Guest View: Mike Zinkin ~ Why cut taxes when you can reallocate the additional funds instead?

 

The above question should not surprise anybody

After all, don’t all governments find a way to spend tax dollars, even when there is no longer a need for the original subsidy?

The history of the increased sales tax to fund the Community Center and Golf Courses
On March 1, 2015 Oro Valley initiated an increase of our sales tax from 2% to 2.5% with the additional .5% to be dedicated to the Community Center Fund. The Town had purchased the HSL properties to include golf, tennis, swimming, and a community center. The Town knew that it needed additional revenues to cover this investment.

According to the ordinance (O) 14-17, “an additional revenue source is necessary to subsidize the operating costs and fund the capital needs of the facility over time.” The tax was forecasted to “generate approximately $1.6 - $2 million annually in additional revenues.”

Some more background for the new residents in town
Immediately after the Town Council motion to purchase the HSL property, a PAC called TOOTH (Tee’d Off Over Tax Hike) was formed to gather signatures to invalidate the Council decision. TOOTH was a play on words as the mayor at that time was a dentist. They needed 1,148 signatures to get the referendum on the ballot.

Despite having to collect the signatures over the Christmas holidays (from 12/18/14 to 1/16/15), TOOTH collected 3,158 signatures (more than twice the required amount) only to have the Town Clerk void the petitions due to a minor clerical error. With one day left to gather the required signatures, another PAC was quickly formed and gathered over 1,100 signatures in just 5 hours. This was just shy of the 1,148 they needed to force a ballot issue. As such, the residents never had an opportunity to vote on whether they agreed with the tax increase to fund the Community Center, thus the purchase and accompanying tax became a reality.

Two Choices
In the current budget (FY 2020/21) which ends on June 30th, the dedicated sales tax is now forecasted to provide $2,492,960. So what does our government (Town Council) propose to do? Instead of reducing the tax, they find another reason to spend the additional revenue. Looking ahead to next year, the Town Manager’s Recommended Budget for FY 2021/22 forecasts the sales tax revenue to be $2,857,779.

The increased tax imposed on the People was to subsidize the Community Center Fund. Now that the revenues are well above the initial $1.6 - $2 million specified in the ordinance, the Council has two choices: (1) reduce the tax or, (2) find reasons to spend the additional revenue. They have chosen the latter and I believe that doing so is fiscally irresponsible.

This tax has forced the entire community of 44,000 residents to subsidize fewer than 300 “golf members.” The tax was wrong to begin with and will continue to be wrong if it is no longer going to be spent as originally proposed.

More tax history: The Utility Tax that never went away
Oro Valley already pulled a similar stunt when they passed a temporary 2% Utility Tax in 2006 to fund 18.5 new staff positions, mostly in the police department. The tax was supposed to sunset in 2009, but in 2009 the Loomis council voted to extend it at the 2% level with no sunset clause. Then, in 2010, the Hiremath council increased it to 4% and we have never gotten rid of this “temporary” tax.

Oro Valley should only tax for what it needs and nothing else.

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Mike Zinkin and his wife have lived in Oro Valley since 1998. He served on the Oro Valley Development Review Board from 2005-2009, the Board of Adjustment from 2011-2012, and the Town Council from 2012-2016. He was named a Fellow for the National League of Cities. He was a member of the NLC Steering Committee for Community and Economic Development and a member of the Arizona League of Cities Budget and Economic Development Committee. He was an Air Traffic Controller for 30 years. Mike has a Bachelor’s degree in history and government from the University of Arizona and a Master’s degree in Social and Philosophical Foundations of Education from California State University, Northridge.

Town To Seek Input On Water Rate Increase

Notice of Intent for rate increase approved
The Town of Oro Valley will be seeking your input on a planned water rate increase. This is part of the process for a rate increase. The approval by the Oro Valley town council last week allows the posting of a notice of intent and begins the process of public hearings. New rates, if approved, will be in effect as of July 3.

Rationale the result of an methodology change
The rationale for the increase is to "...make the rates equitable to all rate users", according to Town Water Director Peter Abraham. "We tried very hard to make sure that one user group does not subsidize another."  In this instance, the town wants to increase the residential water rate and decrease the reclaimed water rate.

Last year, the town hired a consulting firm who did a study that resulted in allocating more cost of water delivery to residential users and less to reclaimed water users. Essentially, the consulting firm changed the methodology of how water cost should be allocated. Thus, based purely on their methodology, Abraham concluded that an increase in residential water cost is needed.

During the meeting, Council Member Jones-Ivey asked why there is a recommendation to increase water rates when water conservation efforts have been so successful?  Abraham responded that: "That without conservation the rate increase would be greater than it would be otherwise." He proffered that if residents consumed more water, then more infrastructure to support the service would be needed and, therefore, costs would go up.

In other words, according to Abraham's logic, no amount of effort on the residential user water conservation effort would have influenced this decision.

Under his plan, golf courses using reclaimed water will pay less. You, the residential user, will pay more.

Ride along taxes on water will increase too!
LOVE has previously reported about water rate increases. Increases have happened every year, without fail. The cost of water to Oro Valley residents has shot up exponentially over the years.  Read about it here.

As we have pointed out in previous postings, when water cost goes up add on fees and taxes go up. For example, add 12.5% to the cost of water to pay for a sales tax and a utility tax.  Add to that a groundwater preservation fee and a Supertax fund. Both of these are based on a percent of water cost.

