HomeMy WebLinkAboutPackets - Council Packets (2055) AGENDA
ORO VALLEY TOWN COUNCIL
REGULAR AND STUDY SESSION
SEPTEMBER 16, 2026
ORO VALLEY COUNCIL CHAMBERS
11000 N. LA CAÑADA DRIVE
For information on public comment procedures, please see the instructions for in person and/or
virtual speakers at the end of the agenda.
To watch and/or listen to the public meeting online, please visit https://www.orovalleyaz.gov/town/
departments/town-clerk/meetings-and-agendas
Executive Sessions – Upon a vote of the majority of the Town Council, the Council may enter into
Executive Sessions pursuant to Arizona Revised Statutes §38-431.03 (A)(3) to obtain legal advice
on matters listed on the Agenda.
REGULAR SESSION AT OR AFTER 6:00 PM
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
UPCOMING MEETING ANNOUNCEMENTS
MAYOR AND COUNCIL REPORTS ON CURRENT EVENTS
TOWN MANAGER'S REPORT ON CURRENT EVENTS
ORDER OF BUSINESS: MAYOR WILL REVIEW THE ORDER OF THE MEETING
INFORMATIONAL ITEMS
CALL TO AUDIENCE – At this time, any member of the public is allowed to address the Mayor and Town
Council on any issue not listed on today’s agenda. Pursuant to the Arizona Open Meeting Law, individual
Council 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 Mayor and Council 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.
PRESENTATIONS
1.Presentation and possible discussion of the Town's FY 25/26 Quarterly Financial Update through
June 2026
CONSENT AGENDA
(Consideration and/or possible action)
A.Minutes - September 2, 2026
B.(Re)appointments to the Budget and Finance Commission (BFC), the Corrections Officer Retirement
Plan (CORP) Local Board, and the Public Safety Personnel Retirement System (PSPRS) Local
Board
C.Resolution No. (R)26-43, authorizing the Parks and Recreation Department to apply for the Land and
Water Conservation Fund Grant, for recreational amenity improvements to the Vistoso Trails Nature
Preserve
REGULAR AGENDA
FUTURE AGENDA ITEMS (The Council may bring forth general topics for future meeting agendas. Council
may not discuss, deliberate or take any action on the topics presented pursuant to ARS 38-431.02H)
ADJOURNMENT OF THE REGULAR SESSION
STUDY SESSION
CALL TO ORDER
STUDY SESSION AGENDA
1.PRESENTATION AND DISCUSSION REGARDING UPDATES AND REFINEMENTS TO THE
TOWN'S ANNEXATION STRATEGY
ADJOURNMENT
POSTED: 9/10/26 at 5:00 p.m. by ck
The Mayor and Council may, at the discretion of the meeting chairperson, discuss any Agenda item.
When possible, a packet of agenda materials as listed above is available for public inspection at least 24
hours prior to the Council meeting in the office of the Town Clerk 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 Council meeting at 229-4700.
PUBLIC COMMENT ON AGENDA ITEMS
The Town has modified its public comment procedures for its public bodies to allow for limited remote/virtual
comment via Zoom. The public may provide comments remotely only on items posted as required Public
Hearings, provided the speaker registers 24 hours prior to the meeting. For all other items, the public may
complete a blue speaker card to be recognized in person by the Mayor, according to all other rules and
procedures. Written comments can also be emailed to Town Clerk Michael Standish
at mstandish@orovalleyaz.gov for distribution to the Town Council prior to the meeting. Further instructions
to speakers are noted below.
INSTRUCTIONS TO IN-PERSON SPEAKERS
Members of the public shall be allowed to speak on posted public hearings and during Call to Audience
when attending the meeting in person. The public may be allowed to speak on other posted items on the
agenda at the discretion of the Mayor.
If you wish to address the Town Council 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 Town Clerk. Please indicate on
the blue 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.
Please step forward to the podium when the Mayor calls on you to address the Council.
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 Council. You will only be allowed to
address the Council one time regarding the topic being discussed.
3. Please limit your comments to 3 minutes.
4. During Call to Audience, you may address the Council on any matter that is not on the agenda.
5. Any member of the public speaking must speak in a courteous and respectful manner to those
present.
INSTRUCTIONS TO VIRTUAL SPEAKERS FOR PUBLIC HEARINGS
Members of the public may attend the meeting virtually and request to speak virtually on any agenda item
that is listed as a Public Hearing. If you wish to address the Town Council virtually during any listed Public
Hearing, please complete the online speaker form by clicking here https://forms.orovalleyaz.gov/forms/
bluecard at least 24 hours prior to the start of the meeting. You must provide a valid email address in order
to register. Town Staff will email you a link to the Zoom meeting the day of the meeting. After being
recognized by the Mayor, staff will unmute your microphone access and you will have 3 minutes to address
the Council. Further instructions regarding remote participation will be included in the email.
Thank you for your cooperation.
Town Council Regular Session 1.
Meeting Date:09/16/2026
Presentation and possible discussion of the Town's FY 25/26 Quarterly Financial Update through June 2026
Subject
Presentation and possible discussion of the Town's FY 25/26 Quarterly Financial Update through June 2026
Summary
Please reference attachments to this agenda item.
Attachments
Consolidated February 2026 Monthly Financial Report
Town Manager’s Office
TOWN COUNCIL REPORT
DATE: September 8, 2026
TO: Mayor and Council
FROM: Jeff Wilkins, Town Manager
David Gephart, Chief Financial Officer
SUBJECT: June 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 June 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: June 2026
Budget YTD Actual Budget YTD Actual
Revenues
Local Sales Tax 28,708,825$ 26,682,630$ 32,470,107$ 28,834,129$ 89%28,834,129$
State Shared Revenues 20,432,937 20,602,911 19,863,884 20,007,575 101%20,007,575
Licenses & Permits 1,673,022 1,798,222 2,116,123 2,799,760 132%2,799,760
Grants 659,982 463,023 466,851 715,910 153%715,910
Intergovernmental 1,967,122 2,201,884 2,320,362 2,489,535 107%2,489,535
Charges for Service 2,966,467 3,063,824 3,050,223 3,198,047 105%3,198,047
Other Revenue 684,000 1,669,644 916,480 1,041,769 114%1,041,769
Total Revenues 57,092,355$ 56,482,138$ 61,204,030$ 59,086,724$ 97%59,086,724$
Budget YTD Actual Budget YTD Actual
Uses
Personnel Services 36,476,126$ 34,760,096$ 37,457,276$ 35,344,380$ 94%36,224,619$
Operations and Maintenance 14,805,325 13,028,919 15,317,790 13,628,578 89%14,007,790
Capital Outlay 506,600 336,530 211,000 128,883 61%211,000
Transfers Out 9,403,341 9,648,709 8,831,579 10,820,285 123%10,831,579
Total Uses 61,191,392$ 57,774,254$ 61,817,645$ 59,922,125$ 97%61,274,988$
Change in Fund Balance
Budget YTD Actual Budget YTD Actual
Total Revenues 57,092,355$ 56,482,138$ 61,204,030$ 59,086,724$ 59,086,724$
Total Uses (61,191,392) (57,774,254) (61,817,645) (59,922,125) (61,274,988)
Change in Fund Balance (4,099,037)$ (1,292,116)$ (613,615)$ (835,401)$ (2,188,264)$
Beginning Fund Balance 20,702,401$ 20,702,401$
Estimated Ending Fund Balance 19,867,000$ 18,514,137$
Note: The estimated ending fund balance exceeds the Town's 25% expenditure reserve policy by a margin of about $7.6 million.
Year End Estimate
Year End Estimate
Year End Estimate % of
Budget
Prior Year (FY 2024/25) % of
Budget
Current Year (FY 2025/26)
100% through the fiscal year (Period 12 of 12) Page 1 of 14
General Fund
Financial Status Fiscal Year to Date: June 2026
Local Sales Tax Revenue
Budget YTD Actual Budget YTD Actual
Construction 5,875,681$ 3,876,815$ 5,086,266$ 2,714,731$ 53%2,714,731$
Utilities 4,097,824 3,958,432 4,316,890 3,887,352 90%3,887,352
Retail 9,447,680 9,345,646 11,836,368 11,313,435 96%*11,313,435
Remote Seller 1,914,724 1,881,094 2,444,773 2,699,917 110%*2,699,917
Bed Tax 2,464,858 2,523,496 2,464,858 2,251,312 91%2,251,312
Restaurant & Bar 2,726,271 2,852,219 3,726,636 3,368,784 90%*3,368,784
Other 1,465,987 1,565,902 1,941,265 1,951,522 101%*1,951,522
Cable Franchise 715,800 679,027 653,051 647,076 99%647,076
Local Sales Tax Total 28,708,825$ 26,682,630$ 32,470,107$ 28,834,129$ 89%28,834,129$
State Shared Revenue
Budget YTD Actual Budget YTD Actual
State Income Tax 10,276,631$ 10,277,099$ 9,522,662$ 9,514,314$ 100%9,514,314$
State Sales Tax 7,300,876 7,417,134 7,376,599 7,561,930 103%7,561,930
Vehicle License Tax 2,520,803 2,621,504 2,629,797 2,655,199 101%2,655,199
Smart and Safe 334,627 287,173 334,826 276,132 82%276,132
State Shared Total 20,432,937$ 20,602,911$ 19,863,884$ 20,007,575$ 101%20,007,575$
Year End Estimate % of
Budget
FY 2024/25 FY 2025/26
Favorable actual to budget variance of $143,691 or 0.7%:
The favorable budget variance was due to state shared sales tax and
vehicle license tax revenues. Total state shared revenues performed in
line with expectations, with the exception of Smart and Safe revenues.
Although statewide cannabis sales tax collections were up compared to
last year, distributions to cities and towns declined because revenues
were first applied to cover state administrative and enforcement costs
before being allocated to cities and towns.
Unfavorable actual to budget variance of $3.64 million or 11.2%.
Of this, $586,190 reflects sales tax that remained in the Community
Center Fund rather than moving to the General Fund as budgeted (see
asterisked categories above), not a real revenue shortfall. The budget
assumed a full year under the reallocation of this sales tax from the
Community Center Fund, but the transition wasn't implemented until two
months into the year, so that amount was collected in and remains in the
Community Center Fund. The figures below adjust for this by combining
both funds' collections, so they differ from the General Fund-only
percentages shown in the table above. On this adjusted basis, the total
variance is $3.05 million, or 9.4% of budget, driven primarily by
Construction, which finished at 53% of budget, a $2.37 million shortfall
accounting for 78% of the adjusted total, reflecting a general slowdown in
construction activity along with known delays at the Marketplace hotel and
Vistoso Golf Club apartment projects. Restaurant & Bar finished at 93.1%
of budget (adjusted), a $257,449 shortfall; Retail finished at 98.6%
(adjusted), essentially on target; Remote Seller exceeded budget by
13.9% (adjusted).
Please refer to Appendix 4 for a detailed breakdown of local sales tax
collections.
Year End Estimate FY 2024/25 FY 2025/26 % of
Budget
$9.5
$7.6
$2.7
$0.3
$0
$2
$4
$6
$8
$10
$12
State Income Tax State Sales Tax Vehicle License
Tax
Smart and Safe
Mi
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s
PY YTD Actual CY YTD Actual Budget
$2.7
$3.9
$11.3
$2.7 $2.3
$3.4
$2.0
$0.6
$0
$2
$4
$6
$8
$10
$12
$14
Mi
l
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i
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n
s
PY YTD Actual CY YTD Actual Budget
100% through the fiscal year (Period 12 of 12) Page 2 of 14
General Fund
Financial Status Fiscal Year to Date: June 2026
Licenses & Permits Revenue
Budget YTD Actual Budget YTD Actual
Business Licenses & Permits 200,200$ 224,808$ 255,000$ 230,362$ 90%230,362$
Residential Building Permits 951,806 1,053,074 908,066 1,545,097 170%1,545,097
Commercial Building Permits 360,856 318,821 750,077 692,676 92%692,676
Other Building Permits and Fees 160,160 201,518 202,980 331,624 163%331,624
Licenses & Permits Total 1,673,022$ 1,798,222$ 2,116,123$ 2,799,760$ 132%2,799,760$
Grants Revenue
Budget YTD Actual Budget YTD Actual
Federal grants 509,415$ 384,104$ 375,000$ 541,009$ 144%541,009$
State Grants 150,567 78,920 91,851 174,901 190%174,901
Grants Total 659,982$ 463,023$ 466,851$ 715,910$ 153%715,910$
Actual to budget variance of $269,230 or 57.7%:
Grant revenues performed better than expected. The majority of grants
are awarded to the Police Department on a reimbursement basis for
federal and state programs, and these can fluctuate based on factors such
as officer scheduling, overtime, and the timing of reimbursements and
awards.
FY 2024/25 FY 2025/26 % of
Budget
Year End Estimate FY 2024/25 FY 2025/26 % of
Budget
A total of 106 Single Family Residential (SFR) permits have been issued
through June (107 budgeted for the year).
Favorable actual to budget variance of $683,637 or 32%:
Building permits performed better than expected, with a significant portion
of this driven by activity related to the Marketplace apartments. This was
further supported by other unanticipated grading and fire permits and fees
tied to the project.
