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HomeMy WebLinkAboutPackets - Budget and Finance Committee (67)       AGENDA ORO VALLEY BUDGET AND FINANCE COMMISSION REGULAR SESSION JUNE 16, 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 MAY 19, 2026 REGULAR SESSION MEETING MINUTES   2.PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY 25/26 FINANCIAL UPDATE THROUGH MARCH 2026 (PLEASE REFERENCE ATTACHMENTS)   3.PRESENTATION AND DISCUSSION OF FY 2026/2027 BUDGET   COUNCIL LIAISON COMMENTS   ADJOURNMENT   POSTED: 6/10/26 at 5:00 PM by ck POSTED: 6/10/26 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:06/16/2026   Submitted By:Melissa Flores, Legal SUBJECT: REVIEW AND APPROVAL OF THE MAY 19, 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 May 19, 2026 regular session meeting minutes Attachments Draft Minutes 051926  D R A F T MINUTES 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  at 4:01 PM by Chair Karlsberg   ROLL CALL Present: Erin Krapf, Commissioner    John Moothart, Commissioner    Eloho Okeze, Commissioner    Dan Karlsberg, Chair    Absent:Joyce Garland, Vice Chair [EXCUSED] Staff Present: David Gephart, Chief Financial Officer Wendy Gomez, Deputy Finance Director Chris Hutchison, Senior Budget Analyst Jeff Wilkins, Town Manager Steven Zraick, Town Attorney PLEDGE OF ALLEGIANCE led by Chair Karlsberg   CALL TO AUDIENCE - No speaker cards were received   STAFF LIAISON REPORT Chief Financial Officer, David Gephart, reported on the following:  At the last Town Council Meeting:  A Public Hearing was held on adopting the OV Path Forward General Plan Town Council approved a planned area of development at the former Rooney Ranch Property Council approved utilizing some current year funding for installing irrigation at the Vistoso Trails Nature Preserve Pond area. Items to note at the next Town Council Meeting:  Public Hearing on a amendment concerning a Sun City Ornamental Fountain Discussion and possible action to adopt the Oro Valley Leisure Travel Management Plan Public Hearing to amend the Oro Valley Town Code regarding the legal services provided to the Town Study Session regarding road improvements and development at the Vistoso Marketplace located at Rancho Vistoso and Tangerine Rd. Public Hearing to adopt the Tentative Budget on June 3, 2026  A Budget Study Session was held with Town Council on May 4th 5/19/26 Minutes, Budget and Finance Commission Regular Session 1   REGULAR SESSION AGENDA   1.REVIEW AND APPROVAL OF THE APRIL 21, 2026 REGULAR SESSION MEETING MINUTES   Motion by Commissioner Erin Krapf, seconded by Commissioner John Moothart to approve the April 21, 2026, Regular Session Meeting Minutes.  Vote: 4 - 0 Carried    2.PRESENTATION, REVIEW AND DISCUSSION OF TOWN FY2026/27 TOWN MANAGER'S RECOMMENDED BUDGET Presented by Chief Financial Officer, David Gephart. Discussion ensued amongst Staff and Commissioners.   3.DISCUSSION AND POSSIBLE RECOMMENDATION TO DEDICATE ALL FUTURE CONSTRUCTION SALES TAX RECEIPTS FROM THE GENERAL FUND TO THE CAPITAL FUND Presented by Chief Financial Officer, David Gephart. Discussion ensued amongst Staff and Commissioners.   Motion by Chair Dan Karlsberg, seconded by Commissioner Eloho Okeze to continue as is and to further review the scenario at a future meeting  Vote: 4 - 0 Carried    COUNCIL LIAISON COMMENTS No comments were received.   ADJOURNMENT   Motion by Commissioner John Moothart, seconded by Commissioner Erin Krapf 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 19th day of May, 2026.  I further certify that the meeting was duly called and held and that a quorum was present. Dated this 19th day of May, 2026.   ___________________________ Melissa Flores Legal Secretary  5/19/26 Minutes, Budget and Finance Commission Regular Session 2    Budget and Finance Commission 2. Meeting Date:06/16/2026   Submitted By:Christopher Hutchison, Finance SUBJECT: PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY 25/26 FINANCIAL UPDATE THROUGH MARCH 2026 (PLEASE REFERENCE ATTACHMENTS) RECOMMENDATION: N/A EXECUTIVE SUMMARY: Please reference attachments for this item. BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments March FY 2026 Financial Update  Town Manager’s Office DATE: TO: FROM: TOWN COUNCIL REPORT May 26, 2026 Mayor and Council Jeff Wilkins, Town Manager David Gephart, Chief Financial Officer SUBJECT: March 2026 Financial Update This financial update is intended to provide an overview and status of revenues and expenditures for the Town’s selected funds through March 2026 for fiscal year 2025/26. Funds included in this financial update are the General Fund, Highway Fund, Community Center Fund and Capital Fund. Also included are the two enterprise funds, Water and Stormwater. Please note that all amounts are preliminary, un-audited and subject to change. Additionally, figures may not include any adjusting audit entries required at year-end. Pages 1-15 are the financial status reports for the funds. Appendix 1 and 2 provide further details on golf activity and contractor performance. Appendix 3 is the consolidated report of all Town funds. Appendix 4 is the local sales tax collections. Appendix 5 is the General Fund state shared revenues. Appendix 6 is a breakdown of the Town’s outstanding debt service principal and interest payments. Appendix 7 is a summary of operating investment values and earnings by month. Appendix 8 lists the specific infrastructure projects that are eligible to receive funding from impact fees. General Fund Financial Status Fiscal Year to Date: March 2026 Revenues ` Amount Percent Local Sales Tax 20,011,509$ 20,753,738$ 32,470,107$ (11,716,369)$ 64% 28,421,308$ State Shared Revenues 15,280,679 14,871,307 19,863,884 (4,992,577) 75% 19,809,058 Licenses & Permits 1,368,805 1,972,790 2,116,123 (143,333) 93% 2,342,437 Grants 521,762 563,000 466,851 96,149 121% 731,368 Intergovernmental 1,449,868 1,406,158 2,320,362 (914,204) 61% 2,300,860 Charges for Service 2,274,341 2,345,920 3,050,223 (704,303) 77% 3,192,254 Other Revenue 1,309,383 684,049 916,480 (232,431) 75% 922,905 Total Revenues 42,216,347$ 42,596,962$ 61,204,030$ (18,607,068)$ 70% 57,720,190$ Uses Amount Percent Personnel Services 25,822,451$ 26,218,700$ 37,457,276$ 11,238,576$ 70% 36,218,440$ Operations and Maintenance 10,484,519 9,781,429 15,317,790 5,536,361 64% 14,452,790 Capital Outlay 170,180 87,806 211,000 123,194 42% 211,000 Transfers Out 7,243,019 9,453,829 8,831,579 (622,250) 107% 10,831,579 Total Uses 43,720,169$ 45,541,764$ 61,817,645$ 16,275,881$ 74% 61,713,809$ Change in Fund Balance Total Revenues 42,216,347$ 42,596,962$ 61,204,030$ 57,720,190$ 57,720,190$ Total Uses (43,720,169) (45,541,764) (61,817,645) (61,713,809) (61,713,809) Change in Fund Balance (1,503,822)$ (2,944,802)$ (613,615)$ (3,993,619)$ (3,993,619)$ Beginning Fund Balance 20,702,401$ 20,702,401$ Estimated Ending Fund Balance 17,757,599$ 16,708,782$ 16,708,782$ Note: The estimated ending fund balance exceeds the Town's 25% expenditure reserve policy by a margin of about $4 million. Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2025/26 Budget Year End Estimate Year End Estimate 75% through the fiscal year (Period 9 of 12)Page 1 of 14 General Fund Financial Status Fiscal Year to Date: March 2026 Local Sales Tax Revenue Amount Percent Construction 3,155,861$ 1,701,931$ 5,086,266$ (3,384,335)$ 33% 2,599,280$ Utilities 3,177,940 3,088,399 4,316,890 (1,228,491) 72% 3,846,900 Retail 6,981,039 8,407,669 11,836,368 (3,428,699) 71% 11,449,868 Remote Seller 1,403,491 1,968,325 2,444,773 (476,448) 81% 2,666,660 Bed Tax 1,770,794 1,521,064 2,464,858 (943,794) 62% 2,044,300 Restaurant & Bar 2,059,570 2,423,987 3,726,636 (1,302,649) 65% 3,395,947 Other 1,130,728 1,321,477 1,941,265 (619,788) 68% 1,765,303 Cable Franchise 332,087 320,886 653,051 (332,165) 49% 653,051 Local Sales Tax Total 20,011,509$ 20,753,738$ 32,470,107$ (11,716,369)$ 64% 28,421,308$ State Shared Revenue Amount Percent State Income Tax 7,707,824$ 7,141,997$ 9,522,662$ (2,380,665)$ 75% 9,522,662$ State Sales Tax 5,489,200 5,591,555 7,376,599 (1,785,044) 76% 7,376,599 Vehicle License Tax 1,945,462 2,006,612 2,629,797 (623,185) 76% 2,629,797 Smart and Safe 138,192 131,143 334,826 (203,683) 39% 280,000 State Shared Total 15,280,679$ 14,871,307$ 19,863,884$ (4,992,577)$ 75% 19,809,058$ Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Total state shared revenues are performing in line with expectations with the exception of Smart & Safe revenues. Smart & Safe distributions occur twice per year, and the first payment was lower than the prior year. Although statewide cannabis sales tax collections are up compared to last year, distributions to cities and towns may decline because revenues are first applied to cover state administrative and enforcement costs before being allocated to cities and towns. Overall, Local sales tax revenues are forecasted to fall short of budget expectations by $4.0 million or 12.5%. Collections decreased 6.8% compared to the same period last year, primarily reflecting reduced activity in the construction and hotel sectors, including project delays at the Marketplace hotel and Vistoso Golf Club apartment developments. Construction-related revenues have begun to recover in recent months from the Oro Valley Marketplace apartment project, with this trend expected to continue through year-end. Restaurant and bar collections came in 1.9% below prior year through March, falling short of growth assumptions and resulting in a year-end estimate approximately 6.2% below budget. Retail collections are projected to finish slightly below budget at 0.2%, while remote seller collections are expected to exceed budget by 12.3%. Please refer to Appendix 4 for a detailed breakdown of local sales tax collections. FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Year End Estimate $7.1 $5.6 $2.0 $0.1 $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 State Income Tax State Sales Tax Vehicle License Tax Smart and Safe Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget $1.7 $3.1 $8.4 $2.0 $1.5 $2.4 $1.3 $0.3 $0 $2 $4 $6 $8 $10 $12 $14 Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget 75% through the fiscal year (Period 9 of 12)Page 2 of 14 General Fund Financial Status Fiscal Year to Date: March 2026 Licenses & Permits Revenue Amount Percent Business Licenses & Permits 210,093$ 189,456$ 255,000$ (65,544)$ 74% 229,304$ Residential Building Permits 771,298 1,223,045 908,066 314,979 135% 1,400,000 Commercial Building Permits 226,678 328,095 750,077 (421,982) 44% 452,101 Other Building Permits and Fees 160,736 232,194 202,980 29,214 114% 261,032 Licenses & Permits Total 1,368,805$ 1,972,790$ 2,116,123$ (143,333)$ 93% 2,342,437$ Grants Revenue Amount Percent Federal grants 468,073$ 420,458$ 375,000$ 45,458$ 112% 561,368$ State Grants 53,690 142,542 91,851 50,691 155% 170,000 Grants Total 521,762$ 563,000$ 466,851$ 96,149$ 121% 731,368$ FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget A total of 84 Single Family Residential (SFR) permits have been issued through March (107 budgeted for the year). Licenses and permits revenue is projected to exceed budget by 10.7%, driven by stronger building permit activity, partially offset by a reduction in the business license and permit forecast due to FY25 actuals coming in below estimates. Year End Estimate Grant revenues continue to perform better than expected. A significant portion of budgeted grants are allocated to the Police Department, and these can fluctuate based on factors such as officer scheduling, overtime, and the timing of reimbursements and awards. Year-end estimates have been adjusted to reflect current program activity. $0.2 $1.2 $0.3 $0.2 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 Business Licenses & Permits Residential