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Strategy alignment · Arizona

Does the spending fit the strategy?

Every town leans one way — building capital, or running services. This asks whether that lean fits where the town is headed and whether its tax strategy can fund it. One verdict per city, then the evidence: the capital-intensity trend, its growth cohort, and what its revenue base can actually carry.

Growing · 10.1% 2010–2020
Strategy Misaligned

Show Low shows a gap between what it spends on and how it funds that spending: It leans on capital but levies no property tax — the one lever that turns new development into recurring revenue. The building is funded by sales tax and state aid, neither of which scales with the assessed value it creates.

Growing (+10%)Capital-leaning spendingNo property taxCIR 25.8% vs cohort 18.3%

Orientation fits direction?

Aligned

Growing +10% and building ahead of residents — a capital lean is what a growth trajectory calls for.

Tax strategy funds it?

Misaligned

It leans on capital but levies no property tax — the one lever that turns new development into recurring revenue. The building is funded by sales tax and state aid, neither of which scales with the assessed value it creates.

Direction is the realized 2010→2020 growth trajectory — a proxy for a town's goals, not a plan it has stated. Orientation and tax strategy are FY2022 Census of Governments; property tax is the one clean local signal, so the funding verdict leans on it. A verdict is a question worth asking a town, read against its trajectory — not a grade.

The evidence · spending orientation

Capital Intensity Ratio — the share of Show Low's own spending that builds things rather than running services — across the four Census years, read against its cohort.

25.8%

capital intensity, 2022

+0.74pp

per year, 2007–2022 (4 pts)

83th

percentile among 35 growing cities

Capital intensity climbed +6.2pp while the city grew 10.1% — the capacity-building you would expect of a growing city.

Capital intensity (left)Service index, 2017 = 100 (right)hollow = low-confidence year
Show Low: capital intensity across the four Census of Governments years, with resident-service spending indexed alongside where the data breaks it out (2017–2022).

Against its growth cohort, 2022

25.8%

Show Low

18.3%

median of 35 growing cities

Can the revenue base fund it?

Growth-oriented but without the lever that captures growth: it levies no property tax, so rising assessed value never reaches the budget and the load falls on sales tax.

76%

raised locally (taxes + fees)

22%

from state & federal aid

0.47

diversification · −0.08 vs cohort

Own-source revenue mix

Property tax 0%Sales tax 64%Other taxes 2%Fees & charges 34%

Untapped levers & exposures

  • Property tax is not levied

    The largest recurring revenue lever is untapped. Property tax scales with assessed value, so it is the instrument that most directly captures a city's own growth — and its absence leaves sales tax and state aid to carry the whole load.

FY2022, U.S. Census of Governments. The Census folds state-shared sales tax into a city's own general sales tax, so the locally-raised and aid shares are directional — the shared portion inflates “raised locally” and understates true state dependence. Property tax is the one unambiguously-local signal, which is why the untapped-lever read leans on it.

Fastest-climbing capital intensity

CityCohortPop 10–20CIR/yrCIR 2022Service 17–22
BuckeyeGrowing79.8%+1.9pp31.1%+59.3pp
Sierra VistaStable3.2%+1.0pp23.7%+12.4pp
GlendaleStable9.5%+0.9pp12.4%+5.6pp
Queen CreekGrowing125.8%+0.9pp71.9%
Show LowGrowing10.1%+0.7pp25.8%+49.7pp
El MirageGrowing12.6%+0.6pp11.5%+7.9pp
KingmanGrowing16.5%+0.5pp18.4%
FlagstaffGrowing16.6%+0.4pp20.7%−4.6pp
DouglasDeclining-4.9%+0.4pp11.9%−9.1pp
Bullhead CityStable4.6%+0.3pp2.3%+9.6pp
Camp VerdeGrowing11.7%+0.1pp4.2%
CottonwoodStable6.8%+0.1pp12.6%+14.6pp

Ranked by the least-squares slope of capital intensity over the trusted years, among cities above 10,000 residents — below that a single project distorts the ratio, so smaller towns are browsable by name but not ranked here. Click any row to load that city above. “Service 17–22” is the change in resident-service spending per capita over the two years that carry functional detail.

How this is calculated
Capital Intensity Ratio = capital outlay ÷ (capital outlay + current operating spending), from the U.S. Census Bureau: 2017 and 2022 Census of Governments, 2007 and 2012 historical IndFin. The four years are five-year Census-of-Governments snapshots, not an annual series, so a “trend” is a line through at most four points and each reports how many. Six small towns have pre-2017 figures we do not trust and exclude from trends. This is a research lens, not a verdict: a high or rising ratio is a question to ask a city, read against its growth, not a judgment on its own.

Opportunity cost

What else could that money have bought?

Enter a project cost or incentive package and see it restated in the services a city actually funds. It weighs your figure against real spending — it does not estimate what the project itself would return.

$

$5,000,000 is 5.4 years of Show Low's parks & recreation budget — or a 20.2% lift to its entire operating budget for one year.

5.4×

years of the parks & recreation budget

20.2%

of the operating budget, one year

$410

per resident

For context, Show Low spends $921K a year on parks & recreation — about $76 per resident.

Service spending is the city's FY2022 current operations from the U.S. Census of Governments — the latest year broken out by function. A project cost is one-time, so it is shown as “years of” an annual service or as a single-year share of the operating budget, never as if the capital dollars recurred. This is a comparison of scale, not a forecast of what the project would return.

The forward view

Where is this strategy headed?

Alignment reads the record through FY2022. The fiscal-trajectory tool projects the recurring revenue base forward — and lets you bend it with a state income-tax cut, a downturn, or a new property tax.