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AGENDA
ORO VALLEY
BUDGET AND FINANCE COMMISSION
REGULAR SESSION
MAY 19, 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 APRIL 21, 2026 REGULAR SESSION MEETING MINUTES
2.PRESENTATION, REVIEW AND DISCUSSION OF TOWN FY2026/27 TOWN MANAGER'S
RECOMMENDED BUDGET
3.DISCUSSION AND POSSIBLE RECOMMENDATION TO DEDICATE ALL FUTURE CONSTRUCTION
SALES TAX RECEIPTS FROM THE GENERAL FUND TO THE CAPITAL FUND
COUNCIL LIAISON COMMENTS
ADJOURNMENT
POSTED: 5/15/26 at 5:00 PM by ck
POSTED: 5/15/26 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:05/19/2026
Submitted By:Melissa Flores, Legal
SUBJECT:
REVIEW AND APPROVAL OF THE APRIL 21, 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 April 21, 2026 regular session meeting minutes.
Attachments
Draft Minutes 042126
D R A F T
MINUTES
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
Present: John Moothart, Commissioner
Eloho Okeze, Commissioner
Erin Krapf, Commissioner
Dan Karlsberg, Chair
Absent:Joyce Garland, Vice Chair [EXCUSED]
Staff Present: Joe Winfield, Mayor
Jeff Wilkins, Town Manager
Wendy Gomez, Deputy Finance Director
Chris Hutchison, Senior Budget Analyst
PLEDGE OF ALLEGIANCE led by Chair Karlsberg
CALL TO AUDIENCE - No speaker cards were received.
STAFF LIAISON REPORT
Deputy Finance Director, Wendy Gomez, reports on the following:
Budget dates to note:
Town Manager's Recommended Budget, staff's goal is to have it posted online by close of business on
April 24, 2026. Printed copies of the Town Manager's Recommended Budget will be available upon
request.
Study Session will be held on Monday, May 4, 2026, at 5:00 PM
If needed, another Study Session will be held on May 6, 2026, at 5:00 PM
The Tentative Budget and Public Hearing is set for June 3, 2026, at 6 PM.
Final adoption and second Public Hearing is set for June 17, 2026 at 6 PM
REGULAR SESSION AGENDA
1.REVIEW AND APPROVAL OF THE MARCH 17, 2026 REGULAR SESSION MEETING MINUTES
4/21/26 Minutes, Budget and Finance Commission Regular Session 1
Motion by Commissioner John Moothart, seconded by Commissioner Erin Krapf to approve with changes
the March 17, 2026 regular session meeting minuts.
Vote: 4 - 0 Carried
2.PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY25/26 FINANCIAL UPDATE
THROUGH JANUARY 2026 (PLEASE REFERENCE ATTACHMENTS)
Deputy Finance Director, Wendy Gomez, states that this item would not be presented as February's update
will be presented. Commissioners have no questions and move past item.
3.PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY25/26 FINANCIAL UPDATE
THROUGH FEBRUARY 2026 (PLEASE REFERENCE ATTACHMENTS)
Presented by Deputy Finance Director, Wendy Gomez. Discussion ensued amongst Staff and
Commissioners.
COUNCIL LIAISON COMMENTS
Mayor Winfield provided the following comments:
Items to note for tomorrow's Town Council Meeting:
Meeting will begin in Executive Session as it will be the Chief of Police's annual performance
evaluation
Meeting to proceed with a presentation on broadband infrastructure initiatives
Presentation on status of OV's Path Forward
On the Regular Agenda, an IGA that will be reviewed between the Golder Ranch Fire District and the
Town related to drones
OV Trails Connect plan has been completed
Small Study Session on Small Animal Husbandry
Another Executive Session will take place on the Contract Town Attorney Services
This evening there is a Citizen's Academy Graduation
Earth Day is tomorrow and this morning, Town Staff put together seed balls
An opportunity for yourselves and family to participate in a litter pick up, organized by Jessica Hynd our
Constituent Services Coordinator
ADJOURNMENT
Motion by Commissioner Erin Krapf, seconded by Commissioner Eloho Okeze to adjourn the meeting at
4:41 PM
Vote: 4 - 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 21st day of April, 2026. I
further certify that the meeting was duly called and held and that a quorum was present.
Dated this 21st day of April, 2026.
___________________________
Melissa Flores
Legal Secretary
4/21/26 Minutes, Budget and Finance Commission Regular Session 2
Budget and Finance Commission 2.
Meeting Date:05/19/2026
Submitted By:David Gephart, Finance
SUBJECT:
PRESENTATION, REVIEW AND DISCUSSION OF TOWN FY2026/27 TOWN MANAGER'S RECOMMENDED
BUDGET
RECOMMENDATION:
N/A
EXECUTIVE SUMMARY:
The FY2026/27 Town Manager's Recommended Budget has been distributed. The budget is $130.0 million,
representing a decrease of $21 million, or 14% from the current year adopted budget. The General Fund totals
$55.0 million including contingency, representing a $324,163, or 0.01% increase over the current year adopted
budget. The Capital Improvement Program totals $26.6M, down from $44.5M in the current year. This
presentation will review the proposed budget and allow for questions and feedback from the Budget and Finance
Commission.
Town staff held a study session with Town Council to present the Manager's Recommended Budget on May 4,
which included the 10-year Capital Improvement Program (CIP) as well as the proposed Town operational budget.
BACKGROUND OR DETAILED INFORMATION:
N/A
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
N/A - this item is for review and discussion only
Attachments
FY2026/27 Manager's Recommended Budget
FY 26/27 TMRB BFC Slides
TOWN MANAGER’S
RECOMMENDED
BUDGET
FY 2026/27
Town of Oro Valley
Town Manager’s Recommended
Fiscal Year 2026/27 Budget
Table of Contents
Financial Overview
Budget Message ................................................................. i
Estimated Fund Balance Report ................................... 1
Fund Balances ..................................................................... 2
Expenditure Schedule by Fund ..................................... 3
Budget Summary by Fund
General Fund ................................................................. 4
Community Center Fund ........................................... 5
Highway Fund ............................................................... 8
Seizures & Forfeitures ................................................ 9
Municipal Debt Service Fund .................................. 10
Capital Fund ................................................................... 11
Grants & Contributions Fund ................................... 12
Townwide Roadway Development
Impact Fee Fund ...................................................... 13
PAG/RTA Fund .............................................................. 14
Parks & Recreation Impact Fee Fund ................... 15
Police Impact Fee Fund ............................................. 16
Recreation In Lieu Fee Fund .................................... 17
Benefit Self Insurance Fund ..................................... 18
Water Utility Fund ........................................................ 19
Water Resource and System
Development Impact Fee Fund ......................... 20
Stormwater Utility Fund ............................................ 21
Revenue Summary ............................................................ 22
Revenue Schedule by Fund ........................................... 23
Capital Expenditures by Fund ........................................ 30
Non-Departmental Expenditures ................................. 32
Operating Expenditures
Clerk ....................................................................................... 33
Community and Economic Development ............... 34
Council .................................................................................. 40
Court ...................................................................................... 41
Finance .................................................................................. 42
Human Resources ............................................................. 43
Information Technology ................................................ 44
Legal ....................................................................................... 45
Town Manager’s Office .................................................. 46
Parks and Recreation ....................................................... 49
Police ..................................................................................... 56
Public Works ....................................................................... 57
Water Utility ........................................................................ 64
Debt
Debt Service ......................................................................... 69
Transfers
Interfund Transfers ........................................................... 75
Capital Improvement Program (CIP)
Capital Improvement Program Overview ................. 76
10-Year Proposed CIP ...................................................... 79
CIP Project Descriptions .................................................. 87
i
April 24, 2026
I am proud to present the Town of Oro Valley balanced budget for Fiscal Year 2026/2027 (FY 26/27). This
budget reflects proactive fiscal management in response to evolving revenue and cost pressures. The Town
remains in a stable financial position, and this budget is designed to maintain that stability by sustaining
core services, advancing priority infrastructure, and taking deliberate steps to align spending with a more
conservative long-term outlook.
The total Town-wide budget appropriation is $130M, representing a $21M, or 14.4%, decrease from the FY
2025/26 adopted budget.
Factors Shaping the FY27 Budget
Several converging factors shaped the fiscal environment for FY27:
• The sales tax forecast has significantly tightened, reflecting a worsening revenue outlook and current
year collections tracking below budget expectations ($11.8M reduction over the next five years)
• Residential building permit activity has slowed significantly, limiting construction sales tax growth and
reducing the near-term revenue benefit of new development
• San Tan Valley incorporation dilutes the statewide population pool by approximately 1.6% annually,
reducing Oro Valley's share of state-shared revenues by an estimated $1.4M over the forecast period
• Years of cost inflation in construction and road materials have strained fund balances; Highway Fund
revenues (HURF) are insufficient to cover road maintenance needs without General Fund support
• The Town's fund balances are below those of comparable peer communities, increasing financial risk
exposure
Budget Management Actions
In response to the fiscal outlook, the following measures were taken in developing the FY27 budget:
• No new full-time staff positions added
• CIP prioritization process completed to identify essential projects; $11.6M in capital deferred or
eliminated
o Projects moved to contingent CIP list: $8.7M
o Projects deferred: $2.9M
• General Fund departments were directed to reduce O&M spending by 0.5% (estimated $2M impact
over five years)
• PSPRS excess contribution reduced by $1.5M from the current year budget
• The Town Council approved a reduction of the General Fund reserve policy from 30% to 25%, freeing
approximately $2.9M in previously reserved funds
ii
• The Town Council approved a Use Tax effective 7/1/2026 conservatively estimated to generate
$250,000 annually.
• The Town Council approved fee increases for Parks & Rec amenities which will improve cost recovery
in the General Fund and the Community Center Fund.
• Credit card processing fees: cost growth moderated
Personnel
Staffing
• No new full-time staff positions in FY27
Personnel Expenditures
• Health insurance premiums are projected to increase; the Town's self-insured health fund experienced
elevated claims this year, requiring fund balance replenishment
• PSPRS excess payment contributions reduced from the FY26 budget level
Operations & Maintenance
Departments were directed to reduce General Fund O&M where possible. The following cost increases are
largely unavoidable:
• Utilities: increases from rate adjustments and additional utility costs associated with the VTNP pond
and Police Headquarters building
• General liability and property insurance: approximately 10% increase
• Vistoso Trails Nature Preserve (VTNP) pond maintenance: ~$140,000
• Police Department Headquarters (PDHQ) building maintenance: $40,453
• Election costs: approximately $85,000 increase over prior elections
• Vehicle replacement reserve: 9% increase reflecting higher new vehicle costs
• Middle mile fiber project contribution: $200,000 payment
Capital
Reductions
• CIP prioritization resulted in significant project deferrals and eliminations
• Vehicle replacements reduced
• NWRRDS water infrastructure project nearing completion in FY27
New and Notable Capital Items
• Police Headquarters design and engineering: $1.5M over next two years
• Shannon Road Widening (RTA project, $25M total): Town contribution of $1M; RTA advancing
project schedule
• Federal Bridge Repair Award: $7.0M congressionally directed spending award for bridge repairs to
be used on bridge repairs over the next two years.
Transfers
• Transfers to the Capital Fund are reduced due to a lower operating surplus in the General Fund,
consistent with the tightened revenue outlook
iii
Conclusion
This Recommended Budget document is a direct reflection of the efforts and many hours contributed by
staff from all Town departments, as well as input from the Town Council and residents. There was
significant cross-departmental collaboration that occurred to work towards building a Recommended Budget
that strives to meet community and organizational needs, while also bearing in mind the resource
challenges we face. It is this exceptional collaboration and effort from our staff and the support of our
Executive Leadership Team that have assisted me in putting together a Recommended Budget that
hopefully reflects the desires and expectations of the Town Council and Oro Valley community. I especially
want to recognize my budget team for their extraordinary work and countless hours in preparing the budget:
Senior Budget Analyst Christopher Hutchison, Deputy Finance Director Wendy Gomez, Chief Financial
Officer David Gephart, Deputy Town Manager Chris Cornelison and Assistant to the Town Manager Karl
Shaddock.
Respectfully submitted,
Jeff Wilkins
Town Manager
Beginning
Fund Balance Revenue Transfers
In Personnel O&M Capital Debt
Service Contingency Total Budget
Appropriation
Transfers
Out
Ending Fund
Balance
General Fund 15,103,150 59,330,404 - 36,877,719 16,057,975 25,000 - 2,000,000 54,960,694 7,693,886 13,778,974
Special Revenue Funds
Community Center Fund 971,583 8,728,936 - 1,371,172 7,048,974 150,000 253,325 500,000 9,323,471 - 877,048
Highway Fund 2,155,833 4,783,936 3,000,000 1,396,779 1,246,991 4,906,990 - 200,000 7,750,760 66,120 2,322,888
Seizures & Forfeitures 399,360 40,000 - - 100,000 - - 339,360 439,360 - 339,360
Debt Service Fund 107,428 118,836 3,608,234 - 10,000 - 3,697,070 100,000 3,807,070 - 127,428
Capital Project Funds
Capital Fund 17,717,774 1,639,414 4,000,000 - - 6,923,439 - 2,000,000 8,923,439 3,180,465 13,253,284
Grants & Contributions 85,164 3,509,338 369,785 - 1,009,400 2,747,323 - 100,000 3,856,723 - 207,564
TWDIF Fund 3,826,696 292,255 - - 5,294 650,000 - 300,000 955,294 1,000,000 2,463,657
PAG/RTA Fund 343,894 145,000 1,000,000 - 80,000 1,000,000 - 120,000 1,200,000 - 408,894
Parks & Rec Impact Fee Fund 777,254 128,463 - - 2,471 300,000 - 185,000 487,471 - 603,246
Police Impact Fee Fund 227,265 40,203 - - 707 - - 50,000 50,707 34,696 232,065
Rec In Lieu Fee Fund 53,418 1,450 - - - - - 18,216 18,216 - 54,868
Internal Service Funds
Benefit Self Insurance Fund 2,920,260 4,543,643 - - 5,040,065 - - 500,000 5,540,065 - 2,423,838
Enterprise Funds
Water Utility Fund 6,134,257 23,107,500 - 4,110,816 11,957,720 2,270,000 3,827,269 500,000 22,665,805 2,402,852 4,673,099
WRSDIF Fund 7,542,015 965,019 2,400,000 - 184,232 6,000,000 931,822 500,000 7,616,054 - 3,790,980
Stormwater Utility Fund 1,607,531 2,043,000 - 981,560 456,445 755,500 - 250,000 2,443,505 - 1,457,026
59,972,881 109,417,397 14,378,019 44,738,046 43,200,274 25,728,252 8,709,486 7,662,576 130,038,634 14,378,019 47,014,220
Total Budget Appropriation
SOURCES USES
3 - The ending fund balance excludes contingency reserves.
Fund Balance Report
FY 2026/27 RECOMMENDED BUDGET
1 - Per Town budgetary and financial policy 1-1-4.0, the budget shall include contingency appropriation to provide for unanticipated increases in service delivery costs, emergencies, and needs
that may arise through the fiscal year. The contingency appropriation, except Seizures and Forfeitures Funds, may only be expended upon Town Council approval.
2 - The total budget appropriation excludes transfers out and does not include non-cash outlays for depreciation or amortization.
$130,038,634
1 2 3
2
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 1
Special Capital Internal
General Revenue Project Service Debt Service
Fund Funds Water Stormwater Funds Funds Fund Total
Beginning Fund Balance 15,103,150$ 3,526,776$ 13,676,272$ 1,607,531$ 23,031,465$ 2,920,260$ 107,428$ 59,972,881$
Revenues
Taxes 29,734,120$ -$ -$ -$ -$ -$ -$ 29,734,120$
Licenses and Permits 1,736,631 35,350 - - - - - 1,771,981
Fines 68,680 - - - - - - 68,680
Water Sales - - 19,435,000 - - - - 19,435,000
Charges for Services 3,246,684 8,704,286 3,427,500 1,758,800 - - - 17,137,270
State Shared Revenue 21,172,646 4,573,619 - - - - - 25,746,265
Intergovernmental 2,019,969 - - - - - - 2,019,969
Grants 621,851 - - 239,200 3,054,338 - 8,836 3,924,225
Seizures & Forfeitures - 20,000 - - - - - 20,000
Impact Fees - -815,019 - 337,921 - - 1,152,940
Interest Income 589,023 213,617 395,000 45,000 601,394 - 30,000 1,874,035
Miscellaneous 140,800 6,000 - - 1,762,470 4,543,643 80,000 6,532,913
Total Revenues 59,330,404 13,552,872 24,072,519 2,043,000 5,756,123 4,543,643 118,836 109,417,397
Transfers In - 3,000,000 2,400,000 - 5,369,785 - 3,608,234 14,378,019
Total Sources 59,330,404$ 16,552,872$ 26,472,519$ 2,043,000$ 11,125,908$ 4,543,643$ 3,727,070$ 123,795,416$
Expenditures
Town Council 215,477$ -$ -$ -$ -$ -$ -$ 215,477$
Town Manager's Office 1,854,089 - - - - - - 1,854,089
Clerk 459,015 - - - - - - 459,015
Human Resources 750,781 - - - - - - 750,781
Finance 887,403 - - - - - - 887,403
Information Technology 5,949,692 - - - - - - 5,949,692
Legal 1,000,829 - - - - - - 1,000,829
Town Court 1,126,232 - - - - - - 1,126,232
Non-Departmental 3,449,182 - - - 658,472 5,040,065 10,000 9,157,719
Capital Projects 366,056 5,106,990 8,270,000 705,500 3,023,611 - - 17,472,157
Comm. & Economic Dev. 4,224,338 - - - - - - 4,224,338
Parks and Recreation 5,287,360 8,420,146 - - 4,758,939 - - 18,466,445
Police 20,596,758 100,000 - - 2,605,739 - - 23,302,497
Public Works 6,793,482 2,593,770 - 1,488,005 1,671,873 - - 12,547,130
Water Utility - - 16,252,768 - - - - 16,252,768
Debt Service - 253,325 4,759,091 - - - 3,697,070 8,709,486
Contingency Reserve 2,000,000 1,039,360 1,000,000 250,000 2,773,216 500,000 100,000 7,662,576
Total Budget 54,960,694$ 17,513,591$ 30,281,859$ 2,443,505$ 15,491,850$ 5,540,065$ 3,807,070$ 130,038,634$
Transfers Out 7,693,886 66,120 2,402,852 - 4,215,161 - - 14,378,019
Total Uses 62,654,580 17,579,711 32,684,711 2,443,505 19,707,011 5,540,065 3,807,070 144,416,653
Sources Over/(Under) Uses (3,324,176) (1,026,839) (6,212,192) (400,505) (8,581,103) (996,422) (80,000) (20,621,237)
Ending Fund Balance 11,778,974$ 2,499,937$ 7,464,080$ 1,207,026$ 14,450,362$ 1,923,838$ 27,428$ 39,351,645$
Ending Fund Balance 13,778,974$ 3,539,297$ 8,464,080$ 1,457,026$ 17,223,578$ 2,423,838$ 127,428$ 47,014,220$
(1)Includes use of contingency reserves
(2) Does not include use of contingency reserves
Fund Balances
Enterprise Funds
(1)
(2)
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 2
FY 2024 FY 2025 FY 2026 FY 2027 %
Fund/Department Actual Actual Budget Budget to Budget
General Fund
Clerk 403,496 514,388 446,275 459,015 2.9%
Community & Economic Development 3,548,853 3,652,543 4,275,011 4,224,338 -1.2%
Council 184,698 216,145 216,163 215,477 -0.3%
Finance 825,859 856,458 885,087 887,403 0.3%
Non Departmental 4,635,814 3,757,675 3,098,504 3,449,182 11.3%
Human Resources 632,584 667,283 744,887 750,781 0.8%
Information Technology 5,043,169 5,127,616 6,021,164 5,949,692 -1.2%
Legal 1,071,067 1,139,202 1,193,587 1,000,829 -16.1%
Parks and Recreation 4,464,202 4,646,070 4,950,510 5,653,416 14.2%
Police 19,147,662 18,050,484 21,333,810 20,596,758 -3.5%
Public Works 6,535,148 6,133,031 6,551,005 6,793,482 3.7%
Town Court 985,129 1,019,285 1,181,757 1,126,232 -4.7%
Town Manager's Office 1,596,585 1,654,950 1,738,771 1,854,089 6.6%
Subtotal 49,074,267 47,435,129 52,636,531 52,960,694 0.6%
Special Revenue Funds
Community Center Fund 8,964,043 9,299,757 10,914,333 8,823,471 -19.2%
Highway User Revenue Fund 6,215,406 7,449,056 7,456,153 7,550,760 1.3%
Seizures & Forfeitures Funds 44,983 - 100,000 100,000 0.0%
Subtotal 15,224,433 16,748,814 18,470,486 16,474,231 -10.8%
Debt Service Funds
Municipal Debt Service Fund 4,037,583 4,029,508 4,023,070 3,707,070 -7.9%
Subtotal 4,037,583 4,029,508 4,023,070 3,707,070 -7.9%
Capital Project Funds
Capital Fund 18,579,704 5,955,281 6,417,864 6,923,439 7.9%
Grants & Contributions Fund 2,155,712 714,712 1,942,500 3,756,723 0.0%
Roadway Impact Fee Fund 1,157 766,446 751,232 655,294 -12.8%
PAG/RTA Fund 471,950 43,043 155,000 1,080,000 596.8%
Parks and Recreation Impact Fee Fund 600,540 959 252,001 302,471 20.0%
Police Impact Fee Fund 154 274 572 707 23.6%
Subtotal 21,809,218 7,480,715 9,519,169 12,718,634 33.6%
Enterprise Funds
Water Utility 14,311,300 15,728,526 21,756,516 22,165,805 1.9%
Water Resources Dev. Impact Fee 11,226,516 14,369,224 25,950,132 7,116,054 -72.6%
Stormwater Utility 1,334,818 1,216,706 2,153,013 2,193,505 1.9%
Subtotal 26,872,634 31,314,456 49,859,661 31,475,364 -36.9%
Internal Service Funds
Benefit Self Insurance 3,747,088 4,286,514 4,884,557 5,040,065 3.2%
Subtotal 3,747,088 4,286,514 4,884,557 5,040,065 3.2%
Total Expenditures - All Funds 120,765,221$ 111,295,135$ 139,393,474$ 122,376,058$ -12.2%
Note: Does not include depreciation, amortization, interfund transfers or contingency amounts
Expenditure Schedule by Fund
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 3
Fiscal Year 2026/27
General Fund
Fund Summary
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($) Budget (%)
Revenues and Other Sources
Local Taxes 28,497,187 27,837,339 29,734,120 1,236,933 4.3%
Licenses and Permits 2,116,123 2,317,479 1,736,631 (379,492) -17.9%
Federal Grants 375,000 581,368 475,000 100,000 26.7%
State Grants 91,851 146,851 146,851 55,000 59.9%
State Shared Revenues 19,863,884 19,809,058 21,172,646 1,308,762 6.6%
Intergovernmental 2,320,362 2,320,362 2,019,969 (300,393) -12.9%
Charges for Services 3,050,223 3,165,401 3,246,684 196,461 6.4%
Fines 68,680 56,000 68,680 - 0.0%
Interest Income 637,500 650,000 589,023 (48,477) -7.6%
Miscellaneous 210,300 218,100 140,800 (69,500) -33.0%
Total 57,231,110$ 57,101,958$ 59,330,404$ 2,099,294$ 3.7%
Expenditures and Other Uses
Personnel 37,473,980 36,553,840 36,877,719 (596,261) -1.6%
Operations & Maintenance 14,951,551 15,104,790 16,057,975 1,106,424 7.4%
Capital Outlay 211,000 211,000 25,000 (186,000) -88.2%
Transfer to Capital Fund 5,000,000 7,000,000 4,000,000 (1,000,000) -20.0%
Transfer to Grants Fund 127,750 127,750 123,200 (4,550) -3.6%
Transfer to Debt Service Fund 2,160,529 3,703,829 3,570,686 1,410,157 65.3%
Total 59,924,810$ 62,701,209$ 60,654,580$ 729,770$ 1.2%
Increase/(Decrease)(2,693,700)$ (5,599,251)$ (1,324,176)$
Beginning Fund Balance 15,103,150
Ending Fund Balance 13,778,974
Reserve (25% of Expenditures)13,240,174
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 4
Fiscal Year 2026/27
Community Center Fund
Fund Summary
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($) Budget (%)
Revenues and Other Sources
Local Sales Tax 3,972,920 593,099 - (3,972,920) -100.0%
Charges for Services 7,159,243 8,279,276 8,704,286 1,545,043 21.6%
Interest Income 22,500 50,000 21,150 (1,350) -6.0%
Miscellaneous 37,550 37,802 3,500 (34,050) -90.7%
Total 11,192,213$ 8,960,177$ 8,728,936$ (2,463,277)$ -22.0%
Expenditures and Other Uses
Personnel 1,303,239 1,300,447 1,371,172 67,933 5.2%
Operations & Maintenance 6,738,334 6,838,075 7,048,974 310,640 4.6%
Debt Service 229,060 290,304 253,325 24,265 10.6%
Capital Outlay 2,643,700 2,308,700 150,000 (2,493,700) -94.3%
Transfer to Debt Service Fund 1,716,268 172,968 - (1,716,268) -100.0%
Total 12,630,601$ 10,910,494$ 8,823,471$ (3,807,130)$ -30.1%
Increase/(Decrease)(1,438,388)$ (1,950,317)$ (94,535)$
Beginning Fund Balance 971,583$
Ending Fund Balance 877,048$
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 5
Fiscal Year 2026/27
Community Center Fund - CRC Operations
Fund Summary
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($) Budget (%)
Revenues and Other Sources
Local Sales Tax 3,972,920 593,099 - (3,972,920) -100.0%
Charges for Services 1,534,165 1,675,276 1,824,962 290,797 19.0%
Interest Income 22,500 50,000 21,150 (1,350) -6.0%
Miscellaneous 3,500 3,752 3,500 - 0.0%
Total 5,533,085$ 2,322,127$ 1,849,612$ (3,683,473)$ -66.6%
Expenditures and Other Uses
Personnel 1,303,239 1,300,447 1,371,172 67,933 5.2%
Operations & Maintenance 1,188,257 1,088,397 817,169 (371,088) -31.2%
Debt Service 50,500 50,500 18,900 (31,600) -62.6%
Capital Outlay 2,013,700 1,626,700 50,000 (1,963,700) -97.5%
Transfer to Debt Service Fund 1,716,268 172,968 - (1,716,268) -100.0%
Total 6,271,964$ 4,239,012$ 2,257,241$ (4,014,723)$ -64.0%
Increase/(Decrease)(738,879)$ (1,916,885)$ (407,629)$
Beginning Fund Balance 705,015$
Ending Fund Balance 297,386$
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 6
Fiscal Year 2026/27
Community Center Fund - Golf Operations
Fund Summary
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($) Budget (%)
Revenues and Other Sources
Charges for Services 5,625,078 6,604,000 6,879,324 1,254,246 22.3%
Miscellaneous 34,050 34,050 - (34,050) -100.0%
Total 5,659,128$ 6,638,050$ 6,879,324$ 1,220,196$ 21.6%
Expenditures and Other Uses
Operations & Maintenance 5,550,077 5,749,678 6,231,805 681,728 12.3%
Debt Service (Leases)178,560 239,804 234,425 55,865 31.3%
Capital Outlay 630,000 682,000 100,000 (530,000) -84.1%
Total 6,358,637$ 6,671,482$ 6,566,230$ 207,593$ 3.3%
Increase/(Decrease)(699,509)$ (33,432)$ 313,094$
Beginning Fund Balance 266,568$
Ending Fund Balance 579,662$
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 7
Fiscal Year 2026/27
Highway Fund
Fund Summary
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($) Budget (%)
Revenues and Other Sources
Licenses and Permits 30,000 40,000 35,350 5,350 17.8%
State Shared Revenues (HURF)4,456,367 4,290,852 4,573,619 117,252 2.6%
Interest Income 99,000 140,000 172,467 73,467 74.2%
Miscellaneous 2,500 50,489 2,500 - 0.0%
Transfer from Capital Fund 2,000,000 2,000,000 3,000,000 1,000,000 50.0%
Total 6,587,867$ 6,521,341$ 7,783,936$ 1,196,069$ 18.2%
Expenditures and Other Uses
Personnel 1,348,218 1,350,500 1,396,779 48,561 3.6%
Operations & Maintenance 1,317,935 1,283,443 1,246,991 (70,944) -5.4%
Capital Outlay 4,790,000 3,330,352 4,906,990 116,990 2.4%
Transfer to Grants Fund - - 66,120 66,120 0.0%
Total 7,456,153$ 5,964,295$ 7,616,880$ 160,727$ 2.2%
Increase/(Decrease)(868,286)$ 557,046$ 167,056$
Beginning Fund Balance 2,155,833$
Ending Fund Balance 2,322,888$
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 8
Fiscal Year 2026/27
Seizures & Forfeitures Fund
Fund Summary
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($) Budget (%)
Revenues and Other Sources
Seizures and Forfeitures 20,000 13,378 20,000 - 0.0%
Interest Income 20,000 19,000 20,000 - 0.0%
Total 40,000$ 32,378$ 40,000$ -$ 0.0%
Expenditures and Other Uses
Operations & Maintenance 100,000 35,000 100,000 - 0.0%
Total 100,000$ 35,000$ 100,000$ -$ 0.0%
Increase/(Decrease)(60,000)$ (2,622)$ (60,000)$
Beginning Fund Balance 399,360$
Ending Fund Balance 339,360$
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 9
Fiscal Year 2026/27
Municipal Debt Service Fund
Fund Summary
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($) Budget (%)
Revenues and Other Sources
Federal Subsidy 14,504 12,133 8,836 (5,668) -39.1%
Interest Income 32,000 25,000 30,000 (2,000) -6.3%
Miscellaneous 80,000 120,000 80,000 - 0.0%
Transfer from General Fund 3,703,829 3,703,829 3,570,686 (133,143) -3.6%
Transfer from Police Impact Fee Fund 38,765 38,765 34,696 (4,069) -10.5%
Transfer from Comm Center Fund 172,968 172,968 - (172,968) -100.0%
Transfer from Water Utility Fund 3,004 3,004 2,852 (152) -5.0%
Total 4,045,070$ 4,075,699$ 3,727,070$ (318,000)$ -7.9%
Expenditures and Other Uses
Operations & Maintenance 10,000 9,000 10,000 - 0.0%
Debt Service 4,013,070 4,013,071 3,697,070 (316,000) -7.9%
Total 4,023,070$ 4,022,071$ 3,707,070$ (316,000)$ -7.9%
Increase/(Decrease)22,000$ 53,628$ 20,000$
Beginning Fund Balance 107,428$
Ending Fund Balance 127,428$
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 10
Fiscal Year 2026/27
Capital Fund
Fund Summary
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($) Budget (%)
Revenues and Other Sources
Interest Income 470,000 550,000 442,944 (27,056) -5.8%
Miscellaneous 40,000 328,094 80,000 40,000 100.0%
Vehicle Reserves 1,028,926 1,028,926 1,116,470 87,544 8.5%
