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HomeMy WebLinkAbout2015 08.03 City Council Work Session Agenda �P^ H Meeting City of Apache Junction, Arizona 9 location np City Council Chambers z) at City Hall A ends 300 E Superstition Blvd g Apache Junction,AZ �Ri2YTyr 85119 City Council Work Session www ajcity net Ph (480)982-8002 Monday,August 3, 2015 7.00 PM City Council Chambers A. CALL TO ORDER B. ROLL CALL C. AGENDA ITEMS 1. Presentation and discussion with city staff and Lee Grafstrom, Tax Policy Analyst for the League of Arizona Cities and Towns, about use tax 2. Presentation by and discussion with Assistant Chief Mike Farber of the Superstition Fire and Medical District regarding 2015 Insurance Service Office (ISO) Public Protection Classification This presentation is informational only for the purpose of letting the mayor and city council know the effect the ISO rating will have on citizens and businesses within the District's service area 3. Presentation and discussion regarding the continuation of the 2% sales tax which is set to expire on September 1, 2016 The 2% sales tax was adopted by city council with Ordinance No 1359 in 2010 4. Discussion on the support city council and city staff may provide on the school override election pursuant to A R S § 9-500 14 D. ADJOURNMENT Copies of this agenda and additional Information regarding any of the items listed above may be obtained Monday through Thursdays, 7 00a—6 00p, excluding holidays, from the City Clerk's office located at 300 East Superstition Boulevard. Apache Junction, AZ The City of Apache Junction invites and welcomes people of all abilities to use our programs, sites and facilities Specific requests may be made by contacting the Human Resources Office at(480)474-2617 or TDD(480) 983-0095 City of Apache Junction,Arizona Page 1 Printed on 7/28/2015 ►* City of Apache Junction, Arizona 300 E Superstition Boulevard Apache Junction,Az 85119 Agenda Item Cover Sheet Agenda Item No 1 File ID: 15-259 Sponsor. Matt Busby Agenda Date.8/3/2015 Index: In Control. City Council Work Session Presentation and discussion with city staff and Lee Grafstrom, Tax Policy Analyst for the League of Arizona Cities and Towns, about use tax Attachments. City or Apache Junction,Arizona Page 1 Printed on 7/27/2015 tYV% City of Apache Junction, Arizona 300 E Superstition Boulevard O Agenda Item Cover Sheet Apache Junction AZ 85119 Z Agenda Item No 2 File ID 15-281 Sponsor. Bryant Powell Agenda Date 8/3/2015 Index. In Control. City Council Work Session Presentation by and discussion with Assistant Chief Mike Farber of the Superstition Fire and Medical District regarding 2015 Insurance Service Office (ISO) Public Protection Classification This presentation is Informational only for the purpose of letting the mayor and city council know the effect the ISO rating will have on citizens and businesses within the District's service area The ISO collects information on municipal fire protection efforts in communities throughout the United States and in turn uses the information to help those communities evaluate their public fire protection services The program provides an objective, countrywide standard that helps fire departments in planning and budgeting for facilities, equipment and training This is the first time the information is presented to the mayor and city council The last time the Fire District completed this rating was in 2005 Attachments. City of Apache Junction,Arizona Page 1 Printed on 712712015 City of Apache Junction, Arizona 300E Superstition Boulevard zAgenda Item Cover Sheet Apache Junction AZ 85119 Agenda Item No 3 File ID 15-283 Sponsor. Bryant Powell Agenda Date: 8/3/2015 Index. In Control: City Council Work Session Presentation and discussion regarding the continuation of the 2% sales tax which is set to expire on September 1, 2016 The 2% sales tax was adopted by city council with Ordinance No. 1359 in 2010. Attachments: City or Apache Junction,Arizona Page 1 Printed on 712 712 01 5 A ORDINANCE NO. 1359 AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, RELATING TO THE TRANSACTION PRIVILEGE LICENSE TAX (SALES TAX); AMENDING THE TAX CODE OF THE CITY OF APACHE JUNCTION BY CONTINUING THE RATE OF TAXATION BY TWO-TENTHS OF ONE PERCENT (.2%) AS ORIGINALLY ADOPTED BY ORDINANCE NO. 1129; DESIGNATING THE PURPOSE, DESIGNATING AN EFFECTIVE DATE; DESIGNATING A TERMINATION