As city of Cottonwood Finance Director Rudy Rodriguez began his address to a crowd gathered for another installment of the Mayor’s Coffee Talk series, Saturday, Aug. 13, he warned that governmental accounting is different from business accounting and can be difficult to understand.
Prior to the event, Mayor Diane Joens had sent out a press release about the budget presentation, stating that she sought “to answer questions and dispel the rumors that are currently circulating” concerning the city’s financial situation.
Joens’ governance has been under fire by her Yavapai County District 3 opponent Randy Garrison and a subject of debate among the three candidates looking to replace her — Tim Elinski, Holly Grigaitis and Terence Pratt.
“One thing people don’t realize is that a $73 million budget doesn’t mean we’re going to spend every penny,” Rodriguez said, adding that the approved figure for the 2017 fiscal year merely gives the city authority to use up to that amount. “Realize that this is not a wish list. It’s a living document. We have to make changes, and we do …. Quite frankly, we’re not expensive compared to other Arizona communities.”
In support of this last claim, Rodriguez presented data comparing a number of spending factors:
- The general trend of approved city budgets is not increasing. From 2007 to 2017, the number has ranged from $57,448,125 [2007] to $132,562,405 [2010]. 2017’s figure, $73,112,570, is the third lowest in the 11 years Rodriguez documented.
- Personnel-to-budget cost ratios are “pretty much in line” with other Yavapai County communities. Comparing the city’s approved 2017 budget and personnel costs to nine other municipalities’ approved budgets and personnel costs, Cottonwood allocates 25.36 percent of its budget to paying its employees — compared to Clarkdale’s 15.93 percent and Camp Verde’s 40.45 and an average of 28.01 percent.
- Rodriguez touted Cottonwood as a “full-service community … a totally different animal,” and said that any straight comparison between communities that do not offer a full range of services would misrepresent the costs. Out of the nine county communities listed, Cottonwood boasts seven out of 10 services: A police department, a fire department, a library, a parks and recreation department, a water utilities system, a wastewater system and an airport. Cottonwood lacks only an electrical utilities system, a municipal golf course and a sanitation department. Only Prescott and Williams offer a greater number of municipal services, at nine services each. Show Low offers a comparable range of services to Cottonwood.
- Rodriguez contrasted the salaries of Cottonwood’s city manager, Doug Bartosh, to Sedona’s city manager, Justin Clifton. Bartosh, with an approved budget of $73,112,570, earns a salary of $157,528. Clifton, with a budget of $38,360,866, earns a salary of $165,000. Bartosh’s monthly car and phone allowance, health savings account contribution and city-paid health care benefits are less than Clifton’s.
Not accounted for in Rodriguez’s presentation materials but mentioned as a significant benefit to residents is Cottonwood’s transit system, services and costs of which are shared with Sedona. According to Rodriguez, Cottonwood is one of few communities of its size to offer comprehensive transit services. Prescott, a much larger community, offers little in the way of transit services.
“All without a property tax,” Rodriguez said, but added that though he is proud of how much the city offers with its current revenue structure he would be in favor of a property tax to generate more revenue. “The council has not wanted to put the extra burden of a property tax on people …. [A property tax] would make it easier on me, but it’s not about me.”
According to Rodriguez, Cottonwood’s total indebtedness currently stands at $50,564,757 — a figure that has been on a generally downward trend since its high point in 2008, when indebtedness stood at nearly $63 million.
“This is nothing new,” Rodriguez said. “Most cities have debt.”
