In light of the challenges from COVID-19 and the fact that Scottsdale’s economy is heavily supported by tourists who went missing for most of the year’s high season, this is a good time to consider what makes the city tick.
To keep property values and amenities high and property taxes low, the city needs to generate economic activity from a variety of sources that produce sales tax revenue.
Basically, 25% of Scottsdale’s area (about 47 square miles) comprises the McDowell Sonoran Preserve, created when residents voted to tax themselves more than 20 years ago, generating nearly $1 billion to buy that land.
Yet, it is not a “bedroom” community from which residents flee during the day and return at night. Data shows that Scottsdale is a self-sufficient, economically strong city. Rather than being a retirement community, it is an employment hub, which is important to support its lifestyle.
Each day, more than 160,000 workers enter Scottsdale to work while less than half that number (Scottsdale residents) leave to work elsewhere in the Valley. In addition, 33,000 Scottsdale citizens live and work in the city. The city has more than 18,000 businesses and 800 restaurants
Healthcare, finance, insurance and technology firms dominate the list of Scottsdale’s largest employers. Tourism, automobile dealerships, retail operations (large and small), entertainment (including restaurants) and construction all add economic activity vital to supporting Scottsdale’s amenities while keeping property taxes low.
By 2055, Scottsdale projects its resident population to be 316,700, according to city planners. Had the city not acquired the Preserve, its population could have been much greater. Although the most substantial growth occurred between 1980 and 2000, Scottsdale has seen a steady increase through today, with an estimated total population of 250,903. There are about 15,000 acres (7.8%) of land not yet developed — out of the total 118,000 acres in the city.
Most residents judge their community by a variety of characteristics. What physical amenities does it provide? How do property taxes compare with those in other communities? How do property values compare? Scottsdale scores well in all of these categories.
Scottsdale’s amenities are unparalleled in any comparable community in the Valley. In addition, it has the highest median housing price of any large Valley city (Phoenix, Mesa, Chandler, Glendale, Gilbert, Tempe and Peoria). Only 3% of the entire city budget is projected to come from property taxes.
Innovative thinking, solid leadership and collaborative actions have stabilized the city. Continued focus on how to sustain and grow its economic viability is critical to keep Scottsdale special.
Jim Derouin is a long-time Scottsdale resident, attorney and member of the City of Scottsdale’s Districting and Charter review task forces.
