OV Town Talk: Highlights from the Town Manager’s Recommended Budget

Published on April 19, 2023

By Chris Cornelison, Interim Town Manager

Oro Valley continues to be a highly engaged group of residents who care about the big picture as well as the little details. There is tremendous value in clearly communicating both, as we present to Council and to residents the Town Manager’s Recommended Budget for FY 2023/24. My personal message in this year’s Recommended Budget provides the over-arching themes and exciting projects that our residents will be happy to hear about, and it is my pleasure to highlight some of that information with you in this article. The budget document also provides a detailed look at the expenditure categories for each department and fund, as well as a comprehensive list of all capital improvement projects for the next 10 years. And as a way of following up with our community on goals reached and projects completed, the key accomplishments of each department for FY 22/23 are also provided. If you would like to peruse the full document, please visit orovalleyaz.gov and scroll down to “Featured content.” If you’d like a quick overview of what this year’s budget has in store, then I invite you to continue reading.

The FY 2023/24 budget reflects the priorities of the current and upcoming Council Strategic Plans, and it focuses on the following themes:

• Addressing notable cost increases in capital projects and sustained high prices in supplies and services.
• Adding limited personnel to meet growing service demands.
• Implementing a continued, robust capital investment strategy utilizing the remaining Parks and Recreation $25 million bond proceeds and other one-time revenues.
• Funding annual step and pay increases per the Town’s recently completed classification and compensation pay plan, adopted by Town Council, to ensure the organization attracts and retains quality employees.

In brief, the Town’s balanced budget for Fiscal Year 23/24 totals $147.9 million, representing an increase of only $184,934, or one-tenth of one percent more than the adopted FY 22/23 budget of $147.7 million. The General Fund budget totals $56 million, a 5.5 percent increase from the FY 22/23 budget of $53.1 million.

Just like the average American family, the Town of Oro Valley has been heavily impacted by inflation and rising interest rates; however, the Town has always actively monitored current economic conditions during budget development, which results in conservative revenue forecasting and judicious resource allocation. As such, we remain in a strong financial position. Additionally, despite the increasing costs in personnel as well as operations and maintenance, the Town has budgeted in such a way that ensures continued levels of service, even with a potential economic downturn.

The FY 23/24 Recommended Budget includes capital improvements totaling $47.7 million, making up 32.2 percent of the overall budget. Capital improvement projects in the area of Parks and Recreation include continued master plan implementation at Naranja Park, ADA and parking lot improvements at the Community Center, installation of multi-use paths along La Cañada Drive and Naranja Drive, irrigation replacement at the Cañada Golf Course, and improvements at the Vistoso Trails Nature Preserve, to name a few.

Additional capital improvement investments will be made in the Town’s Pavement Preservation Program, expansion and space improvements for the Town Court, Water Impact Fee Fund projects and portions of the Northwest Recharge Recovery and Delivery System project.

As with previous budgets, strategic investments are being made in the seven focus areas of the Council Strategic Plan, which are economic vitality; culture and recreation; public safety; roads, water and Town assets; land use and design; efficient and effective government; and financial stability and sustainability. To that end, in addition to the capital improvements previously mentioned, funding is also included for continued investment in historic Steam Pump Ranch; resources to begin the process of updating the Town’s 10-year General Plan; and implementation of a public, web-based dashboard to enhance the community’s understanding of Town finances and operations and the availability of information.

Since this is the Town Manager’s Recommended Budget, there are still several steps in the process before Council adopts a final budget document, and that process involves you—our residents. There will be two public hearings, during which members of the public can share their input on the budget prior to Council adoption. The hearings are part of regularly scheduled Council meetings on June 7 and June 21. By the time you read this article, the Town will have issued a press release with complete details, which you can find at orovalleyaz.gov.

Public input is an important part of this process, so we invite you to review the Town Manager’s Recommended Budget and share your thoughts at the public hearings.

Once the final document is adopted, staff will then develop the reader friendly “Know Your Town’s Budget” document—a simple, two-page summary that provides an overview of the Town’s key revenues and expenditures. Keep an eye out for that summary in July. In the meantime, if you have any questions about the budget, we would be happy to assist you. Please just send your question to Ask@orovalleyaz.gov, and staff will follow-up with you.