Carefree Truth
Issue #747, May 13, 2019
At the May Council meeting, the second part of the budget process, the preliminary budget adoption which sets the bottom line, took place. The first part was the 3 workshops held in April, "where the heavy lifting was done". The first workshop was the staff presentations. The second was the high level overview of anticipated revenues and expenses. The third was the review of the line item budget, where Council members could ask questions and get answers about each line item.
Gary Neiss reported on the high notes. There has been a 9% increase in revenues to date, with the trend anticipated to continue this next fiscal year (FY). New home starts are strong. The new storage facility is nearly complete, and the Civana remodel is complete. Civana reported a very strong first quarter, with 100% occupancy on some weekends. The new Hampton Inn and new town homes within the Town Center anticipate construction to begin in mid summer to early fall, generating a critical mass to help support the businesses within the Town Center. The large anchor businesses are doing well due to strong residential growth in the primary trade area, defined as a 15 minute drive from Carefree. The restaurant business continues to improve with the introduction of Keeler's, a new pizza restaurant coming into Spanish Village in the fall, and Confluence being named Best New Restaurant of 2018 by Phoenix Magazine. Development plans are moving forward for the northeast corner of Carefree Highway and Cave Creek Road.
Organizational expenses remain consistent and proportional to inflation indices. It is important to note that Reserves are currently at the highest levels ever, at approximately $9.6 million, an increase of $200,000 since last month. This savings through past fiscal constraints will permit a period of reinvestment in the infrastructure serving citizens and businesses, with approximately $4.5 million forecasted for the next FY.
The 2019/20 FY budget is approximately $10.8 million, excluding HURF and WIFA funds. It will be approximately $11.4 million with those restricted funds included. ($7 million in new revenue is anticipated.)
Revenues: 19%-State Shared Revenue (population based), 30%-local fees, 51%-local sales tax (This does not include the transfer from the Capital Reserves to fund Carefree projects.) Local fees include the cost recovery models approved for Town sponsored events like the Pumpkin Festival. 2/3 of the Marketing budget looks at expenses associated with cost recovery. If you carve this out, Marketing becomes one of the smaller departments within the Town. Local fees also include building permits and other revenue generated from town businesses. There is no local Carefree property tax.
Expenses: 15%-Human Resources (15 full time employees),
20%-Public Safety (fire and police), 23%-Operations, 42%- Capital Improvements
The next steps are populating and advertising the State Auditor General's Schedules A-G, and the adoption of the final budget at a public meeting on June 4th. The new FY begins on July 1st. The all inclusive tentative budget is $11.43 million.
Councilman Gene Orrico asked what the admission cost per person would be for the Pumpkin Festival. Mr. Neiss replied they are working through a number of packages that could be available. Marketing Director Beth Renfro said on Friday, Saturday, and Sunday the admission fee would be $15 per person and on Monday-Thursday it would be $10 each, with children under 2 admitted for free, and reminded Mr. Orrico that those fees had been established at the March meeting.
She added that, as a team over the summer, they are working through the possibilities of discounted pricing for Carefree residents, groups, and families, as well as identifying different discount opportunities such as Groupon.
Mr. Orrico asked if there were a way of finding out how many attend. Ms. Renfro explained that by charging admission they can better track attendance. Carefree is working with National Bank of Arizona to ensure resources are properly vetted. The Town will work with an as-yet-to-be-determined vendor to assist with fees at the admission points. They will be using the app Square Point.
Mr. Orrico asked if local "bricks and mortar" businesses would be paying the same vendor fees as out-of-town vendors. Ms. Renfro replied that the Vendor Market hasn't yet been fully addressed. They are looking at some changes for this year's Pumpkin Festival Market, as approved by the Council earlier this spring. Villafane Studios will have more say in what vendors are approved, and they will be working closely with Vicki Jasperson to vet vendors and to look at different ways to do the set-ups. The Vendor Market will be more spread out so it doesn't look like a "tent village" going down Ho Hum Road. Perhaps local vendors can be in the Gardens during the weekdays if they desire an extended presence.
There being no more questions or comments, Mayor Les Peterson called for a motion to approve the preliminary budget. The Council approved the motion 6-1, with Councilman Gene Orrico opposed. Mayor Peterson expressed surprise. "OK. You sat through 3 meetings and were in agreement, and now are opposed. Fine."
https://vimeo.com/335389763
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.
