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Home My WebLink About2000-07-11 City Council Regular MinutesCITY COUNCIL SPECIAL MEETING JULY 11,2000 The special meeting of the City Council of the City of Apache Junction, Arizona,was held on July 11,2000 at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER Vice Mayor Surra called the meeting to order at 7:00 p.m. ROLL CALL Councilmembers Present:Vice Mayor Surra Councilmember Durbala Councilmember Eck Councilmember Insalaco Councilmember Urich Staff Present: Mayor Coleman was absent. Councilmember Dietz was absent. City Manager Curtis Shook Assistant City Manager George Hoffman City Clerk Kathleen Connelly City Attorney Joel Stern Parks & Recreation Director Jeff Bell Library Director Pam Loui Finance Director Keith Lewis Development Services Director Glen Van Nimwegen Others Present:Public Works Manager Peter Plante Captain Dan Scott DISCUSSION ON TENTATIVE BUDGET FOR FISCAL YEAR 2000-2001 SPECIAL MEETING OF THE CITY COUNCIL JULY 11,2000 PAGE 1 OF 7 )Vice Mayor Surra opened the item for council discussion. Councilmember Durbala asked what the outcome was of the work session discussion regarding adding an employee to the clerk's department for enforcement of taxes.He would like to see one added in order to have someone go to the different businesses and do the auditing. Vice Mayor Surra commented the other members of the council had a different opinion.There was not enough support for another individual.The city clerk had stated the people already in place could currently handle the work.Enforcement was never one of the issues. if he had mentioned an auditor position. was correct. the city already has an auditor. City Clerk Kathleen Connelly asked Councilmember Durbala stated that City Clerk Kathleen Connelly stated Councilmember Durbala commented this would be for enforcement,for the employee to go out and check the businesses themselves. City Clerk Kathleen Connelly stated she was not sure there would be enough work for that position to be full time. She would prefer an additional person in the office to do that kind of work. Councilmember Durbala asked if that would be a part time individual. City Clerk Kathleen Connelly stated that is how it is budgeted now. PUBLIC HEARINGS TENTATIVE BUDGET FOR FISCAL YEAR 2000- SPECIAL MEETING OF THE CITY COUNCIL JULY 11,2000 PAGE 2 OF 7 2001 )Vice Mayor Surra opened the public hearing on the item. Mr.Tom Schuelke,1889 S.Palo Verde,Apache Junction,addressed the council.He gave the council a handout of what it might cost the city to rescind the food and rental taxes.He claimed the renters'tax was unfair,as it asks renters to pay more and receive no additional benefits from the city.Most renters are among the less fortunate in the city.He is not asking the city to put this to a vote,as this was done in Mesa and the homeowners defeated it.The same thing could occur here.However,everyone spends money on food,and he believes the less fortunate spend a greater portion of their earnings on food than anything else.The city relies heavily on sales tax and he questions whether i t accomplishes wealth distribution or allocates cost.The State of Arizona and Mesa do not tax food.He asked that the city more closely align city fees for services,examine the retail sales tax rollback,investigate any loopholes in the city tax code and determine if full time residents are subsidizing seasonal residents or vice versa,and act accordingly.He believes revenue sources should be based on fairness considerations.If it is determined that property taxes would be a fairer basis for tax collection then the current method,he urged that this case be made to the public.He is against taxes being raised for unessential services.He commented on requesting a five year budget projection before the Capital Facilities Plan was approved,and that he had given the city manager a copy of one he had done.The projections show this budget would not balance.He requested they examine his projections before voting on this budget. Councilmember Eck asked if there were other communities in the valley that taxed food. Mr.Tom Schuelke stated he only mentioned the state because it is the state and Mesa because i t is the neighboring community where residents may go to shop. Councilmember Eck,commented .he believes Mesa