Carefree Truth
Issue #553, March 13, 2017
Mayor Les Peterson provided an abbreviated rundown of the Financial Planning workshop held the previous week.
Carefree is funded by local sales tax revenue (STR) and state shared revenue (SSR). The Town does not assess a local property tax. As Carefree approaches build-out, construction sales tax, which contributed significant STR for many years, is declining and will continue to decline. Many other communities are growing rapidly and will command greater shares of both STR and SSR. Because Carefree is landlocked, limiting future growth, Carefree's STR will continue to decline unless changes are made. The average cost for Town services is $5,800,000 per year.
The Town considered several strategic options and choose to pursue the option of minimizing expenses and building STR. Paradise Valley derives over 1/2 of their STR from the high end resorts located within their borders. These resorts and restaurants enhance residential neighborhoods. Restaurants can generate $30,000 to $100,000 and resorts can generate $500,000 to $1,000,000 per year in SRT. Carefree's goal is to strengthen existing tax generators and to target new ones. A critical mass of viable tax generating businesses is needed.
Most of Carefree's commercial area is located in the downtown. An additional 4 areas, comprising approximately 97 acres, 2% of Carefree's land mass, could be considered for commercial uses. These can be seen on the slide at 7 minutes and 53 seconds in the video below, which is an active link, as are all the links in Carefree Truth.
https://vimeo.com/207946265
The mayor opened the floor to comments from the audience. Former Councilman Arthur Gimson spoke of the many enhancements that were made to the downtown while he was a member of the Council, one of which was the addition of free WiFi, and he has been recommending banners promoting the free WiFi.
Since 2013, he has also been expressing the desire for a permanent solution to the shortfall created by the town-wide fire protection contract with Rural/Metro (R/M). The 1% sales tax increase does not cover the $425,000 annual shortfall. Mr. Gimson doesn't care what it's called, but he's long been lobbying for an assessment of $150 a year, with an annual 2% cost of living increase, per building to offset the shortfall.
Prior to the service being provided free of charge to residents and businesses throughout the town, the R/M subscription fee for his house was $500 a year, and was significantly more for expensive larger homes and for the larger commercial buildings. Due to the reduction in the ISO rating generated by the universal fire protection in Carefree, Mr. Gimson's homeowner's insurance rate dropped $200 per year, for a total savings of $700. The current subscription rate for a home the size of his is $1000 annually.
Between not paying the R/M subscription fee and benefiting from the reduced homeowners insurance rates, a $150 per structure fire fee to offset the shortfall would still produce very significant savings for all the residents and businesses and would fix the problem of the shortfall. He estimated that it would bring in $600,000 the first year, money that could be used for capital improvements within the town. He urged the Council to give voters the chance to approve such a fee.
Joe DeVito said he decided to speak after reading the Carefree Truth summary of the workshop. The Town needs a plan that "thinks totally outside of the box"; the concepts on the table are mostly "reruns". He suggested putting together a team to think of new ideas to improve the town.
Mr. DeVito pointed out that many people live here and spend money year round, and are a market that should be tapped. The Town disregards summer. Plan activities during those 4 months which are currently just given away. The Pumpkin Festival and the Christmas Festival are "outstanding, incredible", so many come. Take some risks. There is nothing to lose and Carefree might see far greater returns.
I was asked to read a letter from Catherine Mar, the owner of Venues Cafe. She thanked Councilman Gene Orrico for reaching out and requesting feedback. Venues is open 365 days a year, depending on money made during the season to get through the summer. She wanted to see the Town work on strategies to extend the season. In 2016, the sand sculpture was done in May, which brought traffic to the town, extending the season. She questioned why it is being done in March this year. She said the concert series is nice, but it does not make good business sense for Venues be a sponsor, providing on-site food, drinks and servers when her restaurant is right across the street. She would like to see the Town administration take more interest in the town's businesses. Festivals that close the street to car traffic are not supportive of the businesses when customers can't get to them.
Based on Mr. DeVito's and Ms. Mar's statements, I suggested marketing Carefree as running 7-10 degrees cooler than the more southern downtown commercial areas. Come to Carefree and get out of the heat.
https://vimeo.com/207973530
Lyn Hitchon
Prepared by Carefree Truth
Visit our website at www.carefreetruth2.com If you know anyone who would like to be added to the Carefree Truth email list, please have them contact me. Feel free to share Carefree Truth with others on your list.
Visit www.carefreeazbusinesses.com to see more info about businesses in Carefree. Please support our merchants.
