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Oro Valley commission reviews annual report draft, financial snapshot and sets march schedule for rate notice
Summary
Commissioners reviewed the draft Water Utility Annual Report, heard a mid‑year financial update showing about $12 million in revenues through Dec. 31 and discussed a March schedule that includes a March 4 council presentation of a notice of intent to increase water rates and a March 9 commission recommendation to render the annual report to council.
The Oro Valley Water Utility Commission reviewed the draft Water Utility Annual Report for 2025 and a mid‑year financial report that officials said shows revenues on track to meet or exceed budget.
Finance staff reported that, through Dec. 31, 2025, total revenues were about $12 million (approximately 65% of the annual budget) and that potable water sales and reclaimed water deliveries were performing at or above expectations for the quarter. Staff said capital encumbrances (for example, the pre‑purchased bolted tank and well rehabilitation costs) have been placed but many invoices will post in later quarters. Vacancy savings were cited as a reason personnel expenses are running below budget projections.
The commission also discussed customer engagement: staff said the town’s customer portal has roughly 14,000 users and the utility plans to migrate the remaining Water Smart app users (about 3,000 customers) into the portal by July 1 to consolidate functionality and reduce third‑party subscription costs.
Staff outlined the schedule for the rate‑setting process: a presentation of the notice of intent to increase water rates is slated for the town council on March 4, followed by required public advertising and a public hearing later in the process. The commission is scheduled to consider a recommendation to render the annual report to council at the March 9 commission meeting.
Commissioners asked about capital deferrals and whether projects were being delayed to manage fiscal performance; staff said some capital is encumbered but expenses will show up in third and fourth quarters when work is invoiced. Staff committed to providing additional detail in the final annual report and to answer specific line‑item questions submitted by commissioners before the March meeting.
Next steps: commissioners to return edits by Feb. 18 and staff to finalize the annual report for a March 9 recommendation to council; staff to present the notice of intent on March 4 and pursue required public notice periods ahead of any rate changes.
