Home » City Council, Community » Law of Unintended Consequences Meets Probable New Sales-Tax Policy

Law of Unintended Consequences Meets Probable New Sales-Tax Policy

Sedona AZ (May 8, 2013) by J. Rick Normand, Financial Columnist to the SedonaEye.com

We all keep hearing the arguments from our City’s Council, with the exception of our Vice-Mayor, and from the Sedona Chamber of Commerce and City Staff that we need additional bed and sales taxes to pay for the unexpected costs of additional destination traveler marketing and the implied possibility of redirection of those collections to future capital improvements at a future date. The implication is that agreement by the public to pay for these new and never-ending taxes and fees is the moral duty and obligation of the public-at-large.

J. Rick Normand

J. Rick Normand

Not exactly!

When a politician or commercial beneficiary of these taxes tells the public that they must fulfill their civic duty by unchallenged agreement to pay them, what they’re not saying is that the unexpected need for these soon-to-be newly levied taxes is the result of just one of two things:  They are that 1.] the City mistakenly forecasted revenues too low as well as capital improvement costs, or 2] the City spent precious reserves on non-productive projects at a time when they should have known they couldn’t timely replace those critical lost reserves.

That’s it! Nevertheless, even if the new cash flow is, indeed, desperately needed due to the City’s own misguided largess, there must still be considered the prospect of unintended consequences if the proposed new tax is adopted. These, the public is never told about. Staff and Council just assume that any newly legislated and ordained tax will be collected without offsetting consequences.

Not true!

Here are the possibilities that are not being conveyed to the ordinary citizens of the City of Sedona:  1] Irrespective of the Chamber’s proposed destination traveler advertising campaign, Sedona’s Business Model won’t attract sufficient destination travelers to support the City’s basic budget needs because it can’t offer robust and diverse nightlife attractions that permit large crowd interaction which is unequivocally essential to the nightlife requirements of most destination travelers.

A quiet night at Sound Bites won’t do it. That only appeals to locals. Robust destination traveler nightlife requires the excitement inherent within the interaction of large crowds, not the quiet repose of our late night establishments (before you all panic over this statement, see the alternative “quiet” solution below). The reason we all go to the movies is in order to experience the thrill of being with others, en masse, who enjoy and react as we do to the very same entertainment. People want to share a thrill. Otherwise, everyone would just stay home and watch movies on DVDs.

2] Sedona’s Business Model is entirely based upon excise tax, bed tax, and fee based income in a small business marketplace, split almost equally between locals and tourists with a not-so-huge bias towards tourism, that is deteriorating…even before a recession. The City may ordain new taxes, but it won’t collect much.

3] Sedona’s forecasted sales tax collections, subject to the next legislatively imposed new tax, will cause a serious number of non-tourist related small business failures because it will drive local business customers to the VOC, Cottonwood, Camp Verde, Flagstaff, Prescott and to online retailers. Most all of Sedona’s non-Chamber retailers and many of their member retailers will confirm this. Sedona will cause a mini-business boom in the Village though.

4] A new/additional sales tax will criminalize many marginal non-tourist small businesses which will have to offer under-the-table discounts for necessarily unreported cash sales in order to survive. Penalize them when caught and they will just file bankruptcy. What will the City do? Start leining then, suing them or arresting them?

Well, you all should know that Council has already passed an ordinance to permit the City to fine delinquent sales tax remitters or jail them for up to six months. Wait until word of this spreads around the state! What if Council raises taxes and then uses legal force to hammer those who’ve lost business due to the fact that the last sales tax increase has cost them significant business. Talk about killing new business prospects.

And besides, don’t we have enough political animosity in this town already?

5] A new/additional sales tax above the current total combined tax load threshold is seriously regressive to seniors, retirees, and low income residents, and it’s punitive to non-tourist related small businesses. Effectively, it will seriously damage, if not destroy, the retiree and second home real estate markets and Sedona’s population will shrink even more…and do it quickly.

Staff has completely overlooked the facts that our small businesses now have to start paying additional Obamacare ordained employment and health benefits payroll taxes that they have never had to pay before. Not only do our business citizens have to endure that, but all our property owning citizens now have to pay a 3.8% Obamacare title transfer tax on their homes, business properties and investment properties plus pay the City’s ever-rising sewer tax fees. Then, in addition to all of these new/additional regressive and punitive taxes, the Sedona Fire District is now insisting on a substantial new property tax. Sedona’s seniors, retirees, and low-income wage earners just simply cannot endure this monumental combined tax burden, and, therefore, they will just leave…permanently.

There will be no new arrivals to replace them, either, except for bargain basement bottom dwelling investment property buyers who are always very clever at finding ways to avoid local taxes. And, they almost always rent their properties. Get ready for a tidal wave of low-income renters in Sedona.

6] A new/additional sales tax will discourage any new businesses from opening up in Sedona as Sedona will have developed an anti-business reputation which will be hard to dispel…ever!

7] A new/additional sales tax will discourage successful non-tourist related businesses from expanding, especially in west Sedona.

8] A new/additional sales tax will cause sales reporting to slow beyond prescribed payment deadlines and it will cause some payments to be deferred and, therefore, collection costs will rise even more than the absurd collection fees the City is already paying.

9] A new/additional sales tax will cause distrust of City government to rise exponentially.

10] All these factors, in the aggregate, will likely result in a third bond rating reduction in Sedona muni-bonds and the next one will take Sedona close to, or possibly, below prime investment grade. That will make the next anticipated General Obligation Bond offering look very dicey, indeed, especially since it will likely happen after a prolonged period of observable declining revenues, continuing observable declining allocations from the General Fund to the C.A.F.R. Waste Water Enterprise Fund and continuing shrinking population.

Successful destination traveler markets don’t shrink. We’re seriously shrinking.

Is there a solution? You bet there is.

