The Oro Valley Town Council on Wednesday took three separate procedural votes to begin statutorily required public notice and approved a capital contingency reallocation to complete the purchase and necessary improvements of a new police administration building.

Police building funding

The council voted unanimously (7–0) to reallocate capital contingency to cover purchase and improvement costs for the new police administration facility at 13101 North Oracle Road. The staff report identified a contingency reallocation of $5,450,000 to fund the building purchase and immediate "button‑up" work the public works director said are required to protect the town’s asset.

"This is just a housekeeping item," the town’s finance staff told council, explaining that contingency lines are reallocated into capital spending lines after a purchase. Council approved the reallocation without amendment; the motion passed 7–0.

Public‑notice steps for taxes

Council also authorized staff to proceed with public and business notice required under state law for three possible tax code changes. None of the three taxes were enacted at the meeting; each authorization directs staff to follow the notice procedures set by Arizona Revised Statutes so the items can return to council for a hearing and final vote.

- Commercial rental tax: Council voted 4–3 to direct staff to comply with notice requirements for an amendment to the town’s tax code to implement a phased commercial rental tax. The motion’s proponents argued the step is prudent to protect future budgets, while opponents said the town should pursue further internal cost reductions and other measures before notifying businesses. The recorded no votes were Councilmember Murphy, Councilmember Nicholson and Vice Mayor Barrett.

- Telecommunications tax: Council voted 4–3 to proceed with notice on a proposed increase in the town telecommunications tax rate. Discussion noted that the change would add a line item to phone bills for residents and that neighboring jurisdictions already levy similar fees. The no votes were Councilmember Murphy, Councilmember Nicholson and Vice Mayor Barrett.

- Use tax: Council voted 4–3 to authorize public notice of possible implementation of a use tax (a structural change to the town tax code). Staff explained that the use tax requires town‑level code changes and a public notice; businesses do not require the same written business notice as other taxes under the statute. The no votes were Councilmember Murphy, Councilmember Nicholson and Vice Mayor Barrett.

Votes and procedure

These notice votes are procedural: no new tax was adopted at the Nov. 5 meeting. If the town proceeds, staff will publish notices and provide affected businesses and the public the statutorily required information, after which the council may hold hearings and a future council vote would be required to adopt any tax.

What happens next: staff will prepare statutorily required notices and a schedule for hearings if the council approves moving forward. Council and staff may also present additional fiscal analyses and public outreach before final decisions on any tax proposals.