Cave Creek coffers healthy
by Brian DiTullio

CAVE CREEK – The financial status of Cave Creek is looking good, with revenues exceeding expectations, according to the town’s accountant.

Marian Groeneveld said the town is doing “very well” in her March 5 financial review presented to town council. Following the review, council unanimously approved the  purchase agreement setting forth the acquisition of Cave Creek Water Co.

Noting the purchase of the Desert Hills and Cave Creek water companies, plus the purchase of Saguaro Hill and taking into account the town’s plans for a new wastewater treatment plant, Groeneveld said there is more sales tax revenue coming in than forecast, mainly due to business license fees and revenue generated from new construction.

Revenues generated in the second quarter of Fiscal Year 2007 include $2,027,890 in sales tax, $460,964 in property tax assessments, $422,529 in development fees, $775,804 in state shared revenues, $931,748 in other fees and $178,930 from other sources.

Other fees include monies collected related to building, planning and zoning, and court fees. Other sources include interest earned, rent, and revenue from the sewer improvement district assessment.

Expenditures during the second quarter included $842,681 for the wastewater treatment plant, $2,693,798 on water needs, $2,681,682 from the General Fund for administration and operational expenses, $298,918 in debt service, $245,000 for the operation of Spur Cross Ranch Conservation Area, and $696,280 in Highway User Revenue Funds.     

Those expenses show a deficit of $2,660,494, but Groeneveld indicated the discrepancy comes from the money taken from the General Fund to purchase Desert Hills Water Co. last year. Those monies will be replaced through a Water Infrastructure Finance Authority loan, once the Arizona Corporation Commission officially dissolves DHWC.

As for water company purchases, Mayor Vincent Francia said on Friday three banks are bidding to be the financier of choice for the purchase of Cave Creek Water Co.

“That’s just another indication of the financial health of the town,” said Francia.

Groeneveld also showed a chart depicting sales tax revenue from 2000 to the present. Fiscal Year 2005 shows a little more than $3 million collected, while FY 2006 jumps to more than $4 million and 2007 shows $4.5 million in sales tax revenue.

Groeneveld attributed overall increases in revenue to the rise in new construction in Cave Creek.

“Did I mention we’re doing very well?” she quipped during the presentation.

In a related issue, Francia also said Friday that with the takeover of Cave Creek Water Co. complete from a facilities standpoint, the condition of the system is “about what we thought it would be” and that he doesn’t expect repairs to exceed what has been forecast.

From a budgeting standpoint, the mayor expects the town to be able to pay for the water system and still build the town’s reserves back up over the next few years.