The first step, though, is to admit that Sedona has a failing business model. Then adopt a new hybrid business model similar to those of the Cities of Palm Desert, California and Durango, Colorado. Get off the pure tax-based revenue model and go to a model combining the same, but lower, tax categories with commercial development partnerships (such as with Out of Africa or take a look at ASU’s/Tempe’s first ever UAFD plan), commercial sponsorships of nine-month’s worth of “area-restricted” three day minimum festivals and income producing events, creation and operation of profit-oriented municipally owned entertainment enterprises (zoos, aviaries, museums, movie production assistance, all fall into this category), then proceed to adoption of a public-approved transitional zoning package that will allow for development of a “no noise, no bright lights, no offensive noise, no traffic congestion causing” development environment for top night time destination traveler attractions such as enclosed specialized dance clubs with spacious dance floors, a Shakespearean Globe Theatre that appeals to aspiring collegiate actors, re-invigoration of our defunct Amphitheater, low-light side walk cafes, a multitude of night time festivals at Tlaquepaque and the Hillside Market, and most of all, the true incorporation of west Sedona into the new business model as a fully participating partner instead of a nuisance step child.

Rezone and change the look of the entirety of west 89A to a uniform attractive appearance such as Scottsdale did in similar situations. Bring in a cooperative fine arts or technology oriented college campus such as Palm Desert, CA did.

Convention facilities are a must since Conventioneers are at the top of income profile of the most reliable destination travelers. And finally, stop the local cronyism and start putting out the destination tourism development contract to public competitive bidding subject to performance bonding requirements.

Do the same with development planning too.

Start privatizing many City Staff functions by delegating them to private contractors who are recognized and proven experts in the fields of municipal management practice. For instance, the City of Palm Desert, the greatest small town tourism dynamo story in the U.S. today, which has a full time population of five times ours and a winter population that mushrooms to 81,000, manages it all with about the same number of city employees that tiny Sedona has simply by contracting city services to expert management companies with great municipal management experience on a competitive/performance bonded bid basis. This keeps city payroll low, keeps sales taxes down, although they do have a small property tax, keeps budgeted operating expenses low, leaves more money for bid selected destination traveler marketing, and allows the city to manage its own tourist/visitor information center for only $290,000 a year (remember, their city is five times bigger than ours but we’re paying a whopping $274,000 a year), all while keeping debt to a very manageable level and continually increasing non-tax revenues.

Having pointed all this out, however, I can guarantee this will happen…just watch! Every time anyone outside local government presents a pro-tax Councilor with unassailable facts and situations they always have a standard response “…but you don’t have all your facts straight, as usual, and so you don’t understand the situation (be sure to recognize the intent of the ‘as usual’ part of the standard response…it implies that no criticism from the public is ever right).” If the public is always being accused of not having their facts straight and not understanding an issue, then who’s fault is that?

It’s Council’s fault, period! I’ll tell you who does understand, though,…the monied destination traveler targeted by the Chamber (but never acquired), the world’s wealthy benefactors who invest heavily in Palm Desert, the Colorado western slopes and the rest of the small resort towns that I’ve recited to certain Councilors time and again, residents who demand and expect results instead of excuses and rationalizations for economic failure, and financiers who don’t have to worry about far “off-target” revenue, budgeted operating costs, and capital improvement cost projections and know there’s a viable proven overall business model in place which can withstand recessions.

All of these essential community players, critical to our quality of life here, expect to find a town which has a business model that the entire business community believes in, not just one pampered sector of it. We’ve failed miserably on every count Councilors. Have you read the multitude of comments that are coming in to my articles?

If you have, you should know that they’re from prominent people in Sedona who are getting sick and tired of hearing from pro-tax Councilors and Financial Staff “…you don’t have your facts straight, as usual, and so you don’t understand the situation.” Any confusion is the collective fault of the City Administration, not the public who never is told the full story as pointed out above.

Please stay tuned for my next article entitled “The Story of Sedona: The Futile Attempt to Cure a Problem With Its Cause.”

40 Comments

  1. Readers:

    I want to be clear this article is not a slam on Staff who dutifully work in our service. Bureaucracies arise to serve a social or political need (or perceived need) in an organized fashion, as systems of management, accounting, and regulatory enforcement, etc. are required. But just as bureaucracies arise, they also ossify, devote their energy to self-preservation and then implode.

    When an economy is growing rapidly, then the waste, fraud, duplication, inefficiency and bloat go unnoticed because tax revenues and budget expenditures are rising even faster than the bloat and inefficiency. The problem arises when tax revenues fall. Then the bureaucratic impulse to never-ending growth is stymied and they then turn inward as they muster their forces to wage internecine warfare with other protected fiefdoms.

    To make matters worse, when private enterprise, like our Sedona Chamber of Commerce, becomes a camouflaged subdivision of Staff, not subject to the performance requirements of low-bidder/performance bonded private contractors, then both they and Staff become co-opted such that the Chamber becomes part of the City’s economic problems, not the solution. We are at that point in Sedona. Tourism marketing needs to be put out to competitive bidding subject to submission of performance bonds.

  2. Kim Chott says:

    There is one on the City Council listening to the local businesses and citizens of Sedona. Thanks Mark Dinunzio/Vice-Mayor. Many of us are experiencing the decline in our economy. Higher taxes would push many of our local businesses over the edge.

  3. ” . . . of the people, by the people, for the people . . .” Government exists to SERVE the people, not government staff and special interests! Did our City Councilors not notice that our population is dwindling?

    The fact that Sedona has become hostile to its own population can no longer be disputed. City Councilors prodded by City staff and special interests have made many expensive mistakes and will continue to do so, if not stopped before our neighborhoods are as empty as those in Phoenix. Councilors: Turn around or resign!

  4. I run 2 retail stores in Sedona and have been doing so for 30 years, everyday customers ask me with disbelief in there face – how much is your sales tax here in Sedona? When I tell them they are shocked! We need to lower our sales tax it is to high. I am loosing sales everyday because of our out of control sales tax. Please lower our sales tax there is no good reason to keep it at the current level !!!!!

  5. Well said! All of the above facts and recommendations, so brilliantly summarized by J. Rick Normand, though verbose, only prove that Home Rule in Sedona simply hasn’t worked.