Year End Estimate
$0.2
$1.5
$0.7
$0.3
$0.0
$0.5
$1.0
$1.5
$2.0
Business
Licenses &
Permits
Residential
Building Permits
Commercial
Building Permits
Other Building
Permits and
Fees
Mi
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PY YTD Actual CY YTD Actual Budget
$0.5
$0.2
$0.0
$0.1
$0.2
$0.3
$0.4
$0.5
$0.6
Federal grants State Grants
Mi
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PY YTD Actual CY YTD Actual Budget
100% through the fiscal year (Period 12 of 12) Page 3 of 14
General Fund
Financial Status Fiscal Year to Date: June 2026
Intergovernmental Revenue
Budget YTD Actual Budget YTD Actual
School Resource Officers 75,567$ 251,029$ 409,502$ 354,888$ 87%354,888$
RTA Reimbursements 1,886,000 1,939,978 1,904,860 2,131,681 112%2,131,681
PC Library District Reimburse 5,555 10,877 6,000 2,966 49%2,966
Intergovernmental Total 1,967,122$ 2,201,884$ 2,320,362$ 2,489,535$ 107%2,489,535$
Charges for Service Revenue
Budget YTD Actual Budget YTD Actual
Enterprise Funds Cost Allocation 1,701,759$ 1,701,759$ 1,641,347$ 1,641,347$ 100%1,641,347$
Recreation Fees 856,640 1,013,030 978,950 1,036,851 106%1,036,851
Development Fees 92,100 104,892 90,110 163,433 181%163,433
Court Fees 135,000 114,040 115,000 129,972 113%129,972
Other 180,968 130,102 224,816 226,444 101%226,444
Charges for Service Total 2,966,467$ 3,063,824$ 3,050,223$ 3,198,047$ 105%3,198,047$
Favorable actual to budget variance of $147,824 or 4.8%:
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 revenue finished the year 5.9% above budget driven by
field & court rentals and swimming pool user fees.
FY 2024/25 FY 2025/26
FY 2024/25 FY 2025/26 % of
Budget
% of
Budget Year End Estimate
Year End Estimate
Favorable actual to budget variance of $172,517 or 7.4%:
Greater than expected RTA reimbursements from the Regional
Transportation Authority for Sun Shuttle Dial-a-Ride operations in Oro
Valley based on ridership.
School Resource Officer reimbursements came in below budget by about
$55,000 (13%). These payments are based on actual hours worked at the
schools and individual officers assigned, and can differ from budget as a
result.
$0.4
$2.1
$0.0
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
School Resource
Officers
RTA Reimbursements PC Library District
Reimburse
Mi
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s
PY YTD Actual CY YTD Actual Budget
$1.6
$1.0
$0.2 $0.1 $0.2
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
$1.4
$1.6
$1.8
Enterprise
Funds Cost
Allocation
Recreation
Fees
Development
Fees
Court Fees Other
Mi
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PY YTD Actual CY YTD Actual Budget
100% through the fiscal year (Period 12 of 12) Page 4 of 14
General Fund
Financial Status Fiscal Year to Date: June 2026
Other Revenue
Budget YTD Actual Budget YTD Actual
Fines 55,000$ 67,674$ 68,680$ 55,067$ 80%55,067$
Interest Earnings 400,000 857,345 637,500 696,429 109%696,429
Miscellaneous 229,000 744,625 210,300 290,273 138%290,273
Other Revenue Total 684,000$ 1,669,644$ 916,480$ 1,041,769$ 114%1,041,769$
Year End Estimate
Favorable actual to budget variance of $125,289 or 13.7%:
Other revenues finished 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.
% of
Budget
FY 2024/25 FY 2025/26
$0.1
$0.7
$0.3
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
Fines Interest Earnings Miscellaneous
Mi
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PY YTD Actual CY YTD Actual Budget
100% through the fiscal year (Period 12 of 12) Page 5 of 14
General Fund
Financial Status Fiscal Year to Date: June 2026
Expenditures by Department
Budget YTD Actual Budget YTD Actual
Clerk 564,954$ 514,388$ 446,275$ 445,615$ 99.9%433,976$
Community & Econ. Dev. 4,289,037 3,652,543 4,246,511 3,567,239 84.0%3,682,541
Council 241,102 216,145 216,163 201,830 93.4%203,163
Finance 867,767 856,458 885,087 876,484 99.0%884,657
Non-Departmental 3,048,603 3,136,932 3,052,282 2,998,059 98.2%3,052,282
Human Resources 764,005 667,283 744,887 709,168 95.2%712,503
Information Technology 6,022,838 5,127,812 5,954,496 5,334,680 89.6%5,794,376
Town Attorney's Office 1,175,969 1,139,202 1,193,587 928,263 77.8%935,119
Town Manager 1,742,926 1,654,950 1,797,939 1,692,403 94.1%1,740,298
Parks & Recreation 4,782,096 4,646,070 5,230,510 4,642,199 88.8%4,812,523
Police 20,220,736 19,361,447 21,333,810 20,344,937 95.4%20,686,710
Public Works 6,944,467 6,133,031 6,702,762 6,310,776 94.2%6,378,937
Town Court 1,123,551 1,019,285 1,181,757 1,050,186 88.9%1,126,323
Total Department Expenditures 51,788,051$ 48,125,545$ 52,986,066$ 49,101,840$ 92.7%50,443,409$
Year End Estimate % of
Budget
FY 2024/25 FY 2025/26
$0.4
$3.6
$0.2 $0.9
$3.0
$0.7
$5.3
$0.9 $1.7
$4.6
$20.3
$6.3
$1.1
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
Mi
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PY YTD Actual CY YTD Actual Budget
Actual to budget favorable variance of $3.9 million or 7.4%:
Community & Economic Development:
Personnel expenditures finished below budget due to turnover in two Building Inspector positions, the Economic Development Program Manager,
and a vacancy in the Code Compliance Specialist position. Operating expenditures also finished below budget, primarily due to timing within the in-
house Economic Development and Tourism program, where several planned initiatives had not yet begun by year end.
Information Technology: Operations and maintenance finished under budget, reflecting savings from software subscription prepayments made in
the prior year.
Town Attorneys' Office: Personnel costs finished approximately 22% under budget, primarily due to vacancies in the Town Attorney and Chief Civil
Deputy Attorney positions.
Parks & Recreation: Personnel finished 7% under budget, primarily due to savings in Lifeguards and Facility Attendants in Aquatics. Operations
and maintenance finished 16.6% under budget, due to maintenance on the Vistoso Trails Nature Preserve being carried into next year, along with
savings in special events, contracted programs, and field supplies.
Police: Personnel costs reflected wage adjustments from the most recent labor agreement. PSPRS excess contribution savings, combined with
vacancy savings and benefit election differences, resulted in the department finishing within budget. Operations and maintenance finished 4.5%
under budget, primarily due to savings in field supplies, outside professional services, and travel and training.
Public Works: Operations and maintenance finished $186,000, or 7.3%, under budget, reflecting savings in fuel and vehicle repair and
maintenance. Fuel savings were concentrated in Transit operations and persisted despite sharply rising prices beginning in March.
100% through the fiscal year (Period 12 of 12) Page 6 of 14
Highway Fund
Financial Status Fiscal Year to Date: June 2026
`
Budget YTD Actual Budget YTD Actual
Sources
Licenses & Permits 25,000$ 40,389$ 30,000$ 48,054$ 160%
Highway User Revenue 4,283,146 4,262,644 4,456,367 4,228,667 95%
Interest Earnings 150,000 123,210 99,000 153,554 155%
Miscellaneous 3,000 8,825 2,500 67,738 2710%
Transfers In 4,000,000 4,000,000 2,000,000 2,000,000 100%
Total Sources 8,461,146$ 8,435,067$ 6,587,867$ 6,498,013$ 99%
Budget YTD Actual Budget YTD Actual
Expenditures
Personnel 1,333,798$ 1,320,865$ 1,348,218$ 1,350,683$ 100%
O&M 1,306,505 1,251,427 1,433,935 1,311,238 91%
Capital Outlays 5,456,000 4,876,765 4,674,000 3,099,156 66%
Total Expenditures 8,096,303$ 7,449,056$ 7,456,153$ 5,761,077$ 77%
Change in Fund Balance
Budget YTD Actual Budget YTD Actual
Total Sources 8,461,146$ 8,435,067$ 6,587,867$ 6,498,013$
Total Expenditures (8,096,303) (7,449,056) (7,456,153) (5,761,077)
Change in Fund Balance 364,843$ 986,011$ (868,286)$ 736,936$
Beginning Fund Balance 1,598,787 1,598,787$
Estimated Ending Fund Balance 730,501 2,335,723$
Prior Year (FY 2024/25) Current Year (FY 2025/26) % of
Budget
% of
Budget
Highway Fund revenues and expenditures performed generally in line with expectations through June. Due to capital projects not
completed this year, the fund balance ended approximately $1.6 million greater than budgeted.
Revenues:
Actual to budget unfavorable variance of $89,854, or 1.4%. HURF came in 5.1% under budget, while interest earnings and licenses and
permits outperformed, with interest exceeding budget by approximately $55,000. Miscellaneous revenues also came in above budget,
driven by insurance reimbursements and asset sale proceeds. The $2 million transfer from the Capital Fund supported road
improvement projects.
Expenditures:
Actual to budget favorable variance of $1.7 million, or 22.7%. Personnel exceeded budget by approximately 0.2%, due to pay range
adjustments not included in the original forecast.
Operations and maintenance finished $123,000, or 8.6%, under budget, primarily on lower demand for street maintenance, waste
disposal, and field supplies.
Capital outlay finished approximately $1.6 million under budget due to several incomplete projects. The Traffic Signal at Tangerine
Rd/Mussette Dr ($675,971) and Operations Laydown Yard Electricity ($33,000) projects carried over into next year. The Lambert Lane
MUP project ($350,000) was not completed and is being reassessed following RTA Next's inclusion of Lambert Lane improvements.
Shannon Road Improvements left $386,000 of its $400,000 budget unspent, as RTA Next's larger widening project made the planned
interim work unnecessary.
100% through the fiscal year (Period 12 of 12) Page 7 of 14
Community Center Fund
Financial Status Fiscal Year to Date: June 2026
Budget YTD Actual Budget YTD Actual
Revenues
Local Sales Tax 3,879,440$ 3,904,926$ -$ 586,190$ na 586,190$
Contracted Operating Revenues 5,240,575 6,418,398 5,625,078 6,783,541 121%6,679,500
Town Operating Revenues 1,386,052 1,519,328 1,534,043 1,647,052 107%1,646,901
Other Revenues 179,332 194,490 60,172 92,067 153%89,442
Total Revenues 10,685,399$ 12,037,142$ 7,219,293$ 9,108,850$ 126%9,002,034$
Budget YTD Actual Budget YTD Actual
Uses
Contracted Operating Expenditures 5,343,893$ 5,638,594$ 5,728,637$ 5,978,700$ 104%5,903,295$
Town Operating Expenditures 2,225,568 2,331,335 2,427,461 2,263,168 93%2,336,724
Capital Outlay 1,463,971 1,136,453 2,408,700 1,883,420 78%2,008,700
Transfers Out 1,717,149 1,717,149 172,968 172,968 100%172,968
Total Uses 10,938,287$ 11,011,238$ 10,737,766$ 10,298,256$ 96%10,421,687$
Change in Fund Balance
Budget YTD Actual Budget YTD Actual
Total Revenues 10,685,399$ 12,037,142$ 7,219,293$ 9,108,850$ 9,002,034$
Total Uses (10,938,287) (11,011,238) (10,737,766) (10,298,256) (10,421,687)
Change in Fund Balance (252,888)$ 1,025,904$ (3,518,473)$ (1,189,406)$ (1,419,653)$
Beginning Fund Balance 2,921,900 2,921,900$ 2,921,900$
Estimated Ending Fund Balance 1,732,494 1,732,494$ 1,502,247$
Supplemental: Operating Analysis
Budget YTD Actual Budget YTD Actual
Golf Contractor
Operating Revenues $ 5,240,575 $ 6,418,398 $ 5,625,078 $ 6,783,541 121% $ 6,679,500
Operating Expenditures 5,343,893 5,638,594 5,728,637 5,978,700 104% 5,903,295
Net Operating Income/(Loss) (103,318)$ 779,804$ (103,559)$ 804,840$ 776,205$
Town Operations
Operating Revenues $ 1,386,052 $ 1,519,328 $ 1,534,043 $ 1,647,052 107% $ 1,646,901
Operating Expenditures 2,225,568 2,331,335 2,427,461 2,263,168 93%2,336,724
Net Operating Income/(Loss) (839,516)$ (812,008)$ (893,418)$ (616,116)$ (689,823)$
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.
Prior Year (FY 2024/2025) Current Year (FY 2025/26)
Year End
Estimate
% of
Budget
Year End
Estimate
Prior Year (FY 2024/25) Current Year (FY 2025/26) % of
Budget
Year End
Estimate
% of
Budget
Year End
Estimate
100% through the fiscal year (Period 12 of 12) Page 8 of 14
Community Center Fund
Financial Status Fiscal Year to Date: June 2026
Local Sales Tax Revenue
Budget YTD Actual Budget YTD Actual
Retail 2,361,920$ 2,336,411$ -$ 353,113$ -353,113$
Remote Seller 478,681 470,274 - 85,236 -85,236
Restaurant & Bar 681,568 713,055 - 100,403 -100,403
Other 357,271 385,187 - 47,438 -47,438
Local Sales Tax Total 3,879,440$ 3,904,926$ -$ 586,190$ -586,190$
Contracted Operating Revenue
Budget YTD Actual Budget YTD Actual
Golf Revenue, Trail & Cart Fees 2,572,302$ 3,452,744$ 2,818,625$ 3,551,199$ 126%3,404,500$
Member Dues 1,501,560 1,729,349 1,590,560 1,918,464 121%1,915,000
Food & Beverage (Overlook)771,858 865,944 814,633 903,253 111%911,000
Merchandise & Other 394,855 370,361 401,260 410,625 102%449,000
Contracted Revenue Total 5,240,575$ 6,418,398$ 5,625,078$ 6,783,541$ 83%6,679,500$
Contracted golf revenues exceeded budget by approximately $1.2
million, or 20.6%, driven by strong membership numbers and increased
public play. Through June, 116,950 rounds were played, exceeding
budget by 11.4%, though reflecting a 1.3% decrease compared to the
prior year.
