11/17/2009 4:19:00 PM Camp Verde's economic picture darkens Revenues may drop another 10% next year
VVN/Steve Ayers
The Camp Verde Town Council recently approved the hiring of a new engineer to begin tackling some of the town's infrastructure problems such as storm water drainage. However, news that the state will cut Urban Shared Revenue next fiscal year has jeopardized the new position as well as the town's ability to accommodate development when it returns.
CAMP VERDE - Everything flows down hill, and Arizona's budget problems are no exception.
Estimates are starting to roll in on the impact of the state's multi-billion-dollar shortfall for the 2010-11 fiscal year, as it relates to Arizona's cities and towns.
And, like every other municipality in the state, those estimates don't bode well for Camp Verde.
According to the League of Arizona Cities and Towns, Camp Verde's share of the state's Urban Revenue Sharing will fall by $340,000 next year, from $1,385,000 to $1,045,000.
Urban Revenue Sharing is derived from state income taxes, paid two years in arrears. Every incorporated municipality in Arizona receives a portion of those revenues, which are used to augment the municipality's general fund.
"Two years ago the economy started tanking, so we start seeing it next year," Town Manger Mike Scannell says. "And I think it is only going to get worse as we go forward."
Combined with the additional drop in sales tax revenues the state and the Town have endured this year, Camp Verde's Town Council will be forced to decide how it wants to deal with a shortfall that could very well exceed $500,000 in the next budget cycle.
"It's a pretty significant chunk of change. If you look at Camp Verde's budget, much of our $6 million revenue is aide from other governmental agencies, primarily from the state.
"So when the state cuts back like this because the economy faltered, we are liable to pick up the pieces. It's a difficult place, but we are in good company. Everyone is being hit proportionally," Scannell says.
It is all more the reason, Scannell says, that if the Town is to survive this economic downturn, it needs to begin looking at ways to revitalize its own economy.
"Camp Verde is approaching a point where it cannot sustain its service delivery system with the revenue base it has to work with. It's not a value judgment. It's not politically inspired. It's just a fact," Scannell says.
Next year's economic picture is even more challenging, he says, given the fact that there are already many projects on hold and positions unfilled due to the current year's shortfall.
"We are not getting done what we need to do, including a number of things that need to be taken care of before any development returns," Scannell says. "But I have no professional staff to do it.
"I don't know how much more I can cut back. We have a core set of activities we need to deal with. We are doing it, but cutting it back further would be ill-advised. Clearly this is an accident waiting to happen."
Reader Comments
Posted: Monday, November 30, 2009
Article comment by:
Ria Rhodes
You're correct James about the RICO funds, and yes, I love to spout off (I understand that to some it's not always so obvious what my arrows are aimed at). As for your comment about current council members understanding of how government "works", I'm not necessarily in disagreement, but I don't think they would appreciate your characterization, and I believe we all appreciate that at least some residents take the time and make the effort to serve in that capacity.
Posted: Friday, November 20, 2009
Article comment by:
Sacrafices across the board!
I think that a temporary wage reduction of 5 to 7% from Town staff and employees over a 6 month period would bring some relief for the shrinking budget rather than cutting items as important as the youth center programs and the animal shelter. I've seen teenage vadalism increase dramatically in the past few months as well as an increase in animal neglect or abandonment due to the economic pressures.
Posted: Thursday, November 19, 2009
Article comment by:
James
I believe the other "anonymous" person was pointing out that you do not know the facts but offer judgement on the lack of facts you posses. For example I read where you questioned the police using RICO funding to purchase "toys" as you call it. Under Arizona Law they cannot use the money to supplement the budget ie. hiring people. It can only be used for certain things. So before you spout off what you call "sarcastic" comments. You should really research before you speak about something. Being on any Council does not make you an expert or even knowledgable. Most of our current council has no idea how government works.
Posted: Thursday, November 19, 2009
Article comment by:
Ria Rhodes
OK anonymous one. What word does the reader guess you left out of your comment, "I respectfully disagree with you at almost every you type." FYI, I have worked on a town counsel in a town (out of state). No doubt, my comments are heavy on sarcasm that may offend. I respect your right to disagree with mostly everything I say. "mostly" is better than "always".
Posted: Wednesday, November 18, 2009
Article comment by:
Fed up with Rhodes
Mr. Rhodes, I respectfully disagree with you at almost every you type. I can't put it politely but you obviously have no clue how government works.
Posted: Wednesday, November 18, 2009
Article comment by:
Ria Rhodes
"Camp Verde is approaching a point where it cannot sustain its service delivery system with the revenue base it has to work with. It's not a value judgment. It's not politically inspired. It's just a fact," Scannell says."
OK, so I wonder where tax increases will be applied? Not if they will be, but when they will be. While we're at it, I suppose we need to pull over more "suspicious" vehicles passing through so we can "up" our share of recovery funds to buy more new toys for law enforcement and public services, after all - catching and caging people IS our growth industry hereabouts.
Posted: Tuesday, November 17, 2009
Article comment by:
fed up with town govt.
If they hired people who knew how to do the job they were hired for rather than freinds and relatives this town would probably alot further ahead. Rather than cutting back I say clean-house and hire knowledgable people!