Transfer from General Fund 5,000,000 7,000,000 4,000,000 (1,000,000) -20.0%
Total 6,538,926$ 8,907,020$ 5,639,414$ (899,512)$ -13.8%
Expenditures and Other Uses
Operations & Maintenance - 30,000 - - 0.0%
Capital Outlay 6,417,864 5,772,912 6,923,439 505,575 7.9%
Transfer to Grants Fund 234,200 234,200 180,465 (53,735) -22.9%
Transfer to Highway Fund 2,000,000 2,000,000 3,000,000 1,000,000 50.0%
Total 8,652,064$ 8,037,112$ 10,103,904$ 1,451,840$ 16.8%
Increase/(Decrease)(2,113,138)$ 869,908$ (4,464,490)$
Beginning Fund Balance 17,717,774
Ending Fund Balance 13,253,284$
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 11
Fiscal Year 2026/27
Grants & Contributions Fund
Fund Summary
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($) Budget (%)
Revenues and Other Sources
Federal Grants 1,019,550 292,318 2,583,938 1,564,388 153.4%
State Grants 103,400 102,154 340,400 237,000 229.2%
Interest Income 6,000 18,384 19,000 13,000 216.7%
Miscellaneous 561,000 - 566,000 5,000 0.9%
Transfer from General Fund 127,750 127,750 123,200 (4,550) -3.6%
Transfer from Capital Fund 234,200 59,109 180,465 (53,735) -22.9%
Transfer from Highway Fund - - 66,120 66,120 0.0%
Total 2,051,900$ 599,715$ 3,879,123$ 1,827,223$ 89.1%
Expenditures and Other Uses
Operations & Maintenance 771,500 238,896 1,009,400 237,900 30.8%
Capital Outlay 1,171,000 336,442 2,747,323 1,576,323 134.6%
Total 1,942,500$ 575,338$ 3,756,723$ 1,814,223$ 93.4%
Increase/(Decrease)109,400$ 24,377$ 122,400$
Beginning Fund Balance 85,164$
Ending Fund Balance 207,564$
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 12
Fiscal Year 2026/27
Townwide Roadway Development Impact Fee Fund
Fund Summary
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($) Budget (%)
Revenues and Other Sources
Impact Fees 488,915 625,952 192,255 (296,660) -60.7%
Interest Income 100,000 110,000 100,000 - 0.0%
Total 588,915$ 735,952$ 292,255$ (296,660)$ -50.4%
Expenditures and Other Uses
Operations & Maintenance 4,287 4,287 5,294 1,007 23.5%
Capital Outlay 746,945 - 650,000 (96,945) -13.0%
Transfer To PAG/RTA Fund - - 1,000,000
Total 751,232$ 4,287$ 1,655,294$ 904,062$ 120.3%
Increase/(Decrease)(162,317)$ 731,665$ (1,363,039)$
Beginning Fund Balance 3,826,696$
Ending Fund Balance 2,463,657$
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 13
Fiscal Year 2026/27
PAG/RTA Fund
Fund Summary
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($) Budget (%)
Revenues and Other Sources
State Grants 30,000 20,538 130,000 100,000 333.3%
Interest Income 14,000 13,720 15,000 1,000 7.1%
Transfer from Roadway Imp Fee Fund - 1,000,000 1,000,000 0.0%
Total 44,000$ 34,258$ 1,145,000$ 1,101,000$ 2502.3%
Expenditures and Other Uses
Operations & Maintenance 80,000 67,290 80,000 - 0.0%
Capital Outlay 75,000 70,000 1,000,000 925,000 1233.3%
Total 155,000$ 137,290$ 1,080,000$ 925,000$ 596.8%
Increase/(Decrease)(111,000) (103,032) 65,000
Beginning Fund Balance 343,894$
Ending Fund Balance 408,894$
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 14
Fiscal Year 2026/27
Parks and Recreation Impact Fee Fund
Fund Summary
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($) Budget (%)
Revenues and Other Sources
Impact Fees 364,897 382,217 109,463 (255,434) -70.0%
Interest Income 18,000 16,000 19,000 1,000 5.6%
Total 382,897$ 398,217$ 128,463$ (254,434)$ -66.4%
Expenditures and Other Uses
Operations & Maintenance 2,001 2,001 2,471 470 23.5%
Capital Outlay 250,000 - 300,000 50,000 20.0%
Total 252,001$ 2,001$ 302,471$ 50,470$ 20.0%
Increase/(Decrease)130,896$ 396,216$ (174,008)$
Beginning Fund Balance 777,254$
Ending Fund Balance 603,246$
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 15
Fiscal Year 2026/27
Police Impact Fee Fund
Fund Summary
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($) Budget (%)
Revenues and Other Sources
Impact Fees 104,596 140,087 36,203 (68,393) -65.4%
Interest Income 3,000 3,600 4,000 1,000 33.3%
Total 107,596$ 143,687$ 40,203$ (67,393)$ -62.6%
Expenditures and Other Uses
Operations & Maintenance 572 572 707 135 23.6%
Transfer to Debt Service Fund 38,765 38,765 34,696 (4,069) -10.5%
Total 39,337$ 39,337$ 35,403$ (3,934)$ -10.0%
Increase/(Decrease)68,259$ 104,350$ 4,800$
Beginning Fund Balance 227,265$
Ending Fund Balance 232,065$
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 16
Fiscal Year 2026/27
Recreation In Lieu Fee Fund
Fund Summary
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($) Budget (%)
Revenues and Other Sources
Interest Income 800 1,400 1,450 650 81.3%
Total 800$ 1,400$ 1,450$ 650$ 81.3%
Expenditures and Other Uses
Capital Outlay - - - - 0.0%
Total -$ -$ -$ -$ 0.0%
Increase/(Decrease)800$ 1,400$ 1,450$
Beginning Fund Balance 53,418
Ending Fund Balance 54,868$
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 17
Fiscal Year 2026/27
Benefit Self Insurance Fund
Fund Summary
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($) Budget (%)
Revenues and Other Sources
Self Ins Premiums - Employer 2,905,585 2,877,616 3,300,000 394,415 13.6%
Self Ins Premiums - Employee 536,783 461,586 619,223 82,440 15.4%
COBRA Premiums 45,000 48,554 45,000 - 0.0%
Retiree Premiums 36,251 18,745 19,120 (17,131) -47.3%
Interest Income 120,000 158,000 119,000 (1,000) -0.8%
Miscellaneous 435,757 375,572 441,300 5,543 1.3%
Total 4,079,376$ 3,940,073$ 4,543,643$ 464,267$ 11.4%
Expenditures and Other Uses
Outside Professional Services 1,099,067 1,099,067 1,104,610 5,543 0.5%
Wellness Program 169,000 169,000 169,000 - 0.0%
Claim Settlement 3,616,490 3,747,069 3,766,455 149,965 4.1%
Total 4,884,557$ 5,015,136$ 5,040,065$ 155,508$ 3.2%
Increase/(Decrease)(805,181) (1,075,063) (496,422)$
Beginning Fund Balance 3,995,323 2,920,260$
Ending Fund Balance 2,423,838$
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 18
Fiscal Year 2026/27
Water Utility Fund
Fund Summary
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($) Budget (%)
Revenues and Other Sources
Charges for Services 3,457,000 3,428,800 3,427,500 (29,500) -0.9%
Federal Grants - 841,639 - - 0.0%
Interest Income 100,000 400,000 245,000 145,000 145.0%
Miscellaneous 20,000 22,388 - (20,000) -100.0%
Water Sales 18,511,000 18,752,246 19,435,000 924,000 5.0%
Loan Proceeds - 4,807,200 - - 0.0%
Total 22,088,000$ 28,252,273$ 23,107,500$ 1,019,500$ 4.6%
Expenses and Other Uses
Personnel 3,985,725 3,807,621 4,110,816 125,091 3.1%
Operations & Maintenance 11,552,175 11,367,287 11,957,720 405,545 3.5%
Capital Outlay 2,327,639 2,227,639 2,270,000 (57,639) -2.5%
Debt Service 3,890,977 3,890,977 3,827,269 (63,708) -1.6%
Transfer to Debt Service Fund 3,004 3,004 2,852 (152) -5.0%
Transfer to Impact Fee Fund 9,880,000 9,880,000 2,400,000 (7,480,000) -75.7%
Cash Total * 31,639,520$ 31,176,528$ 24,568,657$ (7,070,863)$ -22.3%
Increase/(Decrease) (9,551,520)$ (2,924,255)$ (1,461,157)$
Beginning Fund Balance 6,134,257
Ending Fund Balance 4,673,099$
* Total expenses less non-cash outlays for depreciation & amortization
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 19
Fiscal Year 2026/27
Water Resource and System Development Impact Fee Fund
Fund Summary
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($) Budget (%)
Revenues and Other Sources
Federal Grants - 1,262,459 - - 0.0%
Impact Fees 930,078 853,919 815,019 (115,059) -12.4%
Interest Income 175,000 180,000 150,000 (25,000) -14.3%
Loan Proceeds - 7,210,800 - - 0.0%
Transfer From Water Utility Fund 9,880,000 9,880,000 2,400,000 (7,480,000) -75.7%
Total 10,985,078$ 19,387,178$ 3,365,019$ (7,620,059)$ -69.4%
Expenditures and Other Uses
Operations & Maintenance 181,144 181,144 184,232 3,088 1.7%
Debt Service 804,494 804,494 931,822 127,328 15.8%
Capital Outlay 24,964,494 18,964,494 6,000,000 (18,964,494) -76.0%
Total 25,950,132$ 19,950,132$ 7,116,054$ (18,834,078)$ -72.6%
Increase/(Decrease)(14,965,054)$ (562,954)$ (3,751,035)$
Beginning Fund Balance 7,542,015$
Ending Fund Balance 3,790,980$
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 20
Fiscal Year 2026/27
Stormwater Utility Fund
Fund Summary
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($) Budget (%)
Revenues and Other Sources
Federal Grants 239,200 210,991 239,200 - 0.0%
Charges for Services 1,527,000 1,543,429 1,758,800 231,800 15.2%
Interest Income 20,000 48,000 45,000 25,000 125.0%
Total 1,786,200$ 1,802,420$ 2,043,000$ 256,800$ 14.4%
Expenses and Other Uses
Personnel 990,258 964,105 981,560 (8,698) -0.9%
Operations & Maintenance 444,755 385,661 456,445 11,690 2.6%
Capital Outlay 718,000 81,855 755,500 37,500 5.2%
Cash Total *2,153,013$ 1,431,621$ 2,193,505$ 40,492$ 1.9%
Increase/(Decrease)(366,813)$ 370,798$ (150,505)$
Beginning Fund Balance 1,607,531
Ending Fund Balance 1,457,026$
* Total expenses less non-cash outlays for depreciation & amortization
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 21
Revenue for FY 2026/27 is forecasted to total $109,412,586. Compared to the FY 2025/26 budget, revenue is projected
to increase by approximately $2.8 million, or 2.6%. While local sales tax revenues are projected to decline due to reduced
construction and development activity, that decrease is more than offset by federal grant funding of approximately $1.8
million for bridge deck repairs, higher charges for services including golf, Parks and Recreation user fees, and
stormwater fees, and growth in state shared revenues as detailed below.
Forecasting revenues with precision is difficult given ongoing uncertainty in the broader economy, as a result projections
are intentionally conservative. The national economy continues to face headwinds from tariffs, shifting federal policies,
and slower growth, though a recession is not anticipated. Arizona's economy is recovering from a sluggish 2025, but
growth is expected to remain modest over the next two years. On the positive side, household incomes are projected to
grow at a more typical pace, supporting steady consumer spending. However, homebuilding activity slowed considerably
in 2025 and is expected to stay soft, tempering revenues tied to new development and construction. Overall, the Town
expects modest revenue growth in FY 2026/27, with a cautious economic outlook.
While local sales tax revenues are budgeted to decrease by approximately $2.8 million, or 0.5%, compared to the FY
2025/26 budget due to declining construction and development activity. However, they are projected to increase by $1.3
million, or 4.6%, over the FY 2025/26 year-end estimate. Total local sales tax revenues for FY 2026/27 remain below
FY 2024/25 actual collections, reflecting the significant decline in construction-related sales tax activity over the past
year.
Overall, state shared revenues are anticipated to increase approximately $1.4 million or 5.9% compared to the prior
fiscal year. State shared income tax revenues are expected to increase 6.8%, state sales tax revenues 7.9%, highway
user fund revenues 2.6%, and vehicle license tax revenues 5.1%. The increase in state shared income tax revenues is
coming off the heels of the implementation of the 2.5% individual flat tax and two years of compounding decreases.
Revenue estimates vary by source and are based on each revenue stream’s sensitivity to economic conditions, current
performance trends, underlying economic drivers, and information from State reports and other sources. Refer to the
Revenue Schedule by Fund for detailed changes in revenue from year to year.
Revenue Summary
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 22
Revenue and Other Financing Sources Schedule by Fund
Actual Actual Adopted Forecast Adopted %
Major Revenue Accounts FY 2024 FY 2025 FY 2026 FY 2026 FY 2027 to Budget
General Fund
Local Sales Tax:
Local Sales Tax 26,779,181 26,003,603 27,844,136 27,184,288 29,111,307 4.6%
Cable Franchise Fees 715,334 679,027 653,051 653,051 622,813 -4.6%
Total Local Sales Tax 27,494,515 26,682,630 28,497,187 27,837,339 29,734,120 4.3%
License & Permit Fees:
Business Licenses & Permits 206,918 224,808 255,000 229,304 233,890 -8.3%
Residential Building Permits 1,326,813 1,053,074 908,066 1,346,042 1,011,547 11.4%
Commercial Building Permits 398,687 318,821 750,077 452,101 199,688 -73.4%
Sign Permits 17,389 15,606 13,260 16,000 16,160 21.9%
Special Inspection Fees 11,290 8,460 6,120 6,120 6,181 1.0%
Grading Permit Fees 29,275 71,583 76,500 136,500 137,865 80.2%
Road Permits - -- 1,412 - 0.0%
Floodplain Use Permits 34,410 30,710 35,700 20,000 20,200 -43.4%
Fire Permits & Fees 97,721 75,160 71,400 110,000 111,100 55.6%
Total License & Permit Fees 2,122,503 1,798,222 2,116,123 2,317,479 1,736,631 -17.9%
Federal Grants:
DEA Overtime Reimbursement 5,765 14,710 42,000 20,000 42,000 0.0%
Miscellaneous Federal Grants 36,208 23,039 30,000 30,000 30,000 0.0%
HIDTA - 17,713 - - - 0.0%
HIDTA-DEA 97,611 77,244 - 106,011 100,000 0.0%
GOHS 68,822 108,261 88,000 83,619 88,000 0.0%
Homeland Security 88,387 143,136 215,000 341,738 215,000 0.0%
Total Federal Grants 296,793 384,104 375,000 581,368 475,000 26.7%
State Grants:
School Resource Officers 66,566 71,973 71,851 71,851 71,851 0.0%
Misc State Grants 84,912 6,947 20,000 75,000 75,000 275.0%
Total State Grants 151,478 78,920 91,851 146,851 146,851 59.9%
State/County Shared:
State Income 12,779,482 10,277,099 9,522,662 9,522,662 10,171,039 6.8%
State Sales 7,281,900 7,417,134 7,376,599 7,376,599 7,956,183 7.9%
Vehicle License Tax 2,438,980 2,621,504 2,629,797 2,629,797 2,762,624 5.1%
Smart & Safe 285,138 287,173 334,826 280,000 282,800 -15.5%
Total State/County Shared 22,785,500 20,602,911 19,863,884 19,809,059 21,172,646 6.6%
Other Intergovernmental:
School Resource Officers 90,301 251,029 409,502 409,502 90,000 -78.0%
RTA Reimbursements 1,930,657 1,939,978 1,904,860 1,904,860 1,923,909 1.0%
PCLD Reimbursements 6,183 10,877 6,000 6,000 6,060 1.0%
Total Other Intergovernmental 2,027,141 2,201,884 2,320,362 2,320,362 2,019,969 -12.9%
Charges for Services:
Court Costs 115,352 114,040 115,000 115,000 115,000 0.0%
Zoning & Subdivision Fees 60,141 74,520 55,000 75,000 75,000 36.4%
User Fees - Swimming Pool 519,719 515,843 509,500 561,706 567,213 11.3%
User Fees - Fields & Courts 172,559 246,382 208,000 259,325 270,000 29.8%
User Fees - Miscellaneous 235,844 250,526 261,250 253,500 275,750 5.6%
General Government Other 500 1,100 1,200 900 1,000 -16.7%
Police Report Copying 7,801 6,005 6,000 6,500 6,500 8.3%
Police Other 8,204 7,362 6,000 7,000 7,000 16.7%
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 23
Revenue and Other Financing Sources Schedule by Fund
Actual Actual Adopted Forecast Adopted %
Major Revenue Accounts FY 2024 FY 2025 FY 2026 FY 2026 FY 2027 to Budget
Engineer Plan Review Fees 38,428 30,213 35,000 45,000 30,000 -14.3%
Farebox (230) (355) - (116) - 0.0%
Administrative Services 1,653,935 1,701,759 1,641,347 1,641,347 1,697,783 3.4%
Real Property Rental Income 123,081 120,680 166,116 155,779 156,278 -5.9%
Maps 70 160 110 110 110 0.0%
Impound Processing 16,650 15,150 13,000 13,000 13,000 0.0%
Pawn Slips 300 429 300 900 500 66.7%
Police Fingerprinting 10,115 10,290 11,000 9,000 10,000 -9.1%
Concession Sales 253 279 200 150 150 -25.0%
Public Record Request Fees 1,328 1,652 1,200 1,300 1,400 16.7%
Court Security Fee 20,000 30,250 20,000 20,000 20,000 0.0%
Public Art In Lieu Fees - - - - 0.0%
Merchandise Sales 9 23 - - - 0.0%
Total Charges for Services 2,984,059 3,126,307 3,050,223 3,165,401 3,246,684 6.4%
Fines:
Fines 61,640 67,674 68,680 56,000 68,680 0.0%
Total Fines 61,640 67,674 68,680 56,000 68,680 0.0%
Interest Income:
Interest - Investments 716,939 857,345 637,500 650,000 589,023 -7.6%
Total Interest Income 716,939 857,345 637,500 650,000 589,023 -7.6%
Miscellaneous:
Donations 5,122 21,981 - 500 500 0.0%
Miscellaneous 315,421 473,927 20,000 20,300 20,000 0.0%
Special Events 39,178 12,361 10,000 1,500 10,000 0.0%
Insurance Recoveries 16,106 24,797 - 12,835 10,000 0.0%
In-Lieu Income 218,611 211,512 180,000 165,000 100,000 -44.4%
Sale of Assets 219 25 300 17,965 300 0.0%
Total Miscellaneous 594,658 744,604 210,300 218,100 140,800 -33.0%
TOTAL GENERAL FUND 59,235,226 56,544,600 57,231,110 57,101,958 59,330,404 3.7%
Highway Fund
License & Permit Fees:
Road Permits 25,869 40,389 30,000 40,000 35,350 17.8%
Total License & Permit Fees 25,869 40,389 30,000 40,000 35,350 17.8%
State/County Shared:
Highway User 4,221,036 4,262,644 4,456,367 4,290,852 4,573,619 2.6%
Total State/County Shared 4,221,036 4,262,644 4,456,367 4,290,852 4,573,619 2.6%
Interest Income:
Interest - Investments 185,013 123,210 99,000 140,000 172,467 74.2%
Total Interest Income 185,013 123,210 99,000 140,000 172,467 74.2%
Miscellaneous:
Miscellaneous 766 1,358 1,000 500 1,000 0.0%
Insurance Recoveries 13,949 7,467 1,500 36,000 1,500 0.0%
Sale of Assets - - - 13,989 - 0.0%
Total Miscellaneous 14,715 8,825 2,500 50,489 2,500 0.0%
TOTAL HIGHWAY FUND 4,446,633 4,435,067 4,587,867 4,521,341 4,783,936 4.3%
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 24
Revenue and Other Financing Sources Schedule by Fund
Actual Actual Adopted Forecast Adopted %
Major Revenue Accounts FY 2024 FY 2025 FY 2026 FY 2026 FY 2027 to Budget
Grants & Contributions Fund
Federal Grants:
GOHS 12,791 6,120 25,000 25,000 10,000 -60.0%
Miscellaneous Federal Grants 2,096,836 535,187 994,550 267,318 2,573,938 158.8%
Homeland Security 20,000 - - - - 0.0%
Total Federal Grants 2,129,627 541,306 1,019,550 292,318 2,583,938 153.4%
State Grants:
Miscellaneous State Grants 6,050 168,389 3,400 3,400 240,400 6970.6%
Opioid Settlement 33,631 85,856 100,000 98,754 100,000 0.0%
Total State Grants 39,681 254,245 103,400 102,154 340,400 229.2%
Interest Income:
Interest - Investments 24,514 5,862 6,000 18,384 19,000 216.7%
Total Interest Income 24,514 5,862 6,000 18,384 19,000 216.7%
Miscellaneous:
Donations - 31,934 61,000 - 66,000 8.2%
Miscellaneous - 500,000 - 500,000 0.0%
Total Miscellaneous - 31,934 561,000 - 566,000 0.9%
TOTAL GRANTS & CONTRIBUTIONS FUND 2,193,822 833,348 1,689,950 412,856 3,509,338 107.7%
Seizures & Forfeitures Funds
Interest Income:
Interest - Investments 15,969 19,778 20,000 19,000 20,000 0.0%
Total Interest Income 15,969 19,778 20,000 19,000 20,000 0.0%
Miscellaneous:
Forfeitures 129,883 24,067 20,000 13,378 20,000 0.0%
Total Miscellaneous 129,883 24,067 20,000 13,378 20,000 0.0%
TOTAL SEIZURES & FORFEITURES FUNDS 145,852 43,845 40,000 32,378 40,000 0.0%
Community Center Fund
Local Sales Tax:
Local Sales Tax 3,803,267 3,904,926 3,972,920 593,099 - -100.0%
Total Local Sales Tax 3,803,267 3,904,926 3,972,920 593,099 - -100.0%
Charges for Services:
User Fees - Daily Drop-In 83,829 (71,709) 75,625 66,349 75,625 0.0%
User Fees - Member Dues 904,710 996,505 990,420 1,105,674 1,238,355 25.0%
User Fees - Recreation Programs 377,302 418,778 382,500 394,964 402,863 5.3%
Rental Income 84,693 93,065 85,498 108,139 107,969 26.3%
Concession Sales 145 137 122 150 150 23.0%
Management Contract Revenues 6,037,684 6,418,398 5,625,078 6,604,000 6,879,324 22.3%
Total Charges for Services 7,488,363 7,855,174 7,159,243 8,279,276 8,704,286 21.6%
Interest Income:
Interest - Investments 23,640 32,991 22,500 50,000 21,150 -6.0%
Total Interest Income 23,640 32,991 22,500 50,000 21,150 -6.0%
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 25
Revenue and Other Financing Sources Schedule by Fund
Actual Actual Adopted Forecast Adopted %
Major Revenue Accounts FY 2024 FY 2025 FY 2026 FY 2026 FY 2027 to Budget
Miscellaneous:
Miscellaneous 159,050 159,050 34,050 34,050 - -100.0%
Special Events 3,500 - 3,500 3,500 3,500 0.0%
Sale of Assets 1,518 118 - 252 - 0.0%
Insurance Recoveries - 2,194 - -- 0.0%
Total Miscellaneous 164,068 161,362 37,550 37,802 3,500 -90.7%
TOTAL COMMUNITY CENTER FUND 11,479,338 11,954,453 11,192,213 8,960,177 8,728,936 -22.0%
Municipal Debt Service Fund
Interest Income:
Interest - Investments 66,529 31,329 32,000 25,000 30,000 -6.3%
Total Interest Income 66,529 31,329 32,000 25,000 30,000 -6.3%
Federal Grants:
Miscellaneous Grants 25,649 8,580 14,504 12,133 8,836 -39.1%
Total Federal Grants 25,649 8,580 14,504 12,133 8,836 -39.1%
Miscellaneous:
Miscellaneous 94,980 67,019 80,000 120,000 80,000 0.0%
Total Miscellaneous 94,980 67,019 80,000 120,000 80,000 0.0%
TOTAL MUNICIPAL DEBT SERVICE FUND 187,158 106,928 126,504 157,133 118,836 -6.1%
Townwide Roadway Development Impact Fee Fund
Impact Fees:
Residential Impact Fees 285,520 1,096,780 456,020 462,660 159,360 -65.1%
Commercial Impact Fees 19,226 85,912 32,895 163,292 32,895 0.0%
Total Impact Fees 304,746 1,182,692 488,915 625,952 192,255 -60.7%
Interest Income:
Interest - Investments 69,997 114,173 100,000 110,000 100,000 0.0%
Total Interest Income 69,997 114,173 100,000 110,000 100,000 0.0%
TOTAL ROADWAY IMPACT FEE FUND 374,743 1,296,865 588,915 735,952 292,255 -50.4%
PAG/RTA Fund
State Grants:
PAG Reimbursements - - 30,000 - - -100.0%
RTA Reimbursements 22,042 - - 20,538 130,000 0.0%
Total State Grants 22,042 - 30,000 20,538 130,000 333.3%
Interest Income:
Interest - Investments 24,616 15,722 14,000 13,720 15,000 7.1%
Total Interest Income 24,616 15,722 14,000 13,720 15,000 7.1%
Charges for Services:
Real Property Rental Income 35,156 35,156 - - - 0.0%
Total Charges for Services 35,156 35,156 - - - 0.0%
TOTAL PAG/RTA FUND 81,814 50,878 44,000 34,258 145,000 229.5%
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 26
Revenue and Other Financing Sources Schedule by Fund
Actual Actual Adopted Forecast Adopted %
Major Revenue Accounts FY 2024 FY 2025 FY 2026 FY 2026 FY 2027 to Budget
Parks & Recreation Development Impact Fee Fund
Impact Fees:
Residential Impact Fees 88,536 166,722 356,618 273,352 101,184 -71.6%
Commercial Impact Fees 13,918 15,584 8,279 108,865 8,279 0.0%
Total Impact Fees 102,454 182,306 364,897 382,217 109,463 -70.0%
Interest Income:
Interest - Investments 12,558 12,647 18,000 16,000 19,000 5.6%
Total Interest Income 12,558 12,647 18,000 16,000 19,000 5.6%
TOTAL PARKS IMPACT FEE FUND 115,012 194,953 382,897 398,217 128,463 -66.4%
Police Development Impact Fee Fund
Impact Fees:
Residential Impact Fees 49,242 65,889 95,561 96,693 27,168 -71.6%
Commercial Impact Fees 5,111 23,134 9,035 43,394 9,035 0.0%
Total Impact Fees 54,353 89,023 104,596 140,087 36,203 -65.4%
Interest Income:
Interest - Investments 989 3,188 3,000 3,600 4,000 33.3%
Total Interest Income 989 3,188 3,000 3,600 4,000 33.3%
TOTAL POLICE IMPACT FEE FUND 55,342 92,212 107,596 143,687 40,203 -62.6%
Capital Fund
State Grants:
RTA Reimbursements 420,000 - - - - 0.0%
Total State Grants 420,000 - - - - 0.0%
Other Intergovernmental:
RTA Reimbursements 44,000 164,417 - - - 0.0%
Total Other Intergovernmental 44,000 164,417 - - - 0.0%
Interest Income:
Interest - Investments 716,598 646,662 470,000 550,000 438,133 -6.8%
Total Interest Income 716,598 646,662 470,000 550,000 438,133 -6.8%
Miscellaneous:
Vehicle Reserves 892,540 933,490 1,028,926 1,028,926 1,116,470 8.5%
Insurance Recoveries 131,977 113,408 20,000 47,913 50,000 150.0%
Sale of Assets 71,733 51,162 20,000 76,486 30,000 50.0%
Miscellaneous 35 613 - 75,000 - 0.0%
Total Miscellaneous 1,096,285 1,498,672 1,068,926 1,357,020 1,196,470 11.9%
TOTAL CAPITAL FUND 2,276,883 3,309,751 1,538,926 1,907,020 1,634,603 6.2%
Benefit Self Insurance Fund
Interest Income:
Interest - Investments 99,180 155,749 120,000 158,000 119,000 -0.8%
Total Interest Income 99,180 155,749 120,000 158,000 119,000 -0.8%
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 27
Revenue and Other Financing Sources Schedule by Fund
Actual Actual Adopted Forecast Adopted %
Major Revenue Accounts FY 2024 FY 2025 FY 2026 FY 2026 FY 2027 to Budget
Miscellaneous:
Self Insurance Premiums - Employer 3,083,844 3,290,732 2,905,585 2,877,616 3,300,000 13.6%
Self Insurance Premiums - Employee 589,062 605,863 536,783 461,586 619,223 15.4%
COBRA Premiums 50,919 35,377 45,000 48,554 45,000 0.0%
Retiree Premiums 51,043 35,195 36,251 18,745 19,120 -47.3%
Miscellaneous 397,338 403,568 435,757 375,572 441,300 1.3%
Total Miscellaneous 4,172,206 4,370,735 3,959,376 3,782,073 4,424,643 11.8%
TOTAL BENEFIT SELF INSURANCE FUND 4,271,386 4,526,484 4,079,376 3,940,073 4,543,643 11.4%
Water Utility Fund
Water Sales:
Residential Water Sales 11,658,979 13,003,882 13,600,000 13,511,126 14,200,000 4.4%
Commercial Water Sales 1,101,693 1,205,948 1,200,000 1,258,823 1,250,000 4.2%
Irrigation Water Sales 1,908,499 2,225,044 2,130,000 2,225,289 2,270,000 6.6%
Turf Related Water Sales 1,420,013 1,554,734 1,420,000 1,549,071 1,530,000 7.7%
Construction Water Sales 163,718 223,202 161,000 207,937 185,000 14.9%
Total Water Sales 16,252,902 18,212,810 18,511,000 18,752,246 19,435,000 5.0%
State Grants:
Miscellaneous State Grants - 358,361 - 841,639 - 0.0%
Total State Grants - 358,361 - 841,639 - 0.0%
Charges for Services:
Engineer Plan Review Fees 5,688 678 3,000 9,500 5,000 66.7%
Construction Inspection Fees 4,665 6,698 4,000 16,000 10,000 150.0%
Misc Service Revenue 59,502 22,759 10,000 15,000 10,000 0.0%
Backflow-Install Permit Fee 4,365 2,405 3,000 1,300 2,500 -16.7%
Sewer Fees 396,914 399,815 400,000 400,000 400,000 0.0%
Late Fees 107,338 110,793 120,000 90,000 90,000 -25.0%
NSF Fees 6,979 9,076 9,000 9,000 9,000 0.0%
Rain Sensors 8 -- - - 0.0%
Meter Income 73,691 35,769 45,000 30,000 45,000 0.0%
New Service Establish Fees 66,990 69,510 65,000 65,000 60,000 -7.7%
Reconnect Fees 51,865 44,230 50,000 35,000 38,000 -24.0%
Groundwater Preservation Fee 2,391,910 2,658,134 2,600,000 2,600,000 2,600,000 0.0%
Backflow Fees - 29,793 30,000 41,000 40,000 33.3%
Other 118,560 116,821 118,000 117,000 118,000 0.0%
Total Charges for Services 3,288,475 3,506,480 3,457,000 3,428,800 3,427,500 -0.9%
Interest Income:
Interest - Investments 373,269 339,482 100,000 400,000 245,000 145.0%
Total Interest Income 373,269 339,482 100,000 400,000 245,000 145.0%
Miscellaneous:
Miscellaneous 20,270 46,857 20,000 20,000 - -100.0%
Insurance Recoveries 5,881 5,921 - 2,388 - 0.0%
Sale of Assets 12,600 11,379 - -- 0.0%
Total Miscellaneous 38,751 64,157 20,000 22,388 - -100.0%
Other Financing Sources:
Loan Proceeds - - - 4,807,200 - 0.0%
Bond Proceeds - 2,433,820 - - - 0.0%
Total Other Financing Sources - 2,433,820 - 4,807,200 - 0.0%
TOTAL WATER UTILITY FUND 19,953,397 24,915,110 22,088,000 28,252,273 23,107,500 4.6%
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 28
Revenue and Other Financing Sources Schedule by Fund
Actual Actual Adopted Forecast Adopted %
Major Revenue Accounts FY 2024 FY 2025 FY 2026 FY 2026 FY 2027 to Budget
Water Resources Development Impact Fee Fund
Impact Fees:
Residential Impact Fees 1,629,123 788,426 728,118 708,957 708,957 -2.6%
Commercial Impact Fees 738,282 56,628 201,960 144,962 106,062 -47.5%
Total Impact Fees 2,367,405 845,054 930,078 853,919 815,019 -12.4%
Federal Grants
Misc Federal Grants - 537,541 - 1,262,459 - 0.0%
Total Federal Grants - 537,541 - 1,262,459 - 0.0%
Interest Income:
Interest - Investments 451,850 276,613 175,000 180,000 150,000 -14.3%
Total Interest Income 451,850 276,613 175,000 180,000 150,000 -14.3%
Other Financing Sources:
Loan Proceeds - - 7,210,800 - 0.0%
Bond Proceeds - 3,650,730 - - - 0.0%
Total Other Financing Sources - 3,650,730 - 7,210,800 - 0.0%
TOTAL WRSDIF FUND 2,819,255 5,309,938 1,105,078 9,507,178 965,019 -12.7%
Stormwater Utility Fund
Federal Grants:
Miscellaneous Federal Grants - 210,991 239,200 210,991 239,200 0.0%
Total Federal Grants - 210,991 239,200 210,991 239,200 0.0%
Charges for Services:
Late Fees 1,256 1,063 1,500 1,500 1,500 0.0%
Stormwater Utility Fee 1,520,962 1,530,638 1,525,500 1,541,929 1,757,300 15.2%
Total Charges for Services 1,522,218 1,531,701 1,527,000 1,543,429 1,758,800 15.2%
Interest Income:
Interest - Investments 29,206 46,598 20,000 48,000 45,000 125.0%
Total Interest Income 29,206 46,598 20,000 48,000 45,000 125.0%
Miscellaneous:
Miscellaneous 21 - - - - 0.0%
Total Miscellaneous 21 - - - - 0.0%
TOTAL STORMWATER UTILITY FUND 1,551,445 1,789,290 1,786,200 1,802,420 2,043,000 14.4%
Recreation In Lieu Fee Fund
Charges for Services:
Recreation In Lieu Fees - 32,678 - - - 0.0%
Total Charges for Services - 32,678 - - - 0.0%
Interest Income:
Interest - Investments 841 1,164 800 1,400 1,450 81.3%
Total Interest Income 841 1,164 800 1,400 1,450 81.3%
TOTAL REC IN LIEU FEE FUND 841 33,842 800 1,400 1,450 81.3%
TOTAL REVENUE - ALL FUNDS 109,188,147 115,437,565 106,589,432 117,908,321 109,412,586$ 2.6%
Note: Does not include interfund transfers or carry-forward balances
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 29
Fund
FY26/27
Recommended
Budget
Operating/
CIP Department
GENERAL FUND
Equipment Major Rehabilitation 25,000 Operating Public Works
TOTAL GENERAL FUND 25,000$
COMMUNITY CENTER FUND
Pavement Preservation - CRC 50,000 CIP
Pusch Ridge Golf - Hole #1 Rip-Rap erosion control and beautification 100,000 CIP
TOTAL COMMUNITY CENTER FUND 150,000$
HIGHWAY FUND
La Cañada Drive Phase III (Naranja Dr. to Tangerine Rd.)678,000 CIP
Pavement Preservation - Roadways 3,200,000 Operating/CIP Public Works
Public Works Operations Laydown Yard (Electricity)208,019 CIP
Streets & Drainage Operations Asphalt Laydown Machine 145,000 CIP
Traffic Signal at Tangerine Rd / Mussette Dr 675,971 CIP
TOTAL HIGHWAY FUND 4,906,990$
CAPITAL FUND
680 Fuel Station Renovation 449,550 CIP
Annual Sidewalk Program 100,000 CIP
Capacity for unplanned vehicle accidents/losses 50,000 Operating Non-Dept.
