Oro Valley Reapproves 2.5% Use Tax After State Agency Error Voided January Vote

ORO VALLEY — The Town Council voted 4-3 Wednesday to reapprove a 2.5% local use tax set to take effect July 1, after the Arizona Department of Revenue failed to update the town's model city tax code within the statutory 10-day window following the council's original January 14 approval, rendering that vote void.

Chief Financial Officer David Gephart told the council the Department of Revenue has since agreed to implement the tax on July 1 following reapproval, and that staff proposed no changes from the January ordinance. Gephart cited a structural funding gap as the driving force behind the measure, noting that pavement preservation costs have risen 316% over several years while gas tax revenues have grown only 20% during the same period — a difference of approximately $1.7 million. He added that overall sales tax collections have declined at levels "not seen in the past fifteen-plus years," further straining the highway fund.

Council Member Mary Murphy cast one of the three dissenting votes, the same position she held in January. "We have not had an operational efficiency audit yet," Murphy said, "and until which time we do that, I feel that our residents and our businesses deserve us to do that before I could ever vote for a new tax." Mayor Joseph C. Winfield, who voted in favor, said the use tax "promotes fairness, supports local business, and provides modest additional revenue" to maintain services residents value. Council Member Dr. Harry "Mo" Greene II also voted yes, saying he had asked in a prior discussion about taxing electric vehicles and "subsequently learned that they are not totally paying their share at this point, but there's no plans that I know of to remediate that." The measure passed under Ordinance No. O-26-10.

Council Unanimously Adopts $127.99 Million Final Budget for FY 2026-27

The council voted 7-0 to adopt the town's final budget for fiscal year 2026-27, setting a total expenditure limit of $127,990,000 — unchanged from the tentative budget approved June 3. The action was taken in special session, as required by state law.

Gephart outlined three adjustments from the tentative budget: a net decrease of approximately $69,000 in general fund revenue based on a final state-shared revenue allocation report from the Arizona League of Cities and Towns; a reduction of approximately $307,000 in Highway Fund gas tax revenues from the same report; and a $45,000 reduction in the community center fund contingency to accommodate a golf course grinder, to be offset by golf revenues. Gephart said none of the changes affected the overall spending cap. The total projected ending fund balance fell from approximately $48,270,000 in the tentative budget to approximately $47,850,000 in the final version.

The approved budget includes a general pay plan providing eligible non-sworn employees up to a 3% increase, with the bottom and top of pay ranges each moving up 1.5%. Vice Mayor Melanie Barrett requested that future budget presentations include a summary document highlighting specific pay plan changes, saying it would help council members review the plan without parsing the entire document. Human Resources Director Andy Batava confirmed the plan preserves the council's authority to approve new classifications while delegating title changes and job-banding adjustments to the town manager.

Floodplain Ordinance Updated to Meet State and FEMA Standards

The council voted 7-0 to adopt Ordinance No. O-26-11, amending Town Code Chapter 17 governing floodplain and erosion hazard management to address audit findings from an Arizona Department of Water Resources community assistance visit conducted in January 2023.

Stormwater Utility Division Manager Dennis Roberts said the ADWR found the town's floodplain management program "fundamentally strong" but identified areas where the ordinance needed updating to match the Arizona Floodplain Management Model Ordinance and current National Flood Insurance Program requirements. Roberts emphasized that the revisions do not create new regulatory burdens, fees, or permitting requirements, and make no changes to FEMA flood map designations or homeowner flood insurance requirements. The Stormwater Utility Commission voted 4-0 in May to recommend forwarding the amendments to council.

Roberts said adoption ensures compliance with Arizona Revised Statutes Sections 48-3609 and 48-3610, maintains the town's standing in the National Flood Insurance Program, and protects eligibility for federal flood insurance, FEMA post-disaster assistance, and hazard mitigation grants. Following adoption, staff will transmit the updated ordinance to ADWR and FEMA to complete the compliance cycle. Council Member Greene praised Roberts following the vote, saying he was "totally impressed" by Roberts' knowledge of the issues after spending a half-day reviewing ongoing stormwater projects.

Also discussed:

Council Member Joyce Jones-Ivey announced that Project Graduation for the Class of 2027 is seeking donations via Amazon wish list during Prime Days, June 23–26, and through projectgraduation.com/donate; the organization is a 501(c)(3).
Council Member Greene reminded residents that the town is distributing free sandbags — up to 10 per vehicle — at Naranja Park beginning June 15, and directed residents to the monsoon preparedness guide on the town's website.
Town Manager Jeff Wilkins reported recent social media posts reached more than 14,000 unique viewers and 22,000 total views, with a community and recreation center parking lot post drawing more than 9,600 views alone.
Wilkins announced the town's Fourth of July celebration will begin at 6 p.m. this year — earlier than prior years — with an expanded program marking the nation's 250th anniversary and additional fireworks.
Multiple members of the public spoke against the town's use of Flock camera systems, citing surveillance data obtained through public records requests and historical parallels to misuse of government-collected data.
Town Clerk Mike Standish announced the next Town Council regular session is scheduled for August 12 at 6 p.m., and that the July 13 Water Utility Commission meeting has been canceled.