Building Permits Commercial Building Permits Other Building Permits and Fees Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget $0.4 $0.1 $0.0 $0.1 $0.2 $0.3 $0.4 $0.5 Federal grants State Grants Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget 75% through the fiscal year (Period 9 of 12)Page 3 of 14 General Fund Financial Status Fiscal Year to Date: March 2026 Intergovernmental Revenue Amount Percent School Resource Officers 131,488$ 182,529$ 409,502$ (226,973)$ 45% 390,000$ RTA Reimbursements 1,311,508 1,220,663 1,904,860 (684,197) 64% 1,904,860 PC Library District Reimburse 6,872 2,966 6,000 (3,034) 49% 6,000 Intergovernmental Total 1,449,868$ 1,406,158$ 2,320,362$ (914,204)$ 61% 2,300,860$ Charges for Service Revenue Amount Percent Enterprise Funds Cost Allocation 1,276,319$ 1,231,010$ 1,641,347$ (410,337)$ 75% 1,641,347$ Recreation Fees 691,332 731,392 978,950 (247,558) 75% 1,074,928 Development Fees 65,668 118,091 90,110 27,981 131% 140,150 Court Fees 85,225 94,074 115,000 (20,926) 82% 120,000 Other 155,796 171,353 224,816 (53,463) 76% 215,829 Charges for Service Total 2,274,341$ 2,345,920$ 3,050,223$ (704,303)$ 77% 3,192,254$ FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2025/26 Budget Actual Vs. Budget Year End Estimate Year End Estimate Intergovernmental revenues are performing in line with expectations. These revenues are reimbursement-based and typically lag between the time services are provided and when funds are received. The year-end estimate for school resource officer revenues was reduced by $19,500, reflecting current activity trending below budget. The variance may reflect scheduling, or reimbursement timing and will continue to be monitored. FY 2024/25 Actuals FY 2025/26 Actuals Charges for services are performing slightly above expectations. Cost allocation charges to the Town’s enterprise funds for shared services, along with Parks & Recreation fees, represent the majority of this revenue category. The enterprise fund allocations are budgeted amounts distributed evenly across all 12 months. The year-over-year decrease is mainly due to one- time water system monitoring upgrades in the prior year that were funded through the IT budget and charged to the Water Utility. Recreation fee revenues are projected to exceed budget by 9.8%, with the year- end estimate revised upward by approximately $65,000, driven largely by swimming pool user fees along with field and court rentals and miscellaneous fees. Development fee revenues were revised upward by $20,000, reflecting stronger than expected zoning and subdivision fees $0.2 $1.2 $0.0 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 School Resource Officers RTA Reimbursements PC Library District Reimburse Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget $1.2 $0.7 $0.1 $0.1 $0.2 $0.0 $0.5 $1.0 $1.5 $2.0 Enterprise Funds Cost Allocation Recreation Fees Development Fees Court Fees Other Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget 75% through the fiscal year (Period 9 of 12)Page 4 of 14 General Fund Financial Status Fiscal Year to Date: March 2026 Other Revenue Amount Percent Fines 51,705$ 40,005$ 68,680$ (28,675)$ 58% 50,000$ Interest Earnings 628,330 508,708 637,500 (128,792) 80% 660,000 Miscellaneous 629,349 135,335 210,300 (74,965) 64% 212,905 Other Revenue Total 1,309,383$ 684,049$ 916,480$ (232,431)$ 75% 922,905$ FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Year End Estimate Other revenues are projected to finish above budget overall, supported by stronger-than-anticipated interest earnings, insurance recoveries, and asset sales. The decline in miscellaneous revenue compared to the prior year reflects a one-time AMRRP insurance rebate in FY 2024/25 that did not recur. $0.0 $0.5 $0.1 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 Fines Interest Earnings Miscellaneous Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget 75% through the fiscal year (Period 9 of 12)Page 5 of 14 General Fund Financial Status Fiscal Year to Date: March 2026 Expenditures by Department Amount Percent Clerk 382,213$ 313,900$ 446,275$ 132,375$ 70% 436,887$ Community & Econ. Dev. 2,605,494 2,571,547 4,275,011 1,703,464 60% 4,009,588 Council 178,797 168,309 216,163 47,854 78% 203,163 Finance 635,515 657,057 870,300 213,243 75%884,808 Non-Departmental 2,234,999 2,248,474 3,052,282 803,808 74% 3,052,282 Human Resources 486,009 517,149 744,887 227,738 69% 709,060 Information Technology 4,804,050 4,203,834 5,925,996 1,722,162 71% 5,777,034 Legal 818,885 658,725 1,193,587 534,862 55% 921,432 Town Manager 1,202,570 1,223,435 1,812,726 589,291 67% 1,749,402 Parks & Recreation 3,327,898 3,248,610 5,230,510 1,981,900 62% 4,924,785 Police 14,669,263 15,097,391 21,333,810 6,236,419 71% 20,695,667 Public Works 4,387,756 4,413,503 6,702,762 2,289,259 66% 6,392,019 Town Court 743,701 766,000 1,181,757 415,757 65% 1,126,102 Total Department Expenditures 36,477,150$ 36,087,935$ 52,986,066$ 16,898,131$ 68% 50,882,230$ Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget $0.3 $2.6 $0.2 $0.7 $2.2 $0.5 $4.2 $0.7 $1.2 $3.2 $15.1 $4.4 $0.8 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Overview: Departments are spending within budget limits through March. Please note that Council and Information Technology typically incur higher upfront costs early in the fiscal year. Community & Economic Development: Year-to-date personnel expenditures are below budget expectations due to turnover in two Building Inspector positions, the Economic Development Program Manager, and a vacancy in the Code Compliance Specialist position. Year-to-date operating expenditures are also below budget, primarily due to timing within the in-house Economic Development and Tourism program, where several planned initiatives have not yet begun. Finance: Personnel costs are projected to exceed budget by approximately $18,000 due to a three-month overlap in the accounting specialist position, allowing time to train the new employee who replaced a retiring staff member. Legal: Personnel costs are trending below budget expectations and are projected to finish approximately 25% under budget, primarily due to vacancies in the Town Attorney and Chief Civil Deputy Attorney positions. Police: The year-over-year increase is mainly due to an additional quarterly pension contribution to the Public Safety Personnel Retirement System (PSPRS) that was recorded at the beginning of FY26 but applied to the prior fiscal year (FY25), along with increased personnel costs from wage adjustments outlined in the most recent labor agreement. Three of four budgeted additional contributions have been made; no further excess contributions are planned as the pension plan has exceeded 100% funded status. The department is forecasted to finish within budget due to this reduction in excess pension contributions, vacancy savings, and benefit election differences from budget assumptions. Public Works: Public Works personnel costs are projected to come in under budget by approximately $61,000, primarily due to vacancies in heavy equipment operator positions, partially offset by higher Transit personnel costs driven by increased ridership demand requiring additional driver hours. Transit costs are reimbursed to the Town by the Regional Transportation Authority (RTA). Operations and maintenance costs are also projected to come in under budget by $250,000 or 10%, reflecting savings in fuel and vehicle repair and maintenance. Fuel savings are primarily in Transit operations and persist despite sharply rising prices in March. 75% through the fiscal year (Period 9 of 12)Page 6 of 14 Highway Fund Financial Status Fiscal Year to Date: March 2026 Sources ` Amount Percent Licenses & Permits 27,315$ 40,194$ 30,000$ 10,194$ 134% 50,000$ Highway User Revenue 3,120,298 3,138,047 4,456,367 (1,318,320) 70% 4,290,852 Interest Earnings 79,614 104,838 99,000 5,838 106% 140,000 Miscellaneous 3,017 48,125 2,500 45,625 1925% 50,687 Transfers In 3,000,000 1,500,000 2,000,000 (500,000) 75% 2,000,000 Total Sources 6,230,244$ 4,831,204$ 6,587,867$ (1,756,664)$ 73% 6,531,539$ Expenditures Amount Percent Personnel 961,342$ 984,863$ 1,348,218$ 363,355$ 73% 1,349,962$ O&M 764,699 780,715 1,433,935 653,220 54% 1,376,757 Capital Outlays 3,408,214 2,090,619 4,674,000 2,583,381 45% 3,215,010 Total Expenditures 5,134,255$ 3,856,198$ 7,456,153$ 3,599,955$ 52% 5,941,730$ Change in Fund Balance Total Sources 6,230,244$ 4,831,204$ 6,587,867$ 6,531,539$ Total Expenditures (5,134,255) (3,856,198) (7,456,153) (5,941,730) Change in Fund Balance 1,095,989$ 975,006$ (868,286)$ 589,809$ Beginning Fund Balance 1,598,787$ 1,598,787$ Estimated Ending Fund Balance 2,573,793$ 2,188,596$ Year End Estimate Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Highway Fund revenues and expenditures are performing generally in line with expectations through March. Due to capital projects not anticipated to be completed this year, the fund balance is expected to end about $1.4M greater than budgeted. Revenues: Highway User Revenue (HURF) is currently coming in slightly under budget projections. In contrast, interest earnings and revenue from licenses and permits are outperforming budget estimates. Miscellaneous revenues are above budget, driven by insurance reimbursements and proceeds from asset sales. The scheduled $2 million transfer from the Capital Fund is allocated to support road improvement projects and is recognized in four equal quarterly installments over the course of the fiscal year. Expenditures: Personnel expenditures are projected to exceed budget by approximately 0.1%, primarily due to pay range adjustments in the adopted pay plan that were not included in the original personnel forecast. Operations and maintenance costs are projected to come in under budget by approximately $57,000 or 4%, primarily due to lower than anticipated demand for street maintenance and waste disposal services. Budgeted capital outlays include the Town’s annual pavement preservation program and several capital improvement projects. Capital Outlay is projected to come in approximately $1.4 million under budget due to several projects. The Traffic Signal at Tangerine Rd / Mussette Dr project ($676k) will carry over into next year, as will the Operations Laydown Yard (Electricity) ($33k). The Lambert Lane MUP project ($350k) will not be completed this year; with the passage of RTA Next which include improvements to Lambert Lane, the project is being reassessed. Additionally, $350k of the $400k budgeted for Shannon Road Improvements is projected to remain unspent, as the project will not be completed this year. With RTA Next including a larger widening project for Shannon Road, these interim improvements are no longer needed. 