DATE; PROVIDING FOR EXISTING CONTRACTS, PROVIDING FOR PENALTIES; REPE4LING ANY CONFLICTING PROVISIONS, PROVIDING FOR SEVERABILITY, AND DECLARING AN EMERGENCY. WHEREAS, Arizona Revised Statutes § 9-240(B) (26) conveys upon the Mayor and City Council the power to levy taxes including a transacticn privilege license tax (sales tax), and WHEREAS, the City of Apache Junction has sustained diminished revenues due to the current nationwide economic downturn, and WHEREAS, the City of Apache Junction has already received notice that its proportionate share of state shared revenues for Fiscal Year 2010-2011 will be decreased by approximately $1.1 million; and WHEREAS, since Fiscal Year 2007-2008, t::e City of Apache Junction already reduced its personnel and operating costs by $5.6 million; and WHEREAS, having no city property tax, the City of Apache Junction relies heavily upon sales tax revenues to provide city services; and WHEREAS, the Mayor and City Council have determined that the continuation of the two-tenths of one percent ( 2%) transaction privilege license tax (sales tax) as set forth in this ordinance is necessary to sustain the quality for community residents and enhance the public health, safety and welfare, and WHEREAS, at their regular meeting of February 16, 2010, a majority of the Mayor and City Council directed staff to prepare an ordinance for an extension of the 2% sales tax in compliance with State law and the Model City Tax Code, and WHEREAS, changes to the transaction privilege tax rate are affected by amending the Tax Code of the City of Apache Junction, and by appropriate notification to city taxpayers and to the Arizona Department of Reverue NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AS FOLLOWS: ORDINANCE NO. 1359 PAGE 1 OF 5 SECTION I IN GENERAL A The tax rate in each of the following sections of the city tax code is continued at the rate of two and two-tenths percent (2 2%) Section BA-405 Advertising Section 8A-410 Amusements, exhibitions, and similar activities Section 8A-420 Feed at wholesale Section. BA-425 Job printing Section BA-427 Manufactured buildings Section 8A-430 Timbering and other extraction Section 8A-435 Publishing and periodicals distribution Section 8A-440 Rental occupancy Section 8A-444 Hotels Section 8A-445 Rental, leasing, and licensing for use of real property Section 8A-447 Additional tax upon transient lodging Section 8A-450 Rental, leasing, and licensing for use of tangible personal property Section 8A-455 Restaurants and bars Section 8A-475 Transporting for hire B. The tax rate in the following sections of the city tax code is continued at the rate of three and two-tenths percent (3 2%) : Section 8A-470 Telecommunications services Section 8A-480 Utility services C. Section 8A-460 of the city tax code shall continue to read- Section 8A-460 Retail sales: measure of tax, burden of proof; exclusions (a) The tax rate shall be at the amount equal to two and two- tenths percent (2.2%) of the gross income from the business activity upon every person engaging or continuing in the business of selling personal property at retail. (b) The burden of proving that a sale of tangible personal property is not a taxable retail sale shall be upon the person who made the sale. (c) Exclusions. For the purpose of this Chapter, sales of tangible personal property shall not include: ORDINANCE NO 1359 PAGE 2 OF 5 /'WIN AOMWA (1) sales of stocks, bonds, options, or other similar materials. (2) sales of lottery tickets or shares pursuant to Article 1, Chapter 5, Title 5, Arizona Revised Statutes. (3) sales of platinum, bullion, or monetized bullion, except minted or manufactured coins transferred or acquired primarily for their numismatic value as prescribed by Regulation. (4) gross income derived from the transfer of tangible personal property which is specifically included as the gross income of a business activity upon which another Section of this Article imposes a tax, shall be considered gross income of that business activity, and are not includable as gross income subject to the tax imposed by this Section. (5) sales by professional or personal service occupations where such sales are inconsequential elements of the service provided (d) Notwithstanding the provisions of subsection (a) above, when the gross income from the sale of a single item of tangible persona'_ property exceeds two thousand dollars ($2,000), the two and two- tenths (2.2%) tax rate shall apply to the first $2,000 Above $2,000, the measure of tax shall be at a rate of one and two-tenths percent (1 2%) . (e) When this City and another Arizona city or town with an equivalent excise tax could claim nexus for taxing a retail sale, the city or town where the permanent business location of the seller at which the order was received shall be deemed to have precedence, and for the purposes of this Chapter such city or town has sole and exclusive rights to such tax (f) The appropriate tax liability for any retail sale where the order is received at a permanent business location of the seller located in this City or in an Arizona city or town that levies an equivalent excise tax shall be at the tax rate of the city or town of such seller's location. (g) Retail sales of prepaid calling cards or prepaid authorization numbers for telecommunications services, including sales of reauthorization of a prepaid card or authorization number, are subject to tax under this Section. SECTION II CONSTRUCTION CONTRACTING ExCEPTION ORDINANCE NO 1359 PAGE 3 OF 5 Ank, In accordance with Session Laws (House Bill 2008), Forty-Ninth Arizona State Legislature, 2009 Third Special Session, Chapter 7, S 42, the tax rate in each of the following sections of the city tax code is reduced to two percent (2%) on September 2, 2010 and shall automatically change to two and two-tenths percent (2.2%) on July 1, 2011 Section 8A-415 Construction contracting: construction contractors Section 8A-416 Construction contracting- speculative builders Section 8A-417 Construction contracting owner-builders who are not speculative builders SECTION III DESIGNATING THE PURPOSE For such period of time that the City of Apache Junction, Arizona, levies the tax as described in Section I above, the revenues collected from the two-tenths of one percent (.2%) continuation shall be used for expenses related to general government. SECTION IV DESIGNATING AN EFFECTIVE DATE The provisions of this ordinance shall became effective on September 2, 2010. SECTION V DESIGNATING A TERMINATION DATE The provisions of this ordinance shall terminate on September 1, 2016, at which time the tax rates as set forth in Section I and Section II of this ordinance shall be automatically reduced by two-tenths of one percent (.2%) . SECTION VI PROVIDING FOR EXISTING CONTRACTS The tax imposed pursuant to Section I(D) of this ordinance shall not apply to contracts entered into prior to September 1, 2010. SECTION VII PROVIDING FOR PENALTIES Any person found guilty of violating any provision of these amendments to the tax code shall be guilty of a class one misdemeanor and shall be prosecuted pursuant to Article 1-8 of the Apache Junction City Code and Section 8A-580 of the Tax Code of the City of Apache Junction. SECTION V1I1 REPEALING ANY CONFLICTING PROVISIONS ORDINANCE NO 1359 PAGE 4 OF 5 All ordinances and parts of ordinances in conflict with the provisions of this ordinance or any part of the code adopted herein by reference are hereby repealed. SECTION IX PROVIDING FOR SEVERABILITY If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions thereof. SECTION X DECLARING AN EMERGENCY Whereas it is necessary for the preservation of the peace, health, and safety of the City of Apache Junction, Arizona, an emergency is declared to exist, and this ordinance shall became immediately operative and in force from and after the date of posting PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, THIS 2ND DAY OF MARCH 2010 SIGNED AND ATTESTED TO THIS 2ND DAY OF MARCH , 2010. w S. INSALACO Mayor ATTEST KATHLEEN CONNELLY City Clerk APPROVED AS TO FORM �3a10 RICHARD JOEL STERN City Attorney ORDINANCE NO 1359 PAGE 5 OF 5 ►� City of Apache Junction, Arizona 300 E Superstition Boulevard } Apache Junction AZ 85119 z Agenda Item Cover Sheet Agenda Item No.4. File ID: 15-284 Sponsor. Chip Wilson Agenda Date. 8/3/2015 Index. In Control City Council Work Session Discussion on the support city council and city staff may provide on the school override election pursuant to A R S § 9-500.14, Attachments. City of Apache Junction,Arizona Page 1 Printed on 7/27/2015 Format Document Page I of 2 Arizona State Legislature Bd N,mbe,search L�.;. Olt � Filly-seco-,d Legislature First Regular Sessio- change session I printer friendly version Email a Member ; Email Webmaster Senate House