Archive for Taxes – Page 4

GOVERNING BOARD PREPARED TO INCREASE PROPERTY TAX RATE BY 2% IN MAY

Although enrollment flat, College to receive $896,100 in new tax revenue and $608,500 in new tuition revenue ($1,504,600) –– Total tax revenue going to the College next year is $50,628,300; total tuition is $11,355,000; $4 million windfall to be banked

After surveying the Yavapai Community College Governing Board members at the April 2018 meeting, the College Administration has enough votes to increase the County property tax rate by at least 2%.  In February 2018 the Board had voted 4-1 (McCasland dissenting) to increased tuition by 5%. The increases will generate at least $1,504,600 in new revenue flowing to the College. 

The increases will be approved despite the fact that the College received a windfall of $4 million from the sale of its teaching facilities at the Prescott library.  It was once hoped that Yavapai College and Northern Arizona University would jointly operate the three-year experimental degree program at the library.  However, those plans evaporated when NAU hired a new president.  Per an agreement with the town of Prescott Valley the $4 million investment by the College in the town library is being returned.

PROPERTY TAX ESTIMATE BY COUNTY ASSESSOR IS $14.57 MILLION GOING TO COLLEGE FROM EAST COUNTY RESIDENTS

County assessor Judd Simons estimate consistent with others made since 2014; Operational costs for Verde Campus and Sedona Center about $7.5 million; that means an estimated $7 million of East-County taxes annually remain on west side of County

The property taxes being paid by east Yavapai County residents far outpace the return of that revenue by the College to the east County for post-secondary education.  On March 7, 2018 County Assessor Judd W. Simons provided a “rough estimate” of property taxes being paid by east County residents at the request of realtor Rob Witt.  Mr. Simmons estimate in writing was put at $14,570,400.

Mr. Simmons estimate is fairly consistent with other estimates received from the County in 2014 and 2015.  In those years, the estimate was about $12.5 million. 

East County residents have argued for years that their taxes are paying for programs, building and projects on the west side of the County that they do not have reasonable access to and do not benefit from. Despite their pleas and documented evidence, little has been done to reduce the inequity between the east and west sides of Yavapai County when it comes to College development.

COLLEGE PRESS RELEASE ABOUT GOVERNING BOARD MEETING SAYS NOTHING OF 4% TAX RATE INCREASE

Best to keep taxpayers in the dark; No newspaper accounts so far

It is of interest that when Yavapai Community College released its press report explaining what took place at the January 16, 2018 Governing Board meeting there was no mention of Wills’ request for a 4% tax rate hike (or 5% tuition increase).  But for the Blog and the videotape of the meeting, Yavapai residents would be completely in the dark about her  tax rate request. As of this date, there have been no local newspaper accounts of the tax rate request and the Governing Board reaction to it.

You may view the Community College press release about the meeting by clicking here.

You may view the entire Board meeting including the videotape where the Wills’ Administration asked the Governing Board to consider a 4% property tax rate increase by clicking here as soon as it is posted.

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WILLS SEEKS 4% PROPERTY TAX RATE HIKE; 5% TUITION INCREASE: BOARD NOT ENTHUSIASIC

McCasland, Sigafoos & McCarver voice concerns  with Wills’ request;  Harris and Irwin silent

The Wills’ administration, in preliminary talks about the 2018-19 budget at the Governing Board meeting on Tuesday, January 16, sought large increases in revenue flowing to the College. The Administration suggested a four percent increase in the Yavapai County Property Tax rate.  It also suggested a five percent student tuition increase for 2018-19.

The suggested increases did not go down well with at least three members of the Board. Board members Deb McCasland (Verde Valley/West side), Ray Sigafoos (Prescott) and Pat McCarver (Chino Valley) all indicated concern with the either the tax rate or tuition or both.   Sigafoos seemed particularly concerned about the tax rate increase. He suggested the Administration go back to the drawing board and return with a more reasonable proposal.

Third District Verde Valley Representative Connie Harris and Prescott Valley Representative Steve Irwin said nothing.

The proposal by the Wills administration is a preliminary one.   In February the first serious test of the recommendation will come when the Board sets tuition for the 2018-19 academic year.  The tax rate decision will come after that with a final decision in May or June 2018.