The council is not required to increase rates
The passing of the resolution to increase water rates starts the process of public discussion. It does not require the council to raise rates. It merely means that the council can not increase rates greater than the the recommended change. The council can, at its option, leave rates as is. It can even decrease rates.

At no time during during the discussion among council members last week was there any mention of the fact that add on taxes and fees will also increase. This is something the public will have to bring to their attention. Perhaps the council needs to consider capping these ride along costs.

Is Oro Valley Growing Too Expensive For Retirees?

One "study" says Oro Valley is getting to expensive
This is the conclusion of a study by gobankingrates.com. The study, published in September, ranks Oro Valley as 22 out of 30 nationwide locations that are getting too expensive for retirees.

Oro Valley’s senior population is approximately 30% according to census.gov (US Census Bureau). We are not just a retirement community; but people have traditionally moved here to do just that.


Reason 1: High Cost of Housing

The study uses median housing list price as a gauge of housing cost.

Gauging the cost of houses using that measure can lead to erroneous conclusions since a "median" is not an average. It is the middle number in a bunch of numbers.

We think that the average price per square foot of living space is a better measure. So, LOVE undertook our own study using data provided by Long Realty.

LOVE calculated the average asking price per square foot. We compared Oro Valley to other local retirement communities. We found that Oro Valley is near the top of the pack, but inline with Saddlebrook, which is a retirement community. Take a look at our infographic (panel left).

Reason 2: High cost of  living
We posted about Oro Valley's high local taxation last week, referencing a Kiplinger report that listed Oro Valley as a "high local tax town".

In that posting, we identified heavy taxation of water, a fact not considered by Kiplinger, as an added high tax factor. We also noted in that posting the relatively high property valuations assigned by the Pima County Assessor to Oro Valley properties, values that enable them to collect proportionately more property tax dollars from Oro Valley  property owners than from other communities.

Other than taxation and the cost of housing, the cost of living in Oro Valley is comparable to other local communities
The cost of living in Oro Valley  is also in line with the national average (panel right).

Our conclusion
Oro Valley's high cost of housing and high local taxes not only make Oro Valley expensive for retirees, but also make Oro Valley expensive for everyone else.
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You can do your own research on cost of living by clicking here, customizing it to your income and preferred locations.

About the  GOBankingRates study: They analyzed 50 cities with large senior populations (i.e., 25% or more of the population aged 65 or older). 

Kiplinger: Oro Valley No 6 In Highest Local Taxes In Arizona

High local taxes
Oro Valley local taxes are higher than those of most Arizona cities and towns, according to a study by Kiplinger, a personal finance advisory company. The study, published in September, ranked the 30 largest cities and towns based on the estimated local tax burden.

Marana tops list....but Oro Valley isn't far behind
Marana was the town with the most local taxes. It was followed by the City of Tucson.  Casa Grande, Apache Junction and Maricopa had more taxes than Oro Valley, but not by much.

Oro Valley's High sales tax
Oro Valley's high local taxes are driven by several factors. One is a high sales tax. We've documented this in a recent prior post.

Tucson and Oro Valley lead the Southern Arizona pack when it comes to sales tax. Oro Valley's half cent sales tax golf levy is indeed unique. It's the only one in Arizona.

Oro Valley's high utility tax 
The Oro Valley utility tax didn't exist until 2007, when a 2% tax was enacted. It was enacted during the recession to avoid cuts in town staffing.  It got doubled to 4% in 2011 to avoid having to reduce the police budget, a reduction that would have been in line with other town staff reductions at that time.

The original 2% utility tax was supposed to have been rescinded two years after its inception in 2007.  That never happened. The 2 percentage point increase imposed in 2011 was supposed to have "gone away" when the economy improved. The economy has improved substantially. Yet, the doubled utility tax remains today.

Want to learn more? Read our deceased colleague John Musolf's post:  "Perpetual Life Of The Utility Tax."

Oro Valley’s high water cost
LOVE has previously reported on the high cost of Oro Valley’s water in our posting: "Taxes, Add-On Fees, and an Inverted Rate Schedule Make Oro Valley Water Expensive.” Fees and tax levies add 41% to the cost of water. Water rates have gone up since that post; and with that increase in rates, so have the add on fees. Oro Valley's high water cost was not considered in the Kiplinger survey.

Oro Valley's higher than average county property values per square foot
Oro Valley also has a leadership role in property values. These values are the basis for the property taxes we pay. LOVE has also documented that Oro Valley's property values are higher per square foot than the rest of the county. Our 2015 analysis revealed that Oro Valley's population was 4% of Pima County but its assessed property values were 9% of total county property values. The result: Oro Valley residents pay more property taxes per square foot than other areas. Oro Valley's higher property taxes per square foot was not considered in the Kiplinger survey.

Up Next: Oro Valley Is Growing Too Expensive for Retirees
Arizona has always been a destination for retirees. Oro Valley has been the beneficiary. This fact accounts for why Oro Valley's median resident age is almost 50 years, while the national median age is 38.  Next monday, learn how things are changing.
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John's Place: The Perpetual Life Of The Oro Valley Utility Tax

The primary reason for the enactment of the Town Of Oro Valley 2006 utility tax was insufficient recurring general funds to support 18.5 new positions. The 18.5 new positions had been turned down twice in previous council budget votes because of lack of funds.

The original utility tax rate was proposed at 4%. The 2006 Council placated the taxpayers by reducing the tax rate from 4% to 2% and by adding a sunset clause “promise” to eliminate the utility tax in two years. Tax revenue was forecasted at $1.3 million per year.

