Transparency, Design Standards, and Timing Dominate Discussion of State-Mandated Changes to Routine Development Approval

Town working through challenges presented by HB 2447

Oro Valley Planning and Zoning staff is working to implement HB 2447. As previously reported, that bill requires that most non-discretionary development and design review applications—those that already meet Town code—be approved administratively rather than through public hearings before the Planning and Zoning Commission or Town Council. Staff and the Town face a number of challenges in implementing the provisions of the bill. They discussed these challenges with the Council during an October 1 study session.

January 1 date for compliance
The most immediate challenge is time. HB 2447 takes effect on January 1, 2026, leaving Oro Valley only a few months to bring its zoning code into compliance. Planning Manager Michael Spaeth told the Council that “this has a deadline of December 31 of this year, so it goes into effect January 1.”

Need to create precise, objective design standards
Spaeth said the Town must rewrite its design standards so that they are specific enough to support administrative approvals without the benefit of public hearings. “With those being administrative reviews now, it kind of ups the game in terms of wanting to make sure those design standards are more precise and really reflect what the Town is after at the end of the day,” he told the Council. The Town intends to create these design standards early next year as part of a Strategic Plan initiative.

Need to specify the appeal process
Staff must also sort out how appeals of administrative decisions will be handled. HB 2447 requires an appeal process, but existing code routes some appeals to the Town Council and others to the Board of Adjustment. Spaeth explained that “literally any decision the Planning and Zoning Administrator makes is an administrative decision under the eyes of code and state law,” and recommended consolidating all such appeals under the Board of Adjustment to avoid confusion and ensure consistency. Councilmember Robb questioned which types of appeals would shift away from Council, saying members should understand “what we’re giving up control of.” Spaeth replied that public art and certain architectural applications currently appealed to Council would now fall under the Board’s authority.

Need to examine the purpose of the town's "Economic Expansion Zone"
Another issue is what to do with the Town’s Economic Expansion Zone (EEZ). The EEZ covers parts of Innovation Park and other designated parcels that were created years ago to encourage business development by allowing faster, staff-level approval of qualifying projects without requiring Council review. Spaeth said that with HB 2447 in place, “that kind of makes a lot of Economic Expansion Zone moot… because now all entitled applications are eligible for administrative review.” Some EEZ features, such as allowing pre-grading to encourage investment, may remain, but most of the zone’s original purpose will disappear.

Must create procedures for expedited and “at-risk” reviews
The new law also requires towns to allow expedited processing and “at-risk” submittals. Spaeth explained that this means applicants can file grading and drainage plans earlier “with the aim of trying to expedite that review process” and that “all applications have to be afforded that opportunity” to request an expedited review and pay the related fee. Developing procedures and fee schedules for these options will take additional staff work.

Town tradition requires maintaining transparency and public confidence
Although HB 2447 eliminates the requirement for public hearings on projects that meet Town code, both staff and Council recognize that residents and Council members will still want visibility into those developments. Once the law takes effect, most site-plan and design approvals will occur outside public hearings, so the Town must find ways to keep the process transparent—such as posting applications or summaries online—and rely on clear, objective standards and accessible appeal procedures. The goal will be to preserve public trust even as the formal avenues for public and Council input are reduced.

Residents will have the opportunity to opine
Town staff will present the proposed zoning code amendments to the Planning and Zoning Commission in November and then to the Town Council in December for formal consideration. If approved, the changes will take effect before the January 1, 2026 deadline set by state law. As Oro Valley transitions to this new system, residents can expect staff to focus on refining design standards, clarifying the appeals process, and ensuring that development reviews—though now administrative—remain transparent and consistent with the Town’s character.

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Read our previous reports on HB 2447 to learn more,

Council To Move Quickly To Hire In-House Town Attorney

Council to review plan for hiring Town Attorney
Two weeks ago, the Oro Valley Town Council voted to have the Town Attorney report directly to them rather than to the Town Manager, even though the Town currently has no in-house attorney. Tomorrow night, the Council will take the next step by reviewing a proposed recruitment plan, job description, and timeline for hiring a Town Attorney. Human Resources Director Andy Votava will present the materials the Council requested when it approved the reporting change. His proposed approach is modeled after the process used when the Town hired a new magistrate in 2019.

