Carefree Truth
Issue #570, June 9, 2017
Gary Neiss reported that Phoenix has a budget of $4 billion, Scottsdale's is $1.25 billion, Chandler's is $900 million, Queen Creek's is $250 million, Cave Creek's is $18 million and Carefree's is $6.5 million. Almost 2/3 of Carefree's revenue is derived from local municipal sales tax. This is why the Town is concentrating on marketing to bring people up here, and on economic development to bring new enterprises to Carefree that will be tax productive. We must diversify in order to make the model work long term, and to avoid a property tax that nobody wants. This requires strategic investments in marketing and economic development.
The budget also includes salaries and benefits for 16 full time employees (FTE). 3 of those FTEs work for both Carefree and Cave Creek in the Consolidated Court, so Carefree actually has 13 FTEs, one of the smallest staffs in the metropolitan area for a town of Carefree's size. Cave Creek has a relatively similar size population and circumstances, and the same rules dictated by the State apply to both towns. Cave Creek has 26 FTE and their budget for salaries and benefits is $1.3 million more than Carefree's. Carefree is getting "a good bang for the buck".
Issue #570, June 9, 2017
Gary Neiss reported that Phoenix has a budget of $4 billion, Scottsdale's is $1.25 billion, Chandler's is $900 million, Queen Creek's is $250 million, Cave Creek's is $18 million and Carefree's is $6.5 million. Almost 2/3 of Carefree's revenue is derived from local municipal sales tax. This is why the Town is concentrating on marketing to bring people up here, and on economic development to bring new enterprises to Carefree that will be tax productive. We must diversify in order to make the model work long term, and to avoid a property tax that nobody wants. This requires strategic investments in marketing and economic development.
The budget also includes salaries and benefits for 16 full time employees (FTE). 3 of those FTEs work for both Carefree and Cave Creek in the Consolidated Court, so Carefree actually has 13 FTEs, one of the smallest staffs in the metropolitan area for a town of Carefree's size. Cave Creek has a relatively similar size population and circumstances, and the same rules dictated by the State apply to both towns. Cave Creek has 26 FTE and their budget for salaries and benefits is $1.3 million more than Carefree's. Carefree is getting "a good bang for the buck".
4 public budget meetings have been held. There were 2 workshops in April, a meeting in May for the adoption of the tentative budget and the establishment of the bottom line, and this June meeting to adopt the final budget for the Fiscal Year (FY) 2017/18, which begins July 1st.
Councilman Gene Orrico asked why the building revenues for FY 2016/17 were $177,000 below the budgeted estimate, but the building revenues for FY 2017/18 are estimated at $350,000. Mr. Neiss replied that the 2016/17 estimate anticipated sales of Ed Lewis's condominiums, which did not happen. The estimate for 2017/18 takes into account the Keystone Eastwood development, the repositioning of the Carefree Resort and its associated improvements by the new owners, as well as 27 houses under construction. There will be healthy building permit numbers.
Mr. Orrico also questioned the marketing figure. He thought money was being knocked off of it, but instead it has increased. Mr. Neiss explained that the marketing figure is the overall cost of the department, including staff salaries and benefits, as well as all the programs conducted through that department. $480,000 is the operational part; the delta is salaries and benefits.
Mr. Orrico asked what demographic was being targeted. He didn't see any benefit derived from the sand sculpture, and wondered if the marketing money was being spent in the right spot. He agreed that Ray Villafane is a "master", but he didn't agree with continuing the spring sand sculpture program. Doing it earlier this year didn't extend the season like doing it in May did last year. "Are we marketing the Town of Carefree or are we marketing the artist?" He noted that everything shows the artist. Some of the residents have approached him to express their displeasure with the sand sculpture and with the Council for spending the money on it.
Mayor Les Peterson said he didn't believe the sand sculpture cost anywhere close to the amount of the Pumpkin Festival. When this subject came up at a previous meeting, Mr. Orrico had been invited to join the marketing committee to participate in developing an appropriate spring event. They have been so focused on Halloween and Christmas that a spring event has yet to be determined, but they will be calling him when the time comes. Mr. Orrico replied, "I'll be there!" He agreed that nothing happens without marketing.
