Little-known fund fuels Mesa Council clash
By Jim Walsh, Tribune Staff Writer 2019-05-27T01:00:00-07:00
"Mesa City Council member Jeremy Whittaker wants a City Charter amendment to improve financial sustainability, but Mayor John Giles said Whittaker’s initiative would “burn the place down’’ instead. . . "
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Hey! Nice to start off a report like that by East Valley Tribune Staff Writer Jim Walsh
Please note a couple of things:
1. That "little-known fund" was known to Jim Walsh for what seems a long time ago - back in 2010. Scroll down farther and you can read how that "fund" was intended to work to finance a facility for Minor League Baseball Spring that really turned into Major League Debt.
2. No wonder that at least one Councilmember, who knows how to analyze questionable financial statements and bogus presentations, is asking for some transparency.
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Please take the time - for yourself - to see, watch-and-listen to what Jim Walsh has termed "a clash". (Item 1-c)
The study session did encourage robust discussions and lasted 113 minutes. You can see from the clip provided by Mesa Channel 11 uploaded to YouTube, that newly-elected District 4 Councilmember Jennifer Duff is discussing another item on the agenda. (Item 1-a)
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| "Burn the place down . . " |
1. That "little-known fund" was known to Jim Walsh for what seems a long time ago - back in 2010. Scroll down farther and you can read how that "fund" was intended to work to finance a facility for Minor League Baseball Spring that really turned into Major League Debt.
2. No wonder that at least one Councilmember, who knows how to analyze questionable financial statements and bogus presentations, is asking for some transparency.
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The study session did encourage robust discussions and lasted 113 minutes. You can see from the clip provided by Mesa Channel 11 uploaded to YouTube, that newly-elected District 4 Councilmember Jennifer Duff is discussing another item on the agenda. (Item 1-a)
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Let's get back to the topic at hand:
"Whittaker’s has filed his intention to try and get an initiative on the November 2020 ballot that would cap transfers from the city’s lucrative Enterprise Fund to the General Fund at 20 percent — which he says would force Mesa to invest more money in infrastructure and cut down on other spending. . . "
There's a good reason for a people's initiative that needs 8,000 signatures to get on the ballot for November: To improve financial stability.
There's a good reason for a people's initiative that needs 8,000 signatures to get on the ballot for November: To improve financial stability.
"His proposal — which sparked a tense discussion at a study session last Thursday — has put him at odds with the majority of his council colleagues and the city administration. . . "
YES it might have been a somewhat "tense" DISCUSSION during the Mesa City Council Study Session on Thu 23 2019 and on Mon 20 May 2019, but hearing and listening to differences of opinions are welcomed and encouraged.
"Whittaker claims the city isn’t spending enough money on replacing aging water pipes and misspends money from the Enterprise Fund — which is fueled mainly by profits from the city’s electric utility. . . "
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Blogger Insert: City Electric Service Area >
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O YEAH! "The Devil's in the details" . . .
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That effort was the focus of the tense Council study session, where city officials unveiled an analysis predicting a dire impact if voters approved the initiative.
He said he only turned to his initiative after his colleagues ignored his proposals to cap Enterprise Fund transfers last year.
- The analysis — immediately criticized as inaccurate by Whittaker — predicted transfers from the Enterprise Fund to the General Fund would drop from $110 million to $72 million.
- That would have a domino effect on city services, the analysis said, to the point where voter-approved improvements would be postponed. . .
- Weeks before Thursday’s meeting, Whittaker predicted his initiative would cut city revenues by 8 to 10 percent – which he dismissed as relatively minor.
“It’s not a dramatic cut. It forces the reinvestment with the enterprise fund,’’ Whittaker said. “I am trying to achieve sustainability. My goal is always to achieve financial sustainability.’’
“I am forcing them to look down the road and make needed investments. If it passes, there will be cuts,’’ Whittaker said. “I am proposing a cut of 10 percent. I am not proposing a new source of revenue.’’
Whittaker also accused City Manager Chris Brady of making a misleading statement when he said
a series of land sales will raise enough funds to cover the first two or three years of payments on excise bonds financing the $63.5-million ASU Mesa City Center. . ."
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TRANSLATION: REAL ESTATE SPECULATION
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a series of land sales will raise enough funds to cover the first two or three years of payments on excise bonds financing the $63.5-million ASU Mesa City Center. . ."
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TRANSLATION: REAL ESTATE SPECULATION
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Brady said no Enterprise Fund money is earmarked for that project in fiscal year 2019-20.
http://www.eastvalleytribune.com/.html__________________________________________________________________________________
HERE'S WHAT TRIBUNE STAFF WRITER JIM WALSH DID KNOW ABOUT THE CITY'S ENTERPRISE FUND NINE YEARS AGO
by Jim Walsh - Jun. 3, 2010 10:30 AM The Arizona Republic
"Mesa will cover the entire $84 million cost of a new spring training complex for the Chicago Cubs if necessary by selling 11,000 acres of Pinal County farmland that was originally purchased 25 years ago for its water rights. . . Smith also said Mesa will not ask voters in November to approve bonds to pay for the city's share of the project, relying on the land sales instead. He said Mesa no longer needs the Pinal County land to assure its water supply.
Voters will, however, be asked to approve an increase in the bed tax to 5 percent from 3 percent, bringing it in line with recent hikes in Scottsdale and Tempe. The $1 million increase in revenues from the bed tax would be applied to the $5-6 million estimated debt service on the new stadium. ..
Smith said Pinal County farmland would be sold off gradually as needed during a 5 to 15 year period to maximum market conditions. He said Mesa doesn't need to sell any land yet because construction on the new stadium wouldn't start until 2012, with the first pitch thrown in 2013.
All funds used on the Cubs training facilities would come out of the city's enterprise fund, which includes revenues from utilities, the convention center and golf courses, and not the general fund, which finances basic government services.
Brady said Mesa never mentioned the farmland proposal in February for fear it would torpedo efforts to pass a regional funding solution. Smith said two or three previous land sales have netted the city $5 to $10 million in recent years. . ."
Reference: CITY OF MESA
PINAL COUNTY FARMS
±11,446 ACRES, PINAL COUNTY
PRESENTED BY: NATHAN & ASSOCIATES, INC.
LOCATION: Pinal County Farms is comprised of 32 parcels in Pinal County, Arizona that lie approximately from Curry Road to the West, Bartlett Road to the north, Wheeler Road to the east and Houser Road to the south. These parcels lie within the planning areas of Pinal County, Eloy and Coolidge _________________________________________________________________________
RESOURCES
Mesa City Attorney https://www.mesaaz.gov/city-hall/city-attorney
The City Attorney is appointed by the City Council and works at the direction of the City Council. The City Attorney supervises the entire City Attorney’s office, which includes
- the City Prosecutor
- three Deputy City Attorneys
- and approximately 58 staff attorneys and staff members.
In addition, the City Attorney
- reviews and approves proposed City ordinances, resolutions, contracts, and other legal documents.
- oversees property acquisition needed for public improvements
- prepares legal opinions for City Council and other City staff
- and oversees the litigation involving the City.
Meet the City Attorney
Jim Smith is the Mesa City Attorney. Prior to becoming the City Attorney, Jim was a Deputy City Attorney and has been with the City of Mesa since October 2003.
Prior to joining the City, Jim was
- an Assistant Attorney General with the Arizona Office of Attorney General
- Deputy County Attorney with the Office of the Maricopa County Attorney
- practiced law with two private firms in Phoenix.
Jim has a law degree from the University of Arizona and a Bachelor of Science from Arizona State University.
