 Bed Tax 1,240,940 891,535 2,464,858 (1,573,323) 36% 1,890,713 Restaurant & Bar 1,583,329 1,838,022 3,726,636 (1,888,614) 49% 3,392,362 Other 810,097 884,080 1,941,265 (1,057,185) 46% 1,743,456 Cable Franchise 166,920 164,255 653,051 (488,796) 25% 653,051 Local Sales Tax Total 15,486,656$ 15,479,605$ 32,470,107$ (16,990,502)$ 48% 27,837,339$ State Shared Revenue Amount Percent State Income Tax 5,994,975$ 5,554,887$ 9,522,662$ (3,967,775)$ 58% 9,522,662$ State Sales Tax 4,309,883 4,376,519 7,376,599 (3,000,080) 59% 7,376,599 Vehicle License Tax 1,383,562 1,513,705 2,629,797 (1,116,092) 58% 2,629,797 Smart and Safe 138,177 131,143 334,826 (203,683) 39% 280,000 State Shared Total 11,826,596$ 11,576,253$ 19,863,884$ (8,287,631)$ 58% 19,809,058$ Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Total state shared revenues are performing in line with expectations with the exception of Smart & Safe revenues. Smart & Safe distributions occur twice per year, and the first payment was lower than the prior year. Although statewide marijuana sales tax collections are up compared to last year, distributions to cities and towns may decline because revenues are first applied to cover state administrative and enforcement costs before being allocated to cities and towns. Overall, Local sales tax revenues are forecasted to fall short of budget expectations by $4.0 million or 12.4%. Collections decreased 9.4% compared to the same period last year, primarily reflecting reduced activity in the construction and hotel sectors, including project delays at the Marketplace hotel and Vistoso Golf Club apartment developments. Construction-related revenues have begun to recover in recent months from the Oro Valley Marketplace apartment project and Roche Ventana building renovations, with this trend expected to continue through year-end. Restaurant and bar collections came in 2% below prior year through January, falling short of growth assumptions and resulting in a year-end estimate approximately 6% below budget. Retail and remote seller collections continue to perform consistently. Please refer to Appendix 4 for a detailed breakdown of local sales tax collections. FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Year End Estimate $5.6 $4.4 $1.5 $0.1 $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 State Income Tax State Sales Tax Vehicle License Tax Smart and Safe Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget $1.2 $2.5 $6.5 $1.5 $0.9 $1.8 $0.9 $0.2$0 $2 $4 $6 $8 $10 $12 $14 Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget 58% through the fiscal year (Period 7 of 12)Page 2 of 14 General Fund Financial Status Fiscal Year to Date: January 2026 Licenses & Permits Revenue Amount Percent Business Licenses & Permits 183,417$ 146,556$ 255,000$ (108,444)$ 57% 229,304$ Residential Building Permits 581,459 1,007,368 908,066 99,302 111% 1,346,042 Commercial Building Permits 203,905 287,630 750,077 (462,447) 38% 452,101 Other Building Permits and Fees 134,254 196,973 202,980 (6,007) 97% 290,032 Licenses & Permits Total 1,103,034$ 1,638,528$ 2,116,123$ (477,595)$ 77% 2,317,479$ Grants Revenue Amount Percent Federal grants 303,683$ 367,713$ 375,000$ (7,287)$ 98% 581,368$ State Grants 43,703 102,859 91,851 11,008 112% 146,851 Grants Total 347,386$ 470,572$ 466,851$ 3,721$ 101% 728,219$ FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget A total of 61 Single Family Residential (SFR) permits have been issued through January (107 budgeted for the year). Licenses and permits revenue is projected to exceed budget by 9.5%, driven by stronger building permit activity, partially offset by a reduction in the business license and permit forecast due to FY25 actuals coming in below estimates. Year End Estimate Grant revenues continue to perform better than expected. A significant portion of budgeted grants are allocated to the Police Department, and these can fluctuate based on factors such as officer scheduling, overtime, and the timing of reimbursements and awards. The federal grant forecast has been increased by 55%, reflecting HIDTA program funding and Department of Homeland Security grants. The year-end estimate for miscellaneous state grants was increased by $30,000 due to DPS Vehicle Theft Task Force grant funds. Approximately $72,000 in budgeted state grants remain tied to school resource officer reimbursements for Leman Academy. $0.1 $1.0 $0.3 $0.2 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 Business Licenses & Permits Residential Building Permits Commercial Building Permits Other Building Permits and Fees Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget $0.4 $0.1 $0.0 $0.1 $0.2 $0.3 $0.4 Federal grants State Grants Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget 58% through the fiscal year (Period 7 of 12)Page 3 of 14 General Fund Financial Status Fiscal Year to Date: January 2026 Intergovernmental Revenue Amount Percent School Resource Officers 94,776$ 151,437$ 409,502$ (258,065)$ 37% 409,502$ RTA Reimbursements 974,502 1,044,659 1,904,860 (860,201) 55% 1,904,860 PC Library District Reimburse - - 6,000 (6,000) - 6,000 Intergovernmental Total 1,069,278$ 1,196,096$ 2,320,362$ (1,124,266)$ 52% 2,320,362$ Charges for Service Revenue Amount Percent Enterprise Funds Cost Allocation 992,693$ 957,452$ 1,641,347$ (683,895)$ 58% 1,641,347$ Recreation Fees 559,393 538,620 978,950 (440,330) 55% 1,009,434 Development Fees 46,833 78,477 90,110 (11,633) 87% 120,110 Court Fees 65,181 66,349 115,000 (48,651) 58% 115,000 Other 126,736 139,040 224,816 (85,776) 62% 214,379 Charges for Service Total 1,790,836$ 1,779,939$ 3,050,223$ (1,270,284)$ 58% 3,100,270$ FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2025/26 Budget Actual Vs. Budget Year End Estimate Year End Estimate Intergovernmental revenues are performing in line with expectations. These revenues are reimbursement-based and typically lag between the time services are provided and when funds are received. FY 2024/25 Actuals FY 2025/26 Actuals Charges for services are performing slightly greater than expectations. Cost allocation charges to the Town’s enterprise funds for shared services, along with Parks & Recreation fees, represent the majority of this revenue category. The enterprise fund allocations are budgeted amounts distributed evenly across all 12 months. The year-over-year decrease is mainly due to one- time water system monitoring upgrades in the prior year that were funded through the IT budget and charged to the Water Utility. Recreation fee revenues were revised up 3.1% over budget, reflecting greater field and court rentals than originally anticipated. Development fee revenues were increased by $30,000 due to higher-than-expected engineering plan review fees related to the Marketplace development. $0.2 $1.0 $0.0 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 School Resource Officers RTA Reimbursements PC Library District Reimburse Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget $1.0 $0.5 $0.1 $0.1 $0.1 $0.0 $0.5 $1.0 $1.5 $2.0 Enterprise Funds Cost Allocation Recreation Fees Development Fees Court Fees Other Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget 58% through the fiscal year (Period 7 of 12)Page 4 of 14 General Fund Financial Status Fiscal Year to Date: January 2026 Other Revenue Amount Percent Fines 39,381$ 30,263$ 68,680$ (38,417)$ 44% 56,000$ Interest Earnings 492,491 397,954 637,500 (239,546) 62% 650,000 Miscellaneous 550,821 70,948 210,300 (139,352) 34% 218,099 Other Revenue Total 1,082,693$ 499,165$ 916,480$ (417,315)$ 54% 924,099$ FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Year End Estimate Other revenues are performing above expectations overall, driven by stronger interest earnings, insurance recoveries, and asset sales. The year-over-year decrease in miscellaneous revenue is due to a one-time AMRRP rebate received in the prior year that did not recur. The year-end estimate for in-lieu income has been reduced based on collections through January trending approximately 22% below the prior year, resulting in a modest unfavorable variance to budget. $0.0 $0.4 $0.1 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 Fines Interest Earnings Miscellaneous Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget 58% through the fiscal year (Period 7 of 12)Page 5 of 14 General Fund Financial Status Fiscal Year to Date: January 2026 Expenditures by Department Amount Percent Clerk 311,549$ 247,339$ 446,275$ 198,936$ 55% 434,253$ Community & Econ. Dev. 2,066,411 1,977,942 4,275,011 2,297,069 46% 3,990,726 Council 153,662 145,429 216,163 70,734 67% 216,163 Finance 506,870 484,836 870,300 385,464 56%886,108 Non-Departmental 1,929,840 1,945,665 3,052,282 1,106,617 64% 3,052,282 Human Resources 403,346 409,720 744,887 335,167 55% 738,643 Information Technology 3,751,704 3,620,941 5,925,996 2,305,055 61% 5,795,867 Legal 637,605 546,111 1,193,587 647,476 46% 949,558 Town Manager 966,733 964,277 1,812,726 848,449 53% 1,785,399 Parks & Recreation 2,687,070 2,588,980 5,230,510 2,641,530 49% 5,071,840 Police 11,350,073 12,144,732 21,333,810 9,189,078 57% 21,083,750 Public Works 3,425,005 3,434,691 6,702,762 3,268,071 51% 6,731,762 Town Court 559,099 594,790 1,181,757 586,967 50% 1,133,279 Total Department Expenditures 28,748,966$ 29,105,453$ 52,986,066$ 23,880,613$ 55% 51,869,630$ Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget $0.2 $2.0 $0.1 $0.5 $1.9 $0.4 $3.6 $0.5 $1.0 $2.6 $12.1 $3.4 $0.6 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Overview: Departments are spending within budget limits through January. Please note that Council and Information Technology typically incur higher upfront costs early in the fiscal year. Community & Economic Development: Year-to-date personnel expenditures are below budget expectations due to turnover in two Building Inspector positions, the Economic Development Program Manager, and a vacancy in the Code Compliance Specialist position. Year-to-date operating expenditures are also below budget, primarily due to timing within the in-house Economic Development and Tourism program, where several planned initiatives have not yet begun. Finance: Personnel costs are projected to exceed budget by approximately $16,000 due to a three-month overlap in the accounting specialist position, allowing time to train the new employee who replaced a retiring staff member. Legal: Personnel costs are trending below budget expectations and are projected to finish approximately 22% under budget, primarily due to current vacancies in the Town Attorney and Chief Civil Deputy Attorney positions. Police: The year-over-year increase is mainly due to an additional quarterly pension contribution to the Public Safety Personnel Retirement System (PSPRS) that was recorded at the beginning of FY26 but applied to the prior fiscal year (FY25), along with increased personnel costs from wage adjustments outlined in the most recent labor agreement. The department is still forecasted to be within budget due to vacancy savings and benefit election differences from budget. Public Works: Transit personnel costs are projected to exceed budget by $29,000 (0.7%) due to higher ridership demand requiring additional driver hours. Please note, however, that Transit costs are reimbursed to the Town by the RTA. 58% through the fiscal year (Period 7 of 12)Page 6 of 14 Highway Fund Financial Status Fiscal Year to Date: January 2026 Sources ` Amount Percent Licenses & Permits 23,093$ 21,532$ 30,000$ (8,468)$ 72% 40,000$ Highway User Revenue 2,415,439 2,431,423 4,456,367 (2,024,944) 55% 4,290,852 Interest Earnings 59,632 79,400 99,000 (19,600) 80% 140,000 Miscellaneous 2,835 39,182 2,500 36,682 1567% 50,489 Transfers In 2,000,000 1,000,000 2,000,000 (1,000,000) 50% 2,000,000 Total Sources 4,500,999$ 3,571,537$ 6,587,867$ (3,016,330)$ 54% 6,521,341$ Expenditures Amount Percent Personnel 752,747$ 773,070$ 1,348,218$ 575,148$ 57% 1,350,500$ O&M 614,942 604,355 1,317,935 713,580 46% 1,283,443 Capital Outlays 2,135,130 1,977,377 4,790,000 2,812,623 41% 4,790,000 Total Expenditures 3,502,819$ 3,354,802$ 7,456,153$ 4,101,351$ 45% 7,423,943$ Change in Fund Balance Total Sources 4,500,999$ 3,571,537$ 6,587,867$ 6,521,341$ Total Expenditures (3,502,819) (3,354,802) (7,456,153) (7,423,943) Change in Fund Balance 998,180$ 216,735$ (868,286)$ (902,603)$ Beginning Fund Balance 1,598,787$ 1,598,787$ Estimated Ending Fund Balance 1,815,522$ 696,184$ Year End Estimate Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Highway Fund revenues and expenditures are performing generally in line with expectations through January. Due to HURF trending below projections, the fund balance is expected to end about $67,000 less than budgeted. Revenues: Highway User Revenue (HURF) is currently coming in slightly under budget projections. In contrast, interest earnings and revenue from licenses and permits are outperforming budget estimates. Miscellaneous revenues are above budget, driven by insurance reimbursements and proceeds from asset sales. The scheduled $2 million transfer from the Capital Fund is allocated to support road improvement projects and is recognized evenly over the course of the fiscal year. Expenditures: Personnel expenditures are projected to exceed budget by approximately 0.2%, primarily due to adjustments to maximum pay ranges in the adopted pay plan that were not included in the original personnel forecast. Budgeted capital outlays include the Town’s annual pavement preservation program and several capital improvement projects. 