The Holbrook City Council met Dec. 13, during which the council approved a call of election for a one-time override of expenditure limitation to be held on Tuesday, May 21, 2024.
Interim City Manager Randy Sullivan explained the reason for this, “Every four years, we are required to take our expenditure limitation back to the vote of the people.” The previous cycle, which should have occurred under the then management of previous city manager Ted Soltis, did not happen. Due to the election not being conducted, the city’s current fiscal year is bound by the State of Arizona’s imposed limitations, which are lower than the actual budget. “The state numbers take a 1978 number multiplied by inflation factors and population factors, which ours is decreased, and it comes out with an ending number. So, if we don’t do this, this year and next year we’ll be bound by that data.”
“So, we’ve approved a budget we can’t spend,” added Mayor Kathleen Smith, “I’m not sure how many of us were aware of that when the budget went through.”
The next election to get the alternative limitation won’t be until August. So that means those that will be for fiscal years 2026 through 2030. Until that time, Sullivan stated that if the city could get a one-time override of expenditure limitation passed in May, it will provide the city one year until the new override begins in August. “I am recommending to call an election in May to get this one time override to help next year’s budget.”
When asked why this wasn’t done previously in order to fully utilize the budget, Sullivan stated he could not speculate on what previous management and council reasoning. Sullivan stated that the passed budget was approximately $15 million, while the state-imposed budget is around $8-$9 million, adding that payments have been pushed back in order to meet the imposed budget constraints. It was noted that since Navajo County is already holding an election in May, the city will not have to have its own elections. The cost for the election will be approximately $5,000.
The council approved a lease agreement with Petracom, which allows Petracom to place a small amount of equipment in a corner at the city’s wastewater treatment plant. Currently, the company rents a building from the city that floods often and prevents Petracom from servicing the equipment. This has no fiscal impact and is small enough that it should not affect the space in any major way. It was mentioned that the company, which is based in Holbrook and owns several radio stations, is open to providing services to the city, such as public service announcements and event advertising.
A resolution to enter into an intergovernmental agreement with the Arizona Department of Revenue for the administration collection, audit and/or licensing of transaction privilege tax, use taxes, severance tax, jet fuel excise and use taxes, and rental occupancy taxes imposed by the state and city was also approved by the council.
The council also approved the purchase of a used backup greens mower for the Hidden Cove Golf Course for $17,200. The purchase is a budgeted item for golf course capital in the budget.
Sullivan provided a code enforcement update, stating that he’s been working with a consultant, Joe Jarvis, on city code updates as well as planning and zoning. “He’s going to be leaning towards more commercial code enforcement for some of those hotels, those kinds of things, to make sure we’re complying with those. Barbara can concentrate on the residential stuff.” Barbara Blythe, the city’s code enforcement officer, has opened and closed 91 residential cases and is working on 32 open cases. “She’s only doing less than 20 hours a week and I think she’s doing an amazing job.”
Councilmember Robert Black raised a concern he had regarding nepotism within city staff, which goes against the city’s personnel policy. “So basically, I’m just turning over the council, I mean, we have the policy in place, but it’s not being followed.”
To provide context for the conversation, Mayor Kathleen Smith quoted Personnel Policy Section 202- Nepotism stating, “The appointment of relatives to city employees to regular position in the city service shall be permitted provided the relatives shall not be employed in a position where one would be directly supervising the other directly or in the same chain of command or a conflict of interest might arise concerning a question of internal control.”
Following the discussion Sullivan stated the matter would be looked into. “If we do have to transfer employees, we can do that.” Smith reminded the council that it was their job to ensure policy is being followed, but the staff’s responsibility to correct any issues. She also directed Sullivan to provide a report on the issue.
Another item on the agenda brought forward by Councilmember Black was the accrual of vacation hours for city staff. Current policy stipulates that the maximum accrual limits for regular city employees is 320 hours for employees of 13 years or more. It was noted that this is maximum accrued and not annual vacation hours. “To me, that’s unreal. I don’t think we can be doing that,” Black stated.
Mayor Smith disagreed, stating that she is in favor of this policy, stating that having good benefits can provide incentive when wages may not be as high as in other areas. Sullivan echoed this sentiment, stating the city cannot match pay of most private businesses and so benefits become a big selling point to getting qualified employees.
After additional discussion on the issue, Mayor Smith concluded the discussion can be continued in future meetings if it was needed.
During the call to the public, Carol Mindenhall addressed the board in relation to action item for approval of a liquor license application from the owner of 66 Restaurant, located at 2501 Navajo Blvd., that was on the agenda. Mindenhall, who is the manager of Motel 66, which is owned in conjunction with the soon to be opened restaurant, announced that she believes it would not be in the public’s best interest to approve the license to sell liquor. “We’re trying to make things every bit better, and I think this would be a nightmare.” Mindenhall noted there’s been an issue with drug use there in the past which has improved, but believes this would make things worse. Council decided to table the item of 66 Restaurant’s liquor license application pending further investigation into the role the council plays in such matters.
“Let’s find out what our responsibility is and go forward with that,” stated Councilmember Black. “We will look into it and see what our rights are and responsibility as a council,” added Mayor Smith.
The board also received a proposal from resident Kevin Self during call to the public to create a pedestrian pathway along McLaws Road, extending the pathway that ends at Apache Avenue and East Romero Street. “Part of the rationale is just the high foot and bicycle traffic that takes place,” stated Self, “There’s quite a bit traffic there, a lot of it takes place at nighttime after hours with almost near zero visibility.”
Lloyd Johnson spoke, stating that he is running for state representative and appreciates any support he can receive during his campaign.
During summary of current events, Sullivan noted that the city non-potable water pump located next to city offices is going to be locked starting Jan. 1. “Any customers that come on the nights or weekends, they’ll have to come and make sure they prepay and get a code from us.”
Sullivan noted that every several years an audit is done on the city’s levee, which is conducted by the Army Corps of Engineers. “We have two other levees that are not certifiable, one is along 7th Street, which is the wash that goes behind 7th Street.” According to Sullivan, the Arizona Department of Water Resources is over those. “Their new engineer has a concern that we don’t have an overflow over there. That’s going to be a project that we’re going to have to start looking at in the future. Right now, I told them we really don’t have the funds. So he’s going to start looking for grants for us.”
Sullivan noted that new swings have been purchased for both Lewis and Lizitsky parks, that will include swings to accommodate physically disabled children. A wheelchair swing has also been purchased for Hunt Park but will require some extra work to install.
Sullivan also announced that the water tank in Sun Valley has been completed and the streets department is working on 13th Avenue and that crack sealing with begin after the machine arrives this week. “The parks department started edging today. It’s going to get pretty rough so it may take them a little while but they have a machine now and I think that will make the parks look a lot nicer.”
Blythe informed the council that the city has been awarded a $250,000 grant from the state that will provide funding for emergency housing repairs. “This one is different. She noted it is different because we don’t have to do any liens, it’s okay if the property is in a flood zone.” Blythe estimated that approximately $15,000 can be spent per household. The funds are strictly for emergency repairs that without it, would make the home dangerous and force people to leave their home. She noted repairs could include roofing, electrical, plumbing, severely damaged floors, etc. “We’re anticipating about 11 homes somewhere about $15,000; some will go higher, some will go lower.” The funds will include $225,000 for the program itself, and then $25,000 will go towards administration. “So that will help to sustain salaries, where it wouldn’t have to be taken out of the general fund.”
This grant is in addition to the grant the city has been promoting for housing rehabilitation. But those who qualify for both grants can apply for the emergency funds from one and then still remain on the waiting list for the broader non-emergency grant funding.
