11/24/2009 2:47:00 PM Recession blamed for incomplete Morse Ave. project Turbulent budget puts Morse Avenue improvements on the back burner
Patrick Whitehurst/WGCN
The corner of Rodeo Road and Airport Road, where city officials plan to place the Morse Avenue extension. The historic Cureton house, once located on the lot, was torn down during the summer to make way for the extension.
WILLIAMS - Officials with the city of Williams said the extension to Morse Avenue will continue, but not until the local economy begins to show signs of improvement.
Money for the road extension, totaling around $800,000 in Greater Arizona Development Authority (GADA) funds, has since been used in other areas to help offset a weak local economy. In particular, funds have been used to strengthen the city's own budgetary shortfalls, said Williams Finance Director and interim City Manager Joe Duffy.
"Of the $2.5 million that we budgeted from GADA, half was going to go to Country Club Road, which we did that project, and the other half was going to be either for the Frontage Road or Morse Avenue," Duffy said.
Council members opted to purse the Morse Avenue development when right-of-way concerns arose on the Frontage Road project.
"Morse Avenue is now the project that we are going to use the funds for," Duffy said. "The next capital project that we undertake will be Morse Avenue. We are hoping to see signs of improvement in the economy as early as this winter and early spring. We're hoping the Polar Express does well, that more people come; the numbers so far look really encouraging. We're just hoping that our revenues will flatten out and equal what we had last year. Once that happens and we're confident that the economy is turning around, then we'll be willing to spend money on Morse Avenue."
The Morse Avenue project, when finished, will result in a paved road near the Taco Bell/Kentucky Fried Chicken restaurant to the corner of Rodeo and Airport Road near Old Trails True Value. The project will also align the road near the McDonalds restaurant and add improvements to Humboldt Street.
As soon as funds became available, he said work would likely begin on the project.
"It will just make it a really nice road," Duffy said. "It will really make a wonderful improvement and take a lot of traffic off Edison as it comes around to Airport Road. It's critically important for our economic development and our future plans."
The Morse Avenue project is estimated at $629,000. The Humboldt Street portion of the project is estimated at $130,000. Cost for the total project is about $760,000, according to engineering estimates. Construction bids will be sought at a later date.
Williams Mayor John Moore said that, while it is an important extension, completion of the project will depend on funding.
"As soon as the funding is available we'll be working on the road," Moore said. "The city is doing like a lot of people have to do right now. We're pinching our pennies and watching the economy real close."
Moore said the project has the potential to open up a lot of business opportunities in the area when it is completed.
"I think Morse Avenue is one of the most important street projects we can complete," Moore said.
According to Duffy, the city faced a cash balance of $2,600,000 in June of 2008. Of that amount, $2.5 million were GADA funds, Duffy said. For the current fiscal year, which ended in June, the city had roughly $686,000 in the bank.
"We ended up with less cash than we were planning on having in the bank at the end of the year," Duffy said. "So we had to spend more funds than what we had available. We ended up having to use a portion of the GADA funds just to get through the end of the fiscal year."
The current recession, while showing some signs of improvement, has had a devastating effect on the local economy. City revenue has fallen far short of projected amounts, Duffy said. Sales tax, projected at $3,775,000, came in at $3,428,000, according to city estimates. Other projections, including a total of $683,000 in bed, board and booze tax, came in far shorter than expected. The tax came in at $652,000. Water revenue also dropped to $861,000 from a projected $1,030,000.
Projections, Duffy said, were based on historical figures.
"We look at trends of a monthly basis," Duffy said. "We get estimates from the state of Arizona, the League of Cities and Towns, plus we prepare our own estimates based on the data that we have available at the time as we're preparing our budgets. Our mayor and council should be commended for showing great leadership, and making sound decisions, in dealing with the most difficult financial crisis in recent memory. We are better off than many communities because of the conservative approach council takes to running the community."