Goal is to have position filled by February
The proposed timeline is designed to move quickly. The position will be posted on October 17, with applications due November 9. Council will review applications the following week, conduct virtual interviews in early December, and hold finalist interviews later that month. A conditional offer is planned for January 2026, with the goal of having the new Town Attorney in place by February.

There is a need to move quickly

The Town is moving quickly to fill this position following the retirements of Legal Services Director Tobin Sidles, who also served as prosecutor, and Chief Civil Deputy Joe Andrews, the Town’s civil attorney. With an active caseload and ongoing legal matters, filling these key vacancies is a priority.

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Dual roles need to be clarified 

The Town currently retains outside legal counsel for Council meetings and other legal services as needed. That arrangement remains in place as the Town begins recruiting for a full-time, in-house Town Attorney. The job description for the new position assigns the same advisory role—counsel to the Council—but the recruitment materials do not explain how the two positions will relate once the new attorney is hired. It is unclear whether the outside counsel will continue in some capacity, report to the new Town Attorney, or be replaced by the in-house counsel The town paid $51,950 to Mesch, Clark, Rothschild, in calendar 2024 The Council will need to clarify that relationship to prevent overlapping authority and ensure the Town has a single, consistent source of legal guidance.

A broad professional search
Recruitment will extend well beyond Oro Valley. The position will be advertised through the State Bar of Arizona, the Arizona League of Cities and Towns, the law schools at the University of Arizona and Arizona State University, the Arizona Women Lawyers Association, and several national outlets including ICMA, SHRM, LinkedIn, and Indeed. This broad outreach is intended to attract a strong, diverse candidate pool.

The town attorney needs to be both an attorney and a manager
As the Town’s chief legal officer, the Town Attorney will also serve as Legal Services Director. In that role, the attorney will manage both the civil and criminal (prosecution) divisions of the Legal Services Department and oversee all legal actions involving the Town. The position therefore requires both legal and management expertise. According to the job description, candidates must hold a Juris Doctorate from an accredited law school, a license to practice law in Arizona, at least seven years of legal experience including municipal or public sector work, and five years of supervisory experience.

Position is already budgeted
According to staff, the Town Attorney position and recruitment costs are already covered under the current fiscal year’s budget. No additional funding is required.

What’s next
If the Council approves the recruitment plan on Wednesday, advertising will begin immediately. Applications will remain open through early November, and interviews will take place in December. This meeting marks the start of the Council’s first direct hiring of a Town Attorney under its new structure.

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Take Ten: Tell Us How You Want To Protect Oro Valley's Financial Future

Let’s talk town finances
Oro Valley is well known for its high-quality services, safety, and roads. The future of Town finances is a focal point of interest shared by residents. In fact, it has generated more discussion in this 10-year plan than in previous ones.

What did residents say about Town finances?
Through a series of surveys, meetings, and engaging online discussions, residents prioritized the following:

• Maintaining financial stability
• Funding core services which include safety, roads, water, parks, and community facilities

How are resident voices reflected in the community’s next 10-year action plan?

The draft plan reflects the voices of residents, establishing goals, policies, and actions to guide Oro Valley into the future.

Here are just some ways the residents’ Plan guides the Town to maintain financial stability:

• Manage and administer the Town’s budget to meet the community’s needs
• Anticipate increasing service and infrastructure needs and costs
• Diversify and increase revenue sources
• Ensure adequate funding is consistently available for core services, which are safety, streets, water, parks, and community facilities
• Engage the community about alternative and ongoing revenue sources
• Increase transparency and awareness of revenue sources and expenditures

Did you know?
Resident guidance to engage the community about revenue sources has already started! The Town is considering updates to various fees and taxes on October 15, 2025. For more information, please click HERE.

Your voice is needed!
It’s time to ensure the draft plan captures the true values and priorities of our residents. Maintaining financial stability is just one part of this important 10-year plan.

We invite you to read through the details and share your thoughts about the Town finance goals, policies, and actions by October 31, 2025. Visit OVPathForward.com/town-finances today.

