J. Rick Normand
Sedona AZ (April 17, 2013) – On January 7, 2010, the SedonaEye.com published an article entitled “Citizen Group Advocating ‘Will of the People’” which recited, amongst other things, the campaign promises of three current sitting Councilors and the Mayor.
Any of these now seated Councilors and Mayor who would vote for a proposal to impose new Chamber-funneled excise/sales taxes on non-Chamber small businesses whom will not directly benefit from the tourist trade, and retirees who are struggling to stop the rapid deterioration of their savings accounts, as well as seniors and elderly who are living off devalued fixed income sources, not to mention low-wage earners employed in Sedona while living here, will have committed an inherently immoral act including betrayal of the above-mentioned campaign promises.
Arizona has the second highest combined sales tax load in the U.S. and that is not including the current 1.0% temporary state sales tax which is about to expire. Can the Mayor and these Councilors guarantee each of us that the soon-to-expire state 1.0% sales tax will not be resurrected in short order?
Sedona has already passed the threshold of maximum sales tax load that is beginning to result in most of our west Sedona businesses losing customers to lower sales tax vendors in lower sales tax venues. Maybe it’s time that Council stop eating out of Staff’s unraveling budget forecasting feedbag and learn what will be the economic consequences of the law of unintended consequences when it comes to using fallacious revenue forecasting assumptions in a period of stagflation…an economic state they (Staff and Councilors with the exception of the Vice-Mayor who does get it!) don’t seem to understand.
These Councilors and the Mayor now invoke the old political adage, “we must adopt these new taxes to pay for future promised capital improvement costs.”
“Future capital improvement costs?” The reason these future capital improvement costs are now recognized as insufficient is a direct result of City Staff not understanding how to generate reliable projected inflation-adjusted costing for capital improvements in an economy now facing hyperinflation. Meanwhile, they also don’t seem to understand, relative to the revenue forecasting side of the budget process, the fact of deterioration of consumer (tourist) credit availability and deterioration of inflation-adjusted real wages.”
A SedonaEye.com Letter to the Editor by J. Rick Normand, Sedona AZ.
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I applaud your eloquent summary of how disappointing, non-responsive and irresponsible certain elected officials have been to those of us in Sedona who enthusiastically elected them.
I feel as if their actions amount to a financial and moral ‘bait and switch’. I recently attended a Council Coffee Chat at Los Abrigados and witnessed just about every business owner in the room BEGGING the Mayor and City Council to NOT raise sales tax and bed tax. Their pleas were totally ignored during the subsequent Council session where our Chamber put on a ‘dog and pony show’ to raise bed taxes to be funneled to them with no specific plan of where the money would go.
The majority of the Council (except Mark DiNunzio) enthusiastically voted to raise both bed and sales tax. Not one mention was made of the desires of the business owners to not go down that slippery slope. Matter of fact, public input was denied by Mayor Adams. If ‘direct marketing’ is needed – (and this alone would indicate that the Chamber needs help to do their job) – I suggest the obvious – to put that particular job out to a competitive bid, so that companies with fresh ideas can have their chance.
While it’s true DiNunzio was the only one on Council to advocate against a sales tax increase, he was in favor of increasing the bed tax. Also, like all the others on Council, he has made many horrendously financially irresponsible votes over the years.
It’s not unusual for Councils to be misled by the staff.
Concerning financial matters, where does the money come from? I’ve heard that the Chamber of Commerce is using wrong numbers from the 70s and 80s. And the people on the City Council who say 80% of the revenue comes from tourists are wrong.
With the annual Waste Water fee increases the City is extracting from the 60% of us on the sewer, the pendulum has swung. The residents are paying the largest percentage of the City’s bills now. The Budget Oversight Commission Chairman brought attention to this swing during last January’s BOC meeting.
The City is giving the Chamber $550,000 in taxpayer money this fiscal year alone. The Chamber, not the City, needs to pay for destination marketing IF needed.
Thank you Terrie,
I think you summed it up better than I. BTW, in my last sentence, the word “deterioration” following the words “…(tourist) credit availability…” shouldn’t be there. I don’t think I wrote that sentence that way. Anyway, I have interviewed several of the larger retailers along West 89A and not one favors such a tax including those who are Chamber members. They are telling me that should this proposed sales tax be approved that the City will never collect it, in terms of net new taxes, because it will cause those retailers to lose sales as I mentioned. Between Staff, the Chamber and Council, less the Vice Mayor, there is little entrepreneurial experience much less any formal background in economics. To sum up, the real problem is that Staff and the Chamber are in bed together and Council, except for Mark DiNunzio, can’t decipher sound economic principles from the respective mutually supportive wish lists of Staff and the Chamber. One last thing…when will it ever occur to Council that there are other methods for increasing City revenues other than punitive taxes and fees?
Rick
Interesting that in an age of financial insecurity, and unbelievable debt at the federal level, and the Fed printing money like the ink supply is about to run out, that the city is talking about “Capital Improvements”.