Issue #553, March 13, 2017
Mayor Les Peterson provided an abbreviated rundown of the Financial Planning workshop held the previous week.
Carefree is funded by local sales tax revenue (STR) and state shared revenue (SSR). The Town does not assess a local property tax. As Carefree approaches build-out, construction sales tax, which contributed significant STR for many years, is declining and will continue to decline. Many other communities are growing rapidly and will command greater shares of both STR and SSR. Because Carefree is landlocked, limiting future growth, Carefree's STR will continue to decline unless changes are made. The average cost for Town services is $5,800,000 per year.
The Town considered several strategic options and choose to pursue the option of minimizing expenses and building STR. Paradise Valley derives over 1/2 of their STR from the high end resorts located within their borders. These resorts and restaurants enhance residential neighborhoods. Restaurants can generate $30,000 to $100,000 and resorts can generate $500,000 to $1,000,000 per year in SRT. Carefree's goal is to strengthen existing tax generators and to target new ones. A critical mass of viable tax generating businesses is needed.
Most of Carefree's commercial area is located in the downtown. An additional 4 areas, comprising approximately 97 acres, 2% of Carefree's land mass, could be considered for commercial uses. These can be seen on the slide at 7 minutes and 53 seconds in the video below, which is an active link, as are all the links in Carefree Truth.
https://vimeo.com/207946265
The mayor opened the floor to comments from the audience. Former Councilman Arthur Gimson spoke of the many enhancements that were made to the downtown while he was a member of the Council, one of which was the addition of free WiFi, and he has been recommending banners promoting the free WiFi.
Since 2013, he has also been expressing the desire for a permanent solution to the shortfall created by the town-wide fire protection contract with Rural/Metro (R/M). The 1% sales tax increase does not cover the $425,000 annual shortfall. Mr. Gimson doesn't care what it's called, but he's long been lobbying for an assessment of $150 a year, with an annual 2% cost of living increase, per building to offset the shortfall.
Prior to the service being provided free of charge to residents and businesses throughout the town, the R/M subscription fee for his house was $500 a year, and was significantly more for expensive larger homes and for the larger commercial buildings. Due to the reduction in the ISO rating generated by the universal fire protection in Carefree, Mr. Gimson's homeowner's insurance rate dropped $200 per year, for a total savings of $700. The current subscription rate for a home the size of his is $1000 annually.
Between not paying the R/M subscription fee and benefiting from the reduced homeowners insurance rates, a $150 per structure fire fee to offset the shortfall would still produce very significant savings for all the residents and businesses and would fix the problem of the shortfall. He estimated that it would bring in $600,000 the first year, money that could be used for capital improvements within the town. He urged the Council to give voters the chance to approve such a fee.
Joe DeVito said he decided to speak after reading the Carefree Truth summary of the workshop. The Town needs a plan that "thinks totally outside of the box"; the concepts on the table are mostly "reruns". He suggested putting together a team to think of new ideas to improve the town.
Mr. DeVito pointed out that many people live here and spend money year round, and are a market that should be tapped. The Town disregards summer. Plan activities during those 4 months which are currently just given away. The Pumpkin Festival and the Christmas Festival are "outstanding, incredible", so many come. Take some risks. There is nothing to lose and Carefree might see far greater returns.
I was asked to read a letter from Catherine Mar, the owner of Venues Cafe. She thanked Councilman Gene Orrico for reaching out and requesting feedback. Venues is open 365 days a year, depending on money made during the season to get through the summer. She wanted to see the Town work on strategies to extend the season. In 2016, the sand sculpture was done in May, which brought traffic to the town, extending the season. She questioned why it is being done in March this year. She said the concert series is nice, but it does not make good business sense for Venues be a sponsor, providing on-site food, drinks and servers when her restaurant is right across the street. She would like to see the Town administration take more interest in the town's businesses. Festivals that close the street to car traffic are not supportive of the businesses when customers can't get to them.
Based on Mr. DeVito's and Ms. Mar's statements, I suggested marketing Carefree as running 7-10 degrees cooler than the more southern downtown commercial areas. Come to Carefree and get out of the heat.
https://vimeo.com/207973530
Lyn Hitchon
Prepared by Carefree Truth
Visit our website at www.carefreetruth2.com If you know anyone who would like to be added to the Carefree Truth email list, please have them contact me. Feel free to share Carefree Truth with others on your list.
Visit www.carefreeazbusinesses.com to see more info about businesses in Carefree. Please support our merchants.