To:                   Citizens of Carefree

 

Subject:            State of Our Town

 

Date:                January 4, 2010

 

Carefree discontinued its monthly newsletter to reduce expenses.  It seems appropriate to use the beginning of 2010 to bring everyone up-to-date on the “State of Our Town” with this simple letter.

 

Financial State of the Town

 

I am pleased to tell you that Carefree is in a solid and very favorable financial condition.  To maintain this good financial situation it is my goal to balance current expenses to current income.

 

Carefree manages its finances by comparing actual income and expenses to the budget.  Our operating budget for 2009-2010 shows planned operating expenses and operating income balanced at $5,100,000. 

Sales tax income is budgeted at $3,000,000.  

 

As of this date sales tax income has been below budget and may be below expectations at the end of the fiscal year.  The Town Staff and I have implemented reductions in expenses to meet this revenue shortfall.  For example, Rural Metro has rescinded its 4% rate increase for 2009-2010 effective in December and the Town’s legal firm has agreed to reduce its billings.  In the next weeks we expect to identify additional savings in the areas of Town Marketing and the operation of the Municipal Court.

 

The conservative financial policies of previous Town Councils have provided Carefree with a financial cushion.  As of December 29, 2009, Carefree has $5,258,000 cash reserves in the bank of which $4,216,000 is unrestricted reserve.  These funds are available should any emergencies arise.

 

In sum, Carefree is affected by the national economic situation and Carefree is taking appropriate steps to reduce its expenses.  Thus far we have been able to reduce expenses and maintain services to our citizens.  The dedication and hard work of the Town’s staff make these services available to you.

 

2010-2011 Budget

 

We will begin working on the 2010-2011 budget in a few weeks. 

 

The Arizona League of Cities and Towns has advised us that funds from Arizona to Carefree will be reduced next year.  Thus, the 2010-2011 budget will be at least as challenging as our current budget.

 

The best way you can help Carefree is to “buy local’ and support Carefree merchants.  Every town is competing for your tax dollars.  By spending locally you will help Carefree preserve its services to you.

American Recovery and Reinvestment Act (ARRA)

 

Carefree was allocated $588,000 from the ARRA funds available to Arizona.  The use of these funds in Carefree is subject to the requirements of the ARRA, the State of Arizona, and the Maricopa Association of Governments.

 

Carefree Town Council voted six in favor and Councilman Coady opposed to accept these funds and use them for two projects:

 

1.       Scheduled major repair work to Cave Creek Road from Scopa Trail to Pima Road

2.       A pedestrian cross walk across Tom Darlington at Ridgeview Place

 

These projects should begin early in the second quarter of 2010.  By using money from ARRA Carefree will avoid using our own tax dollars in future fiscal years for these two projects.

 

Business Climate in Carefree

 

Carefree has initiated informal meetings with our merchants to elicit their ideas about how we can improve Carefree’s economic base.  Carefree will continue to host these meetings and listen to our merchants’ suggestions about how Carefree can improve its economic base.

 

At the January 5th meeting Carefree Town Council will consider changes to our Zoning Ordinance concerning commercial signage.  These signage changes are intended to give Carefree merchants innovative ways to draw people to their business and, at the same time, preserve the unique character of Carefree.  The Planning and Zoning Commission worked on these changes for a number of weeks and unanimously recommends that Town Council adopt the proposed changes.

 

The Carefree Resort is no longer in bankruptcy.  John Schilling, the General Manager, advises me that the owners of the Carefree Resort intend to invest significant funds into the property.  The owners plan to make the Carefree Resort a unique destination in the Sonoran Desert that will be distinct from other resorts in the area.

 

Open Door

 

My door is always open to you.  I’m usually in Town Hall beginning at 8:00am. You can contact me at Town Hall at 480 488-3686, via email at mayor@carefree.org, or on my mobile phone at 602 722-6930.  The Town Staff and I look forward to your questions or suggestions as Carefree begins 2010.

 

May 2010 be a good year for everyone!

 

Sincerely,

 

 

 

Mayor David Schwan

Town of Carefree