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Hayden, HWUSD prepare 2017 budgets without having to ask homeowners for more
At the entrance to the Town of Hayden
Will residents of Hayden and the Hayden-Winkelman Unified School District (HWUSD) face a substantial increase in property taxes for 2017?
Probably not, though the Truth in Taxation notices issued in mid-June indicated enormous hikes in property taxes supporting both legal jurisdictions. What will greatly soften the blow or eliminate any tax hike is the increase in the value of taxable commercial property – much of it involving ASARCO mining properties – being reported within these jurisdictions.
Truth in Taxation notices, which are issued in compliance with Section 15-905-01 of Arizona Revised Statutes, inform taxpayers of how much the primary property tax rate must increase based on rising expenditures by taxing bodies based on property values from the previous fiscal year. On that basis, the portion of property taxes paid to support Hayden town government and its services would have to rise from $214.08 to $600.00 on a home valued at $100,000. Likewise the portion of the property tax paid to support HWUSD would have to rise from $118.74 to $661.54 on a $100,000 home.
However, it has been reported that the value of commercial property in the Hayden and HWUSD jurisdictions for the 2017 fiscal year has nearly tripled, going from $7.9 million to $21.9 million. So to soothe the ire of taxpayers, second notices were issued explaining how the commercial value hikes might ease the need for extra revenues from homeowners.
“As a result, enough revenue from commercial properties will be raised to practically eliminate the need for a tax hike on homeowners in the district,” said HWUSD Superintendent Jeff Gregorich. “If any raise is required, it will be small.”
“With the rise in taxable value for commercial properties, Hayden will be able to hold the line on property taxes,” said Teresa Williams, an accountant working for the Hayden Town Clerk’s Office, “The Hayden portion of the property tax bill will at most rise 30 cents on a $100,000 home for 2017. But is also could be less!”
Final property tax rates will not be officially set until the August 17 meeting of the Gila County Board of Supervisors.
Budgets for both Hayden and HWUSD have long been dependent of property tax revenues secured from ASARCO, the largest and dominant employer in the area. Besides several mining properties, ASARCO, a unit of Grupo Mexico, operates the large copper smelter in Hayden. The smelter is currently being converted to modern technology that will trim its emissions by 90% when completed.
In recent years, the valuation of ASARCO properties in Hayden/Winkelman have fluctuated yearly, as have the property tax revenues paid. This results from a change in Arizona law some years ago where the state no longer sends out a third party, objective assessor to assess these multi-million dollar company properties, but instead allows these companies to self-assess their property. They then report it to the Arizona Department of Revenue (ADR), which either accepts the reported valuation or alters it based on the contents of the required 25-page assessment report. ADR then forwards its valuation to the County Assessor to be included in the local valuations.
The Gila County Board of Supervisors was caught off guard in 2014 when ASARCO’s reported assessed valuation was devalued from $13 million the previous year to only $3 million, prompting the Board to double primary property tax rates in Hayden and HWUSD.
Property taxes did go down the following year when HWUSD paid off the last of a state loan provided by ADR to keep the schools open in 2004, which appeared on tax bills as a secondary property tax assessment.
And now with reports of commercial property values increasing in the Hayden/Winkelman area, property taxes are likely to hold steady in 2017 – should these reports from assorted second hand sources ranging from the Gila County School Superintendent’s Office and the County Board of Supervisors.
As of June 27, Copper Basin News has not secured verification from neither ADR nor ASARCO.
But belief in the increased commercial valuations is widespread.
“Now that HWUSD has survived the worst of times, the increased tax revenues coming from the higher commercial property valuations will enable us to invest in some long overdue necessities for providing a quality education,” Superintendent Gregorich said. “We can finally raise salaries of existing teachers, and offer competitive starting salaries to attract teachers skilled in English and Mathematics long needed so that we can provide instruction equal to that offered in the Valley.
“HWUSD also can upgrade the technology in our classrooms. Our computers are ancient by current standards,” he added. “And we definitely need new school buses.
“Coupled with funds promised by Proposition 123, HWUSD can improve the education we offer without having to increase our portion of the local property tax,” Gregorich noted.
Citizens wishing to offer comments on the proposed 2017 property tax levels can do so at two public hearings.
For HWUSD, the hearing is set for 5:30 p.m. on July 6 at the Governing Board Room, 824 Thorne Ave., Winkelman.
For the Town of Hayden, the hearing is set for 5:30 p.m. on July 14 at the Hayden Town Hall, 520 Velasco Ave., Hayden.
Information obtained at these hearings will be considered by the Gila County Accessor’s Office, which will draft the property tax budget recommendation. The Gila County Board of Supervisors will have the final say on property tax levels when it votes at its August 17 meeting.
James J. Hodl is a career journalist who has worked for newspapers, magazines and trade journals. A graduate of Southern Illinois University with a Bachelor of Science degree in Journalism, Hodl began his career as a reporter with the Palatine (IL) Herald and the Morton Grove (IL) Review before becoming editor of the trade publication Appliance Service News. In recent years, Hodl has had articles published in Consumers Digest, Good Housekeeping, Home Remodeling, Kitchens & Baths and Salute; and has contributed to trade publications serving the home furnishings, restaurant and casino markets. A native of Chicago, Hodl relocated to San Tan Valley in 2013.
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