Council to pay down debt with reserves - The Explorer: Pima Pinal

Council to pay down debt with reserves

Move would save $1M in interest over 10 years

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Posted: Tuesday, March 9, 2010 12:00 am | Updated: 8:08 am, Thu Mar 24, 2011.

The Oro Valley Town Council voted unanimously last week to approve spending $6.5 million in reserve funds to pay off debt.

The money will be spent to pay debts incurred when the town purchased land at the Naranja Town Site, built the Oro Valley Public Library, and built and purchased freshwater infrastructure systems.

According to town financial estimates, paying off the debt now would net the town savings in the long run.

Right now, town reserve funds earn less than 1 percent annual interest, while bond indebtedness incurs interest at 4 to 5 percent annually. Paying off the debt early would save almost $1 million in interest over the  next nine years.

The town has more than $13 million in general fund reserves and more than $48 million in combined reserves, including water utility and capital project funds.

In other business, the council unanimously approved a change to town code regarding the discharge of air guns. The amended code pertains to such weapons as plastic pellets, paintball and potato guns.

Some concern was raised that the changes were getting too specific as to require future additions when new weapons are developed that fire other media.

Town Attorney Tobin Rosen assured council members that the revised code was broad enough to include any sort of implement that could be fired from an air gun.

Rosen said the guns could fire rutabagas or any other vegetable. Their use, along with other air guns, would still be forbidden in the town at large.

Firing the weapons on private property would still be permitted.

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