"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 #1033, June 27, 2022
Issue #1033, June 27, 2022
What the hell are you talking about?
On June 4th an article appeared entitled, Residents: We hear you loud and clear.
The authors of this article tell us that a small “faction” of individuals are dominating our communications. Yes, I have the same question you may have, “What the hell are you talking about?” I ask, if you are referring to the town council let’s review a few things. The town council meets the on first Tuesday at the same place and at the same time every month. An open forum is provided where anyone can speak, share an opinion or ask any questions they desire. In the last three years, prior to this election, I have not seen Kathlina Lai, Duke Vukotic, Sven Maric or Peter Sample ever show up. So far, I am not impressed with their community engagement or their concerns over how the town is run or developing.
They declare the council has no vision, sophistication, or leadership. Again, I ask, “What the hell are you talking about?” Upon joining the council in late 2018 I became immersed in the town’s efforts to generate additional revenue by hosting various events such as the Pumpkin Fest and the Thunderbird art shows. This approach of revenue generation seemed simple enough but was costly, difficult to manage, and inconsistent. The town manager, mayor, and the council recognized that the more prudent manner in supporting the town was through long range economic development.
This change in tack was a decisive move. Council then began to focus on the NE corner of Carefree Highway and Cave Creek Road. These ~24 acres represent the largest parcel of land in Carefree open to development. Commercial usage was the only practical approach as no one would want to live on such a busy intersection. Once interest to develop this corner came to the attention of the town manager, we began evaluating their proposal. Initially, the developer wanted a 24-emergency hospital, a Sprout’s food store, a car wash, a couple fast food facilities, and more. In addition, the plans showed no consideration to the adjacent residents to noise, lighting, or traffic congestion.
The council reviewed the plans extensively and demanded numerous changes. Such as lower density, larger land setbacks, low level lighting, sound barriers, no fast-food facilities, and expanded ingress/egress ways. I personally told their attorney that there will be “no car wash and don’t tell us it was essential to the financial viability of the development.” The town met with the adjacent HOA’s of Carefree Foothills and Carefree Sentinel Rock Estates that border this corner to get their inputs. Eventually, all parties agreed to the design, the cost, and the town’s guidelines. As we all know, this project never developed. Why, you may ask. Because the CAP water necessary to support this project ran through a piping system controlled by Cave Creek and they refused to honor our request. This my fellow residents is why Sprout’s and various other business are located on the opposite corner generating over $500k in tax revenue for Cave Creek and not YOU. This is why it is so important for the future development and economic viability of Carefree to own and control its water system. This project alone would have contributed significantly to support our fire department and automatic aid with our adjoining communities. Merging the approximate 520 homes or servicing units on the west side of town and developing a modern fully integrated water tank and piping system are crucial to the town’s sustainability. Period!
Cave Creek refused to honor the governmental contract they signed over a decade ago to release the 520 homes that they still serviced through their pipes. This is why we ended up in court. This process was long, exhausting, and expensive. The arbitration board agreed with Carefree on every issue including the price tag for the servicing units and was reimbursed for all legal fees. If the average water bill for these 520 homes was $100 per month plus the $20 surcharge for thirty years, absent inflation, that comes to over $22M in revenue. The rest of our residents will incur a 4.4% increase to their bill for four years followed by a 2.5% increase per year. Yes, you heard me correctly; your water bill will go up approximately $4.40/mo. Approximately $18.5M of the recent bond issue will be spent over the next five years building the necessary water tank, disconnecting from the Cave Creek piping network, installing new fire hydrants, and completing the integrated water system.
Water tank:
There have been several residents that reside in the Boulders that have publicly misrepresented the facts of this project. Facts that they chose not to understand which has cost their HOA and the town hundreds of thousands of dollars in legal fees. Again, I ask, “What the hell are you talking about?” The facts are as follows: the tank will hold 300k gallons and due to its elevation will gravity feed the system saving thousands of dollars in piping and booster pumps, its main function is to provide water to the western end of Carefree, it is completely buried except for four feet needed for inspections and repairs, it will be covered in natural landscape and will not be visible by the residents of the Boulders, it will provide a natural buffer from the daily traffic noise of Tom Darlington road.