    To put such financial spending power in the hands of our Mayor and City Council was a huge mistake as demonstrated by Sedona’s varied and plentiful financial fiascos such as Barbara’s Park; attempts to take over Hwy 89A from ADOT; the ill-conceived Wetlands; and soon to be unwanted yet implemented parking meters in Uptown. By contrast, citizens of Cottonwood are PROUD of their Mayor Diane Joen’s accomplishments. They revel in their City’s marvelous recreation center; appreciate and respect their well run police force; admire their Chamber of Commerce; have a financial handle on both their budget and their fire department; and they take pride in their rejuvenated Cottonwood Old Town.

    Normand is right. Why not look to business models like Palm Desert and Durango – and for that matter Cottonwood? Be creative with such brilliant ideas as a Sedona Shakespearean Globe Theatre. J. Rick Normand’s Sedona Eye article should be required reading for City Council. He makes a lot of sense.

  6. Warren says:

    I agree with everything written except for the idea that the City should have a “business model”. The City is not a business. For them to have a business model will only foster the same sort of cronyism and misallocation of resources that we have now. Having a “business model” also only encourages the sort of loser “visionaries” we have currently running the show in Sedona.

    So EZ to be a “visionary” with other people’s money. The cities given as examples of working business models I am not so sure about. Palm Desert I cannot speak to but I have heard complaints from people who live in Durango about the endless “festivals” for this, that, and the other. I think Durango residents probably had a better quality of life when it was just the Pinto Bean Capitol of the World.

    It’s best for governments to focus on essential services and leave the “business models” to real entrepreneurs, not elected wannabes.

  7. Sandy says:

    I personally enjoy the give and take. How to keep thIs up? i’d like to hear more from elected officials than what I’ve read so far?

  8. Andy says:

    I’m a newcomer to Sedona, and I should have paid more attention to the governance and politics of the area before moving here. We seem to have a “California” model of over-taxing and then over-spending the money raised with questionable “projects.”

    I’ve noticed how deteriorated many of our residential roads have become, but hear about this wonderful wetlands we’ve built for ducks….really? I’ve also attended a briefing by the fire dept on why new taxes need to be raised. Having done many briefings to Congress and Dept of Defense leaders, I know numbers can mean anything you want them to mean, but this briefing was full of gross contradictions. Unfortunately, the board accepted the briefing without questions. We need elected officials to serve the community and not the organizations they oversee. I was also flabbergasted to hear one of the officials actually serves on another city’s fire department…has anyone heard of “conflict of interests”? We need to elect officials who will serve the community and not self-interests!

  9. Jean says:

    According to the Budget Oversight Chairman during the Council’s April 26th Budget Workshop, there’s a need for the City to find $2 million/year to pay for capital projects for each of the next 5 years.

    Even though enterprise funds cannot be used for purposes not related to the enterprise, and only 60% of us are on the sewer, in order to put lipstick on the pig the Council made plans to raid a huge slice of the WW Enterprise Fund Reserves (50%) to use for non-WW capital projects such as streets and drainage.

    So, what happens after next year when there will be no funds left for non-WW capital projects? Both Mayor Adams and Councilor Williamson spoke about putting GO-Bonds on the ballot in Nov. 2014. And at the Council Retreat last December the need to have WW monthly fees rise to the $100 level was a hot topic.

    A 1% sales tax increase will bring in $3.6 million per year, while the rise in sewer fees at the current annual percentage are already increasing the operating budget by $550,000/yr.(BOC Vice Chairman data). Not to mention that the termination of the 17% annual sales tax transfer to the Capital Fund of about 4 years ago has left approximately $1 million extra in the operating budget each year since. When is enough going to be enough?

    BTW, according to a Pew Research Center article of last month, 93% of the nation experienced a decline in wealth of 4% during the first two years of the recession and has yet to emerge from the recession.

    The City budget for next fiscal year has reached $36.3 million for all funds. It appears our City Staff and the greedhead Chamber of Commerce have convinced our clueless City Council more tourism–not cutting spending–will enable City Hall to make ends meet. More fantasy than fact.

  10. Bill says:

    Main Street pkg meters not ok with biz owners & damn tired of these fools sinking struggling biz & more planning on closing & leaving before two yrs that lie straight face to chamber

  11. sharlett says:

    Can we stay with factual information? Isn’t factual info what drives the world?

    As I read J Rick’s statements one thing I kept wondering was: where is the substantiation of his declared “truths”. While he makes some points – I call them subjective….where’s the back up? I can’t find it.

    Bill is correct in that pkg meters don’t sit well with biz owners…they work in other places but Sedona is somewhat different. And yep the uptown turn over is horrendous, to say the least.

    Jean: as I recall the 1% sales tax increase would bring in about $1.5 or $1.6m. Where did you get the$3.6? I agree that there will be the need to “find” $2m each year for the next 5 years to pay for capital projects….Yipee, we agree! One thing I’m really wondering about is this: where or when did any council get the right to spend any portion of the Enterprise or WW funds $ for something not related to sewer….what did I miss?

    Andy: maybe the ducks will benefit more than the residents? I have real ducks who love my neighborhood when the sinking road holes provide a pond they can swim in – due to rain. Add the fire department and school district tax wants to the list of city council wants and we are just….ducked!

    Terrie: where is the substantiation in any of J Ricks words? I still can’t find it. Yep his summarized comments are verbose….and yep the citizens voted for Home Rule – – – – Now What?

    Could I ask both you and Rick about this new concept of these grandiose night life plans of saving of sedona will actually save Sedona..and how will they be paid for? while I appreciate all your forward ideas – lets get real! Makes zero sense to me.

    Palm Desert and Durango and Cottonwood? Nope. None of those ring a bell for me. They are all larger than the one of a kind Sedona. Suggest we all go back to scratch and figure out how to have a real meaning of this little town of under10K and get very real with the absolute needs vs the wish lists of everyone! oh, and lets not forget: how do we pay for everything without raising any taxes….or are our eyes bigger than our bellies on the buffett line?