58% through the fiscal year (Period 7 of 12)Page 7 of 14 Community Center Fund Financial Status Fiscal Year to Date: January 2026 Revenues Amount Percent Local Sales Tax 2,242,615$ 593,099$ -$ 593,099$ na 593,099$ Contracted Operating Revenues 3,181,134 3,482,420 5,625,078 (2,142,658) 62% 6,604,000 Town Operating Revenues 785,153 813,300 1,534,043 (720,743) 53% 1,605,076 Other Revenues 5,348 34,256 60,172 (25,916) 57% 87,700 Total Revenues 6,214,250$ 4,923,074$ 7,219,293$ (2,296,219)$ 68% 8,889,875$ Uses Amount Percent Contracted Operating Expenditures 3,304,286$ 3,328,930$ 5,728,637$ 2,399,707$ 58% 5,989,482$ Town Operating Expenditures 1,279,986 1,308,325 2,427,461 1,119,136 54% 2,439,344 Capital Outlay 675,091 516,985 2,408,700 1,891,715 21% 2,408,700 Transfers Out 1,717,149 172,968 172,968 - 100% 172,968 Total Uses 6,976,512$ 5,327,209$ 10,737,766$ 5,410,557$ 50% 11,010,494$ Change in Fund Balance Total Revenues 6,214,250$ 4,923,074$ 7,219,293$ 8,889,875$ Total Uses (6,976,512) (5,327,209) (10,737,766) (11,010,494) Change in Fund Balance (762,262)$ (404,135)$ (3,518,473)$ (2,120,619)$ Beginning Fund Balance 2,921,900$ 2,921,900$ Estimated Ending Fund Balance 2,517,765$ 801,281$ Supplemental: Operating Analysis Amount Percent Golf Contractor Operating Revenues $ 3,181,134 $ 3,482,420 $ 5,625,078 (2,142,658)$ 62% $ 6,604,000 Operating Expenditures 3,304,286 3,328,930 5,728,637 (2,399,707) 58% 5,989,482 Net Operating Income (123,152)$ 153,490$ (103,559)$ 257,049$ -148% 614,518$ Town Operations Operating Revenues $ 785,153 $ 813,300 $ 1,534,043 (720,743)$ 53% $ 1,605,076 Operating Expenditures 1,279,986 1,308,325 2,427,461 (1,119,136) 54% 2,439,344 Net Operating Income (494,833)$ (495,026)$ (893,418)$ 398,392$ 55% (834,268)$ Year End Estimate Year End Estimate Actual Vs. Budget Year End Estimate The following presents operating revenues and expenditures for the Golf Contractor and Town Operations separately. This section excludes Local Sales Tax, Capital Outlay, and Transfers Out, which are reported at the fund level above. FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget FY 2025/26 Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals 58% through the fiscal year (Period 7 of 12)Page 8 of 14 Community Center Fund Financial Status Fiscal Year to Date: January 2026 Local Sales Tax Revenue Amount Percent Retail 1,371,331$ 367,836$ -$ 367,836$ - 367,836$ Remote Seller 276,430 79,650 - 79,650$ - 79,650 Restaurant & Bar 395,832 101,493 - 101,493 - 101,493 Other 199,022 44,120 - 44,120 - 44,120 Local Sales Tax Total 2,242,615$ 593,099$ -$ 593,099$ - 17,011,251$ Contracted Operating Revenue Amount Percent Golf Revenue, Trail & Cart Fees 1,517,130$ 1,685,682$ 2,818,625$ (1,132,943)$ 60% 3,424,000$ Member Dues 992,324 1,119,605 1,590,560 (470,955) 70%1,800,000 Food & Beverage (Overlook) 447,816 487,213 814,633 (327,420) 60%924,000 Merchandise & Other 223,863 189,919 401,260 (211,341) 47% 456,000 Contracted Revenue Total 3,181,134$ 3,482,420$ 5,625,078$ (2,142,658)$ 62% 6,604,000$ Actual Vs. Budget Year End Estimate Year End Estimate Actual Vs. Budget Contracted golf revenues are forecasted to exceed budget by approximately $979,000, or 17%, driven by strong membership numbers and increased public play. Through January, 59,068 rounds have been played, which is essentially in line with the prior year, reflecting a 0.04% increase, and exceeding budget expectations by 8.3%. Please refer to Appendix 3 for or a more in-depth analysis of golf revenues, expenses, and historical comparisons Note: Estimated sales tax collections on golf operations for FY 2025/26 is $174,562. On August 13, 2025, the Town Council adopted Ordinance (O)25-04, removing the spending restrictions on the half-cent sales tax and redirecting those revenues to the General Fund, effective 30 days later in September. Accordingly, the FY 2025/26 actual revenues shown here reflect only the first two months of the fiscal year, during which the restriction was still in place. Any operating shortfalls within this fund will be covered by transfers from the General Fund at year-end. For detailed information on total local sales tax collections, please refer to Appendix 4. FY 2025/26 Budget FY 2025/26 Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2024/25 Actuals FY 2025/26 Actuals $1.7 $1.1 $0.5 $0.2 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 Golf Revenue, Trail & Cart Fees Member Dues Food & Beverage (Overlook) Merchandise & Other Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget $0.4 $0.1 $0.1 $0.0 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 Retail Remote Seller Restaurant & Bar Other Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget 58% through the fiscal year (Period 7 of 12)Page 9 of 14 Community Center Fund Financial Status Fiscal Year to Date: January 2026 Town Operating Revenue Amount Percent Daily Drop-Ins 41,128$ 33,417$ 75,625$ (42,208)$ 44% 63,233$ Member Dues 595,147 644,895 990,420 (345,525) 65% 1,103,100 Recreation Programs 95,100 75,493 382,500 (307,007) 20% 330,884 Facility Rental Income 53,777 59,494 85,498 (26,004) 70% 107,860 Town Operating Revenue Total 785,153$ 813,300$ 1,534,043$ (720,743)$ 53% 1,605,076$ Other Revenue Amount Percent Interest Income 2,961$ 34,170$ 22,500$ 11,670$ 152% 50,000 HOA Contributions - - 34,050 (34,050) - 34,050 Miscellaneous 2,387 86 3,622 (3,536) 2% 3,650 Other Revenue Total 5,348$ 34,256$ 60,172$ (25,916)$ 57% 87,700$ Year End Estimate The FY 2025/26 HOA contribution budget pertains to the HOAs associated with the 9-hole Pusch Ridge course. FY 2025 was the final year of agreed upon annual contributions to golf from HOAs on the 36-hole course. Due to stronger-than-anticipated interest income, the year-end estimate has been revised upward to $50,000. FY 2025/26 Budget Actual Vs. Budget FY 2025/26 Budget Actual Vs. Budget Year End Estimate Town operating revenues are generally trending above budget, with daily drop-in fees and in-house recreation programs below budget and offset by higher-than- expected member dues. Year-end estimates, incorporating Town Council–approved rate increases effective January 1, 2026, reflect lower anticipated revenues from membership dues and recreation programs, partially offset by slight increases in daily drop-ins and facility rental income. Trends and year-end estimates are consistent with last month's report. FY 2025/26 Actuals FY 2024/25 Actuals FY 2025/26 Actuals FY 2024/25 Actuals $0.0 $0.6 $0.1 $0.1 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 Daily Drop-Ins Member Dues Recreation Programs Facility Rental Income Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget $0.0 $0.0 $0.0 $0.0 $0.1 Interest Income HOA Contributions Miscellaneous Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget 58% through the fiscal year (Period 7 of 12)Page 10 of 14 Community Center Fund Financial Status Fiscal Year to Date: January 2026 Contracted Operating Expenditures Amount Percent Personnel 1,120,900$ 1,166,432$ 1,992,268$ 825,836$ 59% 2,063,000$ Food & Beverage (Overlook) 417,376 433,489 751,271 317,782 58% 837,000 Operations & Maintenance 1,671,112 1,621,377 2,768,538 1,147,161 59% 2,849,678 Equipment Leases 94,898 107,631 216,560 108,929 50% 239,804 Contracted Expenditures Total 3,304,286$ 3,328,930$ 5,728,637$ 2,399,707$ 58% 5,989,482$ Town Operating Expenditures Amount Percent Personnel 745,388$ 698,776$ 1,303,239$ 604,463 54% 1,300,447$ Operations & Maintenance 534,597 609,549 1,124,222 514,673 54% 1,138,897 Town Operating Expenditures Total 1,279,986$ 1,308,325$ 2,427,461$ 1,119,136$ 54% 2,439,344$ FY26 Revised Budget Artificial Turf Installation at Community Center Entrance 150,000 Community Center Exterior Stucco Repair and Painting 190,500 Community Center Parking Lot Resurface 950,000 CRC ADA Exterior Restroom 325,000 Greenmaster Mower Replacement x2 (36-Hole)120,000 South Pump Station (36 Hole) 510,000 Pusch Ridge Tennis Bleachers and ADA Accessibility 163,200 2,408,700 Year End Estimate Contracted golf operating expenditures rose 0.7% year-over-year, driven mainly by increased labor, maintenance supplies, and lease costs, partially offset by reductions in water expenses. Expenses are projected to exceed the budget by approximately $261,000, or 4.6%, driven by higher merchandise sales costs, increased labor expenses, and additional equipment and grounds maintenance costs. List of FY26 Capital Projects: Year End Estimate Town operating expenditures are trending above budget, primarily due to higher credit card merchant fees, partially offset by modest projected savings in personnel costs. FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget $0.7 $0.6 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 Personnel Operations & Maintenance Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget $1.2 $0.4 $1.6 $0.1 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 Personnel Food & Beverage (Overlook) Operations & Maintenance Equipment Leases Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget 58% through the fiscal year (Period 7 of 12)Page 11 of 14 Capital Fund Financial Status Fiscal Year to Date: January 2026 Sources ` Amount Percent Vehicle Reserves 544,536$ 600,207$ 1,028,926$ (428,719)$ 58% Interest Earnings 365,984 335,581 470,000 (134,419) 71% Miscellaneous 37,656 86,164 40,000 46,164 215% Transfers In from General Fund 3,569,894 4,500,000 5,000,000 (500,000) 90% Total Sources 4,518,069$ 5,521,952$ 6,538,926$ (1,016,974)$ 84% Uses Amount Percent O&M 113,261$ 22,205$ -$ (22,205)$ na Capital Outlays 2,935,833 6,612,394 11,867,973 5,255,579 56% Transfers Out 2,000,000 1,059,109 2,234,200 1,175,091 47% Total Uses 5,049,094$ 7,693,708$ 14,102,173$ 6,408,465$ 55% Change in Fund Balance Total Sources 4,518,069$ 5,521,952$ 6,538,926$ Total Uses (5,049,094) (7,693,708) (14,102,173) Change in Fund Balance (531,026)$ (2,171,756)$ (7,563,247)$ Beginning Fund Balance 16,847,866$ Estimated Ending Fund Balance 9,284,619$ FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Sources: Quarterly transfers in from the General Fund support capital improvement projects as budgeted. A one-time additional transfer of $2 million resulted from Town Council's direction to reduce the General Fund reserve from 30% to 25%. In addition, an annual reserve for vehicle replacement is established based on the purchase price and expected lifespan of Town-owned vehicles. This reserve is allocated evenly over twelve months and charged to the General Fund each month. Uses: O&M costs reflect the purchase of smaller, non-capitalized equipment used to outfit new Police vehicles. Capital outlays through January consist primarily of the Council-directed purchase of a building for the planned new Police Headquarters (approximately $3.8 million), along with related urgent building maintenance and inspection costs, the finalization of the Town Court expansion project, the VTNP Pond Restoration project, and planned Police vehicle replacements. The budget also includes $2 million in transfers to the Highway Fund for capital improvement projects, recorded evenly across four quarters. An additional $234,200 is budgeted for transfer to the Grants Fund to cover the Town’s 20%match for transit vehicles funded primarily through federal grants. 58% through the fiscal year (Period 7 of 12)Page 12 of 14 Water Utility Fund Financial Status Fiscal Year to Date: January 2026 Revenues ` Amount Percent Water Sales 11,023,939$ 11,550,399$ 18,511,000$ (6,960,601)$ 62% 18,752,246$ Charges For Services 2,028,799 2,043,218 3,457,000 (1,413,782) 59% 3,428,800 Interest Earnings 181,450 247,049 100,000 147,049 247% 400,000 Miscellaneous 46,766 17,681 20,000 (2,319) 88% 21,047 Total Revenues 13,280,953$ 13,858,348$ 22,088,000$ (8,229,652)$ 63% 22,602,093$ Uses Amount Percent Personnel 2,067,853$ 2,012,450$ 3,985,725$ 1,973,275$ 50% 3,807,621$ O&M 6,267,448 5,818,806 11,552,175 5,733,369 50% 11,367,287 Capital Outlays 893,302 995,385 2,327,639 1,332,254 43% 2,330,896 Debt Service 3,254,278 3,695,379 3,890,977 195,598 95% 3,890,977 Transfers Out 2,333 2,712,816 9,883,004 7,170,188 27% 9,883,004 Total Uses 12,485,215$ 15,234,835$ 31,639,520$ 16,404,685$ 48% 31,279,785$ Note: Excludes non-cash outlays for depreciation & amortization Change in Fund Balance Total Revenues 13,280,953$ 13,858,348$ 22,088,000$ 22,602,093$ Total Uses (12,485,215) (15,234,835) (31,639,520) (31,279,785) Change in Fund Balance 795,739$ (1,376,487)$ (9,551,520)$ (8,677,692)$ Beginning Fund Balance 14,762,151$ 14,762,151$ Estimated Ending Fund Balance 13,385,664$ 6,084,459$ Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Year End Estimate Revenues: Water sales are trending above budget, primarily driven by higher irrigation and commercial water sales. Charges for services are expected to fall below budget projections due to fewer late fees than anticipated. Interest earnings are surpassing budget estimates as a result of interest generated from invested bond and loan proceeds, with the year-end forecast increased to $400,000. Miscellaneous revenues are projected to exceed budget expectations due to insurance recoveries. Uses: Personnel: Expenditures are trending below budget due to vacancies in several positions, including two Water Utility Operators, a Water Operations Supervisor, and a Water Control Systems Supervisor. Operations & Maintenance: Projected savings in CAP water deliver charges and gasoline. Debt Service: The full annual principal payment is recorded at the beginning of the fiscal year, while interest payments occur semiannually in January and June. A detailed schedule of outstanding debt issuances is provided in Appendix 6. Transfers Out: Transfers are primarily to the Water Resource Impact Fee Fund to support NWRRDS capital projects and represent 40% of groundwater preservation fee revenues. This transfer is recorded at year-end and may vary based on actual revenue collections. A smaller transfer of $3,004 was made to the Debt Service Fund for debt repayment. 58% through the fiscal year (Period 7 of 12)Page 13 of 14 Stormwater Utility Fund Financial Status Fiscal Year to Date: January 2026 Revenues ` Amount Percent Charges For Services 920,531$ 926,780$ 1,527,000$ (600,220)$ 61% 1,543,429$ Grants - - 239,200 (239,200) - - Interest Earnings 25,497 27,164 20,000 7,164 136% 48,000 Total Revenues 946,028$ 953,945$ 1,786,200$ (832,255)$ 53% 1,591,429$ Expenses Amount Percent Personnel 542,860$ 532,716$ 990,258$ 457,542$ 54% 964,105$ O&M 173,226 194,892 424,755 229,863 46% 385,661 Capital Outlays - - 738,000 738,000 - 50,000 Total Expenses 716,086$ 727,608$ 2,153,013$ 1,425,405$ 34% 1,399,766$ Note: Excludes non-cash outlays for depreciation Change in Fund Balance Total Revenues 946,028$ 953,945$ 1,786,200$ 1,591,429$ Total Expenses (716,086) (727,608) (2,153,013) (1,399,766) Change in Fund Balance 229,942$ 226,337$ (366,813)$ 191,662$ Beginning Fund Balance 1,447,723$ 1,447,723$ Estimated Ending Fund Balance 1,674,060$ 1,639,386$ Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Year End Estimate Revenues: Charges for service are trending slightly higher than budget (1.1%). Budgeted grant revenue consists of a federal grant supporting the Sierra Wash at Glover Road Infrastructure Repair and Rehabilitation capital project which will likely not be received until next fiscal year. Interest earnings are projected to outperform budget by $28,000, or 140%. Expenses: Personnel: Savings are expected due to the Senior Engineering Associate position being vacant for 1.5 months and filled at a lower rate than budgeted. Operations & Maintenance: Savings are anticipated in outside professional service, gasoline and vehicle repair and maintenance. Capital Outlays: Budgeted capital expenditures include general infrastructure maintenance and three major capital improvement projects: - Sierra Wash at Glover Road Infrastructure Repair and Rehabilitation ($318,000) - Sierra Wash at Via Mandarina Drainage Improvements ($50,000) - Oro Valley Drive Drainage and Pavement Improvements ($300,000) The Oro Valley Drive Drainage and Pavement Improvements project ($300,000) was taken over by Pima County and has been removed from the year-end estimate. Sierra Wash at Glover Road will likely be delayed into FY27 awaiting a grant. 