By Henry Twombly, Sedona Resident
(February 24, 2018)
If an independent auditor were to do a State of Sedona address, like the President does the State of the Union, it might go something like this… “The governing bodies of the city – the City Council, the Sedona Fire District, and the Sedona Oak Creek School District – spend more money than they receive. The standard concept of a balanced budget seems to elude them; and therefore their policies and subsequent actions can be deemed to be fiscally irresponsible.”
Just as the quality of SOCSD schools were graded with a string of Cs and one B, the fiscal management of our governing bodies would be given Ds and Fs. Numbers do not lie…unless they are tampered with to show otherwise. Who picks up the slack for this mismanagement? We the residents and thus each of us is $3,680 in per capita debt, 10th highest out of 91 cities. This might partially explain why 27% and 25% of our tax bills can be attributed to the SFD and SOCSD respectively.
Apparently we residents have had enough, for we had the fortitude and common economic sense to vote down the SFD’s $18m bond last November. In a recent SRRN article “Fire district budget season is in bloom” (2/7/18) the Chief has already begun his PR campaign to assuage and woo residents that the SFD has crafted and will develop “fiscally responsible” budgets, noting “Like all public sector local government budgets, personnel costs make up nearly 80 percent of the budget,” the total of which is approximately $17m. Moreover due to “pension reform legislation, which will have long-term savings to everyone [this goes unexplained[…a correction to put reform on track…[this] resulted in an additional cost of more than $700,000 to SFD last year.” Thus logically to reduce costs SFD would reduce personnel (not increase them as it did last year). The standard fear-mongering comeback to this assertion is that such measures would jeopardize the safety of the residents. “Our explicit goal each and every year is to achieve the leanest budget that can ensure sustainability for emergency service.” This and future articles are to make more palatable the inevitable mill rate increase and higher budgets that are sure to come.
The SOCSD is also wrestling with budget problems. Actually it’s wrestling with much more…”with many looming budget cuts and state financing issues,” Big Park principal Debbie Jones said (“Obstacles Slow Strategic Plan” SRRN 2/7/18). “With all of this, the search for a new superintendent, the need to address the [budget] override and multiple projects, teachers are working on curriculum mapping, salary committee, creating STEM and IB units of instruction, and all of the classroom needs – it is hard to keep the focus on looking forward and planning for a better future.” It’s self-evident that SOCSD is dealing with too much and needs to simplify. The crucial issues seem to be a decrease in funding and enrollment and the need to increase teachers’ salaries. The district is losing 66 students this coming year and enrollment will only be 860 students. Less students means less money from the state. So the district is hoping to attract more families to Sedona. But that seems unlikely since according to Sperling’s Best Places Sedona’s cost of living is 43.9% higher than the national average; that there are not enough professional jobs here to support families; and that Sedona will always be a tourist town. Even the SOCSD strategic planning committee discovered that “In the Verde Valley, Sedona is the only community where the average house is more expensive than a resident with an average income can afford to buy” (“SOCSD team dives into data” SRRN 1/19/18).
I commend the SOCSD Board for doing their best to balance their “maintenance and operations budget of $6,405,327.99, including the 15% budget override of $828,989.82 and $49,739.39 in Proposition 123 funds.” But “The district needs to cut about $1.5 million from its current expenses to make next year’s projected budget work.” (“SOCSD starts talking budget cuts” SRRN 2/16/18). But it doesn’t look like this will happen, though the Board has come up with “a little less than 25% of the needed cuts.” My radical suggestion is that the Board sell both elementary schools. Then transform the current SOCSD headquarters into a combined elementary school. After downsizing its admin staff, SOCSD could rent/lease a new HQ space (or save part of its West Sedona school for that purpose). The sale of these properties and the decrease in admin staff should help balance the budget and hopefully provide enough to increase teachers’ salaries which is long overdue. The Board should also cancel the STEM and IB programs that create curriculum upheaval and unnecessary stress on teachers and staff. More importantly it needs to focus on and improve the basics in the curriculum and raise their ratings up to As and Bs. Only some out-of-the-box thinking can get the SOCSD out of its quagmire. In any case residents should definitely expect to vote on yet another budget override this fall. Actually we shouldn’t be voting on this for another 2 years; but SOCSD wants to do it now to keep its 15% levy, which would otherwise decrease to 10% in the last 2 years of this current override.
