Q: What is the outlook for our regional economy?
A: For most local governments, property tax revenue is important. In Coconino County, while our property tax revenue is important, our sales tax is also very important. We have a very vibrant economy that provides the sales tax revenue that we need as an organization to provide services. And while our region does fairly well just from the tourism and the attractions that we have here, it’s also prone to what’s happening in the larger economy. The Great Recession in 2007 and 2008 was really devastating. When COVID occurred, the world economy was impacted, so for the County, everything was just frozen in terms of spending because we did not know how deep the economic impact was going to be. Luckily, it did not go as deep as anticipated, and the recovery has been quick.
But we know that at some point, the economy is going to be shifting. The big question going forward is will there be a recession. Recently, we had an employee survey at the County where we asked our employees, what are the things that keep you up? What are you most worried about? At the top of the list was inflation and the cost of housing. It’s on the minds of everyone. We have a beautiful place where we live and provide services to the public, but at the same time, it does have a challenge with regard to the affordability of everything from milk to housing.
Q: What opportunities are you seeing for economic development for the County?
A: I think the opportunity for us here, number one, is the fact that it’s a very beautiful part of the world. A lot of folks come from a lot of places around the world to see us. The fact that we have the Grand Canyon and all of these natural attractions in our backyard is very important to us. That draws people here, which translates into sales tax revenue that supports public services.
It also leads people to say, “You know what? I would like to be here – to grow my business here or start my business here.”
We also have a lot of stability. Our growth is not explosive compared to other cities or counties, so we can gradually ramp up services. The government sector is one of the largest employers in Coconino County, and that sector is not as prone to the economic ups and downs. That’s not to say that things don’t change, but the sector is fairly stable as an employment sector.
Other positives include higher education. NAU has a huge impact on the local economy and the community college has been doing amazing things, and it will do even more with the funding increase that was approved by the voters. Their career technical education programs, workforce development, all those aspects are all important ingredients to a thriving economy.
We also have great major employers here in the county, certainly in Flagstaff with Gore, Nestle Purina, Joy Cone, and the list goes on and on and on. Then finally, the importance of our small-business sector; it’s amazing what they can do with what they have to work with. The margins are small, and expenses are high, but the impact of small businesses on our local economy is huge
Check out the full interview here.
