Lack of clarity on future allocation of $22.2 million in savings leaves community members puzzled and questioning tax increase
In its budget book, prepared for the May 21, 2024, meeting, Yavapai Community College included a graph illustrating its savings across two of its five funds. The graph revealed that, by the end of 2023, the college had accumulated $22.2 million in cash reserves. This was in addition to $15.1 million that are Board designated minimum reserves (total $37.3 million).
Third District Governing Board member Toby Payne was the only Board member to question the substantial amount of money in reserves with no apparent clear designated purpose. When he inquired about the chart and the $22.2 million, Vice President Clint Ewell responded that it represented “savings” but did not provide any further explanation.
This raises several important questions: How much of the $22.2 million remains in savings? Was part of it, specifically the $5 million, used secretly to pay a developer for purchase of the 42-acre Prescott Pines Camp taken from those reserves? Why is there a proposed 3.4% tax increase, projected to generate approximately $1.8 million, when the college already has $22.2 million in reserves?
Answers to these questions remain elusive. Aside from Mr. Payne, only Mr. Ray Sigafoos showed interest, speculating that the funds might be reserved for future capital purchases.