The City’s finances are not much better than those of the SFD and SOCSD, though the Council and staff would tell you otherwise. According to the Proposed Budget 2017-18 “the budget is ‘balanced’ between expenditures and revenues set aside for capital projects, use of restricted grants, and donations, and the reduction of fund balances exceeding policy reserves.” This is smoke-and-mirrors accounting. Various city government departments charge the Wastewater Fund for related work they do for the plant; many of these charges appear inflated, especially since the City in general outsources much of its work. Instead of lowering our rates, the City uses the WW fund (to which only 60% of residents contribute) as a surrogate property tax, a slush fund from which they can siphon off funds. Moreover “economic development increased $900,000 due to a reclassification of the visitor center support [to the Chamber] of $400,000 to economic development, an increase in destination marketing of $400,000 [to the Chamber] and the implementation of an economic development program that focuses on other industries besides tourism.” (“Sedona gets a clean audit” SRRN 1/26/18). What other industries can possibly exist in Sedona? This is a pipe dream of the powers that be and a total waste of time and money, especially since rumor has it that the Economic Development Director is working closely with the Chamber.
More importantly will be the vote this August 28 for or against Home Rule, which gives the City the option to increase its budget to as much as $52 million. It’s a virtual blank check; and the City came close to that amount, budgeting $47.76 million in this year’s budget. In 2014 we voted for Home Rule and the next four years’ estimated budgets: $34.4m ($25.4m); $34.4m ($27.0m); $32.4m ($23.1m); and $34.1m ($21.9m). The numbers in the parentheses are the limitations that state law would’ve required had there been no Home Rule. Home Rule is the only check we residents have on the City’s profligate spending; and the CIty knows this and thus schedules the vote in August when there are less people in town. The official reason for that date is in case there needs to be a runoff, then it can happen in November. But it’s really a strategic ploy to ensure a Yes to Home Rule. The City lobbies and makes sure that everyone and every organization that benefits from its largess votes Yes. Out of 7318 registered voters (5,118 in Yavapai County and 2,200 in Coconino County, only 1,772 voted in the 2014 Home Rule (Proposition 429) election: 1,190 Yes and 582 No. So all you Snow Birds, be sure to get your absentee ballots before you leave town. Call the Yavapai Elections Commission (928 771-3250) or the Coconino Elections Commission (928 679-7860). Please don’t let the fate of Sedona be determined by voter apathy.
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15 Comments
Many Thanks for another Great article telling us all the real facts.
Budget trickery should not be condoned by any of the high rate departments.
Lets vote to stop it soon.
Thanks, Henry.
We have our work cut out for us.
Henry, your comments seem light on facts. Public entities in service have obligations as well as constraints. Do you know how many cities in Arizona use Home Rule? Do you think we should be legislated into sticking with a 1980’s budget? Do you in your own home, Henry?
Informative article here:
https://www.dcourier.com/news/2017/apr/13/editorial-its-time-end-home-rule-voting-arizona/
Lin, thanks for referencing the Courier article. I’d be fine with Home Rule if the Council would balance the budget in the standard way where revenues equal expenses. Do you know of any towns of 10,000 that give their Chamber of Commerce nearly $3 million? I didn’t understand your last question “Do you in your own home?” Do I what? Thanks for your feedback.
What I meant, Mr. Twombly, in my earlier question about whether the city should be forced to adhere to its 1980s budget is, Do you yourself stick to your 1980s budget, or, as prosperity as attended you, have you adjusted your spending as necessary? Voting down homr rule means Sedona will have to adhere to the 1980’s budget formula, and be unable to spend additional revenue. What would you like the city to do with the excess revenue? Well, it doesn’t matter, because legally they would not be able to spend it! On anything!
In addition, the City does not give the Chamber of Commerce nearly $3 million. The Chamber also oversees the tourism bureau, which might be a separate entity in other cities, or perhaps should be put out to bid. As it currently stands, it seems the Chamber’s knowledge and experience cover a lot of the ground an outside agency would have to spend to start from scratch.