75% through the fiscal year (Period 9 of 12)Page 7 of 14 Community Center Fund Financial Status Fiscal Year to Date: March 2026 Revenues Amount Percent Local Sales Tax 2,889,104$ 593,099$ -$ 593,099$ na 593,099$ Contracted Operating Revenues 3,946,203 5,121,564 5,625,078 (503,514) 91% 6,604,000 Town Operating Revenues 1,028,132 1,086,790 1,534,043 (447,253) 71% 1,675,125 Other Revenues 167,323 44,334 60,172 (15,838) 74% 86,452 Total Revenues 8,030,763$ 6,845,787$ 7,219,293$ (373,506)$ 95% 8,958,676$ Uses Amount Percent Contracted Operating Expenditures 3,680,731$ 4,276,219$ 5,728,637$ 1,452,418$ 75% 5,989,482$ Town Operating Expenditures 1,618,475 1,631,608 2,427,461 795,853 67% 2,325,009 Capital Outlay 951,988 1,028,756 2,408,700 1,379,944 43% 2,360,700 Transfers Out 1,717,149 172,968 172,968 - 100% 172,968 Total Uses 7,968,343$ 7,109,551$ 10,737,766$ 3,628,215$ 66% 10,848,159$ Change in Fund Balance Total Revenues 8,030,763$ 6,845,787$ 7,219,293$ 8,958,676$ Total Uses (7,968,343) (7,109,551) (10,737,766) (10,848,159) Change in Fund Balance 62,420$ (263,764)$ (3,518,473)$ (1,889,483)$ Beginning Fund Balance 2,921,900$ 2,921,900$ Estimated Ending Fund Balance 2,658,136$ 1,032,417$ Supplemental: Operating Analysis Amount Percent Golf Contractor Operating Revenues $ 3,946,203 $ 5,121,564 $ 5,625,078 (503,514)$ 91% $ 6,604,000 Operating Expenditures 3,680,731 4,276,219 5,728,637 (1,452,418) 75% 5,989,482 Net Operating Income/(Loss) 265,473$ 845,345$ (103,559)$ 948,904$ 614,518$ Town Operations Operating Revenues $ 1,028,132 $ 1,086,790 $ 1,534,043 (447,253)$ 71% $ 1,675,125 Operating Expenditures 1,618,475 1,631,608 2,427,461 (795,853) 67% 2,325,009 Net Operating Income/(Loss) (590,343)$ (544,818)$ (893,418)$ 348,600$ (649,884)$ Year End Estimate Actual Vs. Budget Year End Estimate The following presents operating revenues and expenditures for the Golf Contractor and Town Operations separately. This section excludes Local Sales Tax, Capital Outlay, and Transfers Out, which are reported at the fund level above. FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2025/26 Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Year End Estimate Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals 75% through the fiscal year (Period 9 of 12)Page 8 of 14 Community Center Fund Financial Status Fiscal Year to Date: March 2026 Local Sales Tax Revenue Amount Percent Retail 1,745,260$ 367,836$ -$ 367,836$ - 367,836$ Remote Seller 350,873 79,650 - 79,650$ - 79,650 Restaurant & Bar 514,892 101,493 - 101,493 - 101,493 Other 278,080 44,120 - 44,120 - 44,120 Local Sales Tax Total 2,889,104$ 593,099$ -$ 593,099$ - 593,099$ Contracted Operating Revenue Amount Percent Golf Revenue, Trail & Cart Fees 1,982,019$ 2,709,759$ 2,818,625$ (108,866)$ 96% 3,424,000$ Member Dues 1,162,537 1,442,331 1,590,560 (148,229) 91%1,800,000 Food & Beverage (Overlook) 536,308 675,841 814,633 (138,792) 83%924,000 Merchandise & Other 265,339 293,632 401,260 (107,628) 73% 456,000 Contracted Revenue Total 3,946,203$ 5,121,564$ 5,625,078$ (503,514)$ 91% 6,604,000$ Actual Vs. Budget Year End Estimate Year End Estimate Actual Vs. Budget FY 2025/26 Budget FY 2025/26 Budget Note: Estimated sales tax collections on golf operations for FY 2025/26 is $174,562. On August 13, 2025, the Town Council adopted Ordinance (O)25-04, removing the spending restrictions on the half-cent sales tax and redirecting those revenues to the General Fund, effective 30 days later in September. Accordingly, the FY 2025/26 actual revenues shown here reflect only the first two months of the fiscal year, during which the restriction was still in place. Any operating shortfalls within this fund will be covered by transfers from the General Fund at year-end. For detailed information on total local sales tax collections, please refer to Appendix 4. FY 2024/25 Actuals FY 2025/26 Actuals FY 2024/25 Actuals FY 2025/26 Actuals Contracted golf revenues are forecasted to exceed budget by approximately $979,000, or 17%, driven by strong membership numbers and increased public play. Through March, 86,401 rounds have been played, which is essentially in line with the prior year, reflecting a 1.6% decrease, and exceeding budget expectations by 9.9%. Please refer to Appendix 3 for or a more in-depth analysis of golf revenues, expenses, and historical comparisons $2.7 $1.4 $0.7 $0.3 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 Golf Revenue, Trail & Cart Fees Member Dues Food & Beverage (Overlook) Merchandise & Other Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget $0.4 $0.1 $0.1 $0.0 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 Retail Remote Seller Restaurant & Bar Other Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget 75% through the fiscal year (Period 9 of 12)Page 9 of 14 Community Center Fund Financial Status Fiscal Year to Date: March 2026 Town Operating Revenue Amount Percent Daily Drop-Ins 54,625$ 47,701$ 75,625$ (27,924)$ 63% 66,349$ Member Dues 767,272 841,679 990,420 (148,741) 85% 1,105,674 Recreation Programs 127,899 109,035 382,500 (273,465) 29% 394,963 Facility Rental Income 78,336 88,376 85,498 2,878 103% 108,138 Town Operating Revenue Total 1,028,132$ 1,086,790$ 1,534,043$ (447,253)$ 71% 1,675,125$ Other Revenue Amount Percent Interest Income 9,157$ 42,031$ 22,500$ 19,531$ 187% 52,000 HOA Contributions 155,750 1,950 34,050 (32,100) 6% 34,050 Miscellaneous 2,417 353 3,622 (3,269) 10% 402 Other Revenue Total 167,323$ 44,334$ 60,172$ (15,838)$ 74% 86,452$ Year End Estimate The FY 2025/26 HOA contribution budget pertains to the HOAs associated with the 9-hole Pusch Ridge course. FY 2025 was the final year of agreed upon annual contributions to golf from HOAs on the 36-hole course. Due to stronger-than-anticipated interest income, the year-end estimate has been revised upward to $52,000. FY 2025/26 Budget Actual Vs. Budget FY 2025/26 Budget Actual Vs. Budget Year End Estimate Year-end estimates incorporate Town Council-approved rate increases effective January 1, 2026, reflecting lower anticipated daily drop-in and recreation program revenues more than offset by higher member dues and facility rental income, with overall Town operating revenues projected to finish 9.2% above budget. FY 2025/26 Actuals FY 2024/25 Actuals FY 2025/26 Actuals FY 2024/25 Actuals $0.0 $0.8 $0.1 $0.1 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 Daily Drop-Ins Member Dues Recreation Programs Facility Rental Income Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget $0.0 $0.0 $0.0 $0.0 $0.1 $0.2 Interest Income HOA Contributions Miscellaneous Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget 75% through the fiscal year (Period 9 of 12)Page 10 of 14 Community Center Fund Financial Status Fiscal Year to Date: March 2026 Contracted Operating Expenditures Amount Percent Personnel 1,245,113$ 1,556,962$ 1,992,268$ 435,306$ 78% 2,063,000$ Food & Beverage (Overlook) 476,536 589,722 751,271 161,549 78% 837,000 Operations & Maintenance 1,850,626 1,991,152 2,768,538 777,386 72% 2,849,678 Equipment Leases 108,455 138,383 216,560 78,177 64% 239,804 Contracted Expenditures Total 3,680,731$ 4,276,219$ 5,728,637$ 1,452,418$ 75% 5,989,482$ Town Operating Expenditures Amount Percent Personnel 928,223$ 861,315$ 1,303,239$ 441,924 66% 1,277,010$ Operations & Maintenance 690,252 770,293 1,124,222 353,929 69% 1,047,999 Town Operating Expenditures Total 1,618,475$ 1,631,608$ 2,427,461$ 795,853$ 67% 2,325,009$ FY26 Revised Budget Artificial Turf Installation at Community Center Entrance 150,000 Community Center Exterior Stucco Repair and Painting 190,500 Community Center Parking Lot Resurface 950,000 CRC ADA Exterior Restroom 325,000 Greenmaster Mower Replacement x2 (36-Hole)120,000 South Pump Station (36 Hole) 510,000 Pusch Ridge Tennis Bleachers and ADA Accessibility 163,200 2,408,700 Year End Estimate Contracted golf operating expenditures rose 2% year-over-year, driven mainly by increased labor, maintenance supplies, and lease costs, partially offset by reductions in water expenses. Expenses are projected to exceed the budget by approximately $261,000, or 4.6%, driven by higher merchandise sales costs, increased labor expenses, and additional equipment and grounds maintenance costs. List of FY26 Capital Projects: Year End Estimate Town operating expenditures are trending under budget, primarily due to contracted instructors. Operations and maintenance costs, while higher at the beginning of the fiscal year due to credit card merchant fees, have since moderated and are also projected to come in under budget. FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget $0.9 $0.8 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 Personnel Operations & Maintenance Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget $1.6 $0.6 $2.0 $0.1 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 Personnel Food & Beverage (Overlook) Operations & Maintenance Equipment Leases Mi l l i o n s FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget 75% through the fiscal year (Period 9 of 12)Page 11 of 14 Capital Fund Financial Status Fiscal Year to Date: March 2026 Sources ` Amount Percent Vehicle Reserves 700,117$ 771,694$ 1,028,926$ (257,232)$ 75% Interest Earnings 472,593 423,576 470,000 (46,424) 90% Miscellaneous 97,626 119,169 40,000 79,169 298% Transfers In from General Fund 5,354,840 5,750,000 5,000,000 750,000 115% Total Sources 6,625,177$ 7,064,440$ 6,538,926$ 525,514$ 108% Uses Amount Percent O&M 128,239$ 71,694$ -$ (71,694)$ na Capital Outlays 3,535,754 6,839,283 12,329,372 5,490,089 55% Transfers Out 3,000,000 1,559,109 2,234,200 675,091 70% Total Uses 6,663,993$ 8,470,085$ 14,563,572$ 6,093,487$ 58% Change in Fund Balance Total Sources 6,625,177$ 7,064,440$ 6,538,926$ Total Uses (6,663,993) (8,470,085) (14,563,572) Change in Fund Balance (38,816)$ (1,405,646)$ (8,024,646)$ Beginning Fund Balance 16,847,866$ Estimated Ending Fund Balance 8,823,220$ FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Sources: Quarterly transfers in from the General Fund support capital improvement projects as budgeted. A one-time additional transfer of $2 million resulted from Town Council's direction to reduce the General Fund reserve from 30% to 25%. In addition, an annual reserve for vehicle replacement is established based on the purchase price and expected lifespan of Town-owned vehicles. This reserve is allocated evenly over twelve months and charged to the General Fund each month. Uses: O&M costs reflect building repair and maintence for the newly purchased Police Headquarters building as well as the purchase of smaller, non- capitalized equipment used to outfit new Police vehicles. Capital outlays through March consist primarily of the Council-directed purchase of a building for the planned new Police Headquarters (approximately $3.8 million), along with related urgent building maintenance and inspection costs, the finalization of the Town Court expansion project, the VTNP Pond Restoration project, and planned Police vehicle replacements. The budget also includes $2 million in transfers to the Highway Fund for capital improvement projects, recorded evenly across four quarters. An additional $234,200 is budgeted for transfer to the Grants Fund to cover the Town’s 20% match for transit vehicles funded primarily through federal grants. 