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Oro Valley’s tentative FY2024 budget trims five-year capital shortfall; council set to adopt final budget
Summary
Town staff told the Budget and Finance Commission the tentative FY2024 budget totals $151,135,253 and that revised inflation assumptions reduce the five-year capital deficit from about $8.5 million to roughly $3.1 million; staff says no new full-time positions are proposed and highlighted the NERDS water project as the largest CIP item.
Town staff presented the tentative FY2024 budget to the Oro Valley Budget and Finance Commission on June 18, describing a revised five-year forecast that narrows the town’s projected capital shortfall but leaves a funding gap to address.
“Even with the more optimistic inflationary factors applied, a need still exists for additional resources over the five year period,” staff said, explaining a change to the inflation assumptions that reduced the projected five-year capital deficit from about $8.5 million to about $3,100,000.
Key numbers from the staff presentation: the tentative budget totals $151,135,253 (a $5,300,000 decrease from the manager’s recommended budget and a $2,700,000 increase from the current-year adopted budget); the general fund portion is about $53,100,000; the townwide CIP next year stands at a little over $52,000,000, with the NERDS water project driving roughly $28,100,000 or 54% of the CIP.
Staff said the tentative budget includes no new full-time equivalents (FTEs) for the coming year, though it allows some part-time positions, reclassifications and pre-hiring for the police department so recruits can complete academy training before anticipated retirements. The town also budgeted for an 11.5% blended increase in health-care costs next year and cited local wage comps when explaining proposed wage assumptions.
During questions, staff confirmed an illustrative debt-issuance scenario had been included earlier in modeling to show how borrowing could help balance the five-year outlook, but the scenario was not presented in detail at this meeting. On expenditure limits, staff said the town could present a budget using the State’s $170 million cap calculation to increase appropriation authority, but recommended pursuing a permanent adjustment through voters to safely expand long-term capacity.
What’s next: staff said council has placed the adopted (final) budget on its agenda the following night, and the tentative budget presented establishes the town’s maximum spending authority for the next fiscal year. The commission heard the presentation and asked questions but did not change the tentative budget at this meeting.