58% through the fiscal year (Period 7 of 12)Page 14 of 14 APPENDIX 1 El Conquistador Golf Mgmt., LLC Report Date: 1/31/2026 El Conquistador Golf Course Jan - 2026 Budget Jan - 2025 Bud Var PY Var Jan - 2026 Budget Jan - 2025 Bud Var PY Var Rounds Public 6,560 5,500 5,778 1,060 782 30,286 25,250 27,954 5,036 2,332 Member 4,930 4,200 5,025 730 (95) 26,424 25,065 26,435 1,359 (11) Tournament 238 650 852 (412) (614) 2,358 4,205 4,656 (1,847) (2,298) Total Rounds 11,728 10,350 11,655 1,378 73 59,068 54,520 59,045 4,548 23 Membership Fees 169,513.80 146,500.00 154,192.94 23,013.80 15,320.86 1,119,605.21 931,500.00 992,324.42 188,105.21 127,280.79 Total Membership Revenue 169,513.80 146,500.00 154,192.94 23,013.80 15,320.86 1,119,605.21 931,500.00 992,324.42 188,105.21 127,280.79 Sales - Green Fees 306,673.74 215,000.00 239,839.87 91,673.74 66,833.87 1,271,173.03 959,750.00 1,075,954.56 311,423.03 195,218.47 Sales - Tournament 8,297.40 25,000.00 36,217.45 (16,702.60) (27,920.05)88,420.94 163,000.00 189,016.03 (74,579.06) (100,595.09) Sales - Member Rounds 342.00 350.00 557.91 (8.00) (215.91)4,060.00 1,950.00 2,267.87 2,110.00 1,792.13 Lessons & Clinics 165.00 3,000.00 935.00 (2,835.00) (770.00)7,255.92 16,000.00 12,450.00 (8,744.08) (5,194.08) Range, Rental & Other Golf Related 11,805.54 12,125.00 20,084.88 (319.46) (8,279.34)75,748.65 54,200.00 81,433.47 21,548.65 (5,684.82) Cart Fees 35,003.73 34,350.00 35,657.06 653.73 (653.33)239,023.52 200,350.00 220,330.37 38,673.52 18,693.15 Golf Fees Revenue 362,287.41 289,825.00 333,292.17 72,462.41 28,995.24 1,685,682.06 1,395,250.00 1,581,452.30 290,432.06 104,229.76 Sales - Soft Goods 15,285.36 14,675.00 14,405.72 610.36 879.64 80,785.91 88,835.00 93,746.82 (8,049.09) (12,960.91) Sales - Hard Goods 13,138.01 8,200.00 11,027.30 4,938.01 2,110.71 80,399.30 59,000.00 67,965.44 21,399.30 12,433.86 Merchandise Revenue 28,423.37 22,875.00 25,433.02 5,548.37 2,990.35 161,185.21 147,835.00 161,712.26 13,350.21 (527.05) Other Revenue 1,361.84 500.00 (5,588.41)861.84 6,950.25 13,595.22 14,500.00 (2,170.83) (904.78)15,766.05 Other Revenue 1,361.84 500.00 (5,588.41)861.84 6,950.25 13,595.22 14,500.00 (2,170.83) (904.78)15,766.05 Sales - Food 34,803.93 575.00 37,792.89 34,228.93 (2,988.96)230,948.10 2,825.00 229,513.73 228,123.10 1,434.37 Sales - Beer 24,258.17 2,250.00 21,455.77 22,008.17 2,802.40 144,457.17 8,600.00 140,956.69 135,857.17 3,500.48 Sales - Wine 2,701.13 0.00 2,035.83 2,701.13 665.30 15,471.55 0.00 11,315.55 15,471.55 4,156.00 Sales - Liquor 8,327.18 333.00 7,959.99 7,994.18 367.19 54,697.17 858.00 52,004.65 53,839.17 2,692.52 Group Service Charges 1,019.15 0.00 1,072.93 1,019.15 (53.78)56,778.04 0.00 14,025.33 56,778.04 42,752.71 Food & Beverage Revenue 71,109.56 3,158.00 70,317.41 67,951.56 792.15 502,352.03 12,283.00 447,815.95 490,069.03 54,536.08 TOTAL REVENUE 632,695.98 462,858.00 577,647.13 169,837.98 55,048.85 3,482,419.73 2,501,368.00 3,181,134.10 981,051.73 301,285.63 Expenses COS - Merchandise 20,928.72 15,649.75 19,035.87 (5,278.97) (1,892.85)117,467.45 104,289.75 116,741.48 (13,177.70) (725.97) COS - Food 12,497.59 172.50 15,507.00 (12,325.09)3,009.41 90,340.30 847.50 86,108.27 (89,492.80) (4,232.03) COS - Beer 7,424.61 675.00 6,370.31 (6,749.61) (1,054.30)43,904.37 2,580.00 41,179.42 (41,324.37) (2,724.95) COS - Wine 848.44 0.00 541.78 (848.44) (306.66)4,749.55 0.00 3,412.76 (4,749.55) (1,336.79) COS - Liquor 2,213.91 99.90 1,354.45 (2,114.01) (859.46)15,055.65 257.40 12,585.99 (14,798.25) (2,469.66) Cost of Sales 43,913.27 16,597.15 42,809.41 (27,316.12) (1,103.86)271,517.32 107,974.65 260,027.92 (163,542.67) (11,489.40) Gross Margin 588,782.71 446,260.85 534,837.72 142,521.86 53,944.99 3,210,902.41 2,393,393.35 2,921,106.18 817,509.06 289,796.23 Month-to-Date Year-to-Date APPENDIX 1 Page 1 of 3 APPENDIX 1 El Conquistador Golf Mgmt., LLC Report Date: 1/31/2026 El Conquistador Golf Course Jan - 2026 Budget Jan - 2025 Bud Var PY Var Jan - 2026 Budget Jan - 2025 Bud Var PY Var Month-to-Date Year-to-Date Salaries & Wages 183,786.04 142,289.00 179,184.73 (41,497.04) (4,601.31)1,210,771.56 938,473.00 1,158,506.35 (272,298.56) (52,265.21) Payroll Taxes 15,539.58 12,750.00 15,672.74 (2,789.58)133.16 90,971.31 76,400.00 93,545.83 (14,571.31)2,574.52 Workers Comp 3,463.19 2,500.00 3,055.22 (963.19) (407.97)26,364.17 17,500.00 20,324.44 (8,864.17) (6,039.73) Employee Benefits 4,586.80 11,500.00 6,090.92 6,913.20 1,504.12 67,063.36 77,000.00 72,516.60 9,936.64 5,453.24 Other Employee Benefits 1,953.87 1,300.00 1,412.41 (653.87) (541.46)20,276.23 9,100.00 10,073.88 (11,176.23) (10,202.35) Total Payroll & Benefits 209,329.48 170,339.00 205,416.02 (38,990.48) (3,913.46)1,415,446.63 1,118,473.00 1,354,967.10 (296,973.63) (60,479.53) Meals & Entertainment 329.54 475.00 954.74 145.46 625.20 3,199.11 3,750.00 5,609.71 550.89 2,410.60 Travel 0.00 150.00 490.28 150.00 490.28 3,697.10 2,700.00 3,420.39 (997.10) (276.71) Other Employee Related 0.00 0.00 0.00 0.00 0.00 521.34 0.00 769.89 (521.34)248.55 Total Employee Related 329.54 625.00 1,445.02 295.46 1,115.48 7,417.55 6,450.00 9,799.99 (967.55)2,382.44 R&M - Equipment 9,522.11 7,500.00 9,012.16 (2,022.11) (509.95)104,304.97 94,800.00 91,791.24 (9,504.97) (12,513.73) R&M - Building 0.00 2,300.00 3,275.00 2,300.00 3,275.00 5,155.58 17,800.00 13,250.22 12,644.42 8,094.64 R&M - Golf Course & Tennis Courts 1,282.53 2,500.00 1,896.92 1,217.47 614.39 14,315.10 24,500.00 28,143.12 10,184.90 13,828.02 R&M - Other 4,393.07 400.00 401.04 (3,993.07) (3,992.03)6,871.49 2,800.00 2,005.20 (4,071.49) (4,866.29) Sod 0.00 500.00 0.00 500.00 0.00 0.00 1,500.00 1,067.72 1,500.00 1,067.72 Sand & Gravel 0.00 0.00 1,568.58 0.00 1,568.58 14,989.71 13,500.00 16,467.65 (1,489.71)1,477.94 Seed & Mulch 751.30 0.00 263.60 (751.30) (487.70)117,258.78 145,000.00 125,961.34 27,741.22 8,702.56 Gas, Diesel, Oil & Lubricants 2,343.17 2,950.00 6,430.47 606.83 4,087.30 26,857.74 29,650.00 26,467.50 2,792.26 (390.24) Fertilizers 2,832.22 2,000.00 5,171.51 (832.22)2,339.29 32,885.78 51,000.00 32,840.03 18,114.22 (45.75) Chemicals 3,631.66 9,100.00 4,518.90 5,468.34 887.24 68,382.78 50,250.00 31,553.96 (18,132.78) (36,828.82) Total Repairs & Maintenance 24,756.06 27,250.00 32,538.18 2,493.94 7,782.12 391,021.93 430,800.00 369,547.98 39,778.07 (21,473.95) Marketing & Advertising 930.50 2,595.00 3,338.50 1,664.50 2,408.00 6,956.63 10,165.00 14,504.68 3,208.37 7,548.05 Computer Related 2,949.95 0.00 0.00 (2,949.95) (2,949.95)13,209.87 0.00 0.00 (13,209.87) (13,209.87) Dues & Subscriptions 1,529.29 3,870.00 3,811.26 2,340.71 2,281.97 25,852.84 27,090.00 23,599.87 1,237.16 (2,252.97) Operating Supplies 6,101.03 7,825.00 8,064.19 1,723.97 1,963.16 66,988.69 55,400.00 75,516.78 (11,588.69)8,528.09 Linens & Laundry 614.76 0.00 648.66 (614.76)33.90 5,262.99 0.00 5,793.23 (5,262.99)530.24 Postage 0.00 0.00 0.00 0.00 0.00 272.56 225.00 287.66 (47.56)15.10 Member Relations (191.74)0.00 235.29 191.74 427.03 688.94 1,000.00 5,864.98 311.06 5,176.04 Uniforms 231.92 0.00 66.20 (231.92) (165.72)4,149.86 6,175.00 5,767.29 2,025.14 1,617.43 Other Operating 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,182.00 0.00 1,182.00 Merchant Processing Fees 10,682.47 8,900.00 9,377.76 (1,782.47) (1,304.71)48,946.02 39,900.00 42,249.98 (9,046.02) (6,696.04) Bank Fees 0.00 0.00 0.00 0.00 0.00 (31.83)0.00 1,004.56 31.83 1,036.39 Cash Short / (Over)(455.72)0.00 0.00 455.72 455.72 (35.73)0.00 0.00 35.73 35.73 Late Fees & Penalties 0.00 0.00 22.56 0.00 22.56 0.00 0.00 22.56 0.00 22.56 Centralized Services 2,859.89 2,125.00 2,474.54 (734.89) (385.35)16,692.38 14,875.00 15,482.16 (1,817.38) (1,210.22) Tournament Expenses 0.00 0.00 0.00 0.00 0.00 0.00 0.00 969.15 0.00 969.15 Total Operating Expenses 25,252.35 25,315.00 28,038.96 62.65 2,786.61 188,953.22 154,830.00 192,244.90 (34,123.22)3,291.68 Operating Profit 329,115.28 222,731.85 267,399.54 106,383.43 61,715.74 1,208,063.08 682,840.35 994,546.21 525,222.73 213,516.87 APPENDIX 1 Page 2 of 3 APPENDIX 1 El Conquistador Golf Mgmt., LLC Report Date: 1/31/2026 El Conquistador Golf Course Jan - 2026 Budget Jan - 2025 Bud Var PY Var Jan - 2026 Budget Jan - 2025 Bud Var PY Var Month-to-Date Year-to-Date Electric & Gas 19,452.36 22,000.00 20,943.54 2,547.64 1,491.18 162,439.06 182,500.00 170,026.22 20,060.94 7,587.16 Water 45,838.43 39,450.00 47,243.49 (6,388.43)1,405.06 612,836.66 674,400.00 670,700.64 61,563.34 57,863.98 Telephone & Internet Connection 179.25 875.00 808.99 695.75 629.74 4,432.03 6,125.00 5,304.06 1,692.97 872.03 Other Third-party Services 5,154.85 4,325.00 4,050.89 (829.85) (1,103.96)28,628.59 36,325.00 37,612.84 7,696.41 8,984.25 Total Utilities 70,624.89 66,650.00 73,046.91 (3,974.89)2,422.02 808,336.34 899,350.00 883,643.76 91,013.66 75,307.42 Lease Expense - Fixed 15,077.76 14,582.00 13,258.76 (495.76) (1,819.00)105,544.32 102,074.00 92,811.32 (3,470.32) (12,733.00) Lease Expense - Short-term & Other 298.11 298.00 298.11 (0.11)0.00 2,086.77 2,636.00 2,659.62 549.23 572.85 Total Leases 15,375.87 14,880.00 13,556.87 (495.87) (1,819.00)107,631.09 104,710.00 95,470.94 (2,921.09) (12,160.15) Fixed Operating Expenses 86,000.76 81,530.00 86,603.78 (4,470.76)603.02 915,967.43 1,004,060.00 979,114.70 88,092.57 63,147.27 Gross Operating Profit 243,114.52 141,201.85 180,795.76 101,912.67 62,318.76 292,095.65 (321,219.65)15,431.51 613,315.30 276,664.14 Insurance 7,546.50 6,000.00 8,573.30 (1,546.50)1,026.80 52,825.51 42,000.00 44,717.91 (10,825.51) (8,107.60) Bad Debt Expense (146.87)200.00 235.30 346.87 382.17 495.25 1,400.00 4,771.85 904.75 4,276.60 Fees, Permits, & Licenses 3,435.00 650.00 936.60 (2,785.00) (2,498.40)7,782.74 5,875.00 5,293.06 (1,907.74) (2,489.68) Base Management Fees 11,040.81 11,094.00 10,824.32 53.19 (216.49)77,502.16 77,658.00 75,770.24 155.84 (1,731.92) Other Expenses 21,875.44 17,944.00 20,569.52 (3,931.44) (1,305.92)138,605.66 126,933.00 130,553.06 (11,672.66) (8,052.60) Net Operating Income 221,239.08 123,257.85 160,226.24 97,981.23 61,012.84 153,489.99 (448,152.65) (115,121.55)601,642.64 268,611.54 Incentive Management Fee 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8,030.62 0.00 8,030.62 NET INCOME 221,239.08 123,257.85 160,226.24 97,981.23 61,012.84 153,489.99 (448,152.65) (123,152.17)601,642.64 276,642.16 EBITDA 221,239.08 123,257.85 160,226.24 97,981.23 61,012.84 153,489.99 (448,152.65) (123,152.17)601,642.64 276,642.16 APPENDIX 1 Page 3 of 3 APPENDIX 2 Operating:Through Jan Budget Cumulative FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY2024 FY2025 FY2026 FY 2026 Actuals Revenue 36 Hole 500,158 1,883,452 1,798,304 2,171,484 2,367,136 2,593,395 3,522,083 3,674,489 3,856,880 4,724,718 4,933,178 2,691,312 4,311,050 34,716,589 Pusch Ridge - 105,370 99,134 59,726 106,184 98,316 - 380,375 414,225 528,346 619,276 303,894 528,628 2,714,847 F&B - Overlook - 606,171 708,594 745,766 671,582 554,336 448,782 671,479 725,222 766,679 865,944 487,213 785,400 7,251,768 Total Revenue 500,158 2,594,993 2,606,032 2,976,976 3,144,902 3,246,047 3,970,865 4,726,343 4,996,327 6,019,743 6,418,398 3,482,420 5,625,078 44,683,203 Expenses 36 Hole 1,112,252 3,588,714 3,936,889 3,817,932 3,771,706 3,891,341 3,915,216 3,740,982 3,929,757 4,263,007 4,365,456 2,602,974 4,468,886 42,936,226 Pusch Ridge - 253,513 256,769 236,160 230,196 287,112 - 319,702 390,959 478,320 516,762 292,466 508,480 3,261,960 F&B - Overlook - 861,740 823,383 841,866 785,499 701,538 440,382 630,509 596,910 684,037 756,376 433,489 751,271 7,555,728 Total Expenses 1,112,252 4,703,967 5,017,041 4,895,958 4,787,401 4,879,991 4,355,598 4,691,193 4,917,626 5,425,364 5,638,594 3,328,930 5,728,637 53,753,914 Profit/(Loss) 36 Hole (612,094) (1,705,262) (2,138,585) (1,646,448) (1,404,570) (1,297,946) (393,133) (66,493) (72,877) 461,711 567,722 88,338 (157,836) (8,219,637) Pusch Ridge - (148,143) (157,635) (176,434) (124,012) (188,796) - 60,673 23,266 50,026 102,514 11,428 20,148 (547,113) F&B - Overlook - (255,569) (114,789) (96,100) (113,917) (147,202) 8,400 40,970 128,312 82,642 109,569 53,724 34,129 (303,960) Total Operating Profit/(Loss)(612,094) (2,108,974) (2,411,009) (1,918,982) (1,642,499) (1,633,944) (384,733) 35,150 78,701 594,379 779,804 153,490 (103,559) (9,070,711) Capital Investments 45,116 47,909 29,464 - - 131,035 2,828,061 4,619,904 2,184,848 743,897 119,998 630,000 10,750,233 Initial purchase (1)300,000 350,000 350,000 1,000,000 Notes: (1) $1,000,000 original purchase of courses and community center 1/2 cent sales tax 506,710 2,030,750 2,199,466 2,330,941 2,463,034 2,584,916 2,947,420 3,535,507 3,707,578 3,792,744 3,904,926 593,099 - 30,597,091 HOA contributions - - - - - - 125,000 159,050 159,050 159,050 159,050 - 34,050 761,200 POST AGREEMENTPRE AGREEMENT Town of Oro Valley Golf Analysis APPENDIX 2 Page 1 of 2 APPENDIX 2 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY 2024 Gross Margin 213,698 225,040 295,419 332,783 495,412 480,305 525,109 589,339 694,275 586,473 430,577 294,092 Expenses 406,558 333,614 420,523 454,504 412,959 349,298 308,213 291,616 334,623 326,900 398,960 530,376 Net Income/(Loss) (192,860) (108,573) (125,103) (121,721) 82,453 131,007 216,896 297,723 359,652 259,573 31,617 (236,284) FY 2025 Gross Margin 263,005 299,163 297,857 375,363 594,117 556,764 534,838 706,996 737,685 675,958 450,287 378,899 Expenses 411,466 416,806 442,887 488,946 531,458 378,085 374,611 318,371 420,446 381,953 453,967 476,826 Net Income/(Loss) (148,461) (117,643) (145,030) (113,583) 62,659 178,679 160,226 388,625 317,239 294,005 (3,681) (97,927) FY 2026 Gross Margin 337,860 344,855 377,531 402,476 613,880 545,516 588,783 Expenses 416,385 419,190 518,351 474,811 456,611 404,521 367,544 Net Income/(Loss) (78,525) (74,335) (140,820) (72,334) 157,270 140,995 221,239 - - - - - Town of Oro Valley Golf Analysis - Contractor Financials - 200,000 400,000 600,000 800,000 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Comparison of Gross Income by Month - Total Golf Operations FY 2024 FY 2025 FY 2026 - 100,000 200,000 300,000 400,000 500,000 600,000 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Comparison of Total Expenses by Month - Total Golf Operations FY 2024 FY 2025 FY 2026 (400,000) (200,000) - 200,000 400,000 600,000 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Comparison of Net Income/(Loss) by Month - Total Golf Operations FY 2024 FY 2025 FY 2026 APPENDIX 2 Page 2 of 2 APPENDIX 3 Consolidated Year-to-Date Financial Report through January 2026 FY 2025/2026 Fund FY 25/26 Beginning Fund Balance Revenue Other Fin Sources/ Transfers In Total In Personnel O&M Capital Debt Service Other Fin Uses/ Transfers Out Total Out Fund Balance Through January 2026 General Fund 20,702,401 32,640,158 - 32,640,158 20,988,265 8,029,382 87,806 - 8,203,829 37,309,282 16,033,277 Highway Fund 1,598,787 2,571,537 1,000,000 3,571,537 773,070 604,355 1,977,377 - - 3,354,802 1,815,522 Grants and Contributions Fund 60,787 389,765 59,109 448,874 406 119,054 336,442 - - 455,902 53,759 Seizure & Forfeiture - Justice/State 374,906 22,805 - 22,805 - - - - - - 397,711 Community Center Fund 2,921,900 4,923,074 - 4,923,074 698,776 3,938,479 516,985 - 172,968 5,327,209 2,517,765 Municipal Debt Service Fund 53,800 112,180 3,918,566 4,030,746 - 8,413 - 4,013,071 - 4,021,483 63,063 Water Resource System & Dev. Impact Fee Fund 6,481,181 952,266 2,709,812 3,662,078 - 84,040 7,722,254 557,505 - 8,363,799 1,779,460 Townwide Roadway Dev Impact Fee Fund 3,095,031 516,932 - 516,932 - - - - - - 3,611,962 Parks & Recreation Impact Fee Fund 381,038 321,872 - 321,872 - - - - - - 702,910 Police Impact Fee Fund 122,916 101,516 - 101,516 - - - - 38,765 38,765 185,667 Capital Fund 16,847,866 1,021,952 4,500,000 5,521,952 - 22,205 6,612,394 - 1,059,109 7,693,708 14,676,110 PAG/RTA Fund 446,926 8,598 - 8,598 - 8,400 70,000 - - 78,400 377,124 Water Utility 14,762,151 13,858,348 - 13,858,348 2,012,450 5,818,806 995,385 3,695,379 2,712,816 15,234,835 13,385,664 Stormwater Utility 1,447,723 953,945 - 953,945 532,716 194,892 - - - 727,608 1,674,060 Benefit Self Insurance Fund 3,995,323 2,412,170 - 2,412,170 - 2,898,647 - - - 2,898,647 3,508,846 