Wednesday, October 9, 2024

Voters to Decide on Transit, BBB Tax, Budget Expenditure Base – Flagstaff Business News

Must read

Nov. 1 is the last day to vote early in person.

In the November election, Flagstaff voters will decide on three local propositions, two of which would affect the city’s taxes for at least a decade.

If approved, Proposition 487, enacted in 2013, would extend the city’s 2% Bed, Board and Beverage Tax for 14 years, allowing collections to continue beyond 2029, to 2043.

Voter approval of Proposition 488 would increase the city sales tax earmarked for public transit from 0.295% to 0.5% and extend the tax for a decade, to 2040. The increase would amount to consumers paying 50 cents for the transit tax on a $100 purchase instead of the current tax of 29.5 cents on a $100 purchase. Food is exempt from the transit tax.

The third measure is Coconino County Proposition 482, which would allow the county to increase its budget expenditure base of $10.3 million by $7.7 million. It would not affect the county’s sales tax rate but would allow the county to spend funds it already collects.

Coconino County has a base expenditure limit that was established 44 years ago. It increases annually based on population and the national inflation rate. The county is bumping up against its expenditure limit and is asking voters to increase the limit for the first time, in order to maintain services at their current level.

No organized groups or individuals filed statements opposing any of the three propositions for the voter Publicity Pamphlet. Still, political observers speculate whether voters will be in the mood for incremental tax increases and extending the levies in light of increasing costs of living.

Local civic and business leaders backing the propositions filed 10 or more pro statements for each of the three measures.

Mayor Becky Daggett contributed a personal statement supporting the transit tax increase, noting that the Mountain Line bus service provides mobility to workers, the elderly and students.

This new funding would allow Mountain Line to replace its fleet with zero-emission buses as the current buses age out of service,” she wrote. “Also, clean, convenient bus service helps reduce congestion – particularly through Downtown.”

A local group, Keep Flagstaff Moving, supports Proposition 488, arguing the funding increase will allow Mountain Line to absorb higher operating costs for fuel and salaries, and expand routes and frequency.

Mountain Line has 113 employees and a fleet of 29 buses for nine routes. All but two of the buses are hybrid-electric models. The fleet includes two battery-electric buses, with four more on order, according to Jacki Lenners, Mountain Line deputy general manager.

Annual ridership peaked in 2019 at 2.6 million, dipped sharply in 2021 during the pandemic, and has recovered to about 1.6 million.

Flagstaff Councilman Jim McCarthy said he’s concerned about how voters will react to the transit tax increase. “While it’s not a lot of money, the incremental increase might rub some people the wrong way,” he said.

McCarthy said he anticipates the BBB Tax extension will be approved since it “does a lot of good stuff around town.”

In a statement supporting Proposition 487, Fred Reese, Little America Hotel general manager, said the BBB Tax has supported marketing and promotion of Flagstaff since 1988 to attract domestic and international travelers.

Without this type of outreach for our city, our hotel and other businesses would not survive,” he said.

Hunter Herbert, Downtown Business Alliance director, said the BBB Tax not only helps promote downtown but also “fuels essential services like parks and recreation, tourism and visitor services, beautification, arts and science and economic development.”

Visitors pay an estimated 68% of the BBB Tax, according to research by the Northern Arizona University Economic Policy Institute.

Flagstaff’s current sales tax totals 9.18%, which includes 5.6% for the state, 1.3% for Coconino County and 2.28% for the city. The 2% BBB Tax is collected from customers of restaurants, bars, hotels, vacation rentals and campgrounds.

The BBB Tax revenue is split into five categories to fund parks and recreation, 33%; tourism, 30%; beautification, 20%; economic development, 9.5%; and arts and sciences, 7.5%.

Voter registration closes Oct. 7. Early voting begins and mail-in ballots are sent out Oct. 9. The election is Tuesday, Nov. 5. Polls will be open from 6 a.m. to 7 p.m.   

Early voting sites include the Coconino County Recorder’s Office, Flagstaff Mall, the city halls in Williams, Sedona, Page and Fredonia. Also, the Alta Edison Native American Outreach Center in Tuba City and the Grand Canyon School District Office.

Nov. 1 is the last day to vote early in person. FBN

By Peter Corbett, FBN

Photo by Peter Corbett: Riders board a Mountain Line bus at the Downtown Connection Center at Phoenix Avenue and Mikes Pike.  

Latest article