“We had a clean audit report again this year,” Snowflake Town Manager Brian Richards advised the town council as he presented the Comprehensive Annual Financial Report and Annual Audit Report Jan. 10.
Richards had prepared information that showed revenues collected over the past 10 fiscal years. He explained that in 2016 the town collected more in revenues than in the previous six years, explaining to the council that in 2007-08 Snowflake had the highest year of revenue because “everything was booming.”
Mayor Lynn Johnson asked if the higher revenues this year were due to revenues collected from Walmart.
Richards replied that to date, Snowflake has not received tax revenues from Walmart. The towns of Taylor and Snowflake agreed that for 10 years following the opening of Walmart, they would share revenues at a 40 percent rate and the developer would receive the remaining 20 percent. They also have an agreement that each town would pay half of the intersection cost, which came to $600,000. Taylor received a grant to pay its portion, so officials of that town agreed to pay Snowflake’s portion, which is being paid back through tax revenues.
Town Attorney Robert Hall explained that the $300,000 would be paid back to Taylor before Snowflake receives its share. “We will start collecting in June,” said Hall. “It is ahead of schedule.”
Richards said that next year the budgeted sales tax revenue will increase by $200,000.
Snowflake was 11 percent ahead on sales tax last fiscal year, but this year is behind three percent from last year. Richards said he thought that was due to a loss of local business when Walmart opened in Taylor.
Richards discussed the police pension fund briefly, explaining that changes in state law will help cities and towns, but employees who come on board now won’t have as generous benefits as in the 30-plus years previously.
He noted that another change in 2015 was the standards of reporting, explaining, “Basically we have to show we have a $2.4 million liability, and we’re showing the whole liability on our financial statement.”
Richards is working with Taylor officials on an intergovernmental agreement that will show Taylor is responsible for its share of police pension expenses, so it won’t all reflect on Snowflake.
Currently, the town pays 38 percent of the retirement for each police officer, and next year that will increase to 42 percent. “That’s about the top, so we’ll start leveling off,” said Richards. He noted that police officers hired after June 30, 2017, will be on a whole different retirement plan.
Richards explained that this is for only the police; all other town employees are on state retirement.
HintonBurdick, PLLC, preformed the annual audit report and stated in their report, “In our opinion, the Town of Snowflake complied in all material respects, with the requirements identified above for the fiscal year ended June 30, 2016.”
“I was happy with the results,” said Richards. “We did pretty good financially, as well.”
In other business, the council unanimously approved the purchase of golf course equipment in December 2016. Richards explained that staff received two quotes for financing, one from Wells Fargo at an interest rate of 2.9 percent, and one from National Bank of Arizona at an interest rate of 2.65 percent. Staff members recommended entering into an equipment lease agreement with National Bank of Arizona, which the council unanimously approved.
The council went into executive session to discuss water adjudication in the Little Colorado River System, and to get legal advice and direction regarding the defendants’ proposed form of judgment and attorney fee issue in Navajo County Superior Court, CV2016-00278– Timothy J. Casey, Esq., outside counsel for the town.
Mayor Johnson moved to direct staff to seek alternative solutions to the town’s legal representation.
