Oro Valley Robbing Peter To Pay Paul Because Of Golf Course Losses

The El Conquistador Purchase from HSL is proving to be the most Irresponsible Decision in the History of Oro Valley

On tonight’s Town Council agenda (June 20, 2017) is a discussion for possible action to amend the Fiscal Year 16/17 budget before it expires on June 30th.  The Finance Director is requesting that the Council allow for a reallocation of the Town's expected $2 million surplus of the General Fund.  What does this mean?  If the Council approves this reallocation, instead of adding the $2 million to the General Fund Contingency, they will add only $300,000.

Here’s the plan:

The Finance Director is requesting that the Council take $350,000 of the surplus and direct it to the Community and Recreation Center Fund (CRC).  Keep in mind how the Mayor and his minions have stated time and time again how there’s no need to worry because, "We have a fund to cover all the golf and community center expenses.”  That fund is the CRC which is funded with the half-cent sales tax increase.

The Council report states:

"Based on year-end budget projections presented in the April financial reports, it is estimated that the Community Center Fund will end the year with an estimated deficit of $285,000, including the $120,000 loan repayment transfer to the General Fund.  Contributing factors to this deficit are mainly water costs due to unseasonably warm and dry weather conditions this spring and golf member dues revenues trending under budget.  Staff is recommending a transfer of $350,000 from the estimated year-end General Fund surplus amount of nearly $2 million into this fund to close the deficit and provide a minimal positive fund balance to begin FY 2017/18.”

Robbing Peter to pay Paul

In other words, the half-cent sales tax is NOT covering the expenses as promised.  Therefore, they want to take $350,000 out of the General Fund in order to meet this year’s $120,000 loan repayment obligation back to the General Fund Contingency.

(In 2015, the Council borrowed $2.1 million from the General Fund Contingency to start the CRC Fund with a promise to repay it at $120,000 per year for 10 years.  Due to lack of funds, the Town Council already reneged on the first year’s payment in 2016.  Now, in 2017, still lacking the funds, they want to repay it by transferring money from one account to another.)

What has this foolish purchase cost the citizens of Oro Valley so far?

$1 million to purchase the Community Center and Golf Courses

$1.2 million taken from the General Fund Contingency to start the CRC Fund

$350,000 in additional General Fund revenues to keep the CRC Fund in a "minimal positive balance”

$506,710 in additional sales tax revenues in FY 14/15

$2,030,750 in additional sales tax revenues in FY 15/16

$1,811,207 in additional sales tax revenues so far in FY 16/17 (through April 30th)

TOTAL COST:  $6,898,667

It’s a Matter of Trust

Remember, these are the same irresponsible people who are now asking Oro Valley citizens to approve a Secondary Property Tax to fund ball fields.  With this record? 

Garret Lewis

Garret Lewis

Drive in with The Morning Ritual with Garret Lewis, weekday mornings on KNST AM 790. Listen at work on iHeartRadio.

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