75% through the fiscal year (Period 9 of 12)Page 12 of 14 Water Utility Fund Financial Status Fiscal Year to Date: March 2026 Sources ` Amount Percent Water Sales 13,498,079$ 14,040,947$ 18,511,000$ (4,470,053)$ 76% 18,858,905$ Charges For Services 2,511,729 2,505,395 3,457,000 (951,605) 72% 3,493,050 Grants - 572,221 - 572,221 - 841,639 Interest Earnings 244,101 287,136 100,000 187,136 287% 400,000 Miscellaneous 53,099 19,682 20,000 (318) 98% 22,388 Other Financing Sources - 4,021,062 - 4,021,062 - 4,807,200 Total Sources 16,307,008$ 21,446,442$ 22,088,000$ (641,558)$ 97% 28,423,182$ Uses Amount Percent Personnel 2,625,845$ 2,562,659$ 3,985,725$ 1,423,066$ 64% 3,783,194$ O&M 7,634,931 7,581,560 11,552,175 3,970,615 66% 10,886,670 Capital Outlays 974,265 1,462,631 2,327,639 865,008 63% 2,320,896 Debt Service 3,254,278 3,695,379 3,890,977 195,598 95% 3,890,977 Transfers Out 4,028,458 5,510,327 9,883,004 4,372,677 56% 9,883,004 Total Uses 18,517,778$ 20,812,556$ 31,639,520$ 10,826,964$ 66% 30,764,740$ Note: Excludes non-cash outlays for depreciation & amortization Change in Fund Balance Total Sources 16,307,008$ 21,446,442$ 22,088,000$ 28,423,182$ Total Uses (18,517,778) (20,812,556) (31,639,520) (30,764,740) Change in Fund Balance (2,210,769)$ 633,886$ (9,551,520)$ (2,341,558)$ Beginning Fund Balance 9,058,512$ 9,058,512$ Estimated Ending Fund Balance 9,692,398$ 6,716,954$ Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Year End Estimate Revenues and Other Financing Sources: Water sales are trending above budget, primarily driven by higher than anticipated irrigation and commercial water sales. Charges for services are expected to exceed budget, driven by groundwater preservation fees which are assessed based on water usage. Interest earnings are projected to exceed budget by $300,000, reflecting returns on invested bond and loan proceeds. Miscellaneous revenues are projected to exceed budget expectations due to insurance recoveries. The Water Utility draws on a 2025 WIFA loan agreement that functions as a line of credit. Both the loan draws and the associated WIFA grant are recognized in grants revenue and other financing sources as funds are received. Uses: Personnel: Expenditures are trending below budget due to vacancies in several positions, including two Water Utility Operators, a Water Operations Supervisor, and a Water Control Systems Supervisor. Operations & Maintenance: Operations and maintenance costs are projected to come in under budget by approximately $666,000, or 6%, with savings spread across numerous accounts. The largest contributors are lower than anticipated power costs for pumping and CAP water delivery charges. Equipment repair and maintenance costs across wells, boosters, reservoirs, telemetry, and other infrastructure are collectively trending below budget, as routine maintenance demand has been lower than anticipated. Additional savings in testing, non-capitalized equipment, chemicals, and gasoline contribute to the overall favorable variance. These are partially offset by higher than expected costs in mains repair and maintenance and software maintenance and licensing. Debt Service: The full annual principal payment is recorded at the beginning of the fiscal year, while interest payments occur semiannually in January and June. A detailed schedule of outstanding debt issuances is provided in Appendix 6. Transfers Out: Transfers are primarily to the Water Resource Impact Fee Fund to support NWRRDS capital projects and represent 40% of groundwater preservation fee revenues. This transfer is recorded at year-end and may vary based on actual revenue collections. A smaller transfer of $3,004 was made to the Debt Service Fund for debt repayment. 75% through the fiscal year (Period 9 of 12)Page 13 of 14 Stormwater Utility Fund Financial Status Fiscal Year to Date: March 2026 Revenues ` Amount Percent Charges For Services 1,146,890$ 1,155,190$ 1,527,000$ (371,810)$ 76% 1,543,127$ Grants - - 239,200 (239,200) - 210,991 Interest Earnings 33,443 34,659 20,000 14,659 173% 48,000 Total Revenues 1,180,333$ 1,189,849$ 1,786,200$ (596,351)$ 67% 1,802,118$ Expenses Amount Percent Personnel 672,766$ 680,879$ 990,258$ 309,379$ 69% 956,665$ O&M 221,356 239,989 424,755 184,766 57% 356,886 Capital Outlays - 6,855 738,000 731,145 1% 81,855 Total Expenses 894,122$ 927,722$ 2,153,013$ 1,225,291$ 43% 1,395,406$ Note: Excludes non-cash outlays for depreciation Change in Fund Balance Total Revenues 1,180,333$ 1,189,849$ 1,786,200$ 1,802,118$ Total Expenses (894,122) (927,722) (2,153,013) (1,395,406) Change in Fund Balance 286,211$ 262,127$ (366,813)$ 406,712$ Beginning Fund Balance 1,447,723$ 1,447,723$ Estimated Ending Fund Balance 1,709,850$ 1,854,436$ Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget Year End Estimate FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Actual Vs. Budget FY 2024/25 Actuals FY 2025/26 Actuals FY 2025/26 Budget Year End Estimate Revenues: Charges for service are trending slightly higher than budget (1.1%). With respect to grant revenues, the federal grant supporting the Sierra Wash at Glover Road Infrastructure Repair and Rehabilitation capital project is not expected to be received within the current fiscal year. Offsetting this, grant revenues for the Sierra Wash at Via Mandarina Drainage Improvements project are projected to be received this year, as the project was completed in FY26 despite having been originally budgeted in FY25. Interest earnings continue to outperform projections, coming in $28,000, or 140%, above budget. Expenses: Personnel: Savings are expected due to the Senior Engineering Associate position being vacant for 1.5 months and filled at a lower rate than budgeted. Operations & Maintenance: Savings are anticipated in outside professional service, gasoline, field supplies and vehicle repair and maintenance. Capital Outlays: Budgeted capital expenditures include general infrastructure maintenance and three major capital improvement projects: - Sierra Wash at Glover Road Infrastructure Repair and Rehabilitation ($318,000) - Sierra Wash at Via Mandarina Drainage Improvements ($50,000) - Oro Valley Drive Drainage and Pavement Improvements ($300,000) The Oro Valley Drive Drainage and Pavement Improvements project ($300,000) was taken over by Pima County and has been removed from the year-end estimate. Sierra Wash at Glover Road will be delayed into FY27. 75% through the fiscal year (Period 9 of 12)Page 14 of 14 APPENDIX 1 El Conquistador Golf Mgmt., LLC Report Date: 3/31/2026 El Conquistador Golf Course Mar - 2026 Budget Mar - 2025 Bud Var PY Var Mar - 2026 Budget Mar - 2025 Bud Var PY Var Rounds Public 8,075 7,800 8,705 275 (630) 46,049 39,050 44,328 6,999 1,721 Member 5,461 4,425 5,015 1,036 446 36,598 33,390 36,479 3,208 119 Tournament 946 975 1,372 (29) (426) 3,754 6,180 7,004 (2,426) (3,250) Total Rounds 14,482 13,200 15,092 1,282 (610)86,401 78,620 87,811 7,781 (1,410) Membership Fees 144,792.63 142,560.00 132,767.99 2,232.63 12,024.64 1,442,331.01 1,223,560.00 1,295,305.07 218,771.01 147,025.94 Total Membership Revenue 144,792.63 142,560.00 132,767.99 2,232.63 12,024.64 1,442,331.01 1,223,560.00 1,295,305.07 218,771.01 147,025.94 Sales - Green Fees 436,388.48 352,000.00 420,236.57 84,388.48 16,151.91 2,120,065.66 1,585,750.00 1,876,491.75 534,315.66 243,573.91 Sales - Tournament 42,407.50 49,000.00 56,381.67 (6,592.50) (13,974.17)156,405.28 263,500.00 289,189.36 (107,094.72) (132,784.08) Sales - Member Rounds 577.00 350.00 584.90 227.00 (7.90)5,456.00 2,650.00 3,509.65 2,806.00 1,946.35 Lessons & Clinics 805.00 3,500.00 1,625.00 (2,695.00) (820.00)8,510.92 23,750.00 16,305.00 (15,239.08) (7,794.08) Range, Rental & Other Golf Related 15,789.15 13,175.00 15,248.96 2,614.15 540.19 106,226.85 78,475.00 103,226.36 27,751.85 3,000.49 Cart Fees 36,844.08 28,350.00 34,225.46 8,494.08 2,618.62 313,094.66 259,050.00 288,135.30 54,044.66 24,959.36 Golf Fees Revenue 532,811.21 446,375.00 528,302.56 86,436.21 4,508.65 2,709,759.37 2,213,175.00 2,576,857.42 496,584.37 132,901.95 Sales - Soft Goods 30,151.23 29,350.00 29,951.19 801.23 200.04 133,963.10 135,435.00 146,369.43 (1,471.90) (12,406.33) Sales - Hard Goods 17,832.63 14,800.00 16,505.47 3,032.63 1,327.16 114,293.85 85,600.00 101,633.67 28,693.85 12,660.18 Merchandise Revenue 47,983.86 44,150.00 46,456.66 3,833.86 1,527.20 248,256.95 221,035.00 248,003.10 27,221.95 253.85 Other Revenue 3,795.00 500.00 (1,965.56)3,295.00 5,760.56 19,145.22 15,500.00 (4,708.84)3,645.22 23,854.06 Other Revenue 3,795.00 500.00 (1,965.56)3,295.00 5,760.56 19,145.22 15,500.00 (4,708.84)3,645.22 23,854.06 Sales - Food 62,084.07 1,125.00 55,115.29 60,959.07 6,968.78 334,200.18 4,825.00 326,652.21 329,375.18 7,547.97 Sales - Beer 33,194.19 3,500.00 35,411.62 29,694.19 (2,217.43)205,281.10 14,700.00 205,224.81 190,581.10 56.29 Sales - Wine 4,004.90 0.00 3,304.48 4,004.90 700.42 21,865.30 0.00 17,262.70 21,865.30 4,602.60 Sales - Liquor 12,375.69 375.00 12,148.14 12,000.69 227.55 76,417.78 1,658.00 75,685.50 74,759.78 732.28 Group Service Charges 5,631.22 0.00 2,975.04 5,631.22 2,656.18 64,306.96 0.00 20,437.55 64,306.96 43,869.41 Food & Beverage Revenue 117,290.07 5,000.00 108,954.57 112,290.07 8,335.50 702,071.32 21,183.00 645,262.77 680,888.32 56,808.55 TOTAL REVENUE 846,672.77 638,585.00 814,516.22 208,087.77 32,156.55 5,121,563.87 3,694,453.00 4,760,719.52 1,427,110.87 360,844.35 Expenses COS - Merchandise 30,727.62 30,211.00 40,972.75 (516.62)10,245.13 183,298.37 154,529.75 186,457.90 (28,768.62)3,159.53 COS - Food 24,531.94 337.50 20,685.00 (24,194.44) (3,846.94)129,335.16 1,447.50 122,970.78 (127,887.66) (6,364.38) COS - Beer 10,054.92 1,050.00 10,274.02 (9,004.92)219.10 62,626.62 4,410.00 59,811.12 (58,216.62) (2,815.50) COS - Wine 2,526.57 0.00 1,018.52 (2,526.57) (1,508.05)7,049.86 0.00 5,511.25 (7,049.86) (1,538.61) COS - Liquor 2,637.15 112.50 3,880.96 (2,524.65)1,243.81 20,497.41 497.40 20,181.64 (20,000.01) (315.77) Cost of Sales 70,478.20 31,711.00 76,831.25 (38,767.20)6,353.05 402,807.42 160,884.65 394,932.69 (241,922.77) (7,874.73) Gross Margin 776,194.57 606,874.00 737,684.97 169,320.57 38,509.60 4,718,756.45 3,533,568.35 4,365,786.83 1,185,188.10 352,969.62 Month-to-Date Year-to-Date 75% through the fiscal year (Period 9 of 12)Page 1 of 3 APPENDIX 1 El Conquistador Golf Mgmt., LLC Report Date: 3/31/2026 El Conquistador Golf Course Mar - 2026 Budget Mar - 2025 Bud Var PY Var Mar - 2026 Budget Mar - 2025 Bud Var PY Var Month-to-Date Year-to-Date Salaries & Wages 217,715.66 150,089.00 189,786.07 (67,626.66) (27,929.59)1,608,266.12 1,234,651.00 1,470,844.30 (373,615.12) (137,421.82) Payroll Taxes 17,509.57 12,750.00 15,940.84 (4,759.57) (1,568.73)123,067.19 101,900.00 119,762.70 (21,167.19) (3,304.49) Workers Comp 4,252.93 2,500.00 3,403.47 (1,752.93) (849.46)34,043.63 22,500.00 25,849.91 (11,543.63) (8,193.72) Employee Benefits 14,577.16 7,000.00 12,055.28 (7,577.16) (2,521.88)98,552.77 93,500.00 97,135.65 (5,052.77) (1,417.12) Other Employee Benefits 2,703.99 1,300.00 1,631.96 (1,403.99) (1,072.03)25,432.22 11,700.00 13,325.39 (13,732.22) (12,106.83) Total Payroll & Benefits 256,759.31 173,639.00 222,817.62 (83,120.31) (33,941.69)1,889,361.93 1,464,251.00 1,726,917.95 (425,110.93) (162,443.98) Meals & Entertainment 393.03 475.00 893.96 81.97 500.93 4,220.40 5,200.00 7,182.84 979.60 2,962.44 Travel 732.59 225.00 0.00 (507.59) (732.59)4,429.69 4,575.00 4,819.57 145.31 389.88 Other Employee Related 0.00 0.00 0.00 0.00 0.00 521.34 0.00 769.89 (521.34)248.55 Total Employee Related 1,125.62 700.00 893.96 (425.62) (231.66)9,171.43 9,775.00 12,772.30 603.57 3,600.87 R&M - Equipment 9,121.03 11,500.00 11,507.30 2,378.97 2,386.27 128,550.93 112,800.00 110,565.55 (15,750.93) (17,985.38) R&M - Building 18.35 0.00 227.18 (18.35)208.83 9,761.93 22,800.00 14,951.86 13,038.07 5,189.93 R&M - Golf Course & Tennis Courts 6,384.75 1,000.00 1,812.18 (5,384.75) (4,572.57)20,699.85 26,500.00 35,069.68 5,800.15 14,369.83 R&M - Other 413.07 400.00 0.00 (13.07) (413.07)7,697.63 3,600.00 2,807.28 (4,097.63) (4,890.35) Sod 0.00 0.00 0.00 0.00 0.00 0.00 1,500.00 1,067.72 1,500.00 1,067.72 Sand & Gravel 0.00 0.00 3,067.65 0.00 3,067.65 14,989.71 13,500.00 21,103.25 (1,489.71)6,113.54 Seed & Mulch 0.00 0.00 0.00 0.00 0.00 117,258.78 145,000.00 125,961.34 27,741.22 8,702.56 Gas, Diesel, Oil & Lubricants 5,849.14 4,950.00 3,134.81 (899.14) (2,714.33)35,181.85 38,050.00 31,131.30 2,868.15 (4,050.55) Fertilizers 445.67 31,000.00 26,273.44 30,554.33 25,827.77 35,120.51 85,800.00 64,376.93 50,679.49 29,256.42 Chemicals 28,519.30 3,300.00 8,212.46 (25,219.30) (20,306.84)102,361.04 59,650.00 49,248.65 (42,711.04) (53,112.39) Total Repairs & Maintenance 50,751.31 52,150.00 54,235.02 1,398.69 3,483.71 471,622.23 509,200.00 456,283.56 37,577.77 (15,338.67) Marketing & Advertising 930.50 1,120.00 1,730.50 189.50 800.00 8,817.63 12,405.00 17,815.58 3,587.37 8,997.95 Computer Related 1,315.51 0.00 0.00 (1,315.51) (1,315.51)15,654.98 0.00 0.00 (15,654.98) (15,654.98) Dues & Subscriptions 3,562.50 3,870.00 3,677.38 307.50 114.88 33,053.49 34,830.00 31,431.35 1,776.51 (1,622.14) Operating Supplies 13,932.14 6,400.00 9,643.18 (7,532.14) (4,288.96)89,639.22 77,050.00 100,960.56 (12,589.22)11,321.34 Linens & Laundry 614.76 0.00 922.14 (614.76)307.38 6,492.51 0.00 7,176.44 (6,492.51)683.93 