The Mayor and Vice Mayor Crane, and the entire council spent countless hours with legal counsel, the town manager, the investment banking firm, the civil engineering firm, and the Carefree Water Company. The financing for this major project took well over 18 months to finalize. The current council has some uniquely talented members. Councilman Geiger spent decades in the municipal water industry and has tremendous depth and understanding of municipal water systems. Although my engineering work was in the aerospace industry, I certainly understand the technical challenges of building out such a system. Many hours were donated by Sheila Amoroso, candidate for town council, who spent a lifetime in the capital markets analyzing municipalities for underwriting capital needs. Her experience and acute insights were greatly appreciated by the town manager and council. Mike Johnson, although fairly new to the council ran several technology firms and is a very experienced financial officer.
False claim #1
The authors of this article claim that on the NE corner of Carefree Highway and Cave Creek Rd council intends to build another hotel, three or more burger joints, a shopping mall, and much more. Once again, I ask, “What the hell are you talking about?” This is a complete fabrication. No truth to this at all! Show us the contracts Ms. Lai, show us the zoning approvals Mr. Vukotic, and show us the IGA agreement with the developer Mr. Maric. Perhaps Mr. Sample has all this information and just hasn’t released it yet to the town manager or council.
False claim #2
This group also claims we have “pinched pennies” when it comes to our fire and emergency services, and we have chosen to go with the “lowest bidder.” Once again, I ask, “What the hell are you talking about?” Our 2022 budget for Rural Metro is $1.62M. That’s a lot of pennies Ms. Lai, Messrs. Vukotic and Maric. In the last town council meeting we approved the extension of the Rural Metro contract for eighteen months with the option of a two-year extension. This approval will give us the time we need to study and evaluate our fire service needs and how we are going to finance any new equipment and possibly enter into the preferred automatic aid program. Rural Metro has served Carefree for many years and has done a very good job. Once again, a total fabrication with no truth to the claim. Unfortunately, Ms. Lai, Messrs. Vukotic, and Maric were present during the vote yet chose to mislead you with false statements.
Hampton Inn:
I hear comments like, “we have destroyed the beauty and character of the town” or “this is not what our founders wanted.” Well, for approximately 60yrs our iconic sundial sat next to a big piece of dirt in the center of town. So, we finally decided to develop this dirt to attract visitors, generate tax revenue, generate sales revenue for our restaurants and shops, and bring national exposure to our beautiful little town. Recently, I spent a few hours at the post office speaking with many of you. When asked, “Is it the hotel you don’t like or its architectural design? Most declared they were fine with the hotel but just didn’t care for the design. Although the post office is single story it certainly isn’t going to win any design awards. It’s an old, gray, dull, and insipid looking building yet no one complains. You may not care for the hotel, but it doesn’t negatively impact the value of your home, diminish your ability to enjoy your home or the pleasures of living in Carefree. Economically, the town and our businesses will receive tens of thousands of dollars in revenue. This revenue will support the financial needs of the town for years to come.
Revenue:
The sources of revenue for the town are threefold, sales taxes, User fees, and state sharing funds. The state sharing funds are adjusted annually based upon population and currently represent
~24% of our total revenue. Since Carefree is close to being done with new home development the state sharing funds as well as the User fees will diminish over time. Furthermore, ~33% of our tax revenue comes from retail sales with Lowes, Bashas’, and CVS Drug store representing the majority of this revenue. If any one of these businesses decides to leave Carefree it would have a meaningful impact on our revenue. Therefore, it is only prudent to diversify our sales tax sources. This supports the future need to at least develop the NE corner of Carefree.
So, please don’t talk to us about vision, sophistication, or leadership. I’ve seen it firsthand, all the work our Mayor, Vice Mayor, and council do to run and care for our beautiful town. They have volunteered hundreds of hours and worked diligently with our town manager, director of economic development, director of planning & zoning, engineering, and numerous other external professionals and institutions. To do all that is necessary to bring fire & medical services, to secure policing services, to have clean water flowing, to foster a diverse and healthy business community, to provide pedestrian walkways & safe crosswalks, all while maintaining a strong balance sheet for decades to come. And remember, “Keep it Carefree.”
