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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 Truth
Issue #638, April 23, 2018


Expenses (continued)

Operations:
At approximately $2,000,000 (25%), Operations consists of supplies, equipment, materials, utilities, and contracts.  Internal operations, include Public Works, the Water Infrastructure Authority (WIFA) loan, Marketing, Administration, the Court, Clerks, Fire, Planning and Zoning, Building Safety, and Code Enforcement.

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The Public Works Department is responsible for the streets, drainage projects, and the Town Gardens.  The (WIFA) loan is a pass-through agreement with the Carefree Water Company. The investment in marketing includes the costs of digital and print media, and office supplies.  All communities must market themselves continuously to define their brand and remain relevant.  Although Scottsdale is a well known brand, they continue to market the city.  As an example in the private sector, Bud Lite markets itself at the Super Bowl.    



Due to the small size of the staff, the Town sometimes partners with 3rd parties to provide additional services. At $900,000, Contractual Support Services include Event Logistics, Legal/Court, Risk Management, Landscaping, Engineering, and Inspection Services.



Event logistics consists of the contract with Ray Villafane, production of the Christmas Festival, and money spent on the smaller events such as Veteran's Day, Memorial Day, and the Carefree Block Party.  The Town's current successful cost recovery model is recouping about 2/3 of the costs incurred by these events.  Due to the high volume of building occurring, the Town contracts with Brown and Associates to assist building inspector Mike Tibbetts when necessary. Town engineers are required by State Statute, and all Requests For Proposals (RFP) must be stamped by the Town engineer. Greg Crossman, head of the Carefree Water Company, is also a civil engineer. He acts as the Town engineer by contract, achieving an economy of scale with significant savings to the Town.  The Municipal Storm Water Plan Study, for which the State dictates the timeline, is still underway with the hired consultant.  Desert Foothills Landscape provides landscape services for the medians and the Gardens.  Tyrol Insurance, the risk management pool, is 3 times cheaper than the outside market, with better coverage.  Legal/court includes the Town attorney, 3rd party attorneys, and the Town prosecutor.


Public Safety:
At approximately $2,000,000 (25%), Public Safety includes fire, law enforcement, jail, prosecution, animal control, and the Posse.

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Fire protection is the largest cost, but there is some cost recovery.  Rural/Metro (R/M) pays rent for their ambulance parking space in the fire station, and each time the Carefree fire truck goes on a call outside of Carefree's borders, there is a charge to R/M.  Town-wide fire protection is the largest benefit to Carefree residents, providing an average savings of $1000 a year per household.  Carefree is receiving excellent service from the Maricopa County Sheriff's Office (MCSO).  Mayor Peterson interjected with a story told to him by the new MCSO Commander.  The Commander, who came from downtown headquarters and dealt with major crimes, did not view traffic enforcement as a high priority until his wife was hit by a speeding car, resulting in 2 broken arms, 2 broken legs, and a 2-1/2 week coma.  He has become a believer.


Capital Projects/Assets:
At approximately $2,250,000 (30%), Capital Projects/ Assets consists of street maintenance, the infrastructure assessment study, repayment of the loan on the Council chamber building at 33 Easy Street, pedestrian crossing improvements, and median landscaping.

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Every 5-7 years, the streets must receive maintenance to extend the life of the asphalt.  These funds are drawn from the Highway User Revenue Fund (HURF), the Southwest Gas Capital Fund, and capital reserves.   The infrastructure assessment study is being done to look at the possibility of moving Carefree residents who are serviced by the Cave Creek Water Company over to the Carefree Water Company.  The final payment for the improvements to the 33 Easy Street building will be released upon completion of the project punch list, and the loan on the building will be repaid in the 2018/19 fiscal year (FY), incurring no early repayment penalty.  There are 4 pedestrian crossings in Carefree, 3 of which have only painted stripping on the streets and standard warning signs.  Concerns that vehicular traffic ignores the stripes and signs have been expressed by those trying to cross the street, so the Town is exploring options to address those safety issues.  The Town has received many compliments from residents regarding the landscaping in the medians, and requests to expand the median landscaping towards the residential developments, so the project will be broadened.


Summary:
Revenue will remain steady at approximately $6.4 million.  Organizational expenses remain constant at $5.5 million.  Carefree is projecting an investment of over $2.25 million in street maintenance, median landscaping, pedestrian crosswalk improvements, infrastructure evaluation, and the 33 Easy Street building mortgage retirement.  Approximately $1.5 million of the capital improvement/asset investment funds will be drawn from the capital reserve funds, which are currently at the all time high level of $7.6 million.  The Town's policy has always been to save, then to spend.  The 2018/19 FY will see some spending, but the reserves will replenished again in the future. 



The budget numbers were in the process of being fine tuned at the time of the overview workshop, but Mr. Neiss said he expected the finished line item budget to be available the following afternoon, or at the latest, the morning after that. When finished, it will be placed in the Council members boxes at Town Hall for review.  Questions and/or concerns from Council members will be addressed at the budget workshop on April 24th. 



Mr. Neiss said the next steps are as follows:

He repeated that the line item budget would be available the next day or the morning after that.  The 2nd budget workshop will take place on April 24th.  The bottom line will be adopted at the May 1st Council meeting.  The budget hearing and adoption will take place at the June 5th Council meeting.  The 2018/19 FY begins on July 1st.  He asked if there were any questions.



Councilman Mike Farrar asked if the Council members could get a copy of the presentation Mr. Neiss had just given.  Mr. Neiss confirmed that they could.  Mr. Farrar then asked how soon the line item budget would be available prior to the April 24th meeting.  Mr. Neiss replied, "Once again, yes, late tomorrow afternoon or the following morning".



Mayor Peterson noted that Carefree is moving to a cost recovery basis, so the Town has to put money out, enabling people to participate and generate benefits, then they offset the costs a considerable amount.  When looking at the budget, he said all the pieces must be put together.  Vice Mayor John Crane pointed out that every year, the cost recovery increases.  "That's the key thing."  Mr. Neiss said the 2017/18 FY estimated $125,000 in cost recovery, but saw $140,000.  The 2018/19 budget estimates a cost recovery of $175,000.  The Mayor was proud that Carefree was offsetting costs while running world class activities.  Councilman Gene Orrico said, "Good job, Gary".


https://vimeo.com/265498107


Lyn Hitchon


Prepared by Carefree Truth
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