Vote Yes For Streets

Ballot Proposal Prescott City Council voted unanimously to authorize a Special Election on September 1, 2009 to extend the transaction privilege tax for streets three-fourths (3/4) of one percent a term of twenty years (20) beginning January 1, 2016 used for the costs of planning, design, right-ofway acquisition and improvements, and other costs associated with the construction, rehabilitation and maintenance of City streets

Question for September 1, 2009 “Shall the City of Prescott provide for a transaction privilege tax of three-fourths (3/4) of one percent for a term of twenty years (20), beginning January 1, 2016, the proceeds of which are to be used for the costs of planning, design, right-of-way acquisition and improvements, and other costs associated with the construction, rehabilitation and maintenance of City streets, highways, alleys, and roadways, including but not limited to curbs, gutter, drainage, bridges, sidewalks, shoulders and medians. The accumulation of such tax proceeds to be in accordance with Article IX, section 20 of the Arizona State Constitution.” RESOLUTION NO. 3959-0965

Benefits Funds for Street Improvements Reconstruction, rehabilitation, widening, unpaved streets, new streets and sidewalks

Funds for Street Operations Right-of-way maintenance, pot hole patching, crack filling, street cleaning, traffic signals, snow removal, curb & gutter and sidewalk repairs

Funds to Protect Street Investment Preserve Prescott’s investment in street system infrastructure estimated to have a replacement value of more than $256,550,000

Presently 40% of all City streets are rated in fair, poor, very poor or failed condition Improving Prescott’s street system is fundamental to :  Public Safety  Quality of Life for Residents  Economic Future  Tourist Trade

Q. What are the differences between the current 1% Sales Tax and

VOTE YES FOR STREETS ? VOTE YES FOR STREETS is three-fourths (3/4) of one percent - current sales tax is one (1) percent This is a decrease of .025 (1/4) percent

VOTE YES FOR STREETS is for streets and associated projects only - current 1% sales tax is for streets and open space

VOTE YES FOR STREETS term is for 20 years to support long-term bonding and starts 2016 current 1% sales tax term is for 15 years and expires in 2015

Q. Why are Streets and Open Space separated? Twenty citizen members of the Prescott Capital Needs Committee recommended that streets and open space should be extended as separate issues judged on their own merits Open Space organizations support the separation Timing 





The City needs immediate approval on extension for streets to allow long-term bonding this year Determining Open Space funding needs requires resolution of State Trust status on “P” Mountain and Glassford Hill and evaluation of status on remainder of $40.7 cap Plan for funding for Open Space management is required

Extension of the existing 1% Streets and Open Space tax for 20 years using the remainder of the $40.7 million cap has no support with open space advocates

History of Existing 1% Sales Tax On September 26, 1995 voters of Prescott approved increasing the sales tax rate from 1.0% to 2.0% for the purpose of street repairs and improvements for a 10 year period effective January 1, 1996 till 2006.

In May 2000 voters approved the extension of the 1% sales tax through December 2015, with the use of proceeds expanded to include acquisition of open space.

Since the beginning of the 1% streets program on January 1 1996 the City has delivered the promised street projects and completed more than previously contemplated

Completed Assured Street Program Willow Creek Road Iron Springs Road 69/89 Connector (Prescott Lakes Parkway) Sheldon Street Widening (with ADOT) Pioneer Parkway (with Yavapai County) Copper Basin Road Williamson Valley Road (design complete, right-of-way acquisition underway)

All projects identified have been completed or are in progress

Street/Road Improvements 1996 – 2008 Improvements in excess of $1 Million approximately $110 Million

Improvements less than $1Million approximately $13.3 Million

Pavement preservation projects approximately $7.5 Million

14-year period totals - approximately

$130 Million

Pending Major Street Projects Ruth/Demerse Street Phase II Side Road / SR 89A TI Mt. Vernon Avenue Senator Highway Rosser Street Reconstruction P II&III Clubhouse Drive Relocation Williamson Valley Road Park Ave Sundog Connector Yavapai County Sundog Connector Storm Ranch Ruger Road Realignment/SR 89 Side Road Connector Roundabout Country Club Pavement Reconstruction

Total

$ 3,246,791 22,000,000 1,200,000 1,418,400 2,685,000 600,000 7,680,097 2, 650,000 1,200,000 2,420,635 1,659,165 1,019,165 1,540,000

$50,769,253

Q. Why is Prescott voting now on a tax that won’t take effect until 2015? The “pay as you go” policy is unable to handle steadily declining revenues with substantially increased construction and maintenance costs Without extension this year Prescott cannot bond and faces severe cash shortages and “emergency only” street maintenance Short-term borrowing provides inadequate relief Long-term borrowing is required this year to meet current obligations, maintenance, reconstruction, and major street improvements

Q. What has changed to make

Prescott’s “pay as you go” strategy inadequate to support required street construction and maintenance? 1% Sales Tax Revenue after doubling from 2000 to 2007 steeply dropped. Highway User Revenue Funds once static have been reduced while street maintenance costs have more than doubled Infrastructure Project Costs increased significantly peaking in 2006 at virtually triple.

Q. What is the history of the 1% Sales Tax Revenue since 2000?

1% Sales Tax Revenue went from $7.5 million in 2000 to $15.3 million in 2007 (doubled) 1% Sales Tax Revenue in 2008 dropped to $14.37 million 1% Sales Tax Revenue is projected at $12.5 million for 2009 1% Sales Tax Revenue 2010 – 2015

$???

1% Streets and Open Space Revenue 16

$ millions

14 12 10 8

$7.5 million projected annual revenue

6 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09

Projected

Sales Tax

$ millions

Street Maintenance Operations HURF Revenue/Street Maintenance

8 6 4 2 0

FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 HURF Maintenance

Impact of declining HURF funds on Street Maintenance Operations 1 0

$ millions

FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08

-1 -2 -3 -4 -5

($4,340,830.00)

HURF Impact

Infrastructure Costs (cost in 2006 dollars) Design & construct 2 freeway lanes -

$4 million/mile Design & widen municipal roadway from 2 to 4 lanes –

$3 to $5 million/mile Design, grade & pave municipal roadway –

$1.5 to $3 million/mile Bridge construction 4 lane

$8.5 million each Design & construct interchange –

$30 million each

Q. What are the advantages of long-term bonding this year? Reduces cash shortages immediately Provides local jobs and stimulus during tough economic conditions Takes advantage of historically low interest rates Provides funds for street maintenance, rehabilitation and construction Allows City to budget to meet Open Space commitment Resume unpaved streets and alley program

Organizations that recommend

VOTE YES FOR STREETS Citizens Tax Committee (CTC) Open Space Alliance of Central Yavapai County (OSA) Central Arizona Partnership (CAP) Prescott Chamber of Commerce Yavapai County Contractors Association

Sales Tax Community Meetings Thursday, June 18 – Board of Supervisors’ Meeting Room, Fair St. Monday, June 22 – Yavapai Hills Clubhouse Thursday, June 25 – Rowle P. Simmons Community Center, Rosser St. Wednesday, July 15 – City Council Chambers

All meetings begin at 6:00 PM