http://www.azcentral.com/community/mesa/articles/0506mr-donors0506Z11.html

7 of 10 dollars for taxes outside funds Rawles warns it's coming from 'elite'

Justin Juozapavicius The Arizona Republic May. 6, 2006 12:00 AM

More than seven out of every 10 dollars contributed to push Mesa's first property tax since 1945 and a half-cent sales tax is coming from outside the city, an Arizona Republic review of campaign contribution filings shows.

With a big assist from mall developers, national companies holding contracts at City Hall and home builders, the campaign has raked in about $455,850 - at least $334,150 of it from outside the city limits.

Additionally, a review of nearly 270 individual contributions to the pro-tax campaign showed at least one-third coming from former mayors, city councilmen, school officials and retired and current city employees, among others connected in some way to City Hall.

"The elite will spend hundreds of thousands of their own money to get their hands on hundreds of millions of your money," warned Councilman Tom Rawles, who has rallied against the taxes.

The analysis also found at least a dozen donors that have either built multimillion-dollar projects for Mesa, such as water treatment plants and shopping malls, or hold lucrative contracts with the city.

Critics of the taxes, which voters will decide May 16, say the findings prove bureaucrats and businesses are bankrolling the campaign to get rich at the public trough. If both taxes pass, Mesa could reap at least $70 million in new revenue annually, an amount some residents say is far too much.

Resident Jan Hibbard, treasurer of one of several groups opposing the property tax, said many businesses are giving for selfish reasons.

"They will not invest money that will not make them a profit," Hibbard said. "Come on, that's capitalism at its best."

But the "Yes for Mesa" side dismissed accusations the campaign is a get-rich attempt by businesses supporting the taxes, and said many of the outside companies have employees who live and work in Mesa.

"Where the check gets written from is absolutely irrelevant," said Chuck Coughlin, a consultant with the "Yes" camp. "That's a myopic view of the situation."

Vice Mayor Claudia Walters, who supports both taxes, questioned why the origin of the campaign funds was so "eyebrow-raising."

"People give to campaigns because it benefits them, companies do the same thing," Walters said. "That's not news."

David Martin, president of the Arizona Chapter of Associated General Contractors, whose members have kicked in about $100,000 to the campaign, said no matter where the money comes from, Mesa's quality of life is at stake.

"We believe that an investment in Mesa is an investment in Arizona," Martin said. "There is absolutely no quid pro quo."

Some of the findings:

- Houston-based Waste Management, which contributed $2,000 so far, was awarded part of a city contract last fall worth more than $233,000 a year for solid-waste disposal and transfer station disposal services.

- Connecticut-based The Hartford, which gave $2,000, handles deferred compensation programs for some Mesa city employees.

- Phoenix-based Carollo Engineers, which contributed $2,500, helped in the Val Vista Water Treatment Plant expansion in the late 1990s. The plant, which supplies about 40 percent of Mesa's water, is co-owned with Phoenix.

Carollo is also the prime consultant on the nearly $170 million Greenfield Water Reclamation Plant being built in Gilbert. Mesa, Gilbert and Queen Creek are each kicking in money to build the plant.

- FNF Construction Inc., based in Tempe, gave $7,500. The company submitted a bid of $5.8 million last year to build Mesa's largest park-and-ride lot along the Superstition Freeway near Power Road, but the bid was tossed because it exceeded the cost estimate of $3.5 million.

Tax supporters balked at the notion businesses based outside of Mesa were trying to swing the election, citing Wells Fargo as one example of how a national corporation affects the city of 452,000.

The company donated $20,000 from its Minneapolis office, according to campaign reports, but has 13 bank branches in Mesa providing tens of thousands of mortgages and thousands of jobs for Mesa residents, supporters say.

Don Cassano, government and community affairs director for Waste Management of Arizona, said there is "nothing sinister" about his company's contribution.

"We don't have any hidden agenda at all," Cassano said. "The relationship with Mesa is something we would always like to have."

C.B. Hagar, a partner in Carollo and a Mesa resident since 1982, said his firm's work coming from Mesa has nothing to do with a property tax, since the revenue comes from utility bonds.

"I don't know what's in their head," said Hagar, on critics of where the campaign funds are coming from. "I would guess when you're fighting something you try to latch on to anything that would cast aspersions."

Mesa is struggling with a projected $25 million shortfall this year and is looking to cut into more than 100 city services, from closing two museums to draining community swimming pools, to balance its budget.