Please refer to Appendix 3 for a more in-depth analysis of golf revenues,
expenses, and historical comparisons
FY 2024/25 FY 2025/26
FY 2024/25 FY 2025/26
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.
Note: Estimated sales tax collections on golf operations for FY 2025/26
are $170,293.
% of
Budget
Year End
Estimate
% of
Budget
Year End
Estimate
$3.6
$1.9
$0.9
$0.4
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
Golf Revenue,
Trail & Cart
Fees
Member Dues Food &
Beverage
(Overlook)
Merchandise &
Other
Mi
l
l
i
o
n
s
PY YTD Actual CY YTD Actual Budget
$0.0 $0.0 $0.0 $0.0
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
Retail Remote Seller Restaurant &
Bar
Other
Mi
l
l
i
o
n
s
PY YTD Actual CY YTD Actual Budget
100% through the fiscal year (Period 12 of 12) Page 9 of 14
Community Center Fund
Financial Status Fiscal Year to Date: June 2026
Town Operating Revenue
Budget YTD Actual Budget YTD Actual
Daily Drop-Ins 76,000$ 71,709$ 75,625$ 62,636$ 83%62,636$
Member Dues 832,038 996,505 990,420 1,108,295 112%1,108,295
Recreation Programs 388,850 418,778 382,500 371,372 97%371,372
Facility Rental Income 89,164 32,336 85,498 104,749 123%104,598
Town Operating Revenue Total 1,386,052$ 1,519,328$ 1,534,043$ 1,647,052$ 107%1,646,901$
Other Revenue
Budget YTD Actual Budget YTD Actual
Interest Income 16,682$ 32,991$ 22,500$ 57,631$ 256% 55,000
HOA Contributions 159,050 159,050 34,050 34,050 100% 34,050
Miscellaneous 3,600 2,449 3,622 386 11% 392
Other Revenue Total 179,332$ 194,490$ 60,172$ 92,067$ 153%89,442$
FY 2024/25
FY 2024/25 FY 2025/26 % of
Budget
Year End
Estimate
% of
Budget
Town operating revenues finished 7.4% above budget, driven by Council-
approved rate increases effective January 1, 2026. Lower daily drop-in
and recreation program revenues were more than offset by higher
member dues and facility rental income.
The FY 2025/26 HOA contribution budget pertains to the HOAs
associated with the 9-hole Pusch Ridge course, as FY 2024/25 was the
final year of agreed-upon annual contributions to golf from HOAs on the
36-hole course. Interest income exceeded budget by $35,131, or 156%.
FY 2025/26 Year End
Estimate
$0.1
$1.1
$0.4
$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
PY YTD Actual CY YTD Actual Budget
$0.1
$0.0
$0.0
$0.0
$0.1
$0.2
Interest Income HOA Contributions Miscellaneous
Mi
l
l
i
o
n
s
PY YTD Actual CY YTD Actual Budget
100% through the fiscal year (Period 12 of 12) Page 10 of 14
Community Center Fund
Financial Status Fiscal Year to Date: June 2026
Contracted Operating Expenditures
Budget YTD Actual Budget YTD Actual
Personnel 1,839,522$ 1,964,500$ 1,992,268$ 2,109,891$ 106%2,078,000$
Food & Beverage (Overlook) 701,378 756,376 751,271 797,830 106%825,000
Operations & Maintenance 2,640,332 2,750,609 2,768,538 2,882,889 104%2,769,706
Equipment Leases 162,661 167,110 216,560 188,090 87%230,589
Contracted Expenditures Total 5,343,893$ 5,638,594$ 5,728,637$ 5,978,700$ 104%5,903,295$
Town Operating Expenditures
Budget YTD Actual Budget YTD Actual
Personnel 1,222,583$ 1,324,613$ 1,303,239$ 1,223,014$ 94%1,269,585$
Operations & Maintenance 1,002,985 1,006,722 1,124,222 1,040,153 93%1,067,140
Town Operating Expenditures Total 2,225,568$ 2,331,335$ 2,427,461$ 2,263,168$ 93%2,336,724$
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
List of FY26 Capital Projects:
FY 2024/25
FY 2024/25 FY 2025/26 % of
Budget
Year End
Estimate
Town operating expenditures came in under budget by $164,293, or
6.8%, primarily due to savings in contracted instructor costs.
FY 2025/26 % of
Budget
Year End
Estimate
Contracted golf operating expenditures exceeded budget by
approximately $250,000, or 4.4%, driven by higher merchandise sales
costs, increased labor expenses, and additional equipment and grounds
maintenance costs. Year-over-year, expenditures rose 6%, driven
mainly by increased labor, maintenance supplies, and lease costs,
partially offset by reductions in water expenses.
$1.2
$1.0
$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
PY YTD Actual CY YTD Actual Budget
$2.1
$0.8
$2.9
$0.2
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
Personnel Food & Beverage
(Overlook)
Operations &
Maintenance
Equipment
Leases
Mi
l
l
i
o
n
s
PY YTD Actual CY YTD Actual Budget
100% through the fiscal year (Period 12 of 12) Page 11 of 14
Capital Fund
Financial Status Fiscal Year to Date: June 2026
`
Budget YTD Actual Budget YTD Actual
Sources
Grants 1,000,000$ 1,000,000$ -$ -$ na
RTA Reimbursements - 164,417 - - na
Vehicle Reserves 933,490 933,490 1,028,926 1,028,926 100%
Interest Earnings 348,382 646,662 470,000 564,566 120%
Miscellaneous 115,000 565,182 40,000 349,724 874%
Transfers In from General Fund 7,139,787 7,139,787 5,000,000 7,000,000 140%
Total Sources 9,536,659$ 10,449,538$ 6,538,926$ 8,943,216$ 137%
Uses
Budget YTD Actual Budget YTD Actual
O&M 37,000$ 390,108$ -$ 350,873$ na
Capital Outlays 10,286,569 5,565,173 12,329,372 7,311,264 59%
Transfers Out 4,174,530 4,000,000 2,234,200 2,059,109 92%
Total Uses 14,498,099$ 9,955,281$ 14,563,572$ 9,721,246$ 67%
Change in Fund Balance
Budget YTD Actual Budget YTD Actual
Total Sources 9,536,659$ 10,449,538$ 6,538,926$ 8,943,216$
Total Uses (14,498,099) (9,955,281) (14,563,572) (9,721,246)
Change in Fund Balance (4,961,440)$ 494,257$ (8,024,646)$ (778,030)$
Beginning Fund Balance 16,847,866$
Estimated Ending Fund Balance 16,069,836$
Prior Year (FY 2024/25) Current Year (FY 2025/26) % of
Budget
% of
Budget
(B)
Sources:
Actual to budget favorable variance of $2.4 million, or 36.8%. Quarterly transfers in from the General Fund supported 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%. Interest earnings exceeded budget by approximately $94,566, or 20.1%. Miscellaneous
revenue exceeded budget by $181,029, driven by $200,000 in accumulated, previously unbudgeted court fees recognized upon use for
the Town Court expansion project, along with $34,000 in insurance recoveries and $75,000 in asset sales (primarily vehicle auctions)
above budget.
Uses:
Actual to budget favorable variance of $4.84 million, or 33.2%.
O&M costs of $350,873, against no budgeted amount, reflected a $128,695 loss on sale of a donated house, building repair and
maintenance for the newly purchased Police Headquarters building, as well as the purchase of smaller, non-capitalized equipment
used to outfit new Police vehicles.
Capital outlay finished at 59% of budget, a $5.02 million favorable variance, driven primarily by three projects. The VTNP Pond
Restoration project carried approximately $2.26 million of its budget into FY 2026/27. The Police Department Headquarters building
project left approximately $1.6 million of its $5.8 million budget unspent, also carrying into next year. The Fuel Station renovation
project's full $449,550 budget was unspent and is carrying into FY 2026/27. The remaining variance reflects smaller items across
several capital projects.
Transfers out finished at 92% of budget, a $175,091 favorable variance, consisting of $2 million to the Highway Fund for capital
improvement projects and $234,200 to the Grants Fund for the Town's 20% match for transit vehicles funded primarily through federal
grants.100% through the fiscal year (Period 12 of 12) Page 12 of 14
Water Utility Fund
Financial Status Fiscal Year to Date: June 2026
`
Budget YTD Actual Budget YTD Actual
Revenues
Water Sales 18,000,000$ 18,212,809$ 18,511,000$ 18,834,686$ 102%18,859,024$
Charges For Services 3,424,000 3,506,480 3,457,000 3,504,491 101%3,497,248
Grants - 358,361 - 1,246,639 -841,639
Interest Earnings 100,000 339,482 100,000 413,400 413%415,000
Miscellaneous - 64,157 20,000 44,722 224%33,751
Other Financing Sources - - - 3,865,826 -4,807,200
Total Revenues 21,524,000$ 22,481,288$ 22,088,000$ 27,909,765$ 126%28,453,861$
Budget YTD Actual Budget YTD Actual
Uses
Personnel 3,992,428$ 3,536,734$ 3,985,725$ 3,504,450$ 88%3,562,061$
O&M 11,198,284 10,937,669 11,552,175 10,690,134 93%10,828,520
Capital Outlays 1,717,446 878,313 2,327,639 2,530,589 109%2,338,257
Debt Service 3,391,568 3,492,798 3,890,977 3,926,176 101%3,890,977
Transfers Out 6,862,333 4,744,630 9,883,004 9,124,678 92%9,883,004
Total Uses 27,162,059$ 23,590,145$ 31,639,520$ 29,776,027$ 94%30,502,819$
Note: Excludes non-cash outlays for depreciation & amortization
Change in Fund Balance
Budget YTD Actual Budget YTD Actual
Total Revenues 21,524,000$ 22,481,288$ 22,088,000$ 27,909,765$ 28,453,861$
Total Uses (27,162,059) (23,590,145) (31,639,520) (29,776,027) (30,502,819)
Change in Fund Balance (5,638,059)$ (1,108,856)$ (9,551,520)$ (1,866,262)$ (2,048,958)$
Beginning Fund Balance 9,058,512$ 9,058,512$ 9,058,512$
Estimated Ending Fund Balance 7,192,251$ 7,192,251$ 7,009,554$
Prior Year (FY 2024/25) Current Year (FY 2025/26) % of
Budget
Year End
Estimate
% of
Budget
Year End
Estimate
Year End
Estimate
Revenues and Other Financing Sources:
Actual to budget favorable variance of $5.82 million, or 26.4%.
Water sales exceeded budget by $323,686, or 1.7%, primarily driven by higher than anticipated irrigation and commercial water sales. Charges for
services exceeded budget by $47,491, driven by groundwater preservation fees, which are assessed based on water usage. Interest earnings exceeded
budget by $313,400, reflecting returns on invested bond and loan proceeds. Miscellaneous revenues exceeded budget by $24,722, due to insurance
recoveries.
The Water Utility draws on a 2025 WIFA loan agreement that functions as a line of credit. Loan draws and the associated WIFA grant are recognized in
Grants and Other Financing Sources as funds are received, accounting for the $1,246,639 in Grants revenue and $3,865,826 in Other Financing
Sources.
Uses:
Actual to budget favorable variance of $1.86 million, or 5.9%.
Personnel finished at 88% of budget, a $481,275 favorable variance, due to vacancies in several positions, including two Water Utility Operators, a
Water Operations Supervisor, and a Water Control Systems Supervisor.
Operations and maintenance finished approximately $863,673, or 7.5%, under budget, with savings spread across numerous accounts. The largest
contributors were 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 collectively finished below budget, as routine maintenance demand was lower than
anticipated. Additional savings in testing, non-capitalized equipment, chemicals, and gasoline contributed to the overall favorable variance, partially offset
by higher than expected costs in mains repair and maintenance and software maintenance and licensing.
Capital outlays finished at 109% of budget, a $202,950 unfavorable variance, due to the purchase of replacement meters.
Debt service finished at 101% of budget, a $35,199 unfavorable variance. 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 finished at 92% of budget, a $758,326 favorable variance. Transfers were primarily made to the Water Resource Impact Fee Fund to
support NWRRDS capital projects, representing 40% of groundwater preservation fee revenues; this transfer is recorded at year-end and varies based
on actual revenue collections. A smaller transfer of $3,004 was made to the Debt Service Fund for debt repayment.