James D. Kriegh Park - North Parking Lot Improvements 375,000 CIP
OVAC Pump Room Upgrades - Phase Two 90,000 CIP
Parks Maintenance Mower Replacement 115,000 CIP
Pavement Preservation - Non Roadways 140,000 CIP
PDHQ Development and Construction 2,196,339 CIP
Server OS Refresh 60,000 CIP
Vehicle Replacement Program 1,313,611 CIP
Vistoso Trails Nature Preserve Pond 2,033,939 CIP
TOTAL CAPITAL FUND 6,923,439$
GRANTS & CONTRIBUTIONS
La Cañada Bridge Deck Repair (Northbound)1,160,000 CIP
Rancho Vistoso Bridge Deck Repair over Honeybee Wash - Eastbound 685,000 CIP
Transit Vehicles 902,323 Operating/CIP Public Works
TOTAL GRANTS & CONTRIBUTIONS 2,747,323$
TWDIF FUND
Rancho Vistoso & Woodburne Intersection*650,000 CIP
TOTAL TWDIF FUND 650,000$
PAG/RTA FUND
(RTA) Shannon Road Widening - Lambert Lane to Tangerine Road 1,000,000 CIP
TOTAL PAG/RTA FUND 1,000,000$
PARKS AND RECREATION IMPACT FEE FUND FUND
Naranja Park Shade 300,000 CIP
TOTAL PARKS AND RECREATION IMPACT FEE FUND 300,000$
Capital Expenditures by Fund
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 30
Fund
FY26/27
Recommended
Budget
Operating/
CIP Department
Capital Expenditures by Fund
WATER UTILITY FUND
Booster Station Rehabilitation 250,000 CIP
Control Systems - SCADA 500,000 CIP
El Con/El Camino Diestro main and valve replacement 100,000 CIP
Reservoir Rehabilitation 400,000 CIP
Vehicle Replacement Program 70,000 Operating/CIP Water Utility
Water Meters- New Connections 700,000 CIP
Well Rehabilitation 250,000 CIP
TOTAL WATER UTILITY FUND 2,270,000$
WRSDIF FUND
NWRRDS (Independent) Booster Station at Partnered Reservoir 3,000,000 CIP
NWRRDS (Partnered) Pipeline Construction - Transmission Main*3,000,000 CIP
TOTAL WRSDIF FUND 6,000,000$
STORMWATER UTILITY FUND
General Infrastructure Maintenance 50,000 Operating Public Works
Catalina Ridge Channel Modification: Maintenance Access Ramp 387,500 CIP
Sierra Wash at Glover Rd Infrastructure Repair & Rehabilitation 318,000 CIP
TOTAL STORMWATER UTILITY FUND 755,500$
TOTAL TOWN CAPITAL OUTLAY 25,728,252$
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 31
General Fund
Capital Project
Funds
Benefit Self
Insurance
Fund
Municipal
Debt Service
Fund Total
OPERATIONS & MAINTENANCE
Admin building office supplies 25,000 - - - 25,000
ADOR tax modernization fee 38,742 - - - 38,742
Amazon Prime membership 1,500 - - - 1,500
Annexation expenses 10,000 - - - 10,000
Arbitrage rebate and trustee services - - - 10,000 10,000
Backflow testing; flag cleaning and repair 1,000 - - - 1,000
Benefit self insurance costs - - 5,040,065 - 5,040,065
Boards and commissions training 5,000 - - - 5,000
Budget Capacity for unforeseen grants/donations - 500,000 - - 500,000
County services - custody of prisoners 175,000 - - - 175,000
Court Security Services 20,000 - - - 20,000
Elections - General Election 11/3/26 69,200 - - - 69,200
Elections - OV Path Forward publicity pamphlet 21,000 - - - 21,000
Elections - Primary Election 7/21/26 69,200 - - - 69,200
General liability and property insurance 1,141,924 - - - 1,141,924
Health Clinic costs 164,120 - - - 164,120
Impact fee study - 8,472 8,472
Innovest annual billing/retirement plan consulting 20,000 - - - 20,000
Municipal firefighters cancer reimbursement 123,000 - - - 123,000
Natural gas/electricity - admin blg. & health clinic 55,000 - - - 55,000
Non-enterprise fund vehicle reserves 1,116,470 - - - 1,116,470
Opioid settlement funded eligible expenditures - 100,000 - - 100,000
Payment to Pima County for Middle Mile project per IGA 200,000 - - - 200,000
Pima County Recorder 316 - - - 316
PPEP Crew services 25,000 - - - 25,000
Regional Partnerships - Chamber 60,000 - - - 60,000
Regional Partnerships - Children's Museum OV 40,000 - - - 40,000
SESAC and ASCAP music licenses 2,000 - - - 2,000
Shredding services (General Admin and Police)4,000 - - - 4,000
Special Events - promotional items and sponsorships 5,000 - - - 5,000
Sponsorship of Annual Business Summit with Chamber 3,000 - - - 3,000
UA Center for Innovation 30,000 - - - 30,000
Water and Sewage - Admin Bldg. & Health Clinic 8,710 - - - 8,710
Bank Fees/Charges 15,000 - - - 15,000
Total Operations & Maintenance 3,449,182$ 608,472$ 5,040,065$ 10,000$ 9,107,719$
CAPITAL OUTLAY
Capacity for unplanned vehicle accidents/losses - 50,000 - - 50,000
Total Capital Outlay -$ 50,000$ -$ -$ 50,000$
DEBT SERVICE
Principal Payments
Aquatic Center Bond Principal - General Fund - - - 215,000 215,000
CREBS Principal - - - 160,000 160,000
Series 2016 Energy Eff. Bond Community Center Fund - - - 153,000 153,000
Series 2017 (2007) Refunding - General Fund - - - 136,962 136,962
Series 2018 (total principal payment)- - - 136,750 136,750
Series 2021 P&R principal - - - 790,000 790,000
Series 2021 Pension Obligation Bonds principal - - - 975,000 975,000
Interest Payments
Aquatic Center Bond Interest - General Fund - - - 12,147 12,147
CREBS Interest - - - 16,066 16,066
Series 2016 Energy Efficiency Project Bonds - - - 19,635 19,635
Series 2017 Refunding - Interest - General Fund - - - 1,664 1,664
Series 2018 (25%)- - - 34,696 34,696
Series 2021 P&R - - - 754,800 754,800
Series 2021 Pension Obligation Bonds - - - 291,350 291,350
Total Debt Service -$ -$ -$ 3,697,070$ 3,697,070$
Total Non-Departmental Expenditures 3,449,182$ 658,472$ 5,040,065$ 3,707,070$ 12,854,789$
Non-Departmental Expenditures
2026/2027
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 32
Department Budgets | Clerk
CLERK
Significant Changes
The increase in Personnel is due to a market adjustment for eligible employees and increases in health
insurance premiums.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE) 4.48 4.48 4.48 -
% of Towns FTEs 1.06%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 514,388 446,275 459,015 12,740
Total Expenditures 514,388 446,275 459,015 12,740
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 435,033 422,325 435,715 13,390
Operations & Maintenance 79,355 23,950 23,300 (650)
Total Expenditures 514,388 446,275 459,015 12,740
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 33
Department Budgets | Community & Economic Development (CED)
COMMUNITY & ECONOMIC DEVELOPMENT (CED)
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Division Actual Adopted Proposed Change
Administration 362,161 392,748 405,055 12,307
Permitting 1,139,513 1,209,710 1,209,842 132
Planning 919,355 1,065,188 996,108 (69,080)
Inspection and Compliance 730,690 779,829 782,322 2,493
Economic Development 500,823 827,536 831,011 3,475
Total 3,652,543 4,275,011 4,224,338 (50,673)
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE)29.26 29.26 28.30 (0.95)
% of Towns FTEs 6.71%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 3,652,543 4,275,011 4,224,338 (50,673)
Total Expenditures 3,652,543 4,275,011 4,224,338 (50,673)
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 2,996,666 3,190,481 3,212,692 22,211
Operations & Maintenance 655,876 1,084,530 1,011,646 (72,884)
Total Expenditures 3,652,543 4,275,011 4,224,338 (50,673)
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 34
Department Budgets | Community & Economic Development (CED)
CED - Administration
Significant Changes
The increase in Personnel is due to a FY 2025/26 market adjustment for eligible employees and increases in
health insurance premiums.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE)3.00 3.00 3.00 -
% of Towns FTEs 0.71%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 362,161 392,748 405,055 12,307
Total Expenditures 362,161 392,748 405,055 12,307
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 352,545 382,048 394,355 12,307
Operations & Maintenance 9,616 10,700 10,700 -
Total Expenditures 362,161 392,748 405,055 12,307
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 35
Department Budgets | Community & Economic Development (CED)
CED - Permitting
Significant Changes
The increase in Personnel is due to a market adjustment for eligible employees and increase in health
insurance premiums, partially offset by the elimination of a part-time office specialist position (0.48 FTE).
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE)9.48 9.48 9.00 (0.48)
% of Towns FTEs 2.13%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 1,139,513 1,209,710 1,209,842 132
Total Expenditures 1,139,513 1,209,710 1,209,842 132
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 1,072,218 1,077,505 1,088,342 10,837
Operations & Maintenance 67,295 132,205 121,500 (10,705)
Total Expenditures 1,139,513 1,209,710 1,209,842 132
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 36
Department Budgets | Community & Economic Development (CED)
CED - Planning
Significant Changes
The decrease in Personnel is due to the elimination of a temporary part-time office specialist position (0.48
FTE) partially offset by a market adjustment for eligible employees and increases in health insurance
premiums.
The decrease in Operations & Maintenance is due to lower spending on one-time General Plan-related items,
including contracted staffing, external consulting, postage, marketing, and supplies.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE)8.78 8.78 8.30 (0.48)
% of Towns FTEs 1.97%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 919,355 1,065,188 996,108 (69,080)
Total Expenditures 919,355 1,065,188 996,108 (69,080)
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 745,702 887,448 885,916 (1,532)
Operations & Maintenance 173,653 177,740 110,192 (67,548)
Total Expenditures 919,355 1,065,188 996,108 (69,080)
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 37
Department Budgets | Community & Economic Development (CED)
CED – Inspection & Compliance
Significant Changes
The increase in Personnel is from a market adjustment for eligible employees and higher health insurance
premiums, partially offset by staff turnover.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE) 7.00 7.00 7.00 -
% of Towns FTEs 1.66%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 730,690 779,829 782,322 2,493
Total Expenditures 730,690 779,829 782,322 2,493
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Budget Budget Change
Personnel 720,104 733,535 735,259 1,724
Operations & Maintenance 10,586 46,294 47,063 769
Total Expenditures 730,690 779,829 782,322 2,493
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 38
Department Budgets | Community & Economic Development (CED)
CED – Economic Development
Significant Changes
The decrease in Personnel is due to staff turnover partially offset by a market adjustment for eligible
employees and increases in health insurance premiums.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE) 1.00 1.00 1.00 -
% of Towns FTEs 0.24%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 500,823 827,536 831,011 3,475
Total Expenditures 500,823 827,536 831,011 3,475
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 106,097 109,945 108,820 (1,125)
Operations & Maintenance 394,726 717,591 722,191 4,600
Total Expenditures 500,823 827,536 831,011 3,475
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 39
COUNCIL
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE)7.00 7.00 7.00 -
% of Towns FTEs 1.66%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 216,145 216,163 215,477 (686)
Total Expenditures 216,145 216,163 215,477 (686)
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 79,443 78,863 78,863 -
Operations & Maintenance 136,702 137,300 136,614 (686)
Total Expenditures 216,145 216,163 215,477 (686)
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 40
Department Budgets | Town Court
TOWN COURT
Significant Changes
The increase of 0.48 FTE is from the additional of a part-time Judicial Assistant position
The increase in Personnel costs during is due to the addition of a part-time Judicial Assistant position and by
market adjustments and increases in health insurance premiums.
The decrease in Operations & Maintenance is primarily due to the elimination of a contracted Financial
Administrator position.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE)9.48 9.45 9.93 0.48
% of Towns FTEs 2.36%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 1,019,285 1,181,757 1,126,232 (55,525)
Total Expenditures 1,019,285 1,181,757 1,126,232 (55,525)
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 766,722 904,283 956,032 51,749
Operations & Maintenance 252,563 277,474 170,200 (107,274)
Total Expenditures 1,019,285 1,181,757 1,126,232 (55,525)
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 41
Department Budgets | Finance
FINANCE
Significant Changes
FTEs decreased by 0.20 due to the transfer of a Senior Office Specialist position (split 80/20 between Finance
position to the Town Managers Office.
The net decrease in Personnel is due to the transfer of the Senior Office Specialist to the Town Manager’s
Office and turnover in the Accounting Specialist position, partially offset by a market adjustment for eligible
employees and increases in health insurance premiums.
The O&M increase is due to fee increases for the town-wide annual financial audit.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE) 6.20 6.20 6.00 (0.20)
% of Towns FTEs 1.42%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 856,458 885,087 887,403 2,316
Total Expenditures 856,458 885,087 887,403 2,316
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 800,405 823,917 815,333 (8,584)
Operations & Maintenance 56,053 61,170 72,070 10,900
Total Expenditures 856,458 885,087 887,403 2,316
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 42
Department Budgets | Human Resources
HUMAN RESOURCES
Significant Changes
The increase in Personnel is due to a FY 2025/26 market adjustment for eligible employees and increases in
health insurance premiums, offset partially by staff turnover.
O&M decreased primarily due to reduced travel and training.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE) 5.00 5.00 5.00 -
% of Towns FTEs 1.19%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 667,283 744,887 750,781 5,894
Total Expenditures 667,283 744,887 750,781 5,894
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 555,166 605,586 615,505 9,919
Operations & Maintenance 112,117 139,301 135,276 (4,025)
Total Expenditures 667,283 744,887 750,781 5,894
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 43
Department Budgets | Information Technology
INFORMATION TECHNOLOGY
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE) 15.80 15.80 15.00 (0.80)
% of Towns FTEs 3.56%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 5,127,616 6,021,164 5,949,692 (71,472)
Total Expenditures 5,127,616 6,021,164 5,949,692 (71,472)
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 1,820,361 1,918,814 1,903,674 (15,140)
Operations & Maintenance 3,307,256 4,102,350 4,046,018 (56,332)
Total Expenditures 5,127,616 6,021,164 5,949,692 (71,472)
Significant Changes
FTEs decreased by 0.80 due to transferring out a Senior Office Specialist position (80/20 split between IT and
Finance) to the Town Manager’s Office.
The net decrease in Personnel is due to transferring out the Senior Office Specialist position to the Town
Manager’s Office and staff turnover, partially offset by a market adjustment for eligible employees and increases
in health insurance premiums.
The net decrease in Operations and Maintenance reflects the elimination of unneeded software subscriptions
and the reallocation of Transit-related telecommunications costs to Public Works – Transit.
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 44
Department Budgets | Legal
LEGAL
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE) 7.00 7.00 7.00 -
% of Towns FTEs 1.66%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 1,139,202 1,193,587 1,000,829 (192,758)
Total Expenditures 1,139,202 1,193,587 1,000,829 (192,758)
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 1,005,529 1,022,212 833,764 (188,448)
Operations & Maintenance 133,673 171,375 167,065 (4,310)
Total Expenditures 1,139,202 1,193,587 1,000,829 (192,758)
Significant Changes
The net decrease in Personnel reflects the elimination of funding for the Chief Civil Deputy Attorney position
and turnover in the Legal Services Director (Town Attorney) position.
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 45
Department Budgets | Town Manager’s Office
TOWN MANAGER’S OFFICE
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Division Actual Adopted Proposed Change
Administration 1,139,415 1,191,912 1,295,620 103,708
Communications 515,534 546,859 558,469 11,610
Total 1,654,950 1,738,771 1,854,089 115,318
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE) 12.38 12.38 13.38 1.00
% of Towns FTEs 3.17%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 1,654,950 1,738,771 1,854,089 115,318
Total Expenditures 1,654,950 1,738,771 1,854,089 115,318
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 1,529,819 1,577,929 1,695,201 117,272
Operations & Maintenance 125,131 160,842 158,888 (1,954)
Total Expenditures 1,654,950 1,738,771 1,854,089 115,318
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 46
Department Budgets | Town Manager’s Office
TOWN MANAGER’S OFFICE - ADMINISTRATION
Significant Changes
The increase in Personnel reflects: (1) the transfer of a Senior Office Specialist position previously split
between Finance and IT (80/20) to a centralized role supporting all administrative departments, improving
efficiency; (2) market adjustments for eligible employees; and (3) increases in health insurance premiums.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE) 8.38 8.38 9.38 1.00
% of Towns FTEs 2.22%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 1,139,415 1,191,912 1,295,620 103,708
Total Expenditures 1,139,415 1,191,912 1,295,620 103,708
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 1,099,098 1,137,341 1,241,690 104,349
Operations & Maintenance 40,317 54,571 53,930 (641)
Total Expenditures 1,139,415 1,191,912 1,295,620 103,708
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 47
Department Budgets | Town Manager’s Office
TOWN MANAGER’S OFFICE - COMMUNICATIONS
Significant Changes
The increase in personnel costs is due to a market adjustment for eligible employees and increases in health
insurance premiums.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE) 4.00 4.00 4.00 -
% of Towns FTEs 0.95%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 515,534 546,859 558,469 11,610
Total Expenditures 515,534 546,859 558,469 11,610
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 430,721 440,588 453,511 12,923
Operations & Maintenance 84,814 106,271 104,958 (1,313)
Total Expenditures 515,534 546,859 558,469 11,610
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 48
Department Budgets | Parks and Recreation
PARKS and RECREATION
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Division Actual Adopted Proposed Change
Administration 484,802 478,279 482,329 4,050
Parks Management 1,893,930 1,942,161 2,235,763 293,602
Recreation and Culture 926,124 806,898 822,231 15,333
Aquatics 1,552,390 1,723,172 1,747,037 23,865
Community Center - CRC 2,376,453 2,541,996 2,207,241 (334,755)
Community Center - Golf 5,599,144 5,863,637 6,466,230 602,593
Total 12,832,842 13,356,143 13,960,831 604,688
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE)69.06 69.06 69.00 (0.06)
% of Towns FTEs 16.30%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 4,646,070 4,950,510 5,287,360 336,850
Community Center Fund 7,975,597 8,405,633 8,673,471 267,838
Total Expenditures 12,832,842 13,356,143 13,960,831 604,688
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 3,990,919 4,240,694 4,392,073 151,379
Operations & Maintenance 8,441,301 8,838,389 9,315,433 477,044
Capital Outlay 205,425 48,000 - (48,000)
Debt Service 195,197 229,060 253,325 24,265
Total Expenditures 12,832,842 13,356,143 13,960,831 604,688
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 49
Department Budgets | Parks and Recreation
PARKS and RECREATION – ADMINISTRATION
Significant Changes
The net increase in Personnel reflects market adjustments for eligible employees and increases in health
insurance premiums.
The net decrease in Operations & Maintenance reflects the completion of the Trails Master Plan in FY 2026.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE) 3.00 3.00 3.00 -
% of Towns FTEs 0.71%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 484,802 478,279 482,329 4,050
Total Expenditures 484,802 478,279 482,329 4,050
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 402,470 408,384 422,679 14,295
Operations & Maintenance 82,331 69,895 59,650 (10,245)
Total Expenditures 484,802 478,279 482,329 4,050
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 50
Department Budgets | Parks and Recreation
PARKS and RECREATION – PARKS MANAGEMENT
Significant Changes
The net increase in Personnel reflects market adjustments for eligible employees and increases in health
insurance premiums.
The net increase in Operations & Maintenance reflects higher utility costs (water, sewer, natural gas, and
electricity) and projected maintenance costs for the Vistoso Trails Nature Preserve pond restoration.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE) 13.92 13.92 13.90 (0.02)
% of Towns FTEs 3.28%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 1,893,930 1,942,161 2,235,763 293,602
Total Expenditures 1,893,930 1,942,161 2,235,763 293,602
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 858,428 883,861 910,367 26,506
Operations & Maintenance 1,035,502 1,010,300 1,325,396 315,096
Capital Outlay -48,000 - (48,000)
Total Expenditures 1,893,930 1,942,161 2,235,763 293,602
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 51
Department Budgets | Parks and Recreation
PARKS and RECREATION – RECREATION & CULTURE
Significant Changes
The increase in Personnel reflects market adjustments for eligible employees, increases in health insurance
premiums, and benefit election changes.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE) 6.67 6.67 6.67 -
% of Towns FTEs 1.57%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 714,949 806,898 822,231 15,333
Grants & Contributions Fund 211,175 - - -
Total Expenditures 926,124 806,898 822,231 15,333
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 393,641 445,498 466,831 21,333
Operations & Maintenance 327,058 361,400 355,400 (6,000)
Capital 205,425 - - -
Total Expenditures 926,124 806,898 822,231 15,333
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 52
Department Budgets | Parks and Recreation
PARKS and RECREATION – AQUATICS
Significant Changes
The increase in Personnel reflects market adjustments for eligible employees, increases in health insurance
premiums, and benefit election changes.
The net increase in Operations & Maintenance reflects higher water and sewer costs.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE) 22.44 22.44 22.43 (0.02)
% of Towns FTEs 5.28%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 1,552,390 1,723,172 1,747,037 23,865
Total Expenditures 1,552,390 1,723,172 1,747,037 23,865
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 1,011,766 1,199,712 1,221,024 21,312
Operations & Maintenance 540,623 523,460 526,013 2,553
Total Expenditures 1,552,390 1,723,172 1,747,037 23,865
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 53
Department Budgets | Parks and Recreation
PARKS and RECREATION – CRC OPERATIONS
Significant Changes
The net increase in Personnel reflects market adjustments for eligible employees, and increases in health
insurance premiums.
The net decrease in Operations & Maintenance reflects the separation and reallocation of golf-related
facilities maintenance costs to the Golf budget in FY 2027, as part of an effort to more accurately reflect the
operating costs of each facility, as well as the transfer of Vistoso Trails Nature Preserve maintenance costs
to the Parks Management budget in the General Fund.
Debt service covers capital leases for fitness equipment.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE) 23.03 23.03 23.00 (0.03)
% of Towns FTEs 5.43%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
Community Center Fund 2,376,453 2,541,996 2,207,241 (334,755)
Total Expenditures 2,376,453 2,541,996 2,207,241 (334,755)
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures and Other Financing Uses by Type Actual Adopted Proposed Change
Personnel 1,324,613 1,303,239 1,371,172 67,933
Operations & Maintenance 1,039,089 1,188,257 817,169 (371,088)
Debt Service 12,751 50,500 18,900 (31,600)
Total Expenditures 2,376,453 2,541,996 2,207,241 (334,755)
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 54
Department Budgets | Parks and Recreation
PARKS and RECREATION – GOLF
Significant Changes
The net increase in Operations & Maintenance reflects higher costs from the golf contractor due to rising
labor, utility, and insurance expenses (projected to be offset by revenue growth), as well as the reallocation
of golf-related facilities maintenance costs from the Community Recreation Center budget, as part of an
effort to more accurately reflect the operating costs of each facility.
The increase in Debt Service reflects higher capital lease payments for golf carts.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE)- ---
% of Towns FTEs 0.00%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
Community Center Fund 5,599,144 5,863,637 6,466,230 602,593
Total Expenditures 5,599,144 5,863,637 6,466,230 602,593
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures and Other Financing Uses by Type Actual Adopted Proposed Change
Personnel - ---
Operations & Maintenance 5,416,698 5,685,077 6,231,805 546,728
Debt Service 182,446 178,560 234,425 55,865
Total Expenditures 5,599,144 5,863,637 6,466,230 602,593
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 55
Department Budgets | Police
POLICE
Significant Changes
FTE’s increased by 0.47 due to addition of a part-rime office specialist to cover the front reception.
The net decrease in Personnel reflects a reduction of approximately $1.6M in Town contributions to PSPRS
following the plan reaching 100% funded status, partially offset by market pay and step adjustments per the
current MOU agreement.
The net increase in Operations & Maintenance reflects a new grant-funded software acquisition and grant-
funded drones.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE)139.73 140.48 140.95 0.47
% of Towns FTEs 33.29%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 18,050,484 21,333,810 20,596,758 (737,052)
Grants & Contributions Fund 479,499 271,500 509,400 237,900
Seizures & Forfeitures Fund - 100,000 100,000 -
Total Expenditures 18,529,983 21,705,310 21,206,158 (499,152)
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 16,824,397 19,876,990 19,147,298 (729,692)
Operations & Maintenance 1,674,916 1,828,320 2,058,860 230,540
Capital Outlay 30,670 ---
Total Expenditures 18,529,983 21,705,310 21,206,158 (499,152)
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 56
Department Budgets | Public Works
PUBLIC WORKS
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Division Actual Adopted Proposed Change
Administration 1,741,496 1,673,245 1,686,523 13,278
Fleet & Facilities Maintenance 2,356,650 2,673,694 2,752,090 78,396
Transportation Engineering 5,020,407 5,007,653 5,032,270 24,617
Street & Drainage Maintenance 772,017 828,500 811,500 (17,000)
Stormwater 1,216,706 1,485,013 1,488,005 2,992
Transit 2,034,885 3,375,066 3,257,192 (117,874)
Total 13,142,160 15,043,171 15,027,580 (15,591)
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE)79.11 76.48 76.48 -
% of Towns FTEs 18.08%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 6,133,031 6,551,005 6,793,482 242,477
Grants & Contributions Fund - 1,171,000 902,323 (268,677)
Highway Fund 5,749,381 5,756,153 5,763,770 7,617
PAG/RTA Fund 43,043 80,000 80,000 -
Stormwater Utility Fund 1,216,706 1,485,013 1,488,005 2,992
Total 13,142,160 15,043,171 15,027,580 (15,591)
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 6,270,806 6,453,601 6,541,080 87,479
Operations & Maintenance 3,694,265 4,253,570 4,309,177 55,607
Capital Outlay 3,177,089 4,336,000 4,177,323 (158,677)
Total Expenditures 13,142,160 15,043,171 15,027,580 (15,591)
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 57
Department Budgets | Public Works
PUBLIC WORKS - ADMINISTRATION
Significant Changes
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE) 15.75 13.75 13.75 -
% of Towns FTEs 3.25%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 1,741,496 1,673,245 1,686,523 13,278
Total Expenditures 1,741,496 1,673,245 1,686,523 13,278
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 1,657,921 1,557,495 1,467,187 (90,308)
Operations & Maintenance 83,575 115,750 219,336 103,586
Total Expenditures 1,741,496 1,673,245 1,686,523 13,278
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 58
Department Budgets | Public Works
PUBLIC WORKS – FLEET & FACILITY MANAGEMENT
Significant Changes
The increase in Personnel is due to a market adjustment for eligible employees as well as staff turnover and
increases in employee benefit elections.
