NEWS RELEASE
For More Information Contact:
Constance Halonen-Wilson
Public Information & Marketing Communications Specialist
(480) 474-5080
chalonen@ajcity.net

Apache Trail and Other Roads in Apache Junction Deteriorating

Declining road conditions not only adversely impact residents and businesses; they also adversely impact revenue generation for the city.

Apache Trail runs through the heart of Apache Junction. It is rich with history and continues to be a staple in the community. Major events are held, veterans are honored and heritage celebrated on Apache Trail. The road also serves as a gateway to many of the businesses. However, it is rapidly deteriorating along with other major roadways throughout Apache Junction. The cost to repair Apache Trail from Meridian to Tomahawk in its current condition is approximately $3 million; that number jumps to $12 million in 2020.

Apache JunctionHistorically, the funding for roads in Apache Junction came from HURF (Highway User Revenue Funds). HURF comes from the gas tax which is collected by the state and proportionately distributed to municipalities along with the revenue allocated to the city as part of the ½ cent Pinal County sales tax. HURF monies plummeted during the recession with no drastic recovery anticipated anytime soon. Additionally, the state began sweeping HURF to balance their budgets, which left local municipalities struggling. Since 2007, HURF has decreased from $7.3 million to $3.8 million in Apache Junction.

With diminished HURF monies, a supplemental revenue source must be established to fix and maintain roadways. The Apache Junction City Council will consider increasing the city sales tax. The city of Apache Junction does not have a property tax and as a result the majority of the budget is funded through sales tax. The current total sales tax rate is 8.9%, of which the city of Apache Junction receives 2.2%. The state receives 5.6% and Pinal County receives 1.1%. For example, if an individual spends $100 in Apache Junction, the state receives $5.60, the county receives $1.10 and Apache Junction currently receives $2.20. A .2% city sales tax increase would result in Apache Junction receiving $2.40 in the previous example (a $0.20 increase per $100).

Approximately $500,000 would be generated per year with a .1% increase and a .2% increase would generate approximately $1,000,000 per year. If Council increases the sales tax, all funds generated from the increase will go directly to pay for roadway improvements. The first major roadway improvement would be Apache Trail, which would be repaved from Meridian Road to Idaho Road.

Roads are the city’s largest investment, and they are slowly declining. The City of Apache Junction relies heavily on sales tax, sales tax generated by many of the businesses along Apache Trail. As a result, Apache Trail’s road condition not only adversely impacts residents and businesses, it also adversely impacts revenue generation for the City. The negative economic impact of declining roads, to both the city and its resident, cannot be overstated. Declining roads are bad for business and bad for your car.

For more information, please contact Apache Junction’s Public Information & Marketing Communications Specialist at (480) 474 – 5080 or chalonen@ajcity.net.

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