Wednesday, October 5, 2022

Guest View: Mike Zinkin – Population Growth Doesn’t Always Result in Prosperity

There is a somewhat popular belief that in order for Oro Valley to prosper, we have to continue to grow. The feeling is that more people means more sales tax revenue and more State-shared revenue. There is also a popular belief that we (the Town) owe it to the land speculator/investor to approve any rezoning requests. The reasoning goes on to say that if we don’t continue to grow, there will be a need for a property tax.

Let me share with you a contrary viewpoint
• First of all, there can never be a property tax unless the voters approve it. However, once one is approved, the Town Council can increase it at any time. This opens the door for additional revenue, regardless of whether it is actually needed.

• When an investor purchases a property, the Town owes him/her nothing more than to allow development within the purchased entitlement.

What would happen if the Town only allowed for the current zoning entitlements?
For example, if an investor purchased a property where the entitlement was commercial, then that commercial entitlement should remain in place and not be rezoned to residential, regardless if it is low density (single-family homes) or high density residential (apartments).

My position is that there would be NO adverse effect on the Town. Although more people does means additional tax revenue and additional State-shared revenues, it also means more services that the Town must provide. Examples are increased staffing in the police department and increased road repairs/pavement preservation/widening due to the increase in traffic.

Currently there are entitlements in place for, at least, an additional 1000-1500 homes. Using an average of 3 people per home, there are enough current entitlements to bring in an additional 3000-4500 residents.

Development fees are one-time revenues
Yes, a development brings in application fees and permit fees. But these are one-time revenues and are to be spent on one-time expenditures. These fees do not enhance the General Fund, rather they enhance the Capital Improvement Fund. These fees do not pay off bonds or pay for employees, such as additional Police Officers that are needed as the population increases. These funds pay for Steam Pump Ranch upgrades, vehicle replacements, etc.

Without amended entitlements (that increase our population) the Town can reduce the size of its government
We can reduce the size of our planning staff, and we will not need all the assistants that we currently employ. Also, the General Plan becomes a document that reflects the desires of the citizens rather than the desires of land speculators/investors.

By not allowing for amended entitlements, the Town can still grow and prosper and echo the desires of its people

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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