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City taxes to increase; budget OK'd


By Carol Broeder/Arizona Range News
Published: Wednesday, August 27, 2008 11:20 AM CDT
Despite pleadings by three members of the audience last Monday night; the Willcox City Council approved a property tax increase by a vote of 5 to 2.

Councilmen Jimmy Norris and Stephen Klump cast the nay votes.

Terrie Waters-Dunlap told the council she, like many others these days, is having a hard time making ends meet.

She described herself as "a homeowner, single mother, taxpayer, and college student," who works as a nurse and is also trying to earn her RN degree.


Waters-Dunlap said that if the city raises taxes, her mortgage would go up, forcing her to "sell my home, quit school, and move away."

"I want to stay here and I want my children to go to school here," she told the council.

Waters-Dunlap asked the council not to raise taxes.

"It seems like a small amount to you, but with gas going up and milk over $3 per gallon, it's hard to make ends meet," she said.

"We need a break somewhere."

Former Mayor Mick Easthouse addressed the council for a second time on the subject.

"I understand the budget needs to be passed, but I urge you not to pass this tax increase," he said.

"Every good budget should have some leeway or overage in case of shortfall," Easthouse said.

"It is customary to have a three-to five percent increase," he said. "A five-percent overage in our budget would be $1 million."

Referring to comments made by Waters-Dunlap, Easthouse said the tax increase "would raise her property taxes $3 to $4 on $100,000 valuation of property value, but the psychological effect is greater."

"I recommend you vote for the budget without an increase to personal property tax."

In his comments to the council, former Councilman Phil Stratton called it "the wrong time to raise property taxes. It's kind of like kicking you when you're down."

Agreeing with Easthouse about the psychological effect, he urged the council to "cool off" on an increase at this time.

"If the money is there, you will spend it," said Stratton, adding "Keep in mind it is taxpayer money you are talking about."

At the close of the seven-minute public hearing on the city budget, Mayor Sam Lindsey said, "We have looked at this budget long and hard. It has been cut and cut and cut."

"I wish we had a reserve, but it isn't there," he said. "This has been a real struggle. Nearly all the departments are down from previous years, and there are no salary increases for employees this year. It's a tough call."

Moments later, Lindsey opened the public hearing on the property tax increase.

Councilman Jimmy Norris said, "I thought about this and it isn't much of an increase, but when is enough tax enough tax?"

With a 9.1 percent sales tax in Willcox, "we don't have the No. 1 position, but we're close," he said.

Referring to the comments made earlier by Waters-Dunlap, Norris said, "Being raised by a single grandma, I know where this lady is coming from."

At the close of the two-minute public hearing, Norris said, "In my opinion, I'm against it."

When it came time to vote on the budget, it was moved and seconded to adopt the resolution, which carried 5-2. Norris and Klump cast the nay votes.

Norris moved to amend the original motion without the $9,291 tax increase, which failed 2 to 5. Norris and Klump cast the aye votes.

Councilman Woody Johnson moved to amend the original motion prohibiting any capital purchases until a new city manager is on board.

Councilwoman Monika Cronberg said approving it might force the council into "a search timeline that is not favorable."

That motion failed by unanimous vote.

The other final vote was on the city's proposed tax increase of $9,291, or 16.66 percent, over last year's level.

It was approved 5 to 2, with the nay votes cast by Norris and Klump.

"This isn't a comfortable decision to make," said Cronberg, adding, "As difficult as it is, I feel it is something we need to do."

Speaking at the close of the meeting, Councilman Chris Donahue said, "There's been lots of emotion expressed on the budget. I do apologize to the community if it feels overburdened."

He explained that as an incorporated city, "we are in business to provide services."

"Our costs continue to rise, just like every business," he said. "They do not give us breaks or reductions. We have to adjust incomes every year."

"As a council member, I have to do what is right for the community as a whole," Donahue said. "I do believe it was the right decision."

City council had unanimously adopted the proposed budget, totaling $20,528,943, at its June 25 meeting.

The council then held public hearings at its Aug. 4 and July 21 meetings.

The city's budget reflects an increase of $4,208, 909 from the fiscal year 2007-08 budget, "largely because of the listing of potential grant funds for gas and sewer projects," Former City Manager Mike Leighton had told the council.

"If this money is garnered through grants, it will not be raised through local taxation," he added.

"The forthcoming budget year is one where continued planning and action for future growth is important, but conservancy is of more importance," Leighton said in his budget message to the council.

"It is important that economic development come to the forefront with the small amount placed in the budget for that purpose."

Leighton told the council that the great majority of the projects that were extended into 2008 have been accomplished.

"The finalization of the Arizona street project has happened and the associated roads are serviceable," he said at the time.

In recommending the council adopt the proposed budget, Leighton said the city "will be able to provide quality service, plan and conserve for the future, and begin to position itself for economic growth to improve the quality of life that its citizens deserve."

The tax increase will cause the city's primary property taxes on a $100,000 home to increase from $28.13 to $29.99, a change of $1.86.

This increase is exclusive of increased primary property taxes received from new construction. The increase is also exclusive of any changes that may occur from property tax levies for voter-approved bonded indebtedness or budget and tax overrides.

The total amount to be raised by direct property taxes is $65,069 for the primary property tax, and $162,760 for the secondary property tax.



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