Well over 100 citizens crowded into the Community Center on Oct. 5 at the invitation of Town Councilman Art Tolis, who was hosting a meeting on town revenue options and to discuss the Crystal Lagoon proposal for Fountain Lake.

Tolis presented the view that the lagoon could potentially provide a significant component of future revenue for the town.

Using figures prepared by financial staff for a special council session held Tuesday, Oct. 10, Tolis noted that the estimate for average annual shortfall for the next 10 years is $6.4 million.

The primary expense drivers for these budget figures include items the council has previously established as priority services. Those include public safety – both fire and emergency medical and law enforcement – and pavement management for street maintenance. It also includes an expenditure of $1 million per year into the capital reserve for facilities maintenance and replacement.

Ten-year projections also include construction, equipping and staffing a third fire station in which need may be contingent on development in the State Trust Land.

The town’s two public safety contracts with the Maricopa County Sheriff’s Office and Rural/Metro Corp. are both approximately $3.5 million for the current year, with projected annual increases of 3 percent for Rural/Metro and 5 percent for MCSO, which includes public safety pension cost.

The pavement management program is projected to use $2 million per year for asphalt replacement, which the town may ask voters for bond approval to fund, and another $2 million for enhanced pavement maintenance practices.

Staff is estimating that those major drivers alone would have a 10-year total of $148 million, or roughly $14 million per year.

Currently town revenue comes from local sales taxes and state shared revenues that include a portion of state sales taxes. Except for some voter-approved bonds for Saguaro Boulevard reconstruction, as well as remaining debt on Preserve land and the Community Center and Library/Museum building, the town collects no property taxes.

Tolis told the audience that he is willing to consider supporting a primary property tax that would be appropriate to meet needs. He also asked the crowd their attitude toward the property tax. The response from that audience was significantly supportive for a figure that would raise $6 million per year for the town. On a home with a value of $250,000, that would cost the property owner $337 annually.

There was less support for a tax that would raise $9 million.

Tolis was asked to poll the audience on who did not support a primary property tax and only a few hands went up.

Tolis said he went into the project to research the Crystal Lagoon proposal as one element of a plan to generate revenue for town coffers.

He presented an updated plan for the lagoon proposed for a portion of Fountain Lake. It would provide for a recreational beach and water play area where people could swim, use paddle boats and other items.

The site on the lake has been relocated to the southern end of the area nearest El Lago Boulevard. The new proposal puts the lagoon closer to shops, and existing parking and play areas of the park.

Tolis wanted to make clear that the lagoon proposal is contingent on the results of a feasibility study expected to be ready for Council discussion by the end of the year.

Also, a project of this potential size and cost would need to be funded through bonding, which would be put to voters for approval. Tolis emphasized that the people would get the final say in this plan.

Many of the questions posed to Tolis cannot be answered until the feasibility study is complete. He did address parking, saying a study has identified 1,700 parking slots within a reasonable distance from the park, and that does not include the Plat 208 parking lots in the downtown. Tolis indicated that the Plat 208 property owners are open to discussing a shared parking arrangement.

It was anticipated the meeting on the controversial issues may be contentious; however, discussion proceeded in a generally orderly and respectful manner.