is the only community that does not tax food. Mr.Tom Schuelke stated he did not SPECIAL MEETING OF THE CITY COUNCIL JULY 11,2000 PAGE 3 OF 7 know the answer to that. Councilmember Eck stated Mesa had been in the top five in the country for services,but now that they are not taxing food,the service level is expected to drop drastically. Mr.Tom Schuelke stated there is always another way to get revenue.Another tax could be raised,or services could be cut.He commented he is not sure the city could eliminate the food tax with the numbers that are involved.He continued to urge them to eliminate the rental tax. Vice Mayor Surra closed the public hearing with no one else wishing to speak.She reopened the item to council discussion. Councilmember Durbala asked if the purpose of the rental tax was to have the winter visitors pay their fair share at rental parks. City Clerk Kathleen Connelly stated that is correct.They are taxed at _a for 30 days and 4% for less than 30 days.I t is a transaction privilege tax;it does not have to be passed on to the renter. Councilmember Eck commented that most property owners do. Councilmember Insalaco asked if the commercial rentals also paid the tax. City Clerk Kathleen Connelly stated they are subject to the tax.Any rental,even a lawnmower rented for one day, or a storefront rented for a year,is subject to the tax. Councilmember Durbala commented it concerns more than just the rental tax on the parks. City Clerk Kathleen Connelly stated SPECIAL MEETING OF THE CITY COUNCIL JULY 11,2000 PAGE 4 OF 7 it concerns more than just residential rental. Councilmember Insalaco asked if there was anything in the budget this year for employees who had maxed out,as there was last year. City Manager Curtis Shook stated the base wage adjustment shifts the ceiling so that anyone that is at the top of their range will have the range rise by 3%.All employees will be taking advantage of the base wage adjustment. Assistant City Manager George Hoffman stated they have tentatively allocated money for a pay study that should address all the compensation issues. Vice Mayor Surra closed the item with no further discussion. CONSIDERATION OF PROPOSED RESOLUTION NO. 00-21,ADOPTION OF TENTATIVE BUDGET FOR FISCAL YEAR 2000-2001 AND GIVING NOTICE OF FINAL BUDGET ADOPTION )City Clerk Kathleen Connelly stated that when making the motion there are some blanks for the final budget hearing that need to be filled in.She stated they will need at least two weeks in between to meet legal advertising deadlines. There was general discussion on the public hearing requirements and the determination of the date and time. Councilmember Durbala MOVED THAT RESOLUTION NO.00-21,A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,ARIZONA,FOR THE ADOPTION OF THE TENTATIVE BUDGET FOR THE CITY OF APACHE JUNCTION,ARIZONA,FOR FISCAL YEAR 2000-2001,HEREWITH SETTING FORTH THE TENTATIVE ESTIMATES FOR THE MONIES NECESSARY FOR THE PUBLIC EXPENSES OF THE CITY OF APACHE JUNCTION,ARIZONA,FOR THE FISCAL YEAR 2000-2001 AND GIVING NOTICE OF THE TIME AND PLACE FOR HEARING TAXPAYERS FOR THE ADOPTION OF THE BUDGET BE APPROVED,AND THE DATE WOULD BE THE FIRST OF AUGUST AT 6 P.M., SPECIAL MEETING OF THE CITY COUNCIL JULY 11,2000 PAGE 5 OF 7 2000,THAT WOULD BE A SPECIAL MEETING,AND THAT WOULD BE A PUBLIC HEARING AND POSSIBLE ADOPTION OF THE FINAL BUDGET ON THAT DATE. Vice Mayor Surra asked about the place. Councilmember Durbala continued his motion with THE PLACE WOULD BE HERE IN THE APACHE JUNCTION CITY COUNCIL CHAMBERS LOCATED AT 1001 NORTH IDAHO. Councilmember Urich seconded the motion. VOTE:Unanimous. The motion carried. ADJOURNMENT meeting at 7:20 p.m. ACCEPTED THIS 1ST COUNCIL OF THE CITY SIGNED AND ATTESTED ATTEST: KATHLEEN CONNELLY City Clerk )Vice Mayor Surra adjourned the DAY OF AUGUST ,2000,BY THE MAYOR AND CITY OF APACHE JUNCTION,ARIZONA. TO THIS 1ST DAY OF SPECIAL MEETING OF THE CITY COUNCIL JULY 11,2000 PAGE 6 OF 7 AUGUST DOUGLAS CFEMAN Mayor ,2000. CITY COUNCIL MINUTES CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the special meeting of the City Council of the City of Apache Junction,Arizona,held on the 11th day of July,2000.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 18th day of July,2000. KATHLEEN CONNELLY City Clerk SPECIAL MEETING OF THE CITY COUNCIL JULY 11,2000 PAGE 7 OF 7