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Sedona Eye on City Property Tax

Sedona AZ-Almost everyone owning real estate in Sedona Arizona pays property tax (except for churches and some exempt non-profit groups) but few seem to know much about where that money goes. In short, it goes to schools, the fire district and county government. None goes to the city. Sedona does not have a city property tax

Over the years, we have developed a city culture that makes anyone even remotely discussing a city property tax a Sedona social outcast. Some say that stems from promises made when the city was incorporated. Others say it grew from our high-priced real estate. Still others cannot remember where it came from – it’s just part of Sedona.  

Since the notion of a city property tax is such a strong negative, it’s often used as a club to bash opponents even when it’s not related. Anyone proposing a new project that someone else opposes can expect to be clubbed with it – regardless of the topic – an indoor recreation site, city convention center or ownership of a highway. The cry of “That will lead to a city property tax!” is hurtled as a final desperate scare tactic.  

But, laying culture and clubs aside, Sedona doesn’t have a city property tax, first because we don’t need one, and the second because one cannot be created unless Sedona residents vote one in – and that is highly unlikely.  

Sedona doesn’t need a property tax with a 3% city sales tax paying many of our bills. Even during this major financial downturn, Sedona chalked up over $700,000 in budget surplus in the 2010 fiscal year and will be near a $1 million surplus in 2011. That, along with having a general fund reserve near 100% of our annual operations budget (30 to 50% reserve is considered adequate) puts Sedona in a solid financial position.  

In addition, paying off city sewer bonds in 15 years will immediately add about $6 million annually to our general fund that currently goes to debt payments. Even with inflation that sudden windfall will create a huge annual surplus. Sedona’s financial worries will become what to do with embarrassingly large surpluses, not how to pay for things

City property tax?  Who needs it! 

The other simple fact is that no Sedona city property tax can happen – ever – unless city voters approve it in a public electionThe City Council cannot enact one nor can city staff impose one. State law requires voter approval of any kind of general obligation tax (like a property tax) and nothing short of changing state law will alter that reality. 

So next time you hear someone allege that some action by the city “…will lead to a city property tax” consider that he or she either does not understand the restrictions on creating a city property tax, or are resorting to an old Sedona myth to sway your opinion.  

Article written and submitted by Cliff Hamilton, Vice Mayor of the City of Sedona with the disclaimer that “The information and opinions in this article are my own and do not necessarily reflect those of the Sedona City Council or city staff.”

Mark your calendars to vote in the City of Sedona Special election November 8, 2011

9 Comments

  1. Save Sedona Now says:

    Vice mayor Hamilton fails to recognize the majority of the residents know it is foolish to own a state highway. Ownership of Hwy 89A is fiscally irresponsible, is forever and our residents have stated they do not want this burden.

    One has to ask, how can Hamilton be both poor enough to cut every organizations, arts program, schools, non-profit agencies that serve or residents then claim the city is so wealthy it can afford ownership of Hwy 89A forever, with no legal process to return the road to ADOT once we agree to own the Hwy?

    Please be assured Councilor Hamilton we are not as clueless as you would like to think we are!

    Residents of Sedona: We can continue to be lied to on the cost of owning Hwy 89A or we can turn out in record numbers and VOTE No to city ownership of Hwy 89A November 8, 2011.

  2. yes on 411 to save LIVES says:

    The Save Sedona Now strategy is now obvious and it has nothing to do with Saving Sedona or being truthful.

    They intend to LIE over and over and over again. They think if they keep on saying the same LIE, repeatedly, it will “poof” become true. Save Sedona now should change their name to “We are pissed about getting kicked out of office NOW”. Or how about “We can’t use our real name so we use alias Liz Smith NOW.”

    The OLD Block of Scagnelli, PUD, Frey and gang really think they can LIE their way back into office through their minions. Sedona is not that stupid. I hope these folks will run for office again so we can emphatically show them where we want them. In their recliners at home.

  3. Sheri says:

    Thought you would find this interesting. Also click on the State link and pick a state and you will see the plight of all states. Unbelievable! http://www.usdebtclock.org

  4. Eddie Maddock says:

    Zippety Do Dah and Yahoo to “yes on 411 to save LIVES.” I’m in complete agreement with your recommendation.

    Proposition 411, relating to the Initiative, states: “A Yes vote shall have the effect of requiring Sedona City Council to refer any offer for the transfer of a state route located within Sedona city limits to the qualified electors at a special or general election.”

