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Eye on Sedona Budget Review and Planning

SedonaEye.com columnist Eddie Maddock

SedonaEye.com columnist Eddie Maddock

Sedona AZ (May 8, 2015) – It’s that time of year for budget review and planning. Work sessions are presently taking place.

In two years, the Capital Improvement Fund will be depleted. Just last week a “professional service contract” was signed by the City to pay out over $2,000 a month ($25,000 annually) to Red Earth Theater for it to provide performing arts. Of course Sedona has been promoted as an art center, but since when haven’t artists been able to promote themselves? Where is the pride and confidence in their ability if they are unable to do so?  Since when was that a financial responsibility of public tax funds? Why wasn’t that facility, the Teen Center, leased out for profit to the City instead of the other way around?

How much more will be “given” to non-profits? All worthy causes, but again not the responsibility of a municipality when creature comforts become neglected and there’s no funding in sight to make things right.

The primary responsibility of our elected officials is to provide for the Health, Safety, & Welfare of those living within the confines of the designated area – City Limits. They were not elected to continually over-use the words “I think” and base their decisions on their own wants, needs, personal agendas, and opinions that don’t reflect the will of the general population, those that elected them for the purpose of representing them and not themselves.

And, of course, in Sedona the same considerations must be extended to our visiting tourists since, yes, they are huge contributors to the tax base and also deserve, among other creature conveniences, decent roads and adequate parking while spending time in Sedona.

Spending millions to encourage more traffic when Sedona cannot accommodate what is already here is nonsense.

Giving away money to the line-up of many who should be self sufficient is out of control. What about the Sedona Film Festival? Has anyone bothered to request an audit in order to determine just how badly that very popular offering to Sedona is in need of enhanced funding?

sedona chamber of commerceEnough has already been reported on the absurdity of the outrageous and unaccountable amount of money allocated to the “regional” Chamber of Commerce to advertise themselves, increase their own membership, enhance their own web site, and operate a City financed Chamber of Commerce Visitors Center to promote only their members as they continue to shun in-city businesses that do not acquiesce to their demands:  Be a Chamber member or else you do not get referrals from the Visitors Center. And at the same time they promote members that do not contribute to the City tax base!

As a Chamber of Commerce that is its responsibility – to serve its members. It is not the responsibility of the City of Sedona to use tax revenue to advertise the Chamber and their members – period.

Priorities appear to be skewed, and unless they are intensely reviewed and scrutinized current sources of revenue will dry up and, of course, then comes the question: What will be the “new” source(s) of money?

We all know what proposals have been on the drawing board and it’s highly unlikely they will be favorably received by the voting citizens of Sedona as long as the frivolous spending continues.

Heads-up! The process is under way – so now more than ever is the time to pay attention.

How many residents are in the position of grasping “new” sources of funds when we feel it’s a good idea? That notion, of course, is very unlikely as we must realistically alter our wish list to accommodate living within our budgets.

Why does the City of Sedona feel that rule doesn’t apply to them? Isn’t it time we insist they do?

Read www.SedonaEye.com for daily news and interactive views!

Read www.SedonaEye.com for daily news and interactive views!

381 Comments

  1. Just Sayin' says:

    @ steve segner

    Why oh why do you waste your time with these closed minded fools. If my info is right, haven’t you given back to our city in the past?

    didn’t you just set up a bunch of people to donate money for that sidewalk sign project on the sidewalk along 89A from the “Y” to uptown?

    I don’t know if you still do it but, haven’t you donated a bunch of years giving back with the housing committee?

    I have yet to see a listing of any of these closed minded people where they’ve given anything back or even tried to help shape this city in some way. It’s all ME ME ME! or I moved here so lets lock the gate so no one else can get here.

    Since no one on this site has the balls to say it, Thank you Steve for trying to help better our city.

  2. Unspoken Truth says:

    The truth is Steve Suckner is taking not giving.

  3. JeanJ says:

    @Mike

    Some waste included in the Tentative Budget for 2015-16 (Tonight’s City Council Agenda Item 9.b.) is:

    ‘Chamber’ Visitor Center $ 278,575 ( + $ 3,575 from FY 14-15)
    Chamber Destination Marketing $1,053,525 ( + $ 80,025 from FY 14-15)

    [Unspecified] Destination Mktg. $ 121,000 ( + $121,000 from FY 14-15)

    Community Service Contracts $196,200 (+ $27,200 from FY 14-15)

    Arts Education Fund $18,000 (same as FY 14-15)

    Special Programs $8,000 ( – $4,000 from FY 14-15)

    Humane Society $47,818 ( + $318 from FY 14-15)

    Main Street Program $75,975 ( + $975 from FY 14-15)

    Sedona Recycles $53,183 ( + $683 from FY 14-15)

    Sedona Community Center $162,080 ( + $2,080 from FY 14 -15)

    Sedona Public Library $386,966 ( + $4,966 from FY 14-15)

    Red Earth Theater $25,000
    HVAC System Upgrade at Teen Center $35,000

    A 38% increase in Budgeted Expenditures is proposed.
    FY 2014-15 Adopted Expenditure: $38,385,154.
    FY 2015-16 Tentative Budget Expenditures: $52,817,475.

    Economists tell us as a City’s budget increases, so do its future taxes and fees.

  4. @ just sayin

    Steve segner counters misinformation from the haters on this site with actually facts, and as you said “has the balls to back it up”.

    Thanks Steve for setting these negative hate mongers straight(they know who they are)…

  5. GOOD ONE says:

    Way to go, S. Segner, comparing Sedona with Mesa. But don’t stop at that. How about comparing us to San Francisco. Don’t they have their own opera house? Just impose those city property taxes after you’re elected mayor as someone suggested is your ultimate goal.

  6. Steve segner says:

    I know , you are correct , we could just be so much more
    Steve

  7. Donna – you are 1000% correct that “most” cities use their assets to make money. OUR City just seems to borrow against them! Respect your comments and am just laughing my ass off at segner’s take on (in his “up the canyon) viewpoint” that, as he States: All is well!

    I did watch the City Council meeting today regarding the City Budget and found a rather obvious ‘Slip, Slide, moving target” of how to slide only in order to make it look good.

    Jezzzzz, I wish I could run my budgets like the City and all their paid handlers do!

