Oro Valley adopts FY 18-19 budget with estimated $1.3 million surplus

Published on June 19, 2018

At its June 6, 2018 meeting, the Oro Valley Town Council approved the adoption of the final budget for fiscal year 2018/19, in the amount of $143 million"”an 11 percent increase from the Adopted FY 2017-18 Budget totaling $128.6 million. The budget increase is due in large part to the revenue increase by way of funding from the Regional Transportation Authority (RTA) for the upcoming La Cholla widening project.

As the Town wraps up the current fiscal year, ending June 30, 2018, it is projecting a $1.3 million surplus, resulting from fiscally responsible spending and strong sales tax collections due to a local economy that continues to improve both at the state and local level. These surplus funds will be deposited into the Town's capital fund savings account for future planned projects.

"The fiscal year 2018/19 adopted budget continues to reflect the Town's commitment to invest in our community, preserve our valuable assets and infrastructure and maintain strong cash reserves to ensure fiscal stability," said Chief Financial Officer Stacey Lemos.

"The FY 18/19 budget provides solutions and investments that improve long-term financial sustainability and controls," said Town Manager Mary Jacobs. "At the end of the day, that means we are able to strengthen our economic development, maximize staff and resources, implement efficiencies, and invest in capital projects that enhance facilities and services for our residents."
Residents can expect to see facility improvements and expanded programming at the Community Center, renovation of ballfields at James D. Kriegh Park, expansion of the dog park at Naranja Park, construction of a police substation and evidence facility, and the Town's ongoing commitment to outstanding infrastructure by investing in roadways and transportation design.

The Town of Oro Valley retains a very healthy 28.5 percent general fund reserve balance, a fund that has consistently been maintained at or above the Town Council policy of 25 percent minimum. As in previous years, the Town will finance some of the planned improvements through a tax exempt municipal bond, which enables local government to capitalize on current"”rather than projected rising"”construction costs. This funding mechanism also assures financial participation by future residents"”not just current residents"”as debt service payments will be made from sales taxes, impact and utility fees. With its excellent AA- bond rating, the Town expects very low bond interest rates.

As in previous years, the Town's Budget was developed to support the voter-approved 2016 Your Voice, Our Future General Plan, and the subsequent Town Council-adopted 2017 Strategic Plan. Additionally, the Town had a record-breaking year of public input on the budget process, as more than 400 residents participated in the "5 Questions in 5 Minutes" online budget questionnaire in February, which asked them to rank their priorities in key areas such as public safety, parks, recreation and water.

To learn more about this year's budget, including related information and presentations, click here to visit the FY 2018-19 Budget web page.

Town receives 10th consecutive finance award for FY 2017-18
Distinguished Budget Presentation Award from the Government Finance Officers Association (GFOA), with special recognition for the Town's Capital Program section of the budget. This is the 10th consecutive year that the Town of Oro Valley has received this award from the GFOA. This award is the highest form of recognition in governmental budgeting. According to the GFOA, "it reflects the commitment of the governing body and staff to meeting the highest principles of governmental budgeting." In order to receive the budget award, the Town had to satisfy nationally recognized guidelines for effective budget presentation, ensuring it successfully serves as a policy document, financial plan, operations guide and communications device.