Oro Valley’s Town Council has unanimously approved a $151 million budget for the 2025-26 fiscal year, along with raises for most town employees.

Chief Financial Officer David Gephart described the budget as a strategic allocation of resources and noted the council can amend it as needed throughout the year.

The budget reflects a $664,000 increase from the current year’s budget and focuses on capital improvements, staff, operations, maintenance and fund reserves.

Facing a projected slowdown in sales tax growth and a drop in state-shared revenues, town officials have adopted a flat operational approach, maintaining the same budget as the previous year with no major increases. 

As part of the effort to keep the budget flat, the town is making a slight staffing reduction, with a net loss of 1.43 full-time positions, bringing the total workforce to 423.55 employees.

Town officials touted in a news release their continued investment in public safety, water infrastructure upgrades, road maintenance, trail and park enhancements, support for tourism and more.

About $37.45 million is allocated to personnel, including 3% raises for eligible employees. This includes full-time workers with at least one year of service and a positive performance review, as well as part-time, non-seasonal staff.

Under a new union agreement, Oro Valley police officers will receive raises ranging from 8.8% to 13.65%, costing the town approximately $1.23 million, plus an additional $300,000 in pension contributions.

Another $54.6 million is earmarked for the town’s general fund, a nearly 3% increase from the previous year. Personnel costs represent 69% of the town’s general fund spending.

The budget also includes about $45.6 million in capital projects, with a focus on water systems, roads, parks and public safety facilities. It allocates more than $23 million to public safety, with another $14.95 million set aside for operations and maintenance.

Mayor Joe Winfield thanked the budget team for their work, highlighting their efforts to keep the budget balanced amid economic uncertainties.

“I know that this is a very extended process that began months ago,” he said during the June 18 meeting. “I appreciate the fact that staff met with each of us individually, that we had study sessions and that we have had opportunities to better understand the budget and contribute to this process.”

Town Manager Jeff Wilkins expressed concerns about future revenue, noting that the town’s five-year fiscal forecast shows some negativity in the fourth and fifth years.

Vice Mayor Melanie Barrett called the process a team effort, praising Greater Oro Valley Chamber of Commerce President and CEO Kristen Sharp for providing the council with historical data.

“I found it very helpful in understanding what had been going on with the chamber of commerce,” Barrett said.

With these approvals, town leaders say Oro Valley is positioned to move forward on its priorities for the coming year.

McKenna Manzo is a University of Arizona alum and Tucson Spotlight intern. Contact her at mckennamanzo@arizona.edu.

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