CAREFREE TRUTH
Carefree Truth #486
Carefree Truth
Issue #486, May 16, 2016
At the beginning of the 2nd budget workshop on 4/19, former Councilman Greg Gardner requested that money be included in the 2016/17 Fiscal Year budget to be donated to the Desert Foothills Library for planned capital improvements. He reminded the Council that Carefree has historically supported and contributed to many local projects. Mayor Les Peterson replied that unfortunately money is much tighter now, Carefree has many requirements as well, and the Town must concentrate on those needs first.
As the 3rd and final budget workshop began, Mayor Peterson announced that Gary Neiss was absent due to a stomach flu. Councilman Mike Farrar apologized for missing the first 2 budget workshops, explaining that a new job kept him from the 1st meeting, and a glitch in transferring his calendar to a new computer resulted in his missing several meetings, including the 2nd budget meeting. He met with Mr. Neiss and Vice Mayor John Crane to catch up, and he watched the Carefree Truth videos of the workshops, so he felt well informed despite his absences.
Mr. Farrar agreed with implementing some cost recovery models. He suggested paying some of the local non profit organizations rather than hiring an outside company to help with events that involve gate fees, like the Carefree/Cave Creek Chamber of Commerce helps with the Thunderbird Artists shows. Mayor Peterson felt the non profits might be utilized as supplements, but said volunteers are not always available.
Mr. Farrar noted that Marketing comprised 10% of the budget and asked if that was is consistent with other communities. Town Clerk Kandace French replied that there is a lot of variation, but it is in line with, or slightly lower than, other towns of Carefree's per capita and size. It is also dictated by what in each area is marketable. The Mayor informed the Council that the Town had received a letter from APS stating it would up it's annual donation from $6000 to $10,000, to be applied to the Pumpkin and Christmas Festivals, and Gina Kaegi is working on raising money as well. None of these are factored into the revenue side of the budget, as no money is in hand yet. He also pointed out that the Town received over $1 million in free media support during the 2015/16 Fiscal Year signature Town sponsored Festivals. Councilwoman Melissa Price said consultant Steve Betts said more money needed to be put into marketing.
Vice Mayor Crane said ticketing and sponsorships were discussed, and asked if these were reflected in the projected revenue or if they would all just be upsides. Town accountant Jim Keen responded that they would all be upsides. He bases the budget on the highest potential costs. Ms. Price reminded the Council that there would be costs for fencing if alcohol is served at events. Mr. Keen replied that income would be needed to defray those costs. Mayor Peterson said there was more time this year to solicit major sponsors for the Pumpkin Festival. Vice Mayor Crane felt asking non profit volunteers to work the 2 week long Pumpkin Festival was not feasible, but perhaps they could help on weekends. Mr. Farrar suggested reducing the gate responsibilities by using an online ticketing service such as Brown Ticket, a service that would be free to the Town. Brown Ticket charges a $2.50 surcharge to the ticket buyers, who feel the convenience is well worth the fee, and the popular service has a huge reach.
Councilman Glenn Miller questioned a $150,000 line item. Mr. Keen explained it was for additional landscaping in the medians and around the new gateways. Mr. Farrar asked if funds were included for secondary gateways. Mayor Peterson said, "Let's wait to see if they are needed."
Mr. Miller asked who would be responsible for trash collection at events. He was told the event promoters are responsible from providing trash cans and trash removal at their events, and the Town's contracted cleaning service is responsible for it at Town events. Mr. Farrar noted there were no major street projects included, and Mr. Keen confirmed that. Any money for street maintenance and repair was placed under the Public Works Department budget.
Vice Mayor Crane brought up the Gardens Seminars, asking if the Town expects to recoup the $3000 in the budget to help fund them, with stipulations that include a cost recovery model. Mrs. French said the $5.00 cost per person, assuming the previous attendance of 65-70 people holds, will cover the cost of their speakers. With the room used for Town meetings no longer available at 100 Easy Street, the Seminars will need to pay rent at their new location, which was yet to be determined, making that cost and the cost of audio/visual equipment an unknown quantity. The Vice Mayor suggested that they seek sponsors. Mrs. French said efforts to collect the $5 head charge were inconsistent in the past. $5 donations were requested but no one was at the door to collect them. Total donations normally totaled only $50-$60. At times, when it was better organized, every person donated at least $5 and they were ahead. The $3000 is being viewed as a safety net. The money is expected to be recouped. Mrs. French felt the Seminars are sufficiently popular that they could be self supporting with some effort. Mr. Keen said there has historically been a specific amount budgeted for the Christmas Festival. Jo Gemmill and her team solicit donations to cover the balance. Money is spent according to those donations. If they don't come as expected, items are cut from the Festival. This could also apply to the Gardens Seminars.
At the May 3rd regular Council meeting, Mr. Neiss reported that the budget process was 80% completed. The workshops, summary sheet, and the line item budget are finished. The next step is advertising the Auditor General's form. In Carefree's case, the requirement is simpler than that of most surrounding communities. Because Carefree does not assess a local property tax, fewer schedules are required to be advertised.
Although line items may be moved between departments, once the bottom line is set it can not be exceeded. The preliminary budget and the bottom line of $6,213,270 were unanimously adopted. A special meeting will be held immediately before the June 7th Council meeting to adopt the final budget.
Lyn Hitchon
Prepared by Carefree Truth
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