Marchione: Taxpayer continues rally for reality–against Maricopa’s Question #5

Fellow citizens of Maricopa,

Question #5 seeks voter approval for the city to issue bonds for construction of two regional parks, a new recreation / sports complex and a main library over the next several years. The amount in bonds issued over time would be $65.5million, but the estimated cost of our tax dollars to repay those bonds would be $107million. This is arguably one of the worst times to be adding additional financial burden via taxation to home and business owners. The proponents of this bond are not telling you, the taxpayer, what this really means to your bottom line.

Simply put: If you vote ‘yes’ on question #5 and are a residential property owner in the City of Maricopa, regardless of assessed value, you will likely be paying as much as 56 percent more in city taxes when this bond is fully funded. The “cost per taxpayer” would be as high as $327.53 annually based on a home value of $250,000, even substantially more for commercial property owners. That’s a significant burden for our already financially stressed local businesses striving for “sustainability” in an area where retail rents are higher than in Scottsdale. We can’t afford to scare away potential business or lose entities that contribute to our local economy.

It’s obvious how much people care about Maricopa’s future, and we would all like to see more parks, a state-of-the-art library, recreational facilities, etc., but asking taxpayers to tax themselves even more is just not an acceptable option in this economic climate, and it expresses disconnect between the needs of the community and the city’s wants. Families are already cutting back, and this isn’t 1979; it’s 2008, and there’s a lot more than just high gas prices and a stumbling stock market affecting the ability to provide for our families. Local families shouldn’t buy into this measure believing that the city has a crystal ball and can tell us where the market is going to be in two or three years. Not one person in favor of this measure has been able to tell me why it has to happen right now. Not one! What’s the huge rush on this $65million – ‘All or Nothing’ approach?

It’s important to realize that not all Maricopans can afford this bond measure right now. We’ve got to consider low-income families struggling to make ends meet and those on fixed incomes where every dollar makes a difference. We’re not talking about disposable income here either. We’re talking about the basics: food, clothing and the ability to keep a roof over their heads.

Just because citizens noted in a questionnaire, or during a phone survey, that they would like to see additional services in the city, does not mean that they are ready to give the city permission to spend $65million. And, according to the Citizen Attitude Survey recently conducted in the city this past August, what was it that those surveyed said their top two priorities/needs were? Widening of SR 347 and library construction and expansion. Well, the new library has broken ground, and SR 347 is an ADOT project. The results are clearly an indication citizens would like to see many of the items included in the proposed bond, but not an indication that they’re ready to pay for it with more taxes.

It is not unreasonable to think this bond could be revisited in 2010. It is not unreasonable to ask that various elements be funded and completed in stages with separate bond initiatives. It is not unreasonable that alternative funding resources could be researched and pursued. Do we want to work for City Hall if we don’t actually work in the building? Has anyone looked to see how many homes are in foreclosure or pre-foreclosure in the city at this very moment? Look it up – it’s an astounding number.

Maricopa is experiencing a housing and financial crisis that’s packing a real punch, primarily an increase in foreclosed homes and decreasing housing prices. Comparing Maricopa to surrounding cities doesn’t give a true picture of the situation because we’re still a young city with significant growth pains and development challenges. There’s no question the whole country is feeling the impact right now, but many places have a larger business and industrial base as well as a significantly higher population, both of which generate sales and other tax revenue Maricopa can’t.

Some points to remember / consider:

1. New parks: The City’s current budget has already allocated $2.3 million for the land acquisition of 10 additional acres, expansion and construction at Pacana Park. This includes two, new lighted football/soccer fields, 194 parking spots and a playground.
2. New (main) library: Plans call for another $15million dollar library with bond money, while the new $1.9 million library, at 8,000 square feet, has just started construction.
3. $1.4 million lost to the city in non-secured investment bonds from reserves due to the recent fallout of Lehman Brothers.
4. Higher cost of living over the past year, with noticeable increases in the cost of gas and food. Many HOAs are increasing dues in 2009 because association costs have increased, and they’re all facing increased bad-debt write-offs from foreclosures.
5. Utilities and associated surcharges are rising as local companies try to cope with the unexpected sharp rise in operating expenses.
6. DIFs (Development Impact Fees): The city relies heavily on DIFs. Actual numbers are well below projections (100/month). Reduced DIFs, combined with limited sales tax revenue from existing business and lost revenue from failed or lack of new business, means the city will find itself in a position of financial distress.
7. Hiring freeze for Maricopa, which is a strong indication of financial conservation. There’s no hiring for new/open positions, and many vacancies aren’t being filled. What’s next? Another re-structuring? Layoffs?
8. 2008 Pinal County taxes: Recently, we received our 2008 property tax bills. Homeowner property was valued at substantially more than some foreclosure sales on the same street! Do the math… many homeowners are facing this reality right now, and it’s hitting us hard.

I support Maricopa’s goals and embrace plans for our “prosperous future,” but I am looking out for my fellow taxpayers, and I’m willing to bear the brunt of public criticism if necessary. Regardless of your personal position, the publicity and debate generated on this issue serves to increase awareness and heighten understanding of the proposed bond measure. Ultimately, that tends to produce informed voters.

Maricopa is currently debt-free; a great position to be in when looking at current financial and real estate indicators. Let the city stay debt-free a while longer, and let’s get to a point where increased revenue and development are realities. Also, we need to keep in mind that we have other options.
· What about smaller bond amounts for fewer facilities?
· What about maximizing use of and sharing existing facilities?
· What about being fiscally conservative until we’re sure we can build these facilities and also be able to hire personnel to staff and maintain them?

I think many projects like those proposed in the bond measure are worthwhile and would definitely enhance quality of life in Maricopa, but this is the time to focus on priorities and needs. I don’t see any negative effects of taking a short-term hiatus before diving into long-term debt, and I hope the majority of voters agree. I firmly believe in waiting until you can afford (in every sense of the word) what you want, especially if you want bigger and better. It comes down to fiscal responsibility. I manage my household on that principle, and I expect nothing less from my city.

I urge you to join me in voting NO on Maricopa’s Question 5 (The Bond Measure).

Respectfully, Alan Marchione

Alan Marchione is a former U.S. Marine, former Correctional Officer, father, and active member of his community. He currently serves on the City of Maricopa Public Safety Advisory Committee, is Vice-President of the Villages at Rancho El Dorado Homeowners Association Board of Directors, and a graduate of the City’s first Citizen’s Leadership Academy.

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