    A wish list is one thing – Reality of needs for a town of our size is very simply and a whole ‘nother concept!

    Cole is tracking.

    Larry is correct.

    And then – Kim – I’m pretty agog at your thanking Mark D Suggested no new taxes. – as he has never, ever, Ever done so! Please correct me if I’m wrong. Actually, as I recall, Mark definetely did call for new taxes. and as I recall he spoke about the firestorm that would come up with new property taxes and then he even went so far to mention GoBonds!!! Huh???

    Sharlett

    PS: Sandy – good luck on getting elected folks to stand up on these issues and on this site…or anywhere…..good try and thanks…maybe you will break their adversion to coming out from behind the big OZ cloth .

  12. Tommy says:

    Normand to the City is that voice in the wilderness that needs to be heeded. it’s not a wolf we are being warned about. It’s a dragon.

  13. Linda says:

    Rick Normand is an educated realist. What he is suggesting will change the face of Sedona and in turn, change many of the people who currently live here. Good … Sedona is a stale dwindling community.The beauty and weather is not enough to support it – it must offer more than just looking at the red rocks. Those red rocks have been oversold! The only thing that keeps people here is that they can’t sell their real estate. They are stuck. These are not the happy people. The illusion of Sedona works – just look at how well Enchantment does, those are visitors “enchanted” by Sedona’s weather and red rocks. It’s easy to tell the visitors from the locals- the awe struck and the stuck. Rick’s ideas may seem extreme to many of the readers, but it will take bold action to turn this city around.

  14. Marty L. says:

    Excuse me, but am I the only one who thinks Mr. Norman’s soliloquy gives new meaning to going from the sublime to the ridiculous?

    His suggestion for profit-oriented municipally owned entertainment enterprises such as “zoos, aviaries, museums, movie production assistance” somehow makes those pushing for a creek walk and related park sound like pussy cats as their wish list is concerned.

    Let us recall the failure of the Teen Center which the city agreed to take over. Plans for a museum are already in progress, and that no doubt will also fulfill Norman’s own visionary plan because surely it, too, will be dumped on the city. How much money will it take to create these additional municipal facilities? And where will it come from? But of course they will be bringing in enormous profits to the city coffers. Right!

    Already it was recently asked during the public forum at a council meeting for the city to look into owning the water company. No mention was made that two water companies serve Sedona.

    Can’t help but wonder if Norman is on the Community Plan Update committee. If not he should be. He could reinvent the “to maintain a small town atmosphere” portion of Sedona’s visionary pledge to appropriately accommodate his proposals.

    PS TO RESIDENTS IN WEST SEDONA: Remember when we were fearful that the river of lights would create a Las Vegas strip? Well, if Mr. Norman has his way that vision is in the forecast. ( of course he will have dim lights and muffled dance music at his proposed large dance halls) And let us expect that a USFS land exchange will be soon to follow for the parcel from northern most uptown Sedona to Dry Creek Road. Where else will land be available for a zoo, wildlife park, or maybe even a bowling alley and of course the convention center which none of us or destination tourists can live without.

  15. Sharlett:

    Sharlett:

    And what declared “truths” would you be referring to? And please identify my subjective points as well. Thank you!

  16. Paul says:

    Mr. Normand, a brilliant essay! As a Sedona resident of 13 years, I’ve noticed how time and time again, the city council people prove themselves to be dyed-in-the-wool la-la landers with little understanding of basic economics. Beholden to the city bureaucracy, they simply cannot come up with win-win solutions to problems. Their ‘solutions’, like more taxes, are usually at the expense of the general public.

  17. You got what you voted for and in the fire departments case you voted out the 3 that were keeping the rates low. So I have to ask are you really serious about high taxes or is this just lip service. I would bet that if new elections were held today the same people would be voted back in.

  18. Sharlett says:

    Looks like what J Rick is suggesting ( for his night life and revenue driven concepts) is equal to a tasty Chinese menu. Let’s think about it from this concept: It all looks and smells good but I only have X number of dollars to pay for what I want on the menu…and I’m short of money…so I have to become much more realistic. I can dream and then I can order. (If dreams were wishes and each one worth a dollar – wowzier – I’d be rich!)

    Seems he uses words, vs actually fixes, to craft/spin a picture that has little realism attached and a slug of unnecessary words. J Rick – just cut to the chase and stop with the mega amount of tedious lingo.

    Where do we find/or are given any financial strategies or basis to support J Rick’s creative Wish List? Also, seems he is not addressing, and there is no recognition of, the costs of the remaining very vital and necessary “fixes” to what is currently broken in Sedona…sewer, drainage and roads –let alone his menu.

    While I do admire his willingness to put his thoughts and ideas out for us to read, I am fraught to find any of his solutions and any viable fixes in a budget basis way.

    I strongly disagree that Sedona is a “stale dwindling community”. Our beauty and weather have sustained us from day one and for decades. Our beauty and weather and those awesome red rocks have sustained us so much that a secure tourist based revenue source has allowed us locals (who are not all stuck) to be free of City property taxes and have freedom of choices.

    Linda, I’m very sorry you feel stuck here…yet wasn’t it your choice to move here in the first place? As my dear Dad used to tell me – all choices have consequences.

    While I fully believe the ideas J. Rick presents are extreme and actually not well founded – I do have belief that this little town/village of 10,000 will survive both the current council and those that somehow have an illusion of what is affordable and right for us!
    And I do take exception J Rick telling me why I go to the movies….get a grip J Rick – you are only inside your mind and not the rest of us.
    Sharlett

  19. Jean says:

    Sharlett is not using factual information and lacks credibility.

    At the Council’s April 26th Budget Workshop, Ron Budnick, Vice Chairman of the Budget Oversight Commission, stated the following to our City Council concerning a sales tax increase, and I quote: “1% gets you about $3.6 million a year.”

