Carefree Truth

Issue #242, May 1, 2013

 

 

 

 

Mayor David Schwan explained that the first topic in the budget workshop would be the 2013/14 large budget items and policy overview, then the discussion would progress to details, after which public input would be heard.  This is the standard format for workshops.  If the Council agreed, the bottom line would be accepted at the May Council meeting and the formal budget would be adopted at the June Council meeting.

 

 

 

Gary Neiss began the presentation with a slide which contained proposed projects, estimated costs, and funding mechanisms, saying that all had been analyzed holistically; nothing is done in isolation.

 

 

 

The first item was Street Repair and Maintenance, focusing on the remaining streets not done during this fiscal year.  The estimated cost is $1,100,000, which would be derived from various funding sources.  The first is HURF, which is financed through gasoline and utility taxes.  The second is LTAF, financed through Powerball profits.  LTAF was discontinued in 2010.  Though it is being reinstated, to what extent is a current unknown.  These funds come from the State and are earmarked for street maintenance and transportation.  $250,000 will come from the General Fund.  Since Carefree is a "pay as you go" town, the balance will come from the Reserve Fund. 

 

 

 

The worst case scenario is $750,000 from reserves, depending on the LTAF contribution and on sales tax revenue for the coming fiscal year, both of which have been estimated very conservatively.  Due to conservative budgeting, the estimate to be taken from reserves for the street project this fiscal year was $800,000, but only $400,000 was actually needed.  The Long Range Financial Committee advised that Carefree should keep at least $2,500,000 in unrestricted reserves.  As of March 31st, the latest data available, the unrestricted reserve fund contained $5,027,000, with an additional $274,358 in restricted funds. The Town has no debt.

 

 

 

Next, Town Center improvements involving infrastructure owned by the Town were addressed.  The strategic investments proposed were not "shooting from the hip".  Local sales tax accounts for around half of the revenue, and these projects are aimed at drawing a diversified demographic to sustain that revenue stream critical to driving the economic engine.  Carefree is working to bring in additional businesses to expand the sales tax base.  An attractive and lively town center is a positive commercial draw. 

 

 

 

Restoration of the sundial fountain, with the addition of a splash pad in that area to create synergy within the Gardens, was the first project discussed.  Splash pads have been utilized successfully in the private sector to attract people to shopping centers.  Next on the list was increased shade structures in the amphitheater, the nucleus of the Gardens, which would allow events to be held there during the hotter times of the year.  Also under consideration were amphitheater stage sound and lighting systems, neither of which are present now.  The third item was a Veteran's Memorial in one section of the Gardens, sponsored by Councilman Mike Farrar, who will be soliciting private donations for its construction by selling paving bricks with the names of the donors.

 

 

 

Funding for these capital improvement projects could come from corporate partners, individual donors, and Native American grants given to local communities from the Gaming Funds.  Some may require matching funds from the Town.  The total estimated cost of these projects is $850,000.

 

 

 

Mayor Schwan explained that municipal budgets face legal constraints not found in the corporate world.  Expenses must be anticipated in advance.  This translates into an inability for cities and towns to spend money, should it come in, if the items are not in that fiscal year budget, or if the anticipated budgeted revenue is less than the actual revenue.  Expenses are set at the budget threshold. 

 

 

 

In order to anticipate the revenue stream, the Town takes into account existing trends, and requests numbers from the State regarding occurrences in the broader local marketplaces.  The categories of sales tax include restaurants and bars, retail, accommodations, construction, and "others".  The category "others" refers to that sales tax revenue which is not public record due to privacy laws governing individual tax returns.  It is anticipated that the revenue will remain stable, which sets the bottom line.

 

 

 

Councilman Marty Saltzman reiterated that if we don't include it and the money does come in, we can't spend it.  Mayor Schwan confirmed that, and added that if the money is budgeted but doesn't come in, it won't be spent.  Councilman John Crane asked for confirmation that before any big project is begun, it comes before the Council in public meetings.  Mr. Neiss assured him that any expense over $15,000 goes to the Council for public vetting, accompanied by a staff report explaining the project, the process for estimating the cost, and the bidding documents, all of which are discussed at public meetings.   

https://www.youtube.com/watch?v=lBmYS-B6DaU

 

 

Lyn Hitchon

 

 

 

Prepared by Carefree Truth

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