Respectfully,
Stephen Hatcher Councilman
The authors of this article tell us that a small “faction” of individuals are dominating our communications. Yes, I have the same question you may have, “What the hell are you talking about?” I ask, if you are referring to the town council let’s review a few things. The town council meets the on first Tuesday at the same place and at the same time every month. An open forum is provided where anyone can speak, share an opinion or ask any questions they desire. In the last three years, prior to this election, I have not seen Kathlina Lai, Duke Vukotic, Sven Maric or Peter Sample ever show up. So far, I am not impressed with their community engagement or their concerns over how the town is run or developing.
They declare the council has no vision, sophistication, or leadership. Again, I ask, “What the hell are you talking about?” Upon joining the council in late 2018 I became immersed in the town’s efforts to generate additional revenue by hosting various events such as the Pumpkin Fest and the Thunderbird art shows. This approach of revenue generation seemed simple enough but was costly, difficult to manage, and inconsistent. The town manager, mayor, and the council recognized that the more prudent manner in supporting the town was through long range economic development.
This change in tack was a decisive move. Council then began to focus on the NE corner of Carefree Highway and Cave Creek Road. These ~24 acres represent the largest parcel of land in Carefree open to development. Commercial usage was the only practical approach as no one would want to live on such a busy intersection. Once interest to develop this corner came to the attention of the town manager, we began evaluating their proposal. Initially, the developer wanted a 24-emergency hospital, a Sprout’s food store, a car wash, a couple fast food facilities, and more. In addition, the plans showed no consideration to the adjacent residents to noise, lighting, or traffic congestion.
The council reviewed the plans extensively and demanded numerous changes. Such as lower density, larger land setbacks, low level lighting, sound barriers, no fast-food facilities, and expanded ingress/egress ways. I personally told their attorney that there will be “no car wash and don’t tell us it was essential to the financial viability of the development.” The town met with the adjacent HOA’s of Carefree Foothills and Carefree Sentinel Rock Estates that border this corner to get their inputs. Eventually, all parties agreed to the design, the cost, and the town’s guidelines. As we all know, this project never developed. Why, you may ask. Because the CAP water necessary to support this project ran through a piping system controlled by Cave Creek and they refused to honor our request. This my fellow residents is why Sprout’s and various other business are located on the opposite corner generating over $500k in tax revenue for Cave Creek and not YOU. This is why it is so important for the future development and economic viability of Carefree to own and control its water system. This project alone would have contributed significantly to support our fire department and automatic aid with our adjoining communities. Merging the approximate 520 homes or servicing units on the west side of town and developing a modern fully integrated water tank and piping system are crucial to the town’s sustainability. Period!
Cave Creek refused to honor the governmental contract they signed over a decade ago to release the 520 homes that they still serviced through their pipes. This is why we ended up in court. This process was long, exhausting, and expensive. The arbitration board agreed with Carefree on every issue including the price tag for the servicing units and was reimbursed for all legal fees. If the average water bill for these 520 homes was $100 per month plus the $20 surcharge for thirty years, absent inflation, that comes to over $22M in revenue. The rest of our residents will incur a 4.4% increase to their bill for four years followed by a 2.5% increase per year. Yes, you heard me correctly; your water bill will go up approximately $4.40/mo. Approximately $18.5M of the recent bond issue will be spent over the next five years building the necessary water tank, disconnecting from the Cave Creek piping network, installing new fire hydrants, and completing the integrated water system.
Water tank:
There have been several residents that reside in the Boulders that have publicly misrepresented the facts of this project. Facts that they chose not to understand which has cost their HOA and the town hundreds of thousands of dollars in legal fees. Again, I ask, “What the hell are you talking about?” The facts are as follows: the tank will hold 300k gallons and due to its elevation will gravity feed the system saving thousands of dollars in piping and booster pumps, its main function is to provide water to the western end of Carefree, it is completely buried except for four feet needed for inspections and repairs, it will be covered in natural landscape and will not be visible by the residents of the Boulders, it will provide a natural buffer from the daily traffic noise of Tom Darlington road.
