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On Thursday, January 19, 2023, the Prescott Chamber of Commerce held its annual Chamber Meeting where the city of Prescott’s Mayor Goode delivered his State of the City Address.
Mayor Goode State of the City Agenda included:
- Welcome New Council Members
- Boards & Commissions
- Water Policy, Charter Amendment, and General Plan Commissions
- Where Are We Now
- Where Are We going
- Announcements
Mayor Goode began his State of the City address by first welcoming council members to the Prescott City Council roles. Brandon Montoya was announced as Mayor Pro Tem who stepped into the role after Cathey Rusing, who served during 2022. Goode also acknowledged Connie Cantelme who was appointed to Prescott City Council to fill the empty seat through the end of 2023.
Boards and Commissions
Mayor Goode reviewed the 28 boards and commissions in place and some details the public should know about them. All board and commission positions have limited terms and applications for reappointment and open seats are approved by the Prescott City Council. The city received 78 applications for reappointments and open seats in 2022. Applications for open positions are accepted on an ongoing basis.
The City does regularly announce open seats for boards and commissions and interested residents are encouraged to visit https://www.prescott-az.gov/city-management/boards-commissions/vacancies/ to view open seats and to apply.
Goode was pleased to announce new committee the Workforce Housing Committee. In addition, he reviewed the Mayor’s Ad Hoc Committees including:
- Water Policy Review & Monitoring (detailed description below)
- Charter Amendments Review (detailed description below)
- General Plan Review (detailed de
- Veterans Commission
- Airport Terminal Art Committee
- Facilities Optimization Property Utilization (FOPU) Committee
Water Policy Review & Monitoring Commission
The primary purpose of the water policy review and monitoring commission shall be to track the effectiveness of the newly adopted 2022 Water Management Policy. Additionally, the commission will determine how the water policy is impacting the larger Prescott AMA, make recommendations to the City council regarding how additional stakeholders (County & Other Municipalities) could adopt or expand the city policy into their jurisdictions, and make quarterly presentations to the council regarding their findings for potential revisions to the policy, conservation policy, and rebates.
Water Policy
- 2022 Revised Policy has been in place since April 2022. Recently reaffirmed by Council for next 6 months.
- Revisions seek to restore more conservation and moderate impacts on water portfolio.
- Water Policy & Development are essentially connected.
Charter Amendment Review Commission
The Prescott City Charter was last updated and adopted in November 2011 and is in need of updates and revisions. The purpose of the Charter Amendment Review Commission shall be to conduct a thorough review of the existing city charter and work closely with staff to select sections of the charter to be updated and make proposals to the council for approval to be added to the primary election ballot in 2023.
General Plan Review Commission
The General Plan was last adopted in 2015 and must be updated every 10 years in accordance with Arizona Revised Statutes. The purpose of this commission shall be to coordinate with city staff for updates to the City of Prescott General Plan. Citizen participation is required for the creation of a plan to be adopted by the City Council for the General Plan updates which will then be approved by voters by 2025.
The members of this committee are Don Michelman, Deborah Thalasitis, Ted Gambogi, Gary Worob, Andre Carman, James McCarver, Ralph Hess, Mary Fredrickson, Jim Huffman, Rod Moyer. And Terry Sapio. Council Liaisons are Eric Moore and Brandon Montoya.
Overall Financial Health of Prescott
In his address, Mayor Goode discussed the overall financial health of Prescott including revenue items (sales tax, bed tax, taxable activity) and expenditures (PSPRS, property acquisition, regional park). The reports provided during his speech were numbers from Fiscal Year 2023 through October.
City of Prescott Taxable Activity Report by Fiscal Year through the Month of October
| FY 2023 | % Change | FY 2022 | % Change | FY 2021 | % Change | FY 2020 | |
| Retail Sales | 524,792,139 | 0.94% | 519,882,282 | 10.34% | 471,147,551 | 14.19% | 412,594,533 |
| Construction | 64,790,497 | 18.21% | 54,80,388 | -32.99% | 81,788,077 | 23.33% | 66,314,139 |
| Rentals | 65,152,319 | 4.86% | 62,132,180 | 9.23% | 56,879,754 | -19.33% | 70,509,142 |
| Restaurants and Bars | 53,768,989 | 5.46% | 50,982,871 | 25.87% | 40,503,150 | -11.60% | 45,818,855 |
| Other Retail Sales | 29,450,922 | 7.78% | 27,325,259 | 28.28% | 21,301,897 | 572.62z5 | 3,167,020 |
| Hotels and Motels | 20,708,860 | 2.70% | 20,165,003 | 44.45% | 13,959,472 | -3.28% | 14,433,005 |
| All Other Businesses * | 12,889,002 | 7.85% | 11,950,919 | -0.66% | 12,030,847 | -4.86% | 12,645,691 |
| 771,552,728 | 3.25% | 747,245,902 | 7.12% | 697,610,748 | 11.53% | 625,482,385 |
*All Other Businesses includes services such as printing, advertising, transportation, and amusement.