Recreation In-Lieu Fee Fund 52,018 887 - 887 - - - - - - 52,905 Total 73,344,754 60,808,004 12,187,487 72,995,491 25,005,684 21,726,671 18,318,642 8,265,955 12,187,487 85,504,439 60,835,806 APPENDIX 4 Local Sales Tax Collections FY 2025/26 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN TOTAL Construction Sales Tax 179,150 163,435 98,998 89,454 243,032 156,790 253,437 1,184,296 Utility Sales Tax 302,786 412,779 407,129 429,423 372,182 261,920 293,969 2,480,187 Retail Sales Tax 941,576 897,606 867,961 893,562 934,258 1,001,735 1,345,143 6,881,842 Remote Seller Sales Tax 192,279 205,970 220,208 196,932 221,954 259,550 305,982 1,602,874 Bed Tax 112,651 91,706 92,611 115,225 146,552 178,739 154,051 891,535 Restaurant & Bar Sales Tax 269,228 238,235 263,782 292,127 270,580 270,346 335,217 1,939,515 All Other Local Sales Tax *115,341 108,925 133,051 119,804 136,567 153,290 161,223 928,200 Monthly Total 2,113,010$ 2,118,656$ 2,083,741$ 2,136,528$ 2,325,125$ 2,282,369$ 2,849,021$ 15,908,449$ Cumulative Total 2,113,010$ 4,231,666$ 6,315,407$ 8,451,935$ 10,777,059$ 13,059,428$ 15,908,449$ Monthly variance (220,775)$ (201,284)$ (240,986)$ (191,015)$ (279,060)$ (262,332)$ (258,450)$ Cumulative variance (220,775)$ (422,059)$ (663,045)$ (854,060)$ (1,133,120)$ (1,395,452)$ (1,653,902)$ FY 2024/25 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN TOTAL Construction Sales Tax 427,032 291,729 371,199 324,860 545,601 253,973 356,030 414,112 171,326 130,317 296,873 293,764 3,876,815 Utility Sales Tax 306,838 399,701 417,156 405,901 370,322 335,865 288,120 341,375 312,662 259,576 253,922 266,994 3,958,432 Retail Sales Tax 937,920 893,895 855,486 893,023 923,982 1,034,704 1,317,644 978,283 891,361 1,032,305 1,001,099 922,356 11,682,057 Remote Seller Sales Tax 164,541 176,303 174,003 175,191 187,988 229,019 275,105 193,315 178,898 200,958 196,195 199,852 2,351,368 Bed Tax 107,778 180,045 136,688 120,312 177,934 231,333 286,851 209,622 320,232 321,945 252,906 177,851 2,523,496 Restaurant & Bar Sales Tax 271,259 239,294 251,212 286,989 268,563 287,017 374,825 280,614 314,687 382,887 280,512 327,412 3,565,273 All Other Local Sales Tax *118,418 138,973 118,983 121,267 129,793 172,790 208,896 179,929 219,760 224,200 183,278 134,802 1,951,088 Monthly Total 2,333,785$ 2,319,940$ 2,324,727$ 2,327,543$ 2,604,184$ 2,544,700$ 3,107,472$ 2,597,249$ 2,408,926$ 2,552,188$ 2,464,785$ 2,323,029$ 29,908,529$ Cumulative Total 2,333,785$ 4,653,725$ 6,978,452$ 9,305,995$ 11,910,179$ 14,454,879$ 17,562,351$ 20,159,600$ 22,568,526$ 25,120,715$ 27,585,500$ 29,908,529$ *Does not include cable franchise fees or sales tax audit revenues APPENDIX 5 General Fund State Shared Revenues FY 2025/26 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN TOTAL State Shared Income Tax 793,555 793,555 793,555 793,555 793,555 793,556 793,555 5,554,887 State Shared Sales Tax 619,095 603,827 595,627 602,207 623,385 588,988 743,390 4,376,519 County Auto Lieu 216,240 215,390 219,757 235,357 160,740 250,037 216,183 1,513,704 Smart and Safe - - - - - 131,143 - 131,143 Monthly Total 1,628,891$ 1,612,772$ 1,608,939$ 1,631,119$ 1,577,680$ 1,763,724$ 1,753,127$ 11,576,253$ Cumulative Total 1,628,891$ 3,241,663$ 4,850,602$ 6,481,721$ 8,059,402$ 9,823,125$ 11,576,253$ Monthly variance (59,126)$ (41,479)$ (26,784)$ (47,715)$ (82,925)$ (36,755)$ 44,440$ Cumulative variance (59,126)$ (100,605)$ (127,389)$ (175,104)$ (258,029)$ (294,783)$ (250,344)$ FY 2024/25 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN TOTAL State Shared Income Tax 856,425 856,425 856,425 856,425 856,425 856,425 856,425 856,425 856,425 856,425 856,425 856,425 10,277,099 State Shared Sales Tax 593,796 582,212 575,094 597,416 614,349 622,937 724,079 596,353 582,965 677,435 632,153 618,346 7,417,134 County Auto Lieu 237,795 215,615 204,204 224,993 189,831 182,939 128,184 304,691 257,209 119,394 230,779 325,869 2,621,504 Smart and Safe - - - - - 138,177 - - 15 - - 148,981 287,173 Monthly Total 1,688,016$ 1,654,252$ 1,635,723$ 1,678,834$ 1,660,605$ 1,800,479$ 1,708,688$ 1,757,469$ 1,696,614$ 1,653,254$ 1,719,357$ 1,949,620$ 20,602,911$ Cumulative Total 1,688,016$ 3,342,268$ 4,977,991$ 6,656,825$ 8,317,430$ 10,117,909$ 11,826,596$ 13,584,065$ 15,280,679$ 16,933,933$ 18,653,291$ 20,602,911$ APPENDIX 6 Debt Service Expense Adopted Forecast Forecast Forecast Forecast Forecast Forecast Forecast Final Payment 2025/26 2026/27 2027/28 2028/29 2029/30 2030-2035 2036-2040 2041-2045 Date Municipal Debt Service Fund Excise Tax Revenue Bonds - - - 2010 CREBS 186,370 176,066 170,437 - - - - - 2028 2012 Revenue Bonds 224,631 227,147 224,125 - - - - - 2028 2015a Refunding Excise Tax 304,379 - - - - - - - 2026 2016 Excise Tax 172,968 172,635 172,236 172,760 172,207 344,447 - - 2032 2017a Refunding Excise Tax 138,645 138,626 - - - - - - 2027 2018a Excise Tax Revenue Obligation 171,515 171,446 171,502 171,429 171,229 684,420 - - 2034 2021 Parks & Rec Excise Tax 1,543,300 1,544,800 1,539,425 1,542,050 1,537,550 7,693,950 7,682,400 3,063,900 2042 2021 Pension Obligation Bonds 1,271,262 1,266,350 1,264,118 1,264,461 1,262,588 6,312,780 5,036,273 - 2039 Total Municipal Debt Service Fund 4,013,070 3,697,070 3,541,843 3,150,700 3,143,574 15,035,597 12,718,673 3,063,900 Community Center Fund Contracts Payable Leased Fitness Equipment 7,668 - - - - - - - 2026 Financed Fitness Equipment 22,677 7,559 - - - - - - 2027 Golf Carts 130,867 76,339 - - - - - - 2027 Leased Copiers 76,800 76,800 12,800 - - - - - 2028 Total Community Center Fund 238,012 160,698 12,800 - - - - - WRSDIF Fund Excise Tax Revenue Bonds 2021b Excise Tax Revenue Obligation (4) 55,924 56,015 55,596 34,453 8,255 - - - 2030 2025b Senior Lien Water Revenue Obligation (5) 455,408 455,411 455,408 455,409 455,410 2,277,041 - - 2035 2025b WIFA Loan (6) 493,700 468,639 468,639 468,639 468,639 2,343,196 2,343,196 2,343,196 2045 Total WSRDIF Fund 1,005,032 980,065 979,643 958,501 932,304 4,620,237 2,343,196 2,343,196 Water Utility Fund Excise Tax Revenue Bonds 2015b Refunding Revenue Bonds (1) 148,500 - - - - - - 2026 2017b Refunding Revenue Bonds (2) 1,619,650 1,619,032 - - - - - - 2027 2018b Excise Tax Revenue Obligation (3) 508,532 508,144 508,118 507,710 506,914 2,024,062 - - 2034 2021a Excise Tax Revenue Obligations (4) 743,499 744,714 739,138 458,046 109,745 - - - 2030 2025a Senior Lien Water Revenue Obligation (5) 303,605 303,607 303,605 303,606 303,607 1,518,027 - - 2035 Water Revenue Loans 2014 WIFA Loan 371,750 371,509 371,261 371,006 - - - - 2029 2025a WIFA Loan (6) 329,134 312,426 312,426 312,426 312,426 1,562,131 1,562,131 1,562,131 2045 Total Water Utility Fund 4,024,671 3,859,432 2,234,549 1,952,794 1,232,692 5,104,220 1,562,131 1,562,131 TOTAL DEBT SERVICE - ALL FUNDS 9,280,785 8,697,265 6,768,834 6,061,995 5,308,571 24,760,053 16,624,000 6,969,227 (5) Series 2025 debt service is split between the Water Utility Fund (40%) and the Water Impact fee Fund (60%). (6) 2025 WIFA loan debt service is split between the Water Utility Fund (40%) and the Water Impact fee Fund (60%). (1) Series 2015 for municipal operation facilities debt service is split between General Fund excise tax revenue (67%) and water revenue (33%). (2) Series 2017 debt service is split between General Fund excise tax revenue (8%) and water revenue (92%). (3) Series 2018 for water infrastucture and police evidence and substation facility. Debt service is split between General Fund excise tax revenue (25%) and water revenue (75%). (4) Series 2021 debt service is split between the Water Utility Fund (93%) and the Water Impact fee Fund (7%). APPENDIX 7 Town of Oro Valley Operating Investment Summary Fiscal Year 2025/26 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN LGIP Ending Market Value 11,048,264$ 10,564,199$ 9,802,412$ 8,759,464$ 10,446,793$ 10,759,658$ 12,183,963$ Investment Income 34,213$ 41,256$ 34,954$ 31,477$ 35,518$ 33,762$ 33,536$ 1-Month Yield 4.33% 4.32% 4.18% 4.09% 3.97% 3.81% 3.71% PFM Asset Management Closing Market Value 39,752,553$ 38,301,783$ 37,918,398$ 37,062,569$ 35,042,894$ 34,056,344$ 30,665,973$ Investment Income 199,738$ 172,343$ 102,243$ 130,423$ 207,951$ 80,876$ 168,167$ Annualized Yield to Maturity at Cost 4.51% 4.54% 4.53% 4.53% 4.54% 4.53% 4.55% Wells Fargo Sweep Ending Balance 3,413,781$ 6,187,767$ 2,581,008$ 4,856,250$ 4,081,463$ 3,859,896$ 8,892,243$ Investment Income 13,910$ 10,451$ 15,825$ 13,151$ 10,020$ 9,793$ 13,057$ 7-Day Simple Yield 4.18% 4.18% 4.01% 4.00% 3.84% 3.65% 3.57% Total Ending Balance 54,214,597$ 55,053,750$ 50,301,818$ 50,678,283$ 49,571,151$ 48,675,898$ 51,742,179$ Total Investment Income 247,861$ 224,050$ 153,022$ 175,052$ 253,489$ 124,431$ 214,760$ APPENDIX 8 Town of Oro Valley - Development Impact Fee Fund Projects Parks and Recreation Facilities Description Cost Completed? Skate Park $1,500,000 Yes Playground and Parking Lot $1,700,000 Yes Multiuse Fields (lighted) $1,200,000 Yes Dog Park $150,000 Yes Developed Park Land $927,694 Park Amenities $2,501,696 Police Police Substation Debt $1,198,500 Police Vehicles $846,050 Street Facilities La Cholla Blvd, Tangerine Rd-Lambert Ln - Road Widening $1,700,000 Yes Shannon Rd, Tangerine Rd-Naranja Dr - New Road $1,000,000 Lambert Ln. .5 mi E of Shannon-Rancho Sonora - Road Widening $1,000,000 Rancho Vistoso & Woodburne - Intersection Improvement $750,000 Oracle Rd & Rams Field Intersection - Intersection Improvement $750,000 Moore Rd La Cholla Blvd - Intersection Improvement $900,000 Moore Rd - Extension E of Rancho Vistoso Blvd - New Road & Intersection $1,026,840 Yes Moore Rd & La Canada Dr Intersection - Intersection Improvement $1,200,000 Yes Glover Rd Multi Use Path - Multi-modal facility $150,000 Yes Glover Rd south half widening - Road Widening $500,000 Yes Water Facilities Water Supply Steam Pump D-Zone Well $1,500,000 Program Management Support Services (P) $1,050,000 Yes Well Improvement Analysis and Recovery Permits (P) $150,000 Yes Well Drilling and Testing (P) $300,000 Yes Construction Permitting, Drilling, Development and Testing (P) $1,500,000 Yes Well Equipment Design and Site Improvements (P) $1,800,000 Yes Storage Palisades C-Zone Storage Tank and Pipeline $4,250,000 Pressure Zone G Storage Expansion $8,000,000 Pressure Zone G, H and I Storage Expansion $4,000,000 Forebay Design (P)$99,231 Yes Forebay Reservoir Construction (P) $900,000 Yes Shannon Rd Forebay Reservoir And Booster Station Prop (Ind.) $240,000 Yes Forebay Reservoir Booster Station Design (Ind.) $90,000 Yes Shannon Rd Forebay Reservoir and Booster Station Design (Ind.) $180,000 Yes Booster Station Construction Forebay Res. (Ind.) $300,000 Yes Shannon Road Forebay Res. Construction (Ind.) $840,000 Yes Shannon Road Forebay Res. Construction (Ind.) $540,000 Yes Arizona municipalities can charge development fees to cover the cost of infrastructure improvements needed to support new development. These fees are one-time payments used to fund projects like building new roads, parks, or water facilities. The amount of the fee is determined by an Infrastructure Improvements Plan (IIP) and land use assumptions. Importantly, development fees can only be used for building new infrastructure or paying off debt for growth-related projects. They cannot be used for ongoing maintenance, repairs, or addressing existing problems. The Town's IIP includes public services for parks and recreation facilities, police facilities, street facilities, and water facilities. Below is a list of identified IIP projects use in the latest impact fee study to calculate the development fees. These are projects that would be eligible to be funded by development fees as outlined in ARS § 9-463.05 (T)(7)(a). APPENDIX 8 Page 1 of 2 APPENDIX 8 Water Facilities Continued Description Cost Completed? Distribution Moore Road F-Zone Interconnect $750,000 Water Plant 14 Booster Capacity Expansion $250,000 Pipeline Design (Recovery Water & Transmission) (P) $660,692 Yes Pipeline Construction (P) $4,320,000 Pipeline Route Study and Preliminary Design (Ind.) $120,000 Yes Pipeline Easement Acquisition (Ind.) $450,000 Yes Pipeline Design (Ind.) $600,000 Yes Pipeline Construction NWRRDS to La Canada Res. (Ind.) $5,880,000 Interconnect to Tangerine Rd. (Ind.) $270,000 Yes Interconnect to Lambert Lane (Ind.) $510,000 Yes APPENDIX 8 Page 2 of 2 Budget and Finance Commission 3. Meeting Date:04/21/2026 Submitted By:Christopher Hutchison, Finance SUBJECT: PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY25/26 FINANCIAL UPDATE THROUGH FEBRUARY 2026 (PLEASE REFERENCE ATTACHMENTS) RECOMMENDATION: N/A EXECUTIVE SUMMARY: Please reference attachments for this item. BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments Consolidated February 2026 Monthly Financial Report Town Manager’s Office DATE: TO: FROM: TOWN COUNCIL REPORT April 14, 2026 Mayor and Council Jeff Wilkins, Town Manager David Gephart, Chief Financial Officer SUBJECT: February 2026 Financial Update This financial update is intended to provide an overview and status of revenues and expenditures for the Town’s selected funds through February 2026 for fiscal year 2025/26. Funds included in this financial update are the General Fund, Highway Fund, Community Center Fund and Capital Fund. Also included are the two enterprise funds, Water and Stormwater. Please note that all amounts are preliminary, un- audited and subject to change. Additionally, figures may not include any adjusting audit entries required at year-end. Pages 1-15 are the financial status reports for the funds. Appendix 1 and 2 provide further details on golf activity and contractor performance. Appendix 3 is the consolidated report of all Town funds. Appendix 4 is the local sales tax collections. Appendix 5 is the General Fund state shared revenues. Appendix 6 is a breakdown of the Town’s outstanding debt service principal and interest payments. Appendix 7 is a summary of operating investment values and earnings by month. Appendix 8 lists the specific infrastructure projects that are eligible to receive funding from impact fees. General Fund Financial Status Fiscal Year to Date: February 2026 Revenues ` Amount Percent Local Sales Tax 17,923,118$ 18,045,754$ 32,470,107$ (14,424,353)$ 56% 27,837,339$ State Shared Revenues 13,584,065 13,172,635 19,863,884 (6,691,249) 66% 19,809,058 Licenses & Permits 1,281,267 1,783,931 2,116,123 (332,192) 84% 2,317,479 Grants 357,895 527,187 466,851 60,336 113% 728,219 Intergovernmental 1,069,278 1,199,489 2,320,362 (1,120,873) 52% 2,320,362 Charges for Service 1,990,757 2,008,699 3,050,223 (1,041,524) 66% 3,100,270 Other Revenue 1,218,463 611,698 916,480 (304,782) 67% 924,099 Total Revenues 37,424,843$ 37,349,392$ 61,204,030$ (23,854,638)$ 61% 57,036,826$ Uses Amount Percent Personnel Services 22,744,055$ 23,502,783$ 37,457,276$ 13,954,493$ 63% 36,553,840$ Operations and Maintenance 9,409,992 8,930,208 15,317,790 6,387,582 58% 15,104,790 Capital Outlay 170,180 87,806 211,000 123,194 42% 211,000 Transfers Out 5,458,073 8,203,829 8,831,579 627,750 93% 10,831,579 Total Uses 37,782,299$ 40,724,625$ 61,817,645$ 21,093,020$ 66% 62,701,209$ Change in Fund Balance Total Revenues 37,424,843$ 37,349,392$ 61,204,030$ 57,036,826$ 57,036,826$ Total Uses (37,782,299) (40,724,625) (61,817,645) (62,701,209) (62,701,209) Change in Fund Balance (357,456)$ (3,375,233)$ (613,615)$ (5,664,383)$ (5,664,383)$ Beginning Fund Balance 20,702,401$ 20,702,401$ Estimated Ending Fund Balance 17,327,168$ 15,038,018$ 15,038,018$ Note: The estimated ending fund balance exceeds the Town's 25% expenditure reserve policy by a margin of about $2.1 million. Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2025/26 Budget Year End Estimate Year End Estimate 67% through the fiscal year (Period 8 of 12)Page 1 of 14 General Fund Financial Status Fiscal Year to Date: February 2026 Local Sales Tax Revenue Amount Percent Construction 2,984,535$ 1,385,497$ 5,086,266$ (3,700,769)$ 27% 2,130,135$ Utilities 2,865,278 2,799,407 4,316,890 (1,517,483) 65% 3,870,678 Retail 6,267,950 7,451,353 11,836,368 (4,385,015) 63% 11,362,477 Remote Seller 1,260,372 1,752,155 2,444,773 (692,618) 72% 2,794,466 Bed Tax 1,450,562 1,150,645 2,464,858 (1,314,213) 47% 1,890,713 Restaurant & Bar 1,807,820 2,111,938 3,726,636 (1,614,698) 57% 3,392,362 Other 954,514 1,073,872 1,941,265 (867,393) 55% 1,743,456 Cable Franchise 332,087 320,886 653,051 (332,165) 49% 653,051 Local Sales Tax Total 17,923,118$ 18,045,754$ 32,470,107$ (14,424,353)$ 56% 27,837,339$ State Shared Revenue Amount Percent State Income Tax 6,851,400$ 6,348,442$ 9,522,662$ (3,174,220)$ 67% 9,522,662$ State Sales Tax 4,906,235 4,978,721 7,376,599 (2,397,878) 67% 7,376,599 Vehicle License Tax 1,688,253 1,714,330 2,629,797 (915,467) 65% 2,629,797 Smart and Safe 138,177 131,143 334,826 (203,683) 39% 280,000 State Shared Total 13,584,065$ 13,172,635$ 19,863,884$ (6,691,249)$ 66% 19,809,058$ Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Total state shared revenues are performing in line with expectations with the exception of Smart & Safe revenues. Smart & Safe distributions occur twice per year, and the first payment was lower than the prior year. Although statewide cannabis sales tax collections are up compared to last year, distributions to cities and towns may decline because revenues are first applied to cover state administrative and enforcement costs before being allocated to cities and towns. Overall, Local sales tax revenues are forecasted to fall short of budget expectations by $4.0 million or 12.7%. Collections decreased 9.1% compared to the same period last year, primarily reflecting reduced activity in the construction and hotel sectors, including project delays at the Marketplace hotel and Vistoso Golf Club apartment developments. Construction-related revenues have begun to recover in recent months from the Oro Valley Marketplace apartment project, with this trend expected to continue through year-end. Restaurant and bar collections came in 2.1% below prior year through February, falling short of growth assumptions and resulting in a year- end estimate approximately 6.2% below budget. Retail collections are projected to finish slightly below budget at 0.9%, while remote seller collections are expected to exceed budget by 17.6%. Please refer to Appendix 4 for a detailed breakdown of local sales tax collections. FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Year End Estimate $6.3 $5.0 $1.7 $0.1 $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 State Income Tax State Sales Tax Vehicle License Tax Smart and Safe Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget $1.4 $2.8 $7.5 $1.8 $1.2 $2.1 $1.1 $0.3 $0 $2 $4 $6 $8 $10 $12 $14 Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget 67% through the fiscal year (Period 8 of 12)Page 2 of 14 General Fund Financial Status Fiscal Year to Date: February 2026 Licenses & Permits Revenue Amount Percent Business Licenses & Permits 198,958$ 167,844$ 255,000$ (87,156)$ 66% 229,304$ Residential Building Permits 711,033 1,093,811 908,066 185,745 120% 1,346,042 Commercial Building Permits 217,284 304,168 750,077 (445,909) 41% 452,101 Other Building Permits and Fees 153,992 218,109 202,980 15,129 107% 290,032 Licenses & Permits Total 1,281,267$ 1,783,931$ 2,116,123$ (332,192)$ 84% 2,317,479$ Grants Revenue Amount Percent Federal grants 311,455$ 400,172$ 375,000$ 25,172$ 107% 581,368$ State Grants 46,440 127,015 91,851 35,164 138% 146,851 Grants Total 357,895$ 527,187$ 466,851$ 60,336$ 113% 728,219$ FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget A total of 73 Single Family Residential (SFR) permits have been issued through February (107 budgeted for the year). Licenses and permits revenue is projected to exceed budget by 9.5%, driven by stronger building permit activity, partially offset by a reduction in the business license and permit forecast due to FY25 actuals coming in below estimates. Year End Estimate Grant revenues continue to perform better than expected. A significant portion of budgeted grants are allocated to the Police Department, and these can fluctuate based on factors such as officer scheduling, overtime, and the timing of reimbursements and awards. The federal grant forecast has been increased by 55%, reflecting HIDTA program funding and Department of Homeland Security grants. The year-end estimate for miscellaneous state grants was increased by $30,000 due to DPS Vehicle Theft Task Force grant funds. Approximately $72,000 in budgeted state grants remain tied to school resource officer reimbursements for Leman Academy. $0.2 $1.1 $0.3 $0.2 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 Business Licenses & Permits Residential Building Permits Commercial Building Permits Other Building Permits and Fees Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget $0.4 $0.1 $0.0 $0.1 $0.2 $0.3 $0.4 $0.5 Federal grants State Grants Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget 67% through the fiscal year (Period 8 of 12)Page 3 of 14 General Fund Financial Status Fiscal Year to Date: February 2026 Intergovernmental Revenue Amount Percent School Resource Officers 94,776$ 151,864$ 409,502$ (257,638)$ 37% 409,502$ RTA Reimbursements 974,502 1,044,659 1,904,860 (860,201) 55% 1,904,860 PC Library District Reimburse - 2,966 6,000 (3,034) 49% 6,000 Intergovernmental Total 1,069,278$ 1,199,489$ 2,320,362$ (1,120,873)$ 52% 2,320,362$ Charges for Service Revenue Amount Percent Enterprise Funds Cost Allocation 1,134,506$ 1,094,231$ 1,641,347$ (547,116)$ 67% 1,641,347$ Recreation Fees 590,646 584,075 978,950 (394,875) 60% 1,009,434 Development Fees 50,933 94,679 90,110 4,569 105% 120,110 Court Fees 74,794 80,907 115,000 (34,093) 70% 115,000 Other 139,877 154,807 224,816 (70,009) 69% 214,379 Charges for Service Total 1,990,757$ 2,008,699$ 3,050,223$ (1,041,524)$ 66% 3,100,270$ FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2025/26 Budget Actual Vs. Budget Year End Estimate Year End Estimate Intergovernmental revenues are performing in line with expectations. These revenues are reimbursement-based and typically lag between the time services are provided and when funds are received. FY 2024/25 Actuals FY 2025/26 Actuals Charges for services are performing slightly greater than expectations. Cost allocation charges to the Town’s enterprise funds for shared services, along with Parks & Recreation fees, represent the majority of this revenue category. The enterprise fund allocations are budgeted amounts distributed evenly across all 12 months. The year-over-year decrease is mainly due to one- time water system monitoring upgrades in the prior year that were funded through the IT budget and charged to the Water Utility. Recreation fee revenues are projected to exceed budget by 3.1%, driven by higher-than-anticipated field and court rental activity. Development fee revenues were revised upward by $30,000, reflecting stronger-than-expected engineering plan review fees associated with the Marketplace development. $0.2 $1.0 $0.0 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 School Resource Officers RTA Reimbursements PC Library District Reimburse Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget $1.1 $0.6 $0.1 $0.1 $0.2 $0.0 $0.5 $1.0 $1.5 $2.0 Enterprise Funds Cost Allocation Recreation Fees Development Fees Court Fees Other Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget 67% through the fiscal year (Period 8 of 12)Page 4 of 14 General Fund Financial Status Fiscal Year to Date: February 2026 Other Revenue Amount Percent Fines 44,387$ 35,301$ 68,680$ (33,379)$ 51% 56,000$ Interest Earnings 554,714 448,927 637,500 (188,573) 70% 650,000 Miscellaneous 619,362 127,470 210,300 (82,830) 61% 218,099 Other Revenue Total 1,218,463$ 611,698$ 916,480$ (304,782)$ 67% 924,099$ FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Year End Estimate Other revenues are projected to finish above budget overall, supported by stronger-than-anticipated interest earnings, insurance recoveries, and asset sales. The decline in miscellaneous revenue compared to the prior year reflects a one-time AMRRP rebate in FY 2024/25 that did not recur. $0.0 $0.4 $0.1 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 Fines Interest Earnings Miscellaneous Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget 67% through the fiscal year (Period 8 of 12)Page 5 of 14 General Fund Financial Status Fiscal Year to Date: February 2026 Expenditures by Department Amount Percent Clerk 345,636$ 280,008$ 446,275$ 166,267$ 63% 434,253$ Community & Econ. Dev. 2,323,488 2,251,955 4,275,011 2,023,056 53% 3,990,726 Council 162,266 155,005 216,163 61,158 72% 216,163 Finance 573,753 596,623 870,300 273,677 69%886,108 Non-Departmental 2,104,867 2,093,725 3,052,282 958,557 69% 3,052,282 Human Resources 453,170 464,472 744,887 280,415 62% 738,643 Information Technology 4,257,163 3,951,663 5,925,996 1,974,333 67% 5,795,867 Legal 726,179 593,129 1,193,587 600,458 50% 949,558 Town Manager 1,085,439 1,096,694 1,812,726 716,032 60% 1,785,399 Parks & Recreation 2,972,248 2,910,090 5,230,510 2,320,420 56% 5,071,840 Police 12,767,464 13,551,290 21,333,810 7,782,520 64% 21,083,750 Public Works 3,895,001 3,887,958 6,702,762 2,814,804 58% 6,731,762 Town Court 657,551 688,185 1,181,757 493,572 58% 1,133,279 Total Department Expenditures 32,324,227$ 32,520,796$ 52,986,066$ 20,465,270$ 61% 51,869,630$ Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget $0.3 $2.3 $0.2 $0.6 $2.1 $0.5 $4.0 $0.6 $1.1 $2.9 $13.6 $3.9 $0.7 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Overview: Departments are spending within budget limits through February. Please note that Council and Information Technology typically incur higher upfront costs early in the fiscal year. Community & Economic Development: Year-to-date personnel expenditures are below budget expectations due to turnover in two Building Inspector positions, the Economic Development Program Manager, and a vacancy in the Code Compliance Specialist position. Year-to-date operating expenditures are also below budget, primarily due to timing within the in-house Economic Development and Tourism program, where several planned initiatives have not yet begun. Finance: Personnel costs are projected to exceed budget by approximately $16,000 due to a three-month overlap in the accounting specialist position, allowing time to train the new employee who replaced a retiring staff member. Legal: Personnel costs are trending below budget expectations and are projected to finish approximately 22% under budget, primarily due to vacancies in the Town Attorney and Chief Civil Deputy Attorney positions. Police: The year-over-year increase is mainly due to an additional quarterly pension contribution to the Public Safety Personnel Retirement System (PSPRS) that was recorded at the beginning of FY26 but applied to the prior fiscal year (FY25), along with increased personnel costs from wage adjustments outlined in the most recent labor agreement. The department is still forecasted to be within budget due to vacancy savings and benefit election differences from budget. Public Works: Transit personnel costs are projected to exceed budget by $29,000 (0.7%) due to higher ridership demand requiring additional driver hours. Please note, however, that Transit costs are reimbursed to the Town by the RTA. 67% through the fiscal year (Period 8 of 12)Page 6 of 14 Highway Fund Financial Status Fiscal Year to Date: February 2026 Sources ` Amount Percent Licenses & Permits 23,517$ 27,044$ 30,000$ (2,956)$ 90% 40,000$ Highway User Revenue 2,747,892 2,760,707 4,456,367 (1,695,660) 62% 4,290,852 Interest Earnings 70,040 91,070 99,000 (7,930) 92% 140,000 Miscellaneous 2,835 48,125 2,500 45,625 1925% 50,489 Transfers In 2,000,000 1,000,000 2,000,000 (1,000,000) 50% 2,000,000 Total Sources 4,844,284$ 3,926,946$ 6,587,867$ (2,660,921)$ 60% 6,521,341$ Expenditures Amount Percent Personnel 853,409$ 874,383$ 1,348,218$ 473,835$ 65% 1,350,500$ O&M 673,886 656,158 1,483,935 827,777 44% 1,449,443 Capital Outlays 3,408,214 2,029,693 4,624,000 2,594,307 44% 3,215,010 Total Expenditures 4,935,510$ 3,560,234$ 7,456,153$ 3,895,919$ 48% 6,014,953$ Change in Fund Balance Total Sources 4,844,284$ 3,926,946$ 6,587,867$ 6,521,341$ Total Expenditures (4,935,510) (3,560,234) (7,456,153) (6,014,953) Change in Fund Balance (91,226)$ 366,712$ (868,286)$ 506,387$ Beginning Fund Balance 1,598,787$ 1,598,787$ Estimated Ending Fund Balance 1,965,499$ 2,105,174$ Year End Estimate Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Highway Fund revenues and expenditures are performing generally in line with expectations through February. Due to capital projects not anticipated to be completed this year, the fund balance is expected to end about $1.3M greater than budgeted. Revenues: Highway User Revenue (HURF) is currently coming in slightly under budget projections. In contrast, interest earnings and revenue from licenses and permits are outperforming budget estimates. Miscellaneous revenues are above budget, driven by insurance reimbursements and proceeds from asset sales. The scheduled $2 million transfer from the Capital Fund is allocated to support road improvement projects and is recognized in four equal quarterly installments over the course of the fiscal year. Expenditures: Personnel expenditures are projected to exceed budget by approximately 0.2%, primarily due to adjustments to maximum pay ranges in the adopted pay plan that were not included in the original personnel forecast. Budgeted capital outlays include the Town’s annual pavement preservation program and several capital improvement projects. Capital Outlay is projected to come in approximately $1.4 million under budget due to several projects. The Traffic Signal at Tangerine Rd / Mussette Dr project ($676k) will carry over into next year, as will the Operations Laydown Yard (Electricity) ($33k). The Lambert Lane MUP project ($350k) will not be completed this year; with the passage of RTA Next which include improvements to Lambert Lane, the project is being reassessed. Additionally, $350k of the $400k budgeted for Shannon Road Improvements is projected to remain unspent, as the project will not be completed this year. With RTA Next including a larger widening project for Shannon Road, these interim improvements are no longer needed. 