Capital Outlay consists of funding for rehabilitation of equipment.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE)10.00 10.00 10.00 -
% of Towns FTEs 2.36%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 2,356,650 2,673,694 2,752,090 78,396
Total Expenditures 2,356,650 2,673,694 2,752,090 78,396
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 744,809 821,144 884,487 63,343
Operations & Maintenance 1,611,841 1,827,550 1,842,603 15,053
Capital Outlay - 25,000 25,000 -
Total Expenditures 2,356,650 2,673,694 2,752,090 78,396
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 59
Department Budgets | Public Works
PUBLIC WORKS – TRANSPORTATION ENGINEERING
Significant Changes
The increase in Personnel is primarily due to a market adjustment for eligible employees.
The net decrease in Operations & Maintenance reflects the bridge maintenance program, which carried
higher initial costs in its first year (FY 2025/26) and is expected to require less funding in subsequent years.
Capital Outlay consists of the annual pavement preservation program.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE) 12.00 12.00 12.00 -
% of Towns FTEs 2.83%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
Highway Fund 4,977,364 4,927,653 4,952,270 24,617
PAG/RTA Fund 43,043 80,000 80,000 -
Total Expenditures 5,020,407 5,007,653 5,032,270 24,617
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 1,320,865 1,348,218 1,396,779 48,561
Operations & Maintenance 530,901 569,435 435,491 (133,944)
Capital Outlay 3,168,641 3,090,000 3,200,000 110,000
Total Expenditures 5,020,407 5,007,653 5,032,270 24,617
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 60
Department Budgets | Public Works
PUBLIC WORKS – STREET & DRAINAGE MAINTENANCE
Significant Changes
The net decrease in Operations & Maintenance reflects an adjustment to the street maintenance budget to
align with historical utilization.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE)- - - -
% of Towns FTEs 0.00%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
Highway Fund 772,017 828,500 811,500 (17,000)
Total Expenditures 772,017 828,500 811,500 (17,000)
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Operations & Maintenance 763,569 828,500 811,500 (17,000)
Capital Outlay 8,448 - - -
Total Expenditures 772,017 828,500 811,500 (17,000)
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 61
Department Budgets | Public Works
PUBLIC WORKS – STORMWATER UTILITY
Significant Changes
The net decrease in Personnel reflects lower employee benefit elections, partially offset by market
adjustments for eligible employees.
Capital outlay relates to general drainage infrastructure maintenance.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE) 9.73 9.73 9.73 -
% of Towns FTEs 2.30%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
Stormwater Fund 1,216,706 1,485,013 1,488,005 2,992
Total Expenditures 1,216,706 1,485,013 1,488,005 2,992
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 917,745 990,258 981,560 (8,698)
Operations & Maintenance 298,961 444,755 456,445 11,690
Capital Outlay - 50,000 50,000 -
Total Expenditures 1,216,706 1,485,013 1,488,005 2,992
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 62
Department Budgets | Public Works
PUBLIC WORKS – TRANSIT SERVICES
Significant Changes
The net increase in Personnel reflects market adjustments for eligible employees and increases in health
insurance premiums.
The net increase in Operations & Maintenance reflects transit fleet repair and maintenance costs, allocated
telecommunications costs from IT, and insurance costs for transit vehicles previously budgeted under general
administration.
The Capital Outlay is for transit bus replacements, 80% funded by ADOT grants, and includes carryover from
FY 2025/26 for delayed bus deliveries.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE)31.63 31.00 31.00 -
% of Towns FTEs 7.33%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
General Fund 2,034,885 2,204,066 2,354,869 150,803
Grants & Contributions Fund - 1,171,000 902,323 (268,677)
Total Expenditures 2,034,885 3,375,066 3,257,192 (117,874)
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 1,629,467 1,736,486 1,811,067 74,581
Operations & Maintenance 405,418 467,580 543,802 76,222
Capital Outlay - 1,171,000 902,323 (268,677)
Total Expenditures 2,034,885 3,375,066 3,257,192 (117,874)
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 63
Department Budgets | Water Utility
WATER UTILITY
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Division Actual Adopted Proposed Change
Administration 2,940,839 2,991,103 2,996,070 4,967
Engineering and Planning 6,245,344 6,696,602 7,035,717 339,115
Operations 6,166,533 6,250,195 6,806,749 556,554
WRSDIF 229,835 181,144 184,232 3,088
Total 15,582,551 16,119,044 17,022,768 903,724
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE) 40.48 40.48 40.48 -
% of Towns FTEs 9.56%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
Water Utility fund 15,352,716 15,937,900 16,838,536 900,636
WRSDIF Fund 229,835 181,144 184,232 3,088
Total Expenditures 15,582,551 16,119,044 17,022,768 903,724
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 3,536,734 3,985,725 4,110,816 125,091
Operations & Maintenance 11,167,504 11,733,319 12,141,952 408,633
Capital Outlay 878,313 400,000 770,000 370,000
Total Expenditures 15,582,551 16,119,044 17,022,768 903,724
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 64
Department Budgets | Water Utility
WATER UTILITY – ADMINISTRATION
Significant Changes
The net decrease in Personnel reflects the reclassification of a Senior Office Specialist (1.00 FTE) to a Water
Utility Operator I position in Water Utility - Operations dedicated to replacing end-of-life water meter batteries,
partially offset by market adjustments for eligible employees.
The net increase in Operations & Maintenance reflects higher electronic bill payment service charges and
increased administrative service charges from the General Fund to the Water Fund.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE) 9.48 8.48 7.48 (1.00)
% of Towns FTEs 1.77%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
Water Utility Fund 2,940,839 2,991,103 2,996,070 4,967
Total Expenditures 2,940,839 2,991,103 2,996,070 4,967
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures and Other Financing Uses by Type Actual Adopted Proposed Change
Personnel 714,850 843,378 792,213 (51,165)
Operations & Maintenance 2,225,989 2,147,725 2,203,857 56,132
Total Expenditures 2,940,839 2,991,103 2,996,070 4,967
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 65
Department Budgets | Water Utility
WATER UTILITY – ENGINEERING and PLANNING
Significant Changes
The net increase in Personnel is due to a market adjustment for eligible employees, increases in health
insurance premiums, and an increase in employee benefit elections.
The increase in Operations & Maintenance is primarily due to CAP water delivery charges.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE) 6.00 6.00 6.00 -
% of Towns FTEs 1.42%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
Water Utility Fund 6,245,344 6,696,602 7,035,717 339,115
Total Expenditures 6,245,344 6,696,602 7,035,717 339,115
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 654,021 689,557 725,922 36,365
Operations & Maintenance 5,591,323 6,007,045 6,309,795 302,750
Total Expenditures 6,245,344 6,696,602 7,035,717 339,115
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 66
Department Budgets | Water Utility
WATER UTILITY – OPERATIONS
Significant Changes
The net increase in Personnel reflects the reclassification of a Senior Office Specialist (1.00 FTE) from Water
Utility Administration to a Water Utility Operator I position dedicated to replacing end-of-life water meter
batteries, market adjustments for eligible employees, and increases in health insurance premiums.
The net increase in Operations & Maintenance reflects higher delivery costs for reclaimed water.
Capital Outlay includes new service meters, meter replacements, and the replacement of one truck.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE) 25.00 26.00 27.00 1.00
% of Towns FTEs 6.38%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
Water Utility Fund 6,166,533 6,250,195 6,806,749 556,554
Total Expenditures 6,166,533 6,250,195 6,806,749 556,554
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Personnel 2,167,863 2,452,790 2,592,681 139,891
Operations & Maintenance 3,120,357 3,397,405 3,444,068 46,663
Capital Outlay 878,313 400,000 770,000 370,000
Total Expenditures 6,166,533 6,250,195 6,806,749 556,554
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 67
Department Budgets | Water Utility
WATER UTILITY – WRSDIF
Significant Changes
The increase in Operations and Maintenance is due to an ongoing impact fee study.
2024/25 2025/26 2026/27
2025/26
To 2026/27
Personnel Summary Actual Adopted Proposed Change
Full-time Equivalents (FTE)- ---
% of Towns FTEs 0.00%
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Fund Actual Adopted Proposed Change
WRSDIF Fund 229,835 181,144 184,232 3,088
Total Expenditures 229,835 181,144 184,232 3,088
2024/25 2025/26 2026/27
2025/26
To 2026/27
Expenditures by Type Actual Adopted Proposed Change
Operations & Maintenance 229,835 181,144 184,232 3,088
Total Expenditures 229,835 181,144 184,232 3,088
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 68
Debt Service
Debt Service
The Town of Oro Valley occasionally issues debt to provide funding for the construction of capital projects. The Town
has adopted financial policies on debt capacity that set guidelines for issuing debt and provide guidance in the timing
and structuring of long-term debt commitments. The general policy of the Town is to fund capital projects with new,
dedicated streams of revenue or voter-approved debt. Non-voter-approved debt may be utilized when a dedicated
revenue source other than general revenue can be identified to pay debt service expenditures. The Town currently uses
Excise Tax Revenue Bonds, Water Project Revenue Bonds, Clean Renewable Energy Bonds, and programs offered by
the state as funding mechanisms for capital projects.
The recommended FY26/27 budget includes outstanding debt by type as follows:
Outstanding Principal at 6/30/2026: $60,200,097
Excise Tax Supported Bonds -35,253,212 3,697,070
Water Revenue supported Loans - 24,776,166 4,839,497
Leases and Financed Purchases - 170,719 160,698
Total - Town Debt - 60,200,097 8,697,265
New Issuance
Proposed in
FY 26/27
Outstanding
Debt at
6/30/2026
FY26/27 Principal
and Interest
Payments
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 69
Debt Service
Forecasted annual principal and interest payments on the Town’s current outstanding debt through
maturity
Description of Debt Types – and Principal and Interest Payments through Maturity
Excise Tax Revenue Bonds
Excise Tax Revenue Bonds are issued by the Town for the purpose of financing the construction or acquisition of capital
improvement projects. These bonds may be issued without voter approval. The Town of Oro Valley has issued excise
tax revenue bonds for the construction and improvement of water facilities, parks and recreation amenities, the
acquisition of land and construction of buildings to support Town services. In 2010, the Town issued Clean Renewable
Energy Bonds in the amount of $2.4 million to finance the construction of solar panel covered parking structures in the
parking lot of Town hall. The debt service is paid through a combination of energy savings, electricity rebates from
Tucson Electric Power Company, and a 55% interest subsidy from the U.S. Treasury Department. In 2021, the Town
issued pension obligation bonds to pay down an unfunded liability in the public safety pension retirement system
(PSPRS). Repayment of the debt is pledged with excise sales tax, state shared revenue and other permit and fee
revenues.
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 70
Debt Service
Water Revenue Supported Bonds
Water revenue bonds include bonds issued by the Town, pledging water revenues, and issued by the Town, pledging
Town excise tax but are repaid with water revenues. The previously issued obligations financed improvements to the
Town’s reclaimed and potable water systems. Water project revenue bonds may be issued without voter approval.
Water Infrastructure Finance Authority Loans (WIFA)
WIFA is a state agency that helps communities build and improve their water systems by offering financial aid and loans
at low interest rates. WIFA has the ability to assist smaller to medium-sized communities in pooling their bond issues to
help lower the costs of issuing debt. They also have monies set aside to help secure the debt and allow the bonds to be
issued at the lowest interest rate possible. WIFA’s charge is specifically with water and wastewater projects. In 2007,
the Town received a $4.6 million WIFA loan for infrastructure expansion of the reclaimed water system in the Town. In
2009, the Town received a $2.3 million WIFA loan to finance existing water system infrastructure improvements. The
2007 and 2009 WIFA loans were refunded with the issuance of the 2021 Senior Lien Water Refunding Series. In 2014,
the Town received a $4.7 million WIFA loan to finance meter replacements. In 2025, the Town received a $12,018,000
WIFA loan with $1,012,500 in forgivable principal to fund the construction of a booster station and 7 miles of water
transmission main, including a 4,000 AF/Yr. capacity booster station.
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 71
Debt Service
Lease and Financed Purchases
The Town has lease and financed purchase agreements for the financing of fitness equipment, golf carts, and printers.
Debt Limit
The Arizona Constitution limits the Town’s bonded debt capacity (outstanding principal) to a certain percentage of the
Town’s secondary assessed valuation for General Obligation (G.O.) bonds. The Constitution states that for general
municipal purposes, the Town cannot incur a debt exceeding 6% of the assessed valuation of taxable property. Additional
bonds amounting to 20% of the assessed valuation of taxable property can be issued for water, lighting and sewer
projects, and for the acquisition and development of land for open space preserves, parks, playgrounds and recreational
facilities. The Town’s current bond holdings do not include G.O. bonds and, therefore, are not subject to the debt
limitation.
Oro Valley’s Bond Rating
Both Oro Valley's Excise Tax Revenue Bonds and Water Revenue Bonds hold a strong AA rating from S&P Global
Ratings and Fitch Ratings. This top-tier designation reflects the agencies' confidence in the Town's financial
management and its positive economic outlook, signifying a very strong ability to meet future debt obligations.
Favorable bond ratings enable Oro Valley to secure financing for voter-approved capital projects, such as new parks
and water infrastructure, at advantageous interest rates. This translates to significant cost savings for taxpayers. High
bond ratings elevate the desirability of Oro Valley's bonds in the investment marketplace, thereby increasing their value
for existing bondholders.
Rating Rating Agency
Excise Tax Revenue Obligations AA+ S&P Global Ratings
Water Revenue Bonds AA Fitch Ratings
Debt Management
The issuance of debt commits the Town to a significant, long-term recurring cost; therefore, each new debt issuance
must be heavily scrutinized to ensure the Town’s ability to repay the debt. Debt service payments are contractual
obligations that take legal precedence over most other Town expenditures. Heavy debt levels may consume a significant
portion of an entity’s ongoing revenues and could impact an entity’s ability to provide services to citizens and residents,
especially during economic downturns and revenue declines. When feasible, the Town may utilize cash reserves to fund
a project, versus the issuance of debt. The Town’s financial policies on debt issuance and management also emphasize
minimal borrowing costs and affordability of future debt service obligations
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 72
Debt Service
Debt Repayment Forecast
Summary
The information below summarizes the total outstanding principal and interest on current Town debt obligations for the
next twenty years. A measure of a community’s financial soundness is its bond rating. The Town continues to maintain
very strong coverage of debt service which contributes to the favorable bond ratings received from Standard & Poor’s
Investors Service.
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 73
Debt Service
FY
Excise Tax
Revenue Bonds
Water Supported
Bonds
Water Supported
WIFA Loans
Leases and
Financed
Purchases Total
2027 3,697,070 3,686,923 1,152,574 160,698 8,697,265
2028 3,541,843 2,061,865 1,152,326 12,800 6,768,834
2029 3,150,700 1,759,224 1,152,071 6,061,995
2030 3,143,574 1,383,931 781,065 5,308,571
2031 3,143,401 1,265,475 781,065 5,189,941
2032 3,143,370 1,265,342 781,065 5,189,778
2033 2,973,085 1,264,781 781,065 5,018,931
2034 2,976,073 1,264,523 781,065 5,021,661
2035 2,799,668 759,009 781,065 4,339,742
2036 2,795,896 781,065 3,576,961
2037 2,798,399 781,065 3,579,464
2038 2,796,957 781,065 3,578,022
2039 2,791,821 781,065 3,572,886
2040 1,535,600 781,065 2,316,665
2041 1,533,900 781,065 2,314,965
2042 1,530,000 781,065 2,311,065
2043 781,065 781,065
2044 781,065 781,065
2045 781,065 781,065
2046
44,351,357 14,711,073 13,610,822 173,498 75,189,945
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 74
Fund IN OUT
GENERAL FUND
To Capital Fund - CIP - 4,000,000
To Grants & Contributions Fund - 123,200
To Debt Service Fund - Debt Service - 3,570,686
TOTAL GENERAL FUND - 7,693,886
DEBT SERVICE FUND
From General Fund - Debt Service 3,570,686 -
From Police Impact Fee Fund - 2018 PD Evidence 34,696 -
From Water Utility Fund - 2010 Clean Renewable Energy Bonds 2,852 -
TOTAL DEBT SERVICE FUND 3,608,234 -
SPECIAL REVENUE FUNDS
HIGHWAY FUND
From Capital Fund - CIP 3,000,000 -
To Grants & Contributions Fund - 66,120
TOTAL SPECIAL REVENUE FUNDS 3,000,000 66,120
CAPITAL PROJECT FUNDS
CAPITAL FUND
From General Fund 4,000,000 -
To Highway Fund - 3,000,000
To Grants & Contributions Fund - 180,465
GRANTS & CONTRIBUTIONS FUND
From General Fund 123,200 -
From Capital Fund - CIP 180,465 -
From Highway Fund 66,120
TOWNWIDE ROADWAY IMPACT FEE FUND
To PAG/RTA Fund - 1,000,000
PAG/RTA FUND
From Townwide Roadway Impact Fee Fund 1,000,000 -
POLICE IMPACT FEE FUND
To Debt Service Fund - 34,696
TOTAL CAPITAL PROJECT FUNDS 5,369,785 4,215,161
ENTERPRISE FUNDS
WATER UTILITY FUND
To WRSDIF Fund - NWRRDS CIP - 2,400,000
To Debt Service Fund - 2010 Clean Renewable Energy Bonds - 2,852
WRSDIF FUND
From Water Utility Fund - NWRRDS CIP 2,400,000 -
TOTAL ENTERPRISE FUNDS 2,400,000 2,402,852
TOTAL ALL FUNDS 14,378,019 14,378,019
Interfund Transfers
2026/2027
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 75
Capital Improvement Program | Program Overview
Capital Improvement Program (CIP)
Overview
Providing infrastructure is a primary function of local governments. Maintaining public safety, Town services, parks and
recreation facilities, adequate transportation systems, and the community’s quality of life are all heavily dependent on
how the Town handles infrastructure issues.
The Capital Improvement Program (CIP) is a comprehensive, ten-year plan of capital projects that will support the
continued growth and development of the town. The CIP is used in implementing the General Plan and supporting the
Town’s adopted Strategic Plan by developing a prioritized schedule of short-range and long-range community capital
needs, evaluating projects, and analyzing the community’s ability and willingness to pay for them in the most cost-
effective way. The Town uses the CIP as its method in determining future infrastructure requirements and planning the
financing of facilities and equipment to maintain the service levels provided to town citizens.
The Town identifies capital projects as those which:
Cost $50,000 or more;
Have an expected useful life of five or more years; and
Becomes, or preserves, an asset of the Town
Although facility repair and maintenance, as well as fleet replacements, do not meet the definition of a capital project,
they are a significant expense for the Town, and thus are included in the CIP for planning purposes.
The Town uses the Capital Improvement Program as an avenue of communication to the public. Through the CIP
document, residents and businesses are provided with an accurate and concise view of the Town’s long-term direction
for capital investment and the Town’s need for stable revenue sources to fund large multi-year capital projects.
CIP projects funded in FY 2026/27 total $26,564,308. The table below shows this breakdown by fund:
Fund Amount
General Fund $674,056
Community Center Fund $150,000
Highway Fund $4,956,990
Capital Fund $6,873,439
Grants Fund $2,984,323
PAG/RTA $1,000,000
Roadway Impact Fee Fund $650,000
Parks Impact fee Fund $300,000
Water Utility Fund $2,270,000
Water Impact Fee/ GPF $6,000,000
Stormwater Utility Fund $705,500
Total All Funds $26,564,308
Please refer to the comprehensive ten-year CIP schedules and the project descriptions for additional detail on all
projects.
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 76
Capital Improvement Program | Program Overview
Capital Improvement Program Summary
Fund 2026/27 2027/28 2028/29 2029/30 2030/31
2031/32-
2035/36 Total
General Fund 674,056$ 618,000$ 528,000$ 438,000$ 449,000$ 2,416,000$ 5,123,056$
Community Center Fund 150,000 2,495,000 230,000 1,145,000 365,000 3,374,000 7,759,000
Highway Fund 4,956,990 5,518,898 5,478,880 3,546,726 3,651,628 22,545,179 45,698,302
Capital Fund 6,873,439 3,134,000 2,532,500 2,061,000 2,007,000 17,928,500 34,536,439
Grants Fund 2,984,323 7,021,118 783,000 808,000 835,000 3,604,000 16,035,441
PAG/RTA 1,000,000 9,100,000 8,245,000 31,880,000 26,000,000 23,468,000 99,693,000
Roadway Impact Fee Fund 650,000 500,000 1,700,000 750,000 1,000,000 4,600,000
Parks Impact Fee Fund 300,000 250,000 550,000
Water Utility Fund 2,270,000 2,590,000 2,910,000 2,790,000 2,830,000 11,240,000 24,630,000
Water Impact Fee/ GPF 6,000,000 6,000,000
Stormwater Utility Fund 705,500 829,000 4,150,000 1,365,000 380,000 1,910,000 9,339,500
Total 26,564,308$ 32,056,016$ 26,557,380$ 44,783,726$ 37,517,628$ 86,485,679$ 253,964,738$
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 77
Capital Improvement Program | Program Overview
CIP Carryover from FY 2025/26 Budget
The following projects were budgeted in FY 2025/26 but are not expected to be completed in FY 2025/26. The amount
for each project below and the estimated remaining budget needs in FY 2026/27 are included in the CIP project totals.
Some of the carryover projects may be adjusted downward prior to the final budget adoption as work continues to
progress through the end of FY 2025/26.
