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On Tuesday, July 23, the Holbrook City Council held a meeting open to the public to discuss Ordinance 19-05, an ordinance to continue with the Privilege License Tax at the rate of three percent.
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According to City Clerk Cher Reyes, in 2000 the city passed an ordinance to add a one percent sales tax to the existing two percent tax to cover costs of the water treatment plant located on the west side of Holbrook at the end of Hopi Drive. The sales tax is responsible for $983,000 in revenue with $450,000 of that going back into the plant according to Chief Financial Officer Randy Sullivan.
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Reyes confirmed that the last payment on the plant will be made in June of 2020. If the one percent tax were to go away after the payments are complete, it would mean a fiscal loss of $920,432 based on Fiscal Year 2020 revenues.
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The council was given a brief overview by Sullivan who said the net of approximately $500,000 that Holbrook would lose if the one percent were abolished would be difficult to compensate for stating, “I don’t know how the city would recover after something like that,” as the one percent is also a part of the general fund for the city. Sullivan added, “I can’t fathom how we would be able to function with that kind of a loss.”
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After Reyes conducted the first reading of the ordinance, the matter was set to be presented on the next meeting’s agenda. At that time the council will have the opportunity for final approval of the ordinance.
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In new business, Wastewater Supervisor Lance Spencer presented the council with a proposal to approve payment in the amount of $12,243 to Precision Electric Company, Inc., to recondition a 30-horse power vertical turbine pump and motor. With the average lifespan of four to 20 years, Spencer explained, the pump has lasted for 18 years and is “on its last leg.”
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A public hearing was also held before motioning to approve the 2019-2020 final budget. No members of the public were there to speak. Councilman Tim Dixon made the motion to approve and Councilman Adam Marsh seconded with approval from the rest of the council. A resolution levying a property tax approved by the voters in May was presented and also approved.
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City Manager Ted Soltis proposed a resolution to the council designating authorized signatories. Any document or check that must be signed for approval will require two signatures. Based on the success he’s witnessed where such procedures have been implemented, the city manager believes it is necessary and will help with accountability.
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The council agreed that moving forward the designated signatories will be Mayor Merrill Young and Manager Soltis.
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One of the water booster pumps went out and has been sent for diagnostic and repair. Soltis assured the council that there is funding for these types of contingencies. Also, in discussion was the pool pump which was out for a few days this month. Soltis reassured the council, “We are doing our best to accumulate new revenues in our capital funds to take care of these issues.”
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There to present a resolution authorizing the grant submission and fund acceptance of the Gila River Indian Community Grant, was Holbrook Police Department Sgt. Tony Sutton. He stated that the grant the police department applied for in March to purchase three new vehicles is now in the last stages. Though the city would be responsible for the equipment, the grant will pay for the three 2020 Ford Explorers, in the amount of $112,981. One will be used as a detective vehicle and the other two would be patrol vehicles. The fiscal impact for outfitting the vehicles is estimated at $22,500.
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In response to Councilman Mark Jackson’s question as to whether the grant had been approved, Sutton said that although it had not yet been approved, everything is looking good and he believes they should have their answer sometime in August but did not have the exact date a result can be expected.
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Soltis reported that his experience at the AMRRP (Arizona Municipal Risk Retention Pool) round table was very productive and they continue to offer new and effective services. Soltis expressed his enthusiasm for the potential opportunities after attending the Navajo County Mayor’s and Manager’s Summit in Winslow stating, “It’s always good to get together with colleagues to talk about issues, talk about opportunities to collaborate.”
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Referring to the Pilots Association Picnic he attended with Mayor Young, Soltis said “I think we’re very fortunate to have such an active group in our community.” The city manager also updated the council on the progress being made at the cemetery. He explained, “Earlier on, the cemetery was having issues with very dry grass” but stated that the sprinkler heads have since been replaced. Soltis informed the council that all issues are being addressed saying, “Keeping that cemetery looking nice is very important to us.”
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“The guys are doing a really good job over there,” Soltis said about the near completion of phase one for the additional parking on Arizona Street. Soltis informed everyone that City Hall would be closed on Friday, Aug. 9, so the floors could be completed.
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The council also approved a liquor license application for Arizona Sake and approved invoices and payments totaling $377,515.
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