By Jean Jenks, Sedona Resident
(February 16, 2017)
Hello Mayor and Councilors,
During Financial Services Director Cherie Wright’s presentation she stated: “Our population is pretty much steady, and the rest of the state is increasing at higher rates than we are.” What is City Hall doing about this bad news? As to why it’s happening, there’s more culprits than Sedona’s deteriorating quality of life and woefully inadequate roadway infrastructure.
Sedona’s inordinately high cost of living is rising! Last year Sperling’s Best Places [to live] reported it at 29.20% Higher than the U.S. average when compared to the rest of the country, and today it’s listed as 37.80% Higher. Raising our highest-in-the-area sewer rates 4% next fiscal year, or increasing the excessive City sales tax, or something else, will be even more REDUCTIVE, adversely impacting Sedona’s economy and ongoing business weakness among other things.
Further, by using public money received from the City coffers to promote its members only (to a large extent outside incorporated Sedona), the ‘Sedona’ Chamber of Commerce is taking customers away from non-member, in-City businesses. In addition to harming in-City businesses, this M.O. creates a loss to the City’s tax base. Likewise with the extensive ‘Sedona’ Chamber of Commerce Visitor Center numerous referrals to its members located outside the City limits. As Larry Harmer–stated to be the City’s new Economic Development Consultant at the time–informed the Council during its meeting on January 28, 2015, the Chamber is in business to represent its members. And look what is taking place. Sedona is being oversold and over-commercialized and is no longer the magical destination it once was.
Where, I respectfully ask, is the independent assessment of how much the City has gotten back in additional sales and bed taxes that would not have otherwise been received during the last three fiscal years? Recovery from the recession, low gas prices, hotel outlays for advertising, retail sales taxes paid by residents, franchise taxes, State shared revenues, Chamber administrative charges, inflation, foregone taxes as per above, spending down the reserves, last fiscal year’s revenue deficit of $3,644,514, etc., all warrant factoring into the calculation. Meanwhile, there are still commercial vacancies throughout town, and the KFC/Taco Bell closed and was put up for sale recently.
By the way, having a twelve-year Long-Range Forecast is of little benefit, if any. There was abundant financial data City Hall didn’t have. Various statements made by Financial Services during the Budget Retreat Financial Forecasts discussion: “Those are just something to put some numbers in there…Until we have something to go on I really wasn’t sure what to put in there…I wasn’t sure what number to put in there…I wasn’t really sure what I should put in there.”
Sincerely,
Jean Jenks
Sedona, AZ
P.S. Regarding the January 24, 2017 Council discussion re the FY 2016 Annual Expenditure Limitation Report, one Counselor asked about the difference between the Voter-Approved Alternative Expenditure Limitation of $52.8 million and the Amount Subject to Expenditure Limitation of $36.4 million. The largest difference by far was the $9,300,000 General Fund wash entry re the refunding and refinance of the Series 2007 Excise Tax Revenue Bonds. Repayment of the principal was reported as an expenditure, while the bond proceeds were reported as financing sources. The original amount the voters approved during the August 26, 2014 AEL Election: $34,436,601 for FY 2016-2107, $32,472,137 for FY 2017-2018, $34,181,020 for FY 2018-2019.
9 Comments
Pray tell, why is it “bad news” that Sedona’s rate of population growth is less that than for the rest of the state, heavily influenced no doubt by the major metropolitan areas ?
I would like to know why the city thinks it needs to subsidize advertising with my tax dollars to the Chamber to promote tourism. Unless someone is living under a rock, just about anyone who knows about the Grand Canyon, knows about Sedona.
Tourism seems to be a double edge sword, generating sales to local businesses but also clogging up our roads and causing additional cost of manpower at the police force.
If the local hotels and businesses want to promote Sedona with their advertising budget, that’s fine but I don’t feel I need to contribute. When is the City Council going to wake up?
James,
please tell us all how you contribute to the city bed tax?
Sedona citizens you pay no city tax, only sales tax…. And a few fees for service.
I just want to make sure you do not confuse readers with miss information, and we don’t want the readers of Sedona Business to think you’r a NIMBY.
