HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 3/10/1987MINUTES OF THE WORKSHOP SESSION OF THECITYCOUNCILOFTHECITYOFGLENDALE, MARICOPA COUNTY, ARIZONA HELD TUESDAY, MARCH 10, 1987, AT 2:35 P.M. Mayor Renner called to order the Workshop Session of GlendaleCityCouncilintheFourthFloorConferenceRoomoftheMunicipalOfficeComplex. Council members present were: Bellah, Huffman, Heatwole, Tolby, Falbo and Hugh. MembersAbsent: None. MODEL CITY TAX CODETheModelCityTax Code is the result of a two year effort bythecitiesandtownsofthisstate, along with input from thebusinesscommunity. The Code was intended to be impartialfromataxationperspective, with the City adopting thevariousoptionsofferedintheCode.
The adoption of the Model City Code allows Glendale the
ability to maintain its sales tax base while providing more
uniformity in the applications and administration of local
transaction privilege taxes. This uniformity provides an
additional element of fairness to the taxpayer since
consistent language would be used regardless of where the
business is located in the valley. The code has the same
elements as we now have but it is restructured to conform to
the model that all cities will use. In effect, it is a
recodification of the sales tax code with the addition of the
section on taxing sales made to the city. The passage of the
Model City Code would make Glendale's Code consistent with
that of other valley cities, and through consistency, would
address the business community's concern about the wide
divergence in local transaction privilege taxes and the
resulting difficulty in compliance.
Terry Sharp, Management Resources Deputy City Manager, gave a
brief presentation.
Mayor Renner asked if the City taxes sales made to ourselves,
how does it affect the preference given to local bidders.
Mr. Sharp stated the existing preference is 5% and it is not
considered for what is paid for in state bidders for public
works projects and have not charged sales taxes in the past
which is a 1% difference but this is not the difference
between the low bidder and the next bidder. Mr. Vanacour
stated if it was that factor would be terminated.
Councilman Tolby asked if administrative regulations will be
allowed under this code. Cathy Connolly, Az. League of
Cities and Towns, responded the regulations are part of the
law and they will be consistent between jurisdictions.
Mayor Renner asked when the effective dates would be. Mr. Sharp said they would recommend at the adoption of theordinance. This item will be placed on a regular agenda for councilaction. FEDERAL GRANT ACCOUNTINGOverthepastfewyears, the City has received grants fromtheFederalAviationAdministration, Community DevelopmentblockGrant, Housing Grants, and Urban Mass TransitAdministration. Although some of these funds (Airport) havealreadybeenspent, the City's responsibility for accountingandrespondingtoauditinquiriescontinuesformanyyears. Other programs like Community Revitalization, Transit, andHousingcontinuetoreceivefederalsupport.
An annual single audit is conducted of all federal funds. In
addition, more complex requirements are being added by many
of the agencies along with intensified audit efforts to
recoup all funds possible. Council authorization for an
additional accountant for grant funds is being requested now
to facilitate preparation for the annual audit this summer.
Without this authorization, the request will be a high
priority in the Finance budget request. Funding would come
from grants and would not require a general fund
appropriation.
Mayor Renner asked if we should consider putting to bid and
ask accounting firms to submit what a cost for this function
would be. Mr. Lynch, Finance Director, said they could put
out a bid requesting a audit but it would not be cost
effective.
Mayor Renner asked if this would be a full time position for
the next two or three years. Mr. Lynch said this would be a
full time position and feels this position would save the
City money or provide a revenue generating source.
Vice Mayor Heatwole asked as federal funds diminish would the
need for this position diminish. Mr. Sharp said they would
seek council guidance on how to utilize the resource.
Councilman Tolby asked why this position was not included in
the July budget request. Mr. Lynch stated the year end audit
process needs to be complete to show compliance with federal
grant requirements.
Mayor Renner asked if this position would do any of the
independent audits being done by outside auditors. Mr. Sharp
stated this position would be doing this.
Councilman Tolby asked if this position has extra time couldthetimebeusedelsewhere. Mr. Lynch said yes but thefederalgrantmoneywouldnotbeusedtopayforthetime. Mayor Renner stated he felt the City has got along withoutthispositioninthepastwhentherewasmorefederalgrantmoneyanddoesnotfeelitisnecessarynow. He also askedwhowasdoingtheworknow. Mr. Pedrow stated various department heads are doing them nowandtheyarenotaccountantsandendupspendingmanyhourslearninghowtofillouttheformandhefeeltheCitywillgainbyhavingapersonwhoknowswhattodo. Councilman Falbo said he felt the position was needed. Councilman Bellah stated he felt the position should beapproved.
Mayor Renner asked for the scope of work and how it is to be
accomplished.
This item will be brought back to workshop with additional
information and for further discussions.
CENTRAL ARIZONA PROJECT ASSOCIATION SPECIAL ASSESSMENT
Glendale has been a contributing member of the Central
Arizona Project Association (CAPA) for several years. We are
assessed at the annual rate of 20 cents per acre foot of
Glendale's allocation of Central Arizona Project (CAP)
water. Our dues for 1986 were $2,816.60, which was paid on
March 17, 1987. CAPA lobbies on all matters pertaining to
CAP activities and oversight at the State and Federal
levels. Most of the valley cities, various water
organizations, several local banks, and private citizens
contribute to the CAPA. Due to a number of court challenges,
congressional attacks on the CAP funding request for fiscal
year 1988, and other related items of concern impacting ontheCAPandPlan6construction, the CAPA is considering a
special assessment in 1987. This assessment would be in
addition to the annual membership fee, and would be used to
meet additional expenditures that will be incurred in
defending our CAP and Plan 6 interest in the legislative and
judicial forums. Other valley entities have already
committed to make contributions.
David Iwanski, Water Resource Director, gave a brief
presentation.
Vice Mayor Heatwole asked what CAPA monitored. Mr. Iwanski
stated they monitored on behalf of CAP beneficiaries both at
the state and federal level.
Vice Mayor Heatwole asked if sending this agency interferedwithanyotherlevelsofgovernmentwithinthestate. Mr. Iwanski stated the Governors Office and the Department ofWaterResourceshavealwaysgiventheirblessingstotheactivitiesofCAPA. This item will be placed on a regular agenda for councilaction. INTERGOVERNMENTAL REPORTMarionPorchbriefedthe council on legislative issues. ADJOURNMENTTherebeing no further business the meeting was adjourned at3:50 p.m.
Deputy City Clerk