I get questions from time to time about how much the operating of the Town Lake costs. Its a difficult and touchy question that is sometimes spoke about in generalities, instead of specifics. That said, just because a question is difficult or touchy, doesnt mean it shouldnt be answered. Thats democracy. First, some background. There is a Lake District and the property owners along the lake pay a fee to cover some of lake operations, but not the build-out. The lake, when it was planned 15 years ago, was decided that it would not pay for itself entirely; that 60% would be city money for operations, and 40% the lake fee from private businesses for operations. That was done WAY before most of council was on council. Also, there is the branding and tourism value it brings to Tempe; it is the 2nd most visited location in the Arizona behind only the Grand Canyon. Not to mention, increased property taxes for larger and nicer development that would not have otherwise happened along a dry riverbed. Now, all that said....the #s from staff. In 2013/14 the cost to operate the lake was $2,706,446. The private sector paid 17.0% of those costs, or $460,477. Tempe paid 53.3% of those costs as a property owner, or $1,441,678. Tempe paid an additional 29.7%, or $804,291, to cover the shortage from vacant properties that pay the interim O&M rate, or 20% of their full assessment. Combined the City of Tempe paid 83% of the assessments. Once the CFD is built out the private properties will cover 60% of the costs, while Tempe will have 40%.
Posted on: Wed, 24 Dec 2014 18:17:19 +0000
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