Oro Valley faces a projected $4.2-million budget deficit for fiscal 2010, according to a recent report.
Town officials blame the projected shortfall on a decline in the local building industry, reduced retail activity, a drop in state contributions and a generally sour national economy.
Some options for reducing the projected deficit included in the meeting packet include: elimination of out-of-state travel for town employees; end community funding program; reduce program and service levels at town library and parks and recreation programs; renewal and increases of utility tax; impose rental tax; and increase sales taxes.
The town council plans to discuss the budget issue as well as a mid-year budget review for the current fiscal year at a study session to be held Wednesday, Jan. 28.
Town finance officials have projected a $2.1-million budget shortfall for the current fiscal year, which ends June 30.
They cite similar reasons for the current budget deficit.
Oro valley confronts budget woes
WHAT: Oro Valley Town Council study session
WHERE: Wednesday, Jan. 28, 5:30 p.m.
WHERE: Town Hall, 11000 N. La Cañada Drive
DETAILS: At the session, council members will discuss ways to close a projected $4.2-million fiscal 2010 budget deficit
CAUSES: $1.2 million utility tax (scheduled to expire in April); $1 million reduction in highway user funds; $700,000 less in state shared revenue; $180,000 reduction from building permits fees