Carefree Truth

                                                 Issue #483, May 2, 2016

 

 

 

During the Fiscal Year (FY) 2016/17 1st Budget Workshop, held on April 12, Gary Neiss explained that the FY runs from July 1st-June 30th.  2 additional workshops were scheduled for the following 2 Tuesdays.  The adoption of the preliminary budget will take place on May 3rd, and the final budget will be adopted on June 7th during the regular Council meetings. 

 

 

 

Municipal government is responsible for quality of life issues.  Carefree was incorporated because the citizens wanted local control, with small, fiscally conservative government utilizing local sales tax revenue rather than local property tax.  Carefree has one of the smallest staffs of any town its size in Arizona.  There are 16 efficient, well trained full time employees on Carefree's staff.  4 work in Community Development (Planning & Zoning), 4 in Public Works, 3 in the Court, and 5 in Administrative/Resource Management.  Fire Protection is provided by Rural/Metro, and Police Protection is provided by Maricopa County Sheriff's Office (MCSO).  R/M and MCSO are contracted.

 

 

 

Income flows from 2 sources.  State Shared Revenue sources include State income tax, State sales tax, Highway User Revenue Fund (HURF), and Vehicle License Tax (VLT).  Local revenue sources include sales tax and local fees.  Local fees are charged for business licenses/vendor permits, utility franchises, Court services, and building permits.  Carefree does not qualify for development fees because the building is all in-fill, rather than expansion, and no local property taxes are levied.  

 

 

 

The median Full Cash Value of residences in Carefree is $535,000.  Local property tax for a home of equal value in Scottsdale is $3,175, and in Phoenix it is $2,925.  These taxes are in addition to the County and School District taxes levied on Carefree, Scottsdale and Phoenix.  The local property tax in Carefree is $0.00.  Carefree pays for town-wide Fire Protection, which averaged $1,000 per household when it was paid for via individual subscription, actually putting money into the pockets of Carefree citizens.  

 

 

 

Projected revenue for FY 2016/17 is $5.7 million.  $3.1 million (54%) will be derived from local sales tax, $1.5 million (26%)from local fees, and $1.1 million (20%) from State Shared Revenue.  In order to generate this amount from local sales tax, every resident of Carefree would have to spend $50,000 a year with Carefree businesses, which is unrealistic.  This is why it is vital to attract visitors from beyond Carefree's borders into town to shop and dine and vacation.  

 

 

 

The local trends, based on the last 6 years, have continued to show improvements in construction and retail, with restaurants slightly down.  The Carefree Resort has been busy this season, so accommodations and rentals way are up.  State sales tax revenues are increasing to pre-recession levels, and State income tax revenues are increasing as the economy improves.  HURF and VLT remain consistent.  

 

 

 

The Town reserves are positive.  There is $2.5 million in the Rainy Day Fund, and 2.5 million in the Capital Improvement Fund, both of which are unrestricted.  There has consistently been in excess of $5 million total in Carefree's reserves over the past 12 years.  During that time, the Town has invested in water, fire protection, administrative offices, open space, street maintenance, and Town Center improvements.  The policy has been to save up, then spend.  Each year, less has been spent than was budgeted.

 

https://vimeo.com/163935010 

 

 

 

Lyn Hitchon 

 

 

 

Prepared by Carefree Truth

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