Vote was 4-1 with only public opposition coming from four residents from the Verde Valley; Verde Valley Third District Representative joins West County in approving the measure
Archive for Taxes – Page 2
Yavapai Community College officially announces intent to seek primary property tax rate increase for all County residents
Yavapai Community College has notified taxpayers that it will seek approval from the five member Yavapai Community College District Governing Board to increase County residents primary property tax rate by 5% at the District’s May 16 meeting. The tax rate can be increased by a simple majority vote of the five member Yavapai Community College District Governing Board.
The following is the tax rate increase notice the College sent to local newspapers:
In compliance with section 15-1461.01, Arizona Revised Statutes, Yavapai Community College District is notifying its property taxpayers of Yavapai Community College District’s intention to raise its primary property taxes over last year’s level.
The Yavapai Community College District is proposing an increase in primary property taxes of $2,553,300 or 5%.
All interested citizens are invited to attend the public hearing on the tax increase that is scheduled to be held on Tuesday, May 16, at 1 p.m. at the Yavapai College Prescott Campus – Community Room 19-147, 1100 E. Sheldon Street, Prescott.
As an example, the proposed tax increase will cause Yavapai Community College District’s primary property taxes on a $100,000 home to increase from $143.66 (total taxes that would be owed without the proposed tax increase) to $150.84 (total proposed taxes including the tax increase).
This proposed increase is exclusive of increased primary property taxes received from new construction.
The increase is also exclusive of any changes that may occur from property tax levies for voter approved bonded indebtedness or budget and tax overrides.
Yavapai College operates six campuses and centers throughout Yavapai County and offers over 100 degrees and certificates, a baccalaureate degree, student and community services, and cultural events and activities.
Information provided by Yavapai College. https://www.yc.edu/v6/district-governing-board/members.html (Link to Governing Board Members web page is https://www.yc.edu/v6/district-governing-board/members.html)
Attributes large reserve to “sound fiscal management;” may need to explain at May tax rate hearing if some of the reserve funds can be used to reduce tax rate increase being proposed to add to County taxpayers’ primary taxes
Yavapai Community College reported at the April 2023 District Governing Board meeting that it now has cash reserves of $32.3 million. These reserves have been accumulated, according to the Community College, through “sound fiscal management.” 
There may be questions put to the College and Governing Board about these reserves at the May public hearing where it is anticipated the College will ask for a 5% County primary tax rate increase.
The College maintains cash reserves in accordance with a policy set by the District Governing Board. Currently, the Board requirements have set plant fund reserves at eight percent while the remaining funds are set at 17 percent. As the data from the Community College’s graphs (see below) presented to the Governing Board at the Board meeting April 11 show, the current $32.3 million is well above the minimum reserves required by Governing Board policy.
Could raise rate by 18 percent but most likely will ask for four or five percent increase
Yavapai Community College notified the District Governing Board at its October meeting that it will be seeking a primary property tax rate increase in May of 2023. It said that it needs more operating revenue and the only available source appears at present to be Yavapai County primary property taxpayers.
The College noted during its discussion with the Governing Board that it has not asked for a primary tax rate increase for four years. Typically, it asks for an increase every three years. Each year, when the College does not increase the property tax as allowed by law, the amount not used is carried forward. Thus, the reason for the 18 percent increase available, which the College has said it would never use.
The primary tax rate for the Community College can be raised by a majority of the five member Governing Board voting for it. While citizens will be given an opportunity to express their opinion about the tax rate increase at the spring budget adoption meeting, which is usually in May or June, they do not have a veto over it.
Most speculate that the College will ask around a four or five percent tax rate increase. But much may change between now and May 2023.
You may view a portion of the discussion held by the Board on the tax issue at the October meeting by clicking here. Note that the PowerPoint slides used by the speakers were not provided to the Blog so they could be inserted and the discussion better understood.
With 85 open acres on the Verde Campus, the issue is whether it could lease a portion of that land to a private company for a vineyard or other purposes and the company need not pay taxes
Last week, the Arizona attorney general sued Arizona State University(ASU) in Arizona Tax Court over a real estate deal approved by the Regents who oversee ASU.
He claims that it is illegal for ASU to allow for-profit companies to build on university-owned land, which is tax-exempt. ASU is essentially renting out its tax-exempt status to private businesses, Brnovich said. He seeks to force an unbuilt Omni Hotel to pay taxes.
The lawsuit is important to the Verde Campus in Clarkdale because it has somewhere around 85 acres of vacant land. In the future, that land might be built on in partnership with the College and a private company. Will the private company have to pay taxes? This lawsuit should answer that question.
Money could but won’t be used for educational programming, paying down existing bonds, or scholarships
The Yavapai Community College District Governing Board voted 4-1 to move $2 million from the General Fund to the Capital Accumulation Fund at its September meeting. The money will be applied to capital improvement plans and deferred maintenance over the next five years.
