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Glendale taxpayers, bend over now.
Glendale Mayor Elaine Scruggs and the other members
of the Glendale City Council want every last cent in your wallet.
How else are they going to give the Phoenix Coyotes $324 million in corporate welfare if they don't steal it from you. Glendale City Council approves secondary property-tax hike by Lisa Halverstadt - Jun. 27, 2012 10:19 AM The Republic | azcentral.com The Glendale City Council on Tuesday warned residents that tax increases are better than the alternative. A five-member majority, including Mayor Elaine Scruggs, approved a secondary property-tax hike and add a two-tiered sales-tax rate that exempts purchases over $5,000 from an already approved sales-tax increase. The secondary property-tax increase, which will be $1.68 for every $100 of assessed value, will appear on resident's bills in October while the sales tax will have customers pay 2.2 percent on large purchases rather than the 2.9 percent increase approved earlier this month. The sales-tax hike is effective in August. Council members who supported the measures said the increases were essential to Glendale's future. They expressed concern about a business group gathering signatures to place an initiative on the November ballot that would reverse the sales-tax hike and require voter approval on future tax increases. Council members Norma Alvarez and Phil Lieberman, who both called into the meeting, opposed both increases. Councilman Manny Martinez said Glendale will lose out on millions if the ballot item is successful. Staff project the sales-tax increase would add about $23 million to city coffers in the upcoming budget year. He described potential cuts to the police and fire departments and added that rather than simply cut library hours, the city might be forced to shutter libraries. "I want everybody to understand exactly what we're faced with," Martinez said. After a handful of council and mayoral candidates spoke on the sales-tax item, Vice Mayor Steve Frate said Glendale's newest council members would face draconian cuts without tax increases. This isn't something that we're doing wily nilly and not thinking this out," he said. "These are hard times and I'm willing to take the flack." Council opted for the two-tiered sales tax after business leaders were concerned shoppers would avoid big-ticket purchases in the city. Nick Wood, an attorney representing Sands Chevrolet, thanked council members for "a great compromise." Mayoral candidates Manuel Cruz and Jerry Weiers said they supported the tweak while Sahuaro District council candidates Diane Douglas and Anthony Kern criticized it. "This (initiative) that probably will go on the ballot in November is to me a good thing," Kern said. "I think the citizens would support even a tax increase for public safety if they knew that was what it was for." Representatives from the Home Builders Association of Central Arizona, a group helping to gather signatures against the sales-tax increase, attended the meeting but did not address council. Nearly all speakers had left by the time the council considered the property tax hike. Budget director Sherry Schurhammer said the increase is essential for Glendale to pay its bond debt on buildings including city aquatic centers, public safety facilities and flood control projects. The hike won't fund new projects. Drastic drops in home values have challenged Glendale and other Valley cities. In 2010, Glendale took in $29 million in secondary property-tax revenue, which is expected to drop to $15.7 million in 2013. Meanwhile, last year the city began seeing its bond debt climb. Councilwoman Joyce Clark urged residents to remember their appreciation for city properties when they pay increased property taxes. "There's not enough money coming in to pay the bill, folks," she said. [That's a polite way of saying that us government thieves have not stolen enough from you!!!] The increase means a Glendale resident with a $176,000 home will pay $296 in secondary property tax rather than the $242, an amount city officials said is still less than a home owner paid during the real-estate boom. Glendale's new combined property tax rate will be $1.90 per $100 of assessed valuation. Some other Valley cities are also expected to increase property tax rates this year to offset lower home values. Tempe's combined rates will go from $1.79 to $2.14 while Scottsdale homeowners will pay $1.23 per $100, up from $1.09. But the increase will push Glendale's secondary-property tax rate higher than most other Valley cities, including Peoria and Phoenix. Schurhammer said Glendale's relative lack of high-end commercial properties translate into higher rates. |