This week The Times will be opening its Town Council campaign coverage with the first in a series of questions being posed to the candidates.

Linda Kavanagh is running for mayor and has no challenger to replace Mayor Jay Schlum, who is retiring from office. Although she has no challenger, Kavanagh has agreed to participate and answer the questions being posed to the candidates.

There are seven candidates for three seats on the council with terms expiring in June.

The three incumbents, Council Members Dennis Brown, Dennis Contino and Cassie Hansen, are all seeking re-election to a new four-year term.

The incumbents are being challenged by four others. The candidates include Nick DePorter, Mary Nickum, Nancy Ordowski and Cecil Yates.

There is a third race going on, which is a recall election with Dr. Richard Rutkowski attempting to unseat Councilman Henry Leger.

Over the course of this coverage, the recall candidates will be asked to respond to questions that may be different from the other candidates.

All candidates are answering the same question this week, which is as follows:

Do you believe the town should rely on cuts to maintain a balanced budget, or should there be a balance of cuts and additional revenues? What specific ideas do you have for cuts or revenue increases?

Linda Kavanagh: “I do not believe that the town will be facing a significant budget shortfall next year. I base this belief on two factors. First, the state’s legislative budget analysts at the Joint Legislative Budget Committee are projecting an increase of about $400,000 in state-shared revenue for Fountain Hills. Second, the economic recovery in Arizona is progressing faster than expected, which also may bring in more revenue to the town.

“I would oppose any revenue increases accomplished by raising taxes. In these difficult economic times, people need to keep as much of their money as possible. Besides, raising taxes in bad economic times is a surefire way to halt an already fragile recovery and maybe even throw us back into recession.

“The best way to raise revenue is to help existing town businesses grow and to attract new businesses to town. We can do this by reducing unnecessary regulations and creating a tax climate that stimulates growth. More businesses mean more sales and property tax revenue collections and more jobs for our residents. That’s the kind of revenue increase I support.

“Regarding cuts, identifying specific cuts before the need to make them is known risks causing unnecessary controversy and concern. Suffice it to say that I have been examining the town budget for many months and have attended all its budget meetings. Should cuts be necessary, I will have no problem identifying them.”

Richard Rutkowski: “When an individual, a family, or a business is faced with the economic challenge of seeing expenses exceed income, the practical response, with an almost immediate effect, is to reduce spending. Revenues are harder to increase. We cannot force our employer to pay us more. If a business raises prices for its customers, it risks losing those customers and that revenue.

“In town government, the same principles should apply. Especially during a time of economic hardship, raising taxes or fees to its residents or business owners is not the right strategy.

“Choices must be made between ‘must haves,’ ‘nice to haves’ and ‘don't needs.’ ‘Nice to haves’ and ‘don’t needs’ should not be funded or at least undergo extensive scrutiny as to the likely benefit to the town and its residents in return for the cost.

“Possible ways of cutting expenses could include a close look at personnel costs, including increased cost sharing for insurance and pension benefits.

“The budget should be organized in a clearer, line-item fashion, which would allow for examination of each expenditure and a determination if it is a necessity and an obligation of the town as specified in Arizona law governing incorporated towns.

“A major portion of town revenue derives from sales taxes. Improving the business climate (by streamlining licensing, for example) would help to retain existing business, attract new businesses, and eventually increase revenues in a non-burdensome manner.”

Henry Leger: “At a recent council/staff budget planning retreat, we developed a list of potential spending cuts and revenue enhancements for FY12/13. These included increasing employee contributions to health care premiums; eliminating the chief building official position; revising recreation program user fees; proposing franchise agreements with water and gas companies; and utilization of general fund reserve surplus. These are a sample of ideas that I will consider in establishing a balanced general fund budget for FY12/13.

“Focusing on long-term revenue solutions, I will continue to work on projects that will have a positive economic impact on our community. These include: responsible development of the town’s annexed property; implementation of the downtown vision plan; and economic development efforts to attract businesses.