Category Project Carryover Source
Projected
Carryover
Amount
Total FY26/27
Project Budget
Parks & Recreation
Naranja Park Shade P&R Impact Fee Fund 250,000 300,000
Vistoso Trails Nature Preserve Pond Capital Fund 2,033,939 2,033,939
Vistoso Trails Nature Preserve Site Improvements Capital Fund 166,056 366,056
Total Parks & Recreation Carryover 2,449,995$ 2,699,995$
Public Facilities, Vehicles & Equipment
680 Fuel Station Renovation Capital Fund 449,550 449,550
Public Works Operations Laydown Yard (Electricity) Highway Fund 33,019 208,019
Vehicle Replacement Program Capital Fund, Grants Fund 977,434 2,285,934
Total Public Facilities, Vehicles & Equipment Carryover 1,460,003$ 2,943,503$
Public Safety
PDHQ Development and Construction Capital Fund 1,696,339 2,196,339
Total Public Safety Carryover 1,696,339$ 2,196,339$
Stormwater
Sierra Wash at Glover Rd Infrastructure Repair & Stormwater Utility Fund 318,000 318,000
318,000$ 318,000$
Streets/Roads
Rancho Vistoso & Woodburne Intersection Roadway Impact Fee Fund 650,000 650,000
Traffic Signal at Tangerine Rd / Mussette Dr Highway Fund 675,971 675,971
Total Streets/Roads Carryover 1,325,971$ 1,325,971$
Water System
El Con/El Camino Diestro main and valve replacement Water Utility Fund 100,000 100,000
NWRRDS (Independent) Booster Station at Partnered
Reservoir
Water Impact Fee/ GPF 3,000,000 3,000,000
NWRRDS (Partnered) Pipeline Construction - Transmission
Main
Water Impact Fee/ GPF 3,000,000 3,000,000
Total Water System Carryover 6,100,000$ 6,100,000$
Grand Total 13,350,308$ 15,583,808$
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 78
Capital Improvement Plan | Projects by Category
CIP Project Listing by Category
* Denotes a project with carryforward funding
from the prior year Funding Source 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 2035/36
10-Year
Total
3,429,995 2,945,000 930,000 1,245,000 515,000 3,837,000 735,000 945,000 500,000 5,490,000 20,571,995
36 Hole - Canada #16 Lake Dredging Community Center Fund - - - - - 90,000 - - - - 90,000
36 Hole - Canada Fairway Bunkers Community Center Fund - - - - - - - - - 300,000 300,000
36 Hole - Canada Greens Conversion to Tiff
Eagle Community Center Fund - 800,000 - - - - - - - - 800,000
36 Hole - Canada Greenside Bunker Project Community Center Fund - 750,000 - - - - - - - - 750,000
36 Hole - Conquistador Fairway Bunkers Community Center Fund - - - - - - - - 300,000 - 300,000
36 Hole - Conquistador Greenside Bunker
Project Community Center Fund - - - 750,000 - - - - - - 750,000
36 Hole - Ditch Witch - Trencher Community Center Fund - - - - - - 65,000 - - - 65,000
36 Hole - Greenmaster Mowers Replacement -
Reelmaster 5510D (Fairway Unit)Community Center Fund - 115,000 - 125,000 - - - 135,000 - - 375,000
36 Hole - Greenmaster Mowers Replacement -
TriFlex 3300 Hydraulic (Greens Unit) 2@$60K Community Center Fund - - 130,000 - 140,000 - - 150,000 - - 420,000
36 Hole - John Deere 5510 Tractor with
Backhoe - Wash Repair, irrigation mainlines Community Center Fund - - - - - - - 100,000 - - 100,000
36 Hole - John Deere Turf Gator (replace
Cushman1200X - Crew Transportation Carts)Community Center Fund - 65,000 - 70,000 - - - - - 75,000 210,000
36 Hole - Kubota MX5200 - Tractor (Spread Fert
& Aerify Fairways)Community Center Fund - - - - - - - - 100,000 - 100,000
36 Hole - Procore 648 (Greens Aerifier) Community Center Fund - - - - 100,000 - - - - 110,000 210,000
36 Hole - Toro 3500D (Sidewinder) Mowing
Green Surrounds Community Center Fund - - - - - - 75,000 - - - 75,000
36 Hole - Toro 4500D Rough Mowing Units Community Center Fund - - - - - 135,000 - - - 145,000 280,000
36 Hole - Toro Multi Pro 5800 - Chemical Spray
Applications Community Center Fund - - - - - 90,000 - - - - 90,000
36 Hole - Toro Workman HDX - Heavy Duty for
Hauling Equipment Pull Top Dresser Community Center Fund - 30,000 - - - - - 60,000 - 60,000 150,000
Community Center Audio System Upgrade Community Center Fund - - 100,000 - - - - - - - 100,000
Parks & Recreation
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 79
Capital Improvement Plan | Projects by Category
CIP Project Listing by Category
* Denotes a project with carryforward funding
from the prior year Funding Source 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 2035/36
10-Year
Total
Parks & Recreation (continued)
Community Center Flat Roof Surface
Replacement Community Center Fund - 200,000 - 200,000 - 200,000 - 200,000 - 200,000 1,000,000
CRC Fitness Exterior Window Replacement Community Center Fund - - - - - 100,000 - - - - 100,000
CRC Pool Deck and Equipment Renovation Community Center Fund - 100,000 - - - - - - - - 100,000
CRC Showers ADA Compliance Community Center Fund - - - - - 44,000 220,000 - - - 264,000
Golf Maintenance - Parking Lot Reconstruction Community Center Fund - - - - - 300,000 - - - - 300,000
Golf Maintenance Fac ility Siding Replacement
and Exterior Painting Community Center Fund - 100,000 - - - - - - - - 100,000
James D. Kriegh Park - North Parking Lot
Improvements Capital Fund 375,000 - - - - - - - - - 375,000
James D. Kriegh Park Field Lighting Capital Fund - - - - 50,000 2,000,000 - - - - 2,050,000
MUP Big Wash Trailhead Improvements Parks&Rec Impact Fee
Fund - 250,000 - - - - - - - - 250,000
Naranja Park Basketball Courts Capital Fund - - - - - - - - - 500,000 500,000
Naranja Park Fields 7 & 8 Capital Fund - - - - - - - - - 4,000,000 4,000,000
Naranja Park Shade*Parks&Rec Impact Fee
Fund 300,000 - - - - - - - - - 300,000
OVAC Diving Board and Dive Block
Replacement Capital Fund - - - - - 136,000 - - - - 136,000
OVAC Olympic Pool Heater Replacement Capital Fund -- 500,000 - - - - - - - 500,000
OVAC Pool Replastering Capital Fund - - - - - - - 200,000 - - 200,000
OVAC Pump Room Upgrades - Phase Two Capital Fund 90,000 - - - - - - - - - 90,000
Parks Maintenance Mower Replacement Capital Fund 115,000 - - - - - - - - - 115,000
Pavement Preservation - CRC Parking Lot Community Center Fund 50,000 60,000 - - - - - - - - 110,000
Pusch Ridge Golf - Hole #1 Rip-Rap for erosion
control and beautification Community Center Fund 100,000 - - - - - - - - - 100,000
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 80
Capital Improvement Plan | Projects by Category
CIP Project Listing by Category
* Denotes a project with carryforward funding
from the prior year Funding Source 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 2035/36
10-Year
Total
Parks & Recreation (continued)
Pusch Ridge Golf - Toro 4500D Rough Mowing
Units Community Center Fund - - - - 125,000 - - - - - 125,000
Pusch Ridge Golf Course Pavement
Preservation Community Center Fund - 275,000 - - - - - - - - 275,000
Pusch Ridge Tennis Court Resurfacing Community Center Fund - - - - - 120,000 - - - - 120,000
Riverfront Park - Playground Renovation Capital Fund - - - - - 500,000 - - - - 500,000
Riverfront Park - ramada over sports courts Capital Fund - - - - - 22,000 275,000 - - - 297,000
Vistoso Trails Nature Preserve Pond* Capital Fund 2,033,939 - - - - - - - - - 2,033,939
Vistoso Trails Nature Preserve Site
Improvements*General Fund 366,056 200,000 200,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 1,466,056
3,556,503 3,156,000 3,053,500 2,941,000 2,908,000 2,970,500 3,050,500 3,033,500 3,118,500 3,182,500 30,970,503
680 Fuel Station Renovation*Capital Fund 449,550 -- - ------449,550
Annual Sidewalk Program Capital Fund 100,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 325,000
Equipment Replacement Program Capital Fund - 368,000 418,500 403,000 204,000 178,500 178,500 178,500 178,500 178,500 2,286,000
Facility Maintenance Program General Fund 308,000 318,000 328,000 338,000 349,000 360,000 371,000 383,000 395,000 407,000 3,557,000
MOC Water and Transit flat roof surface
replacement Capital Fund - 70,000 - - ------70,000
Network Storage Capital Fund - 50,000 - - 50,000 -----100,000
Phone System Refresh Capital Fund - - - - - - 100,000 ---100,000
Public Meeting Recording Equipment
Replacement General Fund - 100,000 - - ------100,000
Public Works Operations Laydown Yard
(Electricity)*Highway Fund 208,019 -- - ------208,019
Server OS Refresh Capital Fund 60,000 - - - - 60,000 ----120,000
Streets & Drainage Operations Asphalt
Laydown Machine Highway Fund 145,000 -- - ------145,000
Town Hall, Building A, Elevator System
Modernization Capital Fund - 75,000 - - ------75,000
Vehicle Replacement Program*
Capital Fund
Water Utility Fund
Grants Fund
2,285,934 2,150,000 2,282,000 2,175,000 2,280,000 2,347,000 2,376,000 2,447,000 2,520,000 2,572,000 23,434,934
Public Facilities, Vehicles & Equipment
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 81
Capital Improvement Plan | Projects by Category
CIP Project Listing by Category
* Denotes a project with carryforward funding
from the prior year Funding Source 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 2035/36
10-Year
Total
Public Safety 2,433,339 1,154,000 160,000 166,000 173,000 - - - - - 4,086,339
Drone as First Responder Program Grants Fund 170,000 154,000 160,000 166,000 173,000 -----823,000
PDHQ Development and Construction* Capital Fund 2,196,339 1,000,000 - - ------3,196,339
Police - Peregrine Software Grants Fund 67,000 -- - ------67,000
Stormwater 705,500 829,000 4,150,000 1,365,000 380,000 460,000 400,000 300,000 750,000 - 9,339,500
Canada Golf Course Drainage Improvements Stormwater Utility Fund - - - - - - 250,000 - - - 250,000
Carmack Wash at Shadow Mountain Estates Stormwater Utility Fund - - - - - - - - 750,000 0 750,000
Catalina Ridge Channel Modification:
Maintenance Access Ramp Stormwater Utility Fund 387,500.00 - - - - - - 0 - - 387,500
Conquistador Golf Course Drainage
Improvements Stormwater Utility Fund - - - - - - 150,000 - - - 150,000
Gravel Pit Wash at Tangerine Road Culvert Stormwater Utility Fund - - - - 380,000 - - - - - 380,000
Highland Wash (Grant Funding Required) Stormwater Utility Fund - 400,000 3,800,000 - - - - - - - 4,200,000
Highlands Wash at Monterra Ridge Stormwater Utility Fund - - - - - 460,000 - - - - 460,000
Highlands Wash at Tangerine Road Culvert Stormwater Utility Fund - - - 365,000 - - - - - - 365,000
Mutterer's Construction Stormwater Utility Fund - 150,000 350,000 1,000,000 - - - - - - 1,500,000
Naranja Park Drainage Improvements Stormwater Utility Fund - - - - - - - 300,000 - - 300,000
Pomegranate Stormwater Utility Fund - 279,000 - - - - - - - - 279,000
Sierra Wash at Glover Rd Infrastructure Repair
& Rehabilitation*Stormwater Utility Fund 318,000 - - - - - - - - - 318,000
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 82
Capital Improvement Plan | Projects by Category
* Denotes a project with carryforward funding
from the prior year Funding Source 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 2035/36
10-Year
Total
Streets/Roads 8,238,971 21,522,016 15,563,880 36,316,726 30,791,628 15,991,677 9,896,967 12,140,596 4,318,664 4,365,274 159,146,401
(RTA) Lambert Lane Widening - Thornydale Rd
to Rancho Sonora Dr (Town Contribution of
$1M)
PAG/RTA Fund
Roadway Impact Fee
Fund
- - - 25,000,000 27,000,000 -----52,000,000
(RTA) Shannon Road Widening - Lambert Lane
to Tangerine Road (Town Contribution of $1M)
PAG/RTA Fund
Roadway Impact Fee
Fund
1,000,000 9,100,000 8,170,000 6,880,000 ------25,150,000
Annual Bridge Maintenance Program Highway Fund 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 500,000
First Ave. Mill & Overlay (CDO Bridge to
Tangerine Rd.)Highway Fund - 1,695,000 - - ------1,695,000
First Avenue Bridge Deck Replacement Grants Fund - 2,662,000 - - ------2,662,000
La Cañada Bridge Deck Repair (Northbound) Grants Fund 1,160,000 -- - ------1,160,000
La Cañada Drive Mill/Overlay (Naranja Dr. to
Tangerine Rd.)Highway Fund 678,000 -- - ------678,000
Linda Vista Blvd Safety (Calle Buena Vista to
Oracle Rd)PAG/RTA - - - - - - - 3,121,000 - - 3,121,000
Moore Rd La Cholla Blvd Intersection Roadway Impact Fee
Fund - 500,000 1,700,000 - - - - - - - 2,200,000
Moore Road Widen (La Cholla Blvd to La
Cañada Drive)PAG/RTA - - - - - 9,417,000 - - - - 9,417,000
Naranja Dr. Widening ( La Cholla Bl. to 1st Ave.) PAG/RTA - - - - - - - 3,394,000 - - 3,394,000
Oracle Rd & Rams Field Intersection Roadway Impact Fee
Fund - - - 750,000 - - - - - - 750,000
Palisad es Road Widening (1st A ve to 1 mile
east)PAG/RTA - - - - - - 5,886,000 - - - 5,886,000
Pavement Preservation - Non Roadways Capital Fund 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 1,400,000
Pavement Preservation - Roadways Highway Fund 3,200,000 3,296,000 3,394,880 3,496,726 3,601,628 3,709,677 3,820,967 3,935,596 4,053,664 4,175,274 36,684,414
Rancho Vistoso & Woodburne Intersection*Roadway Impact Fee
Fund 650,000 - - - - - - - - - 650,000
Rancho Vistoso Blvd Bridge Deck
Replacement (East & Westbound Over Big
Wash)
Highway Fund, Grants
Fund - 4,079,016 - - ------4,079,016
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 83
Capital Improvement Plan | Projects by Category
CIP Project Listing by Category
* Denotes a project with carryforward funding
from the prior year Funding Source 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 2035/36
10-Year
Total
Streets/Roads (continued)
Rancho Vistoso Bridge Deck Repair over
Honeybee Wash - Eastbound
Highway Fund, Grants
Fund 685,000 - - - - - - - - - 685,000
RV Blvd Mill/Overlay - Honey Bee Wash
Bridge to Green Tree Drive Highway Fund - - 2,034,000 - - - - - - - 2,034,000
RV Blvd Mill/Overlay (Moore Rd to Tangerine
Rd)PAG/RTA - - - - - - - 1,500,000 - - 1,500,000
Summer Youth Transportation Art Program
(Summer of 2025)PAG/RTA - - 75,000 - - 75,000 - - 75,000 - 225,000
Tangerine Road Mill/Overlay (La Cañada Dr. to
Oracle Rd.)Highway Fund - - - - - 2,600,000 - - - - 2,600,000
Traffic Signal at Tangerine Rd / Mussette Dr* Highway Fund 675,971 - - - - - - - - - 675,971
Water System 8,200,000 2,450,000 2,700,000 2,750,000 2,750,000 2,200,000 2,200,000 2,200,000 2,200,000 2,200,000 29,850,000
Booster Station HP Tank Replacement Water Utility Fund - - - - - 200,000 - 200,000 - 200,000 600,000
Booster Station Rehabilitation Water Utility Fund 250,000 250,000 500,000 550,000 550,000 300,000 300,000 300,000 300,000 300,000 3,600,000
Buildings & Improvements Water Utility Fund - 100,000 - - - - - - - - 100,000
Control Systems - SCADA Water Utility Fund 500,000 500,000 500,000 500,000 500,000 400,000 400,000 400,000 400,000 400,000 4,500,000
El Con/El Camino Diestro main and valve
replacement*Water Utility Fund 100,000 - - - - - - - - - 100,000
NWRRDS (Independent) Booster Station at
Partnered Reservoir*Water Impact Fee/ GPF 3,000,000 - - - - - - - - - 3,000,000
NWRRDS (Partnered) Pipeline Construction -
Transmission Main*Water Impact Fee/ GPF 3,000,000 - - - - - - - - - 3,000,000
Reservoir Rehabilitation Water Utility Fund 400,000 400,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 4,800,000
Water Meters- New Connections (based on 210
meters per year)Water Utility Fund 700,000 700,000 700,000 700,000 700,000 500,000 500,000 500,000 500,000 500,000 6,000,000
Well HP Tank Replacement Water Utility Fund - - - - - - 200,000 - 200,000 - 400,000
Well Rehabilitation Water Utility Fund 250,000 500,000 500,000 500,000 500,000 300,000 300,000 300,000 300,000 300,000 3,750,000
Grand Total 26,564,308 32,056,016 26,557,380 44,783,726 37,517,628 25,459,177 16,282,467 18,619,096 10,887,164 15,237,774 253,964,738
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 84
Capital Improvement Plan | Contingent Projects by Category
The following projects were identified through the Capital Improvement Plan process but excluded from the CIP as they currently do not have a dedicated
funding source and/or defined scope.
Contingent CIP Project Listing by Category (Informational only - These are not budgeted)
Funding Source 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 2035/36
10-Year
Total
Parks & Recreation - 3,850,299 2,913,000 5,925,000 894,000 610,000 3,750,000 3,100,000 1,500,000 - 22,542,299
ADA Pathway Pusch View CDO River Park Highway Fund - 99,999 - - - - - - - -99,999
CRC Parking Lot Expansion Community Center Fund - - - 3,200,000 - - - - - -3,200,000
CRC Renovation and Construction Community Center Fund - - - - 600,000 - 3,000,000 3,000,000 - -6,600,000
Improved Landscape and Gathering Area at
Aquatic Center Capital Fund - 137,500 - - - - - - - -137,500
James D. Kriegh Park - Egleston Road
Connection Parking lot Capital Fund - 60,000 750,000 - - - - - - -810,000
James D. Kriegh Park - North Area
Improvements Capital Fund - - 78,000 975,000 - - - - - -1,053,000
James D. Kriegh Park - Racquetball/Basketball
Court Conversion Capital Fund - 22,800 285,000 250,000 - - - - - -557,800
MUP - Phase III – Alignment (CDO wash to
James D. Kriegh Park)Capital Fund - - 1,500,000 - - - - - - -1,500,000
Naranja Park Archery Range - Paved Parking,
Lights, Landscape Capital Fund - - - - 44,000 550,000 - - - -594,000
Naranja Park Entry Site Improvements Capital Fund - 200,000 - - - - - - - -200,000
Naranja Park Maintenance Facility Capital Fund - 1,200,000 - - - - - - - -1,200,000
Naranja Park Pickleball Courts (2) and Shade
Structure Capital Fund - 330,000 - - - - - - - -330,000
Naranja Park Ramadas Capital Fund - 500,000 - - - - - - - -500,000
Naranja Park Skate Park expansion Park Capital Fund - - - - 250,000 - - - - -250,000
Proctor/Lieber House Renovation Capital Fund - - - 1,500,000 - - - - - -1,500,000
Pusch Ridge Additional Tennis Court Community Center Fund - - 300,000 - - - - - - -300,000
Pusch Ridge Tennis Court Lighting
Replacement Community Center Fund - 300,000 - - - - - - - -300,000
Riverfront Park - Field Lighting Replacement Community Center Fund - 1,000,000 - - - - - - - -1,000,000
Riverfront Park - Parking Lot Expansion Capital Fund - - - - - 60,000 750,000 - --810,000
Steam Pump Ranch - New Northern Entry by
Panhandle Stables/Event Space Capital Fund - - - - - - - 100,000 1,500,000 -1,600,000
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 85
Capital Improvement Plan | Contingent Projects by Category
Contingent CIP Project Listing by Category (Informational only - These are not budgeted)
Funding Source 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 2035/36
10-Year
Total
- 2,170,000 342,500 550,000 615,000 - - - - - 3,677,500
680 Maintenance Yard Back-up Generator Capital Fund - - 50,000 500,000 ------550,000
Administration Building Efficiency Renovation Capital Fund
Grants Fund - - - 50,000 500,000 -----550,000
CEDPW Building D File Room to Conference
Room Renovation Capital Fund - 20,000 110,000 -------130,000
MOC Perimeter Fence & Entry Gate Capital Fund - 450,000 --------450,000
Public Works Operations Laydown Yard (Sewer
& Water)Highway Fund - 155,000 --------155,000
Town Hall, ADA compliant sidewalk connection
to La Canada Capital Fund - - - - 115,000 -----115,000
Transit Maintenance Facility Grants Fund, Capital
Fund - 1,545,000 182,500 -------1,727,500
Public Safety - 40,000 6,875,000 6,500,000 - - - - - - 13,415,000
PD Main Town Hall, Building F Remodel Capital Fund - 40,000 375,000 - ------415,000
PDHQ Development and Construction Capital Fund - - 6,500,000 6,500,000 ------13,000,000
Streets/Roads - 660,500 62,315 - - - - - 50,000 1,658,000 2,430,815
Illuminated Street Signs Highway Fund - 60,500 62,315 -------122,815
La Canada Traffic Signal - Street Improvements
(near Leman Academy)Highway Fund - 600,000 --------600,000
Tangerine Rd. Bridge Deck Replacement over
Big Wash Highway Fund --------50,000 1,658,000 1,708,000
Grand Total 6,720,799 10,192,815 12,975,000 1,509,000 610,000 3,750,000 3,100,000 1,550,000 1,658,000 42,065,614
Public Facilities, Vehicles & Equipment
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 86
James D. Kriegh Park - North Parking Lot Improvements
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost
Capital Fund - 375,000 - - - - - 375,000
Total: - 375,000 - - - - - 375,000
Naranja Park Shade
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost
Parks&Rec Impact Fee Fund - 300,000 - - - - - 300,000
Total: - 300,000 - - - - - 300,000
OVAC Pump Room Upgrades - Phase Two
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost
Capital Fund - 90,000 - - - - - 90,000
Total: - 90,000 - - - - - 90,000
The project involves installing multiple fabric shade
structures throughout Naranja Park, with emphasis on
the skate park/pump track, pickleball courts, and
playground.
None anticipated
This project reconstructs the north parking lot at James
D.Kriegh Park, which is currently in poor condition and
lacks lighting. The existing pavement will be removed
and replaced with a new base and asphalt surface,
resulting in a safer and more functional parking area for
park visitors. May include expanded parking to the north.
None anticipated
This project completes pump room improvements begun
in FY 2022/23. Upgrades include more powerful pumps
for the Olympic Pool to increase water filtration capacity,
and the installation of an ozone-based water treatment
system for the Recreation Pool that reduces use of
chemicals, improving water quality for swimmers.
None anticipated
Capital Improvement Program | Project Descriptions –Parks & Recreation
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 87
Capital Improvement Program | Project Descriptions –Parks & Recreation
Parks Maintenance Mower Replacement
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost
Capital Fund - 115,000 - - - - - 115,000
Total: - 115,000 - - - - - 115,000
Pavement Preservation - CRC
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost
Community Center Fund 50,000 60,000 - - - - 110,000
Total: - 50,000 60,000 - - - - 110,000
Pusch Ridge Golf - Hole #1 Rip-Rap for erosion control and beautification
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost
Community Center Fund - 100,000 - - - - - 100,000
Total: - 100,000 - - - - - 100,000
This project applies a protective sealant to the new
Community Recreation Center parking lot while the
asphalt is still relatively new. Treating pavement early
helps lock in the binding agents and prevents premature
deterioration, extending the life of the parking lot and
reducing long-term repair costs.
Reduced staff time currently spent on recurring sand
cleanup following rain events.
This project improves the entrance area at Hole #1 of
Pusch Ridge Golf Course, which is the first thing visitors
see when arriving at the course. The current slope allows
sand to wash onto the cart path during rain events,
requiring regular staff cleanup. The project will stabilize
the slope with rock groundcover, rebuild the entrance
pathway, replace deteriorating curbing, and patch the
asphalt in the surrounding area.
None anticipated
This project replaces a 2008 mower used for turf
maintenance at Town parks that has accumulated nearly
5,000 hours of use and has been assessed as beyond
repair.
None anticipated
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 88
Capital Improvement Program | Project Descriptions –Parks & Recreation
Vistoso Trails Nature Preserve Pond
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost
Capital Fund 427,460 2,033,939 - - - - - 2,461,399
Total: 427,460 2,033,939 - - - - - 2,461,399
Vistoso Trails Nature Preserve Site Improvements
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost*
General Fund n/a 366,056 200,000 200,000 100,000 100,000 500,000 1,466,056
Total: - 366,056 200,000 200,000 100,000 100,000 500,000 1,466,056
*This is an ongoing annual project with no definitive end. Thus, future costs and total costs shown here are only those through FY 2035/36.
Approx $100k operating and maintenance cost annually
Vistoso Trails Nature Preserve continued site
improvements per the Master Plan
Resurface and fill 2.5 acre pond at the Vistoso Trails
Nature Preserve. Includes treatment of pond edge and
enclosure of mechanical equipment.
Approx, $105,000 ($90,000 for yearly water and $15,000
for pond maintenance)
2025 Kimley-Horn and Associates, Inc
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 89
680 Fuel Station Renovation
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost
Capital Fund 61,495 449,550 - - - - - 491,895
Total: 61,495 449,550 - - - - - 491,895
Annual Sidewalk Program
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost*
Capital Fund n/a 100,000 25,000 25,000 25,000 25,000 125,000 325,000
Total: - 100,000 25,000 25,000 25,000 25,000 125,000 325,000
*This is an ongoing annual project with no definitive end. Thus, future costs and total costs shown here are only those through FY 2034/35.
Facility Maintenance Program
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost*
General Fund n/a 308,000 318,000 328,000 338,000 349,000 1,916,000 3,557,000
Total: - 308,000 318,000 328,000 338,000 349,000 1,916,000 3,557,000
*This is an ongoing annual project with no definitive end. Thus, future costs and total costs shown here are only those through FY 2035/36.
Design and construct a modern fuel station at 680 Calle
Concordia which will improve efficiencies at the station
Unknown at this time
Maintenance and rehabilitation of Town owned facilities.
Annual repair and maintenance of Town owned facilities
and assets are crucial to maintain and extend the useful
life of the asset.
Town staff personnel inspect and evaluate existing
sidewalk conditions throughout the town and contract all
necessary repairs to contractors. Concrete sidewalk
panels are currently estimated at $40 per square feet or
$640 per panel (remove and replace).
None anticipated
No changes in operating costs anticipated
Capital Improvement Program | Project Descriptions – Public Facilities, Vehicles & Equipment
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 90
Capital Improvement Program | Project Descriptions – Public Facilities, Vehicles & Equipment
Public Works Operations Laydown Yard (Electricity)
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost
Highway Fund 16,981 208,019 - - - - - 225,000
Total: 16,981 208,019 - - - - - 225,000
Server OS Refresh
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost
Capital Fund - 60,000 - - - - 60,000 120,000
Total: - 60,000 - - - - 60,000 120,000
Streets & Drainage Operations Asphalt Laydown Machine
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost
Highway Fund - 145,000 - - - - -
Total: - 145,000 - - - - - -
None anticipated
Purchases an asphalt laydown machine for the Town's
roadway maintenance division, allowing staff to perform
pavement repairs in-house rather than contracting the
work out. The equipment supports Oro Valley's ongoing
pavement maintenance program.
Specific savings have not yet been quantified.
This project updates the Town's server operating
systems that have reached the end of their supported
lifespan. Keeping server software current ensures
continued security, reliability, and vendor support.
This project will develop design plans for electrical,
HVAC, plumbing, and interior office space at the
Operations Laydown Yard building on N. La Cholla Blvd.
and W Overton Rd.
Unknown at this time
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 91
Capital Improvement Program | Project Descriptions – Public Facilities, Vehicles & Equipment
Vehicle Replacement Program
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost*
Capital Fund n/a 1,313,611 1,406,000 1,449,000 1,493,000 1,538,000 8,418,000 15,617,611
Grants Fund n/a 902,323 604,000 623,000 642,000 662,000 3,604,000 7,037,323
Water Utilty Fund n/a 70,000 140,000 210,000 40,000 80,000 240,000 780,000
Total: - 2,285,934 2,150,000 2,282,000 2,175,000 2,280,000 12,262,000 23,434,934
Annual replacement of vehicles across Town
departments. Replacement of aging fleet helps control
vehicle repair and maintenance costs. Vehicle reserves
are set aside annually to fund replacements
Reduced maintenance costs as aging vehicles are
replaced
*This is an ongoing annual project with no definitive end. Thus, future costs and total costs shown here are only those through FY 2034/35. Vehicle
replacements are evaluated annually based on actual fleet conditions. As such, future costs may change by total amount and funding sources.
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 92
Drone as First Responder Program
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost
Grants & Contributions Fund - 170,000 154,000 160,000 166,000 173,000 - 823,000
Total: - 170,000 154,000 160,000 166,000 173,000 - 823,000
PDHQ Development and Construction
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost
Capital Fund 4,151,520 2,196,339 1,000,000 - - - - 7,347,859
Total: 4,151,520 2,196,339 1,000,000 - - - - 7,347,859
Police - Peregrine Software
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost
Grants & Contributions Fund - 67,000 - - - - - 67,000
Total: - 67,000 - - - - - 67,000
Fully funded through a state grant with no impact to the
Town's operating budget.
Using a state grant, the Oro Valley Police Department is
launching a program that allows officers to deploy and
operate drones remotely without needing a pilot on
scene. Four drones stationed at two locations across
town will provide faster aerial response to active
incidents, improve officer safety, and expand the
department's capacity to assist in time-sensitive
situations.
This program is fully funded through a state grant with
no impact to the Town's operating budget.
The Town is purchasing and renovating a 50,500-square-
foot building at 13101 North Oracle Road to serve as the
new Oro Valley Police Department headquarters. The
project will be completed in phases. The amount shown
reflects only the initial phase, which covers the building
purchase, remediation of existing deficiencies, and
design and engineering work. Total project cost will be
determined as the design and scoping process is
completed.
Approximately $40,000 annually in utilities and building
maintenance costs during the initial phase, with
operating costs expected to increase once renovations
are complete and the building is occupied.
The Oro Valley Police Department will use Peregrine, a
statewide data-sharing platform that allows Arizona
public safety agencies to share information in real time,
supporting investigations and incident response across
jurisdictions.
Capital Improvement Program | Project Descriptions –Public Safety
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 93
Catalina Ridge Channel Modification: Maintenance Access Ramp
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost
Stormwater Fund - 387,500 - - - - - 387,500
Total: - 387,500 - - - - - 387,500
Sierra Wash at Glover Rd Infrastructure Repair & Rehabilitation
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost
Stormwater Fund - 318,000 - - - - - 318,000
Total: - 318,000 - - - - - 318,000
This project creates a permanent, all-weather access
point to the drainage channel running through the
Canada Ridge subdivision between Naranja Drive and
East Parker Point Place. Currently, maintenance crews
must build temporary ramps to access the channel
bottom, which can restrict water flow during rain events.
Expected to reduce annual operating and maintenance
costs by approximately $10,000 by eliminating the need
to repeatedly construct and remove temporary access
ramps, while also improving crew efficiency for routine
vegetation control and channel repairs.
Repair and rehabilitation to Glover Road's culvert over
Sierra Wash to mitigate the erosion and risk of structural
undermining. This culvert is experiencing erosion due to
natural channel downcutting, exposing and undermining
the culvert's outlet cutoff wall.
The Stormwater Utility has applied to a FEMA grant that
will cover 75% of the project costs, with the remaining
25% funded by Stormwater Utility revenues.
None anticipated
Maps data: 2/14/2024 Google, Vexcel Imaging US, Inc.
Capital Improvement Program | Project Descriptions –Stormwater
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 94
(RTA) Shannon Road Widening - Lambert Lane to Tangerine Road
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost
PAG/RTA Fund - - 9,100,000 8,170,000 6,880,000 - - 24,150,000
Road Dev Impact Fees - 1,000,000 - - - - - 1,000,000
Total: - 1,000,000 9,100,000 8,170,000 6,880,000 - - 25,150,000
Annual Bridge Maintenance Program
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost*
Highway Fund n/a 50,000 50,000 50,000 50,000 50,000 250,000 500,000
Total: - 50,000 50,000 50,000 50,000 50,000 250,000 500,000
*This is an ongoing annual project with no definitive end. Thus, future costs and total costs shown here are only those through FY 2035/36.
La Cañada Bridge Deck Repair (Northbound)
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost
Grants & Contributions Fund - 1,093,880 - - - - - 1,093,880
Highway Fund - 66,120 - - - - - 66,120
Total: - 1,160,000 - - - - - 1,160,000
This project widens Shannon Road from two lanes to
three lanes between Lambert Lane and Naranja Drive,
and constructs a new three-lane road from Naranja
Drive to Tangerine Road. Both segments will include
multi-use paths, bike lanes, curb, and drainage
improvements.
The addition of new pavement will introduce ongoing
maintenance and preservation costs for the expanded
road segment.
This program will focus on addressing nonstructural
issues related to Town bridges identified in the latest
report from the Arizona Department of Transportation
(ADOT).
Estimated $50,000 in maintenance cost savings by
implementing proactive maintenance.
The bridge deck has delaminated and needs major
repair. Project will be funded by a federal grant with a
5.7% local match.
None anticipated
Maps data: 10/102015-4/12/2025 Google, Vexcel Imaging
US, Inc.Landsat / Copernicus, Airbus
Capital Improvement Program | Project Descriptions –Streets/Roads
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 95
Capital Improvement Program | Project Descriptions –Streets/Roads
La Cañada Drive Mill/Overlay (Naranja Dr. to Tangerine Rd.)
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost
Highway Fund - 678,000 - - - - - 678,000
Total: - 678,000 - - - - - 678,000
Pavement Preservation - Non Roadways
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost*
Capital Fund n/a 140,000 140,000 140,000 140,000 140,000 700,000 1,400,000
Total: - 140,000 140,000 140,000 140,000 140,000 700,000 1,400,000
*This is an ongoing annual project with no definitive end. Thus, future costs and total costs shown here are only those through FY 2035/36.
Pavement Preservation - Roadways
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost*
Highway Fund n/a 3,200,000 3,296,000 3,394,880 3,496,726 3,601,628 19,695,179 36,684,414
Total: - 3,200,000 3,296,000 3,394,880 3,496,726 3,601,628 19,695,179 36,684,414
*This is an ongoing annual project with no definitive end. Thus, future costs and total costs shown here are only those through FY 2035/36.
This project resurfaces La Cañada Drive between
Naranja Drive and Tangerine Road, where the existing
pavement has reached the end of its lifecycle. The old
surface will be milled down and replaced with a new
asphalt overlay.
None anticipated
Maintaining adequate funding for this program prevents
future costly roadway reconstruction and rehabilitation.
Perform annual roadway treatments per the Town's
pavement preservation and management program.
Enhances and improves the roadway system
Maintaining adequate funding for this program prevents
future costly roadway reconstruction and rehabilitation.
Annual pavement preservation for non-roadway assets.
Cost effective asphalt surface treatments will be applied
to the Town's parking lots and multi-use paths to
preserve and extend the service life
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 96
Capital Improvement Program | Project Descriptions –Streets/Roads
Rancho Vistoso & Woodburne Intersection
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost
Roadway Impact Fee Fund 6,500 650,000 - - - - - 656,500
Total: 6,500 650,000 - - - - - 656,500
Rancho Vistoso Bridge Deck Repair over Honeybee Wash - Eastbound
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost
Grants & Contributions Fund - 685,000 - - - - - 685,000
Highway Fund 41,405 - - - - - - 41,405
Total: 41,405 685,000 - - - - - 726,405
Traffic Signal at Tangerine Rd / Mussette Dr
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future
Total
Estimated
Project Cost
Highway Fund 74,029 675,971 - - - - - 750,000
Total: 74,029 675,971 - - - - - 750,000
This project installs a new traffic signal at the
intersection of Tangerine Road and Mussette Drive,
which serves as the north entrance to Naranja Park.
Unknown at this time
This project will repair the Honeybee Bridge barrier walls
and deck issues. Funded with a federal grant and a
5.7% local match.
None anticipated
Unknown at this time
Reconstruction of the Rancho Vistoso & Woodburne
Intersection. The intersection is identified in the Town's
Infrastructure Improvement Plan (IIP) as one of the
projects used to determine growth development fee
rates. As such, it is eligible to receive its share of
collected development impact fees.
Maps data: 2/14/2024 Google, Vexcel Imaging US, Inc.
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 97
Booster Station Rehabilitation
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future*Total Project
Cost*
Water Utility Fund n/a 250,000 250,000 500,000 550,000 550,000 1,500,000 3,600,000
Total: - 250,000 250,000 500,000 550,000 550,000 1,500,000 3,600,000
*This is an ongoing annual project with no definitive end. Thus, future costs and total costs shown here are only those through FY 2035./36.
Control Systems - SCADA
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future Total Estimated
Project Cost*
Water Utility Fund n/a 500,000 500,000 500,000 500,000 500,000 2,000,000 4,500,000
Total: - 500,000 500,000 500,000 500,000 500,000 2,000,000 4,500,000
*This is an ongoing annual project with no definitive end. Thus, future costs and total costs shown here are only those through FY 2035./36.
El Con/El Camino Diestro main and valve replacement
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future Total Estimated
Project Cost
Water Utility Fund 23,989 100,000 - - - - - 123,989
Total: 23,989 100,000 - - - - - 123,989
Rehabilitate select booster stations to return the
boosters to optimum operational efficiency and maintain
system reliability
None anticipated
Existing water system modifications at El Conquistador
and El Camino Diestro.
Unknown at this time
Instrumentation replacement due to aging infrastructure
that is not compatible with newer Supervisory Control
and Data Acquisition (SCADA) equipment
None anticipated
Capital Improvement Program | Project Descriptions –Water System
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 98
Capital Improvement Program | Project Descriptions –Water System
NWRRDS (Independent) Booster Station at Partnered Reservoir
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future Total Estimated
Project Cost
Water Impact Fees/GPF 1,500,000 3,000,000 - - - - - 4,500,000
Total: 1,500,000 3,000,000 - - - - - 4,500,000
NWRRDS (Partnered) Pipeline Construction - Transmission Main
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future Total Estimated
Project Cost
Water Impact Fees/GPF 1,000,000 3,000,000 - - - - - 4,000,000
Total: 1,000,000 3,000,000 - - - - - 4,000,000
Reservoir Rehabilitation
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future Total Estimated
Project Cost*
Water Utility Fund n/a 400,000 400,000 500,000 500,000 500,000 2,500,000 4,800,000
Total: - 400,000 400,000 500,000 500,000 500,000 2,500,000 4,800,000
*This is an ongoing annual project with no definitive end. Thus, future costs and total costs shown here are only those through FY 2035./36.
None anticipated
Annual reservoir rehabilitation program
This project consists of the construction of a water
transmission main having a 4,000 acre-foot per year
capacity that will deliver recovered CAP water from the
Independent NWRRDS booster station to the
Independent NWRRDS reservoir located near Naranja
and Shannon Rd.