Issue #747, May 13, 2019
At the May Council meeting, the second part of the budget process, the preliminary budget adoption which sets the bottom line, took place. The first part was the 3 workshops held in April, "where the heavy lifting was done". The first workshop was the staff presentations. The second was the high level overview of anticipated revenues and expenses. The third was the review of the line item budget, where Council members could ask questions and get answers about each line item.
Gary Neiss reported on the high notes. There has been a 9% increase in revenues to date, with the trend anticipated to continue this next fiscal year (FY). New home starts are strong. The new storage facility is nearly complete, and the Civana remodel is complete. Civana reported a very strong first quarter, with 100% occupancy on some weekends. The new Hampton Inn and new town homes within the Town Center anticipate construction to begin in mid summer to early fall, generating a critical mass to help support the businesses within the Town Center. The large anchor businesses are doing well due to strong residential growth in the primary trade area, defined as a 15 minute drive from Carefree. The restaurant business continues to improve with the introduction of Keeler's, a new pizza restaurant coming into Spanish Village in the fall, and Confluence being named Best New Restaurant of 2018 by Phoenix Magazine. Development plans are moving forward for the northeast corner of Carefree Highway and Cave Creek Road.
Organizational expenses remain consistent and proportional to inflation indices. It is important to note that Reserves are currently at the highest levels ever, at approximately $9.6 million, an increase of $200,000 since last month. This savings through past fiscal constraints will permit a period of reinvestment in the infrastructure serving citizens and businesses, with approximately $4.5 million forecasted for the next FY.
The 2019/20 FY budget is approximately $10.8 million, excluding HURF and WIFA funds. It will be approximately $11.4 million with those restricted funds included. ($7 million in new revenue is anticipated.)
Revenues: 19%-State Shared Revenue (population based), 30%-local fees, 51%-local sales tax (This does not include the transfer from the Capital Reserves to fund Carefree projects.) Local fees include the cost recovery models approved for Town sponsored events like the Pumpkin Festival. 2/3 of the Marketing budget looks at expenses associated with cost recovery. If you carve this out, Marketing becomes one of the smaller departments within the Town. Local fees also include building permits and other revenue generated from town businesses. There is no local Carefree property tax.
Expenses: 15%-Human Resources (15 full time employees),
20%-Public Safety (fire and police), 23%-Operations, 42%- Capital Improvements
The next steps are populating and advertising the State Auditor General's Schedules A-G, and the adoption of the final budget at a public meeting on June 4th. The new FY begins on July 1st. The all inclusive tentative budget is $11.43 million.
Councilman Gene Orrico asked what the admission cost per person would be for the Pumpkin Festival. Mr. Neiss replied they are working through a number of packages that could be available. Marketing Director Beth Renfro said on Friday, Saturday, and Sunday the admission fee would be $15 per person and on Monday-Thursday it would be $10 each, with children under 2 admitted for free, and reminded Mr. Orrico that those fees had been established at the March meeting.
She added that, as a team over the summer, they are working through the possibilities of discounted pricing for Carefree residents, groups, and families, as well as identifying different discount opportunities such as Groupon.
Mr. Orrico asked if there were a way of finding out how many attend. Ms. Renfro explained that by charging admission they can better track attendance. Carefree is working with National Bank of Arizona to ensure resources are properly vetted. The Town will work with an as-yet-to-be-determined vendor to assist with fees at the admission points. They will be using the app Square Point.
Mr. Orrico asked if local "bricks and mortar" businesses would be paying the same vendor fees as out-of-town vendors. Ms. Renfro replied that the Vendor Market hasn't yet been fully addressed. They are looking at some changes for this year's Pumpkin Festival Market, as approved by the Council earlier this spring. Villafane Studios will have more say in what vendors are approved, and they will be working closely with Vicki Jasperson to vet vendors and to look at different ways to do the set-ups. The Vendor Market will be more spread out so it doesn't look like a "tent village" going down Ho Hum Road. Perhaps local vendors can be in the Gardens during the weekdays if they desire an extended presence.
There being no more questions or comments, Mayor Les Peterson called for a motion to approve the preliminary budget. The Council approved the motion 6-1, with Councilman Gene Orrico opposed. Mayor Peterson expressed surprise. "OK. You sat through 3 meetings and were in agreement, and now are opposed. Fine."
https://vimeo.com/335389763
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.