/wp:paragraph
wp:paragraph
Navajo County and City of Winslow officials hosted another town hall meeting regarding Proposition 421 last week. The goal of the meeting was to further inform citizens of the language of the proposition and to explain what officials believe the magnitude of loss that will be experienced by the closure of the Peabody Mine at Kayenta and Cholla Power Plant. It was an open forum meeting, with questions from attendees welcomed.
/wp:paragraph
wp:paragraph
Navajo County Supervisor Jesse Thompson opened the presentation, “This is an opportunity to come together and face the challenge of losing money due to these closures. If we don’t address the budget shortage, that would mean that it will lessen the services that we can provide.”
/wp:paragraph
wp:paragraph
According to Navajo County Manager Glenn Kephart, the Peabody Mine generates about $1.7 million in transaction privilege tax from the coal mine and the mine is in the process of shutting down. “We lose another $900,000 in property tax when Cholla and the mine both close.”
/wp:paragraph
wp:paragraph
Navajo County Sheriff David Clouse explained that without the passage of a jail tax, there will be cuts to personnel that would impact the city as well. “We partner with the Winslow Police Department often whether at special events or to assist in other ways. Its harder and harder to commit to doing those types of things with fewer and fewer people.”
/wp:paragraph
wp:paragraph
Winslow Police Chief Dan Brown added that the creation of the jail tax would save the City of Winslow approximately $328,000 a year and $6.5 million over the 20-year term of the tax. “That is a conservative estimate, because we also have to pay the medical fees for inmates.”
/wp:paragraph
wp:paragraph
Mayor Tom McCauley added, “Saving that money gives us the opportunity to get people the help that they need and possibly hire more police officers. Public safety is a priority for our town.”
/wp:paragraph
wp:paragraph
Kephart added, “Currently we spend in excess of $5 million to operate the jail. That money comes from property tax, state shared revenue, and existing taxes. It all comes out of our general fund. Once we create a jail district, the money that comes in goes to funding the jail and the money that we are currently using and sending there comes back to the general fund and is able to preserve existing services like staff in various county offices. It is important to let people know that we are not building a new jail, this is to keep basic county services intact.
/wp:paragraph
wp:paragraph
“The Peabody Coal Mine is closing at the end of December and as a result, the Navajo Generating Station is closing as well. We have received notice that lay offs will begin in two weeks. That means over 300 people will be out of a job in a very short period of time. We have known for some time that these things were going to happen, and we have known that the county is going to lose $2.5 million in revenue each year. The funding of a special taxing district is a one third cent sales tax that applies to things that you currently buy and are taxed on. It doesn’t apply to food, prescriptions or gasoline.”
/wp:paragraph
wp:paragraph
Not only are those employed by the mine and the generating stations facing unemployment, but Kephart said, “We are looking at about a 25 percent job loss in the county offices as well.”
/wp:paragraph
wp:paragraph
Among those job losses will likely include prosecutors from the county attorney’s office. County Attorney Brad Carlyon said, “If 421 doesn’t pass, I lose at least two more attorneys and the staff that goes with them. It could come down to the City of Winslow having to set up a court for itself. The cost associated with that would be astronomical. It would cost $200,000 or more to pay the staff required to run a court and that doesn’t include your jail fees.”
/wp:paragraph
wp:paragraph
Winslow resident Lou Slonczewski asked for clarity on the proposition. “I am curious because the name jail district in my mind says that the money that this tax is going to produce should be used exclusively for the law enforcement and courts and stuff of that nature. You mentioned that the Board of Supervisors would be overseeing that money. Can they vote to use monies from that fund and place it somewhere else?”
/wp:paragraph
wp:paragraph
Kephart answered distinctly, “No. That would be in violation of the law.”
/wp:paragraph
wp:paragraph
Carlyon added, “We have a jail that costs about $5.3 million a year now. That $5.3 million comes out of our general fund. If Prop. 421 passes, the jail district will raise $2.1 million and it has to go in to the jail. What that does is allows the general fund to only have to fund $3.2 million. So that frees up money from the general fund to fund the county.”
/wp:paragraph
wp:paragraph
Joseph City resident, Brian Brooks questioned county officials as well. “What is the actual amount that you anticipate as an income level for this tax increase?”
/wp:paragraph
wp:paragraph
Kephart answered, “It fluctuates with the economy, of course. With the loss of the $1.6 million from the sale of the coal, we are looking at generating about $3.5 million.”
/wp:paragraph
wp:paragraph
Brooks continued, “All I have heard is that if this doesn’t pass, and you don’t get that money, you’re going to cut positions. I want to know if you have done due diligence to see where else we can save money.”
/wp:paragraph
wp:paragraph
“We looked at 17 different options and revenue sources,” said Kephart. “The only one that is sustainable and reliable is the creation of a jail tax. It is a one third cent increase on each dollar you spend on things you are already buying.”
/wp:paragraph
wp:paragraph
Information on Proposition 421 is available at the county website, www.navajocountyaz.gov. Early voting has already begun and will run until election day, August 27.
/wp:paragraph