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Bits and Pieces

Town begins fall pavement preservation work

The Town of Oro Valley has begun its Fall 2025 Pavement Preservation Program, which runs through November. The Public Works Department will apply maintenance treatments on several major streets and neighborhood roads to extend pavement life and maintain Oro Valley’s high-quality roadways. Work hours are generally 7 a.m. to 5 p.m., and schedules may shift depending on weather conditions. Drivers are asked to observe posted signs and traffic controls, while residents in affected neighborhoods will receive direct notifications 48 hours before work begins. Residents can learn more about the schedule, view maps, and get updates on the Town’s Pavement Preservation webpage or call the Public Works Department at 520-229-4850 for questions about specific locations. (Source: Town of Oro Valley Media Release)

Marketplace redevelopment moves forward

Construction is officially underway at the Oro Valley Marketplace, marking the start of a multi-year transformation project led by HSL Properties and Borderlands Construction. Phase 1 will bring 320 new apartments, improved pedestrian routes, safer intersections, and a new public park between Walmart and Tuk Tuk Thai. Work begins this month and will continue through 2027, with Marketplace access temporarily rerouted during construction but restored for the Thanksgiving and holiday shopping seasons.

 The project, approved by the Town Council in 2023, aims to make the Marketplace a more vibrant destination for residents and visitors while boosting Oro Valley’s long-term economic vitality. Learn more here.

Flag ceremony honors Oro Valley Gold Star mom

Earlier this week, Rockin’ 4 Heroes hosted a private flag ceremony at Oro Valley Town Hall to honor LuAnn Galvin, a local Gold Star mother whose son, U.S. Army Chief Warrant Officer Taylor Galvin, died in 2018 while serving in Afghanistan. During the ceremony, Rockin’ 4 Heroes presented Galvin with an Honor and Remember flag in recognition of her son’s service and sacrifice. Mayor Joe Winfield, Councilmember Mary Murphy and Police Chief Kara Riley attended the ceremony. (See KVOA report here)

Oro Valley Police Department receives two state grants totaling $83,619

The Oro Valley Police Department received two grants from the Governor’s Office of Highway Safety totaling $83,619. One grant of $44,249 will fund overtime, equipment, and supplies to enhance DUI and impaired-driving enforcement. The second grant of $39,370 will support the department’s Special Traffic Enforcement Program, including overtime and new lidar speed-enforcement units. Both grants take effect now. The two agreements are scheduled for Town Council approval next Wednesday. 

Mark your calendar for Bark in the Park on October 18

Dog lovers won’t want to miss Bark in the Park, a free community event hosted by the Town of Oro Valley Parks and Recreation Department on Saturday, October 18, from 5 to 8 p.m. at Steam Pump Ranch. The evening will feature a dog costume contest, adoptable pets from local shelters, food trucks, and family-friendly activities. Attendees can enjoy crafts, photo booths, and demonstrations while supporting the University of Arizona College of Veterinary Medicine and Purina’s Purple Leash Project, which helps raise awareness for pet owners seeking safe shelter from domestic violence. For details, visit the Town’s event page or contact carlet@orovalleyaz.gov (Source: Town of Oro Valley Media Release)

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Council Weights New Taxes and Increased Fees As Residents and Businesses Voice Mixed Reactions

Staff outlines proposal to broaden Town revenues
At its October 1 study session, the Oro Valley Town Council heard staff’s proposal to raise additional revenue through a mix of new taxes and fee adjustments. The proposed changes include a use tax, a telecommunications tax, and a commercial rental tax, along with updated stormwater and parks-and-recreation fees. Town of Oro Valley Finance Director David Gephart said the goal is to “maintain service levels” while giving the Town a more stable and diversified financial base.

Gephart says diversification is essential for long-term stability
Gephart told the Council that Oro Valley’s reliance on sales tax revenue makes its finances more vulnerable to downturns in retail spending. “When one sector slows, another can help balance it out,” he said. He explained that adding other revenue streams would reduce that risk and “help smooth the ups and downs” in future budgets. He noted that many Arizona cities already rely on a broader mix of revenues to maintain consistent service levels across economic cycles.

Diversifying revenue sources reduces risk
Gephart also described diversification as a form of risk management, consistent with guidance from the League of Arizona Cities and Towns. The League advises that municipalities dependent on a single tax source — such as retail sales — are more exposed to market fluctuations and changes in consumer behavior. “The League encourages all cities to strengthen financial resilience by broadening their tax base,” Gephart said, adding that the proposed mix of new taxes would bring Oro Valley’s structure more in line with peer communities.