    Bottom line is a simple reality check: City Council is NOT spending THEIR money – it’s OUR MONEY and they just have no clue………run out the debt further by reducing interest and not reducing the Principal? Have the ability to move funds around through a variety of their accounts – after Funds have been dedicated to a particular account? …………..wish I had those talents and abilities!

  8. SPECIAL CITY COUNCIL MEETING, 5/27/15 – 3:00 PM

    Agenda Item “b. AB 1955”

    b. AB 1955 Discussion/possible action on a request for funding in the amount of $2,084.22 for the Verde Front, a regional collaborative fostering proactive dialogue, coordination, and collective action on stewardship of natural and cultural resources.

    And this little tidbit slipped into a “Special Meeting?”
    But hey, folks, it’s “only” $2,084. (chicken feed to high rollers and big spenders)

  9. Just Sayin' says:

    @JeanJ

    Have you gotten out of your house lately and walked from the Y to Uptown and looked at those fun Fact Signs on the wall? Oh yah you don’t get out, you just like to bit_h! Have you gotten out of your house lately and donated ANYTHING of yourself to help the city be a better place? Oh yah you don’t get out, you just like to bit_h!

  10. Donna Varney says:

    Thank you Jean for posting that list. Very interesting that those special interest groups in the private sector – business leagues get the most dollars. Interesting as they are highest paid in the region, outside the government agencies. Even more interesting that these special interest associations are the ones always asking for money.

    There is so much we can do @Steve Segner . The first thing would be to create a Transient Bed District or a transparent fair CVB. This would create a level playing field. Make everyone in the district “Pay to Play” equally. The city of Sedona would save money by doing so. Those businesses outside the city district who now benefit from City of Sedona taxes can proudly contribute on their own. The City would be able to focus on the City. Just like the expert Larry Harmer said in the Economic Development meeting.

    Then the next thing would be to give each and every business their own voice and vote. The businesses know how to better target their customers. If your chamber- lodging marketing group can do that for them, then they can invest in your advertising agency. It is a win – win for everyone.

    I am game to help set up a fair program are you? P.S. in the State of California it is illegal to do what you are doing with taxpayers money @Steve Segner. Even Scottdale has a fair independent CVB. All groups in the Scottsdale CVB pay in equally. Those that contribute do not have to pay more to be in the CVB. These programs are fair and sustainable.

    Call me if you’re interested, you have my number.

    Donna Joy Varney

  11. Jess Lookin says:

    Fiscal Responsibility??????

    A 38% increase in one year on the budget ?? How much did your social security or income go up this year? Maybe .05% ?? Unless of course you work for the city or the fire department.

    Shameful. Wake up people.

  12. The following e-mail from Jon Thompson addresses the question about the $35k for improvements to the Teen Center:

    “A comment posted on Sedona Eye states in part the city is going to spend an additional $35,000 for improvements to the Teen Center to accommodate the Red Earth Theater. Is that accurate?”

    No, Eddie, that is not accurate. The $35K would be spent regardless of whether the Red Earth Theater or any other tenant were using that building. It’s a one-time cost “to upgrade the HVAC system at the Teen Center, so that electrical heat can be used in place of far more expensive propane heat.” That’s a quotation directly from the proposed budget notes in the 5/26 Council packet (p. 203). So it’s actually a cost savings initiative. This issue was also discussed during the two-day Council worksession on the budget last month, for which recordings are available on the city website, in case you, Anonymous Voice, or anyone else should care to research this or any of the other budget deliberations.

    JT

    Jon Thompson, Councilor
    City of Sedona
    928-821-5142

    Three other council members also responded, two of whom confirmed the $35k was already budgeted prior to Red Earth Theater’s involvement with the facility.

  13. Dan, Sedona says:

    Another time that Eddie Maddock serves the community again for going to the source; kudos. A question though remains. Why was propane for city more expensive than us as homeonwers? Propane/electric about same. Why not explore solar panels because my understanding from a local contractor is that was the most cost efficient way to go and quite a lot less expense. I wonder who on staff is in charge of cost analysis, and whether they are well trained. Let’s see the background for the decision based on the estimates. Or was this a gift to APS? Like this site more and more.

  14. @Dan, Sedona – FYI, retrieving that information from certain Council Members wasn’t without criticism about the initial source of information as having come from Sedona Eye. While yet a couple of others thanked me for the contact and appreciated the opportunity to set the record straight.

    If anyone chooses to refrain from reading Sedona Eye, for whatever reason, of course it’s their prerogative. However, as I pointed out to a Council Member, with an online subscription of I believe over 4,000 (editor/publisher call me on that if I’m incorrect) clearly not all are among those posting what some might feel are less than tasteful comments. That doesn’t mean they don’t read information provided on Sedona Eye.

    A resident informed me that Sedona Eye has had a million “hits.” Now as my computer savvy and lack of participation in social sites is limited by choice, the significance of that number doesn’t mean anything one way or another.

    My suggestion is to go directly to members of the Sedona City Council if you have further questions. If having an opportunity to reach out and convey factual information to many who might have the same question or concern, even if it’s by way of Sedona Eye, doesn’t appeal to certain Council Members, then by all means give them the opportunity to contact you directly.

    In contrast, every time I’ve asked City Staff for clarification on an issue (with one possible exception), the response has been favorable and amicably accommodated, even with appreciation and encouragement to offer facts from an appropriate source and squelch rumors and misinformation, even if it appears on Sedona Eye.

    Thank you, Dan, for a nice acknowledgment and maybe you or others can obtain answers to your additional questions without making the mistake of associating the source of your inquiry as something you read on Sedona Eye which, at least to some, will give your concern more merit.

    Thanks, also, to those Council Members who have willingly and without hesitation offered factual information without questioning or criticizing the source from which it surfaced.

    Eddie Maddock

  15. http://www.afdc.energy.gov/fuels/laws/LPG/AZ @Dan look at this Arizona rules and laws site and check the net

    @Matt Thx for link, checked it out here in Prescott & found above, always heard propane cheaper locally, solar option or keep propane?

  16. Kevin says:

    City advises switching? Look at who got what & how much. Then believe an improvement. Right on JT & other councilors? Oversight, a minimum proof of asking to review that suggestion/paperwork. Ms Maddock ask them for that?