100% through the fiscal year (Period 12 of 12) Page 13 of 14
Stormwater Utility Fund
Financial Status Fiscal Year to Date: June 2026
`
Budget YTD Actual Budget YTD Actual
Revenues
Charges For Services 1,518,500$ 1,531,701$ 1,527,000$ 1,544,899$ 101%
Grants 210,000 210,991 239,200 - -
Interest Earnings 19,000 46,598 20,000 46,802 234%
Total Revenues 1,747,500$ 1,789,289$ 1,786,200$ 1,591,701$ 89%
Budget YTD Actual Budget YTD Actual
Expenses
Personnel 1,018,770$ 917,745$ 990,258$ 925,536$ 93%
O&M 425,834 298,961 424,755 338,981 80%
Capital Outlays 735,000 - 738,000 372,199 50%
Total Expenses 2,179,604$ 1,216,706$ 2,153,013$ 1,636,717$ 76%
Note: Excludes non-cash outlays for depreciation
Change in Fund Balance
Budget YTD Actual Budget YTD Actual
Total Revenues 1,747,500$ 1,789,289$ 1,786,200$ 1,591,701$
Total Expenses (2,179,604) (1,216,706) (2,153,013) (1,636,717)
Change in Fund Balance (432,104)$ 572,584$ (366,813)$ (45,016)$
Beginning Fund Balance 1,447,723$ 1,447,723$
Estimated Ending Fund Balance 1,402,707$ 1,402,707$
Prior Year (FY 2024/25) Current Year (FY 2025/26) % of
Budget
% of
Budget
Revenues:
Actual to budget unfavorable variance of $194,499, or 10.9%. Charges for services finished 1.2% above budget. Grant revenue of
$239,200 budgeted for the Sierra Wash at Glover Road Infrastructure Repair and Rehabilitation project was not received, as the project
was delayed into FY 2026/27. Interest earnings exceeded budget by $26,802, or 134%.
Expenses:
Actual to budget favorable variance of $516,296, or 24%.
Personnel finished at 93% of budget, a $64,722 favorable variance, due to the Senior Engineering Associate position being vacant for
1.5 months and filled at a lower rate than budgeted, along with a Street Maintenance Technician II position being vacant for
approximately 2 months.
Operations and maintenance finished at 80% of budget, a $85,774 favorable variance, with savings in outside professional services,
gasoline, vehicle repair and maintenance, and equipment repair and maintenance.
Capital outlays finished at 50% of budget, a $365,801 favorable variance. The primary driver was the Sierra Wash at Glover Road
Infrastructure Repair and Rehabilitation project, budgeted at $318,000, none of which was spent in FY 2025/26; the project is carrying
into FY 2026/27. The Naranja Drive MUP Alignment project, funded through Town Council's approved transfer of budget capacity from
the Oro Valley Drive Drainage and Pavement Improvements project after that project was taken over by Pima County, was fully spent at
its $300,000 budget. The remaining variance reflects savings in general infrastructure maintenance and lower than budgeted spending
on the Sierra Wash at Via Mandarina Drainage Improvements project.
100% through the fiscal year (Period 12 of 12) Page 14 of 14
APPENDIX 1
El Conquistador Golf Mgmt.,
LLC Report Date: 6/30/2026
El Conquistador Golf Course
Jun - 2026 Budget Jun - 2025 Bud Var PY Var Jun - 2026 Budget Jun - 2025 Bud Var PY Var
Rounds
Public 3,170 2,250 3,722 920 (552)61,235 52,100 60,923 9,135 312
Member 3,916 3,000 3,464 916 452 50,486 44,190 48,439 6,296 2,047
Tournament 207 350 296 (143)(89)5,229 8,655 9,235 (3,426)(4,006)
Total Rounds 7,293 5,600 7,482 1,693 (189)116,950 104,945 118,597 12,005 (1,647)
Membership Fees 144,439.42 115,000.00 138,360.57 29,439.42 6,078.85 1,918,463.96 1,590,560.00 1,729,348.93 327,903.96 189,115.03
Total Membership Revenue 144,439.42 115,000.00 138,360.57 29,444.35 5,785.86 1,918,463.96 1,590,560.00 1,729,348.93 298,464.54 183,036.18
Sales - Green Fees 109,657.76 85,000.00 120,135.31 24,657.76 (10,477.55)2,755,979.04 2,062,750.00 2,521,556.49 693,229.04 234,422.55
Sales - Tournament 8,637.73 10,000.00 6,109.92 (1,362.27)2,527.81 212,712.02 369,500.00 371,847.94 (156,787.98)(159,135.92)
Sales - Member Rounds 704.25 150.00 432.00 554.25 272.25 7,456.25 3,400.00 5,201.49 4,056.25 2,254.76
Lessons & Clinics 1,710.00 2,000.00 850.00 (290.00)860.00 13,065.92 36,250.00 22,343.00 (23,184.08)(9,277.08)
Range, Rental & Other Golf Related 12,151.23 3,575.00 20,644.28 8,576.23 (8,493.05)145,535.72 99,650.00 149,443.01 45,885.72 (3,907.29)
Cart Fees 36,563.28 24,325.00 31,574.20 12,238.28 4,989.08 416,449.93 334,075.00 382,352.03 82,374.93 34,097.90
Golf Fees Revenue 169,424.25 125,050.00 179,745.71 44,374.25 (10,321.46)3,551,198.88 2,905,625.00 3,452,743.96 645,573.88 98,454.92
Sales - Soft Goods 8,018.56 6,900.00 8,924.74 1,118.56 (906.18)182,490.50 175,810.00 190,128.50 6,680.50 (7,638.00)
Sales - Hard Goods 17,704.40 5,750.00 13,931.57 11,954.40 3,772.83 170,812.30 115,450.00 143,470.83 55,362.30 27,341.47
Merchandise Revenue 25,722.96 12,650.00 22,856.31 11,553.11 10,266.68 353,302.80 291,260.00 333,599.33 62,042.80 19,703.47
Other Revenue 98.12 6,500.00 6,428.79 (6,401.88)(6,330.67)21,636.13 23,000.00 2,463.09 (1,363.87)19,173.04
Other Revenue 98.12 6,500.00 6,428.79 (6,401.88)(6,330.67)21,636.13 23,000.00 2,463.09 (1,363.87)19,173.04
Sales - Food 32,584.28 175.00 35,818.59 32,409.28 (3,234.31)455,734.24 6,850.00 461,050.07 448,884.24 (5,315.83)
Sales - Beer 18,982.48 500.00 17,884.50 18,482.48 1,097.98 281,701.36 20,000.00 281,690.01 261,701.36 11.35
Sales - Wine 1,313.08 0.00 1,522.42 1,313.08 (209.34)28,568.27 0.00 23,806.09 28,568.27 4,762.18
Sales - Liquor 5,459.06 50.00 6,052.61 5,409.06 (593.55)101,274.03 2,383.00 102,297.49 98,891.03 (1,023.46)
Group Service Charges 2,035.46 0.00 10,161.40 2,035.46 (8,125.94)71,660.95 0.00 31,399.20 71,660.95 40,261.75
Food & Beverage Revenue 60,374.36 725.00 71,439.52 59,649.36 (11,065.16)938,938.85 29,233.00 900,242.86 909,705.85 38,695.99
TOTAL REVENUE 400,059.11 259,925.00 418,830.90 140,134.11 (18,771.79)6,783,540.62 4,839,678.00 6,418,398.17 1,943,862.62 365,142.45
Expenses
COS - Merchandise 21,348.22 9,005.00 17,794.16 (12,343.22)(3,554.06)263,049.85 204,334.75 256,357.20 (58,715.10)(6,692.65)
COS - Food 15,895.60 52.50 14,314.48 (15,843.10)(1,581.12)181,001.81 2,055.00 173,177.77 (178,946.81)(7,824.04)
COS - Beer 6,266.90 150.00 4,479.62 (6,116.90)(1,787.28)85,359.21 6,000.00 82,019.63 (79,359.21)(3,339.58)
COS - Wine 1,197.85 0.00 2,050.77 (1,197.85)852.92 9,814.17 0.00 9,094.45 (9,814.17)(719.72)
COS - Liquor 1,081.10 15.00 1,292.90 (1,066.10)211.80 25,974.85 714.90 26,818.24 (25,259.95)843.39
Cost of Sales 45,789.67 9,222.50 39,931.93 (36,567.17)(5,857.74)565,199.89 213,104.65 547,467.29 (352,095.24)(17,732.60)
Gross Margin 354,269.44 250,702.50 378,898.97 103,566.94 (24,629.53)6,218,340.73 4,626,573.35 5,870,930.88 1,591,767.38 347,409.85
Month-to-Date Year-to-Date
100% through the fiscal year (Period 12 of 12) Page 1 of 3
APPENDIX 1
El Conquistador Golf Mgmt.,
LLC Report Date: 6/30/2026
El Conquistador Golf Course
Jun - 2026 Budget Jun - 2025 Bud Var PY Var Jun - 2026 Budget Jun - 2025 Bud Var PY Var
Month-to-Date Year-to-Date
Salaries & Wages 204,401.05 155,989.00 210,010.88 (48,412.05)5,609.83 2,174,901.87 1,683,518.00 2,021,505.42 (491,383.87)(153,396.45)
Payroll Taxes 16,411.24 13,050.00 16,285.15 (3,361.24)(126.09)168,330.69 137,650.00 163,529.79 (30,680.69)(4,800.90)
Workers Comp 3,040.56 2,500.00 2,407.56 (540.56)(633.00)43,906.17 30,000.00 34,103.56 (13,906.17)(9,802.61)
Employee Benefits 11,842.54 11,000.00 11,435.82 (842.54)(406.72)135,777.53 125,500.00 136,159.14 (10,277.53)381.61
Other Employee Benefits 1,978.23 1,300.00 1,954.26 (678.23)(23.97)32,158.04 15,600.00 19,169.49 (16,558.04)(12,988.55)
Total Payroll & Benefits 237,673.62 183,839.00 242,093.67 (53,834.62)4,420.05 2,555,074.30 1,992,268.00 2,374,467.40 (562,806.30)(180,606.90)
Meals & Entertainment 554.48 450.00 458.31 (104.48)(96.17)5,924.76 7,100.00 8,931.54 1,175.24 3,006.78
Travel 0.00 225.00 0.00 225.00 0.00 4,429.69 6,100.00 4,948.26 1,670.31 518.57
Other Employee Related 0.00 1,800.00 0.00 1,800.00 0.00 2,321.34 1,800.00 769.89 (521.34)(1,551.45)
Total Employee Related 554.48 2,475.00 458.31 1,920.52 (96.17)12,675.79 15,000.00 14,649.69 2,324.21 1,973.90
R&M - Equipment 21,352.43 14,500.00 14,501.36 (6,852.43)(6,851.07)171,576.19 143,300.00 153,710.58 (28,276.19)(17,865.61)
R&M - Building 330.16 3,000.00 6,046.52 2,669.84 5,716.36 10,652.09 29,300.00 21,133.38 18,647.91 10,481.29
R&M - Golf Course & Tennis Courts 1,974.90 2,500.00 3,367.88 525.10 1,392.98 30,574.93 34,000.00 43,390.49 3,425.07 12,815.56
R&M - Other 425.46 400.00 413.07 (25.46)(12.39)8,961.62 4,800.00 4,435.50 (4,161.62)(4,526.12)
Sod 0.00 0.00 0.00 0.00 0.00 0.00 2,000.00 1,067.72 2,000.00 1,067.72
Sand & Gravel 250.00 4,000.00 2,515.13 3,750.00 2,265.13 28,635.49 26,000.00 35,272.74 (2,635.49)6,637.25
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 9,251.83 4,450.00 5,179.21 (4,801.83)(4,072.62)52,519.20 54,400.00 46,665.22 1,880.80 (5,853.98)
Fertilizers 4,217.82 2,000.00 7,426.45 (2,217.82)3,208.63 60,993.13 89,800.00 78,467.74 28,806.87 17,474.61
Chemicals 6,977.99 10,500.00 6,619.88 3,522.01 (358.11)118,505.37 80,650.00 77,441.95 (37,855.37)(41,063.42)
Total Repairs & Maintenance 44,780.59 41,350.00 46,069.50 (3,430.59)1,288.91 599,676.80 609,250.00 587,546.66 9,573.20 (12,130.14)
Professional Fees 0.00 0.00 0.00 0.00 0.00 0.00 0.00 176.00 0.00 176.00
Marketing & Advertising 930.50 1,120.00 930.50 189.50 0.00 11,609.13 15,915.00 21,093.33 4,305.87 9,484.20
Computer Related 2,735.92 0.00 942.00 (2,735.92)(1,793.92)20,602.45 0.00 4,905.90 (20,602.45)(15,696.55)
Dues & Subscriptions 1,885.90 3,870.00 1,455.00 1,984.10 (430.90)43,783.37 46,440.00 38,073.68 2,656.63 (5,709.69)
Operating Supplies 10,232.25 5,700.00 15,580.92 (4,532.25)5,348.67 119,047.96 96,075.00 136,843.09 (22,972.96)17,795.13
Linens & Laundry 460.77 0.00 768.45 (460.77)307.68 8,182.80 0.00 9,257.97 (8,182.80)1,075.17
Postage 0.00 75.00 0.00 75.00 0.00 431.64 450.00 988.92 18.36 557.28
Member Relations 168.91 0.00 59.00 (168.91)(109.91)1,061.27 1,500.00 6,240.62 438.73 5,179.35
Uniforms 258.14 0.00 317.31 (258.14)59.17 8,658.75 11,350.00 7,818.19 2,691.25 (840.56)
Other Operating 176,166.68 0.00 0.00 (176,166.68)(176,166.68)176,166.68 0.00 1,198.55 (176,166.68)(174,968.13)
Merchant Processing Fees 9,792.51 8,550.00 8,819.66 (1,242.51)(972.85)109,597.63 91,650.00 107,525.41 (17,947.63)(2,072.22)
Bank Fees 0.00 0.00 31.83 0.00 31.83 (31.83)0.00 1,036.39 31.83 1,068.22
Cash Short / (Over)0.00 0.00 (77.90)0.00 (77.90)(35.73)0.00 (77.90)35.73 (42.17)
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 2,139.02 2,125.00 1,922.23 (14.02)(216.79)29,104.40 25,500.00 26,309.78 (3,604.40)(2,794.62)