None anticipated
This project consists of the construction of a booster
station having a 4,000 acre-foot per year capacity that
will pump recovered CAP water from the Partnered
NWRRDS reservoir located near Lambert and Twin
Peaks road to the Shannon Rd. Reservoir located near
Shannon Rd. and Naranja Rd.
None anticipated
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 99
Capital Improvement Program | Project Descriptions –Water System
Water Meters - replacements and new connections
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future*Total Estimated
Project Cost*
Water Utility Fund n/a 700,000 700,000 700,000 700,000 700,000 2,500,000 6,000,000
Total: - 700,000 700,000 700,000 700,000 700,000 2,500,000 6,000,000
*This is an ongoing annual project with no definitive end. Thus, future costs and total costs shown here are only those through FY 2035./36.
Well Rehabilitation
Description:
Operating Budget Impact:
Funding Sources
Expended
Through
06/26
2026/27
Forecast
2027/28
Forecast
2028/29
Forecast
2029/30
Forecast
2030/31
Forecast Future*Total Estimated
Project Cost*
Water Utility Fund n/a 250,000 500,000 500,000 500,000 500,000 1,500,000 3,750,000
Total: - 250,000 500,000 500,000 500,000 500,000 1,500,000 3,750,000
*This is an ongoing annual project with no definitive end. Thus, future costs and total costs shown here are only those through FY 2035./36.
None anticipated
Purchase meters for new water system connections
based on two-hundred and ten meters per year
None anticipated
Remove existing pumping unit, rehabilitate the existing
well casing and install new pumping unit
Town of Oro Valley FY 2026/27 Town Manager's Recommended Budget 100
Town Manager’s Recommended Budget
Budget & Finance Commission
May 19, 2026
1
FY 26/27 Recommended Budget - $130.0 Million
2
Personnel
34%
O&M
33%
Capital
20%
Debt Service
7%
Contingency
6%
Administrative
Services
23%
Public Safety
21%Public Works
18%
Parks &
Recreation
15%
Water
23%
$151.5M vs. $130.0M – 14.2% Decrease
Comparison to Current Year Adopted Budget
3
$45.1 $41.0
$44.3
$8.9 $12.1
$44.7 $43.2
$25.7
$8.7 $7.7
$0
$10
$20
$30
$40
$50
$60
Personnel O&M Capital Debt Service Contingency
FY 2025/26 Budget
FY 2026/27 Budget
Mi
l
l
i
o
n
s
-0.8%
5.3%
-36.7%
-41.9%
-2.6%
FY 26/27 Personnel
Recommended budget includes Police step increases from current MOU and 3%
increases for other eligible non-sworn personnel
Public Safety Pension plan funded at 101% per June 2025 actuarial report.
Minimum PSPRS contribution rate: 10.47%
Budgeted PSPRS contribution rate: 12.61%
Medical insurance premiums Increased
4
ACTUAL ADOPTED PROPOSED
FY 2024/25
ADOPTED TO
FY 2025/26
PROPOSED
FY 2024/25 FY 2025/26 FY 2025/26 CHANGE
TOTAL FULL-TIME POSITION FTE 357.00 358.00 358.00 -
TOTAL PART-TIME POSITION FTE 68.56 65.05 64.99 (0.06)
TOTAL TOWNWIDE POSITION FTE 425.56 423.05 422.99 (0.06)
FY 26/27 O&M Drivers
Building on last year's flat O&M target, departments were directed to cut O&M by 0.5%.
Increases to O&M largely attributable to inflationary factors outside of Town control like:
Utility rate increases
Property and casualty insurance premiums
Software license renewals
CAP water charges
Election costs
Maintenance of newly expanded facilities (VTNP Pond, New PD Headquarters)
5
Fund Balance Report – FY 26/27 Recommended Budget
6
Beginning
Fund Balance Revenue Transfers
In Personnel O&M Capital Debt
Service Contingency Total Budget
Appropriation
Transfers
Out
Ending Fund
Balance
General Fund 15,103,150 59,330,404 - 36,877,719 16,057,975 25,000 - 2,000,000 54,960,694 7,693,886 13,778,974
Special Revenue Funds
Community Center Fund 971,583 8,728,936 - 1,371,172 7,048,974 150,000 253,325 500,000 9,323,471 - 877,048
Highway Fund 2,155,833 4,783,936 3,000,000 1,396,779 1,246,991 4,906,990 - 200,000 7,750,760 66,120 2,322,888
Seizures & Forfeitures 399,360 40,000 - - 100,000 - - 339,360 439,360 - 339,360
Debt Service Fund 107,428 118,836 3,608,234 - 10,000 - 3,697,070 100,000 3,807,070 - 127,428
Capital Project Funds
Capital Fund 17,717,774 1,639,414 4,000,000 - - 6,923,439 - 2,000,000 8,923,439 3,180,465 13,253,284
Grants & Contributions 85,164 3,509,338 369,785 - 1,009,400 2,747,323 - 100,000 3,856,723 - 207,564
TWDIF Fund 3,826,696 292,255 - - 5,294 650,000 - 300,000 955,294 1,000,000 2,463,657
PAG/RTA Fund 343,894 145,000 1,000,000 - 80,000 1,000,000 - 120,000 1,200,000 - 408,894
Parks & Rec Impact Fee Fund 777,254 128,463 - - 2,471 300,000 - 185,000 487,471 - 603,246
Police Impact Fee Fund 227,265 40,203 - - 707 - - 50,000 50,707 34,696 232,065
Rec In Lieu Fee Fund 53,418 1,450 - - - - - 18,216 18,216 - 54,868
Internal Service Funds
Benefit Self Insurance Fund 2,920,260 4,543,643 - - 5,040,065 - - 500,000 5,540,065 - 2,423,838
Enterprise Funds
Water Utility Fund 6,134,257 23,107,500 - 4,110,816 11,957,720 2,270,000 3,827,269 500,000 22,665,805 2,402,852 4,673,099
WRSDIF Fund 7,542,015 965,019 2,400,000 - 184,232 6,000,000 931,822 500,000 7,616,054 - 3,790,980
Stormwater Utility Fund 1,607,531 2,043,000 - 981,560 456,445 755,500 - 250,000 2,443,505 - 1,457,026
59,972,881 109,417,397 14,378,019 44,738,046 43,200,274 25,728,252 8,709,486 7,662,576 130,038,634 14,378,019 47,014,220
SOURCES USES
FY 26/27 Townwide Revenues - $109,412,586
7
Sales Taxes
$29.7M,
27%
State Shared Revenue
$25.7M,
24%
Water Sales
$19.4M,
18%
Charges for Services
$17.1M,
16%
Miscellaneous
$6.4M,
6%
Grants &
reimbursements
$3.9M,
4%
Intergovernmental
$2M,
2%
Investment Income
$2M,
2%
Fines, Licenses &
Permits
$1.8M,
2%
Impact Fees
$1.2M,
1%
FY27 Recommended Budgeted Revenued by Sources (in millions )
General Fund
FY 26/27 Recommended Budget
8
General Fund
9
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($)Budget (%)
Revenues and Other Sources
Local Taxes 28,497,187 27,837,339 29,734,120 1,236,933 4.3%
Licenses and Permits 2,116,123 2,317,479 1,736,631 (379,492) -17.9%
Federal Grants 375,000 581,368 475,000 100,000 26.7%
State Grants 91,851 146,851 146,851 55,000 59.9%
State Shared Revenues 19,863,884 19,809,058 21,172,646 1,308,762 6.6%
Intergovernmental 2,320,362 2,320,362 2,019,969 (300,393) -12.9%
Charges for Services 3,050,223 3,165,401 3,246,684 196,461 6.4%
Fines 68,680 56,000 68,680 - 0.0%
Interest Income 637,500 650,000 589,023 (48,477) -7.6%
Miscellaneous 210,300 218,100 140,800 (69,500) -33.0%
Total 57,231,110$ 57,101,958$ 59,330,404$ 2,099,294$ 3.7%
Expenditures and Other Uses
Personnel 37,473,980 36,553,840 36,877,719 (596,261) -1.6%
Operations & Maintenance 14,951,551 15,104,790 16,057,975 1,106,424 7.4%
Capital Outlay 211,000 211,000 25,000 (186,000) -88.2%
Transfer to Capital Fund 5,000,000 7,000,000 4,000,000 (1,000,000) -20.0%
Transfer to Grants Fund 127,750 127,750 123,200 (4,550) -3.6%
Transfer to CRC - - -
Transfer to Debt Service Fund 2,160,529 3,703,829 3,570,686 1,410,157 65.3%
Total 59,924,810$ 62,701,209$ 60,654,580$ 729,770$ 1.2%
Increase/(Decrease)(2,693,700)$ (5,599,251)$ (1,324,176)$
Beginning Fund Balance 15,103,150
Ending Fund Balance 13,778,974
Reserve (25% of Expenditures)13,240,174
General Fund – Revenues, Expenditures and Fund Balance
10
$-
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
$55
$60
$65
$70
FY 17/18
Actual
FY 18/19
Actual
FY 19/20
Actual
FY 20/21
Actual
FY 21/22
Actual
FY 22/23
Actual
FY 23/24
Actual
FY 24/25
Actual
FY 25/26
Projected
FY 26/27
Budget
M
i
l
l
i
o
n
s
General Fund
Revenues, Expenditures and Fund Balance
EXPENDITURES
REVENUES
FUND BALANCE
NET TRANSFERS OUT
$9.7 M AZ CARES/ARPA
$3.2 M ARPA
$10 M PSPRS Contribution
$13 M to
Capital Fund $10 M to
Capital Fund $7 M to
Capital Fund
$7.1 M to
Capital Fund $4 M to
Capital Fund
Local Sales Tax Trend
11
Local Sales Tax Trend (12 month rolling)
12
$0
$2
$4
$6
$8
$10
$12
$14
Ju
l
-20
Au
g
-20
Se
p
-20
O
c
t
-20
No
v
-20
De
c
-20
Ja
n
-21
Fe
b
-21
M
a
r
-21
Ap
r
-21
M
a
y
-21
Ju
n
-21
Ju
l
-21
Au
g
-21
Se
p
-21
O
c
t
-21
No
v
-21
De
c
-21
Ja
n
-22
Fe
b
-22
M
a
r
-22
Ap
r
-22
M
a
y
-22
Ju
n
-22
J
u
l
'22
A
u
g
'22
S
e
p
'22
O
c
t
'22
N
o
v
'22
D
e
c
'22
J
a
n
'23
F
e
b
'23
M
a
r
'23
A
p
r
'23
M
a
y
'23
J
u
n
'23
J
u
l
'23
A
u
g
'23
S
e
p
'23
O
c
t
'23
N
o
v
'23
D
e
c
'23
J
a
n
'24
F
e
b
'24
M
a
r
'24
A
p
r
'24
M
a
y
'24
J
u
n
'24
J
u
l
'24
A
u
g
'24
S
e
p
'24
O
c
t
'24
N
o
v
'24
D
e
c
'24
J
a
n
'25
F
e
b
'25
M
a
r
'25
A
p
r
'25
M
a
y
'25
J
u
n
'25
J
u
l
'25
A
u
g
'25
S
e
p
'25
O
c
t
'25
N
o
v
'25
D
e
c
'25
J
a
n
'26
F
e
b
'26
M
a
r
'26
Mi
l
l
i
o
n
s
Retail
Utilities
Contracting
Restaurant & Bar
Remote Seller
Hotel
FY 21/22 FY 22/23 FY 23/24 FY 20/21 FY 25/26 YTDFY 24/25
$6.6 $6.2
$9.1
$12.8
$10.3 $9.5 $10.2 $10.7 $11.2 $11.8 $12.4
2021 Actual 2022 Actual 2023 Actual 2024 Actual 2025 Actual 2026
Forecast
2027
Forecast
2028
Forecast
2029
Forecast
2030
Forecast
2031
Forecast
State Shared Income Tax (Urban Revenue Sharing)
Increased
Share from
15% to 18%.
Rate reduction
To 2.5% -2.98%
Rate reduction
to 2.5% flat tax
13
Police Department
FY 26/27 Budget Recommendations
14
FY26/27 Department Budgets
FY 25/26
Adopted
FY 26/27
Recommended Variance
Personnel $19,876,990 $19,147,298 $(729,692)
O&M 1,828,320 2,058,860 230,540
Total $20,883,222 $20,775,083 $(499,152)
Police Department
15
FY25/26 Revenue to date
FY26/27 Police Department Budget
Current fiscal revenue - $1 million. Funding items include:
SRO Reimbursements - $330,000
Stonegarden Grant - $272,204
Smart & Safe Funds - $131,000
Task Force - $170,000
GOHS Grants - $93,000
Opioid Settlements - $82,000
16
Administration Division
FY26/27 Police Department Budget
On-Call Legal Advice ($36,000)
Onsite Accreditation Assessment (minimal)
Recharge Room ($22,000)
17
Field Services Division
FY26/27 Police Department Budget
Drone as First Responder ($145,000)
New Onsite Fingerprinting ($20,000)
18
Support Services Division
FY26/27 Police Department Budget
Peregrine ($67,000)
Radio Replacements ($60,000)
New Building ($2,196,339)
19
Oro Valley Town Court
FY 26/27 Budget Recommendations
20
Town Court
FY 25/26
Adopted
FY 26/27
Recommended Variance
Personnel $904,283 $956,032 $51,749
O&M 277,474 170,200 (107,274)
Total $1,181,757 $1,126,232 $(55,525)
21
Parks & Recreation
FY 26/27 Budget Recommendations
22
Parks & Recreation - Divisions
FY 25/26
Adopted
FY 26/27
Recommended Variance
Administration $478,279 482,329 4,050
Parks Management 1,942,161 2,235,763 293,602
Recreation & Culture 806,898 822,231 15,333
Aquatics 1,723,172 1,747,037 23,865
Community Center - CRC 2,541,996 2,207,241 (334,755)
Community Center - Golf 5,863,637 6,466,230 602,593
Total $13,356,143 $13,960,831 $604,688
23
Parks & Recreation
FY 25/26
Adopted
FY 26/27
Recommended Variance
Personnel $4,240,694 $4,392,073 $151,379
O&M 8,838,389 9,315,433 477,044
Capital 48,000 - (48,000)
Debt Service 229,060 253,325 24,265
Total $13,356,143 $13,960,831 $604,688
24
Community Center - Indigo Golf
FY 25/26
Adopted
FY 26/27
Recommended Variance
Personnel $1,992,268 $2,135,640 $143,372
Food & Beverage 751,271 860,855 109,584
O&M 2,941,538 3,235,310 293,772
Equipment Leases 178,560 234,425 55,865
Total $5,863,637 $6,466,230 $602,593
25
Public Works
FY 26/27 Budget Recommendations
26
Public Works - Divisions
FY 25/26
Adopted
FY 26/27
Recommended Variance
Administration $1,673,245 $1,686,523 $13,278
Fleet & Facilities Maintenance 2,673,694 2,752,090 78,396
Transportation Engineering 5,007,653 5,032,270 24,617
Street & Drainage Maintenance 828,500 811,500 (17,000)
Stormwater 1,485,013 1,488,005 2,992
Transit 3,375,066 3,257,192 (117,874)
Total $15,043,171 $15,027,580 $(15,591)
27
Public Works
FY 25/26
Adopted
FY 26/27
Recommended Variance
Personnel $6,453,601 $6,541,080 $87,479
O&M 4,253,570 4,309,177 55,607
Capital 4,336,000 4,177,323 (158,677)
Total $15,043,171 $15,027,580 $(15,591)
28
Community and Economic
Development Department
FY 26/27 Budget Recommendations
29
CED - Divisions
FY 25/26
Adopted
FY 26/27
Recommended Variance
Administration $392,748 $405,055 $12,307
Permitting 1,209,710 1,209,842 132
Planning 1,065,188 996,108 (69,080)
Inspection and Compliance 779,829 782,322 2,493
Economic Development 827,536 831,011 3,475
Total $4,275,011 $4,224,338 $(50,673)
30
Community and Economic Development (CED)
FY 25/26
Adopted
FY 26/27
Recommended Variance
Personnel $3,190,481 $3,212,692 $22,211
O&M 1,084,530 1,011,646 (72,884)
Total $4,275,011 $4,224,338 $(50,673)
31
Town Administration
FY 26/27 Budget Recommendations
32
Administration Departments/Functions
Town
Manager’s
Office
Town Council Town Clerk Finance Legal Services
Human
Resources
Information
Technology
Non-
departmental
33
Highlights of Budget Changes
Personnel – 1.4% Increase
Compensation adjustments
Operations & Maintenance – 2.9% decrease
Elections costs
Reductions in Travel & Training
Reductions in Outside Professional Services
Reduction in Minor Assets
Increased Telecommunication Costs
Increased Software Costs
34
Budget Comparison by Category
FY 25/26
Adopted
FY 26/27
Recommended Variance % Variance
Personnel $6,449,646 $6,378,055 $(71,591)-1.1%
O&M 4,796,288 4,739,231 (57,057)-1.2%
Total $11,245,934 $11,117,286 $(128,648) -1.1%
35
Budget Comparison - Administrative Departments
FY 25/26
Adopted
FY 26/27
Recommended Variance % Variance
Town Clerk $446,275 $459,015 $12,740 2.9%
Finance 885,087 887,403 2,316 0.3%
Human Resources 744,887 750,781 5,894 0.8%
Information Technology 6,021,164 5,949,692 (71,472)-1.2%
Town Manager’s Office 1,738,771 1,854,089 115,318 6.6%
Town Council 216,163 215,477 (686)-0.3%
Legal Services 1,193,587 1,000,829 (192,758)-16.1%
Total $11,245,934 $11,117,286 $(128,648)-1.1%
36
Non-departmental
Budget highlights
37
FY26 FY27
Children’s Museum OV $60,000 $40,000
Greater Oro Valley Chamber of Commerce $60,000 $60,000
UA Center for Innovation $30,000 $30,000
General Liability and Property Insurance $1,084,334 $1,141,924
General Fund Vehicle Allocation $1,028,926 $1,116,470
Budget Comparison – Non-departmental and Other Uses
FY 25/26
Adopted
FY 26/27
Recommended Variance % Variance
Non-departmental 2,960,504 3,449,182 488,678 16.5%
Contingency 2,000,000 2,000,000 -0%
Transfers out 7,288,279 7,693,886 405,607 5.6%
38
General Fund Transfers
39
Fund IN OUT
GENERAL FUND
To Capital Fund - CIP - 4,000,000
To Grants & Contributions Fund - 123,200
To Debt Service Fund - Debt Service - 3,570,686
TOTAL GENERAL FUND - 7,693,886
Interfund Transfers
2026/2027
Community Center Fund
FY 26/27 Recommended Budget
40
Community Center Fund
41
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($)Budget (%)
Revenues and Other Sources
Local Sales Tax 3,972,920 593,099 - (3,972,920) -100.0%
Charges for Services 7,159,243 8,279,276 8,704,286 1,545,043 21.6%
Interest Income 22,500 50,000 21,150 (1,350) -6.0%
Miscellaneous 37,550 37,802 3,500 (34,050) -90.7%
Total 11,192,213$ 8,960,177$ 8,728,936$ (2,463,277)$ -22.0%
Expenditures and Other Uses
Personnel 1,303,239 1,300,447 1,371,172 67,933 5.2%
Operations & Maintenance 6,738,334 6,838,075 7,048,974 310,640 4.6%
Debt Service 229,060 290,304 253,325 24,265 10.6%
Capital Outlay 2,643,700 2,308,700 150,000 (2,493,700) -94.3%
Transfer to Debt Service Fund 1,716,268 172,968 - (1,716,268) -100.0%
Total 12,630,601$ 10,910,494$ 8,823,471$ (3,807,130)$ -30.1%
Increase/(Decrease)(1,438,388)$ (1,950,317)$ (94,535)$
Beginning Fund Balance 971,583$
Ending Fund Balance 877,048$
Community Center Fund - CRC Operations
42
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($)Budget (%)
Revenues and Other Sources
Local Sales Tax 3,972,920 593,099 - (3,972,920) -100.0%
Charges for Services 1,534,165 1,675,276 1,824,962 290,797 19.0%
Interest Income 22,500 50,000 21,150 (1,350) -6.0%
Miscellaneous 3,500 3,752 3,500 - 0.0%
Total 5,533,085$ 2,322,127$ 1,849,612$ (3,683,473)$ -66.6%
Expenditures and Other Uses
Personnel 1,303,239 1,300,447 1,371,172 67,933 5.2%
Operations & Maintenance 1,188,257 1,088,397 817,169 (371,088) -31.2%
Debt Service 50,500 50,500 18,900 (31,600) -62.6%
Capital Outlay 2,013,700 1,626,700 50,000 (1,963,700) -97.5%
Transfer to Debt Service Fund 1,716,268 172,968 - (1,716,268) -100.0%
Total 6,271,964$ 4,239,012$ 2,257,241$ (4,014,723)$ -64.0%
Increase/(Decrease)(738,879)$ (1,916,885)$ (407,629)$
Beginning Fund Balance 705,015$
Ending Fund Balance 297,386$
Community Center Fund - Golf Operations
43
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($)Budget (%)
Revenues and Other Sources
Charges for Services 5,625,078 6,604,000 6,879,324 1,254,246 22.3%
Miscellaneous 34,050 34,050 - (34,050) -100.0%
Total 5,659,128$ 6,638,050$ 6,879,324$ 1,220,196$ 21.6%
Expenditures and Other Uses
Operations & Maintenance 5,550,077 5,749,678 6,231,805 681,728 12.3%
Debt Service (Leases)178,560 239,804 234,425 55,865 31.3%
Capital Outlay 630,000 682,000 100,000 (530,000) -84.1%
Total 6,358,637$ 6,671,482$ 6,566,230$ 207,593$ 3.3%
Increase/(Decrease)(699,509)$ (33,432)$ 313,094$
Beginning Fund Balance 266,568$
Ending Fund Balance 579,662$
Highway Fund
FY 26/27 Recommended Budget
44
Highway Fund
45
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($)Budget (%)
Revenues and Other Sources
Licenses and Permits 30,000 40,000 35,350 5,350 17.8%
State Shared Revenues (HURF)4,456,367 4,290,852 4,573,619 117,252 2.6%
Interest Income 99,000 140,000 172,467 73,467 74.2%
Miscellaneous 2,500 50,489 2,500 - 0.0%
Transfer from Capital Fund 2,000,000 2,000,000 3,000,000 1,000,000 50.0%
Total 6,587,867$ 6,521,341$ 7,783,936$ 1,196,069$ 18.2%
Expenditures and Other Uses
Personnel 1,348,218 1,350,500 1,396,779 48,561 3.6%
Operations & Maintenance 1,317,935 1,283,443 1,246,991 (70,944) -5.4%
Capital Outlay 4,790,000 3,330,352 4,906,990 116,990 2.4%
Transfer to Grants Fund - - 66,120 66,120 0.0%
Total 7,456,153$ 5,964,295$ 7,616,880$ 160,727$ 2.2%
Increase/(Decrease)(868,286)$ 557,046$ 167,056$
Beginning Fund Balance 2,155,833$
Ending Fund Balance 2,322,888$
Seizures & Forfeitures Fund
FY 26/27 Recommended Budget
46
Seizures & Forfeitures Fund
47
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($)Budget (%)
Revenues and Other Sources
Seizures and Forfeitures 20,000 13,378 20,000 - 0.0%
Interest Income 20,000 19,000 20,000 - 0.0%
Total 40,000$ 32,378$ 40,000$ -$ 0.0%
Expenditures and Other Uses
Operations & Maintenance 100,000 35,000 100,000 - 0.0%
Total 100,000$ 35,000$ 100,000$ -$ 0.0%
Increase/(Decrease)(60,000)$ (2,622)$ (60,000)$
Beginning Fund Balance 399,360$
Ending Fund Balance 339,360$
Debt Service Fund
FY 26/27 Recommended Budget
48
Debt Service Fund
49
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($)Budget (%)
Revenues and Other Sources
Federal Subsidy 14,504 12,133 8,836 (5,668) -39.1%
Interest Income 32,000 25,000 30,000 (2,000) -6.3%
Miscellaneous 80,000 120,000 80,000 - 0.0%
Transfer from General Fund 3,703,829 3,703,829 3,570,686 (133,143) -3.6%
Transfer from Police Impact Fee Fund 38,765 38,765 34,696 (4,069) -10.5%
Transfer from Comm Center Fund 172,968 172,968 - (172,968) -100.0%
Transfer from Water Utility Fund 3,004 3,004 2,852 (152) -5.0%
Total 4,045,070$ 4,075,699$ 3,727,070$ (318,000)$ -7.9%
Expenditures and Other Uses
Operations & Maintenance 10,000 9,000 10,000 - 0.0%
Debt Service 4,013,070 4,013,071 3,697,070 (316,000) -7.9%
Total 4,023,070$ 4,022,071$ 3,707,070$ (316,000)$ -7.9%
Increase/(Decrease)22,000$ 53,628$ 20,000$
Beginning Fund Balance 107,428$
Ending Fund Balance 127,428$
Capital Fund
FY 26/27 Recommended Budget
50
Capital Fund
51
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($)Budget (%)
Revenues and Other Sources
Interest Income 470,000 550,000 442,944 (27,056) -5.8%
Miscellaneous 40,000 328,094 80,000 40,000 100.0%
Vehicle Reserves 1,028,926 1,028,926 1,116,470 87,544 8.5%
Transfer from General Fund 5,000,000 7,000,000 4,000,000 (1,000,000) -20.0%
Total 6,538,926$ 8,907,020$ 5,639,414$ (899,512)$ -13.8%
Expenditures and Other Uses
Operations & Maintenance - 30,000 - - 0.0%
Capital Outlay 6,417,864 5,772,912 6,923,439 505,575 7.9%
Transfer to Grants Fund 234,200 234,200 180,465 (53,735) -22.9%
Transfer to Highway Fund 2,000,000 2,000,000 3,000,000 1,000,000 50.0%
Total 8,652,064$ 8,037,112$ 10,103,904$ 1,451,840$ 16.8%
Increase/(Decrease)(2,113,138)$ 869,908$ (4,464,490)$
Beginning Fund Balance 17,717,774
Ending Fund Balance 13,253,284$
Grants & Contributions Fund
FY 26/27 Recommended Budget
52
Grants & Contributions Fund
53
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($)Budget (%)
Revenues and Other Sources
Federal Grants 1,019,550 292,318 2,583,938 1,564,388 153.4%
State Grants 103,400 102,154 340,400 237,000 229.2%
Interest Income 6,000 18,384 19,000 13,000 216.7%
Miscellaneous 561,000 - 566,000 5,000 0.9%
Transfer from General Fund 127,750 127,750 123,200 (4,550) -3.6%
Transfer from Capital Fund 234,200 59,109 180,465 (53,735) -22.9%
Transfer from Highway Fund - - 66,120 66,120 0.0%
Total 2,051,900$ 599,715$ 3,879,123$ 1,827,223$ 89.1%
Expenditures and Other Uses
Operations & Maintenance 771,500 238,896 1,009,400 237,900 30.8%
Capital Outlay 1,171,000 336,442 2,747,323 1,576,323 134.6%
Total 1,942,500$ 575,338$ 3,756,723$ 1,814,223$ 93.4%
Increase/(Decrease)109,400$ 24,377$ 122,400$
Beginning Fund Balance 85,164$
Ending Fund Balance 207,564$
PAG/RTA Fund
FY 26/27 Recommended Budget
54
PAG/RTA Fund
55
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($)Budget (%)
Revenues and Other Sources
State Grants 30,000 20,538 130,000 100,000 333.3%
Interest Income 14,000 13,720 15,000 1,000 7.1%
Transfer from Roadway Imp Fee Fund - 1,000,000 1,000,000 0.0%
Total 44,000$ 34,258$ 1,145,000$ 1,101,000$ 2502.3%
Expenditures and Other Uses
Operations & Maintenance 80,000 67,290 80,000 - 0.0%
Capital Outlay 75,000 70,000 1,000,000 925,000 1233.3%
Total 155,000$ 137,290$ 1,080,000$ 925,000$ 596.8%
Increase/(Decrease)(111,000) (103,032) 65,000
Beginning Fund Balance 343,894$
Ending Fund Balance 408,894$
Townwide Roadway Development Impact Fee Fund
FY 26/27 Recommended Budget
56
Townwide Roadway Development Impact Fee Fund
57
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($)Budget (%)
Revenues and Other Sources
Impact Fees 488,915 625,952 192,255 (296,660) -60.7%
Interest Income 100,000 110,000 100,000 - 0.0%
Total 588,915$ 735,952$ 292,255$ (296,660)$ -50.4%
Expenditures and Other Uses
Operations & Maintenance 4,287 4,287 5,294 1,007 23.5%
Capital Outlay 746,945 - 650,000 (96,945) -13.0%
Transfer To PAG/RTA Fund - - 1,000,000
Total 751,232$ 4,287$ 1,655,294$ 904,062$ 120.3%
Increase/(Decrease)(162,317)$ 731,665$ (1,363,039)$
Beginning Fund Balance 3,826,696$
Ending Fund Balance 2,463,657$
Parks and Recreation Impact Fee Fund
FY 26/27 Recommended Budget
58
Parks & Recreation Impact Fee Fund
59
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($)Budget (%)
Revenues and Other Sources
Impact Fees 364,897 382,217 109,463 (255,434) -70.0%
Interest Income 18,000 16,000 19,000 1,000 5.6%
Total 382,897$ 398,217$ 128,463$ (254,434)$ -66.4%
Expenditures and Other Uses
Operations & Maintenance 2,001 2,001 2,471 470 23.5%
Capital Outlay 250,000 - 300,000 50,000 20.0%
Total 252,001$ 2,001$ 302,471$ 50,470$ 20.0%
Increase/(Decrease)130,896$ 396,216$ (174,008)$
Beginning Fund Balance 777,254$
Ending Fund Balance 603,246$
Parks & Recreation Impact Fee Fund
60
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($)Budget (%)
Revenues and Other Sources
Impact Fees 364,897 382,217 109,463 (255,434) -70.0%
Interest Income 18,000 16,000 19,000 1,000 5.6%
Total 382,897$ 398,217$ 128,463$ (254,434)$ -66.4%
Expenditures and Other Uses
Operations & Maintenance 2,001 2,001 2,471 470 23.5%
Capital Outlay 250,000 - 300,000 50,000 20.0%
Total 252,001$ 2,001$ 302,471$ 50,470$ 20.0%
Increase/(Decrease)130,896$ 396,216$ (174,008)$
Beginning Fund Balance 777,254$
Ending Fund Balance 603,246$
Police Impact Fee Fund
FY 26/27 Recommended Budget
61
Police Impact Fee Fund
62
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($)Budget (%)
Revenues and Other Sources
Impact Fees 104,596 140,087 36,203 (68,393) -65.4%
Interest Income 3,000 3,600 4,000 1,000 33.3%
Total 107,596$ 143,687$ 40,203$ (67,393)$ -62.6%
Expenditures and Other Uses
Operations & Maintenance 572 572 707 135 23.6%
Transfer to Debt Service Fund 38,765 38,765 34,696 (4,069) -10.5%
Total 39,337$ 39,337$ 35,403$ (3,934)$ -10.0%
Increase/(Decrease)68,259$ 104,350$ 4,800$
Beginning Fund Balance 227,265$
Ending Fund Balance 232,065$
Recreation In Lieu Fee Fund
FY 26/27 Recommended Budget
63
Recreation in Lieu Fee Fund
64
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($)Budget (%)
Revenues and Other Sources
Interest Income 800 1,400 1,450 650 81.3%
Total 800$ 1,400$ 1,450$ 650$ 81.3%
Expenditures and Other Uses
Capital Outlay - - - - 0.0%
Total -$ -$ -$ -$ 0.0%
Increase/(Decrease)800$ 1,400$ 1,450$
Beginning Fund Balance 53,418
Ending Fund Balance 54,868$
Benefit Self Insurance Fund
FY 26/27 Recommended Budget
65
Benefit Self Insurance Fund
66
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($)Budget (%)
Revenues and Other Sources
Self Ins Premiums - Employer 2,905,585 2,877,616 3,300,000 394,415 13.6%
Self Ins Premiums - Employee 536,783 461,586 619,223 82,440 15.4%
COBRA Premiums 45,000 48,554 45,000 - 0.0%
Retiree Premiums 36,251 18,745 19,120 (17,131) -47.3%
Interest Income 120,000 158,000 119,000 (1,000) -0.8%
Miscellaneous 435,757 375,572 441,300 5,543 1.3%
Total 4,079,376$ 3,940,073$ 4,543,643$ 464,267$ 11.4%
Expenditures and Other Uses
Outside Professional Services 1,099,067 1,099,067 1,104,610 5,543 0.5%
Wellness Program 169,000 169,000 169,000 - 0.0%
Claim Settlement 3,616,490 3,747,069 3,766,455 149,965 4.1%
Total 4,884,557$ 5,015,136$ 5,040,065$ 155,508$ 3.2%
Increase/(Decrease)(805,181) (1,075,063) (496,422)$
Beginning Fund Balance 3,995,323 2,920,260$
Ending Fund Balance 2,423,838$
Oro Valley Water Utility
FY 26/27 Recommended Budget
67
Water Utility
68
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($)Budget (%)
Revenues and Other Sources
Charges for Services 3,457,000 3,428,800 3,427,500 (29,500) -0.9%
Federal Grants - 841,639 - - 0.0%
Interest Income 100,000 400,000 245,000 145,000 145.0%
Miscellaneous 20,000 22,388 - (20,000) -100.0%
Water Sales 18,511,000 18,752,246 19,435,000 924,000 5.0%
Loan Proceeds - 4,807,200 - - 0.0%
Total 22,088,000$ 28,252,273$ 23,107,500$ 1,019,500$ 4.6%
Expenses and Other Uses
Personnel 3,985,725 3,807,621 4,110,816 125,091 3.1%
Operations & Maintenance 11,552,175 11,367,287 11,957,720 405,545 3.5%
Capital Outlay 2,327,639 2,227,639 2,270,000 (57,639) -2.5%
Debt Service 3,890,977 3,890,977 3,827,269 (63,708) -1.6%
Transfer to Debt Service Fund 3,004 3,004 2,852 (152) -5.0%
Transfer to Impact Fee Fund 9,880,000 9,880,000 2,400,000 (7,480,000) -75.7%
Cash Total *31,639,520$ 31,176,528$ 24,568,657$ (7,070,863)$ -22.3%
Increase/(Decrease)(9,551,520)$ (2,924,255)$ (1,461,157)$
Beginning Fund Balance 6,134,257
Ending Fund Balance 4,673,099$
Water Impact Fee Fund (WRSDIF)
69
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($)Budget (%)
Revenues and Other Sources
Federal Grants - 1,262,459 - - 0.0%
Impact Fees 930,078 853,919 815,019 (115,059) -12.4%
Interest Income 175,000 180,000 150,000 (25,000) -14.3%
Loan Proceeds - 7,210,800 - - 0.0%
Transfer From Water Utility Fund 9,880,000 9,880,000 2,400,000 (7,480,000) -75.7%
Total 10,985,078$ 19,387,178$ 3,365,019$ (7,620,059)$ -69.4%
Expenditures and Other Uses
Operations & Maintenance 181,144 181,144 184,232 3,088 1.7%
Debt Service 804,494 804,494 931,822 127,328 15.8%
Capital Outlay 24,964,494 18,964,494 6,000,000 (18,964,494) -76.0%
Total 25,950,132$ 19,950,132$ 7,116,054$ (18,834,078)$ -72.6%
Increase/(Decrease)(14,965,054)$ (562,954)$ (3,751,035)$
Beginning Fund Balance 7,542,015$
Ending Fund Balance 3,790,980$
Oro Valley Stormwater Utility
FY 26/27 Recommended Budget
70
Stormwater Utility
71
FY 2026 FY 2026 FY 2027 Variance with Variance with
Budget Projected Budget Budget ($)Budget (%)
Revenues and Other Sources
Federal Grants 239,200 210,991 239,200 - 0.0%
Charges for Services 1,527,000 1,543,429 1,758,800 231,800 15.2%
Interest Income 20,000 48,000 45,000 25,000 125.0%
Total 1,786,200$ 1,802,420$ 2,043,000$ 256,800$ 14.4%
Expenses and Other Uses
Personnel 990,258 964,105 981,560 (8,698) -0.9%
Operations & Maintenance 444,755 385,661 456,445 11,690 2.6%
Capital Outlay 718,000 81,855 755,500 37,500 5.2%
Cash Total *2,153,013$ 1,431,621$ 2,193,505$ 40,492$ 1.9%
Increase/(Decrease)(366,813)$ 370,798$ (150,505)$
Beginning Fund Balance 1,607,531
Ending Fund Balance 1,457,026$
Summary
Townwide & General Fund Budget Parameters
No new additions to FTEs
0.5% reduction in O&M budget, except for budget drivers such as utilities,
insurance, etc.