67% through the fiscal year (Period 8 of 12)Page 7 of 14 Community Center Fund Financial Status Fiscal Year to Date: February 2026 Revenues Amount Percent Local Sales Tax 2,568,569$ 593,099$ -$ 593,099$ na 593,099$ Contracted Operating Revenues 3,946,203 4,274,891 5,625,078 (1,350,187) 76% 6,604,000 Town Operating Revenues 888,913 919,493 1,534,043 (614,550) 60% 1,605,076 Other Revenues 7,429 38,429 60,172 (21,743) 64% 87,952 Total Revenues 7,411,115$ 5,825,912$ 7,219,293$ (1,393,381)$ 81% 8,890,127$ Uses Amount Percent Contracted Operating Expenditures 3,680,731$ 3,754,307$ 5,728,637$ 1,974,330$ 66% 5,989,482$ Town Operating Expenditures 1,419,694 1,425,070 2,427,461 1,002,391 59% 2,360,634 Capital Outlay 746,702 993,406 2,408,700 1,415,294 41% 2,308,700 Transfers Out 1,717,149 172,968 172,968 - 100% 172,968 Total Uses 7,564,275$ 6,345,751$ 10,737,766$ 4,392,015$ 59% 10,831,784$ Change in Fund Balance Total Revenues 7,411,115$ 5,825,912$ 7,219,293$ 8,890,127$ Total Uses (7,564,275) (6,345,751) (10,737,766) (10,831,784) Change in Fund Balance (153,160)$ (519,839)$ (3,518,473)$ (1,941,657)$ Beginning Fund Balance 2,921,900$ 2,921,900$ Estimated Ending Fund Balance 2,402,061$ 980,243$ Supplemental: Operating Analysis Amount Percent Golf Contractor Operating Revenues $ 3,946,203 $ 4,274,891 $ 5,625,078 (1,350,187)$ 76% $ 6,604,000 Operating Expenditures 3,680,731 3,754,307 5,728,637 (1,974,330) 66% 5,989,482 Net Operating Income/(Loss) 265,473$ 520,584$ (103,559)$ 624,143$ 614,518$ Town Operations Operating Revenues $ 888,913 $ 919,493 $ 1,534,043 (614,550)$ 60% $ 1,605,076 Operating Expenditures 1,419,694 1,425,070 2,427,461 (1,002,391) 59% 2,360,634 Net Operating Income/(Loss) (530,781)$ (505,577)$ (893,418)$ 387,841$ (755,558)$ Year End Estimate Actual Vs. Budget Year End Estimate The following presents operating revenues and expenditures for the Golf Contractor and Town Operations separately. This section excludes Local Sales Tax, Capital Outlay, and Transfers Out, which are reported at the fund level above. FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2025/26 Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Year End Estimate Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals 67% through the fiscal year (Period 8 of 12)Page 8 of 14 Community Center Fund Financial Status Fiscal Year to Date: February 2026 Local Sales Tax Revenue Amount Percent Retail 1,566,987$ 367,836$ -$ 367,836$ - 367,836$ Remote Seller 315,093 79,650 - 79,650$ - 79,650 Restaurant & Bar 451,955 101,493 - 101,493 - 101,493 Other 234,534 44,120 - 44,120 - 44,120 Local Sales Tax Total 2,568,569$ 593,099$ -$ 593,099$ - 593,099$ Contracted Operating Revenue Amount Percent Golf Revenue, Trail & Cart Fees 1,982,019$ 2,176,948$ 2,818,625$ (641,677)$ 77% 3,424,000$ Member Dues 1,162,537 1,297,538 1,590,560 (293,022) 82%1,800,000 Food & Beverage (Overlook) 536,308 565,134 814,633 (249,499) 69%924,000 Merchandise & Other 265,339 235,271 401,260 (165,989) 59% 456,000 Contracted Revenue Total 3,946,203$ 4,274,891$ 5,625,078$ (1,350,187)$ 76% 6,604,000$ Actual Vs. Budget Year End Estimate Year End Estimate Actual Vs. Budget FY 2025/26 Budget FY 2025/26 Budget Note: Estimated sales tax collections on golf operations for FY 2025/26 is $174,562. On August 13, 2025, the Town Council adopted Ordinance (O)25-04, removing the spending restrictions on the half-cent sales tax and redirecting those revenues to the General Fund, effective 30 days later in September. Accordingly, the FY 2025/26 actual revenues shown here reflect only the first two months of the fiscal year, during which the restriction was still in place. Any operating shortfalls within this fund will be covered by transfers from the General Fund at year-end. For detailed information on total local sales tax collections, please refer to Appendix 4. FY 2024/25 Actuals FY 2025/26 Actuals FY 2024/25 Actuals FY 2025/26 Actuals Contracted golf revenues are forecasted to exceed budget by approximately $979,000, or 17%, driven by strong membership numbers and increased public play. Through February, 71,919 rounds have been played, which is essentially in line with the prior year, reflecting a 1.1% decrease, and exceeding budget expectations by 9.9%. Please refer to Appendix 3 for or a more in-depth analysis of golf revenues, expenses, and historical comparisons $2.2 $1.3 $0.6 $0.2 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 Golf Revenue, Trail & Cart Fees Member Dues Food & Beverage (Overlook) Merchandise & Other Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget $0.4 $0.1 $0.1 $0.0 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 Retail Remote Seller Restaurant & Bar Other Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget 67% through the fiscal year (Period 8 of 12)Page 9 of 14 Community Center Fund Financial Status Fiscal Year to Date: February 2026 Town Operating Revenue Amount Percent Daily Drop-Ins 47,310$ 39,346$ 75,625$ (36,279)$ 52% 63,233$ Member Dues 675,128 724,814 990,420 (265,606) 73% 1,103,100 Recreation Programs 107,513 89,862 382,500 (292,638) 23% 330,884 Facility Rental Income 58,962 65,471 85,498 (20,027) 77% 107,860 Town Operating Revenue Total 888,913$ 919,493$ 1,534,043$ (614,550)$ 60% 1,605,076$ Other Revenue Amount Percent Interest Income 5,034$ 38,085$ 22,500$ 15,585$ 169% 50,000 HOA Contributions - - 34,050 (34,050) - 34,050 Miscellaneous 2,396 344 3,622 (3,278) 10% 3,902 Other Revenue Total 7,429$ 38,429$ 60,172$ (21,743)$ 64% 87,952$ Year End Estimate The FY 2025/26 HOA contribution budget pertains to the HOAs associated with the 9-hole Pusch Ridge course. FY 2025 was the final year of agreed upon annual contributions to golf from HOAs on the 36-hole course. Due to stronger-than-anticipated interest income, the year-end estimate has been revised upward to $50,000. FY 2025/26 Budget Actual Vs. Budget FY 2025/26 Budget Actual Vs. Budget Year End Estimate Town operating revenues are generally trending above budget, with daily drop-in fees and in-house recreation programs below budget, more than offset by higher- than-expected member dues and facility rental income. Year-end estimates, incorporating Town Council–approved rate increases effective January 1, 2026, reflect lower anticipated revenues from daily drop-ins and recreation programs, more than offset by increases in member dues and facility rental income above budget, with overall town operating revenues projected to end the year 4.6% above budget. FY 2025/26 Actuals FY 2024/25 Actuals FY 2025/26 Actuals FY 2024/25 Actuals $0.0 $0.7 $0.1 $0.1 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 Daily Drop-Ins Member Dues Recreation Programs Facility Rental Income Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget $0.0 $0.0 $0.0 $0.0 $0.1 Interest Income HOA Contributions Miscellaneous Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget 67% through the fiscal year (Period 8 of 12)Page 10 of 14 Community Center Fund Financial Status Fiscal Year to Date: February 2026 Contracted Operating Expenditures Amount Percent Personnel 1,245,113$ 1,345,535$ 1,992,268$ 646,733$ 68% 2,063,000$ Food & Beverage (Overlook) 476,536 501,630 751,271 249,641 67% 837,000 Operations & Maintenance 1,850,626 1,784,135 2,768,538 984,403 64% 2,849,678 Equipment Leases 108,455 123,007 216,560 93,553 57% 239,804 Contracted Expenditures Total 3,680,731$ 3,754,307$ 5,728,637$ 1,974,330$ 66% 5,989,482$ Town Operating Expenditures Amount Percent Personnel 832,284$ 773,922$ 1,303,239$ 529,317 59% 1,300,447$ Operations & Maintenance 587,410 651,148 1,124,222 473,074 58% 1,060,187 Town Operating Expenditures Total 1,419,694$ 1,425,070$ 2,427,461$ 1,002,391$ 59% 2,360,634$ FY26 Revised Budget Artificial Turf Installation at Community Center Entrance 150,000 Community Center Exterior Stucco Repair and Painting 190,500 Community Center Parking Lot Resurface 950,000 CRC ADA Exterior Restroom 325,000 Greenmaster Mower Replacement x2 (36-Hole)120,000 South Pump Station (36 Hole) 510,000 Pusch Ridge Tennis Bleachers and ADA Accessibility 163,200 2,408,700 Year End Estimate Contracted golf operating expenditures rose 2% year-over-year, driven mainly by increased labor, maintenance supplies, and lease costs, partially offset by reductions in water expenses. Expenses are projected to exceed the budget by approximately $261,000, or 4.6%, driven by higher merchandise sales costs, increased labor expenses, and additional equipment and grounds maintenance costs. List of FY26 Capital Projects: Year End Estimate Town operating expenditures are trending under budget, primarily due to contracted instructors. Operations and maintenance costs, while higher at the beginning of the fiscal year due to credit card merchant fees, have since moderated and are also projected to come in under budget. FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget $0.8 $0.7 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 Personnel Operations & Maintenance Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget $1.3 $0.5 $1.8 $0.1 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 Personnel Food & Beverage (Overlook) Operations & Maintenance Equipment Leases Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget 67% through the fiscal year (Period 8 of 12)Page 11 of 14 Capital Fund Financial Status Fiscal Year to Date: February 2026 Sources ` Amount Percent Vehicle Reserves 622,327$ 685,951$ 1,028,926$ (342,975)$ 67% Interest Earnings 416,720 377,946 470,000 (92,054) 80% Miscellaneous 37,656 110,270 40,000 70,270 276% Transfers In from General Fund 3,569,894 4,500,000 5,000,000 (500,000) 90% Total Sources 4,646,596$ 5,674,166$ 6,538,926$ (864,760)$ 87% Uses Amount Percent O&M 121,581$ 22,664$ -$ (22,664)$ na Capital Outlays 3,658,095 6,838,030 11,867,973 5,029,943 58% Transfers Out 2,000,000 1,059,109 2,234,200 1,175,091 47% Total Uses 5,779,676$ 7,919,802$ 14,102,173$ 6,182,371$ 56% Change in Fund Balance Total Sources 4,646,596$ 5,674,166$ 6,538,926$ Total Uses (5,779,676) (7,919,802) (14,102,173) Change in Fund Balance (1,133,080)$ (2,245,636)$ (7,563,247)$ Beginning Fund Balance 16,847,866$ Estimated Ending Fund Balance 9,284,619$ FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Sources: Quarterly transfers in from the General Fund support capital improvement projects as budgeted. A one-time additional transfer of $2 million resulted from Town Council's direction to reduce the General Fund reserve from 30% to 25%. In addition, an annual reserve for vehicle replacement is established based on the purchase price and expected lifespan of Town-owned vehicles. This reserve is allocated evenly over twelve months and charged to the General Fund each month. Uses: O&M costs reflect the purchase of smaller, non-capitalized equipment used to outfit new Police vehicles. Capital outlays through February consist primarily of the Council-directed purchase of a building for the planned new Police Headquarters (approximately $3.8 million), along with related urgent building maintenance and inspection costs, the finalization of the Town Court expansion project, the VTNP Pond Restoration project, and planned Police vehicle replacements. The budget also includes $2 million in transfers to the Highway Fund for capital improvement projects, recorded evenly across four quarters. An additional $234,200 is budgeted for transfer to the Grants Fund to cover the Town’s 20% match for transit vehicles funded primarily through federal grants. 67% through the fiscal year (Period 8 of 12)Page 12 of 14 Water Utility Fund Financial Status Fiscal Year to Date: February 2026 Sources ` Amount Percent Water Sales 12,261,497$ 12,795,671$ 18,511,000$ (5,715,329)$ 69% 18,752,246$ Charges For Services 2,295,713 2,273,509 3,457,000 (1,183,491) 66% 3,428,800 Grants - 272,221 - 272,221 - 841,639 Interest Earnings 208,277 266,714 100,000 166,714 267% 400,000 Miscellaneous 46,766 19,011 20,000 (989) 95% 22,047 Other Financing Sources - 3,734,982 - 3,734,982 - 4,807,200 Total Sources 14,812,252$ 19,362,107$ 22,088,000$ (2,725,893)$ 88% 28,251,932$ Uses Amount Percent Personnel 2,339,188$ 2,281,906$ 3,985,725$ 1,703,819$ 57% 3,807,621$ O&M 6,548,805 6,453,820 11,552,175 5,098,355 56% 11,367,287 Capital Outlays 946,156 1,134,798 2,327,639 1,192,841 49% 2,230,896 Debt Service 3,254,278 3,695,379 3,890,977 195,598 95% 3,890,977 Transfers Out 2,333 5,510,327 9,883,004 4,372,677 56% 9,883,004 Total Uses 13,090,761$ 19,076,231$ 31,639,520$ 12,563,289$ 60% 31,179,785$ Note: Excludes non-cash outlays for depreciation & amortization Change in Fund Balance Total Sources 14,812,252$ 19,362,107$ 22,088,000$ 28,251,932$ Total Uses (13,090,761) (19,076,231) (31,639,520) (31,179,785) Change in Fund Balance 1,721,491$ 285,876$ (9,551,520)$ (2,927,853)$ Beginning Fund Balance 9,058,512$ 9,058,512$ Estimated Ending Fund Balance 9,344,388$ 6,130,659$ Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Year End Estimate Revenues and Other Financing Sources: Water sales are trending above budget, primarily driven by higher irrigation and commercial water sales. Charges for services are expected to fall below budget projections due to fewer late fees than anticipated. Interest earnings are surpassing budget estimates as a result of interest generated from invested bond and loan proceeds, with the year-end forecast increased to $400,000. Miscellaneous revenues are projected to exceed budget expectations due to insurance recoveries. The beginning fund balance has been restated to reflect the nature of the 2025 WIFA loan agreement, which operates as a line of credit drawn down over time. Previously, both the loan amount and the WIFA grant were recorded in the beginning balance; these are now appropriately captured in Grants Revenue and Other Financing Sources as funds are drawn. Uses: Personnel: Expenditures are trending below budget due to vacancies in several positions, including two Water Utility Operators, a Water Operations Supervisor, and a Water Control Systems Supervisor. Operations & Maintenance: Projected savings in CAP water deliver charges and gasoline. Debt Service: The full annual principal payment is recorded at the beginning of the fiscal year, while interest payments occur semiannually in January and June. A detailed schedule of outstanding debt issuances is provided in Appendix 6. Transfers Out: Transfers are primarily to the Water Resource Impact Fee Fund to support NWRRDS capital projects and represent 40% of groundwater preservation fee revenues. This transfer is recorded at year-end and may vary based on actual revenue collections. A smaller transfer of $3,004 was made to the 67% through the fiscal year (Period 8 of 12)Page 13 of 14 Stormwater Utility Fund Financial Status Fiscal Year to Date: February 2026 Revenues ` Amount Percent Charges For Services 1,033,702$ 1,040,982$ 1,527,000$ (486,018)$ 68% 1,543,429$ Grants - - 239,200 (239,200) - 210,991 Interest Earnings 29,169 30,700 20,000 10,700 154% 48,000 Total Revenues 1,062,870$ 1,071,682$ 1,786,200$ (714,518)$ 60% 1,802,420$ Expenses Amount Percent Personnel 605,980$ 603,519$ 990,258$ 386,739$ 61% 964,105$ O&M 199,752 217,927 424,755 206,828 51% 385,661 Capital Outlays - 6,855 738,000 731,145 1% 81,855 Total Expenses 805,732$ 828,300$ 2,153,013$ 1,324,713$ 38% 1,431,621$ Note: Excludes non-cash outlays for depreciation Change in Fund Balance Total Revenues 1,062,870$ 1,071,682$ 1,786,200$ 1,802,420$ Total Expenses (805,732) (828,300) (2,153,013) (1,431,621) Change in Fund Balance 257,138$ 243,382$ (366,813)$ 370,798$ Beginning Fund Balance 1,447,723$ 1,447,723$ Estimated Ending Fund Balance 1,691,105$ 1,818,522$ Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Year End Estimate Revenues: Charges for service are trending slightly higher than budget (1.1%). With respect to grant revenues, the federal grant supporting the Sierra Wash at Glover Road Infrastructure Repair and Rehabilitation capital project is not expected to be received within the current fiscal year. Offsetting this, grant revenues for the Sierra Wash at Via Mandarina Drainage Improvements project are projected to be received this year, as the project was completed in FY26 despite having been originally budgeted in FY25. Interest earnings continue to outperform projections, coming in $28,000, or 140%, above budget. Expenses: Personnel: Savings are expected due to the Senior Engineering Associate position being vacant for 1.5 months and filled at a lower rate than budgeted. Operations & Maintenance: Savings are anticipated in outside professional service, gasoline and vehicle repair and maintenance. Capital Outlays: Budgeted capital expenditures include general infrastructure maintenance and three major capital improvement projects: - Sierra Wash at Glover Road Infrastructure Repair and Rehabilitation ($318,000) - Sierra Wash at Via Mandarina Drainage Improvements ($50,000) - Oro Valley Drive Drainage and Pavement Improvements ($300,000) The Oro Valley Drive Drainage and Pavement Improvements project ($300,000) was taken over by Pima County and has been removed from the year-end estimate. Sierra Wash at Glover Road will likely be delayed into FY27 awaiting a grant. 