As a former superintendent of schools, I lived with tight budgets and appreciate the frustrations our town council must address. I reviewed our town 2018 budget and the request for a property tax.
Our town budget lacks adequate growth for operational funds yet continues to expend reserves on unplanned capital uses. The council must budget for maintenance of roads and only use limited reserves when absolutely necessary. New capital expansion should be bonded and paid for from new funding.
Instead of requesting a bond to build a new fire house under proper bidding procedures, the council spent $3.5 million from reserves to pay for this capital asset. Now we find that an additional $600,000 is needed to supplement this bid from limited reserves. Why? In 2018 the council also moved another $6-$7 million from reserves for unspecified capital expenses.
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Posted
Robert Gomez
As a former superintendent of schools, I lived with tight budgets and appreciate the frustrations our town council must address. I reviewed our town 2018 budget and the request for a property tax.
Our town budget lacks adequate growth for operational funds yet continues to expend reserves on unplanned capital uses. The council must budget for maintenance of roads and only use limited reserves when absolutely necessary. New capital expansion should be bonded and paid for from new funding.
Instead of requesting a bond to build a new fire house under proper bidding procedures, the council spent $3.5 million from reserves to pay for this capital asset. Now we find that an additional $600,000 is needed to supplement this bid from limited reserves. Why? In 2018 the council also moved another $6-$7 million from reserves for unspecified capital expenses.
The town owns facilities and equipment for the fire department and yet contracts to others to operate these services. Today, the town budget has $116 million in assets and reserves. The council should be researching how other small towns have reduced their cost of services. Careful research may indicate that Fountain Hills would be best served with its own fire personnel. The council should not continue the practice of contracting for services without comparing the total cost of personnel and profit margin of the contractor.
Approving a property tax of $7 million per year for an $18 million budget seems inappropriate. The most cost-effective solution is to request a bond issue at low current interest rates that would be used for specific capital purposes with repayment over a definite length of time.
We all want what is best for Fountain Hills based on prudent planning, not emotion-based decisions.
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