Oro Valley stormwater utility presents $2.08 million budget, plans August rate review

Dennis Roberts, Oro Valley's stormwater utility division manager, told the commission June 18 that the proposed fiscal year 2026–27 budget forecasts $2,084,742 in revenue and $2,374,474 in expenditures and begins the year with $1,643,746 in fund balance.

Roberts said staff expects an estimated ending fund balance of about $1,350,000 after a planned drawdown to cover capital project timing, and that the utility remains financially stable despite expenditures exceeding revenue this year. "The drawdown is planned and primarily tied to the timing of capital project delivery," Roberts said.

The budget relies primarily on charges for service ($1,750,000), with $280,942 in federal grants and $45,000 in interest earnings; Roberts emphasized the continuing role of grants in offsetting capital costs and noted a planned August rate review to evaluate whether current rates support long-range needs.

Roberts outlined a FY26–27 capital program totaling $936,016, including a Catalina Ridge access ramp and channel improvement project ($448,000), Sierra Wash at Glover Road erosion mitigation ($312,000, permits secured) and work on Naniini Wash at North Paseo Del Norte ($125,000). He said bidding for those projects is anticipated in late July or early August with construction slated for after the monsoon season.

Roberts said the town is updating a 10‑year financial plan through FY30–31 and expects significant capital needs beginning in FY28–29 — notably the Highland Wash project — and that the August review will present scenario modeling, reserve levels, and options for commissioners to consider.

The commission did not take action on rates at the meeting; Roberts said staff will return in August with detailed analysis and recommendations for possible incremental rate adjustments that comply with town code and long-term sustainability.