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Art
Although the utility tax was extended I would still like the LOVE BLOG to publish the presentation I made to Council on March 4, 2009.
John Musolf
Vote Against Town of Oro Valley Utility Tax Extension – March 4, 2009
· The Town of Oro Valley Council voted down the 4% utility tax in the 2005-2006 budget.
· The Town of Oro Valley Council voted down the 4% utility tax again in September 2006.
· The Town of Oro Valley Council proposed and approved a reduced 2% utility tax in December 2006.
· At the December 6, 2006 some council members stated that many verbal, email, and written comments had been received by the council members or town staff that supported the utility tax proposal. However, no documents were produced or quoted from and made part of the public record???
· At the December 6, 2006 meeting two of the council members spoke eloquently on the behalf of the taxpayers they represent:
o Mayor Loomis: “We cannot expect to continue to think that we can tax others (via fees) to pay for Oro Valley Services. The taxpayers need to contribute to the viability of Oro Valley. The utility tax is just one short-term method to obtain the necessary funding”.
o Councilman Kunisch: “The citizens need to pitch in and help maintain the quality of services in Oro Valley. The utility tax is just one short-term method to obtain the necessary funding”.
· It is true that a tax cannot be earmarked for a specific purpose but must be directed to the general fund. However, it was perfectly clear from the power-point presentation made by Town of Oro Valley staff and the discussions by the Town Council at the December 6, 2006 meeting that the 4% utility tax was being considered to fund 18.5 new staff positions (1.2 million dollars) and capital improvements (900,000 dollars). These requests had been repeatedly turned down in the budget process.
· When the proposed 4% utility tax was reduced to 2%, a sunset clause was added to end the short-term utility tax in April 2009.
· Now, with the sunset clause due to expire in April 2009 some members of the council want to extend this tax and place the revenue into the general fund because of budget shortfalls. I hope the Town Council does not follow the Federal Rescue Model and try to “Tax Our Way To Prosperity” to deal with the economic problems and our budget shortfalls.
· I would like to recommend to the Town Council that the sunset clause be enforced and the utility tax be allowed to expire in April 2009.
· Instead, the Town of Oro Valley should concentrate on ways to reduce spending, not tax its citizens. A couple of suggestions on spending reductions:
o Eliminate the $160,000 “donation” to the Metropolitan Tucson Convention and Visitor’s Bureau. The contribution is based on the “trickle down theory” that any economic gains that accrue to Tucson and Pima County tourism will benefit Oro Valley for simply being adjacent to Tucson and part of Pima County? What percent of the statistics in convention sales is directly related to Oro Valley only? How many times did MTCVB feature Oro Valley specifically in travel brochures and trade shows? Answer: None!
o Eliminate the $25,000 “donation” to the Critical Path Institute. As a Federal Taxpayer and state taxpayer I am forced to support the FDA’s Critical Path Initiative. Why as an Oro Valley taxpayer am I being asked to contribute again?
o Eliminate expenses for the Town Council members and Town Staff. I used to “eat out” once a week. I cut this down to once a quarter (3 months). Why can’t the TOV do a little belt-tightening?
o The Town publishes its own bi-monthly newsletter, The Oro Valley Vista. The newsletter is sent to all Oro Valley Postal Customers. Save money by suspending the printing of the “Vista” until the economy improves.
o Postpone the start of building and funding of the new Municipal Operations Center until the economy improves.
· It should be noted that no tax once enacted, has ever been rescinded in over 200 years since the revolutionaries in the original 13 colonies threw off the tax on tea from Britain and founded the United States of America.
John Musolf
Oro Valley Resident and Taxpayer