Postage 0.00 0.00 384.11 0.00 384.11 407.69 300.00 827.65 (107.69)419.96 Member Relations (7.40)500.00 0.00 507.40 7.40 709.78 1,500.00 5,964.98 790.22 5,255.20 Uniforms 3,075.09 3,175.00 549.07 99.91 (2,526.02)7,351.44 9,350.00 6,366.01 1,998.56 (985.43) Other Operating 0.00 0.00 16.55 0.00 16.55 0.00 0.00 1,198.55 0.00 1,198.55 Merchant Processing Fees 11,268.58 11,500.00 14,577.22 231.42 3,308.64 71,052.52 61,300.00 68,323.53 (9,752.52) (2,728.99) Bank Fees 0.00 0.00 0.00 0.00 0.00 (31.83)0.00 1,004.56 31.83 1,036.39 Cash Short / (Over) 0.00 0.00 0.00 0.00 0.00 (35.73)0.00 0.00 35.73 35.73 Late Fees & Penalties 0.00 0.00 0.00 0.00 0.00 0.00 0.00 22.56 0.00 22.56 Centralized Services 2,806.09 2,125.00 2,511.34 (681.09) (294.75)21,886.83 19,125.00 19,694.97 (2,761.83) (2,191.86) Tournament Expenses 0.00 0.00 0.00 0.00 0.00 0.00 0.00 969.15 0.00 969.15 Total Operating Expenses 37,497.77 28,690.00 34,011.49 (8,807.77) (3,486.28)254,998.53 215,860.00 261,755.89 (39,138.53)6,757.36 Operating Profit 430,060.56 351,695.00 425,726.88 78,365.56 4,333.68 2,093,602.33 1,334,482.35 1,908,057.13 759,119.98 185,545.20 75% through the fiscal year (Period 9 of 12)Page 2 of 3 APPENDIX 1 El Conquistador Golf Mgmt., LLC Report Date: 3/31/2026 El Conquistador Golf Course Mar - 2026 Budget Mar - 2025 Bud Var PY Var Mar - 2026 Budget Mar - 2025 Bud Var PY Var Month-to-Date Year-to-Date Electric & Gas 18,348.92 22,000.00 16,638.50 3,651.08 (1,710.42)199,753.53 226,000.00 206,679.39 26,246.47 6,925.86 Water 46,009.23 51,950.00 57,691.80 5,940.77 11,682.57 688,530.00 765,800.00 771,856.45 77,270.00 83,326.45 Telephone & Internet Connection 604.25 875.00 648.94 270.75 44.69 5,891.44 7,875.00 6,601.94 1,983.56 710.50 Other Third-party Services 6,105.78 5,875.00 2,246.08 (230.78) (3,859.70)38,698.07 47,525.00 43,811.40 8,826.93 5,113.33 Total Utilities 71,068.18 80,700.00 77,225.32 9,631.82 6,157.14 932,873.04 1,047,200.00 1,028,949.18 114,326.96 96,076.14 Lease Expense - Fixed 15,077.76 14,582.00 13,258.76 (495.76) (1,819.00)135,699.84 131,238.00 119,328.84 (4,461.84) (16,371.00) Lease Expense - Short-term & Other 298.11 298.00 298.11 (0.11)0.00 2,682.99 3,232.00 3,255.84 549.01 572.85 Total Leases 15,375.87 14,880.00 13,556.87 (495.87) (1,819.00)138,382.83 134,470.00 122,584.68 (3,912.83) (15,798.15) Fixed Operating Expenses 86,444.05 95,580.00 90,782.19 9,135.95 4,338.14 1,071,255.87 1,181,670.00 1,151,533.86 110,414.13 80,277.99 Gross Operating Profit 343,616.51 256,115.00 334,944.69 87,501.51 8,671.82 1,022,346.46 152,812.35 756,523.27 869,534.11 265,823.19 Insurance 7,546.50 6,000.00 5,877.20 (1,546.50) (1,669.30)67,918.51 54,000.00 56,472.31 (13,918.51) (11,446.20) Bad Debt Expense 58.31 200.00 0.00 141.69 (58.31)581.80 1,800.00 4,857.62 1,218.20 4,275.82 Fees, Permits, & Licenses 210.00 3,050.00 1,004.56 2,840.00 794.56 8,917.74 9,425.00 7,032.62 507.26 (1,885.12) Base Management Fees 11,040.81 11,094.00 10,824.32 53.19 (216.49)99,583.78 99,846.00 97,418.88 262.22 (2,164.90) Other Expenses 18,855.62 20,344.00 17,706.08 1,488.38 (1,149.54)177,001.83 165,071.00 165,781.43 (11,930.83) (11,220.40) Net Operating Income 324,760.89 235,771.00 317,238.61 88,989.89 7,522.28 845,344.63 (12,258.65)590,741.84 857,603.28 254,602.79 Incentive Management Fee 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8,030.62 0.00 8,030.62 NET INCOME 324,760.89 235,771.00 317,238.61 88,989.89 7,522.28 845,344.63 (12,258.65)582,711.22 857,603.28 262,633.41 EBITDA 324,760.89 235,771.00 317,238.61 88,989.89 7,522.28 845,344.63 (12,258.65)582,711.22 857,603.28 262,633.41 75% through the fiscal year (Period 9 of 12)Page 3 of 3 APPENDIX 2 Operating:Through Mar Budget Cumulative FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY2024 FY2025 FY2026 FY 2026 Actuals Revenue 36 Hole 500,158 1,883,452 1,798,304 2,171,484 2,367,136 2,593,395 3,522,083 3,674,489 3,856,880 4,724,718 4,933,178 3,902,203 4,311,050 35,927,480 Pusch Ridge - 105,370 99,134 59,726 106,184 98,316 - 380,375 414,225 528,346 619,276 543,520 528,628 2,954,472 F&B - Overlook - 606,171 708,594 745,766 671,582 554,336 448,782 671,479 725,222 766,679 865,944 675,841 785,400 7,440,396 Total Revenue 500,158 2,594,993 2,606,032 2,976,976 3,144,902 3,246,047 3,970,865 4,726,343 4,996,327 6,019,743 6,418,398 5,121,564 5,625,078 46,322,348 Expenses 36 Hole 1,112,252 3,588,714 3,936,889 3,817,932 3,771,706 3,891,341 3,915,216 3,740,982 3,929,757 4,263,007 4,365,456 3,297,135 4,468,886 43,630,387 Pusch Ridge - 253,513 256,769 236,160 230,196 287,112 - 319,702 390,959 478,320 516,762 389,362 508,480 3,358,855 F&B - Overlook - 861,740 823,383 841,866 785,499 701,538 440,382 630,509 596,910 684,037 756,376 589,722 751,271 7,711,961 Total Expenses 1,112,252 4,703,967 5,017,041 4,895,958 4,787,401 4,879,991 4,355,598 4,691,193 4,917,626 5,425,364 5,638,594 4,276,219 5,728,637 54,701,204 Profit/(Loss) 36 Hole (612,094) (1,705,262) (2,138,585) (1,646,448) (1,404,570) (1,297,946) (393,133) (66,493) (72,877) 461,711 567,722 605,068 (157,836) (7,702,907) Pusch Ridge - (148,143) (157,635) (176,434) (124,012) (188,796) - 60,673 23,266 50,026 102,514 154,158 20,148 (404,383) F&B - Overlook - (255,569) (114,789) (96,100) (113,917) (147,202) 8,400 40,970 128,312 82,642 109,569 86,119 34,129 (271,566) Total Operating Profit/(Loss)(612,094) (2,108,974) (2,411,009) (1,918,982) (1,642,499) (1,633,944) (384,733) 35,150 78,701 594,379 779,804 845,345 (103,559) (8,378,856) Capital Investments 45,116 47,909 29,464 - - 131,035 2,828,061 4,619,904 2,184,848 743,897 528,175 630,000 11,158,409 Initial purchase (1)300,000 350,000 350,000 1,000,000 Notes: (1) $1,000,000 original purchase of courses and community center 1/2 cent sales tax 506,710 2,030,750 2,199,466 2,330,941 2,463,034 2,584,916 2,947,420 3,535,507 3,707,578 3,792,744 3,904,926 593,099 - 30,597,091 HOA contributions - - - - - - 125,000 159,050 159,050 159,050 159,050 1,950 34,050 763,150 POST AGREEMENTPRE AGREEMENT Town of Oro Valley Golf Analysis APPENDIX 2 Page 1 of 2 APPENDIX 2 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY 2024 Gross Margin 213,698 225,040 295,419 332,783 495,412 480,305 525,109 589,339 694,275 586,473 430,577 294,092 Expenses 406,558 333,614 420,523 454,504 412,959 349,298 308,213 291,616 334,623 326,900 398,960 530,376 Net Income/(Loss) (192,860) (108,573) (125,103) (121,721) 82,453 131,007 216,896 297,723 359,652 259,573 31,617 (236,284) FY 2025 Gross Margin 263,005 299,163 297,857 375,363 594,117 556,764 534,838 706,996 737,685 675,958 450,287 378,899 Expenses 411,466 416,806 442,887 488,946 531,458 378,085 374,611 318,371 420,446 381,953 453,967 476,826 Net Income/(Loss) (148,461) (117,643) (145,030) (113,583) 62,659 178,679 160,226 388,625 317,239 294,005 (3,681) (97,927) FY 2026 Gross Margin 337,860 344,855 377,531 402,476 613,880 545,516 588,783 731,659 776,195 Expenses 416,385 419,190 518,351 474,811 456,611 404,521 367,544 364,566 451,434 Net Income/(Loss) (78,525) (74,335) (140,820) (72,334) 157,270 140,995 221,239 367,094 324,761 - - - Town of Oro Valley Golf Analysis - Contractor Financials - 200,000 400,000 600,000 800,000 1,000,000 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Comparison of Gross Income by Month - Total Golf Operations FY 2024 FY 2025 FY 2026 - 100,000 200,000 300,000 400,000 500,000 600,000 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Comparison of Total Expenses by Month - Total Golf Operations FY 2024 FY 2025 FY 2026 (400,000) (200,000) - 200,000 400,000 600,000 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Comparison of Net Income/(Loss) by Month - Total Golf Operations FY 2024 FY 2025 FY 2026 APPENDIX 2 Page 2 of 2 APPENDIX 3 Consolidated Year-to-Date Financial Report through March 2026 FY 2025/2026 Fund FY 25/26 Beginning Fund Balance Revenue Other Fin Sources/ Transfers In Total In Personnel O&M Capital Debt Service Other Fin Uses/ Transfers Out Total Out Fund Balance Through March 2026 General Fund 20,702,401 42,596,962 - 42,596,962 26,218,700 9,781,429 87,806 - 9,453,829 45,541,764 17,757,599 Highway Fund 1,598,787 3,331,204 1,500,000 4,831,204 984,863 780,715 2,090,619 - - 3,856,198 2,573,793 Grants and Contributions Fund 60,787 609,694 59,109 668,803 406 163,612 336,442 - - 500,460 229,131 Seizure & Forfeiture - Justice/State 374,906 25,895 - 25,895 - - - - - - 400,801 Community Center Fund 2,921,900 6,845,787 - 6,845,787 861,315 5,046,513 1,028,756 - 172,968 7,109,551 2,658,136 Municipal Debt Service Fund 53,800 129,851 3,918,566 4,048,417 - 8,413 - 4,013,071 - 4,021,483 80,733 Water Resource System & Dev. Impact Fee Fund 8,104,970 1,837,855 11,538,916 13,376,770 - 84,040 16,269,861 557,505 - 16,911,406 4,570,334 Townwide Roadway Dev Impact Fee Fund 3,095,031 581,765 - 581,765 - - - - - - 3,676,796 Parks & Recreation Impact Fee Fund 381,038 345,079 - 345,079 - - - - - - 726,117 Police Impact Fee Fund 122,916 109,635 - 109,635 - - - - 38,765 38,765 193,786 Capital Fund 16,847,866 1,314,440 5,750,000 7,064,440 - 71,694 6,839,283 - 1,559,109 8,470,085 15,442,220 PAG/RTA Fund 446,926 31,317 - 31,317 - 12,770 70,000 - - 82,770 395,473 Water Utility 9,058,512 17,425,380 4,021,062 21,446,442 2,562,659 7,581,560 1,462,631 3,695,379 5,510,327 20,812,556 9,692,398 Stormwater Utility 1,447,723 1,189,849 - 1,189,849 680,879 239,989 6,855 - - 927,722 1,709,850 Benefit Self Insurance Fund 3,995,323 3,081,234 - 3,081,234 - 3,786,140 - - - 3,786,140 3,290,417 Recreation In-Lieu Fee Fund 52,018 1,102 - 1,102 - - - - - - 53,120 Total 69,264,903 79,457,048 26,787,652 106,244,700 31,308,822 27,556,873 28,192,252 8,265,955 16,734,998 112,058,900 63,450,703 75% through the fiscal year (Period 9 of 12)Page 1 of 1 APPENDIX 4 Local Sales Tax Collections FY 2025/26 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN TOTAL Construction Sales Tax 179,150 163,435 98,998 89,454 243,032 156,790 253,437 201,202 316,434 1,701,931 Utility Sales Tax 302,786 412,779 407,129 429,423 372,182 261,920 293,969 319,220 288,992 3,088,399 Retail Sales Tax 941,576 897,606 867,961 893,562 934,258 1,001,735 1,345,143 937,347 956,315 8,775,505 Remote Seller Sales Tax 192,279 205,970 220,208 196,932 221,954 259,550 305,982 228,931 216,170 2,047,975 Bed Tax 112,651 91,706 92,611 115,225 146,552 178,739 154,051 259,109 370,419 1,521,064 Restaurant & Bar Sales Tax 269,228 238,235 263,782 292,127 270,580 270,346 335,217 273,916 312,049 2,525,479 All Other Local Sales Tax *115,341 108,925 133,051 119,804 136,567 153,290 161,223 189,792 247,605 1,365,597 Monthly Total 2,113,010$ 2,118,656$ 2,083,741$ 2,136,528$ 2,325,125$ 2,282,369$ 2,849,021$ 2,409,518$ 2,707,984$ 21,025,951$ Cumulative Total 2,113,010$ 4,231,666$ 6,315,407$ 8,451,935$ 10,777,059$ 13,059,428$ 15,908,449$ 18,317,967$ 21,025,951$ Monthly variance (220,775)$ (201,284)$ (240,986)$ (191,015)$ (279,060)$ (262,332)$ (258,450)$ (187,731)$ 299,058$ Cumulative variance (220,775)$ (422,059)$ (663,045)$ (854,060)$ (1,133,120)$ (1,395,452)$ (1,653,902)$ (1,841,633)$ (1,542,575)$ FY 2024/25 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN TOTAL Construction Sales Tax 427,032 291,729 371,199 324,860 545,601 253,973 356,030 414,112 171,326 130,317 296,873 293,764 3,876,815 Utility Sales Tax 306,838 399,701 417,156 405,901 370,322 335,865 288,120 341,375 312,662 259,576 253,922 266,994 3,958,432 Retail Sales Tax 937,920 893,895 855,486 893,023 923,982 1,034,704 1,317,644 978,283 891,361 1,032,305 1,001,099 922,356 11,682,057 Remote Seller Sales Tax 164,541 176,303 174,003 175,191 187,988 229,019 275,105 193,315 178,898 200,958 196,195 199,852 2,351,368 Bed Tax 107,778 180,045 136,688 120,312 177,934 231,333 286,851 209,622 320,232 321,945 252,906 177,851 2,523,496 Restaurant & Bar Sales Tax 271,259 239,294 251,212 286,989 268,563 287,017 374,825 280,614 314,687 