Flagstaff Our Community Our Future City Sales Tax

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Flagstaff: Our Community Our Future City Sales Tax, BBB Tax and APS Franchise Agreement

Flagstaff: Our Community Our Future City Sales Tax, BBB Tax and APS Franchise Agreement RENEWALS Propositions 400, 401, 402 1 General Election May 2010

Flagstaff: Our Community Our Future l Why are we talking with our Community –

Flagstaff: Our Community Our Future l Why are we talking with our Community – l l State of the City Renewal Questions on May Ballot – – – l 2 You are the Voters – You decide Proposition 400 - City Sales Tax Proposition 401 - BBB Tax Proposition 402 - APS Franchise Agreement Other Questions on May Ballot – State Sales Tax Increase and Meet and Confer

State of the City l State of the City – – 3 ALL funds

State of the City l State of the City – – 3 ALL funds will balance to revenues 11% reduction to the General Fund = $6 Million 8% reduction to BBB Funds = $582, 000 Color of money

Ballot Renewal Questions in May 4 l Proposition 400 - City 1% Sales Tax:

Ballot Renewal Questions in May 4 l Proposition 400 - City 1% Sales Tax: 10 -year limit, expires November, 2014 (first adopted 1964) l Proposition 401 - BBB 2% Tax: 15 -year limit, expires March 2013 (first adopted 1988) l Proposition 402 - APS Franchise Agreement: 25 -year limit, expires August, 2011 (last adopted 1986)

Tax Overview Tax Rates State County City Transportation BBB 5 Fiscal Year 2010 5.

Tax Overview Tax Rates State County City Transportation BBB 5 Fiscal Year 2010 5. 60% 1. 13% 1. 00% 0. 72% Retail: 8. 446% 2. 00% Restaurants and Bars: 10. 446% Hotels: 10. 458%

Proposition 400 Renewal of City 1% Sales Tax l l l NOT a tax

Proposition 400 Renewal of City 1% Sales Tax l l l NOT a tax increase Approximately 59% of tax paid by visitors Renewal is at the existing base rate of 1% for 10 years Flagstaff is the only city in Arizona that votes for sales tax renewal The 1% city base rate is the lowest in the State of Arizona – l l 6 l Williams: 3%; Kingman: 2%; Camp Verde: 2%; Page: 3% Sales tax does not include residential rent or food The 1% Sales Tax accounts for 27% of General Fund Revenue (Fiscal Year 10 - $13. 4 million) Number one funding source for Police and Fire

How Your City Sales Tax $$ are Spent Fire : • 99 personnel •

How Your City Sales Tax $$ are Spent Fire : • 99 personnel • 9, 964 emergency calls • • • 7 7, 550 EMS calls 263 fire calls 2, 151 other calls 224 acres marked 761 acres thinned

How Your City Sales Tax $$ are Spent 8 Police: • 161 personnel •

How Your City Sales Tax $$ are Spent 8 Police: • 161 personnel • 70, 908 dispatch calls • 12, 527 calls to FFD Reports Filed: • 3, 661 felony • 12, 939 misdemeanor • 1, 470 domestic violence • 10, 996 non-crime • 2, 917 accidents

How Your City Sales Tax $$ are Spent Courts: • 28. 2 Personnel •

How Your City Sales Tax $$ are Spent Courts: • 28. 2 Personnel • 9, 330 criminal cases • 10, 639 traffic cases • 445 domestic violence cases 9

How Your City Sales Tax $$ are Spent Parks: • 7. 8 personnel •

How Your City Sales Tax $$ are Spent Parks: • 7. 8 personnel • 26 developed parks • 4 undeveloped parks • 712 acres of park space • 54 miles of FUTS trails 10

How Your City Sales Tax $$ are Spent 11 Recreation Fiscal Year 2010: •

How Your City Sales Tax $$ are Spent 11 Recreation Fiscal Year 2010: • 19 basketball courts • 1 BMX facility • 2 disc golf courses • 12 horseshoe courts • 1 ice arena/activity center • 2 off leash area dog-parks • 20 playgrounds • 4 racquetball courts

How Your City Sales Tax $$ are Spent Recreation Fiscal Year 2010: • 11

How Your City Sales Tax $$ are Spent Recreation Fiscal Year 2010: • 11 ramadas • 4 recreation centers • 2 skate parks • 4 soccer fields • 1 softball complex • 12 softball/baseball fields • 1 community aquatic center • 6 volleyball courts 12

How Your City Sales Tax $$ are Spent Library – Fiscal Year 2009: •

How Your City Sales Tax $$ are Spent Library – Fiscal Year 2009: • 738, 603 visits • 887, 887 circulated pieces of material • 80 Literacy Programs • 1737 Children/Youth Programs 13