  17. Dan says:

    kudos all

  18. Ms. Maddock says:

    @Kevin – My ears were already boxed for not having the good sense to know exactly at what meeting(s) the decision had been made and then not following up by listening to the recordings of those meetings. (5/26 council packet, p. 203)

    “This issue was also discussed during the two-day Council worksession on the budget last month, for which recordings are available on the city website, in case you, Anonymous Voice, or anyone else should care to research this or any of the other budget deliberations.”

    Since I have no reason to question Mr. Thompson’s veracity, what’s the point in reviewing conversations of a deal that’s already been accomplished? Isn’t that similar to closing the barn door after the horse escapes? After the “fact.” (There’s that catchy little word again that’s become so darn popular on this web site.)

  19. @Just Sayin ;West Sedona Resident and etc.

    Lest we not forget that our watchdog Jean J. reports Factual City Budget expenditures: “Red Earth Theater $25,000 – HVAC System Upgrade at Teen Center $35,000”. Seems easy to me to connect the dots.

    Call me Crazy! but didn’t the Teen Center survive, very well, with the existing HVAC system?

    OR……until the new (out of the Blue) “red earth theater” came along and wants us City taxpayers, via the City Council funding, to Support Them by $2000.00 per month? I don’t believe they went through the proper Budget process???

    As I recall – the only reason for the HVAC upgrades (to the Teen Center) is simply to upgrade HVAC to protect the high powered lighting they ( the theater group) need for their “theater” productions.

    Our Council man JT writes: ” It’s a one-time cost “to upgrade the HVAC system at the Teen Center, so that electrical heat can be used in place of far more expensive propane heat.”
    Really, JT – there’s NO connection between a vacant building not being heated And a New tenant that needs much more HVAC in order to deal with their theater lightening needs. Could you answer us JT on why the City is paying for this group to the financial levels You and our Council are and they never went through the proper procedures set by the City?

    JT, You really want all of us to believe that You knew Nothing about an upcoming new tenant/lease/city becoming their Partner of the newest want to be’s on the dole out of City Funds – by your actions?

    I did watch the 5/27/15 Council “Special” meeting today (regarding the item 3 b.) and witnessed Yet another actual instance where the Council simply Avoids due process that is set in place to protect us taxpayers and the crazy spending sprees many Councils like to personally trip down, and forgetting where ALL those wanting funding must get in line and submit by a certain date………..so that all their financial wants are listed at the same time and can or should be compared against each other. I’m talking about finical information that can and should be substantiated; a business plan… and who are running the “group”, etc., etc., etc.

    Seems that honorable (and well defined process) concept has been tossed into the cesspool of just 7 folks wanting to feel good as they diffidently have forgotten how City funds are supposed to be weighed against each other!

    Other really interesting thing I saw on today’s c.c. meeting was our new City Manager making the bold statements of not giving his opinion on most council actions! WOW! Impressive, to say the least! I surmise he took that stance so he is not connected to most of your selfish and rather dumb decisions!

  20. JeanJ says:

    JT stated during the 5/26 Council meeting: “We’re working down our excess reserves.” That City Council has authorized staff to proceed with lining up approximately $10 Million in new bond debt when the City has excess reserves it is spending down is lunacy in my opinion.

    The City’s outstanding bonded indebtedness as of the beginning of this fiscal year: $46,645,000. According to the Arizona Dept. of Revenue, Sedona’s per capita bond debt, $4,649.62, is the 7th highest of Arizona’s 91 cities. The average per capita debt for cities and towns with outstanding bond debt is $1,765.98. Taking on additional City bond debt will lead to more problems than it solves.

    Turning to the sewer plant. Wastewater fees were the highest in the region before nonstop annual rate increases began in 2010. At that time, the City also began shifting more of the wastewater burden onto hard-pressed ratepayers by systematically decreasing annual sales tax allocations from the General Fund to the WW Fund–down from 46% to 30% thus far. This is freeing up extra millions in the operating budget to overspend. Bond debt is a very significant factor in WW fees. With a WW fund balance net/reserves in excess of $10 Million at 2015-16 year end, the City should be retiring WW bond debt far faster than it is.

    What next in Council and staff’s financial wants line-up?

  21. steve Segner says:

    Jean j
    Per capita bond debt, $4,649.62, means nothing, it would if tax revenue came from each resident, but, as we know it does not.
    Sedona has a visitor base that pays most of our bills.
    Bond debt should be looked at as a % of income and income is up.
    You use the words. “Hard-pressed ratepayers”? Sedona residents only pay a sales tax to the city and it went down several yeas ago, you need some new words of fear.
    Steve

  22. JeanJ says:

    Per capita debt is just one way of illustrating how serious the debt problem is in this city. Locals should be very concerned that the current Mayor and Council are spending down reserves/savings, yet have approved increasing sales tax bond debt by approximately $10 Million.

    That Sedona’s visitor base is paying most of our bills is hogwash. Taxes pay only 31% of the City’s bills.

    In addition to 30% – 35% of sales taxes, sewer taxes and shared revenue such as state income taxes, state sales taxes, state gas taxes and county vehicle license taxes are primarily attributable to residents. Last year’s totals:

    Sewer taxes $5,421,995. Residents pay over 50%. Meanwhile lodgings have a multitude of toilets and wash an abundance of sheets and towels daily.

    State Shared Revenue:
    Sales Taxes $873,126
    Income Taxes $1,118,062
    Gas Taxes $780,913

    Shared Vehicle Taxes from Yavapai and Coconino Counties: $508,518

    That the sales taxes residents pay to the city “went down several years ago” is untrue. It was Jan Brewer’s 1% state sales tax that went down/expired. Sedona’s sales taxes are up there with the highest in the country. Yavapai County Sedona: 9.35%. Coconino County Sedona: 9.90%.

    The Chamber and the Lodging Council are part of Sedona’s problem. Sedona has exceeded the limits of sustainable tourism.

  23. steve segner says:

    says Jean
    The Chamber and the Lodging Council are part of Sedona’s problem. Sedona has exceeded the limits of sustainable tourism.