382,887 280,512 327,412 3,565,273 All Other Local Sales Tax *118,418 138,973 118,983 121,267 129,793 172,790 208,896 179,929 219,760 224,200 183,278 134,802 1,951,088 Monthly Total 2,333,785$ 2,319,940$ 2,324,727$ 2,327,543$ 2,604,184$ 2,544,700$ 3,107,472$ 2,597,249$ 2,408,926$ 2,552,188$ 2,464,785$ 2,323,029$ 29,908,529$ Cumulative Total 2,333,785$ 4,653,725$ 6,978,452$ 9,305,995$ 11,910,179$ 14,454,879$ 17,562,351$ 20,159,600$ 22,568,526$ 25,120,715$ 27,585,500$ 29,908,529$ *Does not include cable franchise fees or sales tax audit revenues 75% through the fiscal year (Period 9 of 12)Page 1 of 1 APPENDIX 5 General Fund State Shared Revenues FY 2025/26 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN TOTAL State Shared Income Tax 793,555 793,555 793,555 793,555 793,555 793,556 793,555 793,555 793,555 7,141,997 State Shared Sales Tax 619,095 603,827 595,627 602,207 623,385 588,988 743,390 602,202 612,834 5,591,555 County Auto Lieu 216,240 215,390 219,757 235,357 160,740 250,037 216,183 200,625 292,283 2,006,612 Smart and Safe - - - - - 131,143 - - - 131,143 Monthly Total 1,628,891$ 1,612,772$ 1,608,939$ 1,631,119$ 1,577,680$ 1,763,724$ 1,753,127$ 1,596,382$ 1,698,672$ 14,871,307$ Cumulative Total 1,628,891$ 3,241,663$ 4,850,602$ 6,481,721$ 8,059,402$ 9,823,125$ 11,576,253$ 13,172,635$ 14,871,307$ Monthly variance (59,126)$ (41,479)$ (26,784)$ (47,715)$ (82,925)$ (36,755)$ 44,440$ (161,087)$ 2,058$ Cumulative variance (59,126)$ (100,605)$ (127,389)$ (175,104)$ (258,029)$ (294,783)$ (250,344)$ (411,430)$ (409,372)$ FY 2024/25 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN TOTAL State Shared Income Tax 856,425 856,425 856,425 856,425 856,425 856,425 856,425 856,425 856,425 856,425 856,425 856,425 10,277,099 State Shared Sales Tax 593,796 582,212 575,094 597,416 614,349 622,937 724,079 596,353 582,965 677,435 632,153 618,346 7,417,134 County Auto Lieu 237,795 215,615 204,204 224,993 189,831 182,939 128,184 304,691 257,209 119,394 230,779 325,869 2,621,504 Smart and Safe - - - - - 138,177 - - 15 - - 148,981 287,173 Monthly Total 1,688,016$ 1,654,252$ 1,635,723$ 1,678,834$ 1,660,605$ 1,800,479$ 1,708,688$ 1,757,469$ 1,696,614$ 1,653,254$ 1,719,357$ 1,949,620$ 20,602,911$ Cumulative Total 1,688,016$ 3,342,268$ 4,977,991$ 6,656,825$ 8,317,430$ 10,117,909$ 11,826,596$ 13,584,065$ 15,280,679$ 16,933,933$ 18,653,291$ 20,602,911$ 75% through the fiscal year (Period 9 of 12)Page 1 of 1 APPENDIX 6 Debt Service Expense Adopted Forecast Forecast Forecast Forecast Forecast Forecast Forecast Final Payment 2025/26 2026/27 2027/28 2028/29 2029/30 2030-2035 2036-2040 2041-2045 Date Municipal Debt Service Fund Excise Tax Revenue Bonds - - - 2010 CREBS 186,370 176,066 170,437 - - - - - 2028 2012 Revenue Bonds 224,631 227,147 224,125 - - - - - 2028 2015a Refunding Excise Tax 304,379 - - - - - - - 2026 2016 Excise Tax 172,968 172,635 172,236 172,760 172,207 344,447 - - 2032 2017a Refunding Excise Tax 138,645 138,626 - - - - - - 2027 2018a Excise Tax Revenue Obligation 171,515 171,446 171,502 171,429 171,229 684,420 - - 2034 2021 Parks & Rec Excise Tax 1,543,300 1,544,800 1,539,425 1,542,050 1,537,550 7,693,950 7,682,400 3,063,900 2042 2021 Pension Obligation Bonds 1,271,262 1,266,350 1,264,118 1,264,461 1,262,588 6,312,780 5,036,273 - 2039 Total Municipal Debt Service Fund 4,013,070 3,697,070 3,541,843 3,150,700 3,143,574 15,035,597 12,718,673 3,063,900 Community Center Fund Contracts Payable Leased Fitness Equipment 7,668 - - - - - - - 2026 Financed Fitness Equipment 22,677 7,559 - - - - - - 2027 Golf Carts 130,867 76,339 - - - - - - 2027 Leased Copiers 76,800 76,800 12,800 - - - - - 2028 Total Community Center Fund 238,012 160,698 12,800 - - - - - WRSDIF Fund Excise Tax Revenue Bonds 2021b Excise Tax Revenue Obligation (4) 55,924 56,015 55,596 34,453 8,255 - - - 2030 2025b Senior Lien Water Revenue Obligation (5) 455,408 455,411 455,408 455,409 455,410 2,277,041 - - 2035 2025b WIFA Loan (6) 493,700 468,639 468,639 468,639 468,639 2,343,196 2,343,196 2,343,196 2045 Total WSRDIF Fund 1,005,032 980,065 979,643 958,501 932,304 4,620,237 2,343,196 2,343,196 Water Utility Fund Excise Tax Revenue Bonds 2015b Refunding Revenue Bonds (1) 148,500 - - - - - - 2026 2017b Refunding Revenue Bonds (2) 1,619,650 1,619,032 - - - - - - 2027 2018b Excise Tax Revenue Obligation (3) 508,532 508,144 508,118 507,710 506,914 2,024,062 - - 2034 2021a Excise Tax Revenue Obligations (4) 743,499 744,714 739,138 458,046 109,745 - - - 2030 2025a Senior Lien Water Revenue Obligation (5) 303,605 303,607 303,605 303,606 303,607 1,518,027 - - 2035 Water Revenue Loans 2014 WIFA Loan 371,750 371,509 371,261 371,006 - - - - 2029 2025a WIFA Loan (6) 329,134 312,426 312,426 312,426 312,426 1,562,131 1,562,131 1,562,131 2045 Total Water Utility Fund 4,024,671 3,859,432 2,234,549 1,952,794 1,232,692 5,104,220 1,562,131 1,562,131 TOTAL DEBT SERVICE - ALL FUNDS 9,280,785 8,697,265 6,768,834 6,061,995 5,308,571 24,760,053 16,624,000 6,969,227 (5) Series 2025 debt service is split between the Water Utility Fund (40%) and the Water Impact fee Fund (60%). (6) 2025 WIFA loan debt service is split between the Water Utility Fund (40%) and the Water Impact fee Fund (60%). (1) Series 2015 for municipal operation facilities debt service is split between General Fund excise tax revenue (67%) and water revenue (33%). (2) Series 2017 debt service is split between General Fund excise tax revenue (8%) and water revenue (92%). (3) Series 2018 for water infrastucture and police evidence and substation facility. Debt service is split between General Fund excise tax revenue (25%) and water revenue (75%). (4) Series 2021 debt service is split between the Water Utility Fund (93%) and the Water Impact fee Fund (7%). APPENDIX 7 Town of Oro Valley Operating Investment Summary Fiscal Year 2025/26 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN LGIP Ending Market Value 11,048,264$ 10,564,199$ 9,802,412$ 8,759,464$ 10,446,793$ 10,759,658$ 12,183,963$ 16,067,942$ 17,851,684$ Investment Income 34,213$ 41,256$ 34,954$ 31,477$ 35,518$ 33,762$ 33,536$ 42,232$ 52,618$ 1-Month Yield 4.33% 4.32% 4.18% 4.09% 3.97% 3.81% 3.71% 3.68% 3.66% PFM Asset Management Closing Market Value 39,752,553$ 38,301,783$ 37,918,398$ 37,062,569$ 35,042,894$ 34,056,344$ 30,665,973$ 31,119,238$ 30,437,154$ Investment Income 199,738$ 172,343$ 102,243$ 130,423$ 207,951$ 80,876$ 168,167$ 167,100$ 63,960$ Annualized Yield to Maturity at Cost 4.51% 4.54% 4.53% 4.53% 4.54% 4.53% 4.55% 4.45% 4.41% Wells Fargo Sweep Ending Balance 3,413,781$ 6,187,767$ 2,581,008$ 4,856,250$ 4,081,463$ 3,859,896$ 8,892,243$ 3,852,677$ 4,699,530$ Investment Income 13,910$ 10,451$ 15,825$ 13,151$ 10,020$ 9,793$ 13,057$ 15,364$ 13,449$ 7-Day Simple Yield 4.18% 4.18% 4.01% 4.00% 3.84% 3.65% 3.57% 3.56% 3.54% Total Ending Balance 54,214,597$ 55,053,750$ 50,301,818$ 50,678,283$ 49,571,151$ 48,675,898$ 51,742,179$ 51,039,857$ 52,988,367$ Total Investment Income 247,861$ 224,050$ 153,022$ 175,052$ 253,489$ 124,431$ 214,760$ 224,696$ 130,026$ APPENDIX 8 Town of Oro Valley - Development Impact Fee Fund Projects Parks and Recreation Facilities Description Cost Completed? Skate Park $1,500,000 Yes Playground and Parking Lot $1,700,000 Yes Multiuse Fields (lighted) $1,200,000 Yes Dog Park $150,000 Yes Developed Park Land $927,694 Park Amenities $2,501,696 Police Police Substation Debt $1,198,500 Police Vehicles $846,050 Street Facilities La Cholla Blvd, Tangerine Rd-Lambert Ln - Road Widening $1,700,000 Yes Shannon Rd, Tangerine Rd-Naranja Dr - New Road $1,000,000 Lambert Ln. .5 mi E of Shannon-Rancho Sonora - Road Widening $1,000,000 Rancho Vistoso & Woodburne - Intersection Improvement $750,000 Oracle Rd & Rams Field Intersection - Intersection Improvement $750,000 Moore Rd La Cholla Blvd - Intersection Improvement $900,000 Moore Rd - Extension E of Rancho Vistoso Blvd - New Road & Intersection $1,026,840 Yes Moore Rd & La Canada Dr Intersection - Intersection Improvement $1,200,000 Yes Glover Rd Multi Use Path - Multi-modal facility $150,000 Yes Glover Rd south half widening - Road Widening $500,000 Yes Water Facilities Water Supply Steam Pump D-Zone Well $1,500,000 Program Management Support Services (P) $1,050,000 Yes Well Improvement Analysis and Recovery Permits (P) $150,000 Yes Well Drilling and Testing (P) $300,000 Yes Construction Permitting, Drilling, Development and Testing (P) $1,500,000 Yes Well Equipment Design and Site Improvements (P) $1,800,000 Yes Storage Palisades C-Zone Storage Tank and Pipeline $4,250,000 Pressure Zone G Storage Expansion $8,000,000 Pressure Zone G, H and I Storage Expansion $4,000,000 Forebay Design (P)$99,231 Yes Forebay Reservoir Construction (P) $900,000 Yes Shannon Rd Forebay Reservoir And Booster Station Prop (Ind.) $240,000 Yes Forebay Reservoir Booster Station Design (Ind.) $90,000 Yes Shannon Rd Forebay Reservoir and Booster Station Design (Ind.) $180,000 Yes Booster Station Construction Forebay Res. (Ind.) $300,000 Yes Shannon Road Forebay Res. Construction (Ind.) $840,000 Yes Shannon Road Forebay Res. Construction (Ind.) $540,000 Yes Arizona municipalities can charge development fees to cover the cost of infrastructure improvements needed to support new development. These fees are one-time payments used to fund projects like building new roads, parks, or water facilities. The amount of the fee is determined by an Infrastructure Improvements Plan (IIP) and land use assumptions. Importantly, development fees can only be used for building new infrastructure or paying off debt for growth-related projects. They cannot be used for ongoing maintenance, repairs, or addressing existing problems. The Town's IIP includes public services for parks and recreation facilities, police facilities, street facilities, and water facilities. Below is a list of identified IIP projects use in the latest impact fee study to calculate the development fees. These are projects that would be eligible to be funded by development fees as outlined in ARS § 9-463.05 (T)(7)(a). APPENDIX 8 Page 1 of 2 APPENDIX 8 Water Facilities Continued Description Cost Completed? Distribution Moore Road F-Zone Interconnect $750,000 Water Plant 14 Booster Capacity Expansion $250,000 Pipeline Design (Recovery Water & Transmission) (P) $660,692 Yes Pipeline Construction (P) $4,320,000 Pipeline Route Study and Preliminary Design (Ind.) $120,000 Yes Pipeline Easement Acquisition (Ind.) $450,000 Yes Pipeline Design (Ind.) $600,000 Yes Pipeline Construction NWRRDS to La Canada Res. (Ind.) $5,880,000 Interconnect to Tangerine Rd. (Ind.) $270,000 Yes Interconnect to Lambert Lane (Ind.) $510,000 Yes APPENDIX 8 Page 2 of 2    Budget and Finance Commission 3. Meeting Date:06/16/2026   Submitted By:David Gephart, Finance SUBJECT: PRESENTATION AND DISCUSSION OF FY 2026/2027 BUDGET RECOMMENDATION: N/A EXECUTIVE SUMMARY: On June 3, 2026, the Town Council adopted the Tentative Budget and set the maximum expenditure limitation for Fiscal Year 2026/2027 in the amount of $127,985,725. No changes are being recommended to Town Council from the Tentative Budget appropriation amount for final budget adoption.  BACKGROUND OR DETAILED INFORMATION: A budget study session was held with Town Council on May 4, 2026, where the FY2027 Town Manager's Recommended Budget was discussed, and various departmental presentations were made.  Additionally, the Town Manager's Recommended Budget was presented at the last Budget & Finance Commission meeting in May.  The recommended budget totaled $130,038,634. On June 3, 2026, the FY2027 Tentative Budget was presented, and a public hearing was held.  Various adjustments were made to the Town Manager's Recommended Budget, lowering the proposed Tentative Budget to $127,985,725.  A complete reconciliation has been attached to this report.  