Jay Schlum
For years our community has been aware of the revenue shortfall challenges on our horizon. Town Council was asked by our residents to come up with a plan to address those challenges sooner rather than later. 

The Strategic Planning Advisory Commission tasked a blue ribbon sub-committee to dive deep into the revenue shortfall. These talented resident volunteers openly invited all residents to participate in uncovering intelligent sustainable solutions. The sub-committee presented a plan to Council. A primary property tax is a significant ingredient in the revenue solutions recommendations.  I respectfully received, deliberated and Council determined that the residents should consider for themselves the property tax issue.

Most of the current candidates have also validated the need for a property tax, but say we should wait till next year. The matter of should it be now or next year is clearly disingenuous; remember it is election season.

We need visionary leadership adequately informing our citizens of what our future looks like. Residents deserve straight talk in order to make informed decisions. Attempts to make fairness an issue of “Us vs. Them” also distorts the issue. The statement of fairness is this: are residents “justified” in expecting that essential public safety costs be shared by all property owners? The rest is political rhetoric.

Take a look at what happens without a primary property tax and look no further than Mesa. Huge cuts in parks, senior services, arts, and community events. Now they’ll also cut back on essential public safety costs like police service. The police chief warns of slower response times and bare-bones coverage. Recent headlines read: “West Mesa is showing signs of deterioration.” “Mesa’s economic future is unsure.”

If a property tax is established I commit to using the property tax to fund public safety and will also support lowering sales taxes.

Jerry Miles
I cannot conceive of a worse time to ask our voters to approve a new tax.  The stock market is down, the housing market is in a slump, interest rates have dropped which reduces income for seniors on a fixed income, and we just approved a property tax increase for our schools.

We are receiving mixed signals regarding the town’s financial situation. The Strategic Planning Advisory Commission says we are facing a serious crisis. Wally Nichols and Jay Schlum say they just want to reallocate the tax burden.

I agree with SPAC that the town is facing serious financial problems, and a property tax would help bail us out. But I don’t believe the tax initiative will pass. So we have to consider other alternatives.

Cutting costs is a good place to start, but it’s not the complete solution. We may have to dip into our reserves for a year or two until the downtown development starts generating sales tax. We can also increase our sales tax revenue by making serious efforts to attract more visitors to our community.

And don’t forget, the economic climate will improve sooner or later. If we really need a property tax, that will be the time to consider it.

Dennis Contino
The most important thing?  How are we spending our money?  Yes, our money.  Not the money of a town mayor, council or staff to spend as they wish.

We have heard that we need additional revenues. We have heard that the budget and current expenses have been trimmed to the point of no more room to reduce spending. 

In the same breath, we have been asked to approve a property tax. Let’s prove a need with clear facts. 

A summary was published by staff for 1007-8, showing $30.8 million in expenditures and revenue of $27 million – in the red. Friday, Feb 1, the announcement was made that we will end this FY in the black due to reduced spending.

We have been asked to approve a staff increase, specifically two sales tax auditors.  How about a hiring freeze? Or a freeze on new, additional positions?

Another important consideration is revenue sources.  Is property tax our only option? The most important thing to consider with a property tax vote?  Facts not smoke.

Cassie Hansen
During these challenging economic times, voters need to assess and balance their current needs with the current needs of the town.

Last November, our citizens bucked the valley trend and supported our school bond issues that will impact tax bills in the fall. If repeal efforts fail, the state’s county equalization tax could return next year adding .39-.43/$100 assessed valuation to our tax bills. Current economic factors are taking a toll on governments large and small. Construction, spending and Wall Street are down while gas, unemployment and foreclosures are up. 

Our mayor has stated that we are not in a financial crisis. We can take the time to monitor municipal spending while putting more positive energy into finding creative solutions that don’t place additional burden on the taxpayers and businesses. The town can and should use these “tight times” to demonstrate due diligence to the citizens, improve public perception and prepare a precise plan as to how future property tax monies would be used.

The economy is cyclical and will recover. We will again have construction revenues with the Ellman project and Adero Canyon. We can be creative without imposing additional tax/fee burdens on our businesses and citizens at this time.  We can trim the budget.

