The City of Phoenix has issued a “Truth in Taxation,” notification in which residents are advised that the City of Phoenix intends to raise the primary property taxes over last year’s level by 4.2 percent. According to the notice the proposed tax increase will cause the primary taxes on a $100,000 home to increase from $128.26 to $133.59.
The proposal is set to be heard for the first time on Tuesday June 13. A public hearing will be held on the matter on June 21 at 2:30 PM at the Phoenix City Council chambers.
Phoenix City Councilman Sal DiCiccio criticized the plan which he says will increase the cost of City pension debt by $2.3 billion. DiCiccio calls it “the most fiscally irresponsible move ever by the city of Phoenix.”
According to a statement released by DiCiccio, the increase would allow the City of Phoenix “to pad the general fund budget by between $15 and $30 million per year, but because the plan is essentially putting the future of the City of Phoenix on a high-interest credit card, those relatively meager short-term benefits would be swamped by long term costs.”
DiCiccio argues that the increase would commit the City of Phoenix to increased spending that is roughly double the entire current general fund budget – is being brought forward with virtually no public input.
“I find it disturbing that the city manager would create such a fiscal nightmare; be willing to put this burden on police and fire while refusing to do this to his own pension, is setting up the next city manager for failure, and is putting an enormous burden on the taxpayers – all with so little transparency,” said DiCiccio.
“The first thing any financial planner will tell you is, ‘start by paying off your high-interest debt”. This move by the city manager is exactly the opposite: Phoenix is using high interest debt to pay off a low-interest loan. It’s insanity. Think about this: if a person cannot control their own personal finances, would you recommend they increase their credit debt? That is what the staff and politicians are recommending today. But in this case, they won’t do it to themselves they want to stick it to police and fire, and the taxpayers,” said DiCiccio.