There were some immediate unintended consequences from adding this utility tax! The Pima County taxpayers (including Oro Valley residents) pay for the Amphi School District budget. The Amphi School District budget then had to pay approximately $37,500 per year utility taxes to Oro Valley for its schools located in Oro Valley.

The utility tax was extended on March 4, 2009 for “more revenue” needs. So much for any “elimination promises” to taxpayers!

On May 4, 2011, by a 5-2 vote, the utility tax was doubled from 2% to 4% by the Majority-5 (Mayor Hiremath, Council Members Hornat, Waters Snider and appointed Council Member Solomon) of council. The stated reason was “to enhance the diversity and stability of town revenues and to provide needed resources to maintain town service levels."

Again, there were some additional unintended consequences from doubling this utility tax! The Pima County taxpayers (including Oro Valley residents) pay for the Amphi School District budget! The Amphi School District budget then had to pay approximately $75,000 per year utility taxes to Oro Valley for its schools located in Oro Valley.

Incidentally, in 2014, the utility tax still supports many of the 18.5 positions (13 in the police department alone) that were added in 2006.

It seems that, once elected officials get ahold of a funding source, they never let go. Even when they promise to let go.  The revenue source has a perpetual life!

Do you think that the Town of Oro Valley’s experience with their utility tax has been a sterling example for the taxpayers to ponder prior to voting in the Mayor and Council member election in August 2014?
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John Musolf retired to Oro Valley in 2003, moving here from Wisconsin. He has a B.S. in Economics/Accounting from University of Wisconsin and MBA in Computer Management from the University of Phoenix. He has taught Project Management at a number of Universities. He is a “Bucky Badger” and “Packer Cheesehead.” One of his married daughters went to college at University of Arizona and he and his wife visited her in Tucson frequently. John was a management consultant (accounting and computers) and traveled all 50 states as well as the world internationally. He was a political activist in Wisconsin and continued on in Oro Valley. He believes in traditional values. He is an old codger (1937) being a father, grandfather and great-grandfather. He will slow down when he becomes a great-great-grandfather. He has been married to his wife, Judy, for 54 years. His other interests include church activities and extensive reading and researching.
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Oro Valley Council Votes Not To Consider Any Change In The Utility Tax

The Oro Valley Town Council voted 6-0 last week to not direct the town manager to consider a reduction in the Oro Valley 4% utility tax as the town prepares its next 5 year financial plan.

Council Member Waters spoke about the history of the tax and why he, Mayor Hiremath, and Council Members Snider and Hornat doubled the tax in 2010.

Council Member Snider discussed why the utility tax provided useful public funds for public good. She too discussed her reasoning behind supporting this tax.  "Frankly, I've received little feedback saying that people are upset about it," she observed.

Council Member Hornat noted that he would in no way consider a change in the tax.  The town simply can not "afford it."  A1 percentage point change in the tax is worth $720,000 to the town.  "I don't see the point of even considering a reduction."

The council will discuss the tax further in November.

However, at the moment, they will not even consider a change in it.

Watch their remarks.

Tell us what you think.
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Time To Cut The Utility Tax

Wednesday, the Oro Valley Town Council will consider to direct Oro Valley Town Manager Greg Caton to "explore lower levels of the utility tax during the preparation of the 5-year financial forecast."  They are not going to actually consider lowering the utility tax at this time.  They are merely going to ask the town manager to use it as one of the options as he develops the 5-year financial forecast.

"On April 1, 2007, the Town Council approved an increase to the utility sales tax rate, raising it from 0% to 2%. The original ordinance included a 2-year sunset clause. On March 4, 2009, the Council voted to extend the utility sales tax. On May 4, 2011, Council approved a 2% increase to the tax, raising it to 4%. The 4% tax is applied to the utility bills of those Oro Valley residents and businesses that receive water service from the City of Tucson, Metropolitan Water Company and the Oro Valley Water Utility, electric power service from Tucson Electric Power Company, and natural gas service from Southwest Gas." (Source)

The utility tax has served its purpose.  It was voted by the then council to be a 2% tax.  It was later doubled by Mayor Hiremath and Council Members Hornat, Snider, Waters and then Council Member Solomon to pay for more police services.

We've written so often about the unfairness of this action and of the ridiculous nature of the utility tax that our heads are spinning.   We hate the utility tax.  The utility tax is nothing more than a tax on necessities of life: Water, electric and gas.  It taxes the rich.  It taxes the poor.  It taxes struggling families.  It taxes retirees on fixed income.  It has no energy saving benefit.   We recall Council Member Salette Latas telling us that she was in favor of utility tax because it was a "sin tax".   She, too, is wrong. It is not sufficient enough to truly reduce energy consumption.  It is just another burden on the citizens.

Politicians always try to do things to favor themselves for reelection.    Talking about reducing taxes is always a favorite.  It is no surprise that Mayor Hiremath and Council Member Waters put this on the agenda so they can talk about it.  It really means nothing.  But it makes them look as if they're interested in reducing the tax.

Our message to them:  Talk is cheap. It is action that matters.

We have had discussions with Council Member Zinkin regarding the utility tax for many months.    We believe that Zinkin is in favor of reducing this tax now.    After all, as Mayor Hiremath pointed out in his State Of The Town remarks, Oro Valley had a budget surplus in 2013.  The Mayor pointed out in his remarks that Oro Valley is no longer in a budget crisis.  A budget crises was the purported reason that the tax was doubled.