An ASU economist recently said that governments across the board need to learn a lesson – during the flush years, put money away for the tight years rather than spending it. That philosophy should be a town priority.

Kathie Kelly
When considering the primary property tax the first thing I would look at is the long-term economic stability of Fountain Hills and what it will take to maintain the quality of life we now experience. 

A property tax provides a stable revenue stream while sales tax and state shared revenues are volatile, declining in periods of economic downturn. The percentage of state revenues allocated to municipalities is subject to the whims and changes of the legislature. Many attempts, thankfully unsuccessful, have been directed at reducing this percentage, which would increase local financial burdens.

Much of our sales tax revenue is derived from taxes on new construction.  As we approach build out, local tax revenues will decline.

We can make some budget cuts to deal with the short term revenue issues, but prudent planning and fiscal responsibility suggest that developing a stable revenue source now leaves us better prepared for the future. Financial crisis management is risky at best and limits options and opportunities.

Fountain Hills needs a stable financial base and revenue sources that would withstand economic downturns and prevent the necessity of cutting vital services, which has been happening in other local communities, especially those who have eschewed a primary property tax.

Although we always need to look at our budget and reduce expenditures where possible, that is a short term, partial solution. I believe the role of the Town Council is to be forward thinking – to forestall a crisis, not to have to manage one.

I would also be very much in favor of the elimination of the tax on food or a reduction of the sales tax if our fiscal position warranted it.

Keith McMahan
Each voter should consider: Is it needed to support town services and finances at this time? Have all other avenues of town funding been thoroughly researched and steps taken to implement them at this time? Do I wish to encumber myself with an additional tax at this time of economic and political uncertainty at the national, state and local levels?

My answers to questions one and two are no, and that is why I am against a property tax at this time. Question three is up to each individual and I can not speak for them. But for me, as an individual, the answer again is no.

Michael Tyler
The property tax was proposed to the council by a group of volunteer citizens who have studied the issue of achieving financial stability for the town, for more than six months. This issue was identified by citizens as being of prime importance during the 2005 Strategic Plan.

The property tax was one of a series of recommendations that included other revenue raising measures as well as prudent cost management. Their recommendation was driven by three key issues:

• Our current revenue sources (primarily sales tax and state shared revenues are volatile and outside our control.
• The team looked for a method of raising taxes that shared the burden equally over all the town’s constituents.
• The town currently does not have enough revenue to meet its expenditure needs and it will require a combination of cost reduction and increasing revenue to provide for all our needs.

The most important thing to consider is whether we want to continue to see Fountain Hills as one of the premier communities in the Valley and whether we want to continue to enjoy the lifestyle, amenities and property values we have today. Without a property tax these will all be in jeopardy.

Lina Bellenir
In assessing the value of a tax it is important to understand its total impact, not only bringing in revenues but its drag on expanding an economy.

Each of us should consider the impact on current property owners, as well as those who are looking to invest and develop in our town. And most importantly we must consider how fiscally responsible our elected officials are in using restraint in spending.

Governing our community presents tremendous challenges. Today, the challenges are as great or greater than ever before. Businesses come in    search of markets and stay when the effort proves profitable.

People follow employment opportunities and they look at the attributes of the place where they might live, work and play. Levying a primary property tax does little to retain our existing residents while attracting new people and businesses.

Yes residents expect safe neighborhoods, good schools usable parks, a welcoming climate for businesses and bearable taxation. Many of our residents formerly lived in states with exceptionally high property taxes i.e. Wisconsin, Michigan; and they can relate as to how those states are losing businesses, people and therefore revenue.

In place of self-sufficiency has come a perpetual dependency of taxation for revenue on every level of government.

Government has imposed taxes on the wages of every working person, on the homes and automobiles and other personal assets of every resident, on the assets and gross revenue and profits of every business, on every exchange of goods and services, and even penalizing visitors by taxing stays in hotel rooms. Remember once a tax is levied it will never go away, and over time government will want more and more.

In my humble opinion we must look at growing a sustainable economic base and encouraging tourism; neither of which has been given a chance.