CAVE
CREEK – Even with far fewer people, Cave Creek’s budget
far surpasses that of nearby
Fountain Hills.
Vice
Mayor Dick Esser made this comment during the May 21 town
council meeting before the council voted to approve the
tentative $42.5 million budget for Fiscal Year 2007‑2008.
With
this vote, the town can no longer increase the budget,
although it still can move money around within the budget
before final adoption on June 18. The 2007‑08 budget
shows an increase of $4.8 million over the 2006‑07
budget of $37.7 million.
Fountain
Hills is proposing a $30.9 million 2007‑08 budget
to serve an estimated population
of 25,000, according to Esser, who estimated Cave Creek’s
population at fewer than 5,000 residents.
“My
concern is if we run out of money, there would be cuts,”
Esser said, but added Town Accountant Marian Groeveneld
assured him that wouldn’t be the case.
Qualifying
his remarks, Esser pointed out the town has gotten into
some “pretty big projects,” a comment supported by Town
Manager Usama Abujbarah.
“It
is not fair to compare us to Fountain Hills, due to the
water company purchases,” Abujbarah said, adding that
next year’s budget will be much smaller because all purchases
should be completed by then.
A
look at the town’s proposed revenues in the April 20 draft
of the ’07‑08 budget shows some expected revenues
falling far short of estimates.
For
the current fiscal year, the town listed $1 million in
the adopted budget for Building Permit
Fees. However, the estimated revenue by the end of this
fiscal year is now expected to be only $720,000. The town
again estimates $1 million in revenue
from building permit fees in the coming fiscal year.
Even
more off the mark is the ’06‑07 budgeted revenue
from Development Fees‑Open Spaces & Trails,
with $387,480 adopted by town council. Actual revenue
as of Dec. 31, 2006, was $38,748,
with only $80,725 now expected to be received by fiscal
year‑end June 30. The town budgets only $61,320
for the coming fiscal year.
Groeneveld
told The Desert Advocate that the development coming in
is different than projected; and even though the open
spaces and trails line item is far below prior estimates,
the expected revenue is coming from other areas. For example,
Development Fees‑Public Buildings & Equipment
was budgeted at a little more than $88,000, but actual
revenue as of Dec. 31, 2006, was $159,886.
“It’s
a trade‑off in different areas,” Groeneveld said.
The
town’s General Fund is estimated to be $6.8 million for
Fiscal Year 2007‑08, an increase of about $750,000.
The fiscal year runs from July 1, 2007, to June 30, 2008.
Groeneveld
said any shortfall in revenue would mean corresponding
expenditure cuts, but that any cutbacks would just mean
fewer projects such as road construction.
“I
don’t know of any community in the state involved in as
many exciting things as this community,” Mayor Vincent
Francia said. “We seem to know exactly what we’re doing.
We’re not afraid to look to the future and spend the citizens
money in a responsible way.”