ARE ANNUAL TUITION INCREASES AT YAVAPAI COMMUNITY COLLEGE CONSTITUTIONAL?

Does Attorney General Brnovich’s lawsuit against Arizona Board of Regents for not adhering to a State constitutional requirement that tuition for residents attending state universities be “nearly as free as possible” raise legal issues for Yavapai?

On September 8 Attorney General Mark Brnovich filed a complaint against the Arizona Board of Regents claiming board members have “dramatically and unconstitutionally’’ increased the cost of going to one of the state’s three universities.  He argued that Arizona’s Constitution, article XI, § 6 was violated.  It states that “The university and all other state educational institutions shall be open to students of both sexes, and the instruction furnished shall be as nearly free as possible.”

Does the fact that student tuition at Yavapai Community College is specifically used to pay off revenue bonds that were sold to renovate the student residence halls violate that Amendment?  After all, the Governing Board could have asked voters to approve a General Obligation Bond to pay for renovation rather than put the debt on the shoulders of student tuition.

Does the fact that over the past ten years the Governing Board has increased tuition in some form at a rate far above inflation while spending an estimated $100 million on capital projects, using money paid from primary taxes for those projects, rather than applying those funds to keep tuition low, violate the State Constitution? After all, the Governing Board could have sought voter approval via General Obligation Bonds to pay for those expensive projects.

Does the fact that tier 2 courses cost double what they cost ten years ago or that in some alleged “market based courses” students pay over $500 per credit hour violate the Constitutional provision to keep tuition as “nearly free as possible”?

Maybe this lawsuit will bring about some answers to those questions.  Maybe the Yavapai Community College District Governing Board might even discuss this issue—but probably not.  The Blog assumes the Board with Deb McCasland most likely dissenting will push through another tuition increase in excess of inflation in February or March 2018 while continuing to spend millions on capital projects using primary tax money rather than ask voters to approve General Obligation Bonds for the projects.  After all, given its history, does anyone really believe there will be a serious attempt by the Yavapai Community College Governing Board to keep tuition as “nearly free as possible?”  

Yavapai Community College District taxpayers pay highest primary property tax levy in Arizona

Most taxpayers in Arizona pay between $4,500 to $6,000 in taxes per FTSE; Yavapai taxpayers pay $11,091

The Yavapai Community College District is flush with money from taxpayers.  That was confirmed in an analysis released in the September report by the Arizona Tax Research Association (ATRA).  In the special state-wide report on Community Colleges, ATRA  provided a detailed comparative analysis of how much each Community College District is paying in total taxes per FTSE.  FTSE is defined as the total semester credit hours divided by 12, which is considered to be a full-time course load.Taxes 7

According to the September ATRA report, “on average, the taxpayer effort per FTSE is just under $6,000” in Arizona.  However, “the highest is Navajo CCD at $11,421 with Yavapai close behind at $11,091.”

The report also states that the Yavapai District’s “primary property tax levy per FTSE ranks highest in the state at $10,667, nearly double the statewide average.”

So Sedona and Verde Valley taxpayers, you now understand how the College can frantically spend millions of dollars on construction without seeking voter approval; it has a lot of money to spend.

You may read the entire report by clicking here.

Wills apologizes for leaving Sedona out of property tax increase promotion speech

Says she was unable to get to Sedona before June 2015 recommendation to increase property taxes was approved by Governing Board

Yavapai Community College President Penelope Wills appeared before the Sedona City Council October 27 to answer questions about the future of the Sedona Center.  She began her presentation by apologizing for leaving Sedona out of her travels around the County promoting the tax increase prior to its adoption in June by the College Governing Board.  She had met with Cottonwood, Prescott Valley and other municipal governments promoting the  reasons she wanted to increase property taxes but not Sedona.Whoops 

The only explanation offered by Wills at the Tuesday evening meeting for leaving Sedona out of her tax increase speeches was that she was “unable to get to Sedona.”  Nothing more.   Although the tax increase was approved in June, she went on to say that she was now giving the Sedona Council the speech she had given (apparently explaining why she wanted property taxes increased)  “so you don’t feel left out.”  The brief Wills’ statement apologizing to the Mayor and Council can be found by clicking here.

