The Explorer Endorses Keeping Oro Valley's Utility Tax

We're not at all surprised that Explorer editor Dave Perry has come out on behalf of OV keeping the Utility Tax. Since his arrival in town, Mr. Perry seems to always endorse ways for Oro Valley to tax its citizens.

Here's his Feb. 25 editorial titled "Keep A Tax"

Nobody likes paying taxes. But 2009 doesn’t appear to be a good time for local governments to be cutting taxes, with borrowed federal “stimulus” funds about to flow, and traditional sources of local revenue crunched by a struggling economy.

Next week, the Oro Valley Town Council takes up a decision on renewal of the town’s optional 2 percent utility sales tax levied on consumed electricity from Tucson Electric Power, natural gas from Southwest Gas and drinking water from the town of Oro Valley, the city of Tucson and Metropolitan Water.

It’s a $1.5 million, general-fund revenue stream that OV needs as it confronts declining sales tax funds and state assistance. The town council should vote for its extension, we believe.

Oro Valley is one of the few Arizona communities — six among 90, when the tax was first imposed in 2006 — that did not have a utilities tax. Oro Valley doesn’t have utility franchise fees, either, with the exception of cable television. Some communities have both forms of taxation.

Council members are establishing their positions. First-termer Bill Garner, who campaigned with a position that he would not vote for the tax, says he won’t this time. And that’s fine; scrutiny of revenue generation and expenditure is always appropriate.

Oro Valley’s piece of sales tax revenue, estimated to be near $19 million for the current fiscal year, is now expected to be closer to $12.6 million. That’s a big decline, a real “plunge” in this time when the media consider small declines to be “plunges.” Utility tax or not, town government has a painful financial future. Lay-offs — the utility tax supports the equivalent of 18 municipal jobs — and less government service appear inevitable.

A 2 percent utility tax is not a lot of money per capita; less, certainly, than any property tax for operations would generate. While steadfast opposition to a property tax for town operations remains, and in this budget-squeezing time, Oro Valley should not take the utility tax out of the mix.

Clint Bolick (Rightfully) Takes Phoenix Council To Task Concerning CityNorth Appeal

We have the utmost respect for Clint Bolick and his Goldwater Institute legal team, and we believe Clint is "right on" questioning the Phoenix Council's appeal of the CityNorth $97.4 subsidy.

The Goldwater Institute Daily February 26, 2009 City of Phoenix defying public trust, again by Clint Bolick Like most Arizona cities, Phoenix is in desperate financial shape, faced with severe cuts in essential public services. But somehow it found the money to pay tens of thousands of dollars to a private law firm to appeal the CityNorth decision to the Arizona Supreme Court--which, if it "wins," will cost the taxpayers $97.4 million in subsidies to the developer. No wonder the City is in such a financial mess. What's worse, the voters had a referendum of sorts in the last City Council election, when every single candidate in a contested race opposed the CityNorth deal. But the three who won--Thelda Williams, Michael Nowakowski, and Maria Baier--all voted to appeal the decision to save the corporate welfare they opposed at election time. Only Council member Tom Simplot, who opposed the original deal, voted against an appeal. Mayor Phil Gordon, who used to oppose such subsidies before he embraced them, offered feeble justifications for the appeal. The ruling might affect the City's support of Boys' and Girls' Clubs, he said. Nonsense: the Arizona Supreme Court already has addressed such issues in the context of government support of nonprofit hospitals and K-12 scholarships. Nor does the Court of Appeals decision striking down CityNorth affect economic development agreements in which cities reimburse developers for public infrastructure or maintain ownership of the property. All it does is hold that subsidies that go into a developer's pocket to build a project for the benefit of the developer violate the Arizona Constitution's ban on gifts of taxpayer money. It is a decision worth applauding, not appealing. In times when taxpayers and their governments are strapped for cash, the last thing we need is to lavish subsidies on a luxury shopping mall. Clint Bolick is an attorney with the Goldwater Institute. Learn more: Goldwater Institute: Turken v. Gordon (CityNorth subsidy case) Arizona Court of Appeals: CityNorth ruling Phoenix Business Journal: Phoenix to challenge appeals court on CityNorth subsidy

Oro Valley Municipal Pool Facing Budget Cuts

The Feb 26 Az Star reports that the potential cuts in the Oro Valley budget will impact those that use the town pool at James Kriegh Park.

Read the article here.

http://www.azstarnet.com/sn/byauthor/281627

Oro Valley Out Of State Travel Questioned

In the Feb 26 Az Star has an article on out of state travel for council members & staff. It's an interesting discussion that has diverse opinions from various council members.

Read the article here.
http://www.azstarnet.com/sn/85737/281641