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Leakage

Leakage. It’s Cecil Yates’ favorite (the real term is “opportunity gap”).

I was at last week’s debate where he claimed that Fountain Hills loses $300 million annually when residents spend in other communities. That comes out to about $2,500 for every man, woman and child. Seems like a lot. So, I went looking to verify. (Source: 2012 The Nielsen Company. All rights reserved. Prepared by Cecil Yates!)

This is what I found. In 2012 it was $241 million. So, he just may be right about $300 million today.

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Leakage

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Leakage. It’s Cecil Yates’ favorite (the real term is “opportunity gap”).

I was at last week’s debate where he claimed that Fountain Hills loses $300 million annually when residents spend in other communities. That comes out to about $2,500 for every man, woman and child. Seems like a lot. So, I went looking to verify. (Source: 2012 The Nielsen Company. All rights reserved. Prepared by Cecil Yates!)

This is what I found. In 2012 it was $241 million. So, he just may be right about $300 million today.

So I looked closer; here are the major categories of sales where Fountain Hills “leakage” occurs* (w/major percentages): Motor vehicles/parts (30 percent); General merchandise, apparel, furniture, other (17); building materials/garden equipment (14); food and beverage (9); gasoline stations (9); general merchandise (9); furniture/home furnishings; electronics/appliances; health/personal care; clothing and clothing accessories; sporting goods, hobby, book and music; misc. store retailers*; non-store retailers; food service and drinking.

*Nearly $21 million in sales were actually negative gaps. We had them: computers, misc. merchandise, electronics, stuff like that.

So, I have three questions for Mr Yates:

1. It’s worse since you became a councilperson;; what have you done about it?

2. Do we really want that kind of business growth and what will it look like in Fountain Hills?

3. At about $1 million in sales tax revenue per $40 million of dollars spent, do you really think that’s an answer to our financial needs and, if so, when?

Earlier, he said he would not raise taxes or impose fees based upon the recent property tax failure, yet he said Fountain Hills is “broken.” What is his answer?

I know what I want Fountain Hills to be. And that list of business clutter is not my view of our hometown. That's Scottsdale. No thanks.

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