Oro Valley presents $127.99 million tentative FY2027 budget; council to adopt final budget tomorrow

Town staff presented the tentative fiscal year 2027 budget to the Budget and Finance Commission on June 16, describing a $127,990,000 townwide spending plan and a CIP of $24.2 million, and told commissioners final adoption is scheduled before the Town Council the next day.

Mr. Gephardt said the tentative total is about $2.1 million below the manager's recommended budget and about $23.5 million lower than the current adopted budget. "The tentative budget for next year, totals $127,990,000," he told the commission, adding that the town's calculated spending limit for next year is about $179.8 million and the tentative budget is well under that limit.

Staff highlighted that personnel and operations and maintenance make up roughly 69% of total spending, with water at about 24% of townwide function spending and administrative services (which include debt service and the town's benefit self‑insurance trust) appearing larger because they consolidate several funds. The capital improvement program totals $24.2 million, and staff said the water‑utility NERDS project accounts for about $6.0 million of that figure (roughly 25% of CIP).

In response to commissioner questions, staff clarified that incoming council members may amend budget line items after they take office but cannot increase the total spending limit; staff also explained contingency is built into multiple funds and that congressionally directed federal funds of about $7.0 million will flow through the state, leaving only the town's local match to be reflected in the town budget.

No formal action on the tentative budget was taken by the commission at the meeting; the presenter said the council would consider final adoption at its next scheduled meeting.