"Thomas Jefferson said a democracy is dependent on an informed citizenry. I don't care whether it sounds corny or not. It's the truth." -Jim Lehrer
Carefree Truth
Issue #1017, April 28, 2022
Issue #1017, April 28, 2022
Gary Neiss reinforced that the Capital Improvement (CI) budget is separate from the Operational budget. This is money that has been saved for this purpose, and the timing aims to achieve an economy of scale to reduce the cost. Carefree historically saves, then spends. These projects are managed by the Town Engineer, Mark Milstone, and were discussed extensively at previous Council meetings over the past months and reported in Carefree Truth.
The General Fund has $6.88 million and the CI fund has $5 million. This does not include pass-through revenue and expenses. There are other funds outside of this that would take the budget just north of $14 million, such as the Water Infrastructure Finance Authority loan that the Town holds and the Water Company repays, and Arizona Lottery Funds for transportation, which each year is passed on to the Foothills Caring Corps, the closest thing Carefree has to public transportation. The Town will be receiving $656,000 in stimulus funds which will go towards the water project for fire suppressant incorporated within the water project. But the two numbers above show what is coming in and what is going out, and in what the Town is investing.
Mayor Les Peterson thanked Mr. Neiss for his presentations, and to all who helped and supported his leadership on this.
Vice Mayor John Crane asked if the sales tax revenue (STR) on accommodations and hotels included the bed tax. Mr. Neiss confirmed that it does. The sales tax is carved out and the bed tax goes into accommodations. The 8% is the bed tax. The Vice Mayor asked if there is a lag in the State Shared Revenue (SSR) from income and sales taxes. Mr. Neiss explained that there is not a lag in the sales tax but there is a 2 year lag in the income tax. Vice Mayor Crane noted that the Maricopa County Sheriff's Office (MCSO) raised their contract rate by 13%.
Councilman Mike Johnson asked what happens if there is a significant shortfall and the revenue targets are not met. Are there contingency plans to cut back on cash outlays and to push projects out until a later date? Mr. Neiss assured him that is the case, if need be. He and Jim Keen look at and evaluate the incoming revenue on a monthly basis, and if there is a lag in that revenue, difficult decisions would have to be made. However, the 16 year revenue data that was provided during the budget meetings was bookended by two generational downturns, the Great Recession and the Covid shutdowns. Both had dramatic impacts on the local economy, but Carefree never had to implement draconian measures to make payroll or to meet the needs of this community. Carefree's conservative management and revenue estimates benefit the Town and they have not had to take those measures under consideration. Under Covid, capital projects were deferred because of the uncertainty of the economy as a whole, but it is the only time in his 20 years here that was done. Mr. Johnson commented that was great.
Vice Mayor Crane noted that the following week, in the 3rd budget workshop, the numbers would be presented in greater detail so everyone would have a full understanding of costs and revenue, and what went up or down in cost. Mr. Neiss explained that, for example, Code Enforcement increased because a new truck was purchased for $35,000, but that it would be back in line with the 10 year average again. He said the last workshop would be the time and place to ask questions.
Councilwoman Cheryl Kroyer thanked Mr. Neiss for his comprehensive presentations and for being so conservative with the Town's money.
https://vimeo.com/702298311
Lyn Hitchon
Prepared by Carefree Truth
Copyrighted
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.
Mayor Les Peterson thanked Mr. Neiss for his presentations, and to all who helped and supported his leadership on this.
Vice Mayor John Crane asked if the sales tax revenue (STR) on accommodations and hotels included the bed tax. Mr. Neiss confirmed that it does. The sales tax is carved out and the bed tax goes into accommodations. The 8% is the bed tax. The Vice Mayor asked if there is a lag in the State Shared Revenue (SSR) from income and sales taxes. Mr. Neiss explained that there is not a lag in the sales tax but there is a 2 year lag in the income tax. Vice Mayor Crane noted that the Maricopa County Sheriff's Office (MCSO) raised their contract rate by 13%.
Councilman Mike Johnson asked what happens if there is a significant shortfall and the revenue targets are not met. Are there contingency plans to cut back on cash outlays and to push projects out until a later date? Mr. Neiss assured him that is the case, if need be. He and Jim Keen look at and evaluate the incoming revenue on a monthly basis, and if there is a lag in that revenue, difficult decisions would have to be made. However, the 16 year revenue data that was provided during the budget meetings was bookended by two generational downturns, the Great Recession and the Covid shutdowns. Both had dramatic impacts on the local economy, but Carefree never had to implement draconian measures to make payroll or to meet the needs of this community. Carefree's conservative management and revenue estimates benefit the Town and they have not had to take those measures under consideration. Under Covid, capital projects were deferred because of the uncertainty of the economy as a whole, but it is the only time in his 20 years here that was done. Mr. Johnson commented that was great.
Vice Mayor Crane noted that the following week, in the 3rd budget workshop, the numbers would be presented in greater detail so everyone would have a full understanding of costs and revenue, and what went up or down in cost. Mr. Neiss explained that, for example, Code Enforcement increased because a new truck was purchased for $35,000, but that it would be back in line with the 10 year average again. He said the last workshop would be the time and place to ask questions.
Councilwoman Cheryl Kroyer thanked Mr. Neiss for his comprehensive presentations and for being so conservative with the Town's money.
https://vimeo.com/702298311
Lyn Hitchon
Prepared by Carefree Truth
Copyrighted
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.