Budget commission hears FY2026 update; town projects about $4.2 million shortfall as sales-tax lags

The Oro Valley Budget and Finance Commission on April 21 received a fiscal-year-to-date financial update through February that shows the town expects general fund revenues to finish roughly 7% below budget, a shortfall the presenter estimated at about $4.2 million.

The presenter, the town finance staff member who delivered the overview, said the shortfall is being driven largely by weaker local sales-tax receipts, especially construction sales tax, though recent activity at the Oro Valley Marketplace and the Tangerine Apartments construction have shown signs of improvement. "Overall revenues in the general fund are expected to come in about 7% below budget. That's about $4,200,000," the presenter said.

The report showed revenues through February at roughly 61% of the $61.2 million revenue budget while the town is 67% of the way through the fiscal year. On the expenditure side, total uses were up year over year mainly because of transfers out to the debt service and capital funds; the presenter noted that the Town Council revised the expenditure reserve policy from 30% to 25% and…