|
Even though voters are being asked to decide the fate of a property tax in May, the mayoral and Town Council election next week has been turned into a “tax or cut?” type of campaign.
Likely the common question found at most, if not all, candidate forums since the New Year has centered on town finances and the dreaded “tax” word.
Apparently nothing drums up emotions and anti-apathy feelings like beating on a property tax drum.
It appears as if those who don’t favor the property tax at this time have gone out of their way to label their opponents as “tax and spend” candidates in hopes of rousing more votes.
Of the eight people running for office, only two are incumbents – Councilmen Keith McMahan and Jay Schlum – who voted to place the property tax question on the late spring ballot.
Schlum, who seeks the mayor’s seat after a four-year stint on the council, voted in favor of the measure, while McMahan was the sole dissenting vote, a move he brings up at every opportunity.
Schlum’s opponent, Jerry Miles, who previously served a single two-year term as Fountain Hills mayor, constantly castigates the property tax issue and its proponents’ arguments at forums.
Meanwhile, of the remaining council candidates, two favor the property tax – Kathie Kelly and Mike Tyler – and the remaining three oppose it (Lina Bellenir, Dennis Contino and Cassie Hansen).
When asked at a recent forum hosted by the Licensed Contractors Association of Fountain Hills what the two biggest challenges are the next two years, the mayoral candidates quickly distanced themselves from each other.
“The number one challenge is the Ellman development,” Schlum said. “It’s a good thing we annexed that state trust land. We need to insure it fits into Fountain Hills. I’m encouraged so far with the planning that’s gone on.”
Miles retorted that “town finances” was the top topic.
“I’m not sure where we are,” he said. “I hear we have a crisis, then I hear we don’t have a problem.
“And now we’re being asked to adopt a property tax. No one has told me they are looking forward to a property tax.
“I guarantee you it won’t pass.”
Although Miles said “maybe in the future” the town will need a property tax, Schlum said the issue was identified by numerous citizens several years ago during the Strategic Plan process.
“Once the shortfall was identified years ago, citizens came together to explore the alternatives,” Schlum said.
“They wanted us to address it now. It basically comes down to pay me now or pay me more later. We need to facilitate our own financial structure.”
Among the council candidates and what they identified as the biggest challenges the next four years, McMahan said it was to encourage buildout and boost business and economic expansion.
Bellenir said the top issues were the Ellman property, the property tax, downtown development and the current search for a new town manager.
“They haven’t told you what they’re going to do with the property tax money,” Bellenir said, even though the current council recently designated it for public safety services, acknowledging it is not a binding vote.
“Achieving financial stability” was Tyler’s answer, saying the town’s current budget situation and how it obtains revenues was “not stable or equitable.”
“We need $12 million over the next five years just for street improvements,” Tyler said.
“We have significant cost issues coming up. Just tightening our belts won’t solve the problem. We need a series of solutions. We need a property tax in place of a sales tax. At some point you will have to do that.”
Kelly said the big issues for her were creating a better town identity and achieving financial stability.
“What is wrong with having some reserves?” she asked.
Kelly added the town’s identity will be defined, in part, by how the Ellman property is developed and how the downtown core is built.
Contino identified downtown and town finances as the key challenges the next four years.
“We need a theme for the downtown,” he said. “And let’s tighten our belts and do it.”
Hansen said finances are a big issue along with “trust” in the Town Council and town staff.
“Citizens want proof our town is doing the same thing as other cities,” she said.
When pressed for alternatives to the property tax to deal with long-term financial shortfalls, most candidates said “cut back services.”
“We would have to cut back services and cut back on quality-of-life issues,” Schlum said.
“We are projected to have a $99 million gap by 2025….Look at what Mesa is doing. They don’t have a property tax, and they are making big cutbacks.”
Schlum said implementing a property tax is only a “piece of the solution…we need a strong economic development component, too.”
Miles said, “We will have to pull in our belt for a while. There has been excessive spending the past few years.”
Miles cited fees paid to consultants and excessive legal fees as two major costs incurred by the town.
Tyler said if citizens want services cut, “that’s what will happen…it would affect parks, streets, seniors, youths, everybody.”
Bellenir said, “We need faith in our businesses. Let entrepreneurship flourish. Do we really need a sales tax auditor for our businesses?
“Property taxes haven’t solved issues anywhere. Government only wants to pick your pocket each time.”
McMahan noted, “There are a lot of things we can do. We could raise the allowable footprint on large lots, for example. That would bring in more money. A property tax would only burden this town.”
Kelly said alternatives would be boosting the business community, increasing tourism and other points raised by the candidates.
“In the end, I don’t know if we can completely alleviate the shortfall,” she said. “I don’t think anyone wants a property tax, but how much do you cut in services?”
Contino said the town needs to improve such things as checking the vendors at art fairs to make sure they pay sales taxes, bring tour buses back to town and have more local events to boost tourism.
“Don’t jab everything down the throats of businesses,” he said.
Hansen, who was the Town of Fountain Hills’ first town clerk and was employed for 13 years before being terminated by then Town Manager Tim Pickering as part of budget cuts, said a “municipal mentality” often develops among staff members.
“It’s other people’s money, and it’s easier to spend,” she said.
“We need to start with zero-based budgeting and see what is vital. I’m not talking cutting services at all. We can achieve many of the quality-of-life things through the use of volunteers.”
|