“These economic development efforts will target technical services, healthcare, finance and insurance, since these business segments have the potential to bring jobs to Fountain Hills.

“Funding the town’s long term capital and infrastructure improvement plan remains a challenge. To that end, I will continue to work with council members, staff and residents to reevaluate our priorities and determine the best methodology for developing a sustainable funding source to meet our capital improvement needs.

“Since serving on Town Council, I have contributed to a balanced budget. During that time, the town’s general fund operational budget has been reduced from $16.8 million in FY 06/07 to $12.6 million in FY 10/11. Reduction in expenditures has been accomplished though organizational restructuring, resulting in a 34 percent reduction in staff, cost cutting and enhanced operational efficiencies.”

Dennis Brown: “I am proud to have helped balance three town budgets without raising taxes on Fountain Hills residents.  We cut the overall budget from $18 million down to $12 million.

“With my support, the council did not cut funds to protect peoples’ lives and homes. Not counting police, fire and emergency medical services, we cut the budget by half, and employees from 88 down to 58.

“The council revamped new construction impact fees to ensure that growth pays for itself and current residents don’t pay for infrastructure to serve new homes. A new state law prevents Fountain Hills from some collecting impact fees, so we cut them about 30 percent.

“This year’s revenues are above estimates and expenses under budget. The ongoing recession continues to affect Fountain Hills, but the best advice says that existing revenue sources will continue to fund current-level services.

“One underfunded area is road maintenance. The voters educated the council in rejecting the road bonds last fall, telling us the package was not specific enough and too big.

“I plan to introduce a new road bond proposal in 2012 that will be more specific, and scaled back more appropriately. I believe voters will support rebuilding Saguaro Blvd. and maintaining other roads.

“I am proud to have balanced three budgets during the worst economic recession since the Great Depression. I am optimistic we are on a slow path to recovery, so I do not support new or raised taxes, except for road bonds approved by voters.”

Dennis Contino: “There are a lot of cuts that should be made but not to balance the budget.

“We should go back to a fire district and save more than $3 million and cut our sales tax at the same time.

“You always can do more with less.”

Nick DePorter: “Financial sustainability and fiscal responsibility are critical to the future of the town. I believe the town should employ a balanced approach of exploring both budget reductions and revenue enhancements.

“The town is currently operating in a leaner capacity today than in the past. However, in working at a state institution such as ASU, and with non-profit organizations throughout my career, I know that there is always room for improvement and increased efficiencies.

“While establishing the budget, and before cuts or appropriations are proposed, the town leadership should have transparent processes to partner with its citizens in order to understand the wants and needs of service levels provided by the town.

“In addition, the town should aggressively seek out ways to increase jobs and economic opportunity in our town, which will increase revenue for essential services. Professional/technical services, finance and insurance and healthcare/biomedical are specific types of industries that have been identified by the Chamber of Commerce, the town’s Economic Development Office and the Greater Phoenix Economic Council (GPEC) as having tremendous growth potential in Arizona.

“Fountain Hills has an opportunity to explore potential within each of these industries and in particular the healthcare industry due to our close proximity to world class healthcare providers like Mayo Clinic.

“I have extensive experience executing strategic plans and using limited and available resources to their fullest. If we leverage the many assets of this great town, we can create a diverse economy that will support our community’s needs and address the challenges we face.”

Cassie Hansen: “Over the last five years the town has cut the General Fund budget from $16.9 to $12.6 million, a reduction of approximately 25.44 percent.  Since the 2008/2009 budget, staff has been cut from 88 full- time equivalent employees to 59, a reduction of approximately 33 percent.

“Depending on areas of expertise, a new town manager could result in additional consolidation. Relying on additional cuts to balance the budget has just about maxed out its potential without causing serious impacts on service and maintenance levels.

“That leaves additional revenues. Our citizens have voted down the last two bond proposals, one to fund fire and EMT, the most recent an aggressive plan to repair/replace and maintain our street infrastructure.

