Oro Valley Town Council reviews 10-year capital improvement plan; major water project drives budget

Oro Valley Town Council reviewed the town's proposed 10-year capital improvement program (CIP) at a budget study session on April 30, 2025, and discussed a slate of water, street, parks and public-facility projects while taking no formal CIP votes that evening. Later in a special session the council approved staff direction resulting from an executive session on employee compensation.

The presentation by the town's finance staff showed water-related projects account for the largest share of the proposed CIP for the coming year. Chief Financial Officer Mr. Gephardt said the Northwest recharge/recovery/delivery system project represents the largest single appropriation in the draft budget: the CIP lists $24,700,000 proposed for the NWRDS next fiscal year, of which about $8,000,000 is carryover and roughly $16,700,000 would be new funding. Gephardt also said about $11,000,000 had been spent on the project year to date. "As a reminder, per our financial policies, projects must be at least $50,000 and, over 2 years estimated useful life to qualify for inclusion in the capital improvement program," Gephardt said.

Why it matters: the NWRDS and other water projects drive a large share of next year's capital spending and are funded largely from impact and groundwater preservation fees. During the session council members pressed staff for clearer funding breakdowns and timing, and discussed safety, maintenance and equity priorities across parks, roads and public facilities.

Key numbers and funding sources

- NWRDS proposed appropriation next year: $24,700,000 (about $8,000,000 carryover; $16,700,000 new funding). Year-to-date expenditures reported: just under $11,000,000. (Chief Financial Officer Gephardt) - Gephardt said the NWRDS is funded roughly 60% by impact fees and 40% by the groundwater preservation fee; Vice Mayor Barrett asked that future slides separate those sources to make the distinction clearer for council and the public. - Townwide CIP proportions shown by staff: about 62% water infrastructure, 13% streets and roads, 11% parks and recreation, 11% public facilities, 2% stormwater and 1% public safety.

Notable line items discussed

- Festoso Trails Nature Preserve Pond: $2,000,000 to repair and refill the pond; other related amenities not included pending scope decisions (presented by Gephardt). - Pavement preservation program: about $3,200,000 proposed for next year; annual bridge maintenance: $100,000. - Community center parking lot: $950,000 proposed for complete removal and replacement of crumbling pavement; Public Works Director Paul Kiesler described the lot as "crumbling" with trip hazards and recommended replacement to avoid increased future costs and liability. - Traffic and multimodal projects: $750,000 for a traffic signal at Tangerine and Musette (described as a safety improvement for Naranja Park's north entrance); $350,000 for the Lambert Lane multiuse path; $100,000 for a dedicated right-turn lane at La Canada and North Placita El Cobo. - Water utility vehicles and equipment: several vehicle replacements and one Ford F-450 for the water utility were noted; some transit vehicles are estimated to be 80% grant-funded. - South pump station (16th hole): $510,000 proposed to replace a failing pump station associated with turf irrigation; staff said a manifold leak and internal corrosion made replacement necessary and warned of turf loss if the station failed. - Stormwater: Sierra Wash at Glover Road, approximately $318,000 proposed; staff said a federal grant application seeks to cover 75% of that cost.

Council discussion and follow-ups

- Vice Mayor Barrett asked staff to separate groundwater preservation fees from development impact fees in future materials; Gephardt and staff agreed to provide that breakdown. - Barrett and other members questioned timing and prioritization for projects including Lambert Lane MUP, Moore Road/La Cholla intersection improvements (which will require county coordination), and the proposed police facility (placed on the contingent list pending scope and funding decisions). - After a council discussion, members agreed to move a $250,000 Naranja Park shade project from the contingent list into next year's recommended CIP. Vice Mayor Barrett solicited objections and none were raised. - Councilmembers voiced safety concerns that influenced support for the community center parking lot replacement; Director Kiesler said the lot requires full reconstruction rather than routine preservation work.

Process notes and next steps

- Gephardt and Town Manager Wilkins reminded council that the budget process includes multiple public meetings: May 5 (operational budget presentation), May 20 (Budget and Finance Commission meeting), June 4 (tentative budget adoption public hearing) and June 18 (final budget adoption). - No formal CIP approvals were taken at the April 30 study session; staff will incorporate council direction and provide revised materials ahead of the public hearings and the tentative budget.

Executive session and special session action

- During the special session that followed the study session, the council voted to go into executive session under ARS 38-431.03(A)(5) to discuss negotiations with employee organizations. The motion to convene the executive session passed with a recorded vote of 7-0. - After returning from executive session the council, by a separate motion, approved the "approval of any direction to the town manager and or necessary staff as discussed in executive session pertaining to negotiations with employee organizations regarding salaries or compensation"; that motion was seconded and passed with a recorded vote of 6-0 (Vice Mayor Barrett was not present for the return vote). The motion on the special session record was stated as "I move as directed." (Moved, seconded and carried as recorded.)

What the record does not say

- The council took no formal vote to adopt or amend the CIP on April 30. The special-session motions refer to directions given in executive session about employee negotiations but the transcript record does not disclose the substance of those directions (the executive session was held in accordance with state law).

Sources and attribution

Statements and numerical figures above are drawn from the April 30, 2025 Oro Valley Town Council budget study session and the special session that followed. Quotes are attributed to speakers in the meeting record: Town Manager Wilkins; Chief Financial Officer Gephardt; Public Works Director Paul Kiesler; Vice Mayor Barrett; and councilmembers Murphy, Green, Nicholson, Jones Ivy and Rob.

Ending note

Council members asked staff to return with refined cost breakdowns, the requested fee-source separation for the NWRDS, and additional design or alternative options for projects such as the community center parking lot and multiuse-path priorities ahead of the May and June budget meetings.