Candelaria: Government by the numbers

I have begun the process of delving into the budgets of the corporation known as the city of Maricopa. I'd like to share a few observations I've made so far with my fellow citizens and pose a couple of questions to ponder.

Overall city spending, between 2010 and 2011, increased 7.25 percent from $36 million to $38 million. In 2012, the proposed total spending is nearly $93 million, an increase of 142 percent from 2011.

City spending on General Fund obligations (cost of running of the city) increased 13 percent from $25 million to $29 million. Projections for 2012, peg General Fund spending at $39 million for an increase of 37 percent from 2011.

Revenues in 2010, including property tax, were $21 million for a total budget deficit of $14 million. After a 58 percent increase in the rates of property tax, revenues in 2011 stood at $25.85 million creating an additional deficit of $12.4 million. In two years, the total budget deficit is a staggering $27 million.

About seven million of the total two-year deficit is General Fund obligations. The other $20 million is capital fund expenditures. The majority of these capital expenditures are earmarked for the 51,000-square-foot citadel, our local leaders plan to erect to “promote business.” Another large capital project is the aquatics center, to be funded by loans guaranteed by the city's ability to levy taxes on property owners.

In 2010, the city borrowed $20 million against the park bond to facilitate these expenditures, and listed it as investment income.

From 2010 to 2011, expenditures on debt service for money borrowed went from 0 to $806,324. In 2012, they are projected at $1.8 million. That's an increase in debt service of 118 percent in one year.

In the coming year, the property tax rates are set to increase by an additional 31 percent from 2010. This equates to an 89 percent increase in total property tax rates within two years.

To summarize, in the absence of the facilities yet to be built, it seems the city is already deficit financing the operating budget by arguably playing a financial shell game with park bond money. At the same time, they are nearly doubling the property tax rate on families and businesses to help fill the shortfall caused by sagging property values.