Council weighs timing and public trust issues
In addition to the issues we presented yesterday regarding trust in the Town staff’s future financial projections and the concern that the Town must demonstrate it is operating at the most efficient level, Councilmembers also voiced concern about when to implement new taxes and fees. Several said that timing could be as important as the amounts proposed. 

• The use tax, for example, might make sense for long-term fairness — ensuring that online and out-of-town purchases contribute equally — but some questioned whether residents were ready to accept a new tax of any kind. 
• The telecommunications tax drew similar hesitation, with members noting that most households already face rising costs for digital and streaming services. 
• The commercial rental tax prompted the greatest concern because of its potential to affect local business recovery, especially as retail occupancy continues to rebuild at the Marketplace and elsewhere. 
• Fee increases were viewed somewhat differently. Several Councilmembers said they could support updates to stormwater and parks-and-recreation fees since those directly fund the services they affect, but only after a clear explanation to residents of what improvements those fees would support. 

Overall, the Council’s message was that both the timing and the justification for each proposal must be transparent before any vote occurs.

Residents and business owners express mixed reactions
Four speakers addressed the Council during public comment. Resident Bill Carson said he understood the need for reliable revenue but urged staff to focus first on controlling costs. “We all have to tighten our belts — so should the Town,” he said. Local business owner Sarah Lopez, who operates at Oro Valley Marketplace, cautioned that a commercial rental tax could slow efforts to fill vacant retail spaces. “We’re still trying to bring tenants back,” she said. “Adding another tax won’t help that.”

Support for service-based fees
Others supported adjustments tied directly to Town services. Resident David Hoffman said updating stormwater fees “makes sense because those systems protect every home during monsoon season.” Recreation user Lisa Torres agreed, saying, “If higher fees mean better fields and safer facilities, I think most users would understand that.” Both speakers thanked the Council for discussing the proposals in public before making any decisions.

Next steps
Staff will return to the Council on October 15 with refined estimates and recommendations. The proposed taxes and fee changes would require formal adoption by vote, and residents will have another opportunity to comment before any implementation.

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Town Staff Sees Financial Gloom....Council Sees Opportunity

Staff forecast shows budget gap by 2028 – but Council identifies unaccounted for revenue opportunities
At its October 1 study session on proposed fee increases and new taxes, the Oro Valley Town Council spent most of the evening discussing staff’s revised five-year financial forecast. The forecast projected that Town expenses would begin to outpace revenues in fiscal years 2028 or 2029, with reserves falling thereafter. Finance Director David Gephart said the revised forecast reflected recent actions such as the police MOU, the change in reserve policy, and the transfer of the half-cent sales tax from the Community Center Fund. “Despite those changes,” he told the Council, “operating expenditures are still outpacing income.” 

Staff: Drastic cuts in service levels will be needed if new taxes and increased fees are not implemented
Staff said that “drastic measures” or reductions in services could be required if new taxes and increased fees are not implemented. They explained that the forecast already includes identified cost-saving measures and reflects options now under consideration to close the projected revenue gap.

Council notes that this warning is far too harsh
Council members did not dispute the seriousness of the long-term forecast but questioned the tone of staff’s warning. Several said that presenting only a worst-case scenario could create unnecessary concern in the community. Vice Mayor Melanie Barrett said she preferred a more balanced view that also accounts for likely new revenues and economic activity. Councilmember Mary Murphy agreed, saying the Council needed “a realistic picture, not an alarm.” Others emphasized that residents expect transparency and perspective, not projections that appear designed to justify higher taxes.

Because the forecast does not consider future revenue growth scenarios
Under questioning, Gephart acknowledged that the forecast did not include revenues expected from several apartment projects now under construction, such as at the Oro Valley Marketplace, or from new retail and restaurant activity that will accompany them. It also omitted the Town’s efforts to reduce “retail leakage” — purchases by residents in neighboring communities — and initiatives to attract additional tourism and visitor spending. In addition, the forecast did not reflect the potential financial impact of future annexations the Town plans to pursue. Barrett said the omission made the forecast incomplete: “New housing and retail are coming online. Those will generate revenue that isn’t reflected here.” Murphy added that the forecast “needs to tell the whole story, not just the worst case.”