General Fund meets 25% fund balance reserve policy
Budget is structurally balanced
72
Budget and Finance Commission 3.
Meeting Date:05/19/2026
Submitted By:David Gephart, Finance
SUBJECT:
DISCUSSION AND POSSIBLE RECOMMENDATION TO DEDICATE ALL FUTURE CONSTRUCTION SALES
TAX RECEIPTS FROM THE GENERAL FUND TO THE CAPITAL FUND
RECOMMENDATION:
N/A
EXECUTIVE SUMMARY:
Staff is considering a proposed change in which fund future construction sales tax will be posted. The proposal
has potential implications for current financial policies of the Town, including Policies 1-5 and 1-10.
BACKGROUND OR DETAILED INFORMATION:
During the budget process, Vice Mayor Barrett brought up the idea of dedicating all future construction sales tax
receipts to the Capital Fund. The underlying rationale being that as construction sales tax receipts are episodic
and tied to cyclical growth activity, this proposal would align the character of the revenue with the character of the
expenditure: one-time receipts funding one-time needs. This is consistent with the principle and Town policy that
growth-related or nonrecurring revenue should not support ongoing operations. Construction sales tax revenues
currently support the one-time expenditures in the General Fund (non-capital equipment and CIP which ranges
from $800K to $1M annually) and the excess is transferred to the Capital Fund.
Staff is not opposed to this concept but wanted to study its potential impacts further for sustainability and balance.
Staff agreed to bring it to the Budget & Finance Commission for review and a possible recommendation to Town
Council.
To understand the implications of the proposal, it's important to understand the relationship of the proposal to
Town policies addressing capital funding as well as the Town General Fund Reserve policy.
Town Financial Policies
Current Town Financial Policies under Policy 1-5: Capital Expenditures and Improvements, 7.0 Minimum Funding
Level (p.15) states "the annual budget shall include the allocation of a minimum of 5% of the Town's General Fund
estimated sales tax revenues (not including state-shared revenues) to fund these needs, subject to Council
approval and funding availability." This policy was instituted due to the Town not having a dedicated funding
source for capital needs.
Further, Policy 1-10: Fund Balance, 1.0 Committed Fund Balance (p.28) states "The Town shall strive to maintain
the General Fund balance at a minimum of 25% of regular General Fund operating expenditures. After completion
of the annual audit, if the fund balance exceeds 25%, the excess must be specifically designated for capital
project funding and/or reducing the Town's Public Safety Personnel Retirement System (PSPRS) unfunded
actuarial accrued liability (UAAL)."
The Town has met both of the above policy statements over the past six years, regularly transferring excess
reserves into the Capital Fund and/or utilizing those excess reserves for additional PSPRS payments. With
respect to the 5% allocation of General Fund estimated sales tax revenues being transferred to the Capital Fund,
that calculation has never exceeded the transfers made from the General Fund to the Capital Fund since
approved by Town Council, again demonstrating compliance.
Factors for Consideration
The relationship between the proposed change and the policies identified above, and especially the long-term
balance and viability of ensuring the policies are adhered to, is what is at issue here. While ensuring the Town
has adequate resources for future capital needs is a good objective, it is equally (if not more) important to ensure
the Town can successfully fund ongoing operations while maintaining adequate reserves in the General Fund. In
the attachments, staff has provided a history of construction sales tax, the 5% calculation of Town sales tax
collections, and the annual transfers from the General Fund to the Capital Fund. The attachment also shows what
those calculations are expected to be over the next five years, per the Town's five-year forecast.
Questions to consider include the following:
1) If the Town dedicates future construction sales tax revenues to the Capital Fund, is there a need moving
forward for the 5% of sales tax collections to fund future capital? In other words, does one capital funding
mechanism replace the other, or render current policy unnecessary?
2) Due to the migration of the half-cent sales tax from the Community Center Fund to the General Fund, the Town
will already be contributing more to the Capital Fund than in past years. Is a change in where construction sales
tax is being posted necessary?
3) If no policy changes are instituted and the proposed change is adopted, is that sustainable over the long-term
for the General Fund or Town operations?
4) If construction sales tax receipts are dedicated to the Capital Fund, does this affect the General Fund's ability to
fund one-time expenditures currently supported by these revenues? In other words, the General Fund
periodically has one-time expenditures which may not be able to be funded in the future if Construction Sales Tax
is migrated to the Capital Fund.
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
I Move to...
Attachments
Town Financial Policies
TPT tax collections and other items
1
Town of Oro Valley, Arizona
Financial and Budgetary Policies
Guiding Principles:
The Town of Oro Valley has an important responsibility to its residents to carefully account for
public funds, manage its finances prudently and plan for the adequate funding of services desired
by the public. Sound financial policies help ensure the Town’s capability to adequately fund and
provide government services desired by the community. The policies contained herein are
designed to foster and support the continued financial strength and stability of the Town of Oro
Valley. Following these policies enhances the Town’s financial health as well as its image and
reputation with residents, the general public, bond and credit rating agencies and investors. The
policies serve as guidelines for the Town’s overall fiscal planning and management. In addition,
both the Government Finance Officers Association (GFOA) and the National Advisory Council on
State and Local Budgeting (NACSLB) recommend formal adoption of financial policies by the
jurisdiction’s governing board. The most recent Town Council amendment and re-adoption of
the policies occurred on June 19, 2024 per Resolution (R)24-23.
2
Table of Contents
1-1 Annual Budget Process 3
1-2 Strategic Long-Range Financial Planning 6
1-3 Fiscal Monitoring & Reporting 7
1-4 Banking and Investments 8
1-5 Capital Expenditures and Improvements 14
1-6 PSPRS Pension Funding 17
1-7 Revenues 21
1-8 Expenditures 23
1-9 Debt 25
1-10 Fund Balance 27
1-11 Internal Controls 30
1-12 Grants 31
1-13 Accounting, Auditing, and Financial Reporting 32
3
Town of Oro Valley Policy
Annual Budget Process
1-1
Last Review Review Month
2024 June
Responsible for maintaining & applying this policy: Finance
Next Review: January 2025
______________________________________________________________________________
Purpose: To establish policy for setting guidelines for budgeting to help ensure a financially
sound, accountable, and transparent process.
Scope: All personnel
Definitions:
Appropriations: The legal authority to spend money granted through an adopted budget.
Balanced budget: A financial plan in which all resources are equal to all requirements.
Budget: A financial plan estimating revenues and expenditures over a set period of time, which
is usually one fiscal year.
Capital budget: A financial plan specific to procurement of durable, higher value purchases which
satisfy requirements of the capital threshold of the Town, along with the resources necessary to
fund the capital purchases.
Contingency: Planned financial reserves in a fund that are not dedicated to a particular function,
department or activity, whose purpose is to mitigate uncertainty inherent in cost estimates, as
well as unpredictable risk exposure.
Fiscal year: A year utilized for financial reporting and budgeting purposes. For the Town, the
fiscal year begins July 1 and ends June 30.
Fund: A fiscal and accounting entity with a self-balancing set of accounts.
One-time revenues: Revenues which are expected to only be received once, and do not provide
an ongoing inflow of monies to the Town.
Operating budget: A financial plan of current annual spending, along with the resources
necessary to pay for it.
4
Recurring expenditures: Expenditures which are expected to be incurred regularly and routinely
required by Town operations.
Recurring revenues: Revenues which are expected to provide an ongoing inflow of monies to the
Town.
Structurally balanced budget: A budget in which all recurring revenues are sufficient to pay
recurring expenditures. A structurally balanced budget is one that supports financial
sustainability for multiple years into the future.
Tentative Budget: A budget required by statute that is made available to the public as part of the
approval process of a final adopted budget. This version of the budget builds upon the Town
Manager’s Recommended Budget, taking into account newly incorporated data or other
improvements made to the previous version. The Tentative Budget is released to the public for
input and comment prior to final adoption.
Policy:
1.0 Operating Budget and Capital Budget – The operating budget and capital budget shall
serve as the annual financial plan of the Town. The budget shall provide staff with the
resources necessary to accomplish the Town Council’s determined service levels and will
serve as the policy documents of the Town Council for implementing its Strategic
Leadership Plan and other plans as periodically adopted by the elected body or voted on
by the community.
2.0 Budget Timelines – The Town Manager shall annually prepare and present a Town
Manager’s Recommended Budget to Town Council at least two months prior to the
beginning of a new fiscal year. Based upon feedback from Town Council, a Tentative
Budget shall be developed and approved by Town Council prior to the beginning of a new
fiscal year establishing the maximum level of spending for the new fiscal year. The final
budget shall be adopted by Town Council no later than July 31. The Town Manager shall
meet all budget requirements specified in State Law.
3.0 Balanced Budget – The proposed budget will be balanced for the ensuing fiscal year.
Deferrals, short-term loans, or one-time revenue sources will be avoided as budget
balancing techniques.
4.0 Contingency – The budget shall include contingency appropriation to provide for
unanticipated increases in service delivery costs, emergencies, and needs that may arise
through the fiscal year. The contingency appropriation may only be expended upon Town
Council approval.
5.0 Current Funding Basis – The Town shall budget and operate on a current funding basis.
Expenditures shall be budgeted and controlled so as not to exceed expected current
revenues. The Town shall strive to achieve a structurally balanced budget whereby
recurring expenditures are funded exclusively with recurring revenues.
5
6.0 Budget Development – The Town will prepare a budget in accordance with Government
Finance Officers Association best practices and its Distinguished Budget Award Program.
The proposed budget will contain the following:
6.1 Revenue estimates by major category, by fund;
6.2 Expenditure estimates by major expenditure categories, by fund;
6.3 Estimated fund balance, by fund;
6.4 Debt service, by issue, detailing principal and interest amounts;
6.5 Proposed personnel staffing levels;
6.6 A detailed schedule of capital projects;
6.7 Any additional information, data, or analysis requested of management by Town
Council.
7.0 Budget Management – The Town Council shall delegate authority to the Town Manager
in managing the budget after it is formally adopted, including transfer of funds within
programs, categories, and departments. The Town Manager may further delegate levels
of authority for the daily operation of the budget.
8.0 Level of Budget Adoption – The annual budget shall be adopted at the fund level, except
in the General Fund where it shall be adopted at the department level. To provide
sufficient control and accountability, budgets shall be prepared and monitored by major
expenditure categories (personnel, operations and maintenance, capital outlay, debt
service).
9.0 Appropriations – All appropriations shall lapse at the end of the fiscal year. There is no
carryover of appropriations from year to year.
6
Town of Oro Valley Policy Strategic Long-Range Financial Planning
1-2
Last Review Review Month
2024 June
Responsible for maintaining & applying this policy: Finance
Next Review: January 2025
______________________________________________________________________________
Purpose: To establish policy for long-range forecasting and planning to help ensure a
financially sound, accountable, and transparent Town.
Scope: All personnel
Definitions: None
Policy:
1.0 Five-year Forecast of Revenues and Expenditures – A five-year forecast of revenues and
expenditures of major funds, to include a discussion of significant trends affecting the
Town’s financial position, shall be prepared in anticipation of the annual budget process.
The forecast shall also examine critical issues facing the Town, economic conditions, and
the outlook for the upcoming budget year.
7
Town of Oro Valley Policy Fiscal Monitoring & Reporting
1-3
Last Review Review Month
2024 June
Responsible for maintaining & applying this policy: Finance
Next Review: January 2025
______________________________________________________________________________
Purpose: To establish policy for preparing and presenting regular reports that analyze,
evaluate, and forecast the Town’s financial performance and economic condition.
Scope: All personnel
Definitions: None
Policy:
1.0 Financial Status and Performance Reports – Monthly reports comparing expenditures and
revenues to current budget, noting the status of fund balances to include dollar amounts
and percentages, and outlining any remedial actions necessary to maintain the Town’s
financial position shall be prepared for review by the Town Manager and Town Council.
The monthly reports shall also contain forecasts, updated on a quarterly basis, projecting
expenditures and revenues through the end of the fiscal year.
2.0 Status Report on Capital Projects – A summary report on the contracts awarded, capital
projects completed, and the status of the Town’s various capital programs will be
prepared at least quarterly and distributed to the Town Manager and Town Council.
3.0 Compliance with Financial Policy Statements – Financial policies will be reviewed annually
by the Town Council and updated, revised or refined as deemed necessary. Policy
statements adopted by the Council are guidelines and occasionally exceptions may be
appropriate and required. However, exceptions to stated policies will be specifically
identified and the need for the exception will be documented and fully explained.
8
Town of Oro Valley Policy Banking and Investments
1-4
Last Review Review Month
2024 June
Responsible for maintaining & applying this policy: Finance
Next Review: January 2025
______________________________________________________________________________
Purpose: To establish policy for investing Town cash and investments to ensure its safety,
provide for necessary liquidity, and optimize yield.
Scope: All personnel
Definitions:
Credit risk: The risk of loss due to the failure of the security or backer and/or banks.
Interest rate risk: The risk that the market value of securities will fall or rise due to changes in
market interest rates.
Policy:
1.0 Objective – While conforming to federal, state, and other legal requirements the
primary objectives of the Town of Oro Valley investment activities shall be: Safety,
Liquidity and Yield. These objectives shall be achieved through mitigating credit risk
and interest rate risk.
1.1 Safety – The principal goal of the investment program is the preservation and
safety of the capital of all Town Funds. Each investment transacti on shall seek
to first ensure that capital losses are avoided, whether they are from security
defaults or erosion of market value.
1.2 Liquidity – The Town’s investment portfolio shall remain sufficiently liquid in
order to meet the operati ng requirements that may be reasonably foreseen.
The investment portfolio should be composed in such a way that securities
mature concurrent with cash needs to meet required demands . Furthermore,
since all possible cash demand cannot be anticipated, the portfolio should
consist largely of securities with active secondary or resale markets
(dynamic liquidity). Alternati vely, a portion of the portfolio may be placed in
money market mutual funds or local government investment pools which
offer same-day liquidity for short-term funds.
9
1.3 Yield – The Town’s investment portfolio shall attai n the highest rate of yield
through budgetary and economic cycles taking into account the constraints
imposed by its safety objectives, cash flow considerations and state laws that
restrict the placement of certain public funds. Yield on investment is of
secondary importance compared to the safety and liquidity objectives above.
The investments are limited to relatively low risk securities in anticipation of
earning a fair yield relative to the risk being assumed. Securities shall generally
be held until maturity with the following exceptions:
1.3.1 A security with declining credit may be sold early to minimize loss of
principal.
1.3.2 A security swap that would improve the quality, expected return, or target
duration in the portfolio.
1.3.3 Liquidity needs of the portfolio require that the security be sold.
1.4 Credit risk – The Town will minimize credit risk by:
1.4.1 Limiting investments to the types of securities listed in this investment
policy.
1.4.2 Pre-qualifying financial institutions, brokers/dealers, intermediaries, and
advisors with which the Town will do business in accordance to this policy.
1.4.3 Diversifying the investment portfolio so that the impact of potential losses
from any one type of security or from any one individual issuer will be
minimized.
1.5 Interest rate risk – The Town will minimize interest rate risk by:
1.5.1 Structuring the investment portfolio so that securities mature to meet cash
requirements for ongoing operations, thereby avoiding the need to sell
securities on the open market prior to maturity.
1.5.2 Investing operating funds primarily in shorter-term securities, money
market mutual funds or similar investment pools limiting the average
maturity in the portfolio in accordance with this policy.
2.0 Delegation of Authority – Authority to manage the investment program is granted to the
Town Finance Director/CFO, under the supervision of the Town Manager. Responsibility
of the operation of the daily investment program is delegated to the Finance
Director/CFO, who shall carry out the operation of the investment program
consistent with this investment policy. No employee may engage in an investment
transaction except as provided under the terms of this policy and the procedures
established by the Finance Director/CFO.
3.0 Prudence – The standard of prudence to be used by the Finance Director/CFO shall be
the "prudent person" standard and shall be applied in the context of managing the
overall portfolio . The Finance Director/CFO, shall exercise due diligence and not be
liable for losses. The "prudent person" standard with respect to Town Investments
shall be the exercise of judgment and care, with prudence, discretion and intelligence
that a person would exercise in their own affairs, not for speculation, but for
investment, considering the primary objectives set forth in Section 1-1 of this policy.
10
4.0 Ethics and Conflicts of Interest – Employees involved in the investment process will
refrain from conducting personal business activity that could conflict with the proper
execution and management of the investment program, or that could impair their ability
to make impartial decisions. Employees will disclose any material interests in financial
institutions with which they conduct business. They will disclose any personal
financial/investment positions that could be related to the performance of the
investment portfolio. Employees shall refrain from undertaking personal investment
transactions with the same individual that conducts business with the Town.
5.0 Safekeeping and Custody – To protect against potential fraud or embezzlement, the
investments of the Town shall be secured through third-party custody and safekeeping
procedures. Ownership shall be protected through third-party custodial safekeeping.
The Town’s external auditor shall review safekeeping procedures annually.
5.1 Internal Controls – The Finance Director/CFO is responsible for establishing and
maintaining an internal control structure designed to ensure that the assets of the
Town are protected from loss, theft or misuse. The controls shall be designed to
prevent the loss of public funds arising from fraud, employee error, third party
misrepresentation, unanticipated changes in financial markets or imprudent
actions by employees and officers of the Town.
5.2 Independent Financial Institution - The Town shall contract with a single,
independent financial institution for custodial and safekeeping services for the
Town’s investment portfolio.
5.3 Delivery vs. Payment – All trades of marketable securities will be executed by
delivery vs. payment (DVP) to ensure that securities are deposited in an eligible
financi al institution simultaneously to the release of funds.
5.4 Authorized Financial Dealers and Institutions – The Finance Director/CFO will
review the financial condition and registration of qualified bidders. Financial
institutions and broker/deal ers who would like to become qualified bidders
for investment transactions with the Town must supply the fol lowing:
• Audited financial statements
• Proof of National Association of Securities Dealers (NASD) certification
• Proof of stated registration with the State of Arizona pursuant to ARS
44-3101, the Financial Industry Regulatory Authority (FINRA), and the
Securities and Exchange Commission under the Investment Advisor’s
Act of 1940, as amended
• Certification of having read and understood and agreeing to comply
with the Town’s investment policy
• A statement of adherence to the Code of Professional and Ethical
Standards as described by the CFA Institute
• Evidence of adequate insurance coverage
An annual review of the financial condition and registration of all qualified
financial institutions and broker/dealers wi ll be conducted by the Finance
Director/CFO. If the Town utilizes an external investment advisor, the advisor may
11
be authorized to transact with its own Approved Broker/Dealer List on behalf of
the Town. If the investment advisor utilizes its own Broker/Dealer List, the advisor
will perform due diligence for the brokers/dealers on its Approved List.
6.0 Investment Types – Suitable and authorized investments include the following:
6.1 Authorized investments for the debt service reserve funds shall be consistent with
those set forth in the trust indentures or the long-term debt issuances.
6.2 Fully insured or collateralized certificates of deposit (CD) that are FDIC-insured
in eligible depositories if the interest rate bid is 103% or more of the equivalent
bond yield of the offer side of treasury bills.
6.3 Interest bearing savings accounts in qualified banks and savings and loan
institutions which are FDIC insured.
6.4 Repurchase agreements with maximum maturity of 180 days.
6.5 The pooled investment funds established by the State Treasurer pursuant to
A.R.S. 35-326.
6.6 Bond or other evidence of indebtedness of the United States or any of its agencies
or instrumentalities when the obligations are guaranteed as to principal and
interest by the United States or by any agency or instrumentality of the United
States.
6.7 Bonds or other evidences of indebtedness of this State, any county, city, town,
or school district. Ratings of these investments must be AAA or equivalent.
6.8 Bonds, notes or evidences of indebtedness of any county or municipal district
within this State which are payable from revenues or earnings specifically pledged
for the payment of the principal and interest on the obligations, if they meet
certain criteria as specified in A.R.S .35-323. Ratings of these investments must be
AAA or equivalent.
6.9 Bonds, notes or other evidences of indebtedness issued by any municipal
improvement district in this State to finance local improvements authorized by
law, if the principal and the interest of the obligations are payable from
assessments on real property within the local improvement district. Ratings of
these investments must be AAA or equivalent.
6.10 Money market mutual funds regulated by the Securities and Exchange Commission
and whose portfolios consist of dollar-denominated securities. Money market
mutual funds that are treasury-based funds must always be priced at $1/share.
6.11 Commercial paper, rated in the highest tier (e.g., A-1, P-1, F-1, or D-1 or higher) by
a nationally recognized rating agency.
6.12 Bonds, debentures, notes or other evidences of indebtedness that are
denominated in United States dollars and that carry at a minimum an “A” or better
rating at the time of purchase, from at least two nationally recognized rating
agencies.
6.13 Negotiable or brokered certificates of deposit issued by a nationally or state-
chartered bank or savings and loan association. Callable securities are not
permitted.
12
6.14 Collateralization of 102% will be required on two types of Town investments:
certificates of deposit and repurchase agreements.
7.0 Investment Parameters – Investment parameters include the following:
7.1 Diversification - The investments shall be diversified by:
7.1.1 Limiting investments to avoid over-concentration in securities from a
specific issuer or business sector (excluding U.S. Treasury securities)
7.1.2 Limiting investment in securities that have higher credit risks
7.1.3 Investing in securities with varying maturities
7.1.4 Investing a portion of the portfolio in readily available funds such as local
government investment pools (LGIP’s), overnight repurchase agreements,
or other overnight accounts to ensure that appropriate liquidity is
maintained in order to meet ongoing obligations
7.2 Maturities - Reserve funds are subject to different requirements on maximum
maturities than those for other Town funds according to the terms and
provisions as outlined in the trust indenture of the long-term debt issuances. To
ensure liquidity the Town shall attempt to match its investments with
anticipated cash flow requirements . As all possible cash demands cannot be
anticipated, a portion should consist of securities with active secondary and
resale markets. The Town will not invest in securities with maximum
maturities greater than those allowed under A.R.S. 35-323, Investment of
Public Monies. Currently, maximum maturities are:
7.2.1 Securities and deposits: 5 years
7.2.2 Repurchase agreements: 30/180 days in accordance with A.R.S 35-323.
7.3 Competitive Procurement Process/Use of Cooperative Contract - Before the
Town invests any public funds, a competitive procurement process should be
conducted for the necessary services or investment instruments. If a specific
maturity date is required, either for cash flow purposes or in order to conform
to maturity guidelines, bids will be requested for instruments which meet the
maturity requirement. If no specific maturity is required, a market trend (yield
curve) analysis will be conducted to determine which maturities would be most
advantageous. The competitive process will follow the policies and procedures
outlined in the Town’s Procurement Code and comply with A.R.S. 35-323. The
Town may also choose to use an existing cooperative contract provided the
contract meets all requirements of the Town’s Procurement Standards.
8.0 Shock Test – The purpose of the shock test is to analyze the impact of changes in market
interest rates on the potential value of the portfolio. The investment portfolio shall be
shock tested quarterly by the safekeeping agent as part of their contract responsibility.
At a minimum, the stress test will value the portfolio assuming interest rates rise or fall
by up to 300 basis points across the entire yield curve. Information obtained from the
stress test combined with current economic and interest rate forecasts will assist in
determining appropriate maturities for new investments considering risks.
13
9.0 Benchmarks – The investment portfolio held by authorized financial institutions will be
managed in accordance with the parameters specified within this policy. The portfolio
should obtain a market average rate of return of stable interest rates which are equal
to or exceed that obtained through investing in the State of Arizona Local Government
Investment Pool (LGIP), which is managed by the State Treasurer. Performance will be
monitored quarterly.
10.0 Banking Services – The Town will execute a contract with its financial depository which
shall designate the requirements of serving as a depository for the Town, including
collateralization of Town funds invested at such depository and the related safekeeping
requirements of the pledged securities. The Town will evaluate and request bids on
banking services every five years.
14
Town of Oro Valley Policy Capital Expenditures and Improvements
1-5
Last Review Review Month
2024 June
Responsible for maintaining & applying this policy: Finance
Next Review: January 2025
______________________________________________________________________________
Purpose: To establish policy for annually reviewing and monitoring the state of the Town’s
capital equipment and infrastructure, setting priorities for its replacement and renovation based
on needs, funding alternatives, and availability of resources.
Scope: All personnel
Definitions:
Capital asset: Any item with an acquisition cost of $25,000 or more, and an estimated useful life
of two or more years. Exceptions may be made depending on the requirements of certain federal
or state grants.
Capital improvement program (CIP): A planning document comprised of capital projects
expected to be funded over the next 10 years. The purpose of the CIP is to systematically identify,
plan, schedule, finance, track and monitor capital projects to ensure cost effectiveness as well as
conformance to established policies and Council goals and priorities.
Capital project: A project expected with an estimated cost of $50,000 or more and expected to
have a useful life of five or more years.
Lease: A contract that conveys control of the right to use another entity’s nonfinancial asset (the
underlying asset) as specified in the contract for a period of time in an exchange or exchange-like
transaction.
Lessor: The party to a lease contract who conveys the right to use its nonfinancial asset(s) to
another entity (i.e., landlord).
