I’d like to thank you for offering those candidates who don’t mind answering questions in a public setting an opportunity to do so. I found the forum to be very useful in sorting out just what other candidates and I would do if elected.
Most candidates at the forum agreed a sale of the Desert Hills Water System (DHWS) would be a good idea. For most, simply reducing the town’s debt is justification enough. Additionally, while the DHWS is and has been fiscally close to a break-even operation, that may not be the case forever. Presently, The Town of Cave Creek is responsible for bailing out the DHWS if revenues drop or a major repair is required. While not likely, the DHWS could become another drain on Cave Creek general funds, as the wastewater plant now is.
I have two other reasons for believing a sale would benefit the Town of Cave Creek.
Firstly, the town has contributed millions of dollars to two reserve funds required by WIFA, the lending agency. One is to ensure the town would be able to pay the annual debt service for the water and wastewater systems in the event of a fiscal disaster for the town. The second is for significant repair or replacement of water or wastewater infrastructure. In the event of a sale, the reserve funds applicable to the DHWS would be available to the town for other purposes.
Secondly, and I believe more importantly, the town would no longer have the obligation to supply water to Desert Hills from the Town’s Central Arizona Project water entitlement. This is important because the Town of Cave Creek has little authority to limit residential and business growth in Desert Hills. Cave Creek, due to pumping and line size limitations in the twelve mile pipeline from the CAP canal to the water plant, has already neared emergency situations for water availability on very high water use days. With the present situation, Cave Creek might have to limit water use and/or residential and business development due to the requirement to supply Desert Hills with water. The water and wastewater system are expected to operate as close as possible to businesses. I would see the sale of the DHWS as a sound business decision, as well as a decision which would help protect Cave Creek’s future.
David Smith
Candidate for Cave Creek Town Council