    In re the City spending Waste Water Reserves on projects not related to the sewer system: When Staff and Council want to reach into the wallets of the 60% of us on the sewer via increasing WW rates, they call it an enterprise fund. However, the word “enterprise” is not used when the Council wants to transfer funds from the WW Reserves to the General Fund to balance the budget and to fund some non-WW street and drainage projects. In my opinion, we can expect the fund transfer to show up on the Council Agenda for approval after the Budget Cap is set on May 28th, and it is already a done deal.

    An entire book could be written about our City Hall “at work.” I agree with Cole Greenberg that the City of Sedona has become hostile to its own population.

    At the current rate the City is spending by the way, the situation relative to funding of non-WW capital projects beyond the next fiscal year is being turned into a disaster right before our eyes. General Obligation Bonds are paid for by assessing secondary property taxes. This is what our Mayor wants to do. Councilor Williamson talks about it, too. Under AZ law, GO-Bonds can go before the voters in even years in the fall.

    Don’t waste my time again, Sharlett.

  20. Claudia says:

    Is Terrie Frankel your agent or manager? Will she be arranging for you to offer signed copies of this article? New Frontiers would be a cool place. Tuesdays are senior discounts but any day is good for those of us on food stamps. It might be nice if you subtitled your second part “A Change of Sedona’s Face Forever.” This will be great for my younger generation. Thanks. BTW, do you work for the C of C? What you propose for future Sedona sounds like it.

  21. Marty L. and Sharlett,

    I said “Successful destination traveler markets don’t shrink. We’re seriously shrinking.” Yet, we have paid the Sedona Chamber of Commerce, over the last five years, over $3.1 million dollars to manage our tourism industry marketing. Every year they come back to Council and plead for even more money than was originally budgeted. That marketing effort has always been targeted primarily at Destination Travelers which our town has never been able to capture.

    The two of you criticize my plan for capture of that category of tourist based on the already proven strategies of the most successful small resort towns in America. If you don’t like the proven plan of others, or you don’t want Sedona to have a tourism-based economy, then why have neither of you ever stood up publicly against the payments of the amounts mentioned above for a plan that can never work? You both talk big on a blog site, but where are you when it comes time to take real action? Personally, I don’t really care if this town chooses to be a quiet rustic bedroom community for the wealthy retired or it chooses to be a tourist mecca. But, you’re both missing the point…we need to choose to be one or the other and stop squandering massive amounts of money due to trying to be both!

    To Marty L. only:

    It’s amusing that you see me as a shill of the City and the City sees me as the nemesis of the governance created status quo here. It’s always fascinated me how it is in this town that if anyone writes anything that’s debatable, both sides will accost the writer for being in the wrong camp.

    To Sharlett: I clearly and politely asked you to identify the “ declared ‘truths’” (I think you meant “‘infallible’ “truths””) and subjective points to which you referred in your first comment. But, you completely avoided my question and, instead, produced a bunch of corny metaphors and a critique of my writing style which have nothing to do with the point made in the article. I have no doubt, though, that if you had any experience or knowledge in the matters I write about, you wouldn’t hide behind your anonymous blog handle and would disclose your full name..or better yet, write primary articles and take flack from “nothing else to do with their time” bloggers like yourself.

  22. Ray says:

    When shocked visitors ask me, “Why is your sales tax so high?” I jokingly respond, “We have to buy a lot of red paint to keep those rocks looking nice for you!” It makes me then ask myself, “Why is our sales tax so high?…doesn’t that work against us if we want more tourists to visit?” I know that I hate to pay the high Sedona sales tax. That’s why I shop out of town or on the Internet for just about everything.

    Thank goodness, Rick Normand tells it like it is. Unfortunately, people in this town are stuck. Stuck in their ways, stuck in their thinking, stuck in their real estate, stuck between rising costs for everything as a businessperson or resident, and now being faced with more tax burden and threatened with jail if they attempt to thwart it? This is municipal terrorism at its finest.

    Has the City Council driven around town recently and seen the growing number of vacant businesses? More to come. And where is the night life for visitors or residents? One thing I always liked about traveling was doing something I couldn’t do at home like music venues, fine restaurants, and dancing. Regardless of why people go to the movies, Sharlett, let’s say a visitor goes to the late movie at Harkins. Where can they get a decent meal after the movie lets out?…Domino’s? Where can they go to listen to local music where people who go to bed at 8:00pm won’t be calling the police to complain about the “noise?”

    And how long can a city expect to keep tourists coming to a town to slide down a wet rock or shop in an uptown where they are selling the same chachki items (“tchotchke” for you purists) in most of the stores? That seems to define the problem. Nobody wants anything to change. Let’s “maintain a small town atmosphere.” After all, that’s a portion of Sedona’s “visionary pledge.” No roundabouts, no lights, no widening of the roads, no cutting down any trees in the name of progress and improvement (after all, don’t the faeries live in the tress?). Think small, stay small.

    When a realist like Mr. Normand comes along who actually understands finance on an advanced level, the financially unclean start to say things like, “but you don’t have all your facts straight, as usual, and so you don’t understand the situation.” Yes, we do understand the situation. The situation is that you will never revive Sedona’s tourism business following the path you’re on and taxing residents and tourists to death. The City Council does need to really look at Palm Desert’s model and ask themselves, “What are we doing wrong?”

    In the meantime, tourists can see the red rocks just fine from the VOC.

  23. Sharlett says:

    Jean, never intended to waste your time…please do as I have and review the Council meeting with Chamber and Lodging on 3/14,…pay attention to Council’s tally of votes and %’s and that is where you will get my dollar figure of well under $3.6m. Yep the vice chair of BOC Ron B did state $3.6m…but ya just gotta back track to get the real thoughts of the council.

    Agree that IF the City brings no new taxes in to play very soon = we are or will very soon be bankrupt…..or maybe we just get back to basics and deal with the real and very current needs vs wishes and wants…yet all the council members have wetted their verbiage with increased taxes of some sort and at some level.

    PS don’t understand your need or want to demean me? could you explain?

