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Town Talk focuses on revenue sources

Posted 3/5/19

Back in the early 1990s an author was researching a book on the best places to retire in the United States and visited the Sun City communities in the Phoenix area. They also happened by chance onto …

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Town Talk focuses on revenue sources

Posted

Back in the early 1990s an author was researching a book on the best places to retire in the United States and visited the Sun City communities in the Phoenix area. They also happened by chance onto Fountain Hills and decided it would be a great place to feature in a new book on the “50 Best Places to Raise Children in the U.S.”

Oprah Winfrey promoted the book, and Fountain Hills, on her television talk show and the results were measurable and incredible. The freshly incorporated town was in fact one of the fastest growing communities during the ‘90s, doubling its population.

The publicity was welcome – but other events factored in. Recent incorporation, construction of the Mayo Clinic just over the hill and a greater commitment to education all played a role in growth. Growth does have a tendency to help pay its own way, but only so far, with one-time revenues from fees.

The criteria outlined by the book identifying Fountain Hills as a great family location included strong economic outlook, exceptional education and access to higher education, ample recreation and community services, low crime rate, environmentally aware and scenic beauty.

It was a dozen years after this book talked about what was great about the town that the initial Strategic Plan for the community took shape and was adopted. The objectives the community proposed and eventually adopted for the Strategic Plan closely paralleled the criteria set forth in the book.

While the Strategic Plan has been updated on a couple of occasions since the original adoption the community goal priorities have remained essentially the same.

While residents of the town seem to aspire to the same attributes seen by these authors some 30 years ago, there also is some anxiety about whether and how the community can sustain what most residents believe to be a wonderful hometown.

Town Talk

Mayor Ginny Dickey hosted an informal Town Talk discussion at the Community Center Feb. 26, and a lot of the discussion centered on the town’s ability to maintain its streets and the increasing costs of public safety services.

With the defeat of a property tax proposal last spring it does not seem likely the council will ask voters to consider that as a revenue option again in the near future. However, that and other revenue plans were talked about as part of that discussion.

It has been suggested over the past year that a new proposal with a lower tax amount might be more palatable to voters.

“Many of those attending [Town Talk] have been involved all the while,” Dickey told The Times in a follow-up email. “Like the people who participated in the Strategic Plan and VisionFH, once they get full information, they usually come around to supporting a property tax as a fair, reliable source for funding the operations and capital needs of a municipality.

“Maybe someday it will be an option to ask once again.”

In the meantime, town officials will be making due. The council will be meeting later this month to discuss revenue options and priorities. The news is a little better this year as the state has promised to fully fund the Highway User Revenue Fund (HRRF), the money shared with communities for street related maintenance and projects.

However, the cost of maintaining and construction on streets is also increasing. There are also new issues and technology that make public safety continue to rise, including the public safety pension crisis in the state, which pokes at the town through the contract with the Maricopa County Sheriff’s Office.

“I am starting to think that most residents do believe we need more revenue, as opposed to the past when they thought there was only a spending problem,” Dickey said. “That is a big step in getting more of the general population involved in finding solutions together.”

Fresh ideas

Councilman Mike Scharnow was also part of the recent Town Talk session and is also contemplating the challenges.

“The top-rated priorities of the Strategic Plan all deal with money – figuring out the long-range town revenue issue. In light of the property tax failure, it does seem as if things are getting repetitive,” Scharnow said. “It’s always tough to implement strategic goals without money, I think. Make our downtown the Beverly Hills of AZ! OK, how do we do that? Improve Fountain Park to make it more attractive to tourists and other visitors – takes money. Bring our infrastructure up to average or good or great standards – takes more money…”

Scharnow agreed with a point made by Vice Mayor Art Tolis and some residents at the talk session. The town may have an identity crisis that could be a reflection of a maturing community or a trend in demographic changes with a different attitude. He said he looks forward to updated data to help the council.

“Maybe we’re an older teenager or young adult still trying to figure out where to go over the long haul,” he said. “With the aging demographic, many folks do want the town to stay the same and basically not grow or change too much. Others are more aggressive and want more development and major improvements.”

Scharnow recognizes there are competing voices and movements on what direction the town should take.

“I’m hoping a new ‘visioning’ process, coupled with an updated Strategic Plan [in 2020?] will help us focus a little bit more on measurable steps we can take to implement some of the strategic goals,” Scharnow said. “Some answers might be forthcoming in this budget cycle if the council does, in fact, move ahead with some kind of ‘revenue enhancement.’ At this point it’s definitely tough to predict what that’s going to be or if the can gets kicked down the road yet another year.”

Regardless, there seems to be a nationwide trend toward distrust in government, making it difficult for leaders to get a public consensus they need to accomplish goals.

“Trust doesn’t happen overnight or easily, and when it is almost inherently a suspect institution, ‘I’m from the government and I’m here to help,’ and involves money, it’s that much more of a challenge,” Dickey said. “A unified council that demonstrates respect despite occasional differences, who is unquestionably open and encourages participation, goes a long way toward that goal. I will continue to seek help and opportunity for interaction with the community, inviting any and all council, commissioners and staff to join me.

“When suggestions to raise revenue are not viewed with cynicism and distrust, we will have made progress toward reasonable and effective solutions. I surely believe that is possible.”