It is time to reward the utility tax payers of Oro Valley, which is most of us, by eliminating this tax.  First, it is time for the Majority-4 Council step up and fix what they broke.  Cut the tax now to 2%!  Then, consider killing it altogether, as was the original intention when it was "sunsetted".

Like we said: Talk is cheap. It is action that matters.
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Oro Valley Water Rates Most Certainly Will Go Up... Up... Up...

The Oro Valley Water Department completed a "Cost of Survey" study as reported at the water utility commission regular session last week.  Studies of this nature are used to determine the rate charged those who use water.   So,  it was good to read the following four study conclusions:

• Residential and irrigation customer classes are meeting their cost of service
• Commercial and master metered multi-family customer classes are exceeding their cost of
• service
• Construction customer class is exceeding its cost of service
• Reclaimed customer class is meeting its revenue requirements

Oro Valley policy is that water rates should be cost of service based and that any change in rates should be gradual. (Source)

This doesn't mean that there won't be an increase in water rates.   Au contraire!

The study recommends that there be no increase in the base rate charged water but there should be an increase in the cost per unit of water "sold" to users.  The study also recommends no increase in the groundwater preservation fee.  

Recognize, that an increase in the consumption portion of the water rates automatically results in an increase in the 4% utility tax.   So, more revenues will automatically flow to the town and you will have less money in your pocket.

The estimated impact on residential consumers is 3.1% or $1.24/month, plus 4% for the utility tax.   The plan is to implement the new rates in January, 2014,  once all hearings are completed and after Oro Valley Town Council approval.

This won't be the only increase.  The towns consultant, CM2Hill, estimates that a 3% increase in water rate rates will be needed through 2017. (Source)  the consultants further estimate that a 10% increase in price results in a 2% decrease in demand.

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Please Kill The Utility Tax...We Want Our Money Back

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Revenues earned from the utility tax are buried deep in the bowels of the 2013-2014 Oro Valley Town manager recommended budget,  In fact, they are buried so deep that they are indecipherable. You cannot find them. They are not listed separately. We can find all other kinds of things like for example the $500,000 that you pay to Comcast gets paid to the town in an annual franchise fee.

 But what we can't find is the amount of the utility tax planned revenue.

So I asked town Finance Director Stacey Lemos.  Her response:  "The 4% utility tax is not segregated separately in the budget. It is included in the Local Sales Tax figure in the General Fund. The amount we estimate for utility tax specifically is $2.9 million for next year."  That's $725,000 for each percentage point of the tax. It is an increase per point over prior years because TEP rates are higher.  That's right.  Whenever your utility bill goes up, so does you utility tax. It's "the gift that keeps on giving."

"The nearest thing to eternal life we will ever see on this earth is a government program."(Source) Our utility tax has reached this level.  The utility tax was enacted by Town Council in December 2006 as a 2% tax.  At that time, a sunset clause was included to end the utility tax in April 2009. (Source) The Town Council in March 2009 voted to extend the utility tax, at the 2% level, with no sunset clause.  Mayor Hiremath and those elected with him on May 4, 2011 decided to increase the tax to a 4% level.  The vote was 5-2 on Council with Council Member Gillaspie and Garner voting "no."

As we look through the budget for 2013-2014 we find ample areas that can be reduced such that the town can recind the 2% increase of two years ago and return us to the voter approved level.  At least, they can give us back the 2%. Give us back $1.45 million.  They can give us back our money.

You think its gonna happen? You think?  Not in your lifetime.  Governments never reduce or eliminate a tax.  Instead, they find ways to spend the money... your money.

Yes. I'm a bit frosted on this. Yes, I am like a dog with a bone. I just can't let go.

This is because the utility tax hurts everyone.  And, yes, its a good reason for those businesses and residences that the town wishes to annex to avoid annexation.  After all, this tax will cost them big bucks.

The utility tax is nothing more than a property tax in disguise and the voters of Oro Valley have never approved a property tax. They never voted for a utility tax.  Perhaps we need to begin action to eliminate this tax.  Perhaps we need a voter referendum.
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Caton To Unveil $94 million 2013-14 Budget Tonight

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Tonight night, the Oro Valley Town Council will consider a conditional use permit for a 27 large single-family residence subdivision in Rancho Vistoso and hold a public hearing on a ordinance amendment that would allow liquor to be sold at Steam Pump Ranch.

In addition, town manager Greg Caton will present the Town Managers Recommended Budget for  2013-14.   Here are some highlights:

• The recommended budget is $93.9 Million, a decrease of 1.6% from 2012-2013
• "The Town Council has made financial decisions the last three years that have put the Town on a sustainable financial path."
• "The Town has reduced staff considerably over the past five years. In FY 2008/09, the adopted budget included 389 full-time equivalent (FTE) positions. The Recommended FY 2013/14 Budget includes a total of 330 authorized FTE positions"
• "This year we are fulfilling the commitment to step and merit pay increases for employees. The Recommended Budget includes $567,000 to implement these increases for all eligible employees in FY 2013/14."