Mr. Twombly,
Your insights and info are dead on. Run away public service entities like the fire and school districts are testimony to the first law of public finance, namely, we can always raise taxes to cover ever expanding public entity spending.
Here is another vote against Home Rule and its enabling of additional run away public spending.
Do any of our public service entities, including the City of Sedona, ever live within their means?
Lin Ennis says:
February 26, 2018 at 2:02 pm
Henry, your comments seem light on facts. Public entities in service have obligations as well as constraints. Do you know how many cities in Arizona use Home Rule? Do you think we should be legislated into sticking with a 1980’s budget? Do you in your own home, Henry?
Informative article here:
https://www.dcourier.com/news/2017/apr/13/editorial-its-time-end-home-rule-voting-arizona/
Reply,Lin this is the Sedona “T “party, they just want to starve government. Sedona income is way over budget, Sedona has not city property tax and they want to take away income from the city ? why? it just kills them that government has money to fix roads and up grade services, business produce profits, governments produce services, the.05% to fix roads is a deal 80% will be paid by visitors not locals.
Some in this town want to stop growth by stopping goverment…
Mr. Twombly,
Thank you for your interest in the Sedona public school education system. As a school board member, I’d like to invite you to attend our school board meetings. They are open to the public and quite often, I find the paper can’t cover all of the information in their articles and much more conversation takes place as well as in-depth presentations to really highlight the issues, updates, as well as share the successes of our students. This link is where the agendas are posted: . The district also attempts to live broadcast each school board meeting in case someone is unable to attend in person.
If you’d ever like to have a face to face conversation about some of the challenges regarding school funding, what we have going on as a district- including the new superintendent search, or what we’re doing to keep students safe, provide advanced learning opportunities through partnerships with Yavapai College, and so much more, please feel free to email me and we can set up a time: hermen@sedonak12.org. I’ll look forward to meeting you in person one day.
Thank you,
Heather Hermen
School Board Member
Well, well, well. It looks like the coming elections are going to bring some badly needed fireworks to our sleepy little town. We can see the battle lines forming already.
This election might be one whose outcome will be determined by moral stance and values rather than campaign promises — Liberals on one side and Conservatives on the other.
On the Home Rule question, it almost seems hypocritical that Conservatives would support rules foisted upon this little town by the Big Ol’ Boys in the State Legislature. Talk about bending over for big government. Hey Sedona! We the state in our ivory towers know what’s best for “we” the people so obey and dare not take your budget into your own hands because we know better. Ugh! How could any self-respecting Conservative agree to Big Brother’s rule rather than our own?
Looking into my political crystal ball I see that the issues our city council candidates will grapple with will not be limited to traffic congestion, affordable housing, infrastructure improvements, homelessness and blah, blah, blah.
Nope. Voters will need to asses the moral fiber of the candidates before voting and this judgement will be based on the candidates’ positions on broader national and international issues.
Such as: Do they agree tariffs should be imposed on solar panels? Do they agree laws protecting rivers, towns and cities from pollution should be eliminated for the benefit of businesses that pollute? Do they believe global warming is a hoax and it was right for this country to pull out of the Paris Accord? Do they believe the “Wall” is worth the billions in expenditures? Do they believe fossil-based energy is superior to renewable energy?
Or do they believe the opposite — that it is immoral to impose tariffs on anything that brings clean energy to the table; that our environment should be protected with the full might of our laws; that global warming is real and something must be done before the weather goes totally insane; that the wall is a total waste of money that could be better spent elsewhere; and that renewable energy is our only hope for the future?
This coming election is more crucial today than any before. It’s not enough that candidates come to the table with somewhat viable solutions for the city’s problems as most candidates will probably reflect hybrid versions of each others’. What is most important is that we elect candidates whose moral fiber and values resonate with the essence of what Sedona is about: Beauty, Creativity, Spirituality, Love and the Arts.
We need to know the type of person the candidate is. The way they answer the aforementioned questions will quickly reveal what they are about and how they will govern. Do we want a council that reflects our current Administration’s views or a council that boldly rejects them? Do we want a council that cows to the State of Arizona or a city that stands firm on its own?
Yup! This election is shaping up to be a real political donnybrook. Those of us in a position to influence the outcome are bound by pen and duty to thwart those seeking to drag Sedona into the abyss of discord. The fight is on!
