As forecast years ago, Fountain Hills is now facing a financial shortfall. Our growing expenses are primarily due to police and Metro Fire annual escalation, overdue road and building repairs, increased park upkeep and compulsory services.
The majority, 83 percent, of income to support these increasing expenses depend on local sales tax and state shared revenue, all unstable sources subject to fluctuations out of our control.
Expenses and staff have been continuously cut. The number of employees is now 56, half the building boom years. Fountain Hills’ per capita spending $0.71, is 70 percent less than Scottsdale’s $1.22 and 15 percent below Mesa’s $0.82.
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Financial health
Posted
Alfretta Schadle
As forecast years ago, Fountain Hills is now facing a financial shortfall. Our growing expenses are primarily due to police and Metro Fire annual escalation, overdue road and building repairs, increased park upkeep and compulsory services.
The majority, 83 percent, of income to support these increasing expenses depend on local sales tax and state shared revenue, all unstable sources subject to fluctuations out of our control.
Expenses and staff have been continuously cut. The number of employees is now 56, half the building boom years. Fountain Hills’ per capita spending $0.71, is 70 percent less than Scottsdale’s $1.22 and 15 percent below Mesa’s $0.82.
Our Fountain Hills sales tax rate at 8.9 percent is now higher than our surrounding communities; Scottsdale at 7.95 percent and Mesa at 8.05 percent. Raising our sales tax higher will drive more commercial/retail business elsewhere and consumers to shop outside Fountain Hills. Our local shop vacancy is already high.
New construction, the engine for revenue years ago, is down in comparison. All good things end. At one time we had $18 million in reserve, now it’s $3 million and dwindling. Towns cannot survive without a property tax or a large commercial industry after residential build out – we are no exception.
Several groups have studied every line item in the budget and were unable to find fault with the forecast. The excess has been cut. Available options are few; cut services that residents depend on such as mandatory government services, senior/community center, parks, recreation, road maintenance, landscaping and so on. What should be cut?
Not passing a property tax sooner is why we are in this financial situation. The opportunity to restore our financial health and resolve the impending shortfall is to consider a yes vote for the primary property tax.
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