  24. Sharlett says:

    Rick wrote me the following and I’m happy to answer: “Sharlett, And what declared “truths” would you be referring to? And please identify my subjective points as well. Thank you!”

    Hey Rick…just my opinion – yet it seems your entire article is Subjective and doesn’t provide funding or a real sence of how your dreams will come true. Therefore no declared Truths. Everything you wrote was staged to sound like it could actually happen…,OMG! No way. Why? Because the City can’t even afford their current wish list of a creek park, a venue etc, etc, let alone a zoo.

    Please correct me if I’m wrong but isn’t this City already enough of a Zoo….so why do we need another one?

    Best regards, Sharlett

  25. My dear Claudia,

    First of all, I really am happy to see that someone your age is reading articles at SedonaEye.com. Meanwhile, you ask if I work for the Chamber of Commerce? In my comment immediately below yours, I say to Marty L.,”It’s always fascinated me how it is in this town that if anyone writes anything that’s debatable, both sides will accost the writer for being in the wrong camp.” See, you have just proven my point. No matter what my point is in any given article I’ll still be viewed as a double-agent. Trust me, both the CofC and the City Administration would like to see me exterminated.

  26. Jean says:

    For your edification, Sharlett, I watched the 3/14 Council meeting on TV and am well aware of the tally of votes, etc. I found the real thoughts of the Council very, very troubling! Once again, I agree with Cole Greenberg’s statement that “Sedona has become hostile to its own population.”

    Council and Staff are damaging the City’s financial health and future stability. They are throwing the poor, small businesses in town, and seniors on fixed incomes under the bus.

    You are the party who started demeaning people’s comments, even going so far as to denigrate one commenter’s writing style under the guise of wanting the facts.

  27. Marty L. says:

    Reply to JRN: You ask why I’ve never stood up publicly against payments of the amounts mentioned for a plan that can never work. How do you know whether I’ve done so or not? It’s interesting that you fail to make similar demands on those who support your suggestions.

    Furthermore a good reason for not doing so, should that be the case, appears in your own soliloquy quoted as follows:

    “If you have, you should know that they’re from prominent people in Sedona who are getting sick and tired of hearing from pro-tax Councilors and Financial Staff “…you don’t have your facts straight, as usual, and so you don’t understand the situation.” Any confusion is the collective fault of the City Administration, not the public who never is told the full story as pointed out above.”

    Additionally you neglected to offer sources of funding for the number of municipally owned enterprises suggested in your proposed business plan. How can it possibly come about without “pro-tax Councilors and Financial Staff?”

    Certainly if a true majority consensus finds your suggestions have merit, then let the show begin. However, not too long ago the group who managed to elect four of the presently seated council members (mayor included) based on the desire to refrain from lighting in West Sedona soon changed direction after they clearly expressed via the process of Initiative & Referendum that they believed the alternative position taken by that same council, to assume ownership of West SR89A, was far more undesirable than the resulting lights.

    My purpose of offering a comment in the first place came about without solicitation from any of your cheerleaders and was merely an attempt to express an opinion and not to engage in uncivil dialog. Agreeing to disagree is my final solution. So be it.

  28. Marty L.:

    The reason I don’t know if you’ve spoken out at Council meetings is because you’re one of those who hides behind an anonymous blogger handle. Why don’t you identify yourself? Those of you who speak while hiding in darkness haven’t much credibility.

    BTW, you’ve now used the word “soliloquy” twice in the wrong context. The definition of the word is: “A dramatic or literary form of discourse in which a character talks to himself or herself or reveals his or her thoughts without addressing a listener.” How obvious is it that an article written in a printed or online newspaper, magazine, or blogsite is addressing a multitude of listeners. Secondly, I am not a character in a literary discourse, I am a real and identifiable person. Given the definition of the word, you should realize that your comments more accurately may be defined as a soliloquy than my article.

  29. Marty L. says:

    JRN, it surely will come as a surprise to you but indeed I do know the definition of “soliloquy” and the context to which I used it was derived solely from the fact that in your list of Sedona’s new business plan ventures you included “Shakespearean Globe Theatre.” Based on that I’m somewhat astonished you didn’t find the term as having been a compliment to your own literary abilities. However, it now appears that you aren’t willing to acknowledge that anyone listened to Shakespeare.

    SOLILOQUY DEFINITION:

    “An utterance or discourse by a person who is talking to himself or herself or is disregardful of or oblivious to any hearers present (often used as a device in drama to disclose a character’s innermost thoughts): Hamlet’s soliloquy begins with ‘To be or not to be’.”

    Perhaps the most unfortunate aspect of this exchange is that on most counts we are in complete agreement with your assessment of Sedona’s financial direction. It wasn’t until I read your suggested remedy that we parted company and as previously stated my position is and remains to agree to disagree. My mistake as it appears at this juncture is that I wasted time reading your non-soliloquy in the first place. No more!

  30. I have read all the comments. I agree with some and I disagree with some. Why is it that a small town can’t fix this mess? You should read all the comments and give it thoughtful consideration. Being quiet doesn’t fix anything. Be true to your beautiful red rocks.

  31. Rick – find it interesting that you think the credible component of a person’s viable comments are that they spoke out at Council…wow!

    I pull up my big bowl of popcorn to watch those meetings and can’t remember the last time I saw You speaking at a Council Meeting……or did I miss it?

    Please do not presume to know one thing about me because you simply do not. Because I don’t agree with all the stuff you write doesn’t mean I’m of a lessor value than you, Rick.

    I’m as able to have my own opinions as you are. Wish you understood the concept of a dialogue or conversation. Obviously you do not.

    You have your ideas (without costs associated – just the Chinese menu) All I’ve been asking for – versus your rainbows – is just the costs that your dream list will cost. .

    I have my thoughts….as I watch the Council meetings and keep hearing of the shortfalls, as Jean correctly calls. I continue to hear that the very basic items are not being accomplished – I continue to feel grave concerns.

    Seems to me your night life and quiet time fixes are a zero to fixing our biggest problems.

