TAX NEWS - JUNE 2010

Arizona Tax: Tax hike in Bisbee would aid roadwork

by Shar Porier, 02 June 2010 -- The City Council decided in a 6-1 vote to send a proposed 1-cent transaction privilege tax increase to the voters in November.

The tax, commonly referred to as retail sales tax, would raise money for street repairs.

The city's streets and infrastructure committee members worked on the problem for the past year and developed a priority list of needed repairs to city streets. The added tax was the panel's recommendation from the start, noted Mayor Jack Porter. The committee members determined the tax would be in effect for six years. After that time, the measure could again go to the voters for another six years. At their request, he presented the recommendation to the council during Tuesday's meeting.

Councilman Ken Budge was the only voice of opposition to the added tax on retail sales that would provide around $750,000 over the six years for the use of repairing the city's failing and declining streets.

Budge suggested spreading the tax across a variety of sources like property tax, alcohol/beer tax and bed tax, with a one-third cent transaction privilege tax. Such measures would also have to go to the voters. "There needs to be a long-term plan for funding through some sort of tax, but we need to spread it across the board."

Resident Barbara Taylor also opposed the increase even though she rents a home on one of the worst streets. She fears the tax would make Bisbee a ghost town. "There is no way I want my friends to go out of business to fix my street. Merchants are having a hard time making it in Old Bisbee and the tourists won't pay it …" Further, she said the merchants are the ones who buy the homes, the supplies to fix them up. "We are the ones who support the Bisbee community."

Taylor suggested property owners should pay for the streets through road improvement districts.

Councilman Boyd Nicholl was reluctant to think about road improvement districts, which can be more costly, "tricky" and "not easy to set up." He says he sees no other way to do it.

Porter said, "We don't have enough available funds for Bisbee streets. Some have failed completely. Others may not make it through the next monsoon. If we don't take action now, some streets will fail."

Councilman Ray Rodgers pointed out that streets in the Warren district, which he represents, will fail if the city doesn't do something. With the Arizona Street enhancement project, he sees an imperative to repair the feeder roads to maintain it. "This won't take care of all of our needs. But, I see this as an investment in our community."

As it stands, Budge feels the sales tax hike will fail, especially since it comes on the heels of a state hike.

Other council members shared his reservations, but felt it was up to the voters to decide. So they voted to take the $10,000 gamble, (the approximate cost of the referendum), to put the matter before the Bisbee voters.

City residents could lose the second weekly pickup of trash due to budget constraints. The council announced plans to amend the city code, which states that pickup should be twice weekly, to once a week. The amendment also permits the city manager to determine locations where the once-a-week pickup will occur.

Public Works Director Russ McConnell made the recommendation that will affect only residential customers in San Jose and Warren. The plan is to phase in individual roll-out trash receptacles and phase out the large trash containers that seem to encourage illegal dumping.

"We replaced the (large trash containers) on Cochise Row and it decreased the flow of wildcat dumping," added McConnell.

Rodgers asked Mc-Connell to place the large receptacles in appropriate places and not in front of vacant homes.

Old Bisbee will still have twice-a-week pick-up due to the elevation, explained McConnell. Workers would have a hard time bringing down the accumulated garbage with a once-a-week pickup. "It's just too much weight."

McConnell also said that the new recycling station set up in Old Bisbee may help lessen the load as more residents participate.

The change will not affect the residential fee.

The council also agreed to seek a transportation enhancement grant to improve the intersection of Highway 92 and Naco Highway. The $1 million in improvements planned include sidewalk installations and handicapped-accessible crosswalks. Sidewalks would be installed on both sides of Highway 92 and south on Naco Highway to Collins Road, said John Charley, community development director.

The council also...

- Approved a number of requests for park, facility and right of way use on Bisbee streets for the Fourth of July.
- Accepted a $7,000 donation from the Bisbee Rotary Club to fund the 4th of July fireworks display.
 

TAX HEARING

At the upcoming truth in taxation hearing in Bisbee, the city will propose a 3.77 percent increase in revenue of primary property collections for the coming year.

Dee Flanagan, city finance director, said the purpose of the hearing is to discuss an increase in primary property tax revenues, not the tax rate. Assessed valuation of property within the Bisbee city limits has increased from $38,147,299 to $40,782,638.

The proposed $30,864 increase is based on net assessed valuations as figured by the Cochise County tax assessor's office, Flanagan added. The increase is exclusive of increased primary property taxes received from new construction and of any changes that may occur from property tax levies for voter approved bonded indebtedness or budget and tax overrides.

All interested citizens are invited to attend the public hearing on the tax increase that is scheduled to be held June 15 at 7 p.m. at city hall on Arizona Street.