Give us well paid cops, keep the streets paved and fix the drainage. Let the red rocks advertise themselves. Stop giving money away that we do not have.
Right on, Terrie Frankel! It’s no surprise that public input was denied as I’ve experienced that firsthand on his refusal to put the issue of “smart” meters on the agenda.
The other issue I have about the Chamber (aside from its lack of transparency) is exactly how many businesses belong? I heard several years ago that it only represents 1/3 of them.
Time to eliminate the “City” of Sedona. We would be all better off it were gone. Remember, The Sedona Fire Department is NOT a part of the “City”. So we are paying for extra police? There is almost no crime in Sedona. The City was a mistake, we can correct it once and for all.
When it comes to ‘smart meters’, a City liaison/rep advised Council to “wait” until the APS comes up with their Smart Meter Plan for Sedona, before deciding whether the City supports it or not. That will be too late. The time to refute APS ‘smart meters’ is now – not after their ducks are in a row and their propaganda campaign is fully funded – and our City Officials are in their pockets – which may possibly already be the case. By refusing to hear public input, our City Council is giving APS a ‘golden opportunity’ and clear path to mount forces and shore up.
Regarding the Chamber, I meant to say their slide show to Council pointed out they wanted more, more, more money for ‘destination marketing’ (not direct marketing as I mentioned in my reply – though one could argue they are similar).
You are right about the Chamber having lack of transparency. Last year, when I asked Chamber Pres/CEO Jennifer Wesselhoff, what her salary is, she was indignant and told me to “look it up on the Internet.” I did. According to a filed Federal Tax form 990 I found her “non-profit” Chamber paid $566,579 in total salaries and employee benefits – this, in a town of 10,000, with businesses folding like crazy – and tourism dropping. At a time when most cities around the country don’t give their Chambers a single dime Sedona gives the Chamber between $500,000 to $600,000 per year of taxpayers money. Now our City Council wants to raise taxes on tourists to give the Chamber more? Something doesn’t add up.
The public input on the .5% Sales Tax increase and the 1% Bed Tax increase was denied illegally. Our Mayor took it upon himself to NOT allow public comment. This can only be done by vote of the entire Council, and no such vote was taken.
This matter went viral and the Mayor and Council PULLED it two weeks after they had decided to go forward with the increases.
P.S.
The tax increase was not only on tourists. The .5% Sales Tax increase was on Sedona’s residents and businesses as well. That’s why it went viral and got PULLED. The City of Sedona would have received $1.2 million annually according to the study the Lodging Council commissioned.
And what was the Mayor and Council’s answer when the City Attorney told them they had the option of putting the .5% Sales Tax increase before the voters? Laughter!
The public voted to incorporate, what did you expect except what you got? The people voted these idiots in so you have what you voted for. As far as the new meters I can tell you what will happen. Everyone I talked to that have the new meters their bill has been $20 higher per month than the previous year, keeping in mind there was no rate increase in those times.
Terrie Frankel you are correct again that NOW is the time for everyone to notice APS in via certified/return receipt requested mail that they want a no fee “opt out..”
APS has already submitted its proposal regarding “opt out” on the AZ CC docket number AZ CC Docket No. E-01345A-13-0069 – http://edocket.azcc.gov/ – Unless the Council acts NOW to protect us from this threat, APS wants to charge those who choose to take the safe and precautionary route by opting out, $75 to protect our well being and $30 more per month. Retired Superior Court Judge called this “Mafia” tactics. Please see SedonaSmartMeterAwareness.com for more info.
Having read Terrie Frankel’s second post above regarding annual Chamber salaries, this makes me think that I should suggest to all commenters that you go to this link…”http://www.myrtlebeachonline.com/2010/07/14/1586075/fbi-irs-investigate-political.html” “Just sayin’ ” as they say.
While having lunch recently at a well known, long established West Sedona restaurant, my friend and I asked the manager: “How is business?” The response essentially: It was so-so but in general the business was steadfast and not, momentarily, in economic peril. What was even more informative is that we were told, “Just last week we had people come in from Ohio on a recommendation from some friends who had visited Sedona.”
Our next question was: “Do you have referrals from the Chamber of Commerce?” Answer: “We tried going through the Chamber for a while, had tracking devices such as coupons to verify effectiveness. However, WE DIDN’T GET EVEN ONE CUSTOMER as a result of our participation in the Chamber of Commerce. Therefore we dropped it.”
Hello out there! This is not to say the C of C doesn’t send people to “member” lodging facilities. But perhaps it might bode well for council members to take time and do a bit of local surveying on their own to find out exactly from direct sources just how much bang for the buck they’re receiving from the over half million $$$$ they GIVE annually to the C of C.
Baloney to the “contract for service” concept because that should be a mere conservative amount to assist with operation of the Visitor’s Center if anything at all.
Point of contact being that once again “Word of Mouth” advertising prevails as the manager of this restaurant told is “It happens all the time.”
