The Town Council expanded the use of the half-cent sales tax previously dedicated to golf to all Parks and Recreation. The Town will be able to add amenities at Naranja Park, the Community Center, and expansion of the Multi-use paths using money that previously went only to golf, with no additional taxes.
A prior council enacted a half cent sales tax with a 4-3 vote when they purchased the community center and golf courses. This money was restricted for that purchase, and it all went towards a golf subsidy. With our improvements to the golf courses in the past few years, there is an opportunity to invest in our parks and recreation system.
After the Town conducted a Parks and Recreation Master Plan study, the Council decided to expand the use of the half-cent sales tax to more equitably support all Parks and Recreation in Oro Valley and address high priority needs at no additional cost to residents.
- Priority #1 – Expand Naranja Park
- Priority # 2 – Replace the golf course irrigation on all 36 holes, rebuild the Community Center tennis courts, and expand the parking lot.
- Priority # 3 – Add new multi-use paths along La Canada from Lambert to Naranja Dr., and a MUP from La Canada to Naranja Park to provide safe access to the Community Center and Naranja Park
Golf savings plus the growth in the half-cent recreation sales tax revenues created the ability for the Council to fund Town recreation needs within existing town revenues. Council approved a $25M bond at a record-low 2.31% interest to fund the highest priority recreational needs without any new taxes.
The golf savings alone will pay for the bond service cost, with no new taxes.
Bond funded recreation repairs and new amenities will start construction in 2022 and be completed by 2024. One of the reasons I am running for re-election is to see through the continuation of important projects like this.
The bond service of $1.6M per year will cost less than building these amenities over time. The town’s financial advisor, Stifel, projected that the bond will save Oro Valley $7-10 Million compared with building the park over 20 years (full details below).
And most importantly, these amenities will be available for our residents and children to use now when they are needed rather than in 20 years, and can be funded with no additional taxes.
“By locking in the financing of 25 million of project funds, the Town likely saved significant taxpayer dollars when compared to a “pay as you go” option which would have been susceptible to increasing construction costs and high rates of inflation. Under certain assumptions with investments over 10 years, it is estimated that the Town saved over $4 million in net present value dollars by executing the transaction when it did.”
Stifel, Nicolaus & Company, Incorporated | Member SIPC & NYSE |