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More of Oro Valley's 6 percent bed tax will pay for the Naranja Town Site, including educating the public about the project, Oro Valley's Town Council decided last week.

The town's tax on temporary lodgings is expected to bring in more than $1.3 million during the upcoming fiscal year. Nearly $500,000 will go toward the Naranja Town Site, a proposed 213-acre recreation area.

The council approved splitting the tax revenue three ways for the next three years.

Starting July 1, one-third of it will go toward the park — a one-half percent increase.

"Even though we might not spend the money that fiscal year, we should have it earmarked so it builds up," said Councilwoman Paula Abbott.

Another one-third will go to Oro Valley's Economic Development marketing budget.

The town will return the remaining one-third to the Hilton El Conquistador Golf and Tennis Resort because of an existing economic development agreement between Oro Valley and the resort.

In another vote, the council approved $40,000 to $50,000 of bed-tax revenue to pay for a Naranja Town Site community education program.

The council gave town staffers permission to seek a company to help run the program. In July, a contract will come back to the council for approval.

The council voted against surveying Oro Valley residents for a fresh look at their opinions on the park. One had already been done more than a year ago.

But there's still the question of how to pay for building and, once it's open, operating the Naranja Town Site.

To cover construction costs, the town could issue bonds and levy a secondary property tax. That would require voters' approval in a bond election.

The Town Council could ultimately decide to use annual bed-tax revenue to pay for operations and maintenance.

Oro Valley's agreement with the El Conquistador will expire in 2010.