Steve Segner
James,
Steve Segner of the ‘Sedona’ Lodging Council provided substantial financial support to get people elected in 2014. He gave the “Sandy for Mayor Campaign” $1,600.00. David Scott Harkey of Owens Harkey Advertising, hired by the ‘Sedona’ Chamber of Commerce, gave the “Sandy for Mayor” campaign $1,000,00. The last minute Red Rock News editorial/BS praising Sandy and opposing her opponent ensured there was insufficient time to get Letters to the Editor published before the election date. Any surprise Sandy Moriarty ran unopposed in the August 2016 mayoral election?
I agree with you 100%. Local hotels and businesses need to pay for any and all desired advertising.
Yes, and proud of it, great mayor, we should all give to get people we respect elected…..
and look Lodgers Tax Information
CITY OF SANTA FE LODGING TAX COLLECTION
PURPOSE
To impose a tax which will be borne by persons using commercial lodging accommodations. The tax will provide revenues for the purpose of:
advertising, publicizing and promoting facilities and tourist attractions
acquiring, constructing and maintaining tourist attractions and recreational facilities
and for all other legally permissible purposes including those purposes as authorized in subsection 18-11.15 of this section.
Things are not rosy in Santa Fe @ steve segner
we know people living there. City has no money and crime is up.
You’re not telling the truth Steve. The state controls “lodgers”
The CITY of Santa Fe runs the marketing program!!!!!! State collects taxes for county so there are no free rides. Unlike Sedona where the in-city pays for those in outside the city limits benefit without contributing to the tax base. ALL those Lodgers outside the city limit ride for FREE!
The state audits and controls the use of taxpayers’ money, so no freebies to chamber members.
“Revenue. Every vendor providing lodging within the county or
municipality that imposes a lodgers’ tax is responsible for collecting
that tax. If the county or municipality collects more than $250,000 in
lodgers’ tax revenue, the governing body must conduct random
audits of vendors to confirm compliance. ”
Thanks for bring Santa Fe up because I see more. Santa Fe only spends 1.2 on marketing and guess what? They bring in 43% more lodgers tax than Sedona. HAHA they prove that the city employees can do a better job.
Thanks for bring Santa Fe up because I see more. Santa Fe only spends 1.2 on marketing and guess what? They bring in 43% more lodgers tax than Sedona. 2.5 million more in revenue to the city !!!!!! HAHA they prove that the city employees can do a better job.
Actually Steve it’s more than 2.5 million in taxes as Santa Fe assumed that ALL rooms in the region had to pay the 3% lodger tax. That is what is wrong. Clearly Santa Fe get much more for less by doing it themselves.
Not surprised about KFC. It is a loss. It is a nice facility that can’t be seen. The signage sucked, blended into the mountain.
Should of had Lisa Dahl design it like she did for Pizza Lisa. Nice, bright presentation.
The quality of life in Sedona is waning. Chamber could care less, they’re on the city gravy train.
Naturally it’s bad news that Sedona’s rate of population growth is less than for the rest of the state, Bruce. According to City Finance Department reports, Sedona’s population has diminished from 11,436 in FY 2008-09 to 10,388 at the end of 2016 and is going nowhere. Further, Sedona’s median age has increased from 50.5 to 58.0 during this period.
Here are five troubling issues:
1. The rest of the state is weathering the Great Recession better.
2. Currently, the SFD is pushing GO-Bonds, and the City is seriously considering potential assessment districts to address roadway infrastructure. When and if either of these materialize, property owners will see a much greater increase in their County property tax bills than otherwise, due to the fact that assessment and/or bond totals will be divided by a lesser population number.
3. Sedona is fast becoming a City for old people.
4. The ratio of tourists to residents is increasing; likewise the ratio of hotel guest-rooms to residents. This serves to boost the Chamber of Commerce and Lodging Council’s entitlement mentality. Now the City plans to “structure and memorialize” its so-called partnership with the Chamber (see 3-01-17 City Council Meeting Agenda). The Chamber is currently looking to use $1.125 million in taxpayer money (marketing funds) to purchase the old bank property at 401 Jordan Road, mainly for the benefit of the Chamber and other private businesses. I.e., for a Staging Area for Tour Operators, Bus/Auto Parking, Sustainability Messages [very laughable], etc.
5. There are underlying changes in the economy, and Sedona’s small town atmosphere is deteriorating. For one example, large out-of-state corporations– which will put locals out of business and take profits with them–have found Sedona. The most recent: Marriott, Starbucks, Office Max. Meanwhile, a three-story, 120 room Oxford Hotel with restaurant, conference center, etc., is a current project listed on P & Z’s web pages.