If Not Renewed? 14 l These services would not continue at their present levels

If Not Renewed? 14 l These services would not continue at their present levels without additional revenue sources. l 3 out of every 10 positions paid for out of the General Fund may be eliminated

Proposition 401 Lodging, Restaurant, Lounge (BBB) Tax 15 l First adopted in 1988 l

Proposition 401 Lodging, Restaurant, Lounge (BBB) Tax 15 l First adopted in 1988 l 2% tax collected on services provided by lodging, restaurants and bars l Voters approved the tax and how the revenue would be divided to five City programs

Proposition 401 Lodging, Restaurant, Lounge (BBB) Tax 16 l NOT a Tax Increase l

Proposition 401 Lodging, Restaurant, Lounge (BBB) Tax 16 l NOT a Tax Increase l Approximately 73% of the BBB tax is paid by visitors l BBB Tax generated $5. 05 million in FY 09 l Renewal request is at the existing rate of 2% for 15 years

Proposition 401 Lodging, Restaurant, Lounge (BBB) Tax Economic Development, 9. 5% The BBB Tax

Proposition 401 Lodging, Restaurant, Lounge (BBB) Tax Economic Development, 9. 5% The BBB Tax renewal maintains the existing allocation. Arts & Science, 7. 5% Parks & Recreation; 33% Beautification; 20% Tourism; 30% 17

Lodging, Restaurant, Lounge (BBB) Tax Parks & Recreation: • BBB funds new capital and

Lodging, Restaurant, Lounge (BBB) Tax Parks & Recreation: • BBB funds new capital and maintenance of existing parks and recreation projects • Maintain FUTS trails • Maintain 5 school fields • • Maintain 7 recreation sites • 18 Christensen, Killip, Sechrist, Thomas and Mount Elden Middle School Bow & Arrow Park, Bushmaster Park, Continental Sports Complex, Foxglenn Park, Mc. Millan Mesa Park, The Basin/BMX Facility, and

Lodging, Restaurant, Lounge (BBB) Tax Economic Development: • • • 19 Northern Arizona Center

Lodging, Restaurant, Lounge (BBB) Tax Economic Development: • • • 19 Northern Arizona Center for Emerging Technologies (Incubator) University to Business Connection Marketing tools www. Cityof. Innovation. com www. flagstaffprospector. com Business Attraction and Retention/Expansion

Lodging, Restaurant, Lounge (BBB) Tax Arts and Science: l 20 Supports over thirty community

Lodging, Restaurant, Lounge (BBB) Tax Arts and Science: l 20 Supports over thirty community organizations and events in partnership with Flagstaff Cultural Partners

Lodging, Restaurant, Lounge (BBB) Tax Tourism: l $501 million economic impact and supports 5,

Lodging, Restaurant, Lounge (BBB) Tax Tourism: l $501 million economic impact and supports 5, 483 jobs annually 21 l Over 100, 000 people utilize Visitor Center annually l Support marketing and sales efforts to generate additional tax revenues

Lodging, Restaurant, Lounge (BBB) Tax Beautification: Partially supports the following: l l l 22

Lodging, Restaurant, Lounge (BBB) Tax Beautification: Partially supports the following: l l l 22 l City gateway signs Median barriers and landscaping Downtown Management Plan Fourth Street Corridor Southside streetscapes Route 66 billboards removal and landscaping Plaza Vieja Lavender Garden

If Not Renewed? 23 l If not renewed, there are no alternate revenue sources

If Not Renewed? 23 l If not renewed, there are no alternate revenue sources currently available. l If not renewed, programming such as maintenance of City parks; support for business attraction and retention; support for arts and sciences; tourism efforts and beautification projects would be reduced, discontinued or allocated from the General Fund, impacting other City services and programs.

Proposition 402 APS Franchise Agreement 24 l 25 year extension of the APS Franchise

Proposition 402 APS Franchise Agreement 24 l 25 year extension of the APS Franchise Agreement l Allows APS to use City Right of Way to deliver service l City collects Sales Tax and a 2% Franchise Fee (Funds Police, Fire, Library, Courts, Parks and Recreation)

Flagstaff: Our Community Our Future Community Outreach and Education Plan on Propositions 400, 401,

Flagstaff: Our Community Our Future Community Outreach and Education Plan on Propositions 400, 401, 402: l l 25 l Community Forums City of Flagstaff Website www. flagstaff. az. gov/election 2010 Commission/Board Presentations Community Organizations Presentations Neighborhood Association/Organization Presentations