    8000 people that work in Sedona will not agree. We are just now getting back to the levels of 2008.
    Jean, we have no tax , once aegean we have no city tax, Visitors pay the bulk of the cost of running the city, you want us to stop growing and stop spending ,I get it it will not happen.
    steve

  24. Sally says:

    And if the city goes broke, will those millions of tourists who allegedly supported the residents over the years bail us out? How about the chamber of commerce, lodging, tourism bureau (one and the same). The film festival, wine fest, arts coalitions, main street, red earth theater or multitude of other special interests and non-profits? All money-takers without proof of return on investment. Will they bail out Sedona? How will that work?

    My guess would be that if it’s legal every property and business owner within Sedona city limits would be handed a bill for the city’s per capita indebtedness, $4,649.62, that Jean J has accurately pointed out. It won’t be the glamorous out-of-city resorts, hotels, and other chamber member businesses that will be footing the bill but helped to lower tax revenue with their ability to advertise “no city taxes” while at the same time being promoted by city financed chamber of commerce.

    Oh, but of course, the millions of tourists will gladly return to Sedona and divvy up the bond debt because they had such a swell time here once they bucked three hours in a traffic jam and found a place to park.

    By the time the money tree bears no more fruit, all the free-loaders, including chamber, lodging, and affiliates will have pulled up stakes, withdrawn their bank savings, and moved on to greener pastures to start the process (art?) of scamming all over again.

    Reality ain’t exactly a pretty picture.

  25. anonymous says:

    I agree with JeanJ. There Steve goes again inflating the numbers. Steve wants the city to pay for the region when that region does not contribute to the tax basis. Steve has his hand in the cookie jar. Don’t believe one word of your spin Steve.

  26. Steve segner says:

    Spinn ? Bail out sedona? Sedona is doing great , anonymous, why are you so up set that some hotels in the village may get some business, good for them, they send a lot if business to sedona, get over it , so you really think the hotels will just up and move if time get bad? Really we will walk away from everything.
    Comment, steve has his hand in the Cooley jar! What jar, there is no jar…
    You say thing like that when you have no number to back you up.
    I pay thousands to the chamber each year, and I would advertise more if they would let me, the real idiots are business people that won’t work together.
    Steve

  27. Donna Varney says:

    @ Steve segner I agree with JeanJ and anonymous. 8,000? You are the beneficiary of city tax payers money. You have a major conflict of interest. It boils down to 1.3 million dollars 2014 and over 10 million dollars to date.

    Here is the post-
    Thank you Jean for posting that list. Very interesting that those special interest groups in the private sector – business leagues get the most dollars. Interesting as they are highest paid in the region, outside the government agencies. Even more interesting that these special interest associations are the ones always asking for money.

    There is so much we can do @Steve Segner . The first thing would be to create a Transient Bed District or a transparent fair CVB. This would create a level playing field. Make everyone in the district “Pay to Play” equally. The city of Sedona would save money by doing so. Those businesses outside the city district who now benefit from City of Sedona taxes can proudly contribute on their own. The City would be able to focus on the City. Just like the expert Larry Harmer said in the Economic Development meeting.

    Then the next thing would be to give each and every business their own voice and vote. The businesses know how to better target their customers. If your chamber- lodging marketing group can do that for them, then they can invest in your advertising agency. It is a win – win for everyone.

    I am game to help set up a fair program are you? P.S. in the State of California it is illegal to do what you are doing with taxpayers money @Steve Segner. Even Scottdale has a fair independent CVB. All groups in the Scottsdale CVB pay in equally. Those that contribute do not have to pay more to be in the CVB. These programs are fair and sustainable.

    Call me if you’re interested, you have my number.
    Donna Joy Varney

  28. Jess Lookin says:

    Stagnant incomes, rising expenses. Yet our out of control city thinks it can spend 38% more year over year.

    What the short sighted City does not realize is that doubling their spending every few years will put them out of business. City employees will join everyone else applying for a minimum wage job.

    http://charleshughsmith.blogspot.com/2015/05/us-households-under-pressure-stagnant.html

  29. steve Segner says:

    Jess Lookin says:
    Stagnant incomes households under pressure…
    Remember you pay no city tax.

    RDS sales and bed tax collections for April (received in May), this morning. April is a record! We collected $1,562,317 in Sales Tax and $389,891 in Bed Tax. Best sales tax month prior to this was $1,404,914 in October of 2009. Best month for Bed Tax prior to this was April of last year with $283,077. There is a small chance, that RDS will make an additional deposit today that would only increase these figures.
    We are just getting back to 2009, bed tax up over $100,000 in one month
    I just like to post the numbers,
    steve

  30. steve Segner says:

    Donna-
    Here are my responses to your concerns and comments:

    1. The City of Sedona cannot create a Transient Bed District, as it would need to be put in place by the State. We have looked into doing this and it would take years, if it can be done at all.
    2. You said (I): “I have a major conflict of interest. It boils down to 1.3 million dollars 2014.”
    The City pays the Chamber to run its marketing programs, not me, and not the Lodging Council. The Chamber is doing a great job with the bed tax designated to market Sedona. The bed tax TAXES visitors, not residents. Also, these funds are not in my control OR in the Sedona Lodging Council control. As an aside, as a small hotel owner in Sedona, I pay to be Chamber member and pay for advertising done through the Chamber.

    RDS sales and bed tax collections for April (received in May), this morning. April is a record! We collected $1,562,317 in Sales Tax and $389,891 in Bed Tax. Best sales tax month prior to this was $1,404,914 in October of 2009. Best month for Bed Tax prior to this was April of last year with $283,077. There is a small chance, that RDS will make an additional deposit today that would only increase these figures.

    We are just getting back to 2009 visitor levels.

    3. You said: “This would create a level playing field, making everyone in the District “Pay to Play”. Donna, anyone can join the Chamber.

    4. You say: “…. give each and every business their own voice.” Donna, come to meetings! Be a voice at the meetings, if you care to. Each member and advertiser with the Chamber has a voice.

    5. You said: “Those businesses outside the City District that now benefit from City of Sedona taxes, why?” Because we say come to Sedona, and some visitors stay in the village or the valley. People who come to the area have choices.

    6. You said: “You are the beneficiary of City Tax Payers money”. The City of Sedona designates the money collected for the use of marketing. Every business in Sedona benefits from the visitor dollars that come to the area. The City of Sedona set up a bed tax to cover the costs of marketing Sedona. Our elected officials approved and oversee the program.