City of Prescott Transient Lodging (Bed) Tax Collection Fiscal Year 2023 through October
| FY 2023 | % Change | FY 2022 | % Change | FY 2021 | % Change | FY 2020 | |
| July | 170,074 | 8.33% | 156,996 | 70.75% | 91,946 | -18.23% | 112,452 |
| August | 133,833 | -0.20% | 134,107 | 37.77% | 97,338 | -5.95% | 103,491 |
| September | 143,734 | 3.64% | 138,684 | 37.16% | 101,108 | 4.59% | 96,675 |
| October | 150,067 | -2.23% | 153,484 | 33.85% | 114,669 | 11.32% | 103,013 |
| Subtotal | 597,709 | +2.48% | 583,271 | +44% | 40,561 | -2.5% | 415,631 |
| November | 116,831 | 57.88% | 74,001 | 4.42% | 70,868 | ||
| December | 121,670 | 70.40% | 71,403 | -4.52% | 74,782 | ||
| January | 107,164 | 40.81% | 76,104 | 14.85% | 66,265 | ||
| February | 109,152 | 49.50% | 73,013 | -6.89% | 78,412 | ||
| March | 144,676 | 25.95% | 114,868 | 117.37% | 52,845 | ||
| April | 159,393 | 18.46% | 134,557 | 656.15% | 17,795 | ||
| May | 155,423 | 9.45% | 142,008 | 169.20% | 52,751 | ||
| June | 146,827 | 5.97% | 138,555 | 63.37% | 84,809 |
Sales Tax Reduction
Effective January 1, 2023, the City of Prescott’s transaction privilege (sales) tax decreased from 2.75% to 2%. The combined tax rate (State, County, & City) for Prescott decreased from 9.10% to 8.35%.
The Prescott City Council voted on October 11, 2022, to adopt Ordinance No. 2022-1801 eliminating the 0.75% transaction privilege tax dedicated to paying down the City’s unfunded liability in the Arizona Public Safety Personnel Retirement System (PSPRS).
The current tax rate has been in place since January 1, 2018, after citizens voted for Proposition 443 to increase the tax by three-quarters of one percent. The increase was dedicated to paying down the City’s unfunded pension liability for public safety personnel, which at the time was around $85 Million. Proposition 443 called for the tax to sunset after 10 years, or if the unfunded liability dropped below $1.5 Million.
Residential, Comercial, and Healthcare Development
Mayor Goode addressed several development projects and the status of each.
Residential Development:
Deep Well Ranch
- Saddlewood – 297 lots – 99% Built
- Westwood – 271 lots – 42% Built
- South Ranch Phases 1, 2, 3 – 359 lots
- Hidden Hills – 158 lots
Granite Dells Estates
- Phase 1A – 208 Lots – 99% Built
- Phase 1D -11 Lots – 28% Built
- Phase 2 – 257 Lots -99% Built
- Phase 3 – 387 Lots – 3% Built
- Five more phases platted, not built
Multi-Family Units Developed in the City
- Palmer Apartments 209 Units
- Gateway Apartments 144 Units
- Montezuma Heights 144 Units
- Havenly Rentals in Granite Dells Estates 200 Unites
- South Ranch Rentals 231 Units – Great Streets Project Single Family Detached
Commercial Development
- FedEx New Facility 220K sq. ft. now open
- Espire Sports Complex at former Sears – now open
- Prescott Gateway Mall New Owner
Proposed:
- SAFE Complex proposed at Airport. P3 with Embry Riddle
- 82,000 SF spec manufacturing facility proposed at air park
- 28 parcels sold and 15 in escrow at air park over past two years
Healthcare Development
- YRMC Urgent Care (Lee Blvd & Hwy 69)
- Exceptional Healthcare ER (Hwy 69)
- AZ oncology (Granite Dells Estates)
- Banner Hospital (Willow Creek – On the drawing board)
- YRMC North – Hwy 89 – TBA
What to Look for in 2023
- The new City Hall should be fully moved into by the end of Quarter 2 of 2023.
- Old City Hall:A Request for Proposal has been put out for the old City Hall. Developer selected. Purchaser agreement and due diligence in progress.
- Sundog Connector: CYMPO Continues planning
- Airport Runway Expansion: FAA Response pending property acquisition appraisals. According to Mayor Goode, the Prescott Regional Airport continues to remain a priority with the FAA.
- Airport Vicinity Overlay Zone: Partially established with ongoing discussion.
- Public Safety: Look for new fire stations, additional vehicles, and active recruitment and retention efforts for personnel.
- Key City Leadership: City Manager’s last day is Feb 14, 2023. A national search is underway.
- Tyler Goodman has been named interim City Manager
- Community Development Director Recruiting in progress
- Positions Filled in 2022: New Fire Chief, City Attorney, and Public Works Director.
- Granite Creek Corridor: Work has begun. Expect completion Spring 2023.
- Glassford Dells Regional Park Creation: IGA in place
- Proposed Charter Amendments: Goal for November Election.
Watch the full 2023 Annual Prescott Chamber of Commerce Update and Mayoral Address!
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