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 204,770.60 21,440.00 30,749.00 (183,330.60)(174,021.60)528,178.52 288,880.00 362,381.64 (239,298.52)(165,796.88)
Operating Profit (133,509.85)1,598.50 59,528.49 (135,108.35)(193,038.34)2,522,735.32 1,721,175.35 2,531,885.49 801,559.97 (9,150.17)
100% through the fiscal year (Period 12 of 12) Page 2 of 3
APPENDIX 1
El Conquistador Golf Mgmt.,
LLC Report Date: 6/30/2026
El Conquistador Golf Course
Jun - 2026 Budget Jun - 2025 Bud Var PY Var Jun - 2026 Budget Jun - 2025 Bud Var PY Var
Month-to-Date Year-to-Date
Electric & Gas 24,141.90 24,050.00 25,513.50 (91.90)1,371.60 262,697.71 299,050.00 271,634.36 36,352.29 8,936.65
Water 88,465.99 99,600.00 82,253.87 11,134.01 (6,212.12)942,616.51 1,043,800.00 1,013,677.99 101,183.49 71,061.48
Telephone & Internet Connection 700.41 875.00 665.92 174.59 (34.49)8,729.52 10,500.00 8,854.60 1,770.48 125.08
Other Third-party Services 9,855.86 4,425.00 9,458.65 (5,430.86)(397.21)53,515.51 63,050.00 65,915.93 9,534.49 12,400.42
Total Utilities 123,164.16 128,950.00 117,891.94 5,785.84 (5,272.22)1,267,559.25 1,416,400.00 1,360,082.88 148,840.75 92,523.63
Lease Expense - Fixed 15,525.24 14,582.00 17,113.40 (943.24)1,588.16 184,512.96 174,984.00 162,959.76 (9,528.96)(21,553.20)
Lease Expense - Short-term & Other 298.11 298.00 298.11 (0.11)0.00 3,577.32 4,676.00 4,150.17 1,098.68 572.85
Total Leases 15,823.35 14,880.00 17,411.51 (943.35)1,588.16 188,090.28 179,660.00 167,109.93 (8,430.28)(20,980.35)
Fixed Operating Expenses 138,987.51 143,830.00 135,303.45 4,842.49 (3,684.06)1,455,649.53 1,596,060.00 1,527,192.81 140,410.47 71,543.28
Gross Operating Profit (272,497.36)(142,231.50)(75,774.96)(130,265.86)(196,722.40)1,067,085.79 125,115.35 1,004,692.68 941,970.44 62,393.11
Insurance 18,740.14 6,000.00 5,877.20 (12,740.14)(12,862.94)113,826.72 72,000.00 74,103.91 (41,826.72)(39,722.81)
Property Taxes 0.00 0.00 2,934.25 0.00 2,934.25 634.10 0.00 2,934.25 (634.10)2,300.15
Bad Debt Expense 746.60 100.00 50.93 (646.60)(695.67)1,691.56 2,300.00 5,125.16 608.44 3,433.60
Fees, Permits, & Licenses 2,074.00 5,350.00 2,465.64 3,276.00 391.64 13,386.74 15,425.00 9,498.26 2,038.26 (3,888.48)
Base Management Fees 11,040.81 11,094.00 10,824.32 53.19 (216.49)132,706.21 133,128.00 129,891.84 421.79 (2,814.37)
Other Expenses 32,601.55 22,544.00 22,152.34 (10,057.55)(10,449.21)262,245.33 222,853.00 221,553.42 (39,392.33)(40,691.91)
Net Operating Income (305,098.91)(164,775.50)(97,927.30)(140,323.41)(207,171.61)804,840.46 (97,737.65)783,139.26 902,578.11 21,701.20
Incentive Management Fee 84,126.66 39,950.00 100,889.30 (44,176.66)16,762.64 84,126.66 39,950.00 108,919.92 (44,176.66)24,793.26
NET INCOME (389,225.57)(204,725.50)(198,816.60)(184,500.07)(190,408.97)720,713.80 (137,687.65)674,219.34 858,401.45 46,494.46
EBITDA (389,225.57)(204,725.50)(198,816.60)(184,500.07)(190,408.97)720,713.80 (137,687.65)674,219.34 858,401.45 46,494.46
100% through the fiscal year (Period 12 of 12) Page 3 of 3
APPENDIX 2
Operating:Through June 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 5,175,919 4,311,050 37,201,195
Pusch Ridge - 105,370 99,134 59,726 106,184 98,316 - 380,375 414,225 528,346 619,276 704,369 528,628 3,115,321
F&B - Overlook - 606,171 708,594 745,766 671,582 554,336 448,782 671,479 725,222 766,679 865,944 903,253 785,400 7,667,808
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 6,783,541 5,625,078 47,984,324
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 4,668,786 4,468,886 45,002,038
Pusch Ridge - 253,513 256,769 236,160 230,196 287,112 - 319,702 390,959 478,320 516,762 512,084 508,480 3,481,577
F&B - Overlook - 861,740 823,383 841,866 785,499 701,538 440,382 630,509 596,910 684,037 756,376 797,830 751,271 7,920,070
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 5,978,700 5,728,637 56,403,685
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) 461,711 567,722 507,133 (157,836) (7,800,842)
Pusch Ridge - (148,143) (157,635) (176,434) (124,012) (188,796) - 60,673 23,266 50,026 102,514 192,285 20,148 (366,256)
F&B - Overlook - (255,569) (114,789) (96,100) (113,917) (147,202) 8,400 40,970 128,312 82,642 109,569 105,423 34,129 (252,262)
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 78,701 594,379 779,804 804,840 (103,559) (8,419,360)
Capital Investments 45,116 47,909 29,464 - - 131,035 2,828,061 4,619,904 2,184,848 743,897 628,187 630,000 11,258,421
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 3,904,926 586,190 - 30,590,182
HOA contributions - - - - - - 125,000 159,050 159,050 159,050 159,050 34,050 34,050 795,250
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 337,860 344,855 377,531 402,476 613,880 545,516 588,783 731,659 776,195 654,218 491,097 354,269
Expenses 416,385 419,190 518,351 474,811 456,611 404,521 367,544 364,566 451,434 448,001 432,719 659,368
Net Income/(Loss)(78,525) (74,335) (140,820) (72,334) 157,270 140,995 221,239 367,094 324,761 206,217 58,378 (305,099)
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
-
200,000
400,000
600,000
800,000
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 June 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 June
2026
General Fund 20,702,401 59,086,724 - 59,086,724 35,344,380 13,628,578 128,883 - 10,820,285 59,922,125 19,867,000
Highway Fund 1,598,787 4,498,013 2,000,000 6,498,013 1,350,683 1,311,238 3,099,156 - - 5,761,077 2,335,723
Grants and Contributions Fund 60,787 295,381 175,565 470,946 97,034 211,987 126,874 - - 435,895 95,839
Seizure & Forfeiture - Justice/State 374,906 39,476 - 39,476 - 5,861 - - - 5,861 408,522
Community Center Fund 2,921,900 9,108,850 - 9,108,850 1,223,014 7,018,854 1,883,420 - 172,968 10,298,256 1,732,494
Municipal Debt Service Fund 53,800 162,094 3,918,566 4,080,660 - 8,531 - 4,013,071 - 4,021,602 112,857
Water Resource System & Dev. Impact Fee Fund 8,104,970 3,159,274 14,920,414 18,079,688 - 168,950 22,973,181 854,891 - 23,997,022 2,187,635
Townwide Roadway Dev Impact Fee Fund 3,095,031 823,109 - 823,109 - 284 - - - 284 3,917,856
Parks & Recreation Impact Fee Fund 381,038 491,461 - 491,461 - 132 - - - 132 872,367
Police Impact Fee Fund 122,916 155,452 - 155,452 - 38 - - 38,765 38,803 239,565
Capital Fund 16,847,866 1,943,216 7,000,000 8,943,216 - 350,873 7,311,264 - 2,059,109 9,721,246 16,069,836
PAG/RTA Fund 446,926 34,638 - 34,638 - 27,871 70,000 - - 97,871 383,693
Water Utility 9,058,512 24,043,939 3,865,826 27,909,765 3,504,450 10,690,134 2,530,589 3,926,176 9,124,678 29,776,027 7,192,251
Stormwater Utility 1,447,723 1,591,701 - 1,591,701 925,536 338,981 372,199 - - 1,636,717 1,402,707
Benefit Self Insurance Fund 3,995,323 5,411,900 - 5,411,900 - 6,526,297 - - - 6,526,297 2,880,927
Recreation In-Lieu Fee Fund 52,018 1,408 - 1,408 - - - - - - 53,426
Total 69,264,903 110,846,636 31,880,371 142,727,007 42,445,097 40,288,608 38,495,567 8,794,137 22,215,805 152,239,214 59,752,697
100% through the fiscal year (Period 12 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 89,454 243,032 156,790 253,437 201,202 316,434 428,850 308,766 275,184 2,714,731
Utility Sales Tax 302,786 412,779 407,129 429,423 372,182 261,920 293,969 319,220 288,992 246,317 276,123 276,514 3,887,352
Retail Sales Tax 941,576 897,606 867,961 893,562 934,258 1,001,735 1,345,143 937,347 956,315 1,061,957 884,342 944,744 11,666,548
Remote Seller Sales Tax 192,279 205,970 220,208 196,932 221,954 259,550 305,982 228,931 216,170 252,021 242,452 242,705 2,785,153
Bed Tax 112,651 91,706 92,611 115,225 146,552 178,739 154,051 259,109 370,419 362,236 232,817 135,194 2,251,312
Restaurant & Bar Sales Tax 269,228 238,235 263,782 292,127 270,580 270,346 335,217 273,916 312,049 361,842 298,231 283,635 3,469,188
All Other Local Sales Tax *115,341 108,925 133,051 119,804 136,567 153,290 161,223 189,792 247,605 246,582 271,285 115,496 1,998,960
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$ 2,959,805$ 2,514,016$ 2,273,471$ 28,773,243$
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$ 23,985,756$ 26,499,772$ 28,773,243$
Monthly variance (220,775)$ (201,284)$ (240,986)$ (191,015)$ (279,060)$ (262,332)$ (258,450)$ (187,731)$ 299,058$ 407,617$ 49,231$ (49,558)$
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)$ (1,134,959)$ (1,085,728)$ (1,135,286)$
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
100% through the fiscal year (Period 12 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 793,555 793,555 793,555 793,555 793,555 793,556 793,555 793,555 793,555 793,555 793,555 785,207 9,514,314
State Shared Sales Tax 619,095 603,827 595,627 602,207 623,385 588,988 743,390 602,202 612,834 694,630 627,711 648,034 7,561,930
County Auto Lieu 216,240 215,390 219,757 235,357 160,740 250,037 216,183 200,625 292,283 208,978 208,936 230,674 2,655,199
Smart and Safe - - - - - 131,143 - - - - - 144,989 276,132
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$ 1,697,163$ 1,630,203$ 1,808,903$ 20,007,575$
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$ 16,568,469$ 18,198,672$ 20,007,575$
Monthly variance (59,126)$ (41,479)$ (26,784)$ (47,715)$ (82,925)$ (36,755)$ 44,440$ (161,087)$ 2,058$ 43,908$ (89,155)$ (140,717)$
Cumulative variance (59,126)$ (100,605)$ (127,389)$ (175,104)$ (258,029)$ (294,783)$ (250,344)$ (411,430)$ (409,372)$ (365,464)$ (454,619)$ (595,336)$
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$
100% through the fiscal year (Period 12 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$ 19,450,847$ 19,516,090$ 15,986,265$
Investment Income 34,213$ 41,256$ 34,954$ 31,477$ 35,518$ 33,762$ 33,536$ 42,232$ 52,618$ 58,835$ 64,661$ 57,975$
1-Month Yield 4.33% 4.32% 4.18% 4.09% 3.97% 3.81% 3.71% 3.68% 3.66% 3.66% 3.66% 3.67%
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$ 30,824,211$ 31,045,489$ 30,818,081$
Investment Income 199,738$ 172,343$ 102,243$ 130,423$ 207,951$ 80,876$ 168,167$ 167,100$ 63,960$ 162,477$ 173,013$ 72,581$
Annualized Yield to
Maturity at Cost 4.51% 4.54% 4.53% 4.53% 4.54% 4.53% 4.55% 4.45% 4.41% 4.38% 4.42% 4.40%
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$ 5,012,096$ 5,542,467$ 4,225,628$
Investment Income 13,910$ 10,451$ 15,825$ 13,151$ 10,020$ 9,793$ 13,057$ 15,364$ 13,449$ 12,393$ 8,214$ 11,183$
7-Day Simple Yield 4.18% 4.18% 4.01% 4.00% 3.84% 3.65% 3.57% 3.56% 3.54% 3.54% 3.49% 3.51%
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$ 55,287,155$ 56,104,046$ 51,029,974$
Total Investment Income 247,861$ 224,050$ 153,022$ 175,052$ 253,489$ 124,431$ 214,760$ 224,696$ 130,026$ 233,705$ 245,888$ 141,740$
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
Town Council Regular Session A.