    7. You Said: “Fair independent CVB. Run by its members.” Yes it is call the Sedona Chamber, a membership based organization. Join the Chamber, come to meetings!

    8. You Said: “P.S. in the State of California it is illegal to do what you are doing with taxpayer’s money.” This is not California. Everything the Chamber and City do with the hotel tax is legal and legitimate. This is a program that taxes visitors, not residents for purpose of marketing. The Chamber is hired by the City to run the marketing programs. The hotel/bed tax is a standard tax program run by thousands of cities nationwide to run CVB’s and Chamber destination-marketing programs.
    .
    Hope the answers your questions.
    Steve Segner

  31. Get Real says:

    And so the economy’s on an upswing which means an increase in tax revenue, with or without all that money tossed to the wind for “Destination Marketing.” Certainly this year in January/February business was unusually good because of the Super Bowl in Phoenix plus horrible weather back east. And we always have the staggered Spring Breaks. The real test will be during the next few months which are generally slow. It will be interesting to note occupancy during those months. In the meantime, this city is foolish to go deeper in debt. Money borrowed must be paid back. DUH!

  32. Jess Lookin says:

    @steve Segner

    Once again, I call you a liar.

    One of the Nazi’s (Goebbels) said if you tell a big lie long enough and keep repeating it people will believe it. Is that your strategy Steve?

    I went out to a nice $12.00 meal in Sedona, I was charged $1.20 in tax, part of that went to the city. I suggest the readers look at their utility bills, your vehicle registration, the gas pump, their bill any time they eat out or buy hot food. Your monthly sewer bill, is that optional Steve? The city gets a cut every time.

    Steve says you do not pay a city tax, HE IS LYING.

  33. JeanJ says:

    A resident who indicated he lived in some spectacular tourist towns before his 14 years in Sedona posted outstanding, very relevant comments elsewhere. He wrote:

    “……all grappled with the same issues of limited economic diversity, dependence on tourism, difficulty in making a small business survive; impacts of visitors and who should pay to mitigate them. Telluride, like Sedona, was probably the most dependent upon tourism for an infusion of new money to town. Unlike Sedona, however, Telluride was realistic about the impacts of tourism and second homes on the residents’ quality of life, on the environment, and on the City’s budget. A significant priority was an attempt to assess the costs of impacts from tourism on the tourists and on those who most benefited. Here in Sedona, we collect sales and bed taxes but give that money right back to the Chamber to attract more people into town and create further impacts that go unmitigated. One has to ask who benefits from this extravagant and selfish cycle? For starters government gets more revenue to spend and can therefore justify more departments and employees. We all know it is a rare government entity that shrinks its size or budget. Another group who really benefits are commercial property landlords who can continue to escalate rents for the small businesses who serve the growing number of tourists. As rents rise, so do commercial property values. As a retired Realtor, I can say that the residential real estate industry also flourishes as the demand for local real estate increases and sale prices (and therefor commissions) rise with demand. Owners of well run businesses that serve the tourists will also benefit. On the other side of the coin, let’s look at who loses. The environment definitely loses with more cars, aircraft and people crowding into a small space. This is true both in town and in our treasured surrounding public lands that now risk being loved to death. I would opine that the quality of life in Sedona diminishes, not from a “reasonable’ level of tourism which brings desirable amenities to the community, but from the “excessive” level of promotion and tourism that I have seen over the past five or so years. Another big loser is the resident taxpayer who does not own a tee shirt shop or rent ATV’s. All these tourists that come to town clog our streets and trail heads, increase the need for a larger sewer plant, require more police, more fire fighters, more emergency medical staff, more search and rescue capacity, etc. The additional traffic also further degrades our already terrible streets which the City seems to ignore. In my view, tourist businesses should raise their own marketing funds (which they already do). Limited public funds might reasonably be used to help worthwhile local events get established like the Sedona Marathon, Film Festival or periodic arts or other festival events that would benefit the community and its residents. The majority of tourist based tax revenues (like the $1 million plus now going to the Chamber to clog our streets) should be used to offset the impacts of existing tourism on the community and its residents. Funding should be provided to cover the additional public services including police, fire, ambulance, search and rescue, street maintenance, sewer system improvements, trail maintenance, trail head construction, etc. As it now stands most residents indirectly foot the bill for tourism’s heavy impacts so that a few business and commercial property owners can prosper. It is a well accepted fact that tourism brings low paying jobs. Many of the good people who fill those jobs cannot afford to live in Sedona. Since they are commuting to Sedona every day, they wisely choose to enroll their children in Sedona schools, which are paid for by Sedona property owners through property taxes, as is our necessarily large fire department. This is just one example of how the impacts of a burgeoning tourist economy fall on local residents. Try to drive down the canyon some Sunday afternoon, and then recall how it has been proposed that Sedona needs to build an uptown bypass and parking garages for the tourists. Who will pay for this? Would these “improvements” make Sedona a better place to live than it was ten years ago? A better solution is to back off on selling our home town as a commodity. One has to ask oneself, how many beautiful and special places have you visited during your life that were better the next time you returned years later? My experience has been that most of these special places had been over sold and over lived. Let’s not do this to Sedona.

  34. Donna Varney says:

    Thank you @ Jess Lookin You are correct, we all contribute to City taxes. In many ways. I am not an expert , but am aware of the following income generators for the city of Sedona:
    • Homeowners properties pay taxes , a portion goes to city.
    • Commercial properties also pay property tax , the city gets a portion.
    • The city gets a portion of your State income taxes.
    • A prorated income from vehicles registrations.
    • Utility Franchise fees.
    • Sales tax is charged at 3% for every business that rents a commercial spot.
    • Building, sewer, signage fees. business licenses ect.
    • Sales tax from items purchased within the city district. Along with bed tax.

    Measuring who contributes more to the sales tax basis is an interesting task. Every business and industry is different. Assumptions can make numbers take on different slants.

    We have some unique businesses that are now driving and increasing stays in Hotels & Lodging. Those businesses that provide a product that drive regional buyers into Sedona City limits are also on the rise. Every time a business brings one of our neighbors in, those neighbors contribute to the sales tax basis.

    It is not all tourists. Getting informed in this will take the city and the businesses working together. Team work and transparency. The information must be neutrally collected, without a middleman.