Lessee: The party to a lease contract who acquires the right to use another entity’s nonfinancial
asset(s) (i.e., tenant)
15
Minor Assets: Assets with an acquisition cost of $1,000 or more, but less than $25,000, and an
estimated useful life of two or more years
Subscription-based Information Technology Arrangements (SBITAs): A contract that conveys
control of the right to use another party’s information technology software, alone or in
combination with tangible capital assets, as specified in the contract for a period of time in an
exchange or exchange-like transaction.
Policy:
1.0 Capital Improvements – The Town shall annually review the needs for capital
improvements, including the current status of the Town infrastructure, replacement and
renovation needs, and potential new projects. All projects, both ongoing and proposed,
shall be prioritized based on an analysis of current needs and resource availability at the
direction of the Town Manager. For every proposed capital project, all operation,
maintenance, and replacement costs shall be fully costed. Proposed capital projects will
not be authorized or awarded until a funding source is identified.
2.0 Capital Assets – Capital assets shall be depreciated over their estimated useful lives
utilizing the straight-line method and shall be included in the operating budget.
3.0 Leases and SBITAs – Leased assets subject to GASB Statement No.87, shall be amortized
over the shorter of the lease or the asset useful life. SBITAs subject to GASB Statement
No.96, shall be amortized over the subscription contract term. The threshold for
capitalizing lessor leases shall be $150,000. The threshold for capitalizing lessee leases
and SBITAs shall be $75,000.
4.0 Capital Projects – Capital projects shall be depreciated over their estimated useful lives
utilizing the straight-line method and shall be included in both the capital improvement
program (CIP) and capital budget.
5.0 Capital Improvement Program (CIP) – A minimum ten-year capital improvement program
will be developed and updated annually, encompassing both anticipated funding sources
and any estimated operating expenditures. Estimated operating expenditures associated
with capital projects will be included in the operating budget. Estimated first-year capital
expenditures in the CIP shall be included in the Capital Fund budget. A quarterly status
report will be prepared for Council to facilitate monitoring of each project’s progress and
identify any significant issues.
6.0 Prioritization – Prioritization shall occur first at the department level, and then at the
Town-wide level by a cross-departmental capital project team. Funding sources will then
be identified for the projects ranking the highest based on evaluation criteria and
available resources.
7.0 Minimum Funding Level – In order for the Town to provide sustainable funding for capital
improvements and asset repair/maintenance needs each year, the annual budget shall
include the allocation of a minimum of 5% of the Town’s General Fund estimated sales
tax revenues (not including state-shared revenues) to fund these needs, subject to
Council approval and funding availability. These funds will be accounted for in a separate
Capital Fund.
16
8.0 Capital Expenditure Financing – The Town recognizes that there are three basic methods
of paying for capital requirements. It can budget the funds from current resources (pay
as you go), it can take the funds from fund balance as allowed by the Fund Balance Policy
(another pay as you go method), or it can borrow money through debt. Debt financing
includes general obligation bonds, revenue bonds, lease/purchase agreements,
certificates of participation, and other debt instruments permitted under Arizona law.
Guidelines for incurring debt are set forth in the Debt Policy Statements.
9.0 Audits – The Finance Department shall be responsible for verifying the actual physical
existence of capital and minor assets and the accuracy of the Town’s asset database. The
process will be monitored through asset audits of Town departments and divisions. Any
significant irregularities will be reported to the Town Manager. The Town shall strive to
perform a complete inventory of capital items at least every two years.
10.0 Minor Assets – Minor assets will be recorded on an asset replacement schedule and
monitored from acquisition until disposition. Such assets will neither be capitalized nor
depreciated in the Town Annual Comprehensive Financial Report.
17
Town of Oro Valley Policy Public Safety Personnel Retirement System (PSPRS)
Pension Funding
1-6
Last Review Review Month
2025 June
Responsible for maintaining & applying this policy: Finance
Next Review: June 2026
______________________________________________________________________________
Purpose: The intent of this policy is to clearly communicate the Town Council’s pension
funding objectives, its commitment to employees and the sound financial management of the
Town of Oro Valley and maintain compliance with statutory requirements of ARS 38-863.01. The
Council shall annually assess the status of the Town’s PSPRS trust fund and take formal action to
update this policy in concert with the final annual budget approval. This policy shall also apply
to the Town’s participation in the Correction Officer Retirement Plan (CORP).
Scope: The Town’s sworn police employees who are regularly assigned hazardous duty
participate in the PSPRS. Selected individuals who serve as dispatchers in the Oro Valley Police
Department participate in the CORP plan, which is also administered by PSPRS.
Definitions:
Unfunded actuarial accrued liability (UAAL): The difference between trust assets and the
estimated future cost of pensions earned by employees. This UAAL results from actual results
(investment income, member mortality, disability rates, payroll increases, etc.) being different
from the assumptions used in previous actuarial valuations.
Annual required contribution (ARC): The annual amount required to pay into the pension funds,
as determined through annual actuarial valuations. It is comprised of two primary components:
normal pension cost - which is the estimated cost of pension benefits earned by employees in
the current year; and amortization of UAAL - which is the cost needed to cover the unfunded
portion of pensions earned by employees in previous years. The UAAL is collected over a period
of time referred to as the amortization period. The ARC is a percentage of the current payroll.
Funded ratio: A ratio of fund assets to actuarial accrued liability. The higher the ratio, the better
funded the pension is, with 100% being fully funded based on current actuarial valuations.
Intergenerational equity: A concept meant describe the policy expectation that no generation is
burdened by substantially more or less pension costs than past or future generations.
18
Policy:
1.0 Public Safety Personnel Retirement System (PSPRS)
1.1 PSPRS is administered as an agent multiple-employer pension plan. An agent
multiple-employer plan has two main functions:
1.1.1 To comingle assets of all plans under its administration, thus achieving
economy of scale for more cost-efficient investments, and invest those
assets for the benefit of all members under its administration.
1.1.2 To serve as the statewide uniform administrator for the distribution of
benefits.
1.2 Under an agent multiple-employer plan, each agency participating in the plan has
an individual trust fund reflecting that agencies’ assets and liabilities. Under this
plan all contributions are deposited to and distributions are made from that fund’s
assets, each fund has its own funded ratio and contribution rate, and each fund
has a unique annual actuarial valuation. The Town of Oro Valley has one trust
fund for police employees. The Town also contributes to the Correction Officer
Retirement Plan (CORP), administered by the Public Safety Personnel Retirement
System, on behalf of selected individuals who serve as dispatchers in the Oro
Valley Police Department. CORP maintains one trust fund for dispatchers.
1.3 Oro Valley Town Council formally accepts the assets, liabilities, and current
funding ratio of the Town’s PSPRS and CORP trust funds from the June 30, 2024
actuarial valuations specified below.
Trust Fund Assets Accrued Liability
Unfunded Actuarial
Accrued
Asset/(Liability)
Funded
Ratio
Oro Valley Police $86,551,076 $87,755,942 ($ 1,204,866) 98.6%
Oro Valley Dispatchers $ 4,106,486 $ 3,995,956 $ 100,530 102.8%
1.4 PSPRS and CORP Funding Goal – Pensions that are less than fully funded place the
cost of service provided in earlier periods (amortization of UAAL) on current
taxpayers. Fully funded pension plans are the best way to achieve taxpayer and
member intergenerational equity.
1.5 The Council’s PSPRS and CORP funding ratio goal is 100% (fully funded) by June
30, 2026 and beyond. Council establishes this goal for the following reasons:
1.5.1 The PSPRS and CORP trust funds represent only the Town of Oro Valley’s
liability.
1.5.2 The fluctuating cost of an UAAL causes strain on the Town’s budget,
affecting the Town’s ability to provide services.
1.5.3 A fully funded pension is the best way to achieve taxpayer and member
intergenerational equity.
1.6 Council has determined that in order to achieve the 100% funding ratio goal, the
following actions will be taken:
19
1.6.1 The total employer contribution to the police plan for fiscal year 2026 will
be the recommended employer contributions made by the actuary in its
June 30, 2024 report ($738,817), plus additional excess contributions
scheduled for fiscal year 2026 ($2,100,000) for a sum total of $2,838,817.
1.6.2 The CORP plan does not require any additional contributions as it is fully
funded.
1.6.3 Retain the 20-year amortization of unfunded liability.
1.6.4 Review Local board practices annually.
1.6.5 Periodically engage consultants to review actual results and recommend
possible adjustments or corrections as necessary.
1.7 Payments to PSPRS will be as follows:
1.7.1 In fiscal year 2026, the Town will contribute an additional $2,100,000
above and beyond the employer actuary-recommended contribution of
$738,817.
1.7.2 In FY27 and beyond, the Town will reevaluate its additional contributions
based upon future actuarial valuations and budget capacity.
1.8 It is hereby the Town Council’s intent to achieve its goal of 100% funding by June
30, 2026, in accordance with the amortization timeline set forth by the PSPRS and
CORP June 30, 2024 Actuarial Valuation.
1.9 The following shows the historical performance of the unfunded actuarial accrued
liability:
Unfunded
Accrued Actuarial Accrued Funded
Year Trust Fund Assets Liability Asset/(Liability) Ratio
2014 Oro Valley Police $23,567,852 $36,122,643 $(12,554,791) 65%
2014 Oro Valley Dispatchers $ 1,216,956 $ 2,269,744 $ (1,052,788) 54%
2015 Oro Valley Police $26,200,389 $40,452,911 $(14,252,522) 65%
2015 Oro Valley Dispatchers $ 1,205,067 $ 2,362,604 $ (1,157,537) 51%
2016 Oro Valley Police $29,296,195 $48,414,270 $(19,118,075) 61%
2016 Oro Valley Dispatchers $ 1,163,258 $ 2,524,360 (1,361,102) 46%
2017 Oro Valley Police $31,882,797 $53,037,566 $(21,154,769) 60%
2017 Oro Valley Dispatchers $ 1,260,798 $ 3,077,649 $ (1,816,851) 41%
2018 Oro Valley Police $34,172,618 $57,022,056 $(22,849,438) 60%
2018 Oro Valley Dispatchers $ 1,337,558 $ 2,945,307 $ (1,607,749) 45%
20
2019 Oro Valley Police $37,842,906 $62,278,853 $(24,435,947) 61%
2019 Oro Valley Dispatchers $ 1,424,947 $ 3,240,399 $ (1,815,452) 44%
2020 Oro Valley Police $41,498,361 $67,240,526 $(25,742,165) 62%
2020 Oro Valley Dispatchers $ 1,504,732 $ 3,374,933 $ (1,870,201) 45%
2021 Oro Valley Police $46,773,089 $70,792,554 $(24,019,465) 66%
2021 Oro Valley Dispatchers $ 1,649,829 $ 3,551,295 $ (1,901,466) 46%
2022 Oro Valley Police $77,967,201 $76,438,334 $ 1,528,867 102%
2022 Oro Valley Dispatchers $ 1,710,819 $ 3,721,151 $ (2,010,332) 46%
2023 Oro Valley Police $81,319,622 $85,636,864 $ (4,317,242) 95%
2023 Oro Valley Dispatchers $ 3,929,592 $ 3,910,076 $ 19,516 100%
2024 Oro Valley Police $86,551,076 $87,755,942 $ (1,204,866) 99%
2024 Oro Valley Dispatchers $ 4,106,486 $ 3,995,956 $ 110,530 103%
Source: Town Annual Comprehensive Financial Report for June 30, 2024 – Note 16.
21
Town of Oro Valley Policy Revenues
1-7
Last Review Review Month
2024 June
Responsible for maintaining & applying this policy: Finance
Next Review: January 2025
______________________________________________________________________________
Purpose: To establish policy for designating, maintaining, and administering a revenue
system that assures a reliable, equitable, diversified, and sufficient revenue stream to support
desired Town services.
Scope: All Personnel
Definitions: None
Policy:
1.0 Balance and Diversification in Revenue Sources – The Town shall strive to maintain a
balanced and diversified revenue system to protect it from fluctuations in any one source
due to changes in local economic conditions which adversely impact that source.
2.0 User Fees and Charges – For services that benefit specific users, the Town shall establish
and collect fees to recover the costs of those services. The Town Council shall determine
the appropriate cost recovery level and establish the fees. Where feasible and desirable,
the Town shall seek to recover full direct and indirect costs. Material user fees shall be
reviewed on an annual basis to calculate their full cost recovery levels, to compare them
to the current fee structure, and to recommend adjustments where necessary.
3.0 Development Impact Fees – Development impact fees for capital expenses attributable
to new development will be reviewed periodically to ensure the fees recover all direct
and indirect development-related expenses and be approve by Town Council.
4.0 Enterprise Revenues – The Town will establish rates and fees at levels to fully cover the
total direct and indirect costs, including operations, capital outlay, debt service, debt
coverage requirements and unrestricted cash reserve balances. Enterprise funds will not
be used to subsidize operations of other funds. Interfund charges will be assessed for the
administrative support of enterprise fund activities.
5.0 Revenue Estimates for Budgeting – To maintain a stable level of services, the Town shall
use a conservative, objective and analytical approach when preparing revenue estimates.
The process shall include analysis of probable economic changes and their impacts on
revenues, historical collection rates, and trends in revenues. This approach should reduce
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the likelihood of actual revenues falling short of budget estimates during the year and
should avoid mid-year service reductions.
6.0 Revenue Collection and Administration – The Town shall maintain high collection rates
for all revenues by keeping the revenue system as simple as possible to facilitate payment.
In addition, because revenue should exceed the cost of producing it, the Town shall strive
to control and reduce administrative costs. The Town shall pursue to the full extent
allowed by state law all delinquent taxpayers and others overdue in payments to the
Town.
7.0 Write-off of Uncollectible Accounts – The Town shall monitor payments due the Town
(accounts receivable) and the Town Manager or designee shall periodically write-off
accounts where collection efforts have been exhausted and/or collections efforts are not
feasible or cost-effective.
8.0 Use of One-time Revenues – The Town shall discourage the use of one-time revenues for
ongoing expenditures.
9.0 Use of Unpredictable Revenues – The Town shall exercise caution with the use of
unpredictable revenues (ie. construction sales tax) for ongoing expenditures.
23
Town of Oro Valley Policy Expenditures
1-8
Last Review Review Month
2024 June
Responsible for maintaining & applying this policy: Finance
Next Review: January 2025
______________________________________________________________________________
Purpose: To establish policy for identifying priority services, establish appropriate service
levels, and administer the expenditure of available resources to assure fiscal stability and the
effective and efficient delivery of Town services.
Scope: All Personnel
Definitions: None
Policy:
1.0 Current Funding Basis – The Town shall operate on a current funding basis. Expenditures
shall be budgeted and controlled so as to not exceed current revenues plus the planned
use of fund balance accumulated through prior year savings. (The use of fund balance
shall be guided by the Fund Balance Policy Statements).
2.0 Avoidance of Operating Deficits (Governmental Funds) – The Town Manager shall take
immediate corrective actions if, at any time during the fiscal year, expenditure and
revenue re-estimates are such that an operating deficit (projected expenditures in excess
of projected revenues) is projected at year-end. Corrective actions may include a hiring
freeze, employee reductions, expenditure reductions, fee increases, use of fund balance
within the Fund Balance Policy or other actions that may be deemed necessary and
appropriate. Expenditure deferrals into the following fiscal year, short-term loans or use
of one-time revenue sources shall be avoided in attempt to achieve fiscal structural
balance. Corrective actions referenced above shall be presented to Town Council at the
earliest possible time for approval.
3.0 Maintenance of Capital Assets – Within the resources available each fiscal year, the Town
shall maintain capital assets and infrastructure at a sufficient level to protect the Town’s
investment, to minimize future replacement and maintenance costs, and to continue
service levels.
4.0 Periodic Program Reviews – The Town Manager shall undertake periodic staff and third-
party reviews of Town programs for both efficiency and effectiveness. Privatization and
contracting with other governmental agencies will be evaluated as alternative
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approaches to service delivery. Programs which are determined to be inefficient and/or
ineffective shall be reduced in scope or eliminated.
5.0 Purchasing – The Town shall conduct its purchasing and procurement functions efficiently
and effectively, fully complying with applicable Federal and State laws, and the Town
Procurement Code. Staff shall make every effort to maximize any discounts offered by
creditors/vendors. Staff shall also utilize competitive bidding or cooperative purchasing
agreements to attain the best possible price on goods and services. Procurement policy
and procedures are found in Town AD 2-2.
6.0 Uniform Expenditure Reporting System – The Arizona Constitution imposes a limit on the
expenditures of local jurisdictions. The Town will comply with these expenditure
limitations and submit an audited expenditure limitation report, audited financial
statements, and audited reconciliation report as defined by the Uniform Expenditure
Reporting System to the State Auditor General within prescribed timelines in accordance
with A.R.S. 41-1279.07.
7.0 Budget Amendments and Transfers – To provide flexibility in the management of
department budgets for major expenditures (personnel, operations & maintenance,
capital outlay, and debt service) the following amendment and transfer provisions shall
apply:
7.1 Transfers of budget capacity between funds shall require the recommendation of
the Town Manager and formal action by the Town Council.
7.2 Transfers of budget capacity between line items within each major expenditure
category shall be permitted upon recommendation of the Department Head and
approval by the Town Manager.
7.3 Transfers of budget capacity between line items or major expenditure categories
to fund additional personnel or increased expenditures as a result of personnel
reclassifications shall require the recommendation of the Town Manager and
formal action by the Town Council.
7.4 Transfers of budget capacity that reduce or eliminate funding for items designated
in the adopted Capital Improvement Program shall require the recommendation
of the Town Manager and approval of the Town Council.
7.5 Transfers of budget capacity that reduce or eliminate funding for debt service shall
require the recommendation of the Town Manager and approval of the Town
Council.
25
Town of Oro Valley Policy Debt
1-9
Last Review Review Month
2024 June
Responsible for maintaining & applying this policy: Finance
Next Review: January 2025
______________________________________________________________________________
Purpose: To establish policy for establishing guidelines for debt financing that provides
needed capital equipment and infrastructure improvements while minimizing the impact of debt
payments on current revenues.
Scope: All Personnel
Definitions:
Excise Tax: Excise taxes for purposes of debt repayment include Town Sales and Franchise Fees,
Licenses and Permits, Fines, State-shared Sales Tax, and State-shared Income Tax revenues.
Policy:
1.0 Use of Debt Financing – Debt financing, to include general obligation bonds, certificates
of participation, lease/purchase agreements, and other obligations permitted to be
issued or incurred under Arizona law, shall only be used to purchase capital assets that
cannot be prudently acquired from either current revenues or fund balance. The useful
life of the asset or project shall exceed the repayment schedule of any debt the Town
assumes. The Town shall not use long-term debt to finance current operations.
2.0 Future Bond Proposals – Future bond proposals will be accompanied by an analysis
showing how the new issue, combined with current debt, impacts the Town’s debt
capacity and conformance with Town debt policies. The Town shall only issue additional
non-enterprise fund debt should its excise taxes equal or exceed five times the annual
debt service requirement of all its current and proposed annual debt obligations.
3.0 Bond Rating – The Town will seek to maintain, and if possible, improve current bond
ratings in order to minimize borrowing costs and preserve access to credit. The Town will
encourage and maintain good relations with financial bond rating agencies and will follow
a policy of full and open disclosure.
4.0 Utilization of Bond Proceeds – Proceeds from bonded debt will be used in accordance
with the purpose of the issuance. Funds remaining after the project is completed will be
26
used in accordance with the provisions stated in the bond ordinance that authorized the
issuance of the debt.
5.0 Arbitrage Rebate – The Town shall comply with Internal Revenue Service arbitrage rebate
requirements for bonded debt.
6.0 Interest Earnings on Bond Proceeds – Interest earnings on bond proceeds will be limited
to 1) funding or acquiring the improvement(s), or 2) payment of debt service on the
bonds.
7.0 Bond Project Eligibility – All projects funded with bonded debt must be included in the
Town’s Capital Improvement Program.
8.0 Bond Refunding – When considering refunding any outstanding bonded debt, either the
Town or its financial advisor will perform a cost benefit analysis to determine if the cost
savings of refunding will be greater than the cost to refund. Considerations will be made
with regard to existing bond covenants when refunding any bonded debt.
9.0 Pledging of Utility Revenues – When utility revenues are pledged as debt service
payments, the Town will strive to maintain a 1.3 times debt service coverage ratio to
ensure debt coverage in times of revenue fluctuation. This will be in addition to the
required ratio of the bond indenture.
10.0 Debt Limit – Article IX, Section 8 of the Arizona Constitution limits the Town’s bonded
debt capacity (outstanding principal) to a certain percentage of the Town’s secondary
assessed valuation by the type of project to be constructed. The limit for general purpose
municipal projects is 6%. For water, light, sewer, open space, public safety, park, law
enforcement, fire and emergency services, and streets and transportation facilities
projects, the limit is 20%.
11.0 Post-Issuance Compliance – The Town will comply with all post-issuance compliance
requirements in conformance with federal tax laws.
12.0 Bonded Indebtedness Report – In accordance with A.R.S. 35-501 and 35-502, new bond
and securities issuances will be reported to the State Treasurer within 60 days of issuance.
Further, the Town will produce an annual bonded indebtedness report to the Arizona
Department of Administration.
27
Town of Oro Valley Policy Fund Balance
1-10
Last Review Review Month
2025 September
Responsible for maintaining & applying this policy: Finance
Next Review: January 2026
______________________________________________________________________________
Purpose: To establish policy for maintaining the fund balance of various operating funds at
sufficient levels to protect the creditworthiness of the Town as well as its financial position for
emergencies.
Scope: All Personnel
Definitions:
Nonspendable Fund Balance: That portion of a fund balance that includes amounts that cannot
be spent because they are either (a) not in spendable form, such as prepaid items, supplies
inventory, or loans receivable; or (b) legally or contractually required to be maintained intact,
such as the principal portion of an endowment.
Restricted Fund Balance: That portion of a fund balance that reflects constraints placed on the
use of resources (other than nonspendable items) that are either (a) externally imposed by
creditors, such as debt covenants, grantors, contributors, or laws or regulations of other
governments; or (b) imposed by law through constitutional provisions or enabling legislation.
Committed Fund Balance: That portion of a fund balance that includes amounts that can only be
used for specific purposes pursuant to constraints imposed by formal action of the government’s
highest level of decision-making authority and remain binding unless removed in the same
manner. Town Council action must be taken on or before June 30 of the applicable fiscal year.
Assigned Fund Balance: That portion of a fund balance that includes amounts that are
constrained by the government’s intent to be used for specific purposes, but that are neither
restricted nor committed. Such intent needs to be established at either the highest level of
decision making, or by the Town Manager.
Unassigned Fund Balance: That portion of a fund balance that includes amounts which do not
fall into one of the above four categories. The General Fund is the only fund that should report
this category of fund balance.
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Policy:
1.0 Committed Fund Balance – The Town shall strive to maintain the General Fund balance
at a minimum of 25% of regular General Fund operating expenditures. After completion
of the annual audit, if the fund balance exceeds 25%, the excess must be specifically
designated for capital project funding and/or reducing the Town’s Public Safety Personnel
Retirement System (PSPRS) unfunded actuarial accrued liability (UAAL).
2.0 Unassigned Fund Balance – The Town shall strive to always maintain a positive unassigned
fund balance.
3.0 Use of Fund Balance – Fund Balance shall be used only for emergencies, non-recurring
expenditures or major capital purchases that cannot be accommodated through current
year savings. Should such use reduce the balance below the appropriate level set as the
objective for that fund, restoration recommendations will accompany the decision to
utilize said balance.
4.0 Governmental Accounting Standards Board (GASB) Statement No.54 – In accordance with
GASB Statement No.54, fund balances will be classified in the following components:
4.1 Nonspendable Fund Balance
4.2 Restricted Fund Balance
4.3 Committed Fund Balance
4.4 Assigned Fund Balance
4.5 Unassigned Fund Balance
The following matrix depicts to which classification fund balances of Town governmental
funds will be applied:
Fund Restricted Committed Assigned Unassigned Comments
State & Justice Seizure Funds X Restricted by State Statute
Municipal Debt Service Fund X Restricted by Debt Covenants
Oracle Road Improvement District Fund X Restricted by Debt Covenants
Townwide Roadway Impact Fee Fund X Restricted by State Statute
Parks & Recreation Impact Fee Fund X Restricted by State Statute
Police Impact Fee Fund X Restricted by State Statute
Highway Fund X Restricted by State Constitution & Statute
PAG/RTA Fund X Restricted by PAG/RTA
Grant/Contracts Fund X Restricted by Grantor/Donor
Community Center Fund X
Capital Fund X
General Fund
Council 25% Reserve Policy on Contingency X Committed by Town Council
Planned Use of Fund Balance/Budget Deficit X
5.0 Town Council Authorization – Fund balance reserves may only be appropriated by
authorization of the Town Council.
6.0 Utilization Priority – When multiple categories of fund balance reserves are available for
expenditure (i.e. a construction project is being funded partly by a grant, funds set aside
by Town Council and unassigned fund balance) the Town will start with the most
29
restricted category – spending those funds first – before moving down to the next
category with available funds.
7.0 Water Enterprise Fund – The Water Enterprise Fund shall maintain a cash reserve in the
operating fund of not less than 20% of the combined total of the annual budgeted
amounts for personnel, operations and maintenance, and debt service. This cash reserve
amount specifically excludes budgeted amounts for capital projects, depreciation,
amortization and contingency. No cash reserve is required for the Water Utility Impact
Fee Funds.
8.0 Annual Review – All Town budgetary fund designations and reserves will be evaluated
annually for long-term adequacy and use requirements in conjunction with development
of the Town’s long-term financial forecast.
30
Town of Oro Valley Policy Internal Controls
1-11
Last Review Review Month
2024 June
Responsible for maintaining & applying this policy: Finance
Next Review: January 2025
______________________________________________________________________________
Purpose: To establish policy for maintaining an internal control structure designed to
provide reasonable assurance that Town assets are safeguarded and that the possibilities for
material errors in the Town’s financial records are minimized.
Scope: All Personnel
Definitions: None
Policy:
1.0 Proper Authorizations – Procedures shall be designed, implemented, and maintained to
ensure that financial transactions and activities are properly monitored, reviewed, and
authorized.
2.0 Separation of Duties – Job duties will be adequately separated to reduce to an acceptable
level the opportunities for any person to be able to both perpetrate and conceal errors or
irregularities in the normal course of assigned duties.
3.0 Proper Recording – Procedures shall be developed and maintained that will ensure
financial transactions and events are properly recorded and that all financial reports may
be relied upon as accurate, complete and current.
4.0 Access to Assets and Records – Procedures shall be designed and maintained to ensure
that adequate safeguards exist over access to and use of financial assets and records.
5.0 Independent Checks – Independent checks and audits will be made on staff performance
to ensure compliance with established procedures and proper valuation of recorded
amounts.
6.0 Costs and Benefits – Internal control systems and procedures must have an apparent
benefit in terms of reducing and/or preventing losses. The cost of implementing and
maintaining any control system will be evaluated against the expected benefits to be
derived from that system.
7.0 Information Technology – The Town will follow policies and procedures outlined in AD4-
1 Information Security and Computer Usage to minimize risk associated with electronic
financial records being compromised.
31
Town of Oro Valley Policy Grants
1-12
Last Review Review Month
2024 June
Responsible for maintaining & applying this policy: Finance
Next Review: January 2025
______________________________________________________________________________
Purpose: To establish policy for seeking, applying for and effectively administering federal,
state and foundation grants which address Town priorities and policy objectives.
Scope: All Personnel
Definitions: None
Policy:
1.0 Grant Guidelines – The Town shall apply for only those grants consistent with the
objectives and high priority needs previously identified by the Town Council. The
potential for incurring ongoing costs, to include the assumption of support for grant-
funded positions from operating revenues, will be considered prior to applying for a grant.
2.0 Indirect Costs – The Town shall attempt to recover full indirect costs unless the funding
agency does not allow it to do so. The Town may waive or reduce indirect costs if it is
deemed to be advantageous to the Town.
3.0 Grant Review – Anticipated grant requests will be evaluated by the Town Budget
Committee. Federal or State grant requests less than $15,000 will not be considered. All
grant submittals shall be reviewed for their cash match requirements, their potential
impact on the operating budget, and the extent to which they meet Town policy
objectives. If there are cash match requirements, the source of funding shall be identified
prior to application submittal.
4.0 Grant Program Termination – The Town shall terminate grant-funded programs and
associated positions when grant funds are no longer available unless alternate ongoing
funding is identified.
32
Town of Oro Valley Policy Accounting, Auditing, and Financial Reporting
1-13
Last Review Review Month
2024 June
Responsible for maintaining & applying this policy: Finance
Next Review: January 2025
______________________________________________________________________________
Purpose: To establish policy for complying with prevailing federal, state and local statutes
and regulations, as well as current professional standards, principles and practices.
Scope: All Personnel
Definitions: None
Policy:
1.0 Conformance to Accounting Principles and Recommended Practices – The Town
accounting practices and financial reporting shall conform to generally accepted
accounting principles (GAAP) as promulgated by the Governmental Accounting Standards
Board (GASB), and best practices recommended by the American Institute of Certified
Public Accountants (AICPA) and the Government Finance Officers Association (GFOA).
2.0 Selection of Auditors – The Town shall request proposals from qualified, independent
certified public accounting firms every five years, including the current auditors if their
past performance has been satisfactory. The audit firm selected shall perform an annual
audit of the books of account, records and transactions, opining on the Basic Financial
Statements and Single Audit Report (if necessary).
3.0 Audit Completion – The Town shall strive to have its Annual Comprehensive Financial
Report (ACFR), Alternative Expenditure Limitation Report, and Single Audit Report (if
necessary) completed and available within 180 days, 270 days, and 270 days, respectively,
after the close of its previous fiscal year ending June 30.
4.0 Report Submission to GFOA – The Town shall annually submit its budget to the GFOA
Distinguished Budget Presentation Program. Further, the Town shall also annually submit
its ACFR to the GFOA Certificate of Achievement for Excellence in Financial Reporting
program.
Town of Oro Valley
TPT tax collections analysis and other items
Annualized FORECAST
Construction Sales Tax FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031
Collections 5,985,332 5,570,685 4,925,664 6,860,980 5,525,757 5,524,238 3,876,815 2,078,246 2,223,172 2,790,871 2,353,449 2,119,618 1,614,425
5% General Fund TPT
Total tpt collections 20,419,118 19,877,196 21,031,618 26,806,278 26,555,729 26,779,181 26,003,603 27,476,951 29,388,733 31,127,456 31,651,531 32,575,109 32,965,431
5% of tpt 1,020,956 993,860 1,051,581 1,340,314 1,327,786 1,338,959 1,300,180 1,373,848 1,469,437 1,556,373 1,582,577 1,628,755 1,648,272
General Fund Transfers to Capital Fund
3,403,000 1,100,000 1,771,143 5,216,277 13,500,000 10,000,000 7,139,787 5,750,000 5,618,094 3,266,605 3,393,583 3,905,138 3,573,929
Excess PSPRS/CORP Payments
- 500,000 500,000 10,000,000 2,010,332 2,500,000 1,113,910 1,156,498 214,185 500,000 500,000 500,000 500,000