Oro Valley projects small FY25 general-fund shortfall; spending savings, higher interest income reduce draw on reserves

David Gephard, a town staff member, told the Oro Valley Budget and Finance Commission on Aug. 19 that the town’s general fund is tracking slightly below last year while savings on spending and unexpectedly strong interest income are narrowing a projected budget gap.

Gephard said town revenues through May are “down about 4 percent year over year,” driven mainly by local sales tax and state-shared revenues, but that personnel vacancies and operating savings are trimming expenditures. “We are expecting for our year-end estimate to come in just a bit under budget, about $170,000,” he said.

The update matters because the general fund pays for core services the town prioritizes, including public safety and pavement preservation. Gephard told commissioners that projected savings in personnel and operations and maintenance will reduce the planned use of general-fund balance from roughly $4.1 million in the budget to about $2.3 million as of the May estimate, and that the town’s 30 percent expenditure reserve policy remains exceeded by an estimated…