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Why does the Town’s annual budget continue to increase?

The Town’s annual budget increases to match the revenues that the Town receives. Think of it in terms of getting a pay raise at work. If your personal annual income increases, then so does your budget. You must now plan how to use, invest or save those additional funds that are coming into your household. In the Town of Oro Valley, revenues come from sales taxes, construction taxes, bed (hotel) taxes, state-shared revenues and grant funding from outside sources, to name a few. If the budget did not increase, these income sources would continue to be received by the Town but would not be spent in the full delivery of services to the community.

The primary reasons Oro Valley’s budget increased for FY 18-19 are the increased revenues from PAG/RTA outside funding for roadway projects, bond funding to pay for planned capital projects and increased savings balances in our funds that are also earmarked to pay cash for capital projects.