Meeting Date:09/16/2026
Submitted By:Michelle Stine, Town Clerk's Office
Department:Town Clerk's Office
SUBJECT:
Minutes - September 2, 2026
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 the following changes) the September 2, 2026, minutes.
Attachments
9-2-26 Draft Minutes
D R A F T
MINUTES
ORO VALLEY TOWN COUNCIL
REGULAR SESSION
SEPTEMBER 2, 2026
ORO VALLEY COUNCIL CHAMBERS
11000 N. LA CAÑADA DRIVE
REGULAR SESSION AT OR AFTER 6:00 PM
CALL TO ORDER
Mayor Winfield called the meeting to order at 6:00 p.m.
ROLL CALL
Present:Joseph C. Winfield, Mayor
Melanie Barrett, Vice-Mayor
Harry Greene, Councilmember
Joyce Jones-Ivey, Councilmember
Mary Murphy, Councilmember
Josh Nicolson, Councilmember
Elizabeth Robb, Councilmember
PLEDGE OF ALLEGIANCE
Mayor Winfield led the audience in the Pledge of Allegiance.
UPCOMING MEETING ANNOUNCEMENTS
Town Clerk Mike Standish announced the upcoming Town meetings and events.
MAYOR AND COUNCIL REPORTS ON CURRENT EVENTS
Councilmember Jones-Ivey reported that the Amphitheater School District was accepting donations
for their 2027 Project Graduation events. Councilmember Jones-Ivey provided examples of several
ways citizens could donate.
Councilmember Greene recognized and thanked the Golder Ranch Fire District for their outstanding
service to the community.
Vice Mayor Barrett reported that she and several other Councilmembers had attended the Arizona
League of Cities and Towns Conference where they were able to learn from various sessions.
9/2/26 Minutes, Oro Valley Town Council Regular Session 1
TOWN MANAGER'S REPORT ON CURRENT EVENTS
Town Manager Jeff Wilkins reported the following:
Information regarding social media posts by the Town
Information on upcoming Town events
ORDER OF BUSINESS
Mayor Winfield reviewed the order of business and stated that regular agenda item #3 would likely
require Council to go into several Executive Sessions for legal advice. Mayor Winfield also stated
that there would be no speaker cards taken for regular agenda item #2 and #3. Mayor Winfield
reported that the agenda item for the 59-lot detached single family subdivision, south of Moore Loop,
had been removed from the agenda per the request of the applicant, and that it may be placed on a
future agenda. Mayor Winfield stated that the remaining items would proceed as posted.
INFORMATIONAL ITEMS
There were no informational items.
CALL TO AUDIENCE
Oro Valley resident Greg James voiced his concerns over notices regarding a postponed meeting.
PRESENTATIONS
1.Proclamation - Ovarian Cancer Awareness Month
Mayor Winfield proclaimed the month of September as Ovarian Cancer Awareness month in Oro
Valley.
Ms. Rachel Sackett Putman accepted the proclamation.
2.Legislative Report: State Legislative Affairs Update and New Laws Report
Assistant Town Manager Karl Shaddock presented item #2 and included the following:
2026 Session Overview - Session at a Glance
Major Legislative Themes - What the Session Meant for Oro Valley
Oro Valley's Legislative Engagement - How Council Priorities Became Action
New Laws Requiring Town Implementation - Implementation Track
New Laws Creating Strategic Opportunities - Strategic Tools
Budget and Funding Outcomes - State Budget and Local Priorities
Looking Ahead - 2027 Agenda Development
9/2/26 Minutes, Oro Valley Town Council Regular Session 2
Discussion ensued among Council and staff regarding the State Legislative Affairs Update and New
Laws Report.
3.Presentation of Oro Valley's state-mandated Community Model Homes Program
Planner Michael Garcia presented item #3 and included the following:
Community Model Homes - What is it?
Community Model Homes - How does it work?
Community Model Homes - Approved Models
State Law Changes - A.R.S. §9-461.20
Summary
Discussion ensued among Council and staff regarding item #3.
4.Presentation of OV Trails Connect Master Plan online interactive maps and website
Senior Planner Kyle Packer presented item #4 and included the following:
Purpose
OVTrailsConnect.com
Interactive Maps
Thank you, visit www.OVTrailsConnect.com!
Discussion ensued among Council and staff regarding the OV Trails Connect Master Plan online
interactive maps and website.
CONSENT AGENDA
A.Minutes - August 5 and August 12, 2026
Motion by Mayor Joseph C. Winfield, seconded by Vice-Mayor Melanie Barrett to approve Consent item
(A).
Vote: 7 - 0 Carried
REGULAR AGENDA
1.RESOLUTION NO. (R)26-41, PRESENTATION, DISCUSSION AND POSSIBLE ACTION
AUTHORIZING AND APPROVING THE BUDGET STABILIZATION PLAN
Chief Financial Officer David Gephart presented item #1 and included the following:
History
Overview
Minor - Stage 1
Moderate - Stage 2
9/2/26 Minutes, Oro Valley Town Council Regular Session 3
Significant - Stage 3
Major - Stage 4
Crisis - Stage 5
Discussion ensued among Council and staff regarding the proposed Budget Stabilization Plan.
Motion by Vice-Mayor Melanie Barrett, seconded by Councilmember Mary Murphy to approve the Budget
Stabilization Plan, without the resolution, as a general policy and planning document with the clarification
that it shall not grant any authority to town staff to take action which they do not already have, and all
actions which currently require council information and approval shall still require such.
Discussion continued among Council and staff regarding item #1.
Motion by Vice-Mayor Melanie Barrett, seconded by Councilmember Mary Murphy to approve the Budget
Stabilization Plan, without the resolution, as a general policy and planning document with the clarification
that it shall not grant any authority to town staff to take action which they do not already have, and all
actions which currently require council information and approval shall still require such.
Vote: 7 - 0 Carried
2.RESOLUTION NO. (R)26-42, DISCUSSION AND POSSIBLE ACTION TO AUTHORIZE AND
APPROVE THE DISSOLUTION OF THE TOURISM ADVISORY COMMISSION (TAC)
Mayor Winfield provided information regarding the reason he requested this item be placed on the
agenda.
Motion by Mayor Joseph C. Winfield, seconded by Councilmember Joyce Jones-Ivey to approve
Resolution No. (R)26-42, authorizing and approving the dissolution of the Tourism Advisory Commission
(TAC) effective immediately and directing staff to assume responsibility for implementing, monitoring, and
evaluating the town's approved Leisure Travel Management Plan. I further move that staff provide the Town
Council with quarterly progress reports and bring any significant policy changes or proposed changes in
tourism strategy to Council for consideration and direction.
Discussion ensued among Council and staff regarding item #2.
Motion by Mayor Joseph C. Winfield, seconded by Councilmember Joyce Jones-Ivey to approve
Resolution No. (R)26-42, authorizing and approving the dissolution of the Tourism Advisory Commission
(TAC) effective immediately and directing staff to assume responsibility for implementing, monitoring, and
evaluating the town's approved Leisure Travel Management Plan. I further move that staff provide the Town
Council with quarterly progress reports and bring any significant policy changes or proposed changes in
tourism strategy to Council for consideration and direction.
Vote: 7 - 0 Carried
3.DISCUSSION AND POSSIBLE ACTION ON HIRING OUTSIDE COUNSEL AND APPEALING THE
PLANNING AND ZONING ADMINISTRATOR'S AUGUST 21 DECISION REGARDING THE RANCHO
VISTOSO PAD
Vice Mayor Barrett explained the reason she had requested this item be placed on the agenda.
9/2/26 Minutes, Oro Valley Town Council Regular Session 4
Motion by Vice-Mayor Melanie Barrett, seconded by Councilmember Josh Nicolson to go into Executive
Session at 7:27 p.m., to receive legal advice regarding the possibility of hiring outside counsel, pursuant to
A.R.S. §38-431.03 (A)(3), with the Town Clerk, Mike Standish, Town Attorney Steven Zraick, and the Town
Manager, Jeff Wilkins.
Vote: 7 - 0 Carried
Mayor Winfield reconvened the meeting at 8:06 p.m.
Motion by Vice-Mayor Melanie Barrett, seconded by Councilmember Mary Murphy to retain Mesch, Clark,
Rothschild as outside legal counsel for the Town Council.
Vote: 7 - 0 Carried
Motion by Vice-Mayor Melanie Barrett, seconded by Mayor Joseph C. Winfield to go into Executive
Session at 8:08 p.m., with Attorney David Hindman and the Town Clerk Mike Standish, pursuant to A.R.S
§38.431.03 (A)(3), to receive legal advice from Mesch Clark Rothschild, regarding appealing the Planning
and Zoning Administrator's decision.
Vote: 7 - 0 Carried
Mayor Winfield reconvened the meeting at 8:49 p.m.
Councilmember Greene left the meeting after the Executive Session.
Motion by Vice-Mayor Melanie Barrett, seconded by Councilmember Mary Murphy to appeal the Planning
and Zoning Administrators decision to the Board of Adjustment.
Vote: 6 - 0 Carried
FUTURE AGENDA ITEMS
Councilmember Robb requested a future agenda item, at a meeting in October, for an update and
discussion on the recent CAP developments and the effects on the Town's water situation. Seconded
by Vice Mayor Barrett.
ADJOURNMENT
Motion by Mayor Joseph C. Winfield, seconded by Councilmember Mary Murphy to adjourn the meeting at
8:51 p.m.
Vote: 7 - 0 Carried
________________________________
Michelle Stine, MMC, CPM
Deputy Town Clerk
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session
9/2/26 Minutes, Oro Valley Town Council Regular Session 5
of the Town of Oro Valley, Arizona held on the 2nd day of September 2026. I further certify that the meeting
was called and held and that a quorum was present.
________________________________
Michael Standish, MMC
Town Clerk
9/2/26 Minutes, Oro Valley Town Council Regular Session 6
Town Council Regular Session B.
Meeting Date:09/16/2026
Submitted By:Michelle Stine, Town Clerk's Office
Department:Town Clerk's Office
SUBJECT:
(Re)appointments to the Budget and Finance Commission (BFC), the Corrections Officer Retirement Plan (CORP) Local
Board, and the Public Safety Personnel Retirement System (PSPRS) Local Board
RECOMMENDATION:
Outlined below is information for the Budget and Finance Commission appointment recommendation, the Corrections Officer
Retirement Plan Local Board and the Public Safety Personnel Retirement System Local Board reappointment requests.
Budget and Finance Commission (BFC)
The BFC has one (1) vacancy due to a recent resignation. The BFC interview panel has recommended Katie Maxwell for a
partial term ending December 31, 2026.
Corrections Officer Retirement Plan (CORP)
The term of the current CORP citizen member, Dr. Roberta Hindenlang, expired on August 31, 2026. Dr. Hindenlang has
requested reappointment to the CORP. Mayor Winfield is recommending approval of the reappointment request for Dr.
Hindenlang to a term ending August 31, 2030.
Public Safety Personnel Retirement Plan
The term of the current PSPRS citizen member, Katherine Beck, will expire on September 30, 2026. Ms. Beck has requested
reappointment to the PSPRS. Mayor Winfield is recommending approval of the reappointment request for Ms. Beck to a term
ending September 30, 2026.
*Partial Terms do not count against the term limits established in Appendix "B" of the Councils Parliamentary Rules and
Procedures.
EXECUTIVE SUMMARY:
N/A
BACKGROUND OR DETAILED INFORMATION:
The application for the prospective new BFC commission member is attached.
The reappointment requests for the CORP and PSPRS citizen members are attached.
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
I MOVE to approve the following appointment and (re)appointments:
Katie Maxwell be appointed to the Budget and Finance Commission for a partial term ending December 31, 2026.
Dr. Roberta Hindenlang be reappointed to the Corrections Officer Retirement Plan Local Board for a term ending
August 31, 2030.
Katherine Beck be reappointed to the Public Safety Personnel Retirement System Local Board for a term ending
September 30, 2030.
Attachments
Katie Maxwell Application
Dr. Hindenlang Reappointment Request
Ms. Beck Reappointment Request
WARNING: External Sender. Read Carefully. Report phishing.
From:
To:Stine, Michelle
Subject:Re: CORP Reappointment Request
Date:Thursday, September 3, 2026 12:40:46 PM
Hello Michelle,
I would be happy to serve as a board member of CORP.
Sincerely,
Dr. Roberta Hindenlang
Sent from my iPhone R. Hindenlang
On Sep 3, 2026, at 8:34 AM, Stine, Michelle <mstine@orovalleyaz.gov> wrote:
Good morning, Ms. Hindenlang,
Thank you for serving on the Corrections Officer Retirement Plan for the
Town of Oro Valley. Your current term expired on August 31, 2026. Your
service is greatly appreciated, and you are eligible to request reappointment.
If you are interested in serving another term, please notify me in writing,
either by email or by letter, no later than September 7, 2026. Reappointment
requests are tentatively scheduled to be considered by Council at their
September 16, 2026, meeting.
Please don’t hesitate to contact me if you have any questions.