  

  Page VI of Recommended Budget

• "Since the Town has more to benefit from a culture supportive of health and wellness, we have added funding ($20,000) to the health and wellness program."
• "The Recommended Budget includes $1 million for the pavement preservation program in the Highway Fund, which maintains the current condition of our streets and roads. The amount of maintenance expected to be delivered remains at a level which will not allow our roadway infrastructure to deteriorate."
• "The Recommended Budget includes the replacement of eight (8) police vehicles, one (1) general administration vehicle, one (1) truck for Development and Infrastructure Services (DIS) operations, one (1) utility vehicle for Parks and Recreation, and matching funds for one (1) grant-funded Transit vehicle for a total budgeted cost $483,000. The Water Utility will replace two (2) vehicles per the replacement schedule totaling $44,000. In addition, the Recommended Budget includes $108,000 set aside as a reserve for future replacement of the new vehicles purchased during FY 2012/13."
• For Naranja Park: "First, grants will be pursued for further improvements to the archery range, and the Recommended Budget includes $20,000 to assist with matching funds. Second, $40,000 has been allocated to update the Naranja Park Master Plan. It is anticipated that the update will span two fiscal years, with the total project cost estimated at $80,000."
• "An amount of $350,000 has been allocated in the Recommended Budget to construct" a police evidence storage facility
• The recommended budget includes  about $600,000 in technology investment
• "The Town is considering the development of a business incubator/bioscience accelerator in order to further promote Innovation Park and strengthen the Town’s foothold in the bioscience and high-tech industry. An amount of $30,000 has been budgeted for an Economic Feasibility Study of this concept."
• "To extend the Town’s rebranding effort, $10,000 has been allocated for banners to hang from light poles along the Town’s main corridors."
• "To further promote arts and culture in Oro Valley, the Town will continue its partnership with the Southern Arizona Arts & Cultural Alliance (SAACA) to provide programs such as the concert series and other related events."
• "An amount of $70,000 has been included in the Recommended Budget to build a ramada structure" at Steam Pump Ranch
• "An amount of $30,000 has been included in the Recommended Budget to conduct a formal community survey. The last time the Town conducted a community survey was in 2008. General Plan"As the Town prepares to update its General Plan for approval by voters in 2016, the Recommended Budget includes $206,500 to be allocated primarily for outside consultant assistance and public outreach efforts in this area."

A recommendation to return the utility tax to 2%, which was voted upon by the citizens, from 4% which was voted by the prior council, is not included in the budget.

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The Utility Tax Strikes Again

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The Town of Oro Valley is in the process of annexing an area southwest of Suffolk Rd.   The area includes: Tohono Chul Park, Platinum Fitness, the Catholic Church radio station, a motel, medical office suites and residential homes.

Annexation of an area requires that 50% of the property owners and 50% of the property values approve the annexation. To date, the area has not agreed to annexation.  The Town has until April to  finalize this agreement.

The "Law Of Self-Interest" also known as: "What's in it for me?" is the governing rule when it comes to annexation.  The enticement for those being annexed are the road improvements that would invariably be part of any "agreement" and the extension of the Oro Valley police in for the town,

The inducement for the town is the potential for additional sales tax revenues and revenues generated by the utility tax.    The revenues generated by the sales tax are a transfer from the Pima County coffers to Oro Valley's coffers since the annexed area would now be part of Oro Valley.   So to those being annexed the transfer is transparent to them when it comes to the sales tax.

The utility tax that is the  disincentive for those to join our town.   The utility tax is not a pass-through tax.  It is a 4% tax added to every utility bill: Water, gas, electricity.   It is, really, like a property tax. You pay it simply because you happen to own a property that uses these necessary products.   There is no comparable utility tax paid by these potential annexes.   The utility is an added cost of doing business.    It will cost those who annexed thousands of dollars a year simply because their property is now part of Oro Valley.  In effect, the utility tax is a disincentive.

We don't know whether the owners will approve this annexation.  What we do know is that we've never liked the utility tax.  We even hate it when we play "monopoly."  It is nothing more than a property tax in disguise.  It would good if this tax, "sold" to us as a temporary tax, went away.  Unfortunately, utility tax is a tax that keeps on hurting.
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Cut The Utility Tax = Help Our Schools

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In our posting "The 2012-2013 Oro Valley Budget: Something For Almost Everyone" we wrote that the town budget did not include a reduction of the Utility Tax.  As you'll recall, the current council voted to double the Utility Tax in order to pay for police and related services when there was a budget shortfall in 2010.

At the Town Council Meeting on April 18, 2012,  John Musolf suggested to the Town Council that the  2012-2013 Oro Valley Town budget include a reduction in the Utility Tax.  His basis for recommending this is that the budget has a surplus. The Town is also expected to receive $583,000 from PIMA County from transferring the Town of Oro Valley Library from affiliate to branch status.  The Town is expected to save $200,000 by switching Coyote Run from Town of Oro Valley to RTA funding.

Lest you think that John is "whining" about the Utility Tax and how much it costs him individually, you are wrong. Yes. The Utility Tax has cost John and all of us a significant amount of money.  It will continue to do so, especially as utility rates increase.

We are not the only ones who are impacted.  Businesses are also impacted.

Our schools are impacted. For example, the Amphi School District currently must use $75,000 of its budget to pay the Oro Valley Utility Tax.  This reduces the funds that the Amphi school district has available to educate our children.  Certainly, educating our children is a top priority for a "Town Of Excellence."

So, considering all this, John recommended to Council that it consider reducing the Utility Tax.

We agree with John's recommendation. A tax on the necessities like electricity or gas or water is a regressive tax. For this tax to be used to fund items that have absolutely no relationship to the item on which the tax is imposed is both "illogical" and "confiscatory".

Is time for the Oro Valley Town Council to rescind at lease a portion of this tax, helping both our senior citizens, who live on fixed incomes, and the children who attend our schools.
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"Gang Of Five" Show Total Disdain For Oro Valley Residents By Doubling Our Utility Tax

Although we were out of the country with no internet access, we were not surprised to learn on our return that led by Mayor Hiremath, his four cronies -Hornat, Snider, Solomon & Waters, voted to double our Utility Tax to 4%.