“Of our current general fund budget of $12.6 million, almost $6.1 million goes to pay for public safety that includes law enforcement, fire and emergency medical. These are services critical to every citizen and need to be at the top of the priority list when the town is prioritizing budget dollars. The remaining $6.5 million needs to be prioritized, but with the scrutiny of public input.

“To balance our budget, we need more public input on the front end. A citizen committee should be established that would receive all the data provided the executive budget committee to decipher through all the facts, options, suggestions and brain storming ideas.

“In addition to a ‘council retreat’ to discuss the budget, we need to add a ‘community retreat’ where citizen attendees can openly participate in the presentations and discussion.”

Mary Nickum: “I think we can all agree that our town government must strive for maximum efficiency. Starting with that, we must find common ground concerning the relative priorities of town services and programs. Those services that efficiently serve the needs of the greatest number of residents should be protected from cuts. If any programs are found to be operating inefficiently, they should be considered for cuts. Across-the-board cuts should be avoided, because they punish efficient operations as well as those that are less efficient.

“Before any cuts are made, all options for increasing revenue must be considered. Raising taxes must be avoided unless no other option can be found. I think that revenue can be increased without raising taxes.  We must capitalize on the high quality of life offered by Fountain Hills to attract additional businesses, such as small high-tech startups, higher education centers and those supporting the growing bio-medical facilities of the area.

“New businesses that attract customers from outside Fountain Hills and provide high paying jobs will increase our tax revenues without raising taxes for current residents.

“Another option for increased revenue without increasing taxes is aggressively pursuing grants. I have extensive experience in writing grant and contract proposals, which would be beneficial in administering my duties as a council member.

“The first requirement, however, is a commitment by all members of the Fountain Hills Town Council to work together as representatives of the town’s residents to find common ground and shared priorities.”

Nancy Ordowski: “I believe we must live within our means. This means ensuring there are funds set aside for slow economic times. During these slow times, we need to ensure taxpayer money is spent on necessary things and not ‘extras’ or nice to have things.

“I support a budget that clearly identifies and funds critical ‘must have’ items such as police, fire and road maintenance, before adding in ‘extras.’ Any request for increased revenue through fees or taxes must be for a clear, specific purpose.

“The 2012/13 budget will be adopted before the newly elected candidates take office. I will take a close look at this budget when it becomes available, identifying areas that can be adjusted.

“Currently the town’s (combined) sales tax rate is 9.9 percent; I would not support a sales tax increase putting us over the 10 percent mark. Of the 9.9 percent sales tax the state receives 6.6 percent; the county 0.7 percent and 2.6 percent goes to Fountain Hills.

“To increase baseline revenue, I believe we should encourage and incentivize growth in business and home ownership before turning to additional fees and taxes.

“Encouraging and incentivizing growth means, in large part, cleaning and streamlining the regulations and fees to home and business owners.  Home owners don’t need a surprise $70 permit fee when they install a new hot water tank. Businesses don’t need to navigate through 50 pages of sign regulations. A lot of this is just common sense; some of it will be tough choices, and all of it should be transparent.”

Cecil Yates: “Like any budget, it should be looked at quarterly to see if any items could be cut or streamlined to save money. Every budget can be cut.

“The key is making cuts that do not eliminate efficiencies and/or town services. It should be noted that Fountain Hills spends the least amount per capita than any other Phoenix suburb.

“The key in this election is how do we raise revenue? Economic development is the answer. My background is 100 percent economic and development based. I am in the game, so to speak.

“I work and deal in this industry for a living.

“Several economic studies prove that all of us have demands for goods and services that aren’t being met, so we are spending our money elsewhere.

“I hope to work with the Town Council to systematically approach the right retailers that best fit our market and location to bridge our budget gap. We could have a much healthier budget by meeting as little as 10 percent of that demand.

“We can reach this economic potential in a smart way, by attracting the right retailers, while still protecting the wonderful way of life we all enjoy.

“I address this issue in more detail on my website, www.VoteCecil.com. Click on ‘3-Point Plan for Fountain Hills.’”