The Town of Carefree has paid for Rural Metro for years with sales tax and shared state income tax revenue. Actually the town raised sales taxes many years ago to 3% on all retail purchases with a dedicated 1% municipal sales tax for the Fire Fund to pay for the fire department services. We have now increased bed tax revenue with the Hampton Inn (remember that was the town’s argument to promote that development) because there was an average shortfall of sales tax of $400k per year to cover the fire service contract. That shortfall has been covered by the town’s operational funds yearly. Auto-aid is expected to increase that amount by $275k per year. Yet, the Town’s capital reserve fund has averaged over $5-6 million each year (now close to $10 million) and Rainy Day Fund is over $2.5 million. The town is holding these funds to spend on future expenses but the town’s own budget report states the Rainy Day fund has to be re-evaluated because the town has proven it can navigate economic downturns without the need for such a large rainy day fund balance. Carefree’s percentage of reserve funds is one of the highest for any municipality in the state. Spend down that obsolete Rainy Day fund for any capital expenses needed for auto-aid first before taxing Carefree citizens further. It’s unnecessary govt waste and spending, just as was the many signs, arches, round-abouts, bloated staff salaries, etc..and just as was the $37 million for the disastrous water project. Carefree water has been treated by the Cave Creek water treatment plant along with Scottsdale for years. It’s the same CAP water that Carefree drinks. Those communities that benefitted from the massive infrastructure costs should have self-funded their own infrastructure costs through a special assessment tax district instead of making all Carefree residents pay for it. Yet, that wouldn’t have been pay back enough for their votes. Period
Thank you,
Michael Farrar
Former Carefree Town Councilman
