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      • CAREFREE: Raftelis Rebuttal Report - 7/24/20
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  • LETTERS FROM READERS #2
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  • TOWN MEETING AGENDA
    • Workshop to discuss Fiscal Year 2023-2024 budget 5/25/23
    • Workshop to discuss Fiscal Year 2023-2024 budget
    • Carefree Meeting Agenda: 4/4/23
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    • Carefree Meeting Agenda: Council visioning workshop 2/3/23
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    • Carefree Meeting Agenda: 10/25/22 >
      • 10/4/22 Town Meeting Pics and Slides
      • Carefree Meeting Agenda: Council visioning workshop
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    • 2/9/21 CAREFREE UTILITIES COMMUNITY FACILITIES DISTRICT
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    • Carefree Meeting Agenda: 12/1/20
    • 11/18/20 Swearing In and Strategic Meeting
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    • 10/13/20 STRATEGIC PLANNING WORKSHOP
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  • Carefree Meeting Agenda: 9/5/23
                             Carefree Truth
                    Issue #562, April 24, 2017

 
 
 
Gary Neiss presented the budget overview.  The main contributors to the Estimated Revenue are State Shared Revenue (SSR) at 21% and Local Fees at 79%.  Municipal Sales Tax (MST) provides 57% of the local fees.  Building fees, utility fees, court fees, rents, and special event fees provide 22%.  Carefree does not assess a municipal property tax.
 
 
 
Positive indictors show new home starts will remain strong thanks to the Keystone "Eastwood" development and a number of new custom homes.  The large anchor businesses are performing well. Additional new restaurants and a re-branding of the Carefree Resort are anticipated in the next fiscal year (FY).  The Town is conservatively looking at a 2% reduction over the projected year end estimates.  The past 8 years have ranged from $2.7 million-$3.4 million.  Based on current collections and the above indictators, $3.150 is estimated for the next FY.
 
 
 
The figures for cost recovery/user fees (22%) are utilities fees @ $335,000, building fees @ $350,000, court fees @ $300,000, rents @ $85,000, special events @ $125,000, and agreements @$41,000, for an approximate total of $1.24 million.
 
 
 
Although State Shared Revenue (SSR) has recovered to the pre-recession level, there are consistent proposals to reduce shared revenues.  The League of Cities and Towns protects local control and shared revenues.  However, Carefree will continue to see a proportional reduction resulting from other rapidly growing communities grabbing a larger share of the pot.  SSR estimates are State sales tax @ $343,000 (30%), State income tax @ $453,000 (39%), VLT @ $153,000 (12%), and HURF @ $235,000 (19%) for an approximate total of $1.2 million.  
 
 
 
Proposed savings include approximately $35,000 from R/M reimbursement agreements, $72,000 from
re-calibration of the MCSO traffic beat to focus on peak travel times (October-April) and $13,000 to use the Posse as needed rather than paying a flat fee. Audits are now done by ADOR as needed, so proposed savings include nearly $13,000 saved by not contracting directly with an auditor. The professional membership in GPEC will be dropped because it does not align with the Town's immediate needs, saving $1,600.
 
 
Projected expenses are Operations @ $1.8 million, Salaries and benefits for 16 full time employees (FTE) @ $1.49 million, Fire protection @ $1.45 million, and Capital projects @ $1 million.
 
 
 
Operations include Law Enforcement @ $480,000, Marketing @ $425,000, Public Works @ $330,000, Risk Management @ $135,000, Administration @ $110,000, Court @ $90,000, Clerk @ $65,000, Attorney @ $60,000, Engineering @ $30,000, Planning and Zoning Department @ $25,000, Building Safety Department @ $25,000 and Council (educational conferences, etc) @ $20,000.
 
 
 
"Employees are any organization's greatest asset-they're your competitive advantage.  You want to attract and retain the best; provide them with encouragement, stimulus, and make them feel that they are an integral part of the organization's mission."  Salaries and benefits for 16 FTE are budgeted for $1.496 million.  In comparison, Cave Creek employs 25 FTE, excluding their Utilities Department, for a total of $2.438 million.
 
 
 
$250,000 is available for street maintenance from HURF and $140,000 is available from the S.W. Gas capital fund. Proposed Capital Projects include $250,000 for a culvert improvement and $350,000 for tenant improvements to the new Council Chambers at 33 Easy Street.
 
 
 
The line item budget is being prepared and the numbers refined as feedback from the departments and the Council is gathered.  The next budget workshop will be held on April 25th.  The bottom line will be adopted at the May 2nd Council meeting and the budget will be heard and adopted at the June 6th Council meeting.  The new Fiscal Year begins on July 1st.
 
Part 1 of 6: https://vimeo.com/214139406
Part 2 of 6: https://vimeo.com/214216509
Part 3 of 6: https://vimeo.com/214263447
 
 
 
 
Director of Marketing Gina Kaegi presented next.  The Season will consist of the Enchanted Pumpkin Garden (October-November), Christmas in Carefree (December-January), and a yet to be determined Spring Experience (March-April).  Signature 3rd party vendors will be featured as well.
 
 
 
Positive results from the marketing efforts include increased visitor and resident traffic, as well as positive feedback from both residents and businesses.  Carefree events were voted "Best of the Valley" in both 2015 and 2016, and were rated in the "Top 5 Things To Do".  The close association with Villafane Studios has increased the town's image and credibility, and has helped reinforce the town's image of a more open, friendly family environment.  Carefree has gained significant digital awareness both locally and globally, and has received at no cost over $1.3 million in local and national TV coverage.  Excitement and enthusiasm for what Carefree offers is building every year.
These successes have produced entrees to new media sponsors and partners.  Testimonials have been received from several Carefree businesses, including the English Rose Tea Room, Venues Cafe, and The UPS Store.
 
 
 
The marketing budget overview consists of print, digital media, creative design/services, event support, and general office expenses for a total of $425,000, down from the current $461,000.  The projected revenue from the proposed cost recovery model is $125,000.
 
Part 4 of 6: https://vimeo.com/214328721
 
 
 
The Council discussions and some comments from the audience were lively and occasionally contentious.  Mayor Les Peterson, Councilwoman Cheryl Kroyer, and Councilman Mike Krahe spoke in support of the proposed budget.  Councilmen Mike Farrar and Jim Van Allen strenuously opposed the marketing budget.  When pressed to suggest alternatives, they had none other than Mr. Farrar's suggestion to carve $100,000 off of the marketing budget to be used for landscaping the secondary entrances into the downtown.  The meeting was adjourned by the Mayor after 2 hours and 50 minutes. The next budget workshop will be held on April 25 at 3 PM at the Carefree Fire House, when the line item budget will be presented and discussed.
 
Part 5 of 6: https://vimeo.com/214328721
Part 6 of 6: https://vimeo.com/214353325
 
 
Lyn Hitchon
 
 
 
Prepared by Carefree Truth
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