The City budget is out of balance by ($9,989,641) this year. Budgeted Expenditures are $47,752,118 while estimated revenues are $37,762,477.
Although Sedona’s population has stagnated in recent years, the City is hiring. New positions in the budget are $74,440 for a Wastewater Plant Operator, $69,400 for an Administrative Assistant for Parks & Rec, $126,840 for six part-time Traffic Control Assistants, $21,510 to upgrade a Police Lieutenant position to Police Commander, and $35,060 to increase the part-time Administrative Assistant for the Wastewater Department to full-time.
As Henry mentions, “Various City government departments charge the Wastewater Fund for related work they do for the plant.” Departmental Allocations totaling $1,056,950 are budgeted for this year, to wit: Information Technology, $180,040; Human Resources, $51,140; Financial Services, $189,420; Utility Billing, $370,640; General Services, $73,470; City Manager, $68,080; City Clerk, $5,650; City Attorney, $55,100; and Facilities Maintenance, $63,410.
Sedona’s Estimated Visitor Population is 55.4% and pays 24.6% of the cost of WW Operations while the Estimated Resident population of 44.6% pays 75.2% of the cost of WW operations. (Source: FY 2017-18 Proposed Budget)
The current Annual Budget states that 4% wastewater rate increases were approved and adopted by Council for FY 2018-19 and FY 2019-20. This is untrue. As Karen Daines (now Osburn) wrote in the 2015-16 Proposed Budget, “On May 27, 2014, the City Council adopted a new wastewater rate structure which tied the rates to the cost of providing service and included a four percent (4%) increase each July 1st, from 2014 through 2018.”
State Statute ARS 9-511.01 “Water and wastewater business; rates; procedures; responsibility for payments” requires a NOTICE OF INTENTION TO INCREASE WASTEWATER RATES at a regular council meeting and setting a date for a PUBLIC HEARING not less than 60 days after adoption of the NOTICE OF INTENTION before FY 2018-19 and FY 2019-20 WW rates can be increased by 4%. Raising WW rates effective July 1, 2018 is illegal.
The City of Sedona’s Schedule G’s filed with the State list 142 Full-Time Equivalent Employees for this year and 125 for last year. Vote NO on Home Rule.
Jean Jenks said.
The City budget is out of balance by ($9,989,641)
Jean this is just flat out a lie!
The state and the city auditors say we have a balanced budget.
JJ, accounting does not count.
Sedona has save monies over the years for projects and now we are using the saved funds.
JJ you get all worked up over a 4% wastewater rate increases!!!! Oh god what is it $1.60 $1.70 a month?
All this city hate over $1.60.
JJ over the years you have said the sky is falling, and now no one believes you . Sedona has money to spend and now it it is using it ….. go hiking enjoy Sedona.
steve segner
Tommy Acosta says:
On the Home Rule question, it almost seems hypocritical that Conservatives would support rules foisted upon this little town by the Big Ol’ Boys in the State Legislature. Talk about bending over for big government. Hey Sedona! We the state in our ivory towers know what’s best for “we” the people so obey and dare not take your budget into your own hands because we know better. Ugh! How could any self-respecting Conservative agree to Big Brother’s rule rather than our own?
Tommy glade you brought it up
If Sedona (did not have Home Rule), it would cause a reduction in overall income… since the amount you can spend is determined by a state formula, no matter what your taxes are.
This includes:
Sales Tax, including the new .5% being dedicated to solving and addressing our traffic/road issues. Tourists pay 70% of Sedona’s sales tax.
Bed Tax, including the recent increase to 3.5% which is used to run the city and pay for “Tourism Management” programs and projects which are designed to keep the quality of life in Sedona while assisting visitors to have a good experlnecie while visiting Sedona. Tourist pay 100% of the bed tax, including AirBnB rentals.
All other sources of income, including sewer fees, general fees, etc. Which are paid by the user.
It does not cover Sedona’s Property Tax, because SEDONA DOES NOT HAVE A PROPERTY TAX!
SO, IF THE LOSS OF HOME RULE REDUCED THE BUDGET BY $12 MILLION… WHAT COULD BE CUT??
