Town Manager’s Recommended Budget for fiscal year 2025/26 released

Published on April 30, 2025

ov-seal-news.jpg

ORO VALLEY, Ariz. (April 30, 2025) — The Town of Oro Valley Town Manager’s Recommended Budget for fiscal year (FY) 2025/26 is now available online. Click here to view the full budget document.

The total budget across all funds—including highway, water, stormwater, parks and recreation, grants, debt service, and capital—is $147.1 million, a 2.5% decrease from FY 2024/25. The General Fund, the Town’s main operating fund, totals $53.9 million with contingency funds, reflecting a 1.5% increase from the prior fiscal year.

“This Recommended Budget is the result of months of detailed, cross-departmental collaboration and input from staff, Town Council, and the community,” said Town Manager Jeff Wilkins. “It strives to meet both community needs and organizational realities, while recognizing the challenges ahead.”

Messaging highlights from the Town Manager’s Recommended Budget for FY 2025/26 include:

The proposed budget reflects a strategy of fiscal conservatism in the face of anticipated financial headwinds. Driven by reductions in state revenue, slowing development, stagnant sales tax growth, and a five-year forecast indicating potential financial difficulties, the budget prioritizes maintaining core services while implementing significant cost-saving measures. Despite unavoidable increases in areas like utilities and debt service related to essential water infrastructure projects, the overall strategy aims to mitigate the impact of declining revenue and ensure long-term financial stability.

Capital project expenditures are substantially reduced in FY 25/26 following significant FY 24/25 projects, including the Community Center entryway and elevator upgrade, Town Court expansion, and various Water Utility infrastructure improvements.

Operation and Maintenance (O&M) spending largely held flat, with General Fund increases driven by unavoidable utility, insurance, and vehicle replacement reserve costs, balanced against reductions in areas like professional services and travel. Other increases are linked to revenue-generating programs and external inflationary pressures.

This FY 2025/26 budget aligns with the priorities of the current Strategic Plan, and this budget process reinforces Oro Valley’s commitment to the prudent allocation of resources across Town operations to improve the high service levels Oro Valley residents expect to live, work, play, and prosper in our community.

Budget process public meetings

All meetings will be held at Council Chambers (11000 N. La Cañada Drive). The public is invited to stay informed and participate:

  • April 30 at 6 p.m. – Budget Study Session #1
  • May 5 at 6 p.m. – Budget Study Session #2
  • May 20 at 4 p.m. – Budget and Finance Commission Meeting
  • June 4 at 6 p.m. – Public Hearing and Tentative Budget Adoption
  • June 18 at 6 p.m. – Public Hearing and Final Budget Adoption

For more information, contact ask@orovalleyaz.gov.

###

Tagged as:
Back to top