Propositions 400, 401, 402 General Election May 2010 City Sales Tax, BBB Tax and APS Franchise Agreement RENEWALS Flagstaff: Our Community Our Future 1

Why are we talking with our Community – You are the Voters – You decide State of the City City Renewal Questions on May Ballot – Proposition City Sales Tax – Proposition BBB Tax – Proposition APS Franchise Agreement Other Questions on May Ballot – State Sales Tax Increase and Meet and Confer 2

State of the City – ALL funds will balance to revenues – 11% reduction to the General Fund = $6 Million – 8% reduction to BBB Funds = $582,000 – Color of money 3

Ballot Renewal Questions in May Proposition City 1% Sales Tax: 10-year limit, expires November, 2014 (first adopted 1964) Proposition BBB 2% Tax: 15-year limit, expires March 2013 (first adopted 1988) Proposition APS Franchise Agreement: 25-year limit, expires August, 2011 (last adopted 1986) 4

Tax Overview 5 Tax Rates Fiscal Year 2010 State5.60% County1.13% City1.00% Transportation0.72% Retail: 8.446% BBB2.00% Restaurants and Bars: % Hotels:10.458%

Proposition 400 Renewal of City 1% Sales Tax NOT a tax increase Approximately 59% of tax paid by visitors Renewal is at the existing base rate of 1% for 10 years Flagstaff is the only city in Arizona that votes for sales tax renewal The 1% city base rate is the lowest in the State of Arizona – Williams: 3%; Kingman: 2%; Camp Verde: 2%; Page: 3% Sales tax does not include residential rent or food The 1% Sales Tax accounts for 27% of General Fund Revenue (Fiscal Year 10 - $13.4 million) Number one funding source for Police and Fire 6

How Your City Sales Tax $$ are Spent Fire : 99 personnel 9,964 emergency calls 7,550 EMS calls 263 fire calls 2,151 other calls 224 acres marked 761 acres thinned 7

How Your City Sales Tax $$ are Spent Police: 161 personnel 70,908 dispatch calls 12,527 calls to FFD Reports Filed: 3,661 felony 12,939 misdemeanor 1,470 domestic violence 10,996 non-crime 2,917 accidents 8

How Your City Sales Tax $$ are Spent Courts: 28.2 Personnel 9,330 criminal cases 10,639 traffic cases 445 domestic violence cases 9

How Your City Sales Tax $$ are Spent Parks: 7.8 personnel 26 developed parks 4 undeveloped parks 712 acres of park space 54 miles of FUTS trails 10

How Your City Sales Tax $$ are Spent Recreation Fiscal Year 2010: 19 basketball courts 1 BMX facility 2 disc golf courses 12 horseshoe courts 1 ice arena/activity center 2 off leash area dog-parks 20 playgrounds 4 racquetball courts 11

How Your City Sales Tax $$ are Spent Recreation Fiscal Year 2010: 11 ramadas 4 recreation centers 2 skate parks 4 soccer fields 1 softball complex 12 softball/baseball fields 1 community aquatic center 6 volleyball courts 12

How Your City Sales Tax $$ are Spent Library – Fiscal Year 2009: 738,603 visits 887,887 circulated pieces of material 80 Literacy Programs 1737 Children/Youth Programs 13

If Not Renewed? These services would not continue at their present levels without additional revenue sources. 3 out of every 10 positions paid for out of the General Fund may be eliminated 14

Proposition 401 Lodging, Restaurant, Lounge (BBB) Tax First adopted in % tax collected on services provided by lodging, restaurants and bars Voters approved the tax and how the revenue would be divided to five City programs 15

Proposition 401 Lodging, Restaurant, Lounge (BBB) Tax NOT a Tax Increase Approximately 73% of the BBB tax is paid by visitors BBB Tax generated $5.05 million in FY 09 Renewal request is at the existing rate of 2% for 15 years 16

Proposition 401 Lodging, Restaurant, Lounge (BBB) Tax The BBB Tax renewal maintains the existing allocation. 17

Lodging, Restaurant, Lounge (BBB) Tax Parks & Recreation: BBB funds new capital and maintenance of existing parks and recreation projects Maintain FUTS trails Maintain 5 school fields Christensen, Killip, Sechrist, Thomas and Mount Elden Middle School Maintain 7 recreation sites Bow & Arrow Park, Bushmaster Park, Continental Sports Complex, Foxglenn Park, McMillan Mesa Park, The Basin/BMX Facility, and Thorpe Softball Complex. 18

Lodging, Restaurant, Lounge (BBB) Tax Economic Development: Northern Arizona Center for Emerging Technologies (Incubator) University to Business Connection Marketing tools Business Attraction and Retention/Expansion 19

Lodging, Restaurant, Lounge (BBB) Tax Arts and Science: Supports over thirty community organizations and events in partnership with Flagstaff Cultural Partners 20

Lodging, Restaurant, Lounge (BBB) Tax Tourism: $501 million economic impact and supports 5,483 jobs annually Over 100,000 people utilize Visitor Center annually Support marketing and sales efforts to generate additional tax revenues 21

Lodging, Restaurant, Lounge (BBB) Tax Beautification: Partially supports the following: City gateway signs Median barriers and landscaping Downtown Management Plan Fourth Street Corridor Southside streetscapes Route 66 billboards removal and landscaping Plaza Vieja Lavender Garden 22

If Not Renewed? If not renewed, there are no alternate revenue sources currently available. If not renewed, programming such as maintenance of City parks; support for business attraction and retention; support for arts and sciences; tourism efforts and beautification projects would be reduced, discontinued or allocated from the General Fund, impacting other City services and programs. 23

Proposition 402 APS Franchise Agreement 25 year extension of the APS Franchise Agreement Allows APS to use City Right of Way to deliver service City collects Sales Tax and a 2% Franchise Fee (Funds Police, Fire, Library, Courts, Parks and Recreation) 24

Flagstaff: Our Community Our Future Community Outreach and Education Plan on Propositions 400, 401, 402: Community Forums City of Flagstaff Website Commission/Board Presentations Community Organizations Presentations Neighborhood Association/Organization Presentations 25