Suggests inflation and student success are key factors justifying imposing a total  8.4% property tax rate increase in two years

Ray Sigafoos  is the longest serving member of the Yavapai Community College District Governing Board with 18 years of service. He is running once again for the position in November.

During the public portion of the Truth in Taxation Hearing May 21, 2024, Sigafoos’ opponent, William Kiel,  spoke forcefully against the 3.4% property tax rate increase. Sigafoos’ just as forcibly spoke in favor of the tax increase and voted to approve  it.

When explaining his vote, Sigafoos’ listed the wide variety of needs the Community College was serving in Yavapai County. He also alluded to inflation and student success as a significant reasons for approving a total of 8.4 percent tax rate increase during a two-year period. He also voted to approve the 2024-2025 budget.

Please click below to hear Mr. Sigafoos making his statement just prior to the vote explaining his position on increasing the tax rate. (Mr. Kiel’s statement to the Board via video was posted in last week’s Blog.)

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.

Says  in last three years Community College budget has increased by 155% (about $41 million); claims per student cost around $74,588; estimates President’s Rhine’s current salary around $350,00; questions cost/benefit while agreeing College has done many good things

Yavapai Community College District one  candidate William Kiel, while addressing the Governing Board at the May 21, 2024, public tax hearing, was unable to persuade its members to reject the 3.4 percent primary property tax increase it was considering. The property tax rate was approved by a 3-2 vote.

The 2024-2025 increase will add about $1.8 million annually to the budget. The 5% rate increase approved last year provided around $2.55 million in new annual revenue. The result is a total of $4.3 million of new revenue coming from property taxes each year to the budget. The Board could have approved a 1.4 percent increase without public input.

County property taxes alone, paid mostly by homeowners,  provides  the College with about $56.5 million annually.

Mr. Kiel expressed concern to the Board about raising the tax by 3.4 percent after it had already been increased by 5 percent last year. He also highlighted that the College’s budget has increased by around 155 percent (about $41 million) in just three years. He suggested the per student cost was somewhere around $74,588.He mentioned the President’s salary, which he estimated to be the highest in the county at around $350,000. He asked the Board to consider a cost/benefit analysis before going ahead and approve the tax rate increase.

It is noteworthy that District one appears to have three candidates interested in the seat, including current Board member Ray Sigafoos, Mr. Kiel, and George Joeger. Mr. Sigafoos wrote an opinion column supporting the property tax increase, which appeared in several local newspapers.

To check on the accuracy of his posting, please listen to Mr. Kiel’s presentations, which were restricted due to Board time limits, by clicking on the video below.

Money will mostly go toward west side housing projects, increased planned maintenance expenses, and improved electronic infrastructure

During the February 20 meeting of the District Governing Board, Clint Ewell, Vice President of Finance and Administrative Services at Yavapai Community College, presented several recommendations for generating additional revenue necessary for the upcoming 2024-2025 budget cycle.

Dr. Ewell outlined the following requisites to fulfill the projected budgetary needs:

1. A 4% cumulative increase in the County’s primary property tax rate.

2. Procuring an estimated $14 million by issuing revenue bonds.

3. Extending the outstanding payments on existing revenue bonds for a number of years.

Furthermore, Dr. Ewell explained that funding all current projects on the College’s drawing boards  would require a 13% increase in the primary property tax rate. He considered this impractical given the current tax climate.

It’s important to note that the District Governing Board holds the authority to issue revenue bonds and adjust the county’s primary property tax rate, requiring only a majority vote among the five-member Board. Notably, county voters do not possess a direct mechanism to vote on or veto such adjustments.

The final bond and tax rate figures will be presented and voted on by the District Governing Board in May 2024.

Dr. Ewell’s explanation to the Board regarding these recommendations can be accessed via the provided link by clicking here.

McCasland also votes to approve budget; Payne does not object but abstains on budget vote

Both members of the Yavapai Community College District Governing Board who together represent Sedona and the Verde Valley voted to approve the requested five percent tax rate increase on primary property in Yavapai County at the Governing Board meeting May 16.   Chair Deb McCasland also voted to approve the $101 million budget.  Newly appointed District three representative Toby Payne did not oppose the capital budget but abstained.

Governing Board Chair Deb McCasland

Ms. McCasland represents District 2, which encompasses about half of her constituents and includes the following:  Aqua Fria, Beaver Creek, Camp Verde 1 and 2, Canyon, Cherry Creek, Cordes Lakes, Cornville, Crown King, Humboldt, Mayer, Middle Verde, Montezuma, Prescott Country Club, Stoneridge, Sugarloaf and Verde Lakes.

Newly appointed Third District Representative Toby Payne

Mr. Payne represents District 3, which encompasses the following:  Big Park, Bridgeport 1 and 2, Clarkdale, Clemenceau, Coffee Pot, Cottonwood, Fir, Jacks Canyon, Jerome 1 and 2, Mingus, Orchard, Quail Springs, Red Rock 1 and 2, Red Rock East, Red Rock West, Verde Village, Western, and Wild Horse. All his constitutes live in Sedona/Verde Valley.

Ms. McCasland explained her vote in favor of the tax increase,  which explanation you can hear and see by clicking here.  

Ms. McCasland’s vote was needed in order to pass the budget, which passed 3-1-1.  She explained her vote in favor of the budget, which explanation you can hear and see by clicking here.  

Mr. Payne explained his vote in favor of the tax increase, which explanation you can hear and see by clicking here.

Mr. Payne did not object to the capital budget but abstained. You can see and hear Mr. Payne’s statement for abstaining by clicking here.