Town government must provide required town services in a fiscally responsible way. Town revenues come from sales taxes on resident purchases, state shared revenues, new construction, and fees for town services. We must manage town funds responsibly to ensure that we are able to provide resident services now and in the future in spite of changing economic conditions.
Oro Valley has managed through the pandemic and continues to be financially strong, increasing 2 levels from an AA- to an AA+ credit rating (S&P Global Ratings).
Last year the town seized the opportunity to bond $17.6M at 2.4% and invest $10M of town reserves to fix our $27.6M of underfunded police pension debt. The OVPD police pensions are now fully funded and the town’s investment is projected to save up to $30M in reduced future contributions, with the bond service less than the annual pension savings. This will save the Town $700k this year alone.
We also bonded $25M at 2.3% to fund the top priority projects identified in our year-long Parks Master Plan study: the build out of Naranja Park, the community center tennis court re-build, 10 new pickleball courts, a 40% parking lot expansion, and irrigation replacement on our two 18 hole golf courses.
These projects will be completed by 2024 and will cost far less than if we funded these parks amenities over the next 20 years. If we waited and bonded at today’s higher interest rates the parks bond would have cost $10M more. The Park bond service of $1.6M will be funded by reduced golf losses and these amenities will be provided with no additional taxes to town residents.
FY 21-22 will soon be over, the town projects ending this year with $26M in reserves twice the $13M required minimum. This strong reserve position will occur even after making the one time $10M investment to pay down police pension debt.
I am committed to provide town services with no property taxes.