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Council readies budget for final steps

Posted 4/28/15

Each spring as the weather warms it is time for the Town Council to discuss its annual budget, and along with that the heated discussion over town funding for “community service …

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Council readies budget for final steps

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Each spring as the weather warms it is time for the Town Council to discuss its annual budget, and along with that the heated discussion over town funding for “community service contracts.”

While not as boisterous as some past debates, there were still questions about whether these agreements should be funded, reduced or eliminated.

There are five such contracts with independent groups or agencies that provide services to the town or citizens.

The town has allocated some funding for these services for a number of years. As money has gotten tight through the recession the debate over scarce resources has focused on these contracts.

The five agencies came into the budget discussions with requests totaling $166,916.

Town Manager Ken Buchanan cut about $10,000 off that total in his recommendation and the council cut another 10 percent, with the exception of the Extended Hands Food Bank, which was not cut further, leaving $144,724 in the budget for the groups.

As the proposed budget moves to tentative approval in early May, the groups are allocated as follows: Boys & Girls Club, $46,080; Food Bank, $24,200; Fountain Hills Theater, $56,894; JumpStartBiz incubator, $4,050; and Sheriff’s Posse, $13,500.

Over the years providing funds for the theater group has always been the most controversial, and this year was no different.

Councilman Alan Magazine, considering his first budget as a council member, provided a laity of priorities that should be ahead of the contracts, particularly street maintenance.

“Because funding of the theater has been so controversial before I joined the council, I’ve given this year’s funding level considerable thought,” Magazine said.

“…My position has absolutely nothing to do with what has happened in the past or with personalities and positions that have preceded me on the council. I would like to think I am carefully reviewing the facts and coming to a considered opinion.

“We can bury our heads in the sand or we can look at our financial situation squarely. And let me say that I admire how previous councils and our town manager have handled our finances. We will always have a balanced budget, but at what cost?

“If this were a household budget we wouldn’t be planning a costly vacation or a new car. The time has come to re-examine promises made in the past. We can no longer afford some of what we have supported in past years.

“I cannot in good conscience support the full amount recommended in the budget for the theater.”

Councilman Henry Leger, who has been through this same fray a number of times, defended the funding for the community partners, particularly the theater.

“We certainly need to be frugal,” Leger said. “But cutting this is not going to make a difference and we would be ‘penny wise and pound foolish.’ I value that which some of our partners bring to the table.”

Leger cited the growth of the economic development and tourism departments and said he does not know yet what the return will be.

“I do know that the Fountain Hills Theater adds value, brings people into the community on a regular basis. We need to stop trying to balance the budget on the backs of our partners.”

“How do we tell people we have a deficit problem and still fund the things that we fund,” Magazine responded. “I’m not singling out the theater.”

Vice Mayor Dennis Brown said he believes that Magazine is being overly pessimistic.

“During this ‘depression’ construction in this town almost shut down,” Brown said. “But right now what I am seeing is encouraging.

“We have managed through this budget for eight years of difficult times, we are ready to experience new growth. I’m very encouraged by the prospect of new growth.

“We are struggling, but we are going to come out of this.

“The theater attracts a lot of people here every weekend.”

Councilwoman Cassie Hansen also supported the agreements.

“The theater is one group that stands out with a proven record of bringing people here from out-of-town,” Hansen said.

“The other partners serve a different purpose. The theater is ongoing month after month as a benefit to the town.”

Magazine said he does not believe a reduction in town support would cause the theater to shut down.

It was Councilman Nick DePorter who made the motion for the across-the-board 10 percent cut to the service contracts. The vote to approve that motion was unanimous.

Other highlights

The draft budget proposal had removed funding for the Movies in the Park and Music Festival events totaling $13,250.

That money was restored at the urging of Mayor Linda Kavanagh. She cited those activities, plus Ballet Under the Stars, as the only free events for people to attend at Fountain Park.

The Tourism Department had filed a grant application for the Republic Rewards grant and is one of five proposals to be voted on by citizens through their Republic Rewards Recycling program.

The funding for these events will remain on the ballot for residents to consider.

If they are awarded the Republic grant for $10,000, it would be used to add a movie presentation and promotional activities for the Music Festival and Ballet under the Stars.

Town Manager Ken Buchanan said there had been six new positions requested during the budget process, however, none were budgeted.

A 2.5 percent wage adjustment has been budgeted for employees who can receive one within the existing salary range for their positions.

There are also a number of department requests for projects, repairs, repairs and activities that have been rejected. The Facilities Replacement Fund will not receive a full allocation this budget year.

Buchanan said the town is facing cost increases it cannot control including public safety contracts, which he still considers to be bargains. There is also a 4 percent hike in electricity rates, and 3.6 percent hike in water rates.

Buchanan said the town’s cost of operation per capita, at 61 cents, is the lowest in the Valley. He and council members expressed their appreciation to staff for their effort in allowing that cost to remain so low.

At the end of the three- hour budget discussion the staff will be preparing to present a $37.9 million budget to the council for tentative approval at the May 7 Town Council meeting.

There will be a public hearing associated with that meeting.