Sincerely,
Michelle Stine, MMC, CPM
Deputy Town Clerk
Town of Oro Valley
520-229-4744
mstine@orovalleyaz.gov
WARNING: External Sender. Read Carefully. Report phishing.
From:
To:Stine, Michelle
Subject:Re: PSPRS Reappointment Request
Date:Thursday, September 3, 2026 10:19:03 AM
YES, I would like to be reappointed to the Public Safety Personnel Retirement System Board at
Oro Valley for another term with my current term expiring on September 30, 2026.
Please notify Mitch(520-229-4962)
Thank You, Katherine Beck
From: Stine, Michelle <mstine@orovalleyaz.gov>
Sent: Thursday, September 3, 2026 9:46 AM
To:
Cc: Olive, Mitchell <molive@orovalleyaz.gov>
Subject: PSPRS Reappointment Request
Good morning, Ms. Beck
Thank you for serving on the Public Safety Personnel Retirement System Board for the
Town of Oro Valley. Your current term will expire on September 30, 2026. Your service is
greatly appreciated, and you are eligible to request reappointment. If you are interested
in serving another term, please notify me in writing, either by email or by letter, no later
than September 7, 2026. Reappointment requests are tentatively scheduled to be
considered by Council at their September 16, 2026, meeting.
Please don’t hesitate to contact me if you have any questions.
Sincerely,
Michelle Stine, MMC, CPM
Deputy Town Clerk
Town of Oro Valley
520-229-4744
mstine@orovalleyaz.gov
Town Council Regular Session C.
Meeting Date:09/16/2026
Requested by:Rosalyn Epting Submitted By:Rosalyn Epting, Parks and Recreation
Department:Parks and Recreation
SUBJECT:
Resolution No. (R)26-43, authorizing the Parks and Recreation Department to apply for the Land and Water Conservation
Fund Grant, for recreational amenity improvements to the Vistoso Trails Nature Preserve
RECOMMENDATION:
Staff recommends that the Town Council authorize the Parks and Recreation Department to apply for the Land and Water
Conservation Fund Grant for recreational amenity improvements to the Vistoso Trails Nature Preserve.
EXECUTIVE SUMMARY:
Staff has prepared a grant application for recreational amenity improvements at the Vistoso Trails Nature Preserve. The grant
application is for the Land and Water Conservation Fund Grant that is administered by Arizona State Parks. A detail of the
recreational amenity improvement can be found in the "Background or Detailed Information" section of this agenda item.
The application is for a total of $815,790. The grant is a 50-50 matching grant with the Town utilizing $407,895 of budgeted
site improvements funds and donation dollars. A detailed breakdown is in the "Fiscal Impact" section of this agenda item.
Arizona State Parks requires the governing body approve the application prior to submission. This item will be going to the
Parks and Recreation Advisory Board on Tuesday, September 15 for a recommendation to Town Council.
After submission, the approval process can take over a year. If approved, Town Council will be asked to approve another
resolution accepting the donation at that time.
BACKGROUND OR DETAILED INFORMATION:
The grant submission will include the following:
Trail Shoulder Enhancements
Expanding the existing 6.2-mile trail by two feet on each side using decomposed granite.
These shoulders will improve user safety by providing space for pedestrians to step off the
paved trail in congested areas and will offer a softer walking surface for users who prefer an
alternative to the concrete trail.
Restroom Rehabilitation and ADA Upgrades
Restore electrical service to the restroom facility located along the trail and near the former driving
range to allow operation of the lift station. Funding will also support ADA accessibility improvements,
ensuring the facility is accessible and functional for all users.
Trail Benches
Install seating benches at strategic locations throughout the preserve to provide rest opportunities for
visitors, particularly older adults, individuals with mobility limitations, and families.
Trail Trash Cans
Provide additional trash cans at strategic locations throughout the property that allow trail users to
discard unwanted items and help keep the preserve as clean as possible.
Shade Tree Installation
Plant trees along trail corridors within the pond area where new irrigation infrastructure is being
installed. These trees will provide much-needed shade, improve visitor comfort, and contribute to
habitat restoration goals.
Ramadas
Construct six 10-foot by 10-foot ramadas along the new pond trail system. Each ramada will include a
concrete pad and bench seating, providing shaded gathering and rest areas for preserve visitors.
Passive Recreation Turf Area
Install approximately 0.8 acres of turf adjacent to the pond area, consistent with the approved
construction plans and the conservation easement. The space will support low-impact recreational
activities such as picnicking, birdwatching, educational programs, group gatherings, kite flying, and
informal play.
Additional Trail Connections
Construct two additional trail segments extending north from the pond area. These trails will be 8 feet
wide and will total approximately 898 linear feet, expanding access to the preserve and improving
connectivity within the trail network.
FISCAL IMPACT:
$815,790 Total Project Submission
The project would be funded by:
$407,895 Grant Funds
$200,000 Site Improvements Budget for FY 27/28
$192,000 Approximate Remaining Zimerman Home Donation Funds after Memorial and Closing Costs (this amount can
fluctuate as we complete the memorial at the pond site)
$15,895 From any unspent Site Improvement Funds from FY 26/27 OR Operational Budget Funds
$815,790 TOTAL
SUGGESTED MOTION:
I MOVE to (Approve, or Not Approve), Resolution No. (R)26-43, authorizing the Parks and Recreation department to apply for
the Land and Water Conservation Fund Grant, for recreational amenity improvements to the Vistoso Trails Nature Preserve.
Attachments
(R)26-43 Resolution - Authorization to apply for VTNP LWCF
LWCF Grant Application Authorization Letter
RESOLUTION NO. (R)26-43
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
ORO VALLEY, ARIZONA, AUTHROIZING THE TOWN OF ORO
VALLEY PARKS AND RECREATION DEPARTMENT TO APPLY FOR A
LAND AND WATER CONSERATION FUND GRANT TO FUND
RECREATIONAL AMENITIES AT THE VISTOSO TRAILS NATURE
PRESERVE; AND DIRECTING THE TOWN MANAGER, TOWN CLERK,
TOWN ATTORNEY, OR THEIR DULY AUTHORIZED OFFICERS AND
AGENTS TO TAKE ALL STEPS NECESSARY TO CARRY OUT THE
PURPOSES AND INTENT OF THIS RESOLUTION
WHEREAS, the Town of Oro Valley Parks and Recreation Department desires to secure
funding under the Land and Water Conservation Fund Grant Program for recreational amenities
at the Vistoso Trails Nature Preserve; and
WHEREAS, in order to apply for the funds, the Parks and Recreation Department must be
authorized to apply by the Town of Oro Valley Mayor and Council as stated in the letter attached
hereto as Exhibit “A”; and
WHEREAS, it is in the best interests of the Town to authorize the Parks and Recreation
Department to apply for the Land and Water Conservation Fund Grant to secure funds for
recreational amenities at the Vistoso Trails Nature Preserve.
NOW THEREFORE BE IT RESOLVED by the Mayor and Town Council of the Town of
Oro Valley, Arizona, that:
SECTION 1. Parks and Recreation Department is hereby authorized to apply for
the Land and Water Conservation Fund Grant to secure funds for recreational
amenities at the Vistoso Trails Nature Preserve.
SECTION 2. The Town Manager, Town Clerk, Town Attorney, or their duly
authorized officers and agents are hereby authorized and directed to take all steps
necessary to carry out the purposes and intent of this resolution.
SECTION 3. All Oro Valley resolutions or motions and parts of resolutions or
motions of the Council in conflict with the provision of this Resolution are hereby
repealed.
SECTION 4. If any section, subsection, sentence, clause, phrase or portion of this
Resolution is for any reason held to be invalid or unconstitutional by the decision
of any court of competent jurisdiction, such decision shall not affect the validity
of the remaining portions thereof.
PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley,
Arizona this 16th day of September, 2026.
TOWN OF ORO VALLEY, ARIZONA
______________________________
Joseph C. Winfield, Mayor
ATTEST:APPROVED AS TO FORM:
Michael Standish, Town Clerk Steven Zraick, Town Attorney
Date: Date:
EXHIBIT “A”
Town of Oro Valley
September 16, 2026
RE: Authorizing the Town of Oro Valley Parks and Recreation Department to apply for a
Land and Water Conservation Fund Grant
To Whom It May Concern:
This is to certify that the Town of Oro Valley hereby authorizes the Oro Valley Parks and
Recreation Department to submit an application for financial assistance under the
provisions of the Land and Water Conservation Fund Act, Public Law 88-578 for
recreational improvements to the Vistoso Trails Nature Preserve.
This further certifies that the Town of Oro Valley is familiar with the terms and conditions
of the Land and Water Conservation Fund Project and intends to authorize the Town
Manager, or their designee, to enter into said agreement between the Town of Oro
Valley and the State of Arizona upon federal approval of the above identified project.
This further certifies that the Town of Oro Valley has been legally constituted and is
responsible for planning and carrying out the municipal recreation program, and the
continued operation and maintenance of this completed project in accordance with the
terms and conditions of the Land and Water Conservation Fund Project Agreement.
The Town of Oro Valley was officially incorporated in 1974. Oro Valley adopted a
council-manager form of municipal government and is administered by a seven-member
town council. Town Council oversees all issues pertaining to Oro Valley including all
development and natural preservation.
Sincerely,
____________________________________________________
Joseph C. Winfield, Mayor Date
Oro Valley, it’s in our nature.
11000 N. La Cañada Drive, Oro Valley, Arizona 85737
www.orovalleyaz.gov | phone: (520) 229-4700 | fax: (520) 297-0428
Town of Oro Valley
Oro Valley, it’s in our nature.
11000 N. La Cañada Drive, Oro Valley, Arizona 85737
www.orovalleyaz.gov | phone: (520) 229-4700 | fax: (520) 297-0428
September 16, 2026
RE: Authorizing the Town of Oro Valley Parks and Recreation Department to apply for a
Land and Water Conservation Fund Grant
To Whom It May Concern:
This is to certify that the Town of Oro Valley hereby authorizes the Oro Valley Parks and
Recreation Department to submit an application for financial assistance under the
provisions of the Land and Water Conservation Fund Act, Public Law 88-578 for
recreational improvements to the Vistoso Trails Nature Preserve.
This further certifies that the Town of Oro Valley is familiar with the terms and conditions
of the Land and Water Conservation Fund Project and intends to authorize the Town
Manager, or their designee, to enter into said agreement between the Town of Oro Valley
and the State of Arizona upon federal approval of the above identified project.
This further certifies that the Town of Oro Valley has been legally constituted and is
responsible for planning and carrying out the municipal recreation program, and the
continued operation and maintenance of this completed project in accordance with the
terms and conditions of the Land and Water Conservation Fund Project Agreement.
The Town of Oro Valley was officially incorporated in 1974. Oro Valley adopted a council-
manager form of municipal government and is administered by a seven-member town
council. Town Council oversees all issues pertaining to Oro Valley including all
development and natural preservation.
Sincerely,
____________________________________________________
Joseph C. Winfield, Mayor Date
Town Council Regular Session 18. 1.
Meeting Date:09/16/2026
PRESENTATION AND DISCUSSION REGARDING THE TOWN OF ORO VALLEY'S PROPOSED ANNEXATION STRATEGY
UPDATE
Subject
PRESENTATION AND DISCUSSION REGARDING UPDATES AND REFINEMENTS TO THE TOWN'S ANNEXATION
STRATEGY
Summary
The Town is updating its Annexation Strategy to provide clearer direction on where annexation
efforts should be focused, how opportunities should be prioritized and when staff should return
to Town Council for direction.
This is a discussion item only. Staff will present a proposed framework and several policy
questions for Council consideration. Council’s feedback will then be used to refine the strategy
before it returns for possible adoption at a future meeting.
BACKGROUND AND DISCUSSION
Oro Valley’s current Annexation Strategy was adopted in 2020 and provides a broad
framework for identifying and evaluating potential annexation opportunities.
Since then, staff and Council have continued to work through several potential annexation
areas, including commercial properties near Ina and Oracle roads and Arizona State Trust
Land near Tangerine and Thornydale roads.
Council also discussed annexation priorities during its March 2026 strategic planning retreat.
One of the key takeaways from that discussion was the need to better distinguish between
areas that may have long-term strategic value and areas where the Town should actively
invest staff time and resources today.
Staff has been working from that direction to develop a potential updated framework. The
concepts being presented are intended to give Council something specific to react to and
improve. They are not intended to represent a finished strategy.
Strategic Focus and Guiding Principles
One of the central questions for Council is whether the Town should focus its proactive
annexation efforts primarily on retail and commercial opportunities with the potential to
strengthen Oro Valley’s long-term fiscal position, while still allowing the Town to consider
other opportunities that may advance an important community, service, land-use or economic-
development objective.
Staff’s current working framework includes five guiding principles:
focused use of Town resources;
long-term fiscal benefit;
protection of existing service levels;
alignment with community and economic-development goals; and
feasibility and likelihood of success.
These are intended to be used together, not as a numerical scorecard. Different annexation
opportunities may require different levels of emphasis. For example, the analysis for an
established retail center will look different from the analysis for undeveloped State Trust Land.
Proposed Priority Structure
Staff is also proposing a two-tier structure to help distinguish between areas that warrant
active Town effort and areas that should remain on the Town’s radar over the longer term.
Under the current working concept:
Tier 1 — Active Opportunities
Ina/Oracle commercial areas
Arizona State Trust Land near Tangerine and Thornydale (“880”)
Tier 1 would identify areas where staff should continue active analysis, outreach, relationship-
building and coordination.
