Unfortunately, College spends only $7.5 million — not $24 million — in the Verde Valley leaving millions on the table for West County use
A new in-depth financial estimate conducted by accountant and realtor Mr. Rob Witt suggests that the Verde Valley (including Sedona) as equity owners of the College should receive about $24 million annually for development, maintenance, and operations of the Verde Campus in Clarkdale and the Sedona Center. He says that the Blog report showing that the Verde Valley property taxpayers provide $14.7 million in property taxes is correct. However, he argues that this figure is far below what the Valley taxpayers should receive as equity owners in the College. He puts that figure at $24 million.
Recall that the College annually collects $14.7 million in property taxes in the Verde Valley and there is general agreement the College spends only $7.5 million of that money in the Verde Valley. This leaves $7.2 million left over in property taxes alone. (Note that over a two-year period 2016-17 the College invested about $2.5 to $3 million in capital improvements in each of those two years to renovate the Sedona Center.) Mr. Witt points out that there are millions of dollars in non-property tax revenue flowing to the College that are generated by Verde Valley students and families such as tuition, state aid, federal aid, grants and gifts.
Here is Mr. Witt’s equity argument: “When you summarize the property tax estimate from the East Valley, the Blog’s percentage is correct, however, by leaving off the East Valley’s percent of other revenue sources the Blog is significantly undervaluing the East Valley contribution. From an accounting standpoint, I look at the College budget like equity ownership. East County taxes fund 30% of the College Special District. This equates to 30% of the revenues and 30% of the expenses. The budget revenue is $82 million so the East County’s return should be 30% of that figure or $24 million.”
Mr. Witt has written to the College asking for a response to his detailed analysis with a spreadsheet in support of it. His spreadsheet is not included in this Blog. So far, he has not heard from the College.