City lists 'what ifs' for hospitality tax

  A number of amenities residents now enjoy, like the use of the Yuma Civic Center and activities at the Ray Kroc Baseball Complex, will disappear if city voters reject a measure to renew the 2 percent hospitality tax.

  The water would be turned off at Caballero Park and Friendship Park, many popular community events would cease and there would be no construction of new city parks and recreation facilities in the foreseeable future.

  "This isn't meant to be a threat," said Greg Hyland, city of Yuma spokesman. "It's just reality."

  He said as the council begins to tackle the budget for the new year, staff prepared a "what if" list of city facilities, programs and projects that rely on funding from the special tax. The list outlines what would be lost if the 2 percent tax sunsets on June 30 and what new park projects the city can provide if the tax is renewed.

  The list also lets the public know the impact the tax has on the community and what hangs in the balance as voters weigh whether to extend the tax when they go to the polls May 19, Hyland said.

  "The citizens told us they want to hear where the money goes. They wanted to know what the plans are and what would go away if it's not funded."

  The tax levied on hotels, restaurants and bars raises approximately $4.5 million a year that currently is earmarked for the James P. Deyo Complex, which is the civic center, baseball complex and Desert Hills Municipal Golf Course. It also helps fund Yuma Crossing and the promotion of tourism.

  The ballot question asks voters to renew the tax to June 30, 2024, and authorize the scope of the revenue to include parks citywide and the two wetlands projects along the riverfront.

  Voters rejected an earlier measure to renew and increase the tax to 2.5 percent. Others have spoken out against the new measure, saying that given the current economy, now is not a good time for the tax.

  Some have suggested parks and recreation could be paid for out of the city's general fund. That's not a feasible option especially now, Hyland said, with the economic downturn that has the city looking for ways to cut costs as its revenue stream declines.

  By far the largest portion of the 2 percent tax revenue now goes to fund the Deyo Complex. Without it, Hyland said, the civic center will go dark and the baseball complex would be chained shut.

  The civic center hosted 1,387 events in the last year, such as the Yuma Area Prayer Breakfast, Yuma Rotary Club Walt Kammann Sausage Fry, Travelogue film series, Yuma Southwest Ag Summit, Yuma Home Show and Yuma Play Day as well as various exhibitions, conferences, clinics, seminars, holiday parties, banquets, weddings and funerals.

  Ray Kroc Baseball Complex hosts the Golden Baseball League, Winter League and other sports and community activities, including Midnight at the Oasis, Holiday Tower Lighting, Independence Day Flag Raising, Colorado River Crossing Balloon Festival Balloon Glow, Yuma Boys Baseball League, Babe Ruth Baseball and Yuma Scorpions.

  Their closures would affect thousands of people of all ages, Hyland said.

  For now the golf course would remain open as fees pay for its operation and maintenance, he said, but there would be no funding for enhancements.

  Without the tax revenue that now goes to Yuma Crossing, it's likely the state will have to close the Quartermaster Depot State Historic Park. And there would be no funding to continue offering such downtown events as the Electric Lite Parade now put on by Heritage Festivals.

  In addition, loss of the tax's funding to promote tourism would have an economic impact on the community, said Bob Ingram, executive director of the Yuma Visitors Bureau.

  Last year, tourism brought $590 million to Yuma County and resulted in 6,300 jobs, according to the Arizona Office of Tourism.

  "We not only would lose nearly $600 million and additional taxes but also jobs," Ingram said. He acknowledged that YVB's efforts aren't the only reason people visit Yuma. But even if it's only a very conservative 1 percent, that results in $6 million - a 10-to-1 return on the investment to promote tourism.

  On the other hand, renewing the hospitality tax would not only preserve these amenities and revenue-generating programs, but also provide funding for future parks and recreational facilities citizens have said they want, Hyland said.

  "There are some really cool things on this list," he said, such as a new athletic facilities and park near Arizona Western College, a 120-acre Yuma East Regional Park off 32nd Street and Avenue 6E, a new 13-acre park in the Yuma Valley, completion of the West Wetlands Park and enhancements to the East Wetlands Park.

  "We need to prepare for all outcomes when developing our budget for next year," said City Administrator Mark Watson. "That's why I've made these recommendations to the city council.

  "In the end, it will be up to the city of Yuma voters to tell us if they want these new amenities added to expand our parks and recreation offerings, or if they would like us to reduce the facilities and services we offer our community."

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Joyce Lobeck can be reached at jlobeck@yumasun.com or 539-6853.