Representative Deb McCasland asked whether the money could have been used for other purposes such as scholarships and paying down the bond. She noted that when the Board voted 3-2 to raise taxes in May 2018 the College claimed it needed the increase to provide a little over $900,000 annually in new funding. McCasland wanted to know whether the two million could also have been used to meet those expenditures?
Vice President Clint Ewell admitted that the two million dollars could be used for educational and other projects. However, he noted that the Board had approved various capital improvement projects in the spring 2018 and the College needed this money to support those projects. Ms. McCasland had voted against the budget containing a long list of capital projects in the Spring 2018.
Ewell also said the two million dollars would cover only the next two years and that the College needed the tax rate increase to fund ongoing projects.
The process used by the College to transfer the money from the General Fund to the Capital Accumulation Fund allows it to avoid certain spending limitations placed on community colleges several years ago.
An edited clip of the conversation at the Board meeting follows below. You may view the entire discussion by clicking here and going to the College Governing Board web site where the entire meeting appears on videotape.
His analysis shows that East County residents pay 30% of the taxes collected by the College and should get something around 30% in return for educational services; they get far less
Accountant and local realtor Robb Witt says the 73,000 residents of East Yavapai County may be short-changed $12 million a year by Yavapai Community College. He arrived at his conclusion with the help of Tax Assessor Judd Simmons and budgetary material posted by the College.
Mr. Witt rhetorically asked the following in a statement supporting his analysis made to the Blog: “Is it reasonable for the tax payers of Yavapai County to expect services in return for the taxes they pay to support the community College? According to Yavapai County Tax Assessor Judd Simmons, East County Tax payers provide over 30% of the taxes used to fund the college. According to the audited financial statements of the Community College, 30% of the total budget for the 2016-2017 school year equals $22,093,809.00, A recent analysis of these financial statement suggests the college is returning just $9,072,824 in services leaving $12,987,936.00. unaccounted for.”
He continued: “If you pay taxes and feel like there should be some type of equitable return for your tax contribution you need to get involved.”
The Blog notes that Mr. Witt has asked the Community College administration for a response to his analysis. He has not as yet received a reply.
Also wonders why College continues to raise taxes and provide “less services”
Clarkdale resident Kerry Olson expressed concern with Yavapai Community College raising taxes and providing “less services” in a letter to editor of the Verde Independent June 28, 2018 (online). She also asked about how the revenue from the sale of wine was being used.
Hopefully, the College will respond to Ms. Olson. You may read her entire letter in the Verde Independent by clicking here.
Challenges need for property tax rate increase; increased spending on wasteful projects; tuition increase and Board ignoring voters
Second District Yavapai Community College representative Deb McCasland listed her concerns with the actions of the Governing Board at the May meeting in the Verde Independent newspaper “My Turn” column May 15. Among the many concerns was the majority on the Board essentially snubbing the public who spoke, all of whom opposed the increase. She wrote that it was difficult for her to understand “how the other board members can disregard the numerous comments from concerned citizens.”
She also wrote of her concern that the tax rate was increased at a time when the College really didn’t need the funding. Among other reasons a tax increase was not needed is the fact the College just received over $4.4 million in the sale of property to the town of Prescott Valley.
McCasland lamented the huge decline in student enrollment and the use of primary property tax money to fund capital projects. She observed that in the next few months the 70,000 residents of the Verde Valley will have an opportunity to bring about change with the appointment of a new College president.
You may read her entire column in the Verde independent by clicking here.
Editor slams West County Voting-Bloc for “happily” rubber-stamping proposal to increase Taxes
Christoper Fox Graham
In an editorial of Wednesday, May 16, 2018, the managing editor of the Cottonwood Journal Extra, Christopher Fox Graham, slammed the three members of the Yavapai Community College Governing Board who approved the tax rate increase at the Board’s May meeting. The rate increase will generate an estimated $896,100 annually. Those members voting for the proposal were Steve Irwin, Pat McCarver, and Chairman Ray Sigafoos. East County representatives Deb McCasland and Connie Harris voted against the increase. McCasland provided several reasons for her opposition to the rate increase. Harris did not explain why she opposed the rate increase.
Graham argued that merely reopening the Sedona Center with two programs hardly justified the increase. He pointed out that the residents on the East side of the County have been battling for years for a return of the tax revenue they give the College that is retained for building projects on the West side.
Graham also asked: “Why would the College need to bilk taxpayers yet again for this paltry amount ($896,100) when it just got $4.4 million from the town of Prescott Valley for the sale of some college-owned property?”
“Fortunately, Wills announced she will be retiring at the end of the calendar year,” wrote Mr. Graham. Adding insult to injury, the Board voted 4-1 (McCasland dissenting) to give Wills a $3,000 bonus. Graham commented that “if you’re wondering where increased taxes are going, they’ll be heading to Wills ‘personal bank account.
You may read Mr. Graham’s editorial when it is posted on line at the following site (click here).