Sedona Taxing District forks out $7 million annually to support College

Sedona Facility Receives little in return for its huge tax investment

Using 2012 data, the City of Sedona reports (9/25/2015) that the Sedona Taxing District annually forks out over $7 million dollars to Yavapai College.  Of that amount, $6,589,567 is paid through primary taxes and $754,622 goes to pay off General Obligation bonds.

Taxes 6With total primary tax-based revenue in 2012 flowing to the College from Yavapai County property taxpayers of $43,701,144.00,  this means the Sedona Taxing District alone contributed at least 15 percent of the revenue toward operating the College.

In the past two years the College has threatened to close and sell the Sedona Campus and shut down the well respected film program.  Because of a wave of outrage at the potential closing, the District Governing Board backed off selling the property by settling a dispute with an adjacent landowner that had festered for a decade.  However, the administration followed through on its threat to shut down the Sedona Film School.  In fact, the College administration stripped the Sedona Center of all but one or two College credit courses taught by adjuncts. After two years, it  has done little to return Yavapai College credit courses to the facility. 

There are Osher Lifelong Learning courses offered by the independent nonprofit Osher Foundation.  The Foundation is not a part of the College, rather it is a 501(c)(3) nonprofit that pays Sedona Osher employees from a $2 million fund it set up for them.  The College provides in-kind support by allowing Osher to use its facility.

The full story carried in the Redrock News online can be read by clicking here.

Al Filardo fights for Verde Valley

Third District Yavapai College Board member fails with logic and common sense to stop the three Board members from the West side of Mingus from increasing property taxes

Al Filardo 2Third District Community College Al Filardo presented compelling reasons in opposition to a 2% increase in the County property tax at the June 9 District Governing Board meeting. Unfortunately, the three members on the West (Prescott) side of the Mountain rejected his carefully thought out position. Among the reasons Filardo opposed an increased property tax were the following:

• Inflation remains flat.
• Enrollment at the Community College is down.
• The economy has not fully returned from the recession.
• The Community College is sitting on huge cash reserves.
• There is no plan—before you spend public money you should have a strategic plan that supports the spending.
• Without a strategic plan, there is no basis for increasing revenue.
• The College ten-year-plan is not in any way shape or form a strategic plan.
• There should be no rush to increase taxes—a one year delay will allow the College to unroll its strategic plan and match spending to planning.

Mr. Filardo’s effort to persuade the five member Governing Board may be viewed by clicking here.

 

Prescott Dominated Governing Board thumbs its nose at most important Verde Valley Board Advisory Committee Recommendations

Requests to not increase taxes and delay capital construction until a strategic plan is in place rejected

At the District Governing Board’s May 19, 2015 meeting, four recommendations came from the Verde Valley Board Advisory Committee. The seven member committee consists of outstanding residents with educational backgrounds and interests from Sedona, the Verde Valley and the Yavapai-Apache Nation. The recommendations were clear. 

1. Delay approval of the capital improvement portion of the 2015-2016 budget until the District Governing Board has the recommendations of the Verde Valley strategic plan currently being developed.
2. Increase the marketing and recruitment efforts in the Verde Valley by implementing a program of continuous and direct interaction with students and their parents to seek students’ wants and aptitudes.
3. Amend the Campus Master Plan to remove all language about divesting of the Sedona Campus.
4. Do not raise property taxes this year.

McCarver 1
“BOSS” Pat McCarver, Governing Board Chair

Recommendations 1 and 4 were the most important. At the Governing Board meeting on Tuesday, the three members from the Prescott/Prescott Valley areas on the 5 member Board voted to raise taxes and approved the capital budget. The two representatives representing Sedona and the Verde Valley voted in favor of the Committee’s recommendations.

Most of the hard work of the Verde Valley Board Advisory Committee with these votes has turned out to  be in vain when it comes to the most important recommendations it made to the Governing Board. As Governing Board Chair Pat McCarver has expressed clearly to the Committee, we are the “BOSS.” That means the trio making up a majority of members from the West side of the County are in control of matters—not anyone from Sedona or the Verde Valley.