Town Council adopted the FY2027 Tentative Budget of $127,985,725. At the Town Council meeting tomorrow evening, Town Council will consider final adoption of the FY2027 budget, along with the 10-year CIP and the FY2027 pay plan.  No changes in the final appropriation amount from the adopted Tentative Budget are being recommended. FISCAL IMPACT: N/A - this item is for discussion purposes only. SUGGESTED MOTION: N/A Attachments Tentative Budget Auditor General Schedules  Changes from Town Manager's Recommended Budget FY27  FY2027 CIP  FY27 Tentative Budget Presentation  Town of Oro Valley Table of Contents Fiscal year 2027 Resolution for the adoption of the budget Schedule A—Summary Schedule of estimated revenues and expenditures/expenses Schedule B—Tax levy and tax rate information Schedule G—Full-time employees and personnel compensation Schedule C—Revenues other than property taxes Schedule D—Other financing sources/(uses) and interfund transfers Schedule E—Expenditures/expenses by fund Schedule F—Expenditures/expenses by department (as applicable) 6/23 Arizona Auditor General Official City/Town Budget Forms Fiscal year General Fund Special Revenue Funds Debt Service Fund Capital Projects Funds Enterprise Funds Available Internal Service Funds Total all funds 2026 Adopted/adjusted budgeted expenditures/expenses* E 1 54,175,132 19,453,346 4,123,070 17,253,784 51,109,661 5,384,557 151,499,550 2026 Actual expenditures/expenses** E 2 50,882,230 16,815,296 4,022,071 6,756,600 42,227,274 5,015,136 125,718,607 2027 Beginning fund balance/(deficit) or net position/(deficit) at July 1*** 3 16,090,550 3,448,301 107,428 23,031,465 15,731,806 2,920,260 61,329,810 2027 Primary property tax levy B 4 - - 2027 Secondary property tax levy B 5 - 2027 Estimated revenues other than property taxes C 6 59,645,003 13,541,607 118,836 3,255,385 26,157,261 4,543,643 107,261,735 2027 Other financing sources D 7 - - - - - - - 2027 Other financing (uses) D 8 - - - - - - - 2027 Interfund transfers in D 9 - 3,000,000 3,608,234 5,123,200 2,400,000 - 14,131,434 2027 Interfund Transfers (out) D 10 7,693,886 - - 4,034,696 2,402,852 - 14,131,434 2027 Line 11: Reduction for fund balance reserved for future budget year expenditures Maintained for future debt retirement - Maintained for future capital projects - Maintained for future financial stability - 2027 Total financial resources available 12 68,041,667 19,989,908 3,834,498 27,375,354 41,886,215 7,463,903 168,591,545 2027 Budgeted expenditures/expenses E 13 55,018,570 17,787,440 3,807,070 12,924,992 32,907,588 5,540,065 127,985,725 Expenditure limitation comparison 2026 2027 1 Budgeted expenditures/expenses 151,499,550$ 127,985,725$ 2 Add/subtract: estimated net reconciling items 3 Budgeted expenditures/expenses adjusted for reconciling items 151,499,550 127,985,725 4 Less: estimated exclusions 5 Amount subject to the expenditure limitation 151,499,550$ 127,985,725$ 6 EEC expenditure limitation 175,243,841$ 179,794,919$ X * ** *** Town of Oro Valley Summary Schedule of estimated revenues and expenditures/expenses Fiscal year 2027 Includes actual amounts as of the date the proposed budget was prepared, adjusted for estimated activity for the remainder of the fiscal year. Amounts on this line represent beginning fund balance/(deficit) or net position/(deficit) amounts except for nonspendable amounts (e.g., prepaids and inventories) or amounts legally or contractually required to be maintained intact (e.g., principal of a permanent fund). S c h Funds Includes expenditure/expense adjustments approved in the current year from Schedule E. The city/town does not levy property taxes and does not have special assessment districts for which property taxes are levied. Therefore, Schedule B has been omitted. 11 6/23 Arizona Auditor General Schedule A Official City/Town Budget Forms Estimated revenues Actual revenues* Estimated revenues 2026 2026 2027 General Fund Local taxes Local Sales Tax $ 27,844,136 $ 27,184,288 $ 29,111,307 Cable Franchise Tax 653,051 653,051 622,813 Licenses and permits Licenses 255,000 229,304 233,890 Permits 1,707,103 1,835,555 1,247,595 Fees 154,020 252,620 255,146 Intergovernmental State/County Shared 19,863,884 19,809,059 21,172,646 State Grants 91,851 146,851 146,851 Federal Grants 375,000 581,368 475,000 Reimbursements 2,320,362 2,320,362 2,296,060 Charges for services Reimbursements 135,000 135,000 135,000 Fees 1,096,760 1,224,275 1,247,623 Other 1,818,463 1,806,126 1,864,061 Fines and forfeits Fines 68,680 56,000 68,680 Interest on investments Interest Income 637,500 650,000 627,531 Miscellaneous Miscellaneous 210,300 218,100 140,800 Total General Fund $ 57,231,110 $ 57,101,958 $ 59,645,003 * Town of Oro Valley Revenues other than property taxes Fiscal Year 2027 Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. Source of revenues 6/23 Arizona Auditor General Schedule C Official City/Town Budget Forms Estimated revenues Actual revenues* Estimated revenues 2026 2026 2027 Town of Oro Valley Revenues other than property taxes Fiscal Year 2027 Source of revenues Special revenue funds Highway User Revenue Fund Highway User Fuel Tax $ 4,456,367 $ 4,290,852 $ 4,573,619 Permits 30,000 40,000 35,350 Interest Income 99,000 140,000 161,202 Other 2,500 50,489 2,500 $ 4,587,867 $ 4,521,341 $ 4,772,671 Services and Forfeitures Seizures and Forfeitures $ 20,000 $ 19,000 $ 20,000 Interest Income 20,000 13,378 20,000 $ 40,000 $ 32,378 $ 40,000 Community Center Fund Local Sales Tax $ 3,972,920 $ 593,099 $ Charges for Services 7,159,243 8,279,276 8,704,286 Interest Income 22,500 50,000 21,150 Other 37,550 37,802 3,500 $ 11,192,213 $ 8,960,177 $ 8,728,936 Total special revenue funds $ 15,820,079 $ 13,513,896 $ 13,541,607 * Debt service funds Municipal Debt Service Fund Federal Grants $ 14,504 $ 12,133 $ 8,836 Interest Income 32,000 25,000 30,000 Miscellaneous 80,000 120,000 80,000 $ 126,504 $ 157,133 $ 118,836 Total debt service funds $ 126,504 $ 157,133 $ 118,836 Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. 6/23 Arizona Auditor General Schedule C Official City/Town Budget Forms Estimated revenues Actual revenues* Estimated revenues 2026 2026 2027 Town of Oro Valley Revenues other than property taxes Fiscal Year 2027 Source of revenues Capital projects funds Grants and Contributions Fund Federal Grants $ 1,019,550 $ 292,318 $ 83,200 State Grants 103,400 102,154 340,400 Interest Income 6,000 18,384 19,000 Miscellaneous 561,000 566,000 $ 1,689,950 $ 412,856 $ 1,008,600 Townwide Roadway Development Impact Fee Fund Development Impact Fees $ 488,915 $ 625,952 $ 192,255 Interest Income 100,000 110,000 100,000 $ 588,915 $ 735,952 $ 292,255 Parks and Recreation Impact Fee Fund Development Impact Fees $ 364,897 $ 382,217 $ 109,463 Interest Income 18,000 16,000 19,000 $ 382,897 $ 398,217 $ 128,463 Police Impact Fee Fund Development Impact Fees $ 104,596 $ 140,087 $ 36,203 Interest Income 3,000 3,600 4,000 $ 107,596 $ 143,687 $ 40,203 Capital Fund Miscellaneous $ 1,068,926 $ 1,357,020 $ 1,196,470 Interest Income 470,000 550,000 442,944 $ 1,538,926 $ 1,907,020 $ 1,639,414 PAG/RTA Fund State Grants $ 30,000 $ 20,538 $ 130,000 Interest Income 14,000 13,720 15,000 $ 44,000 $ 34,258 $ 145,000 Recreation in Lieu Fee Fund Interest Income $ 800 $ 1,400 $ 1,450 $ 800 $ 1,400 $ 1,450 Total capital projects funds $ 4,353,084 $ 3,633,390 $ 3,255,385 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. 6/23 Arizona Auditor General Schedule C Official City/Town Budget Forms Estimated revenues Actual revenues* Estimated revenues 2026 2026 2027 Town of Oro Valley Revenues other than property taxes Fiscal Year 2027 Source of revenues Enterprise funds Water Utility Fund Water Sales $ 18,511,000 $ 18,752,246 $ 19,435,000 Charges for Services 3,457,000 3,428,800 3,427,500 Interest Income 100,000 400,000 245,000 State Grants 841,639 Miscellaneous 20,000 22,388 $ 22,088,000 $ 23,445,073 $ 23,107,500 Water Rescources Development Impact Fee Fund Development Impact Fees $ 930,078 $ 853,919 $ 815,019 Interest Income 175,000 180,000 150,000 Federal Grants 1,262,459 $ 1,105,078 $ 2,296,378 $ 965,019 Stormwater Utility Fund Charges for Services $ 1,527,000 $ 1,543,429 $ 1,758,800 Interest Income 20,000 48,000 45,000 Federal Grants 239,200 210,991 280,942 $ 1,786,200 $ 1,802,420 $ 2,084,742 Total enterprise funds $ 24,979,278 $ 27,543,871 $ 26,157,261 * Internal service funds Benefit Self Insurance Fund Interest Income $ 120,000 $ 158,000 $ 119,000 Miscellaneous 3,959,376 3,782,073 4,424,643 $ 4,079,376 $ 3,940,073 $ 4,543,643 Total internal service funds $ 4,079,376 $ 3,940,073 $ 4,543,643 Total all funds $ 106,589,431 $ 105,890,321 $ 107,261,735 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. 6/23 Arizona Auditor General Schedule C Official City/Town Budget Forms Fund Sources (Uses)In (Out) General Fund Transfer to Capital Fund$$$$4,000,000 Transfer to Grants Fund 123,200 Transfer to Debt Service Fund 3,570,686 Total General Fund $$$$7,693,886 Special revenue funds Community Center Fund Highway Fund 3,000,000 Total special revenue funds $ $ $ 3,000,000 $ Debt service funds Municipal Debt Service Fund $ $ $ 3,608,234 $ Total debt service funds $ $ $ 3,608,234 $ Capital projects funds Grants and Contributions Fund $ $ $ 123,200 $ Police Impact Fee Fund 34,696 Capital Fund 4,000,000 3,000,000 Townwide Roadway Impact Fee Fund 1,000,000 PAG/RTA Fund 1,000,000 Total capital projects funds $ $ $ 5,123,200 $ 4,034,696 Enterprise funds Water Utility Fund $$$$2,402,852 Water Resource Impact Fee Fund $ $ $ 2,400,000 Total enterprise funds $ $ $ 2,400,000 $ 2,402,852 Total all funds $ $ $ 14,131,434 $ 14,131,434 2027 2027 Town of Oro Valley Other financing sources/(uses) and interfund transfers Fiscal year 2027 Other financing Interfund transfers 6/23 Arizona Auditor General Schedule D Official City/Town Budget Forms Adopted budgeted expenditures/ expenses Expenditure/ expense adjustments approved Actual expenditures/ expenses* Budgeted expenditures/ expenses Fund/Department 2026 2026 2026 2027 General Fund Council $ 216,163 $ $ 203,163 $ 215,480 Clerk 446,275 436,887 459,030 Town Manager's Office 1,738,771 1,749,402 1,854,148 Human Resources 744,887 709,060 750,802 Finance 885,087 884,808 887,430 Information Technology 6,021,164 5,777,034 5,969,593 Non Departmental 3,098,504 3,052,282 3,815,238 Legal 1,193,587 921,432 1,075,855 Community & Economic Development 4,275,011 4,009,588 4,224,650 Parks & Recreation 4,950,510 4,924,785 5,288,482 Police 21,333,810 20,695,667 20,595,219 Town Court 1,181,757 1,126,102 1,126,278 Public Works 6,551,005 6,392,019 6,756,365 Contingency Reserve 2,000,000 (461,399) 2,000,000 Total General Fund $ 54,636,531 $(461,399)$ 50,882,230 $ 55,018,570 Special revenue funds Highway User Revenue Fund $ 7,656,153 $ $ 6,105,105 $ 7,950,951 Seizures and Forfeitures 382,860 35,000 439,360 Community Center Fund 11,414,333 10,675,191 9,397,129 Total special revenue funds $ 19,453,346 $ $ 16,815,296 $ 17,787,440 Debt service funds Municipal Debt Service Fund $ 4,123,070 $ $ 4,022,071 $ 3,807,070 Total debt service funds $ 4,123,070 $ $ 4,022,071 $ 3,807,070 Capital projects funds Grants and Contributions Fund $ 2,042,500 $ $ 575,338 $ 1,109,400 Townwide Roadway Impact Fee Fund 1,051,232 4,287 955,294 Parks and Recreation Impact Fee Fund 437,001 2,001 487,471 Police Impact Fee Fund 50,572 572 50,707 Recreation in Lieu Fee Fund 18,216 18,216 Capital Fund 12,917,864 461,399 6,037,112 9,103,904 PAG/RTA Fund 275,000 137,290 1,200,000 Total capital projects funds $ 16,792,385 $ 461,399 $ 6,756,600 $ 12,924,992 Enterprise funds Water Utility Enterprise Fund $ 22,256,516 $ $ 20,881,736 $ 22,667,060 Water Resources Dev Impact Fee Fund 26,450,132 19,950,132 7,616,054 Stormwater Utility Enterprise Fund 2,403,013 1,395,406 2,624,474 Total