Bits and Pieces

Don't Run The Red
A 2019 AAA Foundation Survey found that more people are being killed by red light runners than ever before. "More than two people are killed every day on U.S. roads by impatient and reckless drivers blowing through red lights."

That fact has been noted by Oro Valley Public Works Director and Engineer Paul Keesler. Speaking on Jim Horn's Oro Valley Podcast last week, Keesler said that intersection safety will be a key focus area in 2020.

"We have to get people to obey the traffic control because the T-Bone accident is one of the most dangerous." Keesler is going to study the most dangerous Oro Valley intersections to try to determine what is causing the accidents.  There was one of these last Friday at Oro Valley's most dangerous intersection: Magee and Oracle.

Residents note property tax increase
Oro Valley residents are becoming aware that there are consequences for voter approval of the Golder Ranch Bond. Posting on NextDoor, a resident seemed astounded to learn that taxes are going up. The resident learned this when they were notified of the need for increased property tax escrow by their bank. Send thank notes to the Golder Ranch Fire District.

Ironwood Ridge Lights On... Nobody There

Ironwood Ridge HS...
Lights burn bright at night
The lights are on in the ball fields at Ironwood Ridge well into the evening. It's a time when the fields are not being used. The neighbors are annoyed.

According to one: "Nobody is in sight anywhere on campus and the parking lot is empty. Why [is Amphi School District] allowing taxpayer money to be wasted while ruining our night skies in Oro Valley by leaving these lights on until 9:00 PM, M-F, regardless of actual use?" We referred the writer to Council Member Joyce-Ivey. She is the council liaison to the Amphi School District. Joyce plans to look in to it.

Traffic proceeds nicely at Moore and LaCanada

Roundabout works well
The roundabout at Moore Road and La Canada seems to work quite well. This a according to Paul Keesler during an interview last week on Jim Horn's Oro Valley Podcast.

Keesler invested considerable time determining ways to make sure that drivers approach the intersection cautiously and at low speed.

Horn noted that the roundabout works well for bicyclists. We took a look at it Wednesday. Indeed, it does work well.

Light installation at Naranja and La Canada

Town installs turn lights at Naranja and La Canada
This week, the town added a protected left turn arrow at the intersection of Naranja and La Canada. The line of traffic traveling northbound was back to the Frys Shopping Center.

Here's a look at the work.

----
Have something interesting for us to know? Just get in touch and we'll highlight it for you in LOVE.

Bits and Pieces

Property taxes to increase
Oro Valley and county residents voted themselves a property tax increase earlier this month. Voters approved both propositions 466 (Amphi Schools spending override) and 477 (Golder Ranch Fire District Bonds) by 58% and 54% respectively. We surmise that the robust economy we are experiencing played a major role in voter generosity.

Roundabout opens November 22
Good news for those who frequent the Moore and LaCanada intersection. The roundabout is on schedule to open midday on the 22nd.  Watch the video on the roundabout here.

Captain Jeff's "Belly Bomber"

The Belly Bomber

Captain Jeff's "Belly Bomber" is open Tuesday, Wednesday and Thursday in the Riverfront Park parking lot. "We feature Sabrett hot dogs, all the way from Bronx New York..Special order." Jack told me. They are setup starting at 3pm and will stay open "...until it gets too cold or people quit buying."

According to the Sabrett website: "...every New Yorker knows the name Sabrett® because it sprouts from the blue and yellow umbrellas atop vendor carts seen on almost every corner of the city. "

They are permitted by the Pima County Health Department and have passed inspection from GRFD.

Jack served 23 years in the Air Force and retired to Oro Valley with his wife Becky. The live in Rancho Visoso.

Housing market cools
... just a little The housing market cooled down a bit in October, according to the Long Realty report.

“Year-to-date home sales outpace last year by 5%. “In the Oro Valley area, October 2019 active inventory was 181, a 34% decrease from October 2018. There were 73 closings in October 2019, a 12% decrease from October 2018. Year-to-date 2019 there were 824 closings, a 5% increase from year-to-date 2018. Months of Inventory was 2.5, down from 3.3 in October 2018. Median price of sold homes was $325,000 for the month of October 2019, up 10% from October 2018. The Oro Valley area had 72 new properties under contract in October 2019, down 1% from October 2018.”

It’s a seller’s market for homes priced at less than $700,000.
—-

Fire Districts Thriving on Rich Tax Base

Golder Ranch Fire District is in the mix
We recommend you read "Pension Costs Plague Fire District Budgets". It is published by the Arizona Tax Research Association. Among other items the piece notes:

"Arizona’s fire districts plan to spend nearly $500 million in FY 2020, a 7.4% increase over last year. Property values are on the rise and the current funding model for fire districts allows them significant access to the property tax base."

This is because the districts tax based on the value of your property. Values have been increasing substantially.

Just look at the annual assessment you get from the county.

It makes us wonder why the district can't fund its needs on a "pay as you go" basis.

The richness of the tax base is just another factor to consider in your GRFD Bond vote.

