Oro Valley staff: FY 2024–25 finances largely on track but construction sales tax lags

Oro Valley finance staff reported to the Budget and Finance Commission on April 15 that the town’s fiscal year 2024–25 finances remain broadly on track but show weakness in construction-related sales tax.

Town finance staff walked commissioners through the town’s financial update through February 2025, saying total revenues through February were about $37.4 million — roughly 4% below the previous fiscal year — while year‑end estimates remain close to the adopted budget after several one‑time offsets.

The overview: the town’s local sales tax was down about 3% year over year and state shared revenues about 10% lower, driven by urban revenue sharing. “Charges for services is up about 5%, so that’s a positive sign,” said Mr. Gephardt, the town staff liaison presenting the report. He told commissioners the town received an AMRRP insurance rebate that should be regarded as a one‑time item helping the near‑term picture.

Why it matters: weaker construction sales tax is the primary driver of the variance from budget, and the…