Carefree Truth

Issue #389, April 6 , 2015

 

 

 

A preliminary budget meeting was held on March 17th to educate the two newly appointed Council members on the budget process, and to give the Council an overview of the Fiscal Year (FY) 2015/16 Budget, which runs from July 1st through June 30th of each cycle.  Gary Neiss explained that Carefree was incorporated in 1984 in order to achieve local control of land use and growth decisions.  Once incorporated, a municipality is legally required to generate a General Plan and Zoning Ordinances.  Staff members manage the day-to-day operations, and enforce the required rules and regulations.

 

 

 

Town staff departments include the following.  Community Development employs 4 people.  That is comprised of the Building Department, Planning and Zoning, Engineering, and Code Enforcement.  Public Works employs 4 people and is responsible for Street Maintenance and Repair, Public Facilities Management (painting and repairs), and Town sponsored event (for instance, the Christmas Festival) set up and clean up.  The Municipal Court employs 3 people.  Administration/Resource Management, which employs 5 people, handles Finances, Risk, Organization, Public Records, and Intergovernmental issues.  Fire and Police protection are provided contractually by Rural/Metro and the Maricopa County Sheriff's Department. 

 

 

 

When examining trends in the local sales tax it was found that during the 5 year average two thirds were derived from a combination of retail, construction, and utilities.  The balance came from accommodations, bars, restaurants, and commercial leases.  Since construction income will fall in the future as build-out approaches, the focus will be on diversification, with possible enhancements in accommodations and restaurant opportunities to strengthen the retail base.  The Town marketing program will also be further developed. 

 

 

 

Retail revenue has nearly doubled, with construction and utilities revenue remaining fairly consistent.  The largest growth potential comes from restaurants and bars, although there is additional construction tax revenue expected this year due to new home construction projects.  HURF (restricted to use on streets) is expected to increase in FY 2015/16.  Other State Shared Revenue is expected to remain consistent.  

 

 

Funds are used approximately as follows.  $1.8 million (34%) goes to fire and police contracts.  $1.3 million (25%) goes to salaries and benefits.  $2.1 million (41%) is invested in Town assets and operations.  Potentially, $10,000 is budgeted for the Mayor and Council, who are volunteers but are reimbursed for educational forums and expenses, $87,000 for the Town Clerk, including office supplies, $115,000 for Administration, $670,000 for Public Works, $175,00 for the Court, $70,000 for the Town Attorney, $125,000 for Risk Management, $60,000 for Planning and Zoning, $20,000 for Building Safety, $5,000 for Code Enforcement, $75,000 for Engineering, $200,000 for Town Marketing, $40,000 for Public Safety, $40,000 for Contingency, and $245,000 for the WIFA loan. 

 

https://vimeo.com/user18676056/review/123951460/d2ef4d55e3

 

 

 

Reserves as of February 1st stand at $2.5 million in the "Rainy Day" fund and $3.123 million in the Capital Improvement fund, bringing the total to $5.632 million.  Funds have historically been used to invest in infrastructure such as water, fire, streets, administrative offices, and open space.  Future infrastructure investments could include economic development projects and Council chambers.  The lease on the current Council chamber space expires in July of 2016. The options exist to extend the lease for an additional 5 years, renegotiate the lease for 1-5 years, or vacate and hold meetings in a temporary location.

 

 

 

Additional workshops will be held in April to fine tune the budget.  A line item budget will be prepared, Auditor General Forms will be prepared and advertised, a preliminary budget will be adopted in May, and a final budget will be adopted in June.  Town Accountant Jim Keen commented that there is a lot for the new Council members to learn in a short time, but that he is willing to sit down with them at any time to answer questions they might have about the budgeting process. 

 

 

 

Mr. Keen's budgets have always come within 1-2% on both the top and the bottom lines.  They are very conservative.  Mr. Neiss said Carefree is a small town and the budget is straightforward.  Carefree has a history of balanced budgets.  He explained further that the bottom line is locked in once it is approved, but that money can be moved between departments during the fiscal year, with Council approval.

 

https://vimeo.com/user18676056/review/123994045/bba3a443a1

 

 

 

 

Lyn Hitchon

 

 

 

Prepared by Carefree Truth

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