1/11/2009 10:30:00 PM Economy Series, Day 2:
Despite lean operation, Chino Valley staff wonders if more state cuts ahead
Les Stukenberg/The Daily Courier
Nicole Basi estimates she, her husband and her daughter Elaine use the Chino Valley Community Park on North Road One East more than half the days of the year. They are worried that economic and budget conditions in Chino Valley will close the parks.
EDITOR’S NOTE – This is the second in an eight-day series about the State of the Economy and what’s on the horizon for quad-city area governments and residents.
With the loss of 20 employees during the past 18 months because of attrition, layoffs and retirements, Chino Valley has 97 employees today versus 123 three years ago.
Judi Schafman, the town's human resources manager, said a municipality the size of Chino Valley typically has 110 to 115 employees.
Town Manager Jerry Stricklin said the town instituted a hiring freeze on Oct. 7, 2008, to keep its staff level constant. This year Chino Valley's employees didn't get a pay raise either. However, Stricklin said, the town increased some department heads' salaries when they took over an additional department.
For example, when Schafman also became finance director, the town upped her salary. However, when Public Works Director Jim Confer retired, Town Engineer Ron Grittman took over Confer's job at no increase in pay.
"While some people may have received a slight increase in salary, there was a significant savings overall," Stricklin said.
Chino Valley's 2008-09 total budget with transfers is $24,491,963. Its 2007-08 budget was $79,792,071.
"There was a lot of anticipated possible grant money in the 2007-08 budget that might come down the pike. Our current budget is more realistic. It has an operating budget of $15 million," Stricklin said.
The budget also includes the final segment of the approximately $17 million Chino Meadows Community Sewer Project, which Fann Contracting expects to complete this month. The 18-month project will provide 1,100 sewer connections.
Schafman said the town will see a nearly 8 percent decline in state-shared revenues in 2008-09. State-shared revenues consist of state income tax, state sales tax, vehicle license tax and highway user revenues.
State Treasurer Dean Martin has told the Arizona League of Cities and Towns that he doesn't see any excess revenue until 2012.
"I don't anticipate seeing any increase in state shared revenues for the rest of 2008-09 or 2009-10," Schafman said. "The state won't give its first tax estimate until March."
Stricklin added, "They say commercial real estate is now in trouble. If that is the case, it makes more problems for Chino Valley.
"We are watching our revenues very closely for the rest of 2008-09 and all of 2009-10 because I feel the state estimate on revenue will be a moving target and the legislative cuts are hard to estimate."
To help with a tight budget, Stricklin created a committee headed by Mark Holmes, water resources manager, to look at all of the town's departments to see how the town can save money and how to implement new revenue. The committee has reportedly come up with ways to save or generate $413,000.
At its Dec. 11, 2008, meeting, the council approved its first recommendation - the creation of a $15 fuel fee for traffic violators. The town will place all of the fees collected in the police department's general account for its fuel budget.
In January 2008, Linda York, Chino Valley's former finance director, said that with construction sales tax sitting 24 percent below budget estimates and building permit revenues 15 percent below estimates, the town could potentially lose out on more than $548,000.
She said the town should view construction sales tax as a "one-time revenue" and use it to pay for capital projects rather than ongoing town services.
Stricklin said the public works crews are currently struggling to keep up with potholes on streets in town.
"If construction sales tax was up, we would be paving some of those streets instead," he said.
If Congress approves President-Elect Barack Obama's stimulus package with money for infrastructure projects, Stricklin said the town has many projects planned. However, they would take some front-end money to get them to the point where they are bid-able projects.
Stricklin said actions the state and county take also affect the town. Earlier this year the state imposed fees on towns and cities for use of the state crime lab.
Previously, the state was not charging the town, Schafman said. The Arizona League of Cities and Towns is challenging these fees, Stricklin added.
Stricklin said he has no idea what kind of costs the town will face with the Prescott jail closing.
Schafman said each Chino Valley police officer will be off the street for at least four hours each time now that the department has to book its prisoners in Camp Verde instead of Prescott. She added that the town is looking at a significant cost to do this.
Mayor Karen Fann has established an economic development committee to explore ways to jumpstart the community's economy. The town and the Chino Valley Chamber of Commerce also work to bring new businesses to town. The chamber works on business retention and customer service training.
"If we can do something to help local businesses be successful, we're helping everyone," Stricklin said.
Stricklin added that it will be challenging to come up with a 2009-10 budget that provides necessary services with money to pay for them.
"We're watching the situation very closely," he said.
Posted: Monday, January 12, 2009
Article comment by:
Messed up priorities.
Isn't that wonderful that the HR Manger got an increase for doing more work, yet the police department that operates short-staffed every day and also has to do more work received nothing?
Don't you think that those who risk their lives every day for our safety and security should receive some compensation over someone who sits at a desk?
Where are the town priorities here?