This is a total disgrace, especially in these tough economic times, with so many foreclosures right here in Oro Valley; so many out of work, and seniors trying to make ends meet while seeing their Social Security benefits frozen for the last two years.

Without looking at some of the "sacred cows"---such as a bloated police budget, these five believed that a balanced budget could only be accomplished by "zapping" the people of Oro Valley.

Kudos to Bill Garner & Barry Gillaspie----the only two on the Council that showed any concern to their constituents.

Although tax matters are not referable under Arizona law it just might be time to initiate a recall of those that show such disdain for those of us that make Oro Valley our home.

If the people of Egypt, from where we just returned, can toss out Mubarak after 4 decades, I would think the people of Oro Valley could do the same, before this "gang of five" do more damage to our community.

Below is The Explorer article, although the reporter calls is a "construction sales tax," you can be sure, it's a tax on our gas, electric & water bills---all necessities to survive.

Oro Valley Citizens Speak Out Against Proposed Utility Tax Increase

We have tried to point out that this Town Council Majority will vote on a Utility Tax Increase at the May 4 Council meeting.

Please read our April 25 posting: Oro Valley's Proposed Utility Tax Is A Major Contradiction.

At this past Wed meeting, OV citizens expressed their displeasure about this potential tax increase.

Our position: Don't raise the tax: rescind the tax! Find money by cutting the bloated police budget, including the 68 take home cars (and motorcycles.)

Read some of the citizen's comments in The Explorer article here.
http://explorernews.com/news/oro_valley/article_8f828ffe-7053-11e0-920f-001cc4c03286.html

Oro Valley's Proposed Utility Tax Is A Major Contradiction

Talk about a contradiction, what do you think of Oro Valley's proposed Utility Tax?

In 2007, Oro Valley Council initiated a 2% Utility Tax in order to fund 18.5 new positions.

In 2011, Oro Valley Council proposes a 4% Utility Tax although 40 positions have been eliminated over the last two fiscal years.


Excerpt from the Az Star Dec. 14, 2006--

Utility tax to finance new OV staff positions.

The council voted 4-3 to impose a 2 percent utility tax and amend the current budget to include the 18.5 staff positions, which were formerly excluded due to lack of funds. The new tax will become effective April 1, 2007, and remain in place until April 1, 2009.


Excerpt from Oro Valley agenda for May 4, 2011 meeting---

From Stacy Lemos Finance Dep't

EXECUTIVE SUMMARY:
"Staffing levels have been reduced by over 40 positions, or 13%, during that time-frame." (FY 2011/12)


This begs the question:

If the original 2% Utility Tax was for the hiring of 18.5 new employees, 13 of which were in the police department, and Oro Valley eliminated 40 positions in the last two fiscal years, WHY IN THE WORLD DO WE NEED AN INCREASED UTILITY TAX AND NOT THE ELIMINATION OF THE ORIGINAL TAX THAT WAS TO BE FOR ONLY TWO YEARS?

We can expect our detractors to tell us it's because of other issues, like less building permits & less state shared revenue.Let's call "a spade,a spade." This proposed tax is a major contradiction.

Oro Valley Top Stories For 2009

There were dozens of issues (including our budget shortfall) that had an impact on those of us who reside in Oro Valley. From our perspective, here's what we believe were the ten top stories concerning the politics of Oro Valley during the 2009.

We'd like to hear what you think: Whether you agree----or not.

10) Oro Valley Council Votes To Stop All Retail Giveaways.

In an action, we believe was a long time in coming, the Council voted on January 21, 6-1 to stop all retail giveaways. Who was the only "No" vote? Mayor Paul Loomis.


9) Oro Valley Council Votes To Continue Utility Tax

The Utility Tax on our gas, water and electric bills that was passed by the previous council was due to expire on April 1. This tax on water is used to pay for Police. Go figure. Anyway, the tax got extended. Lead by Mayor Paul Loomis, the Council voted on March 4 to continue
this tax.

8) Another Water Rate Hike

Although the Oro Valley Water Director indicated the town didn't need yet another rate hike, he saw fit to ask the Council for an increase at the November 18 meeting. Sadly, only Bill Garner and Salette Latas voted "no," and as such, we will see higher water bills starting in 2010.

7) The Arizona Supreme Court Heard CityNorth Subsidy Case

On September 30, the Arizaon Supreme Court heard oral arguments on the suit brought by The Goldwater Institute contending that the city of Phoenix violated the Arizoan Constitution Gift Clause by offering an out-of-state developer in excess of $90 million in future sales tax revenue for a retail development. We all anxiously await the court's decision which should have an impact on prior Oro Valley "giveaways."

6) Oro Valley Sign Code

The Oro Valley sign code became a very contentious issue pitting, for the most part, the business community and real estate agents against the scientific community and a vast majority of homeowners. The two main points of contention are the lit storefront signs from "dusk to dawn," and the "open house" signs displayed by real estate agents. Hopefully, the council will come up with a compromise, (if that's possible) in 2010.

5) The "Police Issue"

Although you'd be hard pressed to find anyone who is not happy about the safe community we all call home, there are many who don't like the tactics of the Oro Valley Police Unions. Many of us believe the police look out more for their own than they do for the people of the community. Why do we say that? You need look no further than the fact the Police refused to consider a layoff of even one of their own while every other department in town was concerned about our budget constraints.

