Town manager recommends $156.4M FY24-25 budget emphasizing water capital and pavement preservation

The Oro Valley Town Manager's recommended budget for fiscal year 2024-25 totals roughly $156.4 million, with the general fund at approximately $53.1 million, a 4.1% decrease from the prior year, staff told the Town Council at a May 8 study session. Town Manager Wilkins said the plan reflects reduced state shared revenue and inflationary pressures that are expected to persist over the next two years.

The recommended capital improvement program (CIP) totals about $45.8 million for the coming year, with nearly 30% of the overall budget identified as capital spending. Management analyst Carl Shattuck told council the CIP focuses on water system improvements while also funding public facility repairs, recreational amenities and roadway management. He said the town carried just over $8.5 million in project costs into FY24-25 and included a $2.5 million contingency to give staff flexibility for emergent needs.

Why it matters: much of the proposed capital is directed to water infrastructure tied to the Northwest Recharge Recovery and Delivery System (NERDS), described in the presentation as a partnership with Metro Water and the Town of Marana to optimize Central Arizona Project water allocations. Shattuck said the water utility portion alone totals roughly $22.2 million, including $17.2 million for the partnered and independent portions of NERDS.

Council members pressed staff on how contingency and carryovers are documented in the packet. Shattuck and other staff acknowledged the packet reflected documents prepared before some council actions and said adjustments would appear in the tentative budget and in the appropriate funds. Finance staff noted that some grant or leftover ARPA monies could cover recent council-approved increases for specific projects.

The budget also includes projects and funding requests for parks and facilities: $2.4 million for Visoso Trails Nature Preserve revegetation and improvements, a continuing investment in the Town Court expansion, and fleet and facility upgrades such as a replacement fuel station. Shattuck said funding comes from a mix of impact fees, groundwater preservation fees, the capital fund, the highway fund and grants.

Next steps: council and staff will continue study sessions over the coming weeks, reconcile packet discrepancies and refine carryover estimates ahead of the tentative budget review and final adoption.