67% through the fiscal year (Period 8 of 12)Page 14 of 14 APPENDIX 1 El Conquistador Golf Mgmt., LLC Report Date: 2/28/2026 El Conquistador Golf Course Feb - 2026 Budget Feb - 2025 Bud Var PY Var Feb - 2026 Budget Feb - 2025 Bud Var PY Var Rounds Public 7,688 6,000 7,669 1,688 19 37,974 31,250 35,623 6,724 2,351 Member 4,713 3,900 5,029 813 (316) 31,137 28,965 31,464 2,172 (327) Tournament 450 1,000 976 (550) (526) 2,808 5,205 5,632 (2,397) (2,824) Total Rounds 12,851 10,900 13,674 1,951 (823)71,919 65,420 72,719 6,499 (800) Membership Fees 177,933.17 149,500.00 170,212.66 28,433.17 7,720.51 1,297,538.38 1,081,000.00 1,162,537.08 216,538.38 135,001.30 Total Membership Revenue 177,933.17 149,500.00 170,212.66 28,433.17 7,720.51 1,297,538.38 1,081,000.00 1,162,537.08 216,538.38 135,001.30 Sales - Green Fees 412,504.15 274,000.00 380,300.62 138,504.15 32,203.53 1,683,677.18 1,233,750.00 1,456,255.18 449,927.18 227,422.00 Sales - Tournament 25,576.84 51,500.00 43,791.66 (25,923.16) (18,214.82)113,997.78 214,500.00 232,807.69 (100,502.22) (118,809.91) Sales - Member Rounds 819.00 350.00 656.88 469.00 162.12 4,879.00 2,300.00 2,924.75 2,579.00 1,954.25 Lessons & Clinics 450.00 4,250.00 2,230.00 (3,800.00) (1,780.00)7,705.92 20,250.00 14,680.00 (12,544.08) (6,974.08) Range, Rental & Other Golf Related 14,689.05 11,100.00 6,543.93 3,589.05 8,145.12 90,437.70 65,300.00 87,977.40 25,137.70 2,460.30 Cart Fees 37,227.06 30,350.00 33,579.47 6,877.06 3,647.59 276,250.58 230,700.00 253,909.84 45,550.58 22,340.74 Golf Fees Revenue 491,266.10 371,550.00 467,102.56 119,716.10 24,163.54 2,176,948.16 1,766,800.00 2,048,554.86 410,148.16 128,393.30 Sales - Soft Goods 23,025.96 17,250.00 22,671.42 5,775.96 354.54 103,811.87 106,085.00 116,418.24 (2,273.13) (12,606.37) Sales - Hard Goods 16,061.92 11,800.00 17,162.76 4,261.92 (1,100.84)96,461.22 70,800.00 85,128.20 25,661.22 11,333.02 Merchandise Revenue 39,087.88 29,050.00 39,834.18 10,037.88 (746.30)200,273.09 176,885.00 201,546.44 23,388.09 (1,273.35) Other Revenue 1,755.00 500.00 (572.45)1,255.00 2,327.45 15,350.22 15,000.00 (2,743.28)350.22 18,093.50 Other Revenue 1,755.00 500.00 (572.45)1,255.00 2,327.45 15,350.22 15,000.00 (2,743.28)350.22 18,093.50 Sales - Food 41,168.01 875.00 42,023.19 40,293.01 (855.18)272,116.11 3,700.00 271,536.92 268,416.11 579.19 Sales - Beer 27,629.74 2,600.00 28,856.50 25,029.74 (1,226.76)172,086.91 11,200.00 169,813.19 160,886.91 2,273.72 Sales - Wine 2,388.85 0.00 2,642.67 2,388.85 (253.82)17,860.40 0.00 13,958.22 17,860.40 3,902.18 Sales - Liquor 9,344.92 425.00 11,532.71 8,919.92 (2,187.79)64,042.09 1,283.00 63,537.36 62,759.09 504.73 Group Service Charges 1,897.70 0.00 3,437.18 1,897.70 (1,539.48)58,675.74 0.00 17,462.51 58,675.74 41,213.23 Food & Beverage Revenue 82,429.22 3,900.00 88,492.25 78,529.22 (6,063.03)584,781.25 16,183.00 536,308.20 568,598.25 48,473.05 TOTAL REVENUE 792,471.37 554,500.00 765,069.20 237,971.37 27,402.17 4,274,891.10 3,055,868.00 3,946,203.30 1,219,023.10 328,687.80 Expenses COS - Merchandise 35,103.30 20,029.00 28,743.67 (15,074.30) (6,359.63)152,570.75 124,318.75 145,485.15 (28,252.00) (7,085.60) COS - Food 14,462.92 262.50 16,177.51 (14,200.42)1,714.59 104,803.22 1,110.00 102,285.78 (103,693.22) (2,517.44) COS - Beer 8,667.33 780.00 8,357.68 (7,887.33) (309.65)52,571.70 3,360.00 49,537.10 (49,211.70) (3,034.60) COS - Wine (226.26)0.00 1,079.97 226.26 1,306.23 4,523.29 0.00 4,492.73 (4,523.29) (30.56) COS - Liquor 2,804.61 127.50 3,714.69 (2,677.11)910.08 17,860.26 384.90 16,300.68 (17,475.36) (1,559.58) Cost of Sales 60,811.90 21,199.00 58,073.52 (39,612.90) (2,738.38)332,329.22 129,173.65 318,101.44 (203,155.57) (14,227.78) Gross Margin 731,659.47 533,301.00 706,995.68 198,358.47 24,663.79 3,942,561.88 2,926,694.35 3,628,101.86 1,015,867.53 314,460.02 Month-to-Date Year-to-Date 67% through the fiscal year (Period 8 of 12)Page 1 of 3 APPENDIX 1 El Conquistador Golf Mgmt., LLC Report Date: 2/28/2026 El Conquistador Golf Course Feb - 2026 Budget Feb - 2025 Bud Var PY Var Feb - 2026 Budget Feb - 2025 Bud Var PY Var Month-to-Date Year-to-Date Salaries & Wages 179,778.90 146,089.00 122,551.88 (33,689.90) (57,227.02)1,390,550.46 1,084,562.00 1,281,058.23 (305,988.46) (109,492.23) Payroll Taxes 14,586.31 12,750.00 10,276.03 (1,836.31) (4,310.28)105,557.62 89,150.00 103,821.86 (16,407.62) (1,735.76) Workers Comp 3,426.53 2,500.00 2,122.00 (926.53) (1,304.53)29,790.70 20,000.00 22,446.44 (9,790.70) (7,344.26) Employee Benefits 16,912.25 9,500.00 12,563.77 (7,412.25) (4,348.48)83,975.61 86,500.00 85,080.37 2,524.39 1,104.76 Other Employee Benefits 2,452.00 1,300.00 1,619.55 (1,152.00) (832.45)22,728.23 10,400.00 11,693.43 (12,328.23) (11,034.80) Total Payroll & Benefits 217,155.99 172,139.00 149,133.23 (45,016.99) (68,022.76)1,632,602.62 1,290,612.00 1,504,100.33 (341,990.62) (128,502.29) Meals & Entertainment 628.26 975.00 679.17 346.74 50.91 3,827.37 4,725.00 6,288.88 897.63 2,461.51 Travel 0.00 1,650.00 1,399.18 1,650.00 1,399.18 3,697.10 4,350.00 4,819.57 652.90 1,122.47 Other Employee Related 0.00 0.00 0.00 0.00 0.00 521.34 0.00 769.89 (521.34)248.55 Total Employee Related 628.26 2,625.00 2,078.35 1,996.74 1,450.09 8,045.81 9,075.00 11,878.34 1,029.19 3,832.53 R&M - Equipment 15,124.93 6,500.00 7,267.01 (8,624.93) (7,857.92)119,429.90 101,300.00 99,058.25 (18,129.90) (20,371.65) R&M - Building 4,588.00 5,000.00 1,474.46 412.00 (3,113.54)9,743.58 22,800.00 14,724.68 13,056.42 4,981.10 R&M - Golf Course & Tennis Courts 0.00 1,000.00 5,114.38 1,000.00 5,114.38 14,315.10 25,500.00 33,257.50 11,184.90 18,942.40 R&M - Other 413.07 400.00 802.08 (13.07)389.01 7,284.56 3,200.00 2,807.28 (4,084.56) (4,477.28) Sod 0.00 0.00 0.00 0.00 0.00 0.00 1,500.00 1,067.72 1,500.00 1,067.72 Sand & Gravel 0.00 0.00 1,567.95 0.00 1,567.95 14,989.71 13,500.00 18,035.60 (1,489.71)3,045.89 Seed & Mulch 0.00 0.00 0.00 0.00 0.00 117,258.78 145,000.00 125,961.34 27,741.22 8,702.56 Gas, Diesel, Oil & Lubricants 2,474.97 3,450.00 1,528.99 975.03 (945.98)29,332.71 33,100.00 27,996.49 3,767.29 (1,336.22) Fertilizers 1,789.06 3,800.00 5,263.46 2,010.94 3,474.40 34,674.84 54,800.00 38,103.49 20,125.16 3,428.65 Chemicals 5,458.96 6,100.00 9,482.23 641.04 4,023.27 73,841.74 56,350.00 41,036.19 (17,491.74) (32,805.55) Total Repairs & Maintenance 29,848.99 26,250.00 32,500.56 (3,598.99)2,651.57 420,870.92 457,050.00 402,048.54 36,179.08 (18,822.38) Marketing & Advertising 930.50 1,120.00 1,580.40 189.50 649.90 7,887.13 11,285.00 16,085.08 3,397.87 8,197.95 Computer Related 1,129.60 0.00 0.00 (1,129.60) (1,129.60)14,339.47 0.00 0.00 (14,339.47) (14,339.47) Dues & Subscriptions 3,638.15 3,870.00 4,154.10 231.85 515.95 29,490.99 30,960.00 27,753.97 1,469.01 (1,737.02) Operating Supplies 8,718.39 15,250.00 15,800.60 6,531.61 7,082.21 75,707.08 70,650.00 91,317.38 (5,057.08)15,610.30 Linens & Laundry 614.76 0.00 461.07 (614.76) (153.69)5,877.75 0.00 6,254.30 (5,877.75)376.55 Postage 135.13 75.00 155.88 (60.13)20.75 407.69 300.00 443.54 (107.69)35.85 Member Relations 28.24 0.00 100.00 (28.24)71.76 717.18 1,000.00 5,964.98 282.82 5,247.80 Uniforms 126.49 0.00 49.65 (126.49) (76.84)4,276.35 6,175.00 5,816.94 1,898.65 1,540.59 Other Operating 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,182.00 0.00 1,182.00 Merchant Processing Fees 10,837.92 9,900.00 11,496.33 (937.92)658.41 59,783.94 49,800.00 53,746.31 (9,983.94) (6,037.63) Bank Fees 0.00 0.00 0.00 0.00 0.00 (31.83)0.00 1,004.56 31.83 1,036.39 Cash Short / (Over) 0.00 0.00 0.00 0.00 0.00 (35.73)0.00 0.00 35.73 35.73 Late Fees & Penalties 0.00 0.00 0.00 0.00 0.00 0.00 0.00 22.56 0.00 22.56 Centralized Services 2,388.36 2,125.00 1,701.47 (263.36) (686.89)19,080.74 17,000.00 17,183.63 (2,080.74) (1,897.11) Tournament Expenses 0.00 0.00 0.00 0.00 0.00 0.00 0.00 969.15 0.00 969.15 Total Operating Expenses 28,547.54 32,340.00 35,499.50 3,792.46 6,951.96 217,500.76 187,170.00 227,744.40 (30,330.76)10,243.64 Operating Profit 455,478.69 299,947.00 487,784.04 155,531.69 (32,305.35)1,663,541.77 982,787.35 1,482,330.25 680,754.42 181,211.52 67% through the fiscal year (Period 8 of 12)Page 2 of 3 APPENDIX 1 El Conquistador Golf Mgmt., LLC Report Date: 2/28/2026 El Conquistador Golf Course Feb - 2026 Budget Feb - 2025 Bud Var PY Var Feb - 2026 Budget Feb - 2025 Bud Var PY Var Month-to-Date Year-to-Date Electric & Gas 18,965.55 21,500.00 20,014.67 2,534.45 1,049.12 181,404.61 204,000.00 190,040.89 22,595.39 8,636.28 Water 29,684.11 39,450.00 43,464.01 9,765.89 13,779.90 642,520.77 713,850.00 714,164.65 71,329.23 71,643.88 Telephone & Internet Connection 855.16 875.00 648.94 19.84 (206.22)5,287.19 7,000.00 5,953.00 1,712.81 665.81 Other Third-party Services 3,963.70 5,325.00 3,952.48 1,361.30 (11.22)32,592.29 41,650.00 41,565.32 9,057.71 8,973.03 Total Utilities 53,468.52 67,150.00 68,080.10 13,681.48 14,611.58 861,804.86 966,500.00 951,723.86 104,695.14 89,919.00 Lease Expense - Fixed 15,077.76 14,582.00 13,258.76 (495.76) (1,819.00)120,622.08 116,656.00 106,070.08 (3,966.08) (14,552.00) Lease Expense - Short-term & Other 298.11 298.00 298.11 (0.11)0.00 2,384.88 2,934.00 2,957.73 549.12 572.85 Total Leases 15,375.87 14,880.00 13,556.87 (495.87) (1,819.00)123,006.96 119,590.00 109,027.81 (3,416.96) (13,979.15) Fixed Operating Expenses 68,844.39 82,030.00 81,636.97 13,185.61 12,792.58 984,811.82 1,086,090.00 1,060,751.67 101,278.18 75,939.85 Gross Operating Profit 386,634.30 217,917.00 406,147.07 168,717.30 (19,512.77)678,729.95 (103,302.65)421,578.58 782,032.60 257,151.37 Insurance 7,546.50 6,000.00 5,877.20 (1,546.50) (1,669.30)60,372.01 48,000.00 50,595.11 (12,372.01) (9,776.90) Bad Debt Expense 28.24 200.00 85.77 171.76 57.53 523.49 1,600.00 4,857.62 1,076.51 4,334.13 Fees, Permits, & Licenses 925.00 500.00 735.00 (425.00) (190.00)8,707.74 6,375.00 6,028.06 (2,332.74) (2,679.68) Base Management Fees 11,040.81 11,094.00 10,824.32 53.19 (216.49)88,542.97 88,752.00 86,594.56 209.03 (1,948.41) Other Expenses 19,540.55 17,794.00 17,522.29 (1,746.55) (2,018.26)158,146.21 144,727.00 148,075.35 (13,419.21) (10,070.86) Net Operating Income 367,093.75 200,123.00 388,624.78 166,970.75 (21,531.03)520,583.74 (248,029.65)273,503.23 768,613.39 247,080.51 Incentive Management Fee 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8,030.62 0.00 8,030.62 NET INCOME 367,093.75 200,123.00 388,624.78 166,970.75 (21,531.03)520,583.74 (248,029.65)265,472.61 768,613.39 255,111.13 EBITDA 367,093.75 200,123.00 388,624.78 166,970.75 (21,531.03)520,583.74 (248,029.65)265,472.61 768,613.39 255,111.13 67% through the fiscal year (Period 8 of 12)Page 3 of 3 APPENDIX 2 Operating:Through Feb Budget Cumulative FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY2024 FY2025 FY2026 FY 2026 Actuals Revenue 36 Hole 500,158 1,883,452 1,798,304 2,171,484 2,367,136 2,593,395 3,522,083 3,674,489 3,856,880 4,724,718 4,933,178 3,294,105 4,311,050 35,319,382 Pusch Ridge - 105,370 99,134 59,726 106,184 98,316 - 380,375 414,225 528,346 619,276 415,652 528,628 2,826,604 F&B - Overlook - 606,171 708,594 745,766 671,582 554,336 448,782 671,479 725,222 766,679 865,944 565,134 785,400 7,329,689 Total Revenue 500,158 2,594,993 2,606,032 2,976,976 3,144,902 3,246,047 3,970,865 4,726,343 4,996,327 6,019,743 6,418,398 4,274,891 5,625,078 45,475,675 Expenses 36 Hole 1,112,252 3,588,714 3,936,889 3,817,932 3,771,706 3,891,341 3,915,216 3,740,982 3,929,757 4,263,007 4,365,456 2,914,000 4,468,886 43,247,252 Pusch Ridge - 253,513 256,769 236,160 230,196 287,112 - 319,702 390,959 478,320 516,762 338,677 508,480 3,308,171 F&B - Overlook - 861,740 823,383 841,866 785,499 701,538 440,382 630,509 596,910 684,037 756,376 501,630 751,271 7,623,870 Total Expenses 1,112,252 4,703,967 5,017,041 4,895,958 4,787,401 4,879,991 4,355,598 4,691,193 4,917,626 5,425,364 5,638,594 3,754,307 5,728,637 54,179,292 Profit/(Loss) 36 Hole (612,094) (1,705,262) (2,138,585) (1,646,448) (1,404,570) (1,297,946) (393,133) (66,493) (72,877) 461,711 567,722 380,105 (157,836) (7,927,870) Pusch Ridge - (148,143) (157,635) (176,434) (124,012) (188,796) - 60,673 23,266 50,026 102,514 76,975 20,148 (481,566) F&B - Overlook - (255,569) (114,789) (96,100) (113,917) (147,202) 8,400 40,970 128,312 82,642 109,569 63,504 34,129 (294,181) Total Operating Profit/(Loss)(612,094) (2,108,974) (2,411,009) (1,918,982) (1,642,499) (1,633,944) (384,733) 35,150 78,701 594,379 779,804 520,584 (103,559) (8,703,617) Capital Investments 45,116 47,909 29,464 - - 131,035 2,828,061 4,619,904 2,184,848 743,897 524,475 630,000 11,154,709 Initial purchase (1)300,000 350,000 350,000 1,000,000 Notes: (1) $1,000,000 original purchase of courses and community center 1/2 cent sales tax 506,710 2,030,750 2,199,466 2,330,941 2,463,034 2,584,916 2,947,420 3,535,507 3,707,578 3,792,744 3,904,926 593,099 - 30,597,091 HOA contributions - - - - - - 125,000 159,050 159,050 159,050 159,050 - 34,050 761,200 POST AGREEMENTPRE AGREEMENT Town of Oro Valley Golf Analysis APPENDIX 2 Page 1 of 2 APPENDIX 2 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY 2024 Gross Margin 213,698 225,040 295,419 332,783 495,412 480,305 525,109 589,339 694,275 586,473 430,577 294,092 Expenses 406,558 333,614 420,523 454,504 412,959 349,298 308,213 291,616 334,623 326,900 398,960 530,376 Net Income/(Loss) (192,860) (108,573) (125,103) (121,721) 82,453 131,007 216,896 297,723 359,652 259,573 31,617 (236,284) FY 2025 Gross Margin 263,005 299,163 297,857 375,363 594,117 556,764 534,838 706,996 737,685 675,958 450,287 378,899 Expenses 411,466 416,806 442,887 488,946 531,458 378,085 374,611 318,371 420,446 381,953 453,967 476,826 Net Income/(Loss) (148,461) (117,643) (145,030) (113,583) 62,659 178,679 160,226 388,625 317,239 294,005 (3,681) (97,927) FY 2026 Gross Margin 337,860 344,855 377,531 402,476 613,880 