Too bad Mayor Loomis got his way and "caved in" to the cop's demands.

4) The Library Issue--Double Taxation.

Certainly the "library" was another of those contentious issues. On one side, for the most part were the "friends of library" who had every right to have their voices heard, as they gave so much to the library even being here. On the other side, were many of the taxpayers of Oro Valley. Most of us appreciate the value of having our "own library" but don't like the fact that we incur double taxes in doing so. The issue is: Should the Oro Valley Library remain autonomous and should we be obligated pay double taxes; or should the Library cede control to Pima County, like the other 27 branches in Pima County and save us hundreds of thousands of dollars?

The Pima County Board of Supervisors, by a 3-2 vote, denied Oro Valley's request for more funding for the Oro Valley Library. In addition, the Board also voted to oppose any attempt by Oro Valley to change State Law so the we can have our own library.

3) Paula Abbott Resigns From Council

On November 9, Ms. Abbott abruptly resigned from the Oro Valley Council, "effective immediately." We believe Abbott's action came seven weeks too late, as she joined with Loomis, Carter and Kunisch on September 23 to force our Town Manager out after his eighteen years of dedicated service.

2) Mike Zinkin Runs For Mayor Of Oro Valley.

We couldn't have been more pleased to learn that Mike Zinkin decided to run for Mayor of Oro Valley. Mike brings so many things to the table. His work experience as an Air Traffic Controller certainly allows him to work under the most stressful conditions. His experience on the Development Review Board, including two years as chair gives him the experience to know how to run a meeting. Most important is Mike's demeanor. He knows how to treat people and will work closely with the council & staff. Additionally, Mike appreciates that the people of Oro Valley are its main asset, and he will treat us all with dignity and respect. We are proud to support Mike Zinkin for Mayor of Oro Valley.

1) David Andrews Terminated As Town Manager After 18 Years Of Dedicated Service.

We believe unequivocally, that the vote of Mayor Loomis, Vice Mayor Carter, Council Person Al Kunisch, and the recently resigned Council Person Paula Abbott was the most egregious action ever taken by any council in the history of Oro Valley. We contend that Loomis orchestrated the removal of Mr. Andrews and that he and the other three violated the Open Meeting Law of Arizona by conspiring PRIOR TO the September 23 Special Session in having David lose his job. The final chapter of this despicable action is yet to be written. For one thing, Loomis does NOT deserve the vote of any fair minded person. So let's remind Paul Loomis how egregious his actions have been by voting him out when the ballots hit the mailbox in February.

NIMBY- Cops Say No... Instead-Raid The Piggy-Bank

In a letter published in the Explorer, John Musolf notes the "heavy police protection" present at the March 4 council meeting where council approved the extension of the utility tax. The tax funds "public safety" jobs.Read John's letter: Who’s running OV — police, or council, manager?

In a related letter, OV should find ways other than jobs to save money, the Fraternal Order of Police state that they "...would like to see the town look for ways to cut the budget through programs instead of people." Apparently an accountant ( :-)), the writer added: "We believe that using a very small portion of the contingency fund money and municipal operations building fund money to get through this next year, along with the attrition rate, the 33 employee positions and services they provide to this town could be saved". The writer provides no concrete analysis, using real world numbers to prove that this can be done. What the writer is saying, however, is: "Take the money from somebody else. Just leave us alone."

When it comes to budget cutting, NIMBY applies.

Difficult economic times demand difficult decisions and sacrifices by all. All, of course, except Public Safety.

What Are The Oro Valley Issues That We Are Concerned About?

In a recent comment, a blogger, commenting with the pseudonym "Concerned Citizen" wrote the following comment, addressed to a relatively new blogger, "OV Citizen."

"OV Citizen"
"Thank you for calling Art out. He is a big voice for what I believe is the minority of Oro Valley residents. Keep it up and hopefully more residents will catch on to what is happening here."

Well, it's nice to know that there are those that believe I am a "big voice," but I should remind everyone as to the following statement on our web site.

About Let Oro Valley Excel

There are many issues confronting the residents of Oro Valley, Arizona. Not every issue is of equal concern to every citizen. At least one issue, maybe more, impacts every one of us. Our hope: If we all concern ourselves with the problems encountered by our neighbors, we will have a bigger voice, and hopefully, make a bigger impact on the direction of our town.

Let us briefly note some of the issues (in no particular sequence) that we have and will continue to address. I will leave it up to our readers to determine if we are a negative or positive impact on our community.

ISSUES OF CONCERN

1) Naranja Park Bond Issue --- We took a stand AGAINST the bond in that it was much too costly, and much more than was required. Keep in mind the mayor wanted not $48.6 million, but $160 million for this park bond. The voters soundly defeated the bond.

2) Golder Ranch Fire District--- We were against the merger of Rural Metro Fire Dep't & GRFD that came about after a previous council made a decision to allow GRFD to annex Town Hall. As a result of the subsequent merger, thousands of Oro Valley residents saw their fire service bills escalate by 100% or in many cases, much more.

3) The Oro Valley Marketplace--- We were outspoken critics of a previous council's decision to give Vestar a $23.2 million subsidy without a clue as to what retailers would be coming. As we all now know, Vestar stuck us with a Walmart, hardly the "unique" shopping experience they convinced us was coming.

4) The "Crematorium"--- We sided with the residents in close proximity to this facility as they had major health issue concerns due to the potential mercury emissions.

