Tempe Town Lake

Source

September 24, 2008 - 6:19PM

Hallman rips state at State of the City address

Mike Branom, Tribune

Tempe Mayor Hugh Hallman believes his city is well-positioned to ride out any economic slump. He just wishes Arizona's government weren't making matters worse.

During his State of the City address, delivered at The Buttes resort on Wednesday morning, Hallman roasted state leaders for their lack of planning and how that affects cities, towns and counties.

"With the state in difficult financial shape, I am reminded that we're in a boat filling with water; Tempe has one of the highest seats, but the boat is still filling," Hallman said.

"We need state leaders to learn, as we have, that it is better to fix things that cause holes in the boat than it is always to be bailing water."

During the last legislative session, lawmakers decided that Arizona's municipalities should pay about $30 million into the state General Fund. Also, cities and towns were asked to pay more for use of the Department of Public Safety crime lab.

Tempe officials had said the total cost to the city would be almost $728,000. However, the state is now paying more for the lab while litigation is expected for what Hallman labeled "reverse revenue sharing."

Despite these obstacles, Hallman said, Tempe is a safe place (crime rate down 22 percent since 2003) that is well-run (AAA bond rating) and friendly to business (commercial vacancy rate among lowest in the Valley).

Hallman acknowledged the city does face financial trouble but is facing it head-on - unlike the state.

A shortfall in sales tax revenue could create a $7 million deficit in Tempe's budget, so city officials are looking at reducing its total staffing of 1,400 employees by 75 to 100 positions. Attrition, not layoffs, likely will achieve this goal, Hallman said.

Hallman credited the city's success to its emphasis on core principles, such as public safety, transportation and responsible stewardship of the public's money.