Fountain Hills has enjoyed one of the lowest costs of government and services in the Valley. Our operating costs of $0.71/per capita and employee count of 4.73/1000 are very low compared to other towns. However, these figures are not sustainable because we need to invest, which requires consistent revenue.
Our two biggest sources of revenue are sales tax (41 percent) and state shared revenue (26 percent). That’s two thirds of the operating budget (FY17 financial report). Neither revenue stream is a steady, long-term solution.
Sales tax first. Where did you buy your last vehicle, sofa or TV? Phoenix, Scottsdale, Chandler? No revenue for Fountain Hills there. Face it, other than gas or groceries we buy everything someplace else. And, with half the residential properties in Fountain Hills empty 50 to 75 percent of the year (think single family and condos) the neighbors aren’t helping much.
You must be a member to read this story.
Join our family of readers starting at $5 for your first month and support local, unbiased journalism.
Click here to see your options for becoming a subscriber.
Register to comment
Click here create a free account for posting comments.
Note that free accounts do not include access to premium content on this site.
I am anchor
Idyllic community
Posted
Jeff Esposito
Fountain Hills has enjoyed one of the lowest costs of government and services in the Valley. Our operating costs of $0.71/per capita and employee count of 4.73/1000 are very low compared to other towns. However, these figures are not sustainable because we need to invest, which requires consistent revenue.
Our two biggest sources of revenue are sales tax (41 percent) and state shared revenue (26 percent). That’s two thirds of the operating budget (FY17 financial report). Neither revenue stream is a steady, long-term solution.
Sales tax first. Where did you buy your last vehicle, sofa or TV? Phoenix, Scottsdale, Chandler? No revenue for Fountain Hills there. Face it, other than gas or groceries we buy everything someplace else. And, with half the residential properties in Fountain Hills empty 50 to 75 percent of the year (think single family and condos) the neighbors aren’t helping much.
State shared revenues are a declining income source. They’re based on population. How are we doing compared to Chandler, Gilbert, et al? Not well. We’re landlocked and can’t grow like the other Valley towns. Subsequently, we’ll see a smaller and smaller piece of the pie. Not a reliable, long-term solution.
If we had eight car dealers, two major shopping centers and a couple of manufacturing plants this discussion would be moot. Then again, how would our quality of life be affected having those entities?
Fountain Hills is a wonderful, idyllic community and we like it that way but, at this point in time, we need to pay a small price to keep it one of the most desirable zip codes in the Valley. Shrinking revenue, even with our low cost of government, is catching up with us. Let’s focus on the big picture and the need for a long-term revenue stream. Please vote yes.
Comments
No comments on this item Please log in to comment by clicking here