Budget and Finance Commission recommends Oro Valley council consider new tax categories and fee increases

The Oro Valley Budget and Finance Commission voted Sept. 16 to recommend the Town Council consider a package of new tax categories and revised fees, including a proposed stormwater utility fee and parks and recreation fee adjustments.

Vice Chair Carlsberg made the motion to recommend council approval; Commissioner Okezie seconded, and Chair Garland declared the motion passed by voice vote. The commission’s formal motion was: "to recommend to town council the approval of new taxes and the revised fees." The transcript does not list an itemized roll-call tally for the vote.

Michael Spathe, principal planner for the Town of Oro Valley, summarized the public outreach program that preceded the recommendation. He said staff took the proposals to council for feedback in June, held three online community engagement sessions in July and provided recordings online, and conducted a joint business forum with the Oro Valley Chamber of Commerce to solicit input from local businesses.

Spathe said attendance at the online events was modest but the chamber forum was “pretty well attended” and produced substantive discussion. He asked the commission for a recommendation on three separate proposals: the new tax categories, the stormwater utility fee proposal and parks-and-recreation fee revisions.

Dave Gephardt, staff liaison, framed the proposals around cost pressures the town is facing. He said rising public-safety costs and higher costs for road maintenance and pavement preservation create a “pinch point” and that many fee categories have not been adjusted in roughly 10 years. "If that standard cannot be maintained due to lagging revenues, then that needs to be addressed," he said.

Commissioners who spoke during the discussion praised staff outreach and expressed support for recommending the proposals to council. One concern raised during outreach and relayed at the meeting involved a proposed commercial rental tax. Gephardt said a business representative and a resident expressed worry that adding a commercial rental tax on top of existing property tax and rental costs could make operating in town more difficult for small businesses.

The commission asked when council would consider the proposals. Gephardt said staff planned a council study session on Oct. 1 and a possible final council action on Oct. 15.

Votes at a glance - Approval of Aug. 19, 2025 meeting minutes — Motion passed by voice vote; transcript gives no roll-call tally and minute details were routine and uncontested. - Recommendation on new taxes and revised fees — Motion by Vice Chair Carlsberg, second by Commissioner Okezie; Chair Garland declared motion passed by voice vote; individual vote tallies not specified in transcript. - Adjournment — Motion passed; individual vote tallies not specified in transcript.

Staff indicated recordings of outreach events are posted to the town website and said they will present the proposals to Town Council in October for additional study and final action.