News
State budget woes will affect Benson
Thelma Grimes/San Pedro Valley News-Sun
The growing state budget deficit will likely become a City of Benson problem in the near future.
In a presentation Monday night, Finance Director Jim Cox said the city has been surviving these tough economic times, but the state could sink their efforts.
Mayor Mark Fenn said Tim Bee of Gov. Janet Brewer's office said while things were bad in 2009, they are going to get worse in 2010 and 2011. Arizona went from being the second-fastest growing state in the nation in 2007, to 43rd in 2009.
This has created a more than $3.4 billion deficit, and Cox said the Arizona Legislature has only made $220 million in cuts so far.
"The city is slowly climbing out of this recession, but the state is not," Cox said. "The state's crisis could become the city's crisis. Some projections say things will get better, but I don't see any signs that it's getting any better. Things are bad at the state level, and they are getting worse, and nothing is being done about it."
The city is facing a $100,000 cut in state-shared revenues, $28,000 in cuts to state sales taxes and a $33,000 loss in highway user funds.
Besides the $161,000 in cuts, Cox said the state is already considering paying the $1.1 million they already owe the city in IOU's.
Not getting promised funds from the state means the city now has to make cuts.
Cox asked the council to direct department heads to look at what can be cut from their budgets. This could mean cuts to services such as lights at Lions Parks, halting street sweeping or layoffs.
Cox said other ideas include continuing the hiring freeze that has been in place since last year, early retirements, furloughs, salary reductions, layoffs and the elimination of positions.
Cox is expected to report the results of the proposed cuts during the Feb. 22 council meeting.
There is a real possibility that personnel will be cut because Cox stressed it makes up 68 percent of the city's expense.
Cox said the city does have some contingency money, but with state officials estimating cuts to continue through 2011, there is not enough.
In other business, the council unanimously approved a trust assurance agreement with the Southeast Arizona Economic Development Group (SEAEDG) to continue subdivision improvements to a project known as House Ridge Estates near Pearl Street in north Benson.
Public Works Director Brad Hamilton said the original developer went bankrupt, and the bank donated the land to the SEAEDG, a non-profit organization directed by former Benson Mayor George Scott.
Hamilton said SEAEDG will now have to hire an engineer and follow city procedure to develop the land.
Mayor Mark Fenn voted in favor of the measure, noting he is a member of SEAEDG. City Attorney Michael Massee backed the mayor's vote, stating it is not a conflict of interest because it is a non-profit organization.
Besides Scott and Fenn, the Arizona Corporation Commission lists Larry Demptser, Mark Battaglia, David DiPeso, Judy Thomas and Dennis Criswell as members of SEAEDG.
The council also approved a trust assurance agreement for the 224-home San Pedro Golf Estates development, which has been sold to new owner BIF-Benson LLC. The Arizona Corporation Commission has the statutory agent of BIF-Benson listed as Chris Heeter of Scottsdale.
The growing state budget deficit will likely become a City of Benson problem in the near future.
In a presentation Monday night, Finance Director Jim Cox said the city has been surviving these tough economic times, but the state could sink their efforts.
Mayor Mark Fenn said Tim Bee of Gov. Janet Brewer's office said while things were bad in 2009, they are going to get worse in 2010 and 2011. Arizona went from being the second-fastest growing state in the nation in 2007, to 43rd in 2009.
This has created a more than $3.4 billion deficit, and Cox said the Arizona Legislature has only made $220 million in cuts so far.
"The city is slowly climbing out of this recession, but the state is not," Cox said. "The state's crisis could become the city's crisis. Some projections say things will get better, but I don't see any signs that it's getting any better. Things are bad at the state level, and they are getting worse, and nothing is being done about it."
The city is facing a $100,000 cut in state-shared revenues, $28,000 in cuts to state sales taxes and a $33,000 loss in highway user funds.
Besides the $161,000 in cuts, Cox said the state is already considering paying the $1.1 million they already owe the city in IOU's.
Not getting promised funds from the state means the city now has to make cuts.
Cox asked the council to direct department heads to look at what can be cut from their budgets. This could mean cuts to services such as lights at Lions Parks, halting street sweeping or layoffs.
Cox said other ideas include continuing the hiring freeze that has been in place since last year, early retirements, furloughs, salary reductions, layoffs and the elimination of positions.
Cox is expected to report the results of the proposed cuts during the Feb. 22 council meeting.
There is a real possibility that personnel will be cut because Cox stressed it makes up 68 percent of the city's expense.
Cox said the city does have some contingency money, but with state officials estimating cuts to continue through 2011, there is not enough.
In other business, the council unanimously approved a trust assurance agreement with the Southeast Arizona Economic Development Group (SEAEDG) to continue subdivision improvements to a project known as House Ridge Estates near Pearl Street in north Benson.
Public Works Director Brad Hamilton said the original developer went bankrupt, and the bank donated the land to the SEAEDG, a non-profit organization directed by former Benson Mayor George Scott.
Hamilton said SEAEDG will now have to hire an engineer and follow city procedure to develop the land.
Mayor Mark Fenn voted in favor of the measure, noting he is a member of SEAEDG. City Attorney Michael Massee backed the mayor's vote, stating it is not a conflict of interest because it is a non-profit organization.
Besides Scott and Fenn, the Arizona Corporation Commission lists Larry Demptser, Mark Battaglia, David DiPeso, Judy Thomas and Dennis Criswell as members of SEAEDG.
The council also approved a trust assurance agreement for the 224-home San Pedro Golf Estates development, which has been sold to new owner BIF-Benson LLC. The Arizona Corporation Commission has the statutory agent of BIF-Benson listed as Chris Heeter of Scottsdale.
Copyright © 2012 - San Pedro Valley News-Sun