AZ Rep did story on how tax increases have caused major business setbacks/get the paper & read it. Do your homework Mayor! I’m a big D progressive with a math background & know tax increases don’t work to foster Sedona interests; you’re familiar with Cal State problems? Get your head out of the sand & do some homework. DiNunzio isn’t the answer for a mayor either with his history. The rest of you/stop listening to your cocktail party & special interest group friends & get down to the business of governance. I know because I’m often there. You’re no better than the US Congress with its special interests. This CoC is out of hand. Do something. Cut it off & let it be the big business special interest on its own dime. There are many Sedona businesses out of business or perched on ledges. Leases not being renewed & most out of town business/landowners. That’s the chamber legacy in this town.
Sedona Mayor and City Councilors,
Mr. Normand is right on target (below). It appears that the true ‘Sedona Moronic Convergeance’s (aka City Council) foolish and short-sighted tax and destroy plan’ is now truly being fully realized by the many hard working and retired tax-payers who can barely make it now in the Red Rocks. This scenario seems strikingly similar to what our professional and crookedly corrupt federal governmental fleecers have been doing for decades, soon to result in a spectacular crash. Did you’all borrow their play-book when implementing your foolish plans, as it appears that no logically thinking person could possibly dream up all these things on purpose…..?
‘The government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.’ ~Ronald Reagan
https://www.sedonaaz.gov/Sedonacms/modules/ShowDocument.aspx?documentid=18683
https://www.sedonaaz.gov/Sedonacms/Modules/ShowDocument.aspx?documentid=15070
http://www.sedonaaz.gov/Sedonacms/Modules/ShowDocument.aspx?documentid=18317
http://www.sedonaaz.gov/Sedonacms/index.aspx?page=108
http://www.sedonaaz.gov/Sedonacms/index.aspx?page=866&parent=4444
What will be your next ‘hair-brained hat trick’; bank account confiscations, ‘Cyprusizing’ all the local residents in order to make principle and interest payments on the many obligations you’ve hung around the necks of the Sedona city tax-payers? It now appears that perhaps soon, all of you ‘not ready for prime time players’ will be facing a firestorm of indignation and perhaps outright tax rebellion from many of these same residents that put their trust in you smiling, glad-handing poly-tick-shuns.
“…they are blind leaders of the blind. And if the blind lead the blind, both fall in the ditch…” ~ Jesus Christ (Matthew 15)
I hope it’s safe to assume that you’all (and city staff) don’t manage your own finances at home in the same reckless fashion you handle the tax-payers money. Wake Up and Wise Up, and begin living within your means (the present tax base) before you crush what’s left of a vibrant community. You all ought to be ashamed, but I assume that that’s too much to ask as well.
Sincerely,
John Mitchell
How about that Bob hitting the nail on the head. Sedona chamber legacy? Loss of businesses, higher taxes, huge personal salaries. Save your money. You don’t need to pay chamber dues. The city is small enough that whatever they do will trickle over on you without you paying for it. Fools and money are soon parted. Give a man (chamber) a choice of character or power and he (it) will always choose power for itself. We could use a good business group that works independently of chamber to prove we don’t need it around.
In order to avoid running out of money next fiscal year, the Mayor and Council are ensuring the City will run out of money the years that follow.
Mayor Rob Adams’ solution for the spending pig-out in FY 2013 and FY 2014 and for failing to ensure funds will be there to pay “future capital improvement costs” after next year?
Fiscally “responsible” Rob states: “GO-Bonds can go before the voters in even years in the fall.” Future Sedona General Obligation Bond assessments, if any, will be billed annually on county property tax bills. The cap for next fiscal year’s $36,500,000 budget must be cut back by several million dollars at the Council’s May 28th preliminary budget meeting to avoid the travesty of GO-Bonds on the ballot.
BTW: (1) The estimated cost for the City’s new employee compensation package is $456,988 for next fiscal year. The City looked at the salaries various government entities are paying, including the SFD and one other fire district. (2) The Chamber of Commerce will be receiving $350,000 for destination marketing next fiscal year. This although the over-subsidized Chamber is once again asking for increased sales and bed tax levies on the backs of Sedona’s businesses and residents.
Re: Mayor Rob Adams Request for a Retraction
In the fifth paragraph of the article, I wrote “These Councilors and the Mayor now invoke the old political adage, “we must adopt these new taxes to pay for future promised capital improvement costs.” I wrote that sentence as a euphemism by referring to an oft-repeated adage. The adage does apply to several sitting Councilors due to their own similar public statements, but Mayor Adams has pointed out to me that he never said anything along the lines of the adage. After re-reading it, I agree with him that some readers to may ascribe to him what is written as a direct quote. Therefore, I feel that I should withdraw his name from the sentence. His name is retracted.
@J.Rick – It doesn’t matter what Adumbs says. His record speaks for itself. In other words, the adage applies whether he actually said it or not.
I agree with Mr. Warren about Mr. Dinunzo. I’m sure he is a good man with an ambition to be in government but his voting on council is not outstanding and seems personal not civic. Rubber stamps do not make good city policy. All in all a good read here. Thank you for hearing me out and I’ll keep an open mind to others in discussion.