By Councilman Elect Adam Trenk, Esq. | The Scottsdale Republic
Cave Creek, a town of 5,000 people, is over $60,000,000.00 in debt, the highest per capita debt in the State. The only incumbent candidate left in the run-off to fill four open seats went on record on April 23, 2013 to state that the Town’s debt is under control and that the Town has a plan to pay off the debt early. He backed this up with an assertion that the Town’s ability to pay off the acquisition of Spur Cross Reservation Area early was an indicator of the Town’s fiscal health (failing to note there is literally no correlation since the Spur Cross debt was funded by a secondary, dedicated, property tax that generated revenues faster than originally anticipated because of rising home valuations set by the County, and that the debt the Town currently faces is to be funded with operating revenues). Yet, he contradicted himself by saying that revenues from unrestricted commercial development along Carefree Highway is necessary for the financial health of the Town, and that the alternative is a property tax. Well, which one is it? The Town’s finances are in order and we have a plan to pay off the debt, or we need unbridled commercial activity to avoid the necessity of property tax in order to pay our bills? It can’t be both.
Unfortunately the answer is that the Town has financial issues, the extent of which is largely unknown because of the Town’s historic lack of transparency. Our crushing debt equates to $5.4M of debt service payments each year, and this puts tremendous pressures on budgeting and carrying out the essential duties of local government. However, the future will be bright if we use our resources efficiently and carefully.
Carefree Highway is an asset to Cave Creek. And like money or any other asset it can be sloughed off for instant gratification or it can be safeguarded and nurtured to reach its full potential. In the short term, cashing in on Carefree Highway might mean allowing unrestricted general commercial development to pop up piecemeal, which may (or may not depending on the market’s reaction) alleviate the pressures of paying down our debt via development fees and sales tax revenues. With this approach will come unsightly generic commercial retail that will create low paying jobs, spew light pollution, generate an abundance of traffic, and detract from area property values.
On the contrary, the Town can and should engage in careful planning that will result in attracting high quality development. The goal should be sustainable high paying jobs, mitigated detrimental impacts on neighboring residents, and to create a draw that will work cohesively with the Town’s historic commercial corridor. If a nationally recognized brand representative of Cave Creek’s rugged beauty were to headquarter in Town, and stamp globally distributed products with the words “MADE IN CAVE CREEK, AZ” it would be a real boon.
It is not the job of our local government to dictate what uses ultimately populate the Carefree Highway Corridor. However, Cave Creek’s Council can take a proactive pro-business approach and facilitate maximization of the economic development potential of the area for the benefit of the constituents and to alleviate its debt pressures. Moreover, the Council owes a duty to surrounding residents to represent their interests as well. As such, careful planning to ensure noise, traffic, and light pollution are mitigated, together with efforts to attract the right potential users are appropriate. If done properly the market will respond and the resulting benefits will spill over for generations.
I am looking forward to working with the new council beginning on June 3, 2013. My hope is that the individuals who fill the four open seats in the run-off election will embrace a proactive approach to governance, and actively work with the citizens and business owners of our community. The future of Carefree Highway, establishing transparency, and securing our rural character will be among the issues we must tackle. The days of going along for the ride to rubber-stamp bureaucratic spending initiatives and standing in the way of small businesses are over. Cave Creek belongs to its residents, and if our Council’s governing philosophy reflects that, the future will be bright.
