City told finances will be ok

In a meeting that could be labeled less than dramatic, city council convened Tuesday night to hear a couple of presentations from the finance department staff regarding budgetary and fiscal status and an update on the Capital Improvement Plan (CIP) process.

According to Finance Director Roger Kolman, the city will be ok when it comes to its finances. Kolman noted that finances are sluggish at the moment as a result of lagging housing development.

“We need to decide what our absolute needs are and what we can put off,” Kolman said. Saying he hates to use clichés, Kolman noted that the city must make sure to tighten its belts and hold the line where it can. Kolman added that transportation needs will continue to be a major issue for the city.

An update was also given on the status of the CIP. A preliminary draft will be made available to council at its next meeting on Nov. 6. A presentation of that plan is slated for council’s first meeting in December. If all goes well, council would then adopt the CIP, with capital budget for fiscal year 2009 at its final meeting of the year on Dec. 18.

In other matters, council did approve (6-0 vote, Councilman Will Dunn was absent) payment of accrued interest on previously refunded development impact fees as they relate to a lawsuit that had been brought by a homebuilding association against the city. In accordance with the decision handed down by the Pinal County Superior Court and the affirmation by the Court of Appeals, the city is required to pay interest at 10 percent per annum on all disputed fees collected by the city.

Earlier this year, the city lost its appeal of a verdict delivered in a lawsuit initiated by the Home Builders Association of Central Arizona. The lawsuit was on behalf of homebuilders who had development agreements in place with Pinal County prior to Maricopa’s incorporation four years ago.

The fees were obtained from late 2005 through June of this year for those builders affected by the development agreements. The development agreements in question affect the following subdivisions: Rancho El Dorado (Phases I-III), The Villages at Rancho El Dorado and Province.

The city got out its checkbook this summer to write a reimbursement check to the tune of $3,219,472 to homebuilders as a result of impact fees collected by Maricopa.

The homebuilders being reimbursed the accrued interest amount include Brown Communities ($905.80), Canterra Homes ($48,179.93), Centex ($24,068.40), DR Horton/Continental Homes ($6,168.07), Engle Homes ($195,523.38), Hacienda ($9,661.86), Meritage ($70,307.33) and U.S. Homes ($57,194.80). According to Kolman, the final total would come out to just over $412,000.

Finally, council did approve an event known as Hispanic Heritage Day. The event will be held on Oct. 27 at Rotary Park from 10 a.m. to 8 p.m.

As Mayor Kelly Anderson noted, the event pays tribute to and recognizes the numerous outstanding accomplishments, past and present that these individuals have made to the city, the state, nation and the world.

Council will next convene on Nov. 6 at the Global Water Facility. The work session begins at 6 p.m., with the public session slated for 7 p.m.

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