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Glendale tax, Coyotes ballot measures have big budget implications by Lisa Halverstadt - Jun. 22, 2012 10:27 PM The Republic | azcentral.com Glendale faces two potential ballot measures that could rock the city's already-strained budget. Glendale business leaders filed an application this week to gather signatures against a City Council-approved temporary .07 percent sales-tax hike. Two other residents began circulating petitions to repeal a 20-year, $324 million lease agreement with likely Phoenix Coyotes buyer Greg Jamison. Council approved the deal this month. Both groups would need to gather about 2,000 valid signatures by July 5 and July 8, respectively, to secure a spot on the Nov. 6 ballot. The possible ballot items cast uncertainty on the city budget, which opens July 1. The operating budget includes a $17 million payment to Jamison to operate the city-owned Jobing.com Arena. The sales-tax hike is expected to generate $23 million to help balance the operating budget. Glendale leaders have said the initiative against the tax hike could be devastating. If the tax were repealed, Interim City Manager Horatio Skeete said Glendale might have to consider whether it could pay Jamison. Councilman Manny Martinez said losing all of the revenue from the tax hike "would be a disaster for us ... It would not be (the) same city that we know now." City officials who support the Coyotes deal see long-term benefits in keeping the arena's anchor tenant. Some Glendale residents see matters differently. "We can't afford the lease the way they've got it," said Ken Jones, one of two residents leading the effort to overturn the Coyotes deal. He said about 30 residents have volunteered to circulate petitions to submit more than the necessary 1,862 signatures for a referendum. At least a handful of those supporters have said they'll also back the sales-tax initiative. Another group of residents and business leaders wants to reverse the city's sales-tax increase that goes into effect in August. To get the initiative on the November ballot, the group must gather 2,108 signatures. The initiative would amend the city charter to require citizens to vote on any sales-tax increase. Rod Williams, chair of "Save Glendale Now," said in a Friday statement that the tax hike "represents a total lack of understanding by the City Council of the fragile business environment in which Glendale businesses compete." The group moved forward despite council efforts to appease business leaders by carving out an exemption for big-ticket purchases. The council is poised to approve the adjustment on Tuesday, which would force the city to trim the budget by another $1.1 million. Sanderson Ford President Dave Kimmerle, one of the leaders of the anti-tax group, said it doesn't pass muster. "We believe it is important that all businesses and citizens in Glendale be protected from rising sales taxes, not just a few businesses that sell high-ticket items or the citizens who buy them," he said. If the two measures make the ballot, political consultants say they should send strong messages to Glendale leaders. "If both council-approved issues are overturned by voters then the majority that approved these items should be very worried about their jobs," said Barrett Marson, a public-relations consultant and former House Republican spokesman. "It would be a clear rebuke of what they did." Three of four incumbents, including the mayor, are not seeking re-election this year. Successful ballot measures would also punish newly elected officials who would have to preside over the future cuts that result, said Bob Grossfeld, a Tempe-based political strategist. "At minimum, you're going to get your hand slapped with the Coyotes item," Grossfeld said. "With the second, it's not only are we slapping your hand, but we're going to cut your throat on top of it." Republic reporter Allie Seligman contributed to this article. |