545,516 588,783 731,659 Expenses 416,385 419,190 518,351 474,811 456,611 404,521 367,544 364,566 Net Income/(Loss) (78,525) (74,335) (140,820) (72,334) 157,270 140,995 221,239 367,094 - - - - Town of Oro Valley Golf Analysis - Contractor Financials - 200,000 400,000 600,000 800,000 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Comparison of Gross Income by Month - Total Golf Operations FY 2024 FY 2025 FY 2026 - 100,000 200,000 300,000 400,000 500,000 600,000 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Comparison of Total Expenses by Month - Total Golf Operations FY 2024 FY 2025 FY 2026 (400,000) (200,000) - 200,000 400,000 600,000 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Comparison of Net Income/(Loss) by Month - Total Golf Operations FY 2024 FY 2025 FY 2026 APPENDIX 2 Page 2 of 2 APPENDIX 3 Consolidated Year-to-Date Financial Report through February 2026 FY 2025/2026 Fund FY 25/26 Beginning Fund Balance Revenue Other Fin Sources/ Transfers In Total In Personnel O&M Capital Debt Service Other Fin Uses/ Transfers Out Total Out Fund Balance Through February 2026 General Fund 20,702,401 37,349,392 - 37,349,392 23,502,783 8,930,208 87,806 - 8,203,829 40,724,625 17,327,168 Highway Fund 1,598,787 2,926,946 1,000,000 3,926,946 874,383 656,158 2,029,693 - - 3,560,234 1,965,499 Grants and Contributions Fund 60,787 539,900 59,109 599,009 406 144,146 336,442 - - 480,994 178,801 Seizure & Forfeiture - Justice/State 374,906 24,453 - 24,453 - - - - - - 399,360 Community Center Fund 2,921,900 5,825,912 - 5,825,912 773,922 4,405,455 993,406 - 172,968 6,345,751 2,402,061 Municipal Debt Service Fund 53,800 129,851 3,918,566 4,048,417 - 8,413 - 4,013,071 - 4,021,483 80,733 Water Resource System & Dev. Impact Fee Fund 8,104,970 1,086,448 11,109,796 12,196,244 - 84,040 13,934,724 557,505 - 14,576,269 5,724,945 Townwide Roadway Dev Impact Fee Fund 3,095,031 548,840 - 548,840 - - - - - - 3,643,871 Parks & Recreation Impact Fee Fund 381,038 333,368 - 333,368 - - - - - - 714,406 Police Impact Fee Fund 122,916 105,564 - 105,564 - - - - 38,765 38,765 189,714 Capital Fund 16,847,866 1,174,166 4,500,000 5,674,166 - 22,664 6,838,030 - 1,059,109 7,919,802 14,602,230 PAG/RTA Fund 446,926 30,157 - 30,157 - 12,770 70,000 - - 82,770 394,313 Water Utility 9,058,512 15,627,125 3,734,982 19,362,107 2,281,906 6,453,820 1,134,798 3,695,379 5,510,327 19,076,231 9,344,388 Stormwater Utility 1,447,723 1,071,682 - 1,071,682 603,519 217,927 6,855 - - 828,300 1,691,105 Benefit Self Insurance Fund 3,995,323 2,743,428 - 2,743,428 - 3,282,151 - - - 3,282,151 3,456,600 Recreation In-Lieu Fee Fund 52,018 992 - 992 - - - - - - 53,010 Total 69,264,903 69,518,224 24,322,453 93,840,677 28,036,919 24,217,751 25,431,753 8,265,955 14,984,998 100,937,375 62,168,205 67% through the fiscal year (Period 8 of 12)Page 1 of 1 APPENDIX 4 Local Sales Tax Collections FY 2025/26 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN TOTAL Construction Sales Tax 179,150 163,435 98,998 89,454 243,032 156,790 253,437 201,202 1,385,497 Utility Sales Tax 302,786 412,779 407,129 429,423 372,182 261,920 293,969 319,220 2,799,407 Retail Sales Tax 941,576 897,606 867,961 893,562 934,258 1,001,735 1,345,143 937,347 7,819,190 Remote Seller Sales Tax 192,279 205,970 220,208 196,932 221,954 259,550 305,982 228,931 1,831,805 Bed Tax 112,651 91,706 92,611 115,225 146,552 178,739 154,051 259,109 1,150,645 Restaurant & Bar Sales Tax 269,228 238,235 263,782 292,127 270,580 270,346 335,217 273,916 2,213,430 All Other Local Sales Tax *115,341 108,925 133,051 119,804 136,567 153,290 161,223 189,792 1,117,992 Monthly Total 2,113,010$ 2,118,656$ 2,083,741$ 2,136,528$ 2,325,125$ 2,282,369$ 2,849,021$ 2,409,518$ 18,317,967$ Cumulative Total 2,113,010$ 4,231,666$ 6,315,407$ 8,451,935$ 10,777,059$ 13,059,428$ 15,908,449$ 18,317,967$ Monthly variance (220,775)$ (201,284)$ (240,986)$ (191,015)$ (279,060)$ (262,332)$ (258,450)$ (187,731)$ Cumulative variance (220,775)$ (422,059)$ (663,045)$ (854,060)$ (1,133,120)$ (1,395,452)$ (1,653,902)$ (1,841,633)$ FY 2024/25 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN TOTAL Construction Sales Tax 427,032 291,729 371,199 324,860 545,601 253,973 356,030 414,112 171,326 130,317 296,873 293,764 3,876,815 Utility Sales Tax 306,838 399,701 417,156 405,901 370,322 335,865 288,120 341,375 312,662 259,576 253,922 266,994 3,958,432 Retail Sales Tax 937,920 893,895 855,486 893,023 923,982 1,034,704 1,317,644 978,283 891,361 1,032,305 1,001,099 922,356 11,682,057 Remote Seller Sales Tax 164,541 176,303 174,003 175,191 187,988 229,019 275,105 193,315 178,898 200,958 196,195 199,852 2,351,368 Bed Tax 107,778 180,045 136,688 120,312 177,934 231,333 286,851 209,622 320,232 321,945 252,906 177,851 2,523,496 Restaurant & Bar Sales Tax 271,259 239,294 251,212 286,989 268,563 287,017 374,825 280,614 314,687 382,887 280,512 327,412 3,565,273 All Other Local Sales Tax *118,418 138,973 118,983 121,267 129,793 172,790 208,896 179,929 219,760 224,200 183,278 134,802 1,951,088 Monthly Total 2,333,785$ 2,319,940$ 2,324,727$ 2,327,543$ 2,604,184$ 2,544,700$ 3,107,472$ 2,597,249$ 2,408,926$ 2,552,188$ 2,464,785$ 2,323,029$ 29,908,529$ Cumulative Total 2,333,785$ 4,653,725$ 6,978,452$ 9,305,995$ 11,910,179$ 14,454,879$ 17,562,351$ 20,159,600$ 22,568,526$ 25,120,715$ 27,585,500$ 29,908,529$ *Does not include cable franchise fees or sales tax audit revenues 67% through the fiscal year (Period 8 of 12)Page 1 of 1 APPENDIX 5 General Fund State Shared Revenues FY 2025/26 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN TOTAL State Shared Income Tax 793,555 793,555 793,555 793,555 793,555 793,556 793,555 793,555 6,348,442 State Shared Sales Tax 619,095 603,827 595,627 602,207 623,385 588,988 743,390 602,202 4,978,721 County Auto Lieu 216,240 215,390 219,757 235,357 160,740 250,037 216,183 200,625 1,714,329 Smart and Safe - - - - - 131,143 - - 131,143 Monthly Total 1,628,891$ 1,612,772$ 1,608,939$ 1,631,119$ 1,577,680$ 1,763,724$ 1,753,127$ 1,596,382$ 13,172,635$ Cumulative Total 1,628,891$ 3,241,663$ 4,850,602$ 6,481,721$ 8,059,402$ 9,823,125$ 11,576,253$ 13,172,635$ Monthly variance (59,126)$ (41,479)$ (26,784)$ (47,715)$ (82,925)$ (36,755)$ 44,440$ (161,087)$ Cumulative variance (59,126)$ (100,605)$ (127,389)$ (175,104)$ (258,029)$ (294,783)$ (250,344)$ (411,430)$ FY 2024/25 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN TOTAL State Shared Income Tax 856,425 856,425 856,425 856,425 856,425 856,425 856,425 856,425 856,425 856,425 856,425 856,425 10,277,099 State Shared Sales Tax 593,796 582,212 575,094 597,416 614,349 622,937 724,079 596,353 582,965 677,435 632,153 618,346 7,417,134 County Auto Lieu 237,795 215,615 204,204 224,993 189,831 182,939 128,184 304,691 257,209 119,394 230,779 325,869 2,621,504 Smart and Safe - - - - - 138,177 - - 15 - - 148,981 287,173 Monthly Total 1,688,016$ 1,654,252$ 1,635,723$ 1,678,834$ 1,660,605$ 1,800,479$ 1,708,688$ 1,757,469$ 1,696,614$ 1,653,254$ 1,719,357$ 1,949,620$ 20,602,911$ Cumulative Total 1,688,016$ 3,342,268$ 4,977,991$ 6,656,825$ 8,317,430$ 10,117,909$ 11,826,596$ 13,584,065$ 15,280,679$ 16,933,933$ 18,653,291$ 20,602,911$ 67% through the fiscal year (Period 8 of 12)Page 1 of 1 APPENDIX 6 Debt Service Expense Adopted Forecast Forecast Forecast Forecast Forecast Forecast Forecast Final Payment 2025/26 2026/27 2027/28 2028/29 2029/30 2030-2035 2036-2040 2041-2045 Date Municipal Debt Service Fund Excise Tax Revenue Bonds - - - 2010 CREBS 186,370 176,066 170,437 - - - - - 2028 2012 Revenue Bonds 224,631 227,147 224,125 - - - - - 2028 2015a Refunding Excise Tax 304,379 - - - - - - - 2026 2016 Excise Tax 172,968 172,635 172,236 172,760 172,207 344,447 - - 2032 2017a Refunding Excise Tax 138,645 138,626 - - - - - - 2027 2018a Excise Tax Revenue Obligation 171,515 171,446 171,502 171,429 171,229 684,420 - - 2034 2021 Parks & Rec Excise Tax 1,543,300 1,544,800 1,539,425 1,542,050 1,537,550 7,693,950 7,682,400 3,063,900 2042 2021 Pension Obligation Bonds 1,271,262 1,266,350 1,264,118 1,264,461 1,262,588 6,312,780 5,036,273 - 2039 Total Municipal Debt Service Fund 4,013,070 3,697,070 3,541,843 3,150,700 3,143,574 15,035,597 12,718,673 3,063,900 Community Center Fund Contracts Payable Leased Fitness Equipment 7,668 - - - - - - - 2026 Financed Fitness Equipment 22,677 7,559 - - - - - - 2027 Golf Carts 130,867 76,339 - - - - - - 2027 Leased Copiers 76,800 76,800 12,800 - - - - - 2028 Total Community Center Fund 238,012 160,698 12,800 - - - - - WRSDIF Fund Excise Tax Revenue Bonds 2021b Excise Tax Revenue Obligation (4) 55,924 56,015 55,596 34,453 8,255 - - - 2030 2025b Senior Lien Water Revenue Obligation (5) 455,408 455,411 455,408 455,409 455,410 2,277,041 - - 2035 2025b WIFA Loan (6) 493,700 468,639 468,639 468,639 468,639 2,343,196 2,343,196 2,343,196 2045 Total WSRDIF Fund 1,005,032 980,065 979,643 958,501 932,304 4,620,237 2,343,196 2,343,196 Water Utility Fund Excise Tax Revenue Bonds 2015b Refunding Revenue Bonds (1) 148,500 - - - - - - 2026 2017b Refunding Revenue Bonds (2) 1,619,650 1,619,032 - - - - - - 2027 2018b Excise Tax Revenue Obligation (3) 508,532 508,144 508,118 507,710 506,914 2,024,062 - - 2034 2021a Excise Tax Revenue Obligations (4) 743,499 744,714 739,138 458,046 109,745 - - - 2030 2025a Senior Lien Water Revenue Obligation (5) 303,605 303,607 303,605 303,606 303,607 1,518,027 - - 2035 Water Revenue Loans 2014 WIFA Loan 371,750 371,509 371,261 371,006 - - - - 2029 2025a WIFA Loan (6) 329,134 312,426 312,426 312,426 312,426 1,562,131 1,562,131 1,562,131 2045 Total Water Utility Fund 4,024,671 3,859,432 2,234,549 1,952,794 1,232,692 5,104,220 1,562,131 1,562,131 TOTAL DEBT SERVICE - ALL FUNDS 9,280,785 8,697,265 6,768,834 6,061,995 5,308,571 24,760,053 16,624,000 6,969,227 (5) Series 2025 debt service is split between the Water Utility Fund (40%) and the Water Impact fee Fund (60%). (6) 2025 WIFA loan debt service is split between the Water Utility Fund (40%) and the Water Impact fee Fund (60%). (1) Series 2015 for municipal operation facilities debt service is split between General Fund excise tax revenue (67%) and water revenue (33%). (2) Series 2017 debt service is split between General Fund excise tax revenue (8%) and water revenue (92%). (3) Series 2018 for water infrastucture and police evidence and substation facility. Debt service is split between General Fund excise tax revenue (25%) and water revenue (75%). (4) Series 2021 debt service is split between the Water Utility Fund (93%) and the Water Impact fee Fund (7%). APPENDIX 7 Town of Oro Valley Operating Investment Summary Fiscal Year 2025/26 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN LGIP Ending Market Value 11,048,264$ 10,564,199$ 9,802,412$ 8,759,464$ 10,446,793$ 10,759,658$ 12,183,963$ 16,067,942$ Investment Income 34,213$ 41,256$ 34,954$ 31,477$ 35,518$ 33,762$ 33,536$ 42,232$ 1-Month Yield 4.33% 4.32% 4.18% 4.09% 3.97% 3.81% 3.71% 3.68% PFM Asset Management Closing Market Value 39,752,553$ 38,301,783$ 37,918,398$ 37,062,569$ 35,042,894$ 34,056,344$ 30,665,973$ 31,119,238$ Investment Income 199,738$ 172,343$ 102,243$ 130,423$ 207,951$ 80,876$ 168,167$ 167,100$ Annualized Yield to Maturity at Cost 4.51% 4.54% 4.53% 4.53% 4.54% 4.53% 4.55% 4.45% Wells Fargo Sweep Ending Balance 3,413,781$ 6,187,767$ 2,581,008$ 4,856,250$ 4,081,463$ 3,859,896$ 8,892,243$ 3,852,677$ Investment Income 13,910$ 10,451$ 15,825$ 13,151$ 10,020$ 9,793$ 13,057$ 15,364$ 7-Day Simple Yield 4.18% 4.18% 4.01% 4.00% 3.84% 3.65% 3.57% 3.56% Total Ending Balance 54,214,597$ 55,053,750$ 50,301,818$ 50,678,283$ 49,571,151$ 48,675,898$ 51,742,179$ 51,039,857$ Total Investment Income 247,861$ 224,050$ 153,022$ 175,052$ 253,489$ 124,431$ 214,760$ 224,696$ APPENDIX 8 Town of Oro Valley - Development Impact Fee Fund Projects Parks and Recreation Facilities Description Cost Completed? Skate Park $1,500,000 Yes Playground and Parking Lot $1,700,000 Yes Multiuse Fields (lighted) $1,200,000 Yes Dog Park $150,000 Yes Developed Park Land $927,694 Park Amenities $2,501,696 Police Police Substation Debt $1,198,500 Police Vehicles $846,050 Street Facilities La Cholla Blvd, Tangerine Rd-Lambert Ln - Road Widening $1,700,000 Yes Shannon Rd, Tangerine Rd-Naranja Dr - New Road $1,000,000 Lambert Ln. .5 mi E of Shannon-Rancho Sonora - Road Widening $1,000,000 Rancho Vistoso & Woodburne - Intersection Improvement $750,000 Oracle Rd & Rams Field Intersection - Intersection Improvement $750,000 Moore Rd La Cholla Blvd - Intersection Improvement $900,000 Moore Rd - Extension E of Rancho Vistoso Blvd - New Road & Intersection $1,026,840 Yes Moore Rd & La Canada Dr Intersection - Intersection Improvement $1,200,000 Yes Glover Rd Multi Use Path - Multi-modal facility $150,000 Yes Glover Rd south half widening - Road Widening $500,000 Yes Water Facilities Water Supply Steam Pump D-Zone Well $1,500,000 Program Management Support Services (P) $1,050,000 Yes Well Improvement Analysis and Recovery Permits (P) $150,000 Yes Well Drilling and Testing (P) $300,000 Yes Construction Permitting, Drilling, Development and Testing (P) $1,500,000 Yes Well Equipment Design and Site Improvements (P) $1,800,000 Yes Storage Palisades C-Zone Storage Tank and Pipeline $4,250,000 Pressure Zone G Storage Expansion $8,000,000 Pressure Zone G, H and I Storage Expansion $4,000,000 Forebay Design (P)$99,231 Yes Forebay Reservoir Construction (P) $900,000 Yes Shannon Rd Forebay Reservoir And Booster Station Prop (Ind.) $240,000 Yes Forebay Reservoir Booster Station Design (Ind.) $90,000 Yes Shannon Rd Forebay Reservoir and Booster Station Design (Ind.) $180,000 Yes Booster Station Construction Forebay Res. (Ind.) $300,000 Yes Shannon Road Forebay Res. Construction (Ind.) $840,000 Yes Shannon Road Forebay Res. Construction (Ind.) $540,000 Yes Arizona municipalities can charge development fees to cover the cost of infrastructure improvements needed to support new development. These fees are one-time payments used to fund projects like building new roads, parks, or water facilities. The amount of the fee is determined by an Infrastructure Improvements Plan (IIP) and land use assumptions. Importantly, development fees can only be used for building new infrastructure or paying off debt for growth-related projects. They cannot be used for ongoing maintenance, repairs, or addressing existing problems. The Town's IIP includes public services for parks and recreation facilities, police facilities, street facilities, and water facilities. Below is a list of identified IIP projects use in the latest impact fee study to calculate the development fees. These are projects that would be eligible to be funded by development fees as outlined in ARS § 9-463.05 (T)(7)(a). APPENDIX 8 Page 1 of 2 APPENDIX 8 Water Facilities Continued Description Cost Completed? Distribution Moore Road F-Zone Interconnect $750,000 Water Plant 14 Booster Capacity Expansion $250,000 Pipeline Design (Recovery Water & Transmission) (P) $660,692 Yes Pipeline Construction (P) $4,320,000 Pipeline Route Study and Preliminary Design (Ind.) $120,000 Yes Pipeline Easement Acquisition (Ind.) $450,000 Yes Pipeline Design (Ind.) $600,000 Yes Pipeline Construction NWRRDS to La Canada Res. (Ind.) $5,880,000 Interconnect to Tangerine Rd. (Ind.) $270,000 Yes Interconnect to Lambert Lane (Ind.) $510,000 Yes APPENDIX 8 Page 2 of 2