The Mayor and Vice Mayor Crane, and the entire council spent countless hours with legal counsel, the town manager, the investment banking firm, the civil engineering firm, and the Carefree Water Company. The financing for this major project took well over 18 months to finalize. The current council has some uniquely talented members. Councilman Geiger spent decades in the municipal water industry and has tremendous depth and understanding of municipal water systems. Although my engineering work was in the aerospace industry, I certainly understand the technical challenges of building out such a system. Many hours were donated by Sheila Amoroso, candidate for town council, who spent a lifetime in the capital markets analyzing municipalities for underwriting capital needs. Her experience and acute insights were greatly appreciated by the town manager and council. Mike Johnson, although fairly new to the council ran several technology firms and is a very experienced financial officer.
False claim #1
The authors of this article claim that on the NE corner of Carefree Highway and Cave Creek Rd council intends to build another hotel, three or more burger joints, a shopping mall, and much more. Once again, I ask, “What the hell are you talking about?” This is a complete fabrication. No truth to this at all! Show us the contracts Ms. Lai, show us the zoning approvals Mr. Vukotic, and show us the IGA agreement with the developer Mr. Maric. Perhaps Mr. Sample has all this information and just hasn’t released it yet to the town manager or council.
False claim #2
This group also claims we have “pinched pennies” when it comes to our fire and emergency services, and we have chosen to go with the “lowest bidder.” Once again, I ask, “What the hell are you talking about?” Our 2022 budget for Rural Metro is $1.62M. That’s a lot of pennies Ms. Lai, Messrs. Vukotic and Maric. In the last town council meeting we approved the extension of the Rural Metro contract for eighteen months with the option of a two-year extension. This approval will give us the time we need to study and evaluate our fire service needs and how we are going to finance any new equipment and possibly enter into the preferred automatic aid program. Rural Metro has served Carefree for many years and has done a very good job. Once again, a total fabrication with no truth to the claim. Unfortunately, Ms. Lai, Messrs. Vukotic, and Maric were present during the vote yet chose to mislead you with false statements.
Hampton Inn:
I hear comments like, “we have destroyed the beauty and character of the town” or “this is not what our founders wanted.” Well, for approximately 60yrs our iconic sundial sat next to a big piece of dirt in the center of town. So, we finally decided to develop this dirt to attract visitors, generate tax revenue, generate sales revenue for our restaurants and shops, and bring national exposure to our beautiful little town. Recently, I spent a few hours at the post office speaking with many of you. When asked, “Is it the hotel you don’t like or its architectural design? Most declared they were fine with the hotel but just didn’t care for the design. Although the post office is single story it certainly isn’t going to win any design awards. It’s an old, gray, dull, and insipid looking building yet no one complains. You may not care for the hotel, but it doesn’t negatively impact the value of your home, diminish your ability to enjoy your home or the pleasures of living in Carefree. Economically, the town and our businesses will receive tens of thousands of dollars in revenue. This revenue will support the financial needs of the town for years to come.
Revenue:
The sources of revenue for the town are threefold, sales taxes, User fees, and state sharing funds. The state sharing funds are adjusted annually based upon population and currently represent
~24% of our total revenue. Since Carefree is close to being done with new home development the state sharing funds as well as the User fees will diminish over time. Furthermore, ~33% of our tax revenue comes from retail sales with Lowes, Bashas’, and CVS Drug store representing the majority of this revenue. If any one of these businesses decides to leave Carefree it would have a meaningful impact on our revenue. Therefore, it is only prudent to diversify our sales tax sources. This supports the future need to at least develop the NE corner of Carefree.
So, please don’t talk to us about vision, sophistication, or leadership. I’ve seen it firsthand, all the work our Mayor, Vice Mayor, and council do to run and care for our beautiful town. They have volunteered hundreds of hours and worked diligently with our town manager, director of economic development, director of planning & zoning, engineering, and numerous other external professionals and institutions. To do all that is necessary to bring fire & medical services, to secure policing services, to have clean water flowing, to foster a diverse and healthy business community, to provide pedestrian walkways & safe crosswalks, all while maintaining a strong balance sheet for decades to come. And remember, “Keep it Carefree.”
Respectfully,
Stephen Hatcher Councilman