Tier 2 — Long-Term Strategic Areas
La Encantada and potential annexation pathway
Foothills Mall/Ina corridor
Oracle Corridor
Tier 2 would identify areas that may have meaningful long-term value but where current
conditions do not appear to justify the same level of sustained staff effort.
The proposed tiers are intended as a starting point for Council discussion. Placement in either
tier would not approve an annexation or commit the Town to zoning, development
agreements, infrastructure participation, financial assistance or other future actions.
Owner-Initiated and Unanticipated Opportunities
The strategy also needs to remain flexible enough to respond when an opportunity emerges
outside of the identified priority areas.
Staff is proposing that an owner-initiated or otherwise unexpected opportunity be brought to
Council once two basic conditions are met:
1. there is meaningful owner interest; and
2. there appears to be a legally feasible annexation pathway.
At that point, Council could determine whether the opportunity is worth additional evaluation or
Town investment.
This approach would allow staff to respond to legitimate interest without allowing an
unplanned annexation effort to significantly redirect staff resources without Council direction.
Council Decision Points
Another goal of the update is to provide clearer direction on when staff should return to
Council.
The proposed framework would allow staff to conduct routine research, outreach, relationship-
building and preliminary analysis, while reserving more consequential decisions for Council.
Council direction or approval would generally be expected when:
adopting or materially changing the Annexation Strategy or its active priorities;
deciding whether an unanticipated opportunity warrants additional work;
authorizing formal pursuit of a significant annexation;
approving material financial, infrastructure, service or development commitments;
considering required statutory or land-use actions; and
deciding whether to adopt an annexation ordinance.
Direction Requested
The discussion will be organized around five questions:
1. Strategic focus: Should proactive annexation efforts focus primarily on retail and
commercial areas with the potential to strengthen the Town’s long-term fiscal position?
2. Priority structure: Does a Tier 1 and Tier 2 framework create the right distinction
between active work and longer-term opportunities?
3. Current priorities: Are Ina/Oracle and 880 the right Tier 1 priorities, and are La
Encantada, Foothills Mall/Ina and the Oracle Corridor appropriately identified as Tier 2
areas?
4. Unanticipated opportunities: Is the proposed approach for bringing owner-initiated or
other unexpected opportunities to Council appropriate?
5. Council decision points: Does the proposed framework provide the right balance
between Council oversight and staff flexibility?
The intent of the discussion is to get clear Council direction on these questions and identify
anything Council would like changed, expanded or reconsidered before staff returns with a
revised strategy for possible adoption.
Attachments
Staff Presentation
2026 Annexation Strategy Update
Presentation and Discussion
September 16, 2026
1
Purpose of Today’s Discussion
Annexation Strategy Update
Council input today will shape the adoption draft.
Today
Discussion and direction on
the framework, priorities and
decision points.
Next Meeting
Revised strategy returned for
possible adoption.
Introduce the proposed strategic
direction
Explain new priority framework
Surface key policy choices
Confirm where Council wants staff
resources focused
Return with a revised strategy for
consideration
2
Council Discussion and Direction
Annexation Strategy Update
Direction requested before staff returns with a revised strategy.
1 Strategic focus Focus proactive resources primarily on retail and commercial opportunities with the
potential to strengthen Oro Valley’s long-term fiscal position?
2 Priority structure Use Tier 1 and Tier 2 to distinguish active work from monitoring?
3 Current priorities Confirm Ina/Oracle and 880 as Tier 1, and La Encantada/Foothills/Oracle Corridor as Tier
2?
4 Unanticipated
opportunities Bring owner-initiated opportunities forward after owner interest + legal feasibility?
5 Decision points Right balance between Council oversight and staff flexibility?
Outcome today: clear direction for the adoption draft.
3
Why Update the Strategy Now?
Annexation Strategy Update
The current strategy identifies opportunities; the update clarifies where to actively invest.
2003
Annexation Policy
- Fiscal, service and
boundary principles
2020
Annexation Strategy
- Comprehensive
priority framework
2026
Update
Proposed framework
Active vs. long-term
priorities with clearer
resource direction
Core question: Where should the Town proactively spend limited annexation
resources?
4
What Needs to Change?
Annexation Strategy Update
The update is less about finding every possible annexation area and more about
prioritizing effort.
Theoretical value does not always justify
sustained staff work
Retail-revenue opportunities need clearer
priority
Long-term opportunities should be
monitored without becoming active work
programs
Owner-initiated opportunities need a
predictable pathway to Council.
Council decision points should be explicit
5
Proposed Strategic Direction
Annexation Strategy Update
Focus proactive annexation efforts primarily on opportunities reasonably expected
to increase Oro Valley’s long-term fiscal position.
Important qualifier
Annexation is not an
objective in itself.
It is a tool for advancing fiscal, service, economic-development, land-use and broader community interests.
Reoccurring retail revenue is the proposed focus for
proactive work
It is not the only reason annexation may be
considered
Owner-initiated or strategic opportunities can still
come forward
Fiscal, service and infrastructure impacts remain
central
6
Guiding Principles
Annexation Strategy Update
Principles are applied together—not as a mechanical scorecard.
1 Focused use of Town resources
2 Long-term fiscal benefit
3 Protection of existing service levels
4 Alignment with community and economic goals
5 Feasibility and likelihood of success
Balanced
judgment
A mature retail center and
State Trust Land require
different levels of analysis.
7
Eligibility Is Not Priority
Annexation Strategy Update
A legally possible annexation is not automatically an active Town initiative.
Eligibility▸Credible legal pathway▸Contiguity and boundary rules▸Petition and notice requirements▸Service-plan requirements▸Council action remains required
Priority▸Likely benefit to residents▸Strategic importance▸Realistic prospects for progress▸Justifies intentional staff time▸Can change as conditions change
8
Proposed Priority Framework
Annexation Strategy Update
Two tiers distinguish active work from longer-term strategic monitoring.
Priority concept Tier 1 — Active Opportunities Tier 2 — Long-Term Strategic Areas
Staff posture Proactive analysis, outreach and coordination Monitor, maintain/build relationships
Current fit High potential + plausible pathway + readiness Strategic value but limited current readiness
Resource level Sustained investment during strategy life Periodic attention unless conditions change
Council role Establish priorities Move to Tier 1 when triggers emerge
Examples Ina/Oracle; Tangerine/Thornydale State Land La Encantada; Foothills Mall/Ina; Oracle Corridor
Council question: Does this structure create the right distinction between active priorities and strategic
opportunities?
9
Tier 1 — Ina/Oracle Commercial Areas
Annexation Strategy Update
Established retail nodes remain the clearest
near-term fiscal opportunity.
Council direction: Continue treating Ina/Oracle as an active priority?
Mature commercial activity and
recurring retail sales-tax potential
Immediate adjacency to Town
boundaries and gateway value
Potential for a relatively retail-
focused annexation approach
Property-owner interest remains
uncertain
10
Tier 1 — Tangerine/Thornydale State Trust Land
Annexation Strategy Update
Council has directed staff to evaluate “880’s”
long-term potential and to return for further
direction.
Council direction on October 21st: Should sustained coordination and analysis continue as Tier 1 work?
Major adjacent State Trust Land opportunity
along the Town’s western edge
Potential for future commercial and
economic activity
Opportunity to shape development
framework before auction and build-out
Requires ASLD coordination, technical
analysis, entitlement work and agreements.
Planning scenarios are assumptions – not
commitments or approvals
Presentation to Council on October 7th.
11
Tier 2 — Long-Term Strategic Areas
Annexation Strategy Update
Tier 2 preserves strategic awareness without making every opportunity an active work program.
La Encantada Foothills Mall / Ina Oracle Corridor
La Encantada and pathway: high value, highly complex contiguity and residential/service exposure
Foothills Mall/Ina corridor: redevelopment and gateway potential, but significant ownership and service
complexity
Oracle Corridor: monitor sequencing and smaller commercial opportunities south toward Orange Grove
12
Owner-Initiated and Unanticipated Opportunities
Annexation Strategy Update
The strategy remains flexible, but Council controls whether unplanned work advances.
1 Meaningful
owner
interest
2 Preliminary
legal
feasibility
3
Council
direction
4 Next stage
or
decline
Staff brings the matter forward once the two threshold conditions are established
Staff provides preliminary fiscal, service and Tier 1 capacity context when available
Council may decline, authorize limited evaluation, or direct the next appropriate step
13
How Opportunities Are Evaluated
Annexation Strategy Update
Legal feasibility is the threshold; the rest is policy judgment.
Legal
feasibility
Threshold issue
Fiscal impact Does it strengthen long-term fiscal position?
Economic development Does it advance revenue or development objectives?
Service delivery Can the Town serve the area without reducing existing
levels?
Owner/community
conditions
Is there a reasonable path to participation and
implementation?
Land use and growth
management
Would annexation improve boundaries and
development coordination?
Different annexations require different lenses: mature retail ≠ State Trust Land ≠ residential pathway.
14
Council Decision Points
Annexation Strategy Update
Staff can explore; Council retains control over consequential commitments.
1 Strategy & priorities
Adopt or materially amend the
strategy and Tier 1 priorities
2 Unanticipated opportunity
Decide whether owner-initiated
opportunities warrant more
work
3 Formal pursuit
Authorize significant annexation
work requiring substantial
resources
4 Agreements & commitments
Approve material financial,
infrastructure or service
commitments
5 Statutory / land-use actions
Conduct hearings and consider
required land-use actions
6 Annexation ordinance
Decide whether to extend the
Town’s corporate limits
Council question: Are these the right points to return for direction and approval?
15
Council Discussion and Direction
Annexation Strategy Update
Direction requested before staff returns with a revised strategy.
1 Strategic focus Focus proactive resources primarily on retail and commercial opportunities with the
potential to strengthen Oro Valley’s long-term fiscal position?
2 Priority structure Use Tier 1 and Tier 2 to distinguish active work from monitoring?
3 Current priorities Confirm Ina/Oracle and 880 as Tier 1, and La Encantada/Foothills/Oracle Corridor as Tier
2?
4 Unanticipated
opportunities Bring owner-initiated opportunities forward after owner interest + legal feasibility?
5 Decision points Right balance between Council oversight and staff flexibility?
Outcome today: clear direction for the adoption draft.
16
Next Steps
Annexation Strategy Update
Staff will revise the strategy based on Council direction.
1
Council
discussion
Confirm/improve policy
direction and priority
framework
2
Staff revision
Update draft strategy and
supporting materials
3
Council
consideration
Return approximately one
month later
4
Implementation
Administer adopted
priorities and report
significant activity
The revised strategy will be presented for possible adoption—not as a commitment to complete
any specific annexation.
17
2026 Annexation Strategy Update
Discussion
18
Appendix
19
Appendix: Annexation Is a Relationship-Based Process
Annexation Strategy Update
The Town’s value proposition depends on the stakeholder and the opportunity.
Property owners may value
certainty, coordination or
infrastructure clarity
Residents may focus on public
safety and service quality
Developers may need predictable
processes and implementation
clarity
Public agencies may prioritize
planning, infrastructure and long-
term obligations
Gift Clause and budget authority
define the limits of incentives
20
Appendix — Legal Guardrails
Annexation Strategy Update
Key statutory requirements remain central to any annexation pathway.▸Contiguity and boundary configuration requirements▸Standard petition process and property-owner thresholds▸Required notice and public hearing steps▸10-year service plan and infrastructure disclosure requirements▸Restrictions on creating county islands▸HB 2793 streamlined option for qualifying single-owner annexations
Streamlined process ≠
lower decision quality
For qualifying single-owner annexations, Council may have a faster statutory path after legal confirmation — but still needs adequate fiscal, service and operational information.
Sources: A.R.S. § 9-471; Arizona Legislature HB 2793 summary.
21
Annexation
Operates Within
Clear Legal
Guardrails
What State Law Requires
Contiguity
Size and Shape
Petition thresholds
10-year service plan
No county islands
22
Appendix — Fiscal Analysis Components
Annexation Strategy Update
Fiscal analysis should show the full municipal effect, not revenue alone.
Measure Illustrative considerations
Recurring revenue Retail sales tax; utility sales tax; state-shared revenue
One-time revenue Construction sales tax and other development-dependent revenues
Recurring operating costs Police; roads; court; general government; service delivery
Capital / infrastructure Initial infrastructure needs and longer-term maintenance obligations
Risk and assumptions Development timing, ownership conditions, service exposure and lifecycle costs
Revenue dependent on future development should be distinguished from revenue generated by existing uses.
1923
Appendix — Tier 1
24
Appendix — Tier 2
25
26
Local Policy
Annexation Operates Within Clear Legal
Guardrails
The ability to provide full municipal
services.
Fiscal neutrality or positive fiscal impact.
Logical service areas and boundary
consistency.
Growth management objectives.
Consistency with the Your Voice Our
Future General Plan.
Current Annexation
Strategy
Current
Westward Look Resort
Tangerine 880
Casas Adobes Plaza
La Toscana Plaza
Cottonwood Properties
27
Current Annexation
Strategy
Near-term
Residential area adjacent to
Westward Look
Honeywell
28
Current Annexation
Strategy
Mid Term
Foothills Mall
Pima Community College
Omni Tucson National
Residential
Nearby/surrounding
commercial and residential
areas
29
Current Annexation
Strategy
Long Term
Arroyo Grande
Tangerine/Moore
Shannon/Thornydale
La Cholla/Shannon
30