Proposed pay raises of up to 3% for eligible, full-time, nonunion employees of the town of Oro Valley are similar to those planned by other governments in greater Tucson, according to an internal staff report to the Oro Valley Town Council.
The Oro Valley raises, part of the fiscal year 2026-27 budget up for a final vote June 17, carry an estimated cost of $507,698, the report said. It was prepared by Town Manager Jeff Wilkins, Chief Financial Officer Dave Gephart, and Human Resources Director Andrew Votava.
Related, additional expenses tied to higher wages, among them pensions, Social Security, Medicare, and workers’ compensation payments, add another $118,094 annually, the report said.
The figures represent “a good estimate,” the report said, “but only an approximation of what the town’s actual personnel costs may be” for the fiscal year that begins July 1.
The study does not consider raises for Oro Valley Police Department personnel, who are covered within a memorandum of understanding negotiated between the town and two unions a year ago. In “most cases,” the report said, pay increases for police officers range from 4.25 to 5.75% in the new fiscal year.
For comparison, the town of Marana plans a 6% general increase for eligible employees, and a 5% increase in the minimums and maximums of its pay ranges, the report said.
Sahuarita is offering raises up to 3%, with unspecified cost-of-living and “market study adjustments” to be considered in January.
Pima County is providing raises of 3%, as well as 3% increases in both the minimum and maximum levels of its pay scale.
The city of Tucson is making a 1.5% general increase in late June, and raises near 2.6% for “selected classifications and individuals,” the report said.
For context, it continued, as of April the consumer price index had risen 3.8% on an annualized basis. And, on Jan. 1, the Social Security Administration authorized a 2.8% increase in payments to recipients, the report said.
Discussion of the impact of wage increases was part of the Town Council’s 7-0 adoption June 3 of a tentative $127.99 million budget, which is $2.1 million less than the town manager’s recommended spending plan.
The budget is down $23.5 million from the current year’s spending plan. Oro Valley expects to spend less next fiscal year because it is reducing its capital spending, retiring debt, reducing contingency reserves, and making a smaller discretionary payment toward police pensions, Gephart reported. General Fund spending is expected to be $57.88 million, up .7 of 1% from this year’s plan.
“Inflation is higher than that,” Mayor Joe Winfield told Gephart. “Great job absorbing those costs.” Given its structural balance, preservation of reserves, and reduction of debt, “there are a lot of good things that can be said about this budget,” the mayor concluded.
“This is a very lean budget, no doubt about it,” Gephart said.
About $1.5 million of the $2.05 million reduction from the town manager’s recommendation is being achieved through adjustments in expected capital spending, from $25.7 million to $24.2 million.
Total revenues anticipated for the year are $107.26 million. “Existing fund balances will be utilized for one-time expenditures, carryover requests, and capital projects,” according to a report submitted by Christopher Hutchison of the town’s finance department.
The spending plan is “structurally balanced, with ongoing revenues used to fund ongoing expenditures,” Hutchison writes.
No one spoke at a public hearing on the budget; nearly everyone in council chambers late on June 3 was a town employee, available to answer questions about their departments.