HERE’S SOME IDEAS.…
Police cost $5,500,000 so we just go to county policing. Saves $3,000,000 county will still charge for one or two officers.
Then you can cut public works $3,000,000 (roads) stop cleaning up town, general maintenance no paving etc.I could go on and on.
Cut the city hall staffing by 30% that will save $2,000,000 + we still need people to pay bills and city council p&z meetings etc. Some services are mandated by state.
Cut staffs that inspect buildings and issue plan checks and permits. Open office once a week and raise the fees to builders for permits.
Still $4,000,000 short, we can just double the sewer fees under state law that is one of the few areas we can charge more!! Thank god.
Still short, the bed tax is off the table, (I checked) state law is clear, can not be uses to support the general fund, and remember we are taking money away not adding it, the state say how much money the city will get, all extra monies will just sit in a bank account we can not use.
Closing all the parks and layoff most service staff and we get close to the $ 12,000,000.
No roadwork, paving, no re-working 89A and 179. This would stop the $30,000,000 work program that the .05% new sales tax money is dedicated to.
Sewer will need to be {self-supporting no public funding}. Easy place to start. $100.00+ a month will cover that cost which is about a doubling of the current fees.
Remembering that state laws mandate certain programs and services, so the city has to give those a priority. So, how would you cut the budget by $12 million?
So the question is WHY WE ARE giving up $12,000,000?
No logical reason exists except giving people some satisfaction that they put it to the government, the hell with community and
Sedona needs to stop acting like a big city. It’s running its residents out, and there are few reasons for anyone to more here.
Vote NO on Home Rule. The current budget could be cut by $9,989,641 million by balancing it. Budgeted expenditures ($47,752,118) ought to equal estimated revenues ($37,762,477), not exceed them by approximately $10 million.
Comparing this year’s budgeted expenditures with last year’s, Personnel Costs are going up by 13% and Operations by 17.6%, far too much. The City’s Schedule Gs filed with the State disclose Full-time Equivalent Employees are increasing from 125 last year to 142 this year.
Do away with the following:
– “Create Neighborhood Connections,” $5,252,700
– “Travel Information System,” $6,211,000
– “Land Acquisition,” $7,605,000
– “Bike Skills Park Phase II,” $339,600
– “Oak Creek Canyon Management Plan,” $575,000
– Paying The Hub to use a city facility.
– Community Service Contracts’ COLAs
– Funding the Parks & Rec Department
– Citizen Engagement
– Economic Development
– City taxpayer funds going to the USFS
– Residents paying an unfair burden of sewer fees/rates
– Running the reserves/savings down
– Accommodating more lodging units
– Increasing the number of cars in Sedona
There’s no thought about maintaining Sedona’s beauty or quality of life.
F.Y.I. says:Vote NO on Home Rule
so fyi please show us how the city will be in BETTER OFF with $12,000,000 less to spend each year?
Easy to say “No on Home rule” show us how you will make up $12,000,000 ,yes it is 12 million take you time…..
Look at my list, now make you own that come to $ 12 million…. and then ask why?
You moved to a growing town and now YOU want it to stop …. good with that.
every project on this list is a great project….
everyone in Sedona is not over 80
Do away with the following:
– “Create Neighborhood Connections,” $5,252,700
– “Travel Information System,” $6,211,000
– “Land Acquisition,” $7,605,000
– “Bike Skills Park Phase II,” $339,600
– “Oak Creek Canyon Management Plan,” $575,000
– Paying The Hub to use a city facility.
– Community Service Contracts’ COLAs
– Funding the Parks & Rec Department
– Citizen Engagement
– Economic Development
– City taxpayer funds going to the USFS
– Residents paying an unfair burden of sewer fees/rates
– Running the reserves/savings down
– Accommodating more lodging units
– Increasing the number of cars in Sedona
FYI said:
Do away with the following:
– Funding the Parks & Rec Department,
really think about this one comment .
really very sad, fyi thinks Sedona is a retirement village, no kids , no visitors and lights out at 8p.m.
Do away with the following:
Create Neighborhood Connections,” $5,252,700
yes, don’t put traffic on my street, so what of police or fire dept. can’t get around back ups on 89a…..
Really do away with parks and rec that says a lot we cam all se why they will not use a name …..