The City of Sedona Arizona lost population based on its 2010 Census report figure of slightly less than 10,000 residents
Sedona AZ (January 23, 2014) – The following is a copy of a letter sent to the City of Sedona Mayor and Councilors written by Sedona resident, Jean Jenks:
January 14, 2014
Mayor Adams and Councilors,
Since this Agenda Item includes “possible direction of the findings and recommendations of the 2013 comprehensive wastewater financial plan….,” I hereby request public input be taken (not indicated on the agenda). This decision should include a vote of the councilmembers, if needed.
I am writing today to request the Council to not approve the 2013 comprehensive wastewater financial plan, cost of service analysis and rate study. The rate study, alone, is reductive and inequitable. It will basically serve to further damage Sedona’s competitiveness at a critical time when the City needs to pursue means to fire up its economic engine.
Sedona Trading Company in the VOC closed its doors in 2013 after decades in business as did a nearby tea shop which opened in 2012. Owners cited unfair competition and the economic downturn.
Within the past year or so, the public has seen the doors close at My Jeweler, Desert Moon Furniture, Fusion, Bodacious Burgers, Studio Live, Red Rock Dollar, Iris Garden Inn, Sedona Art Supply, Sedona Floral, and so very many more businesses in town. And, currently there’s a rumor that KUDOS will be relocating to Cottonwood soon. I respectfully suggest the councilmembers count the vacancies in West Sedona. It’s an eye-opener and unsettling. No wonder there’s now a petition to sign on the web to terminate the City of Sedona through disincorporation–A FIRST in the over 12 years I’ve lived here!
The proposed raising of residential WW rates by 4% over six years, or by any amount whatsoever, would be unfair and is economically unsound. Kindly note the following:
(1) In that the Fire and School Districts have increased their assessments recently and the electric company’s bill is shooting up by around 20%, an increase in residential rates will serve to further hurt seniors on fixed incomes and the working poor who live in Sedona. Further reducing residents’ disposable income means, among other things, the many small businesses in West Sedona that depend upon residential patronage to make ends meet will also be squeezed financially. Taken altogether, such increases will exact quite a toll on Sedona’s economy over time. It’s a vicious circle the City Council must not get caught up in.
Sedona wastewater treatment ponds development has proven controversial as are the city wastewater rates
(2) Not only are Sedona’s sewer rates 44% higher than the statewide average of $32.79, a comparison of wastewater rates in our region finds the current residential rate of $47.34/mo. the highest of any local community.
(3) According to SPERLING’S BEST PLACES [TO LIVE], “Compared to the rest of the country, Sedona (zip 86336)’s cost of living is 22.30% Higher than the U.S. average.” This will increase significantly once SPERLING’S cranks in the new Fire and School District assessments, not to mention the upcoming very substantial rise in the cost of electricity during the summer months.
(4) Most of the $39.9 million in wastewater debt is attributable to the polluting by businesses in Uptown Sedona near Oak Creek way-back-when, not residents. Most cities handle similar excessively huge financial matters through Sewer Improvement Districts, or via higher developer fees, or the like. Ripping-off and squeezing middle class and working poor residents in Sedona is not the ethical the way to go.
Soon after relocating to a new site, Sedona KFC closed (internet comments indicate lack of business and owners bankruptcy) but re-opened late December 2014 under new management as a combined KFC Taco Bell restaurant.
(5) “Where’s the money coming from” was discussed during the 1-16-2013 Budget Oversight Commission meeting. According to Chairman Fagan on the Audio, when you add the sales and all the other taxes together, the wastewater fees swing it back to [the fact] it’s really the residents who are paying the majority of the bills here. Chairman Fagan added that he’s heard people on the Council say 90% of the revenue comes from tourists, which is not true.
(6) The Wastewater Fund was not created to be an “enterprise” fund. The voters who approved the bonded indebtedness would never have authorized the bonding were an enterprise fund in the picture. The rumor-mill has it that the “enterprise” concept for the Wastewater Fund came into existence under the current Mayor and City Manager. At any rate, quite a devastating financial bait-and-switch took place somewhere along the way. Incidentally, wasn’t there once a City Ordinance of long-standing that mandated the annual percentage amount the General Fund would subsidize the WW Fund?
In conclusion, THE CITY OF SEDONA IS IN DIRE NEED OF BECOMING COMPETITIVE!! Raising residential WW rates is one of the worst things the City could do given the current scenario.
Sincerely,
Jean Jenks Sedona Resident
For the best in Arizona news and views, read www.SedonaEye.com daily!
Good points made here. At the recent financial review meeting something came up about the increase in sales tax revenue and Karen Daines (to my recollection) made mention that appropriated sales tax funds had been diverted from the sewer plant supporting that this council is robbing Peter to pay Paul. Who was it said there’s no honor among thieves? It appears we are living proof.
Reading this reminds me again to value transparency.
According to Mayor Adams during the July 23, 2013 Council Meeting, “Over time we are figuring all the debt service payments will be from residents.”
The annual debt service payments on the City’s bonded indebtedness, currently $50.9 million, have been running around $6 million annually.
The wastewater system debt is approximately $40 million. Homeowners on the sewer are unduly charged. Hotels are not paying a fee corresponding to what they are contributing to the sewage problems. There is no equity among ratepayers. Residents on the sewer are being discriminated against.
You can fault Jean for many things but never her reporting on the budget. This is one watchdog who should be appreciated and read closely. Sedona Times does a good job of presenting all sides. It’s earned its good reputation.