CONTACT: Phillip Cantrell
Public Information Officer
Desk: (520) 229-4772
Cell: (520) 549-9953
pcantrell@orovalleyaz.gov
ORO VALLEY, Ariz. (April 30, 2026) – The Town of Oro Valley Town Manager’s Recommended Budget for Fiscal Year (FY) 2026/27 is now available online. Residents can review the full budget document and learn how the Town plans to sustain high-quality services while responding to changing revenue conditions and rising costs.
The balanced, Town-wide budget appropriation totals $130 million, representing a $21 million (14.4%) decrease from the FY 2025/26 adopted budget. The FY 2026/27 Recommended Budget reflects a careful, conservative approach that prioritizes core services and essential infrastructure while aligning spending with a more cautious long-term outlook.
“This Recommended Budget reflects proactive fiscal management in response to evolving revenue and cost pressures,” said Town Manager Jeff Wilkins. “Our goal is to maintain stability by sustaining core services, advancing priority infrastructure, and taking deliberate steps to strengthen Oro Valley’s long-term financial position.”
Messaging highlights from the Town Manager’s Recommended Budget for FY 2026/27 include:
A tighter revenue outlook is shaping near-term choices. The sales tax forecast has been significantly tightened as collections track below expectations, with an estimated $11.8 million reduction over the next five years. Residential building permit activity has also slowed, reducing the near-term revenue benefit of new development.
State-shared revenues are under pressure. Incorporation of new towns in the state is expected to dilute the statewide population pool by about 1.6% annually, reducing Oro Valley’s share of state-shared revenues by an estimated $1.4 million over the next five years.
Cost inflation and infrastructure realities. Years of inflation in construction and road materials have strained fund balances, and Highway Fund revenues are not sufficient to cover road maintenance needs without General Fund support—reinforcing the importance of prioritizing critical investments.
Disciplined budget management actions to protect long-term stability. Key measures in the FY 2026/27 Recommended Budget include:
- No new full-time staff positions added
- Deferment or elimination of capital improvements totaling $11.6 million (including $8.7 million moved to a contingent list and $2.9 million deferred)
- Direction for General Fund departments to reduce O&M spending by 0.5% (an estimated $2 million impact over five years)
- A $1.5 million reduction in PSPRS excess contribution from the current year budget
- Town Council approval to reduce the General Fund reserve policy from 30% to 25%, freeing approximately $2.9 million in previously reserved funds
Budget process public meetings
All meetings will be held at Council Chambers (11000 N. La Cañada Drive). The public is invited to stay informed and participate.
- May 4 at 5 p.m. – Council Budget Study Session #1 (Capital Improvement Projects & Operating Budget)
- May 6 at 6 p.m. – Council Budget Study Session #2 (Operating Budget) *Budget Study Session will follow Council Regular Session
- May 19 at 4 p.m. – Budget and Finance Commission Meeting
- June 3 at 6 p.m. – Public Hearing and Tentative Budget Adoption
- June 17 at 6 p.m. – Public Hearing and Budget Adoption
Click here to view the full budget document. For more information, contact ask@orovalleyaz.gov.
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