Remember, a vote in favor of the bond is a vote in favor of increasing your property taxes.
---

The GRFD Bond

The GRFD bond is a broad request for $26.6 million in funding
A vote in favor of the GRFD bond will authorize the authority to issue bonds. The authority has provided some information on the projects for which it plans to use these funds. The total cost of the bonds including principal and interest is $45.2 million.

$5.25 million to be used to repay existing debt
Some bond proceeds will be used to retire debt assumed when GRFD merged with the Mountain Vista Fire Department in 2017. The interest on this debt is currently being paid from the GRFD operations and maintenance budget. This amount will "... provide funding to pay for firefighter equipment and apparatus..." (Source: GRFD Bond Information Pamphlet).

Bond funds, can be used for anything that relates to their general purpose
The GRFD Bond information pamphlet lists projects that total $26.6 million.  These are detailed in the bond information pamphlet. These are intended purposes.

The ballot measure does not include these projects. It includes a broad statement of the purpose fo the bonds. GRFD does not have to use the money for these intended projects. GRFD can used these funds for any facilities and facility related purposes. Thus, we reviewed the project list and identified several items to consider.

Source: GRFD Bond Information Pamphlet

$3million in Arroyo Grande station funding could be a placeholder
There are projects listed in the pamphlet that appear to be "placeholders."

One such project is the building of a facility for Arroyo Grande. Today Arroyo Grande is an open wash. There are no plans for Oro Valley to annex it. It is likely that it will lay barren for years to come. However, the bond request is for a $3million station there. What will GRFD do with these funds since there is likely no need for this station?

Other potential "placeholder" items include:

• There are no architectural drawings in place for the $1.8 million remodel of station 375
• A $2 million land acquisition is listed. It is for undefined purposes
• Communication towers for a cost of $500,000. Pima and GRFD my collaborate on this.

The bond will increase the GRFD portion of your property tax by $34 today
The county estimates that a home valued at $250,000 will  experience a $34 per year tax to pay for this bond.

The bond tax assessment could last 30 years
Bonds generally have a 30 year term with a provision to repay the debt starting after year 10. However, the voter information packet indicates that the term will be 26 years.

Today, the county mails your ballot
This completes LOVE’s special series on “Get To Know GRFD”.  Our postings and the information pamphlet voters received provide ample information for voters to make an informed decision.

Today, the county mails your ballot.  The decision on whether the measure passes or fails is up to you.

Get To Know: GRFD Is Politically Active In Oro Valley

GRFD: Major contributors to the Hiremath-Snider-Waters-Hornat campaigns

Oro Valley is very important to Golder Ranch Fire District (GRFD) because it provides more than half of GRFD revenues. Thus, it is important to them to have council members in place who will look favorably on them. 

Political activism traced to Oro Valley annexation
LOVE can trace their political activism back to 2004, when candidates they endorsed and financed for office were elected. What did GRFD get in return: The annexation of Oro Valley into the district. 

"Special interest groups usually support a candidate and expect something in return. You may recall that Golder Ranch Fire Fighters supported candidates in the 2004 election with most being elected. Shortly thereafter, the new council voted to allow Golder Ranch Fire District to annex Oro Valley. Rural Metro Fire was forced out of business in Oro Valley. That led to thousands of our citizens having fire service rate increases of up to 100 percent and more." (Source)

GRFD were major contributors to the Majority-4
2010: Four firefighter organizations contributed to the Hiremath-Snider-Waters-Hornat campaigns. The amount totalled $4,160. It came from:

• International Firefighters Association (IFFA)
• Professional Firefighters of Arizona
• United Pima Firefighters Association
• Yuma Firefighters

2014: Firefighter PACs donated almost $1,500 to the Hiremath-Snider-Waters-Hornat campaigns.

2018: Firefighter PACs contributed $6,000 to the Hiremath-Snider-Waters-Hornat campaigns.

None of these PACs donated to any other candidates during the Majority-4 years

2019: GRFD Chief Randy Karrer spoke on behalf of GRFD at the golf course hearing at the Church of the Nazarene,

Karrer voiced GRFD support of making no change in the use of Oro Valley's courses. He stated that he has a concern that a closing of the golf courses could have on property values; because that would impact the taxes collected by GRFD. "This will result in a significant loss of fire revenues for the district." You can watch  his comments at right.

GRFD "VoteYesforGolderRanch" PAC
A PAC was established in July to support the bond ballot measure.  The chairperson is Mick Anna of Oro Valley. The treasurer is Ryan Ward. Ryan is the treasurer of GRFD. (Source)
You can visit their site on facebook or you can visit their web site.
---

Get To Know: GRFD Gets 55% Of Its Tax Subsidy From Oro Valley Property Tax Payers

Golder Ranch Fire District is A $31million business
Golder Ranch Fire District revenues total almost $31million in 2018. Expenses almost equal revenue. Generally, their goal is to spend what they receive each year. This is "normal" for a quasi-public enterprise. About a third of the assets owned by GRFD are for vehicles, apparatus and equipment. Buildings are the largest portion of assets owned.