5) The 60' Hotel at Innovation Park--- We spoke in opposition to the town council's actions allowing a 60' hotel where no hotel was permitted and no structure over 36' was allowed. It was, however, approved.

6) The Utility Tax--- This tax was passed in 2006, after two prior council votes had it defeated and AFTER a budget was approved. The tax, ostensibly approved to hire 18 1/2 new personnel which were requested, but not necessarily required.

7) Utility Tax 2009--- Speaking out, not only on the blog, but in addressing the council in a very "unfriendly" environment of police, family & friends, we spoke in opposition to renewing this tax. Our position was not based on the cost to the taxpayers, but the principle issue that the tax was initially approved for a 2 year period, and now it appears it may be a permanent fixture.

8) The Ford Property--- When a developer threatened to sue individual council members if he was precluded from building a 36' high office complex, almost literally in some neighbors backyard, we publicized this fact. Hopefully, not by anything we have done, but economic conditions will save the neighbor's property values and views, as the parcel has been put up for sale.

9) Library--- Although the "Friends of The Library" and other well meaning residents argued against allowing Pima County to take on the financial liability of our library, we endorsed allowing that to occur, as it would negate what is effectively, double taxation of the citizens.

10) Miller Ranch Property--- When we were advised that a developer was looking for a General Plan Amendment to build an apartment complex on part of this parcel, we helped publicize the issue and advised the neighbors on a course of action.

11) Arroyo Grande--- One of the issues we publicized was TEP's intention to build an electrical substation through the wildlife corridor of the Arroyo Grande parcel, in close proximity to many of the neighbors in Sun City and adjacent communities.

12) Kai Property--- When Marana Council Member Herb Kai proposed plans for a General Plan Amendment for the 271 acre parcel he owns on Palisades road, we took on the issue. Subsequently, the property owner "pulled" his General Plan Amendment.

13) Travel Expenses For The Mayor--- After Mayor Loomis took a trip to visit some European Bio Tech companies at the town's expense, we questioned if this was something that benefited, not the mayor, with a free trip, but the taxpayers. We pointed out, that a full report of this sojourn was never submitted by the mayor. Subsequently, the council voted to put some restrictions on traveling.

14) Oro Valley "Donations"--- We did any number of postings on the merits ---or more appropriately, the lack of merits of continuing to give "bundles" of cash to the likes of TREO, GOVAC, Tucson Convention Bureau, etc. Some of these "donations" have since been eliminated or at least cut back.

15) Bed Tax "Kickback"--- We pointed out that a previous council opted to put in a $900,000 water system, plus a bed tax rebate to entice the Ritz-Carlton to Stone Canyon. The resort pulled out of Oro Valley and moved to Dove Mountain, Marana. As a result of that deal, that council decided to give the Hilton El Conquistador Resort the same 2% "kickback." To date that has cost us in excess of $3 million. Fortunately, this giveaway ends next year.

16) Endorsing Candidates--- We took on a legal challenge from the town when the Town Clerk said we must form a Political Committee as a result of our endorsing two candidates that subsequently soundly defeated incumbents and are presently serving on the council. The town backed off when The Goldwater Institute took up our cause.

Certainly, in the two years, plus that our blog has been a part of the Oro Valley community, we have taken on contentious issues, but continue to always try and offer rational reasons as to why we take a position.

Paraphrasing Abraham Lincoln, we know that "not everyone will agree with everything we say all the time," and we are prepared for the criticism. All we ask, is please try doing so in an acceptable manner.

Thanks for your indulgence. Your comments, as always, are welcome.

Art

Utility Tax Will Continue On A 4-3 Vote

Those of us that were at the Oro Valley Council Meeting this evening (March 4) heard the first speaker of the night. It was John Fink, Chief of GRFD who announced that the room was filled to over capacity, and the doors must remain open.

To say the whole OV police department was in attendance would be an exaggeration----although it may have looked that way.

By my count, John Musolf & I spoke against renewing the Utility Tax. The other ten or more speakers, including some police officers spoke in favor of renewing it and all received a large round of applause from the audience.

That was not a surprise as many were (rightfully) concerned about the next item on the agenda----potential job cuts.

When it came time to vote on the tax, only Paula Abbott, KC Carter & Bill Garner stood up against the vast majority of the audience, and voted "No."

Mayor Loomis, Barry Gillaspie, Al Kunisch & Salette Latas were the four that voted to continue with the tax that was due to "sunset" come April 1.

We expected Loomis & Kunisch to vote yes. We thought Gillaspie and/or Latas would join the other three.

It didn't happen!

Jeff Jones Echos Our Position: Do Not Renew This Unneeded Utility Tax

In his letter to The Explorer, Jeff Jones lets the editor know, the utility tax is "not optional" and should not be renewed. We couldn't agree more.
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Taxes aren’t an ‘option;’ OV ought to kill this one

Mr. Perry,

One might assume you don’t live in Oro Valley since you think the current, and up for renewal, utility tax is “optional” for the payers. I don’t recall seeing an option to pay the tax or not on my monthly bill. In fact, is there any tax that is “optional?” If this, or any other tax were “optional,” how often do you think it would be paid?

While it may be at the “option” of the town council to levy this tax, we don’t have the “option” to not pay it. I hope the current council exercises their “option” to not renew this unneeded tax.

Jeff Jones, Oro Valley

The publisher / editor is an Oro Valley resident. – Ed.

Here's the link to Mr. Perry's editorial of Feb 25.The Explorer Endorses Keeping Oro Valley's Utility Tax