    Since the Chamber – Steve takes credit for ALL sales tax please remember that there are more in City businesses that are NOT Chamber members than that are. The majority of the regional chamber is just that “regional”. The majority of their membership do not contribute to the tax basis for Sedona. The Chamber has found an easy way to make money. They are the vocal majority. Time for everyone to speak up, we all have our own voice. Equality for everyone.

    Please add on to this list. I am sure I missed some items.

    Donna Joy Varney

  35. steve Segner says:

    Jess Said
    Once again, I call you a liar.
    Why do you get so personal, is it because you don’t use a real name, so you can be rude or is that how you handle all discussions?
    I just post the real numbers as give to me by the city of Sedona. You may not like the numbers.
    Yes then you spend $12.00 1/2 of the 1.20 tax goes to Sedona when a custom stays one night in my hotel they pay $66.00 in tax you do the math.
    Visitors pay our bills; thank god this is a good thing.
    You pay some small sales tax but No City Tax. Sewer is a Fee not a tax.
    Steve

  36. Jess Lookin says:

    @steve Segner

    He admits I pay a tax to Sedona when I eat out, but says the sales tax I pay is “No City Tax”. What is it Steve, how can a tax not be a tax?

    I should be glad I don’t have to pay the tax his guests pay in his hotel? If the city had it’s way I would.

    I hat a perfectly good septic system, that I was forced to fill with concrete and hook up to the Sedona Sewer and pay $54 per month. Why, because there could be no further development in the city without a City Sewer system. My septic system was paid for and free. A fee or a tax, I’ll let the readers decide.

    The readers can also decide if Steve is lying.

  37. Warren says:

    @ Jess Lookin — I totally sympathize with your plight, that being the septic system vandalism the City visited upon you. As an “almost ran” council candidate back in 2009, I was the only one to say STOP THE SEWERING NOW! But I got next to no support, even amongst those in the Chapel area who were doing the most complaining about the forced sewering that was occurring there at that time, so I did not run.

    That said, I wanted to point out that you can lower your sewer fee (which has become a tax) to $42.25 by installing low-flow toilets. I have always hated low-flows because they always took 2 to 3 flushes to work. Not so the American Standard Cadet 3! The thing really works no matter which flush button you choose, #1 or #2, and at $188 it will pay for itself quickly via the lower tax.

    You change your toilets then call the City. They send out two guys to check you are telling the truth (it takes two so no one can falsely accuse them of anything). Then your tax drops to $42.25.

    If anyone is wondering, here’s what I proposed 6 years ago. Unpopular then, and probably unpopular now. People here want a government that wastes money, and so that’s exactly what they have gotten. Written 2009:

    Eliminate Arts & Culture Dept. – no more welfare to “artists”
    No more corporate welfare to the Chamber of Commerce, Main Street Program, etc.
    No more grants to the RoadRunner
    Eliminate Parks & Recreation Dept. – put park maintenance out to bid and eliminate all fitness and entertainment programs, road trips, etc.
    Stop the sewering now – the state mandate was met years ago; the sewer is the City’s biggest capital black hole, and residents with perfectly good septic systems are being harassed and shaken down
    Halt the West Sedona Redevelopment Plan (which is nothing more than a scam to over-develop and urbanize West Sedona)
    Stop paying for a Washington, D.C. lobbyist – no more mayor’s junkets to D.C.
    Pursue National Scenic Area designation for the National Forest land around Sedona to protect it from development “land swaps”
    In general, the city needs to get back to the basics of government – police, roads, and meeting existing state mandates such as the Humane Society for animal control. All the fluff needs to go.

  38. With reference to my comment posted 5/25/15 – 9:31 AM, it elicited a couple of questions creating a trip down memory lane which might be worth sharing.

    FROM E-MAIL: “When meager creature comforts are appropriately funded, then why wouldn’t that be the appropriate time to cut the remainder of the pie? Not the other way around.”

    QUESTION: What meager creature comforts are you speaking of?

    RESPONSE: It took a while for me to track this down but the two quotes are from a Sedona Eye article and explain how Brewer Road presently has $150,000 earmarked for improvements. I see there’s an open house there for public input this afternoon, 3:00 to 5:00 (May 30th).

    https://sedonaeye.com/countdown-to-a-new-fiscal-year

    “COMMUNITY DEVELOPMENT: Brewer Road property design for future development: $150,000
    Note: City staff will recommend source of this funding to come from the Community Facilities District (in-lieu of bed tax fees) generated by the Fairfield and Summit timeshare complexes, earmarked use to be directly beneficial to residents.

    Unfortunately, according to Ms. Karen Daines(Assistant City Manager), “Projects without dedicated revenue streams, including most sidewalk, drainage, and public safety projects, must all compete for a finite amount of General Fund resources” and Development Impact Fees and money from this Community Facilities District must specifically benefit residents. Is there really justification to use it for purchasing vacant land for parks and, most recently, staff recommendation to use Fairfield/Summit “in-lieu of bed tax” CFD funds for future development of the Brewer Road property? Does this interpretation mean that sidewalks, drainage, and public safety projects don’t benefit residents and, yes, even tourists?”

    This is more specifically what I was addressing in my previous e-mail to you. (sidewalk, drainage, and public safety projects “must all compete for a finite amount of General Fund resources” while $150,000 has been allocated for improvements to Brewer property.)

    FROM E-MAIL: “Why is it this City is engaging financially in the business of theatrical production? Why isn’t Red Earth Theater leasing the Teen Center from the City? Why doesn’t the City sell the facility? It’s been nothing but a White Elephant since the City accepted ownership from Kiwanis/Sedona 30 or whoever it was built it in the first place.”

    QUESTION: Requested clarification.

    RESPONSE: “Having gone back to council agenda of meeting on April 14, Item 9A – City TO FUND lease to Red Earth Theater to use Teen Center, $29,000 – $25,000 which will cover the lease agreement for one year @ appx. $2,500 per month PAID BY CITY TO RED EARTH THEATER for a Service Contract. Yes, it is the city spending the money. Red Earth Theater is NOT paying the city to lease the facility. In addition, Karen Daines explained the cost to the CITY will be yet another $44,000 annually for utilities and maintenance! The issue was continued to the April 28th meeting as a consent item at which time John Martinez pulled it for further discussion and it was approved. The additional $4,000 of the $25,000 representing the $29,000 was to cover the months of use by Red Earth during this fiscal year (paid by City to Red Earth.)