Property taxes are 84% of total GRFD revenues
The taxes we pay to the district are the most significant source of revenue for GRFD. GRFD assesses taxes based on the class of the asset. For example, residential property is assessed a tax base on 10% of the limited cash value ("LCV") of that property. That value is multiplied by a tax rate per $100 of the LCV value. The 2018 tax rate was $2.31.

Oro Valley residents are the largest source of GRFD Revenues

Source: GRFD 2018 CAFR

Oro Valley parcel assessed values are 57% of the total values of the district. The number of Oro Valley parcels are 44% of the total.

This disparity in valuation results in Oro Valley residents paying more than their fair share into GRFD revenues.

GRFD also experiences economies of scale in serving Oro Valley residents. Oro Valley's population density is much greater than the rest of the district. Oro Valley land area is 16% of the total land area served by GRFD; yet Oro Valley population is 71% of the total GRFD population served.

Our conclusion: Oro Valley residents have a bigger "stake in the game" than residents from any other communities. 
---

Getting To Know: Golder Ranch Fire District Has A Large Organization Structure

This is our third posting in our series "Getting To Know Golder Ranch Fire District." This posting presents the district's organization sturcture.
---
GRFD has a four layer organization structure
The GRFD organization structure spans four layers.  GRFD has a 5 person Board of Directors. Voters approve the directors, each serving rotating terms. Historically, there has been very little competition for board seats. Thus, there are directors who have been on the board for many years.

 The district had 261 employees in 2018. The ratio of workers to staff is 5:1.

Chief Karrer's compensation over $200K
Salary and wage information is not available in the 2018 annual report. This should be a major component of total cost of operations. We do know from this report that administrative costs are 24% of total spending.

To gauge the level of supervisory overhead cost, we reviewed the 2019 employment contract between the district and Chief Karrer.  Chief Karrer's contract states his annual salary to be $176,500. In addition, he receives added deferred compensation of $30,000 annually. The total is more than $200,000.He also receives an annual allowance of $850 for his uniforms. In addition, the contract grants him an annual amount of $9,700 for medical costs. He is also reimbursed for education and related expenses.

Generally, compensation and benefits received by other administrative personnel will "trickle" down from that of the chief's earnings level.
---

Get To Know: Golder Ranch Fire District Is A Two-County District

This is the second of our postings in our series "Getting To Know Golder Ranch Fire District."

GRFD Serves Oro Valley, Saddlebooke and Catalina
The GRFD district covers three communities: Oro Valley, Catalina and Saddlebrooke. Thus, voters in these communities, communities that have a far different set of interests that Oro Valley residents, will also be voting on the bond offering.

GRFD Service Area
(Source: http://grfdaz.gov/pdf/cafr_fy13.pdf)

"The current district fire boundaries are approximately 241 square miles and the ambulance transport boundaries are approximately 394 square miles. These boundaries are geographically located in Northern Pima and Southern Pinal County. The District is predominantly comprised of residential properties and an urban/commercial corridor. The estimated population of the newly consolidated entity is 120,000 residents." (Source: GRFD CAFR June 2018)

Oro Valley population is 61% of the population served.

GRFD has grown through annexation and merger
"The geographical boundaries of the District have expanded through annexations and a joint merger with the Catalina Fire District and Oracle Junction Fire District and in July 2017; and consolidation with the Mountain Vista Fire District."

"The 2010 Census data estimates 60,000 residents within the District and this is supported by a land-ownership report that estimates nearly 82% of the 31,000 parcels are for residential use."
---

Getting To Know: GRFD Is Not Primarily A Fire Service

Starting October 10, Pima County is mailing early ballots for the November 5th election. There is a ballot measure requesting voter approval of a $26.6 million bond for Golder Ranch Fire District (GRFD). GRFD plans to sell the bonds over a three year period. GFRD plans to use bond sale proceeds for new facilities and to update existing facilities. The bonds will increase the total GFRD property tax rate, thus increasing your property tax.

GFRD is approximately 17% of  your property tax. It costs more than 2  times what Rural Metro cost Oro Valley residents before Rural Metro sold to GRFD about 14 years ago.

It is our sense that voters are relatively uniformed regarding GRFD. Thus, LOVE plans to present a series of informational postings regarding GRFD. Then we will discuss the bond offering and the use of proceeds.
---
GRFD is an emergency medical and help service. Fire calls were less than 4% of all callouts
The state intended fire districts to be fire fighting operations when it established this legal form of organization. Districts were needed in order to cover large swarths of unincorporated land.

However, the word "fire" is a misnomer when it comes to Golder Ranch Fire District.

GRFD fights very few fires. Their primary purpose is to provide emergency medical and related service.

In 2018, fire calls were less than 4% of all callouts. 56% of the 2018 calls were for emergency medical service. A rather large catchall category of "other calls" is 37%.

The ratios have been the same over the years as seen on the following chart.