Fellow Citizens of Maricopa,

As a homeowner, taxpayer, and concerned citizen of Maricopa, I wish to express my concerns regarding Maricopa Question #5; the $65.5million bond measure proposed by the city which is on the November ballot.

The bond measure seeks voter approval for the issuance of bonds for construction of two regional parks, a new recreation / sports complex and a main library over the next several years. However, the citizens of this city really need to reflect upon the necessity of such an action, and whether now is the appropriate time to take on a substantial long-term financial burden, especially given today’s economic conditions and considering our city is currently debt-free.

Maricopa is a young city, and we are experiencing a housing and financial crisis that’s packing a “one-two” punch. We’re feeling it here with increased homes in foreclosure and decreased housing prices. Many neighboring cities, like Chandler, aren’t as hard hit by the housing crisis because they have a huge business and industrial base as well as a significantly higher population, generating combined amounts of sales and other tax revenue.

Maricopa is building its first big-box retail store. City planners have initiated steps for our first redevelopment area that will provide tax incentives to business that locate in the area. When the City approved the FY2009 annual budget, one of the key components was Development Impact Fees (DIFs). The goal is 100 per month, and with just under the first quarter in the new fiscal year in, we’re already below this goal. Reduced DIFs, combined with limited sales tax revenue from existing business and lost revenue from failed or lack of new business, and it’s quite feasible the city will find itself in a position of financial distress.

I feel strongly that this is not the time for additional spending nor approving substantial long-term debt. I fully expect City Hall to manage its money the way you and I are expected to. Even with facilities being built, the City has no funds to hire additional staff to maintain them. According to Roger Kolman, Maricopa’s Director of Finance, in an article in the latest issue of 85239 Magazine, repayment of the bond would cost the average citizen of the city about $25.70 a year. This is not totally accurate.

What is an “average citizen”? Are we speaking of every Maricopa citizen? Children don’t generate revenue and renters don’t pay property tax. Residential and commercial property owners would be repaying the bonds. A more accurate estimate of “cost per taxpayer” would be as high as $327.53 annually, based on home value of $250K, and even substantially more for commercial property owners. Who ends up bearing that burden? It would be already financially-stressed local business owners trying to sustain business in Maricopa where rent is higher than Scottsdale.

With my current property tax going to the City of Maricopa, (ref. line # 04164 of 2008 Pinal County Tax Statement), and taking into account my home’s current valuation, my portion of the bond repayment would equate to a 56% increase in my Maricopa property tax… and so would yours - regardless of value. My home was assessed at $218K, and the home next to mine just sold as a foreclosure for $124K. This is hard to swallow.

Some residents may be able to handle the additional tax, others would certainly feel the additional burden, but what about the affect this increase would have on those who live on a fixed income? Local residents are feeling the pinch, and we’re going through one of the toughest financial crisis in U.S. history. Maricopa is currently debt-free, and I feel this is the time to focus on priorities, not “wish lists”. Let the City stay debt-free a while longer and take a hard look at prioritizing what’s essential. Some things to consider:

1. The city currently has a hiring freeze. This is a strong indication that financial conservation is in play.
2. The city relies heavily on Developer Impact Fees (DIFs) to stay within budget, and actual numbers are well below projections. Will the city even make its budget?
3. The city plans to build another $15million dollar library with bond money. What? Why? We just broke ground on the new $1.9million library.
3. Recently, we received our 2008 property tax bills from Pinal County. Homeowner property was valued at substantially more than some foreclosure sales on the same street! Do the math… many homeowners are facing this reality right now, and are most likely not happy about it.
4. The cost of living, over the past year has shot up, with noticeable increases in the cost of gas and food. And yes, many HOAs are increasing dues in 2009 because Association costs have increased, and they’re facing increased bad-debt write-offs from foreclosures.
5. Many homeowners are dealing with additional surcharges from local utility and trash companies trying to cope with the unexpected sharp rise in operating expenses.

Perhaps, in the near future, when residents are feeling more confident about the economy, about their job security, and the current financial market crisis has passed or at least stabilized, the city can propose a bond measure that voters will support. Personally, I’m in favor of these new facilities, just not right now and not like this.
I urge you to join me in voting NO on Maricopa’s’ Question 5 (The Bond Measure).

Respectfully, Alan Marchione