The Oro Valley Town Council stands poised to approve a final budget for fiscal 2011.
Scheduled for a public hearing on Wednesday, June 16, the proposed budget tops $116 million. It represents a more than $5.3 million overall reduction from last year's adopted budget of $121.5 million.
The budget's general fund, the portion of the budget that funds most government operations, totals more than $35.8 million. Last year's general fund budget topped $40.5 million.
While last year's adopted budget was larger than the proposal for fiscal 2011, actual expenditures for the current fiscal year are expected to total $60.5 million.
Deferral of capital improvement projects accounts for a large portion of the difference in adopted and actual expenses. The council last year approved a capital project budget of more than $34.2 million. Oro Valley spent $4.8 million of that total. The proposed budget for fiscal 2011 has $41.9 million in capital project funds.
Some of the general fund savings were realized through a voluntary resignation program and hiring freeze, which have saved more than $800,000.
The town also anticipates other general fund savings by not funding outside agencies, as it has done in previous years. Groups such as the Southern Arizona Arts and Cultural Alliance, Project Graduation and the Community Food Bank have received funding from the town in the past. Anticipated savings from not funding the groups in fiscal 2011 could approach $300,000.
The proposed budget does not include raises or cost-of-living adjustments for town employees. The council could elect to include a cost-of-living adjustment in the final budget.
Town finance officials included a cost estimate for such increases at .5 percent, 1 percent and 1.5 percent levels. A half-percent cost of living increase for all town employees would cost $107,365. A bonus at the same level would cost $196,730.
A cost of living adjustment of 1 percent would cost $214,730 and a bonus of 1.5 percent would total $295,095.
The council meets Wednesday, June 16 at 6 p.m. at Oro Valley Town Hall, located at 11000 N. La Cañada Drive.