Oro Valley's Town Council has taken a significant step towards financial planning by approving a tentative budget of $151.5 million for the fiscal year 2025-2026 during their recent meeting. This budget reflects a strategic allocation of resources aimed at enhancing community services and infrastructure.

Key highlights from the budget discussion included updates to the beginning fund balance for the benefit self-insurance fund and adjustments to the water utility fund, which now presents a healthier financial outlook. The budget breakdown shows that personnel and operations and maintenance (O&M) expenses account for approximately 57% of the overall budget, with capital expenditures making up about 29%. Notably, the water utility sector represents 32% of the budget, largely due to the ongoing NERDS project, which is a significant investment in the town's water infrastructure.

The council also discussed the general fund, where personnel and O&M expenses dominate, comprising 96% of the total. Public safety is prioritized, receiving 43% of the general fund allocation, followed by administrative costs at 36%. The council emphasized the importance of maintaining a balanced budget, with a focus on funding essential services while planning for future growth.

The Capital Improvement Plan (CIP) for the upcoming year is estimated at $44.5 million, with the NERDS project accounting for over half of this amount. The council plans to publish the budget details in the coming weeks, with final adoption scheduled for the next council meeting.

Councilmember Rob raised concerns regarding future projections and the recent additions to the police budget, highlighting the need for careful consideration of expenditures moving forward. The council's commitment to transparency and community engagement will be crucial as they finalize the budget and address any emerging needs.

As Oro Valley prepares for the next fiscal year, the approved tentative budget sets a foundation for continued investment in public safety, infrastructure, and community services, ensuring that the town remains responsive to the needs of its residents.