During a meeting of the Holbrook City Council on Sept. 11, Navajo County Manager Glenn Kephart and Assistant County Manager Bryan Layton provided a follow-up presentation on the proposed jail district tax, Proposition 419, which will be on the November ballot for Navajo County residents.
According to Layton, the county has taken measures since the recession of 2008 to maintain services for its citizens with minimal impact to those employed by the county and up until last year was able to do so. Last year the county was forced to close the juvenile detention facility, requiring all incarcerated youth to be transported to Florence. The Navajo County Attorney Child Support Program was also closed, leading to potential delays in enforcement action.
These closures came as the result of a $200,000 loss in property taxes due to the closure of one of the units at Cholla Power Plant in Joseph City, an $11 million loss in sales tax during the recession, $5 million taken from the state cost shifts, a 254 percent increase in PSPRS (Public Safety Personnel Retirement System) costs for the county and a 40 percent increase in health care costs.
To battle the loss in funding the county cut 16 percent of its job force, reduced capital item replacement by 75 percent and implemented more smart technology to lessen the workload and improve efficiency.
Now, with the anticipated closure of all coal fired plants in the region that affect Navajo County, whether it’s Cholla plant or the Navajo Generating Station that is located in Page, the county is facing even greater financial impacts. While NGS is not within Navajo County, many if its workers are and their money contributes to the sales tax collected by the county. In addition, the Kayenta Coal Mine is the coal provider for the plant and that is within the county.
With the county already running a tight operation, the additional funding loss would have a significant impact. Layton speculates that it would result in loss of 20 to 25 percent of county jobs and a significant impact to public safety. By his estimations it would mean a $1.6 million loss in county sales tax and state shared sales tax, $925,000 lost property taxes, coupled with an additional $600,000 cost increase in state retirement plans.
“Imagine 100 people delivering all of your services and now reducing that to 60 to 65. That’s the position we’re in,” Layton said, adding that if it weren’t for the closure of coal fired power plants, the county would be in a good position.
The proposed jail district tax would be one-third of a cent per dollar spent on anything sold within Navajo County. Layton was quick to point out that this tax would not increase property tax and that it is not intended for jail construction. “We can increase the property tax to the max levy and in a year that would bring in maybe $130,000 to $140,000. So when you look at a deficit of $2.5 million, property tax is just not a viable solution,” stated Layton.
If approved, the tax would benefit communities by eliminating jail fees that the municipalities currently pay. That would mean $114,511 in savings for Winslow, $131,019 for Holbrook, and $18,513 for Snowflake-Taylor, as well as $113,093 for Show Low and $48,386 for Pinetop/Lakeside. There are eight other counties within the state that have implemented a jail district.
Layton also pointed out that if approved, the one-third of a cent tax can not be increased. He noted that there are approximately 112,000 people living in the county and 20,000 to 40,000 are property owners. “Currently the jail and its functions are borne by property owners. As a sales tax, we get the opportunity to allow visitors to help chip in and pay,”
Without the additional funding it is projected that there will be longer response times for law enforcement and an inability to provide 24-hour patrol with an anticipated loss of eight deputies as well as a risk for officer safety not only for the county but local municipal officers with backup not readily available. Lower level crimes would not be investigated as thoroughly due to the additional workload and there would be less of a law enforcement presence at local schools.
According to Layton, the lack of funds would mean cutting back on the drug and alcohol programs used to reduce recidivism in the jail. It would also put programs at risk that allow inmates to advance in their education by obtaining their GED that could lead to viable employment and again reduce recidivism. The Veterans Court that provides services to those veterans that have returned home from conflict abroad and need help with their unique needs if they enter into the court system would also be eliminated.
It is estimated that the jail district would bring in an additional $2.5 million in revenues that is not dependent on coal and would allow services to continue throughout the county. The funds would also free up other county funds that would be redirected from the jail to maintain services within the county.