Council urges staff to include growth oppotunities in future forecasts
Several Councilmembers urged staff to expand future financial forecasts to reflect potential new revenues from development, tourism, and retail-retention efforts. They said they want to see what would happen if growth and revenue efforts perform as expected, noting that the conservative model alone doesn’t show residents the opportunities ahead. Including broader “what-if” scenarios, they said, would provide a more realistic picture of the Town’s fiscal future and help residents understand both the challenges and the prospects for continued growth.

Council presses for proof of efficient operations before raising taxes or fees
Several Councilmembers, including Barrett and Murphy, said they could not support recommending new taxes or higher fees until they were confident — and could assure residents — that the Town was operating as efficiently and effectively as possible. “We have to be sure we’ve done everything we can internally before asking residents to pay more,” Murphy said.

Staff believes that they have done that with cost-saving measures were already in place, such as limiting travel, delaying hires, and tightening project reviews. “We’ve been tightening the belt for several years,” Gephart said, pointing to about $3.7 million in savings since FY 2023. He added that public safety costs make up the largest share of the Town’s operating budget and “are not something we can touch” when looking for reductions.

Staff did not provide assumptions used in forecast...makes it impossible for anyone to analyze it

Staff did not present the assumptions that were used to build the five-year forecast. Without knowing these underlying factors — such as projected inflation, staffing levels, revenue growth rates, or economic conditions — it is difficult for the Council to analyze or validate the results. Forecasts are only as reliable as their assumptions, and understanding those inputs is essential to determine whether the model is too conservative or too optimistic. Without that transparency, neither the Council nor the public can fully assess whether the Town’s financial outlook accurately reflects likely future conditions.

Forecast not reviewed by Budget and Finance Commission

The revised five-year forecast was developed internally by Town staff and had not been reviewed by the Budget and Finance Commission before it was presented to the Council. While the Commission had previously discussed the proposed fees and tax options, it did not have an opportunity to vet the updated forecast or the assumptions behind it. Independent review by the Commission would have allowed for additional public transparency and a more thorough evaluation of the forecast’s credibility.

Next steps
Staff will continue to refine the analysis and present additional information when the Council takes up the proposed taxes and fees later this month. Those actions — including possible adoption of new use, telecommunications, and commercial-rental taxes and approval of updated parks-and-recreation and stormwater fees — are scheduled for the Council’s October 15 meeting.

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Get Involved: Volunteer For An Oro Valley Board or Commission

Oro Valley seeks residents to serve on boards and commissions
The Town of Oro Valley is accepting applications from residents interested in serving on one of the Town’s volunteer boards or commissions. These groups give residents a direct way to participate in Town government by advising the Council and influencing decisions that affect the community.

Who can apply
To serve, applicants must be residents of Oro Valley, able to attend meetings as scheduled, and complete the Town’s Community Academy during their term. Applications and more information are available on the Town’s website under “Apply for a Board.” These vacancies will remain open until filled.

Open positions
Current openings include one seat on the Board of Adjustment, which reviews requests related to zoning. The Budget and Finance Commission has two openings for residents with backgrounds in finance, accounting, or business administration. There is also one opening on the Historic Preservation Commission, which works to protect and promote Oro Valley’s historic and cultural resources.

Additional vacancies
The Parks and Recreation Advisory Board has one vacancy for a resident interested in parks, trails, and open space planning. The Planning and Zoning Commission also has one vacancy, offering residents a voice in land use, zoning code changes, and General Plan matters. In addition, there are multiple openings on the Stormwater Utility Commission and the Water Utility Commission, which deal with key infrastructure, water, and environmental issues.

Regional representation
Finally, Oro Valley is also seeking a representative to serve on the Pima Association of Governments Environmental Planning Advisory Committee. This regional body reviews and recommends environmental policies and studies that affect communities across Southern Arizona. Serving in this role allows Oro Valley to help shape important environmental planning decisions.

Why it matters to you
Residents who want to contribute to the Town’s future should consider applying. These boards and commissions are where many important conversations begin, and serving on them is a direct way to make a difference in Oro Valley.

Apply here

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(Source: Town of Oro Valley Media Release)