    Hope you get all your “dreams” to come true. But I’m thinking it’s time for this little town to get back to reality and get rid of all the external/self-promoting dreams…..from both you and Council. Basics!!!
    Sharlett

  32. AB says:

    1st. I would stack up JRN’s credentials, experience and knowledge on taxation, economics and forecasting against any member, and probably all of the council members combined

    Don’t forget that City will always play on our fears and start by claiming “…we will have to cut back on Police and Fire Protection…” This was their main selling point when they traveled around the city asking for votes to keep the budget in the hands of the city and not the state. Remember, by the state’s calculations, our city should be running on around a $22M budget.

    Sedona has to have the highest % of ‘failed businesses” of any place in the USA. What I am saying here is that whether the person has Red Rock Fever or not, people move here, open their business, pay all the fees and charges and can’t survive even 6 months.

    Look at the businesses already leaving. Can the Chamber even keep a record of them all?

    Please stop ‘name calling” and derogatory remarks. This is not a reality TV show. And this is not how our parents taught us to behave.

    How does ending the conversation help the situation? Marty L???

    JRN was trying to show us some PROVEN, winning formulas other cities have used. Are they right for us? Probably not. But what the Chamber, eh hem, the City has proposed WILL NOT WORK.

    Marty, you were in agreement, but don’t like the ideas on how to proceed. Can you give us some? Do you have the same drive to do the research and come up with a plan? That is what is needed. JRN is not a totalitarian. I am sure, unlike the Council, he would listen to another person’s positive thinking.

    EVERYONE:
    Don’t leave this topic on this website. Talk to people you know. Ask business owners and consumers. Talk to council members. This is a small town. Use what is left of the benefits of living in a small town before they are taxed as well!

  33. Marty L:

    I will tell you what set me off relative to your comments. Re-read my article, in conjunction with the entirety of my comments to the subject article and also in conjunction with my two other articles currently posted with SedonaEye.co. Having done that I think you will realize that what you keep referring to as my suggested remedy is only the remedy that pertains to one of two choices that Sedona has to make. Our citizenry and our governance here are utterly schizophrenic in that they can’t decide whether or not we, as a city, want to be a quiet, rustic, bedroom community for retirees or a destination traveler market.

    No city can be both! If we want to be the latter then the City will simply have to adopt the business model you are referring to as my suggested remedy. The remedy to which you refer is NOT suggested by me…it happens to be the business model adopted by every successful small-town destination traveler market in the country, the best examples being Palm Desert, CA, and Durango, CO.

    Marty, Sedona spends a veritable fortune every year to attract destination travelers which has never produced a successful effort because we won’t do what it takes to be successful at it. And, if the City doesn’t want to be a successful destination traveler market, then so be it, but then we need to stop squandering the money we pay to the Chamber of Commerce to bring that market here when we don’t provide the demands of that particular tourist profile. And, they do demand a diverse and robust night life. We can’t have it both ways. We simply have to make a choice.

    Personally, I can tell you it’s too late to adopt the plan of the other cities I mentioned. We don’t even have the cash flow to keep replenishing the CAFR Wastewater Enterprise Fund (Reserves), yet the Mayor wants Sedona to go further into debt in order to fund purchase of yet more recreational properties (including the Creek Walk) even after the City Manager publicly advised him that the City doesn’t have the money.

    Why is it the town population of Sedona can’t recognize that we can never serve two masters, namely, destination traveler tourism and a no-growth commercial development plan? Make up your minds people…and that has always been my message Marty.

  34. I have been following these various discussions from a far distant place regarding the political/economic environment in Sedona with mild amusement.
    Amusement not because the situation is funny or even comedic but because each of your insights are finely honed and near perfect in their assessments of Sedona’s current malaise. And so my amusement is because of the irony of your situation calling so many of the Sedona pranksters and charlatans to task for their un abiding and wholesale giveaway of Sedona to vested economic interests at the expense of its citizens and the environment.
    Unfortunate for you who are so involved is that there are just too few of you – your situation is not unlike Colonel Travis, Jim Bowie, and Davy Crockett and their band of rag tags at the Alamo numbering just 180 or so versus General Santa Ana’s 5,000 plus soldiers – you sure as hell are putting up a good fight but damn it Jim, you’re just outnumbered and outgunned.
    Most of you I recognize as having fought this fight for years.
    And most of you are not getting any younger.
    If you had called for reinforcements from Sam Houston you would not have known he wasn’t coming. He was busy building his army and declaring Texas as independent. You were just so much cannon fodder to do some back stopping for a time until the ducks were in order.
    The best you could have hoped for was to die as legends which you did.
    In your situation, this isn’t the case – the ‘citizens’ of Sedona don’t know they have a dog in this fight. Each of you could write a book or a long essay as to why you think Sedonaites are so apathetic and each of you would probably be close in your assessments. It is enough to say simply speaking, that “Frankly, my dear, I (they) don’t give a damn'”
    I know that each of you will continue to fight the fight. And that is what ultimately matters in the end. The opponents you face are persons of low morale character wholly lacking in ideals – In short they are people who have not the least amount of ‘common decency or goodness’. Their only God is the ‘gold’ they can extract from Sedona through its beauty and through the hapless citizens and to a lesser extent the diminishing tourist base.
    And so to Jean, Eddie, Rick, Warren, and many others, keep up the good fight. It is not totally unnoticed but definitely under appreciated.
    I’m reflecting now on the Doolittle Raiders, which I liken you to, in 1942 some 90 or so strong, now just 4 left with only three attending their last reunion just this May. I lament that once they are gone what do we behold. And I lament that once you are gone who will replace you. On that thought, I cry for Sedona. . . .
    To your foes, you are ‘belligerent complainers’, with nothing better to do with your lives – if you truly cared you join a committee and work for the greater good. Now that is humorous if I do say so.
    I would believe on the other hand that you are thoughtful, studious, articulate, and truth seekers. Each of you does suffer from ‘meaning what you say and saying what you mean’, and ‘speaking the truth quickly.’
    I have written this using my nom de plume but I follow you from a far distant and more peaceful place.
    I am sure most of you know who I am.
    Keep up the fight because sometimes the GOOD FIGHT is all there is . . .

