During the Feb. 14 Holbrook City Council meeting Interim City Manager Randy Sullivan provided follow-up on his investigation into the loss of approximately $244,000 in sales tax revenue reported to the city from the state.
He contacted the Arizona Department of Revenue about a possible audit of vendors, but also conducted his own brief investigation. “A lot of what I found shows the shortfall is legit. One vendor by itself covered almost half of that loss,” he explained.
Sullivan elaborated after the meeting, stating that the business in question is current on its sales tax payments, but had seen a substantial decrease in revenues the past year resulting in less income to tax. He admitted that the decrease could mean a new norm until new industry comes to the city.
During the meeting Sullivan said the state has begun paying the overdue funds owed to the city as reimbursement for three projects completed at the airport. The vendors have already been paid for their work and the hold by the state caused the city to put the brakes on all projects. “They have started reimbursing some of the airport grants and by the end of February, we should be reimbursed for a big chunk. We should be able to move forward on all major projects after that,” said Sullivan.
He also noted that he had received a response regarding the projects the council selected for Community Development Block Grant funds the city received. “The CDBG funds being through NACOG (Northern Arizona Council of Governments) were approved for citywide ADA (Americans with Disabilities Act) projects, but not the senior center projects,” he said. The $247,757 will be used to create ramps, and make the doors and sidewalks of publicly used city buildings ADA compliant.
The council had also asked that the funds be used to assist the Holbrook Senior Citizens Center and the Holbrook Food Bank by providing an expansion of the storage and improving equipment at the food bank, and to purchase a new refrigerator, freezer and van for the center.
Sullivan also reported that work has begun at the city pool. “We have a lot of concerns at the pool, mainly in the boys’ bathroom, and we’ve made progress in one area. There’s a rumor going around that we were not going to open the pool and I don’t know where that came from, but we should be on schedule,” he said.
He also noted that the city is assisting the Holbrook School District by providing manpower for reconstruction of a driveway at the bus barn.
Police Chief Mark Jackson informed the council that the patrol truck he was driving when struck by another vehicle was determined to be totaled by the insurance company and that a new truck will be purchased. He noted that it would take approximately four months until it is outfitted and ready for the road.
Jackson also related that the department has lost three of its officers to other agencies and is having a difficult time finding qualified applicants. Officers who have left include Richard Fowler, who left to join Arizona Department of Transportation law enforcement; Stratton Hatch, who accepted a position with the Show Low Police Department; and David Kishbaugh, who will leave to work for the Department of Corrections later this month.
“We have a few subjects that are interested, but we can’t get any laterals. I don’t know if it’s the pay or not,” said the police chief. “We did a background on quite a few, but they just couldn’t pass it. We have two that will hopefully be going into the academy in August. Right now the department is on 12-hour shifts to cover and admin is stepping up until positions are filled.”
Vice Mayor Wade Carlisle, who sits on NACOG’s Rural Transportation Advisory Council, told the council that they are pressing for an increase in fuel tax.
Carlisle said that accounting for inflation, Highway User Revenue Funds (HURF) are 40 percent of what they were when they were first increased. If approved, Senate Bill 1147 would increase fuel tax by 10 cents per gallon, with all of those taxes to go to Department of Public Safety operations, which is currently funded through HURF.
“It would also tax alternative fuel vehicles. They don’t pay any Highway User Revenue taxes, but they still use the roads,” explained Carlisle, noting that this is the closest they’ve gotten to increasing the fuel taxes to improve roads. It’s estimated that the tax would increase revenues by at least $300 million each year. The tax is currently 18 cents per gallon and if passed, this would be the first increase since 1991.
In other business, the council gave final approval to a lease of property to the Hashknife Posse. The lease is for $1 and is for a large building at the old Northland Pioneer College campus on Hermosa Drive.
Holbrook Chamber of Commerce President Yvonne Larson advised the council that the chamber has a new website at holbrookazchamber.com. The site lists the events taking place in the city, as well as places to visit in the area and a business directory featuring information on businesses that belong to the chamber.
Mayor Bobby Tyler and other council members commended the Hashknife Posse on another successful Pony Express ride earlier in the month. “The Hashknife Posse put their best foot forward to make this a success. A lot of times we see the riders and the horses, but there is so much that goes on behind the scenes… and I want to thank them for all of their hard work,” stated Tyler.
Sullivan noted that he would begin discussing the upcoming budget with the council during the second meeting in March. The March 14 meeting has been canceled due to the city council election.