enterprise funds $ 51,109,661 $ $ 42,227,274 $ 32,907,588 Internal service funds Benefit Self Insurance Fund $ 5,384,557 $ $ 5,015,136 $ 5,540,065 Total internal service funds $ 5,384,557 $ $ 5,015,136 $ 5,540,065 Total all funds $ 151,499,550 $ $ 125,718,607 $ 127,985,725 * Expenditures/expenses by fund Fiscal year 2027 Town of Oro Valley Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year. 6/23 Arizona Auditor General Schedule E Official City/Town Budget Forms Adopted budgeted expenditures/ expenses Expenditure/ expense adjustments approved Actual expenditures/ expenses* Budgeted expenditures/ expenses 2026 2026 2026 2027 Council General Fund $ 216,163 $ $ 203,163 $ 215,480 Department total $ 216,163 $ $ 203,163 $ 215,480 Clerk General Fund $ 446,275 $ $ 436,887 $ 459,030 Department total $ 446,275 $ $ 436,887 $ 459,030 Town Manager General Fund $ 1,738,771 $ $ 1,749,402 $ 1,854,148 Department total $ 1,738,771 $ $ 1,749,402 $ 1,854,148 Human Resources General Fund $ 744,887 $ $ 709,060 $ 750,802 Department total $ 744,887 $ $ 709,060 $ 750,802 Finance General Fund $ 885,087 $ $ 884,808 $ 887,430 Department total $ 885,087 $ $ 884,808 $ 887,430 Information Technology General Fund $ 6,021,164 $ $ 5,777,034 $ 5,969,593 Department total $ 6,021,164 $ $ 5,777,034 $ 5,969,593 Non Departmental General Fund $ 3,098,504 $ $ 3,052,282 $ 3,815,238 General Fund - Contingency Reserve 2,000,000 (461,399) 2,000,000 Grants & Contributions Fund 700,000 700,000 Municipal Debt Service Fund 4,123,070 4,022,071 3,807,070 Benefits Self Insurance Fund 5,384,557 5,015,136 5,540,065 Capital Fund 12,917,864 461,399 6,037,112 9,103,904 Department total $ 28,223,995 $ $ 18,126,601 $ 24,966,277 Legal General Fund $ 1,193,587 $ $ 921,432 $ 1,075,855 Department total $ 1,193,587 $ $ 921,432 $ 1,075,855 Community and Economic Development General Fund $ 4,275,011 $ $ 4,009,588 $ 4,224,650 Department total $ 4,275,011 $ $ 4,009,588 $ 4,224,650 Parks and Recreation General Fund $ 4,950,510 $ $ 4,924,785 $ 5,288,482 Grants & Contributions Fund 67,765 Parks & Recreation Impact Fee Fund 437,001 2,001 487,471 Recreation in Lieu Fee Fund 18,216 18,216 Community Center Fund 11,414,333 10,675,191 9,397,129 Department total $ 16,820,060 $ $ 15,669,742 $ 15,191,298 Police General Fund $ 21,333,810 $ $ 20,695,667 $ 20,595,219 Grants & Contributions Fund 171,500 238,896 409,400 Seizures and Forfeitures 382,860 35,000 439,360 Police Impact Fee Fund 50,572 572 50,707 Department total $ 21,938,742 $ $ 20,970,135 $ 21,494,686 Town Court General Fund $ 1,181,757 $ $ 1,126,102 $ 1,126,278 Department total $ 1,181,757 $ $ 1,126,102 $ 1,126,278 Public Works General Fund $ 6,551,005 $ $ 6,392,019 $ 6,756,365 Grants & Contributions Fund 1,171,000 268,677 Highway Fund 7,656,153 6,105,105 7,950,951 Stormwater Utility Fund 2,403,013 1,395,406 2,624,474 PAG/RTA Fund 275,000 137,290 1,200,000 Townwide Roadway Impact Fee Fund 1,051,232 4,287 955,294 Department total $ 19,107,403 $ $ 14,302,784 $ 19,487,084 Water Utility Water Utility Fund $ 22,256,516 $ $ 20,881,736 $ 22,667,060 Water Resources Dev Impact Fee Fund 26,450,132 19,950,132 7,616,054 Department total $ 48,706,648 $ $ 40,831,868 $ 30,283,114 * Expenditures/expenses by department Fiscal year 2027 Town of Oro Valley Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year. Department/Fund 6/23 Arizona Auditor General Schedule F Official City/Town Budget Forms Full-time equivalent (FTE) Employee salaries and hourly costs Retirement costs Healthcare costs Other benefit costs Total estimated personnel compensation 2027 2027 2027 2027 2027 2027 337.78 $ 27,317,084 $ 3,114,388 $ 3,305,254 $ 3,123,869 $ 36,860,595 Highway Fund 12.00 $ 1,032,171 $ 123,654 $ 123,458 $ 118,187 $ 1,397,470 Community Center Fund 24.33 1,238,138 35,631 38,969 132,092 1,444,830 Total special revenue funds 36.33 $ 2,270,309 $ 159,285 $ 162,428 $ 250,279 $ 2,842,300 Water Utility Fund 40.48 $ 2,971,858 $ 352,887 $ 490,755 $ 296,570 $ 4,112,071 Stormwater Utility Fund 9.73 727,028 85,198 88,225 81,561 982,013 Total enterprise funds 50.21 $ 3,698,886 $ 438,085 $ 578,981 $ 378,131 $ 5,094,083 Total all funds 424.31 $ 33,286,279 $ 3,711,758 $ 4,046,662 $ 3,752,280 $ 44,796,979 Fund Town of Oro Valley Full-time employees and personnel compensation Fiscal year 2027 General Fund Special revenue funds Enterprise funds 6/23 Arizona Auditor General Schedule G Official City/Towns Budget Forms FY 26/27 Manager's Recommended Budget $130,038,634 Refinement of personnel budget amounts (17,124) Increased outside legal services in the Legal department 75,000 Refinement of personnel budget amounts 73,658 Refinement of personnel budget amounts 691 La Cañada Bridge Deck Repair (Northbound) - moved from Grants Fund and reduced to local match only 5.7%199,500 Moved purchase of grant funded transit vehicles from the Grants Fund to the Capital Fund and reduced outflow to 20% local match only 180,465 La Cañada Bridge Deck Repair (Northbound) - moved to Highway Fund (1,160,000) Rancho Vistoso Bridge Deck Repair over Honeybee Wash - reduced to local match only and moved to Highway Fund (685,000) Transit vehicles replacements reduced outflow to 20% local match only (902,323) Water Utility Fund Refinement of personnel budget amounts 1,255 Refinement of personnel budget amounts 453 Reduced carryover for Sierra Wash at Via Mandarina Drainage Improvements CIP project (5,842) Increased cost estimate for Catalina Ridge Channel Modification: Maintenance Access Ramp 61,358 New project - Nanini Wash at N Paseo Del Norte Erosion Mitigation 125,000 Total Change (2,052,909) FY 26/27 Tentative Budget $127,985,725 Stormwater Utility Fund Grants & Contributions Fund Changes from Recommended Budget of $130.0M General Fund Community Center Fund Highway Fund Capital Fund Town of Oro Valley 10-Year Capital Improvement Program - Tentative Budget 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 Page 1 of 7 Town of Oro Valley 10-Year Capital Improvement Program - Tentative Budget 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 Facility 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 Page 2 of 7 Town of Oro Valley 10-Year Capital Improvement Program - Tentative Budget 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 2,672,645 2,672,800 2,555,100 2,427,400 2,378,400 2,424,900 2,488,100 2,453,500 2,520,900 2,584,900 25,178,645 680 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 1,402,076 1,666,800 1,783,600 1,661,400 1,750,400 1,801,400 1,813,600 1,867,000 1,922,400 1,974,400 17,643,076 Public Facilities, Vehicles & Equipment Page 3 of 7 Town of Oro Valley 10-Year Capital Improvement Program - Tentative Budget 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 886,016 583,921 2,368,007 2,561,528 3,380,313 400,000 10,179,785 Canada Golf Course Drainage Improvements Stormwater Utility Fund - - - - - - 250,000 - - - 250,000 Carmack Wash Upper Tributary C Flood Control and Channel Improvement Stormwater Utility Fund - - - - 3,380,313 - - - - - 3,380,313 Catalina Ridge Channel Modification: Maintenance Access Ramp Stormwater Utility Fund 448,858 - - - - - - - - - 448,858 Conquistador Golf Course Drainage Improvements Stormwater Utility Fund - - - - - - 150,000 - - - 150,000 Gravel Pit Wash at Pomegranate Rd. Erosion Mitigation Stormwater Utility Fund - 433,921 - - - - - - - - 433,921 Lower Highland Wash Flood Control and Channel Improvement Project Stormwater Utility Fund - - 2,368,007 - - - - - - - 2,368,007 Mutterer’s Wash Flood Control and Channel Improvement Stormwater Utility Fund - - - 2,561,528 - - - - - - 2,561,528 Nanini Wash at N Paseo Del Norte Erosion Mitigation Stormwater Utility Fund 125,000 - - - - - - - - - 125,000 Sierra Wash at Glover Rd Infrastructure Repair & Rehabilitation*Stormwater Utility Fund 312,158 - - - - - - - - - 312,158 Storm Drain 89 Erosion Mitigation Stormwater Utility Fund - 150,000 - - - - - - - - 150,000 Page 4 of 7 Town of Oro Valley 10-Year Capital Improvement Program - Tentative Budget 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 6,593,471 18,660,516 15,563,880 36,316,726 30,791,628 15,991,677 9,896,967 12,140,596 4,318,664 4,365,274 154,639,401 (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 Highway Fund - 199,500 - - - - - - - - 199,500 La Cañada Bridge Deck Repair (Northbound) Highway Fund 199,500 - - - - - - - - - 199,500 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 Palisades Road Widening (1st Ave 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 - 3,680,016 - - - - - - - - 3,680,016 Page 5 of 7 Town of Oro Valley 10-Year Capital Improvement Program - Tentative Budget 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) 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 Page 6 of 7 Town of Oro Valley 10-Year Capital Improvement Program - Tentative Budget 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 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 24,215,466 28,466,237 24,276,987 45,466,654 39,988,341 24,453,577 15,720,067 17,739,096 9,539,564 14,640,174 244,506,165 Page 7 of 7 FY 2026/27Adopted Tentative Budget - BFC June 16, 2026 FY 2026/27 TENTATIVE BUDGET Tentative Budget totals $127,985,725 $2,052,909 decrease from the Recommended Budget $23,513,825 (15.5%) decrease from the FY 2025/26 Adopted Budget, driven primarily by the expected completion of the NWRRDS project in FY27, along with retiring debt, reduced contingency, and lower excess PSPRS contributions. FY2026/27 expenditure limitation calculated by Economic Estimates Commission: $179,794,919 General Fund Budget totals $55,018,570 $57,876 (0.1%) increase from the Recommended Budget ($54,960,694) $382,039 (0.7%) increase from FY 2025/26 Adopted Budget ($54,636,531) Tentative Budget brings forward all changes from Manager’s Recommended Budget as outlined in the Council communication, including updated and revised CIP budget figures Tentative Budget establishes the overall expenditure limitation Structurally balanced budget reflects the careful allocation of available resources Estimated Ending Fund Balances Beginning Fund Balance Revenue Transfers In Personnel O&M Capital Debt Service Contingency Total Budget Appropriation Transfers Out Ending Fund Balance General Fund 16,090,550 59,645,003 - 36,860,595 16,132,975 25,000 - 2,000,000 55,018,570 7,693,886 15,023,098 Special Revenue Funds Community Center Fund 1,033,918 8,728,936 - 1,444,830 7,048,974 150,000 253,325 500,000 9,397,129 - 865,726 Highway Fund 2,015,023 4,772,671 3,000,000 1,397,470 1,246,991 5,106,490 - 200,000 7,950,951 - 2,036,743 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 - - 7,103,904 - 2,000,000 9,103,904 3,000,000 13,253,284 Grants & Contributions 85,164 1,008,600 123,200 - 1,009,400 - - 100,000 1,109,400 - 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 6,546,045 23,107,500 - 4,112,071 11,957,720 2,270,000 3,827,269 500,000 22,667,060 2,402,852 5,083,632 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 1,643,746 2,084,742 - 982,013 456,445 936,016 - 250,000 2,624,474 - 1,354,014 61,329,810 107,261,735 14,131,434 44,796,979 43,275,274 23,541,410 8,709,486 7,662,576 127,985,725 14,131,434 48,268,396 SOURCES USES FY 2026/27 Tentative Budget - $127,985,725 By Category:By Function: FY 2026/27 Tentative General Fund Budget - $55,018,570 By Category:By Function: FY 2026/27 Sources: $127,985,725 FY 2026/27 CAPITAL IMPROVEMENT PROGRAM (CIP): $24,215,466 FINAL NOTES AND NEXT STEPS Tentative Budget adoption sets the maximum spending ceiling at $127,985,725 Expenditure authority may only be reallocated or reduced Council has authority to amend budget throughout the fiscal year (but cannot increase expenditure authority) Published Tentative Budget for two consecutive weeks Final Budget approval and public hearing set for June 17 th regular session