    For the record, I’m neither an affiliate of Save Sedona Now nor do I know the true identity of “Liz Smith” if, in fact, that isn’t her real name.

    Bottom line: VOTE YES ON 411!

  5. SaveSedonaNow says:

    In reply to “yes on 411 to save LIVES” –We are on to your group, we believed the “River Of Lights”, we believed you supported Sedona as a community animated by the Arts, we believed you supported our youth, we believe you supported our library, service groups. we believed your group when they said they would follow the “Will of the People” You fooled us once and we drank your Kool-aid, but never again, we know the truth, Hwy 89A will hurt Sedona! This time we will not be kicked to the curb, instead we will vote!

  6. Jean Jenks says:

    To refresh Vice Mayor Hamilton’s memory about the source of the $700,000 and nearly $1 million surpluses City Hall is touting, steep sewer fee increases allow the City to reduce the amount of sales tax money it uses to support the Wastewater Fund and, as a result, generate surpluses. Lest anyone forget, during very perilous economic times Cliff Hamilton and our former City Council authorized residential sewer fees to skyrocket from $32.54 to $57.28 per month — a 76% increase — over the five fiscal years beginning July 2010.

    Watch your wallet and VOTE “YES” ON 411.

  7. Paul Miller says:

    Federal Budget 101

    The U.S. Congress sets a federal budget every year in the trillions of
    dollars. Few people know how much money that is so we created a
    breakdown of federal spending in simple terms. Let’s put the 2011
    federal budget into perspective:

    · U.S. income: $2,170,000,000,000

    · Federal budget: $3,820,000,000,000

    · New debt: $ 1,650,000,000,000

    · National debt: $14,271,000,000,000

    · Recent budget cut: $ 38,500,000,000 (about 1 percent of the budget)

    It helps to think about these numbers in terms that we can relate to.
    Let’s remove eight zeros from these numbers and pretend this is the
    household budget for the fictitious Jones family.

    · Total annual income for the Jones family: $21,700

    · Amount of money the Jones family spent: $38,200

    · Amount of new debt added to the credit card: $16,500

    · Outstanding balance on the credit card: $142,710

    · Amount cut from the budget: $385

    So in effect last month Congress, or in this example the Jones family,
    sat down at the kitchen table and agreed to cut $385 from its annual
    budget. What family would cut $385 of spending in order to solve
    $16,500 in deficit spending?

    It is a start, although hardly a solution.

    Now after years of this, the Jones family has $142,710 of debt on its
    credit card (which is the equivalent of the national debt).

    You would think the Jones family would recognize and address this
    situation, but it does not. Neither does Congress.

    The root of the debt problem is that the voters typically do not send
    people to Congress to save money. They are sent there to bring home
    the bacon to their own home state.

    To effect budget change, we need to change the job description and
    give Congress new marching orders.

    It is awfully hard (but not impossible) to reverse course and tell the
    government to stop borrowing money from our children and spending it
    now.

    In effect, what we have is a reverse mortgage on the country. The
    problem is that the voters have become addicted to the money.
    Moreover, the American voters are still in the denial stage, and do
    not want to face the possibility of going into rehab.

    Paul F. Miller
    Phoenix

  8. Michelle Stover says:

    Summer Auction of Surplus Equipment: One of the Sedona City Council’s top priorities is financial sustainability. As part of the city’s goal for financial sustainability, staff continually evaluates its fleet of vehicles to ensure appropriate fleet size, vehicle use, and efficiency.

    As a result, the City is auctioning three vehicles and other miscellaneous equipment through publicsurplus.com over the next 30 days with a staggered release date. If you are interested in viewing the vehicles or other items, go to http://www.publicsurplus.com and search “Agency” for City of Sedona.

    Check back often to see newly released items for public viewing. If you would like more information, please call the City Manager’s office at (928) 204-7127.

  9. Ginger Wolstencroft says:

    Vote Now For Sedona as “The Most Beautiful Place in America”–Sedona has been chosen as one of Good Morning America’s “Most Beautiful Places in America”. Please vote and make Sedona #1!

    Go to http: //abcnews.go.com/GMA/best_places_USA to vote for Sedona. According to GMA, “Sedona’s natural beauty takes your breath away. The Red Rocks inspire such awe that we had to name it one of our Most Beautiful Places in America.”

    Help Sedona win by voting now!

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