    This, after the city has been offering and advertising the Teen Center as a venue to rent out for actual income to the city instead of the other way around?

    FROM E-MAIL: “Why is financing a theater group more important than streets, drainage, and traffic control just to mention a mere three examples of basic needs that continue to be put on the back burner for what appears to be warped values of what is necessary?”

    CONCLUSION: Now do you understand my concerns? Especially as pointed out in my previous e-mail there are no dedicated city funds for sidewalks, drainage, and other public safety projects.

    Amazing.”

    End of e-mail response to the questions. However, does anyone else wonder how many members of the City Council are aware of the $150,000 budgeted for Brewer property improvements? Does anyone recall financial improvements to that property at the time of purchase were to come from public/private partnership(s).

    Is anyone else wondering whether or not all members of he City Council really were aware that it is the City agreeing to pay Red Earth Theaters the $2+k monthly and not the other way around?

    Hope this makes your day.

    Eddie Maddock

  39. Donna Varney says:

    @ Steve Segner Didn’t see your response. Here is mine line by line.

    1. No one ever said a “city of Sedona Transient Bed District” It would be a regional one. I know of a firm that sets them up. They can be done fairly quickly if everyone works together. It could have already been implemented.

    2. We all know the Lodging council is an affinity group of the chamber it is all the same. I know your members don’t get a vote. You decide for everyone. Bed Tax increase it a perfect example.

    3. The Chamber is a private membership based organization. They are not part of the city government.

    4. No one ever gets a vote. I was a chamber member for approximately 17 years and quit as I never signed a waiver giving up my rights. The members only get a vote on board of directors. I can better invest my market dollars and get a return on my investment. Joining the chamber is a big waste of money.

    5. The city of Sedona should not be funding private enterprise, your chamber. The City of Sedona should be reinvesting those dollars into the city. If they took out a RPF then the city would own 100% of collateral. Website, video, ect. No one outside the city would be included. This is how Flagstaff does it. Prescott also. California law forces Cities to be fair. Check out Newport Beach Steve. There is a Ritz Carlton right outside Newport. Guess what the Ritz isn’t advertised on NB city owned websites.

    6. No one but Chamber members benefit from the visitor’s center. Over ten million dollars given to the chamber has come from the general fund. The city of Sedona had financed and paid for all chamber assets.

    7. The Chamber is not a CVB. You know it. A CVB doesn’t have members. You take money from one city to market those outside the district. Scottsdale’s CVB is not the chamber. Hotels do not have to pay more; the bed tax pays their ads.

    8. I do not agree. I believe the laws are being bent. Completely unfair to each and every stakeholder and resident in the city limits.
    If the city hired an independent company to market them they would own 100% of collateral. By your own actions the Chamber is marketing the chamber, not the city. It would have been an easy solution to market the city. But Jennifer told me she was responsible to her regional members and was not open to being fair. It is all about the chamber $$$$.

    Please stop falsification the words and numbers. The Sedona Chamber can never be a CVB your structure is incorrect. The “buddy” systems are to embedded in the chamber for the chamber to migrate to a fair and effective city of Sedona ad agency. The only way this will occur would be to remove all conflicts of interest and hire a professional independent contractor. They would utilize target marketing that includes in city only.

    I encourage every resident and business to speak up as those misusing city funding believe your silence is endorsing their behavior. They go before City Council and ask.Silence gives them approval. Please speak up. Most businesses and residents I know work hard and get paid less. The highest paid are governmental agencies and those trade groups getting funding from the city, Sedona Chamber. Trade organizations like the Chamber need to get funding directly from their members.

    With the sweetest regards,
    Donna Joy Varney

  40. When I checked the link (Maddock 5/30) the referenced article is dated June 4, 2014 – just short of one year ago. Since then four of the seated council members have been replaced by Moriarty, Thompson, LeFevre, and Jablow.

    Now the financial report of one year ago was a result of the “old” council, with the exception of Williamson, DiNinzio, and Martinez who are carry-overs from the past council who were still seated in June of 2014.

    Correct me if I’m wrong (and I’m pretty certain someone will) but when candidates run for city council does anyone recall any of them who didn’t include in their campaign the promise to be “fiscally responsible?”

    Without “dedicated funds” for basic needs, as indicated by Assistant City Manager Karen Daines, such as most sidewalk, drainage, and safety projects, how can these people justify their actions? Oh, but of course, once elected they don’t need to. We can thank Mayor Moriarty and Councilor Williamson for requesting the Red Earth Theater lease be placed on the council agenda. The cash register is still calculating the total amount of that latest “fiscally responsible” decision.

    John Martinez used to stand by his principals and vote “no” on practically everything financial. Of course, his lone vote was insignificant and meaningless in the final result. At the end of his term, Mike Ward was actually beginning to see the light. Too little to late.

    Now even Martinez has thrown in his hat and conceded to the overwhelming majority as he for the first time I believe voted in favor of the tentative budget now on the table for approval in July.

    Donna Varney is correct. If residents and business owners don’t pay attention and stand up for their rights, the steamroller will continue its rampant one-way shopping spree to fritter away public funds on non-essentials. And when the money has all been spent, what then? Isn’t it obvious? Be prepared to ante-up you people who complain to one another but don’t do anything about it . . . like take time to mail in a ballot when there’s an election.

  41. Alarmed says:

    Obviously, the $150,000 budgeted for the Brewer Road Community Focus Area is only the beginning. The City purchased the old Ranger Station property, which includes a house, barn and pumphouse, AS IS. Asbestos is reported in all three buildings. Only the house and barn are historic. Eradicating the asbestos will not be cheap. Figures up to $1 Million were tossed around when Kevin Snyder was the Director of Community Development.

  42. sharlett says:

    New Topic regarding: “Eye on Sedona Budget Review and Planning”; and not trying to move off topic of how our residents are required to spend their monies, as I believe this is very relevant!:

    Today I learned, seemingly late in the game of throwing money down a hole – about another waste of taxpayers money. I’m not really sure where to post my comments – so I am doing it here. Hope you all will weigh in and help me understand this.