    Colonel Travis

  35. Colonel Travis,

    I don’t know who you are or from where you hail, but I would like to ask you if you could move here and write for one of our online publications? Colorful you are, and that’s a trait sorely needed in our community. Nobody here has a glib sense of humor. Thank you!

  36. Sheri Graham says:

    Hi Rick. Thanks for your email 5/8/13 which read: “Good Evening Sheri, My new article is up at http://www.sedonaeye.com . It’s at the top left hand side of the front page and is entitled “Law of Unintended Consequences Meets Probable New Sales-Tax Policy.”

    I would, especially relative to the issue argued within, be honored to have you write a comment. We all need commentary from our best and brightest…and that group definitely includes you. Thank you so much!

    Rick”

    Since I’ve been down and out and suffering from Shingles for the last 3 weeks I’ve been unable and unwilling to look, let alone respond to anything other than my health. Sure you will understand.

    So, I wasn’t able to reply to your email beyond your initial send to me. I did, initially respond saying I had family issues going on. Those family issues were me and a grandson suffering from a life altering disease.

    Now that I’m feeling better and have been trying to catch up with all web sites and posts and putting all in perspective…I’m thinking I’m strong enough to respond.

    Thank you Rick for your request of me supporting your ideals…and thanks for your complements to me and how you believe my thoughts and abilities will help your cause.

    Problem is I can’t agree with or muddle through the options you espouse. Don’t see any of them as a fix and rather just a list of non plausible….what did I read that was that called?…a Chinese menu?

    In my mind, the only fix to our current City sinking into a dark hole is for the Council to stop all their sundry spending and just get back to the real issues….and, as someone posted or said: the very real issues of a town our size is all relative – just do the basics as required and forget the dream list….I’m paraphrasing and I am in full agreement.

    Sorry I can’t help you more Rick – yet the fixes and plans you propose just don’t ring true to me….do dig deeper and see what you come up with. In my opinion the answers are pretty simple….Basic list of what a City is responsible for: Health, Safety and Welfare.

    Sheri Graham

  37. Hello Sheri,

    I am sorry to hear about your ordeal with shingles. As a matter of fact, I really do understand since my Mother was occasionally tormented by it.
    Anyway, I do appreciate your comment. Since you posted my private email to you, I will point out that I didn’t ask you to help me. Because I value your opinion, I merely asked for no more than for you to write a comment…any comment.
    As for what you perceived to be my recommended fixes and plans, may I please impose upon you to scroll back up three comments to my reply to Marty L. Having read that comment I think you will see that you somewhat missed my point in the article. Thank you.

  38. Jean says:

    I agree 100%, Sheri, that City Hall needs to “just do the basics as required and forget the dream list.”

    BTW, the .5% Wesselhoff sales tax increase could appear on the City Council agenda again. I feel certain you will agree destination marketing is not the job nor the responsibility of the City.

    Furthermore, taxpayers are already contributing $450,000 next fiscal year for destination marketing via the new budget.. I oppose forcing Sedonans to pay an additional .5% sales tax that the City will turn over to the Chamber of Commerce pursuant to CEO Jennifer Wesselhoff’s marketing plan.

    Let’s all make it clear to the Council that any member wanting to run for re-election in 2014 has no chance if he or she votes for the City Council to approve the probable .5% sales tax increase. Such a decision must go before the electorate. This is an option under AZ law.

  39. sheri graham says:

    Rick,

    I took your advice and went back through your article and the comments that followed and was actually kind of dumbstruck by your comment (in your article) of “Have you read the multitude of comments that are coming to my articles?’.

    It’s not about the multitude of comments – it’s about the realistic approach to solve a huge financial problem with a council who only wants to tax us and our tourists in order to pay their bills.

    Unfortunately, so many people are not tuned in to the financial ramifications of any projects the City takes on. Nor are they cognoscente of the idea of – if you do this – what will it cost? And most of your respondents love the pie in the sky ideals…realistic or not. There is no yin to their yang.

    Council is certainly not “implicating” a raise in taxes. They are In fact actually Pushing for and Agreeing with that concept and the revenue it will generate for their plans.

    While I appreciate your creative approach and do understand your concepts of a good business plan, I still do not understand your Point.

    Additional taxes will not cause a business to go out of business; a business will absorb those new taxes and will add that amount into their prices. Business’s, unfortunately have great ideas without backup. They have bad or no business plans and lack a savings account to get them through the bad times. Or those business’s that are still here have a savings account and a good business plan and really do understand that if they buy more inventory it will be Them (not the taxpayers) who will pay the bill.

    Oddly enough – this Council has never really had to madtch the income to the outgo on a personal level like all the business owners do.

    Again the real reality and responsibility of our elected is to cover the basics of Health, Safety and Welfare vs their bucket list.

    Question to you Rick: where does the money come from to fund and finance your ideals and partnerships and municipally owned projects?

    Sheri Graham

    P.S. I fully agree with Jean that this or any Council should put a Tax increase, of any type, on a public election ballot. Perhaps that should be your new direction?

  40. Sheri,

    I guess I will have to repeat again, the “ideas” you seem to think are mine are, in fact, are an amalgamation of the business models currently employed by the most successful small town resorts in the United States. Would you please, or somebody out there, just get in your car and drive over to Palm Desert, CA. There you will find the most colossal small resort town success in America to whom God gave no natural beauty whatsoever. They figured out how to attract private benefactor money in unfathomable amounts from wealthy private and commercial benefactors who partnered with the City. Sheri, for crying out loud, we had such a benefactor by the name of Georgia Frontiere in Sedona, a billionairess who put up her own money to build Sedona’s Amphitheater at the Cultural Park without asking for anything in return, then offered a veritable greater fortune to rebuild it after we squandered it, only to have our then Council insult her when she finally asked for some very fair concessions. How stupid can this town get?

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