Legislative Council ABC More Agencies Bills Committees Calendars/News ARS TITLE PAGE NEXT DOCUMENT PREVIOUS DOCUMENT 9-500 14. Use of citv or town resources or employees to influence elections; prohibition: civil penalty, e initions A A city or town shall not spend or use Its resources, Including the use or expenditure of monies, accounts, credit facilities, vehicles, postage, telecommunications, computer hardware and snhware, web pages, personnel, equipment, materials, buildings or any other thing of value of the city or town, for the purpose of Influencing the outcomes of elections. Notwithstanding this section, a city or town may distribute Informational pamphlets on a proposed bond election as provided in section 35-454 if those Informational pamphlets present factual information in a neutral manner Nothing in this section precludes a city or town from reporting on official actions of the governing body B. The prohibition on the use of public resources to influence the outcome of bond, budget override and other tax-related elections includes the use of city-focused or town-focused promotional expenditures that occur after an election is called and through election day This prohibition does not include routine city or town communications C. This section does not prohibit the use of city or town resources, including facilities and equipment, for government-sponsored forums or debates if the government sponsor remains impartial and the events are purely Informational and provide an equal opportunity to all viewpoints The rental and use of a public facility by a private person or entity that may lawfully attempt to Influence the outcome of an election is permitted if it does not occur at the same time and place as a government-sponsored forum or debate. D Employees of a city or town shall not use the authority of their positions to influence the vote or political activities of any subordinate employee E The attorney general or the county attorney of the county in which an alleged violation of this section occurred may initiate a suit in the superior court in the county in which the city or town is located for the purpose of complying with this section. F. For each violation of this section, the court may Impose a civil penalty not to exceed five thousand dollars plus any amount of misused funds subtracted from the city or town budget against a person who knowingly violates or aids another person in violating this section The person determined to be out of compliance with this section is responsible for the payment of all penalties and misused funds City or town funds or insurance payments shall not be used to pay these penalties or misused funds All misused funds collected pursuant to this section shall be returned to the city or town whose funds were misused G Nothing contained in this section shall be construed as denying the civil and political liberties of any employee as guaranteed by the United States and Arizona Constitutions. H For the purposes of this section 1 'Government-sponsored forum or debate" means any event, or part of an event or meeting, in which the government is an official sponsor, which is open to the Public or to invited members of the public, and whose purpose is to inform the public about an issue or proposition that is before the voters 2. "Influencing the outcomes of elections" means supporting or opposing a candidate for nomination or election to public office or the recall of a public officer or supporting or opposing a ballot measure, question or proposition, including any bond, budget or override election and supporting or opposing the circulation of a petition for the recall of a public officer or a petition for a ballot measure, question or proposition in any manner that is not impartial or neutral 3. "Misused funds" means city or town monies or resources used unlawfully as proscribed by this section 4. "Routine city or town communications" means messages or advertisements that are germane to the functions of the city or town and that maintain the frequency, http•//www azleg gov/FormatDocument.asp?inDoc=/ars/9/00500-14 htm&Title=9&DocTy... 7/22/2015 Format Document /. ,^ Page 2 of 2 scope and distribution consistent with past practices or are necessary for public safety. 020C?Anrora Stale legislaturc 00=\ �%k http//www azieg.gov/FormatDocument.asp?inDoc=/ars/9/00500-14.htm&Title=9&DocTy... 7/22/2015