    What I learned is that, as Tax Payer’s, we have somehow allowed our Fire Chief to have moved out side of Sedona and bought a house in the Phoenix area and he and his family resides there! What did his contract with Sedona require him to do? My recall is he needed to live within Sedona boundaries?

    Seems our Fire Chief drives to his Main/Only residence in Phoenix area in a vehicle paid for and maintained by Our fire district tax payers (on all levels) – and he only spends 3 – maybe 3.5 days a week in Sedona so he can meet his 40 hours a week requirement! What!???

    My question is just Who changed his contract?

    Reason I’m posting this under “Sedona Budget Review and Planning” is simply because it is relevant to how WE, as Tax Payers, keep getting swept under the table as though we are brain dead! The Fire District Board, the City Council, the Regional Chamber and the “affinity” group of the lodging council (what a crock of garbage) keep steeling money away from the real needs of our community….all with out our votes.

    I’m tired of the shell games and want true transparency on all levels of where WE PAY TAXES!

    Easy question and should be a straight forward answer by all.

  43. “Projects without dedicated revenue streams, including most sidewalk, drainage, and public safety projects, must all compete for a finite amount of General Fund resources”

    In other words, unless bonds, special improvements districts or the citizens of incorporated Sedona agree to city property taxes, there will never be “dedicated revenue streams” for what is REALLY needed in Sedona. It’s all about breaking promises and commitments made at the time Sedona was incorporated. Lies and betrayals.

  44. Just Sayin' says:

    @Sharlett

    Sounds like you have a personal question about the SFD fire chief to ask and I think that I have the best of all answers; why not email or call him for a real answer? Otherwise you’re doing what you always do, stir the pot with BS and watch the comments fly.

    I really don’t give a rats patute what the fire chief does, he’s not the guy (or gal) that comes if I call 911. That’s all I care about.

  45. sharlett says:

    @ Just Sayin’ –

    Find it so slimy amusing that you just keep looking for every way in order to NOT step up to Truths that harm our little community.

    I’ve NO “Personal” anything about or with the SFD Chief – I just loudly question how He/they spend their (OUR) money as the Chief’s contract, as I recall, required him to live within our district! What did I miss? Am I incorrect that he and his family have moved – lock, stock and all household goods, to PHx?

    If I’m wrong then PLEASE let me know!

    Could we stay on topic on this issue?

  46. steve Segner says:

    I recall, required him to live within our district!
    Typical “I recall” well before you post find out.
    Steve

  47. JeanJ says:

    Regarding tourism, when are enough tourists enough? The City’s underinvestment in streets and drainage infrastructure is ongoing. In my opinion, Sedona has exceeded the limits of sustainable tourism, and the Chamber of Commerce and its Lodging Council affinity group are a major part of the problem.

    Below are some salient comments by a 14-year resident and retired Realtor relative to the SELLING OF SEDONA Opinion re the Chamber (posted a few months ago on The Biz).

    “Unlike Sedona,….Telluride [Colorado where he lived for 12 years] was realistic about the impacts of tourism and second homes on the residents’ quality of life, on the environment, and on the City’s budget. A significant priority was an attempt to assess the costs of impacts from tourism on the tourists and on those who most benefited. Here in Sedona, we collect sales and bed taxes but give that money right back to the Chamber to attract more people into town and create further impacts that go unmitigated. One has to ask who benefits from this extravagant and selfish cycle?”

    “….On the other side of the coin let’s look at who loses. The environment….with more cars, aircraft and people crowding into a small space….I would opine that the quality of life in Sedona diminishes, not from a ‘reasonable’ level of tourism which brings desirable amenities to the community, but from the ‘excessive’ level of promotion and tourism that I have seen over the past five or so years. Another big loser is the resident taxpayer…All these tourists that come to town clog our streets and trail heads, increase the need for a larger sewer plant, require more police, more fire fighters, more emergency medical staff, more search and rescue capacity, etc.”

    “….The majority of tourist based tax revenues (like the $1 million plus now going to the Chamber to clog our streets) should be used to offset the impacts of existing tourism on the community and its residents. Funding should be provided to cover the additional public services including police, fire, ambulance, search and rescue, street maintenance, sewer system improvements, trail maintenance, trailhead construction, etc. As it now stands, most residents indirectly foot the bill for tourism’s heavy impacts…A better solution is to back off on selling our home town as a commodity.”

  48. Just Sayin' says:

    @ Sharlett

    Are you wrong, I have no idea nor do I care.

    It seems that you are kept awake at night by such drivel perhaps you should call the man and ask him.

    All I care about is that when I have called 911 for medical care for my husband, those dedicated folks showed up lickidy split. They were able to do their job perfectly without a fire chief. Unless his living arrangement’s hinders the arrival time to keep my husband alive, I’m not concerned.

  49. steve Segner says:

    Jean, Great news,
    Tax Revenue exceeds budget by $1,127,753 YTD

    That will fix a lot of streets!

    Please find attached the March 2015 Monthly Financial Report and the March 2015

    Sales Tax Revenues exceed budget by 14% Year-To-Date (YTD)

    Sales Tax Revenues are 10% higher than prior YTD actual collections

    Bed Tax Revenues exceed budget by 14% YTD

    Bed Tax Revenues are 24% higher than prior YTD actual collections

    Bed Tax Revenues exceed budget by $210,021 YTD

    These reports and reports from prior periods can also be found on the City’s website at:
    http://www.sedonaaz.gov/Sedonacms/index.aspx?page=1087

    Sedona is A Resort town and has been from the building the first Camera shop up town.

    A resort town, often called a resort city or resort destination, refers to an area where tourism or vacationing is the primary component of the local culture and economy. A typical resort town contains one or more actual resorts in the surrounding area, though there are some instances where a resort town simply describes a locale popular among tourists. A resort town also refers to either an incorporated or unincorporated contiguous area where the ratio of transient rooms, measured in bed units, is greater than 60% of the permanent population. [1]
    Generally, tourism is the main export in a resort town economy, with most residents of the area working in the tourism or resort industry. Shops and luxury boutiques selling locally themed souvenirs, motels, and unique restaurants often proliferate the downtown areas of a resort town.

    NIMBY (an acronym for the phrase “Not In My Backyard”), or Nimby, is a pejorative characterization of opposition by residents to a proposal for a new development because it is close to them, often with the connotation that such residents believe that the developments are needed in society but should be further away.

    steve

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