Vice Mayor John Crane agreed that Carefree must be mindful of becoming stale. The goal is to "mix it up" and to do the spring event later to extend the season. Councilwoman Cheryl Kroyer said the committee has been rethinking the timing in an effort to extend the season, which is the goal. They are not yet sure what the event will be, but it will take place in May. Councilman Mike Krahe assured Mr. Orrico that the committee is thinking about a backup plan in case the artist is unavailable. "Good minds are working on that. It's being addressed."
John Traynor asked to speak. He said he hasn't been as "participatory" of late as he might have been, and missed the last meeting where the budget was discussed. But he has questions and concerns. The Town is putting more and more money into marketing and he hasn't seen any tangible return. Some things take time, but what are the "guideposts" for return on investment and what is the "exit strategy"? Revenue is decreasing and the expenses are increasing for marketing and for staff salaries and benefits. He disagreed with these expenditures, calling them drags on the Town's economy.
The Mayor called for a motion. The FY 2017/18 budget was approved 4-3, with Councilmen Jim Van Allen, Mike Farrar and Gene Orrico opposed.
https://vimeo.com/220743895
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.
Councilman Gene Orrico asked why the building revenues for FY 2016/17 were $177,000 below the budgeted estimate, but the building revenues for FY 2017/18 are estimated at $350,000. Mr. Neiss replied that the 2016/17 estimate anticipated sales of Ed Lewis's condominiums, which did not happen. The estimate for 2017/18 takes into account the Keystone Eastwood development, the repositioning of the Carefree Resort and its associated improvements by the new owners, as well as 27 houses under construction. There will be healthy building permit numbers.
Mr. Orrico also questioned the marketing figure. He thought money was being knocked off of it, but instead it has increased. Mr. Neiss explained that the marketing figure is the overall cost of the department, including staff salaries and benefits, as well as all the programs conducted through that department. $480,000 is the operational part; the delta is salaries and benefits.
Mr. Orrico asked what demographic was being targeted. He didn't see any benefit derived from the sand sculpture, and wondered if the marketing money was being spent in the right spot. He agreed that Ray Villafane is a "master", but he didn't agree with continuing the spring sand sculpture program. Doing it earlier this year didn't extend the season like doing it in May did last year. "Are we marketing the Town of Carefree or are we marketing the artist?" He noted that everything shows the artist. Some of the residents have approached him to express their displeasure with the sand sculpture and with the Council for spending the money on it.
Mayor Les Peterson said he didn't believe the sand sculpture cost anywhere close to the amount of the Pumpkin Festival. When this subject came up at a previous meeting, Mr. Orrico had been invited to join the marketing committee to participate in developing an appropriate spring event. They have been so focused on Halloween and Christmas that a spring event has yet to be determined, but they will be calling him when the time comes. Mr. Orrico replied, "I'll be there!" He agreed that nothing happens without marketing.
Vice Mayor John Crane agreed that Carefree must be mindful of becoming stale. The goal is to "mix it up" and to do the spring event later to extend the season. Councilwoman Cheryl Kroyer said the committee has been rethinking the timing in an effort to extend the season, which is the goal. They are not yet sure what the event will be, but it will take place in May. Councilman Mike Krahe assured Mr. Orrico that the committee is thinking about a backup plan in case the artist is unavailable. "Good minds are working on that. It's being addressed."
John Traynor asked to speak. He said he hasn't been as "participatory" of late as he might have been, and missed the last meeting where the budget was discussed. But he has questions and concerns. The Town is putting more and more money into marketing and he hasn't seen any tangible return. Some things take time, but what are the "guideposts" for return on investment and what is the "exit strategy"? Revenue is decreasing and the expenses are increasing for marketing and for staff salaries and benefits. He disagreed with these expenditures, calling them drags on the Town's economy.
The Mayor called for a motion. The FY 2017/18 budget was approved 4-3, with Councilmen Jim Van Allen, Mike Farrar and Gene Orrico opposed.
https://vimeo.com/220743895
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.