What follows is a direct quote from Mayor Hiremath during the Dec. 17, 2014 Council meeting:
“We’re telling you that in the first two years, we’re going to lose major money on it…I know that we’re going to lose money but I think we have a good plan to help turn that around and that includes capital investment. A lot of things have been floated around and one is a bond. But you know what? CM Burns mentioned it, CM Garner mentioned it. How are they going to pay for the bond? They’re still going to have a revenue source, and what’s the revenue source going to be? A sales tax? A utility tax? A commercial lease tax? Renters tax? Property tax? It doesn’t matter what it is…It’s not free money. There is interest on it.
Why do I want to saddle my residents, not only to pay the interest, let’s just say it’s a break-even, why do I want to pay extra money when we have the cash?
Everybody talks about the City of Tucson’s golf course, they talk about Stone Canyon, they talk about Oro Valley Country Club…golf courses fail today…because they acquire a huge amount of debt in order to purchase the golf course to begin with…We’re starting with zero debt and we’re hiring a practice management company. So already we’re way ahead of the game…If a bond were to go through, as was suggested up here by some individuals, to build a $20 MM facility…a $7 MM facility, it doesn’t matter what the number is, where is the revenue source going to come from? So think about that.
Are we going to project a profit? No, we’re not. In Year 4 or 5 or 6 are we going to project a profit? You’re darn right we are.”
Did he lie? His/Caton’s plan was to have the sales tax increase pay for everything, including capital investments. From the very start there were those who told the Council that there plan was not working. Vice-Mayor Waters criticized those and told them to “get on board.” Council member Snider accused them of “causing headwinds.” Council member Hornat told Channel 4 that “there was no Plan B.”
Now we are going to have a bond, of which $6 million will go for capital improvements at the Community Center/Golf. This $6 million will cost us about $8.7 million after it is paid off. So, Mr. Mayor, you are now going to saddle the residents with a 20 year debt for your foolish investment?
According to the Town Manager’s Recommended Budget (TMRB), $340,000 is scheduled to be spent on renovating all the fields a Jim Kiegh Park (not new fields, or additional fields); $80,000 is to be spent re-surfacing and re-painting the tennis courts at the Community Center.
The BOND revenues are to be spent as follows: FY 19/20 $1.8 million for the golf course, and $1.2 million for the Community Center. In FY 20/21there is an additional $1.8 million to be spent on golf, and $1.2 million on the Community Center.
HOW ARE WE PAYING FOR THIS NEW BOND?
The TMRB mentions that “Toward the end of next fiscal year, the Town will complete its obligation to the Oro Valley Marketplace to return 45% of the shopping center’s sales tax collections to developer/owner Vestar, estimated at approximately $800,000 per year starting FY19/20.”
What is wrong with using sales tax revenue to pay off a bond? The Town’s Financial and Budgetary Procedures state the one time revenues pay for onetime expenses. The capital improvements included in the bond are onetime expenses. However sales tax revenues are ongoing revenues. The Council intends to pay for this bond with the additional revenues brought on by the expiration of the Vestar agreement. Ongoing revenues to pay for onetime expenses is against Town policy
WHO BENEFITS FROM THIS INVESTMENT?
As of 4/30/18 there are 234 members of the golf association, of which 7 do not pay dues. This means that each member will get a $37,179 benefit ($8.7 million divided by 234). What does this do for the kids who came and begging for the needed fields? What does this do to the families that pay too much to use the Aquatic Center? What does this do for the top three items mentioned in the survey taken in June 2014 (Playgrounds and play structures, Ramada and picnic areas, and paved walking paths).
The current budget has NO new fields and none are scheduled until FY 23/24. There is NOTHING for any resident, regardless of age, other than the 234 members of the golf association. However, we are ALL going to pay.