Once the tentative budget is approved it cannot be increased prior to consideration of a final budget now scheduled for Thursday, June 4.

The new fiscal year begins July 1.

Each spring as the weather warms it is time for the Town Council to discuss its annual budget, and along with that the heated discussion over town funding for “community service contracts.”

While not as boisterous as some past debates, there were still questions about whether these agreements should be funded, reduced or eliminated.

There are five such contracts with independent groups or agencies that provide services to the town or citizens.

The town has allocated some funding for these services for a number of years. As money has gotten tight through the recession the debate over scarce resources has focused on these contracts.

The five agencies came into the budget discussions with requests totaling $166,916.

Town Manager Ken Buchanan cut about $10,000 off that total in his recommendation and the council cut another 10 percent, with the exception of the Extended Hands Food Bank, which was not cut further, leaving $144,724 in the budget for the groups.

As the proposed budget moves to tentative approval in early May, the groups are allocated as follows: Boys & Girls Club, $46,080; Food Bank, $24,200; Fountain Hills Theater, $56,894; JumpStartBiz incubator, $4,050; and Sheriff’s Posse, $13,500.

Over the years providing funds for the theater group has always been the most controversial, and this year was no different.

Councilman Alan Magazine, considering his first budget as a council member, provided a laity of priorities that should be ahead of the contracts, particularly street maintenance.

“Because funding of the theater has been so controversial before I joined the council, I’ve given this year’s funding level considerable thought,” Magazine said.

“…My position has absolutely nothing to do with what has happened in the past or with personalities and positions that have preceded me on the council. I would like to think I am carefully reviewing the facts and coming to a considered opinion.

“We can bury our heads in the sand or we can look at our financial situation squarely. And let me say that I admire how previous councils and our town manager have handled our finances. We will always have a balanced budget, but at what cost?

“If this were a household budget we wouldn’t be planning a costly vacation or a new car. The time has come to re-examine promises made in the past. We can no longer afford some of what we have supported in past years.

“I cannot in good conscience support the full amount recommended in the budget for the theater.”

Councilman Henry Leger, who has been through this same fray a number of times, defended the funding for the community partners, particularly the theater.

“We certainly need to be frugal,” Leger said. “But cutting this is not going to make a difference and we would be ‘penny wise and pound foolish.’ I value that which some of our partners bring to the table.”

Leger cited the growth of the economic development and tourism departments and said he does not know yet what the return will be.

“I do know that the Fountain Hills Theater adds value, brings people into the community on a regular basis. We need to stop trying to balance the budget on the backs of our partners.”

“How do we tell people we have a deficit problem and still fund the things that we fund,” Magazine responded. “I’m not singling out the theater.”

Vice Mayor Dennis Brown said he believes that Magazine is being overly pessimistic.

“During this ‘depression’ construction in this town almost shut down,” Brown said. “But right now what I am seeing is encouraging.

“We have managed through this budget for eight years of difficult times, we are ready to experience new growth. I’m very encouraged by the prospect of new growth.

“We are struggling, but we are going to come out of this.

“The theater attracts a lot of people here every weekend.”

Councilwoman Cassie Hansen also supported the agreements.

“The theater is one group that stands out with a proven record of bringing people here from out-of-town,” Hansen said.

“The other partners serve a different purpose. The theater is ongoing month after month as a benefit to the town.”

Magazine said he does not believe a reduction in town support would cause the theater to shut down.

It was Councilman Nick DePorter who made the motion for the across-the-board 10 percent cut to the service contracts. The vote to approve that motion was unanimous.

Other highlights

The draft budget proposal had removed funding for the Movies in the Park and Music Festival events totaling $13,250.

That money was restored at the urging of Mayor Linda Kavanagh. She cited those activities, plus Ballet Under the Stars, as the only free events for people to attend at Fountain Park.

The Tourism Department had filed a grant application for the Republic Rewards grant and is one of five proposals to be voted on by citizens through their Republic Rewards Recycling program.

The funding for these events will remain on the ballot for residents to consider.

If they are awarded the Republic grant for $10,000, it would be used to add a movie presentation and promotional activities for the Music Festival and Ballet under the Stars.

Town Manager Ken Buchanan said there had been six new positions requested during the budget process, however, none were budgeted.

A 2.5 percent wage adjustment has been budgeted for employees who can receive one within the existing salary range for their positions.

There are also a number of department requests for projects, repairs, repairs and activities that have been rejected. The Facilities Replacement Fund will not receive a full allocation this budget year.

Buchanan said the town is facing cost increases it cannot control including public safety contracts, which he still considers to be bargains. There is also a 4 percent hike in electricity rates, and 3.6 percent hike in water rates.

Buchanan said the town’s cost of operation per capita, at 61 cents, is the lowest in the Valley. He and council members expressed their appreciation to staff for their effort in allowing that cost to remain so low.

At the end of the three- hour budget discussion the staff will be preparing to present a $37.9 million budget to the council for tentative approval at the May 7 Town Council meeting.

There will be a public hearing associated with that meeting.

Once the tentative budget is approved it cannot be increased prior to consideration of a final budget now scheduled for Thursday, June 4.

The new fiscal year begins July 1.