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Tax Code Hot Topic for Globe City Meeting

Several agenda items were approved at the June 28 Globe City Council meeting. Proposed changes to the Model City Tax Code drew the lengthiest discussion of the meeting between City Council members and citizens.

Annie Vaugier, Managing Editor
Posted 7/5/17

Several agenda items were approved at the June 28 Globe City Council meeting. Proposed changes to the Model City Tax Code drew the lengthiest discussion of the meeting between City Council members and citizens.

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Tax Code Hot Topic for Globe City Meeting

Several agenda items were approved at the June 28 Globe City Council meeting. Proposed changes to the Model City Tax Code drew the lengthiest discussion of the meeting between City Council members and citizens.

Posted

Several agenda items were approved at the June 28 Globe City Council meeting. Proposed changes to the Model City Tax Code drew the lengthiest discussion of the meeting between City Council members and citizens.

Consideration to post a 60-day notice alerting the public that the City of Globe intends to eliminate the $15,000 cap on City Retail Tax of Tangible Personal Property and/or implement a City Use Tax brought City Council members and local auto dealership owner Udon McSpadden to a crossroads of the minds. McSpadden and the council discussed  how the changes to the retail tax cap would impact their respective priorities.

In 2011, Council passed a cap of $15,000 on taxes collected on sales of purchases of tangible personal property sold at retail, per item, as an economic development incentive, especially for local auto dealers.  A recent review by Albert Holler showed a loss to the City of Globe ranging from $90,000-$120,000 annually at the current tax cap rate.

Council held firm that removing the cap would benefit city revenue. McSpadden shared that the removal of the per item cap would affect sales currently incentivised by his dealership. The tax cap allows him to offer lower total purchase pricing along with no added doc fees.

The motion to post the 60-day notice was passed. Council advised McSpadden and anyone else to submit to Council supporting documents showing any potential hardship of the impending cap reversal during the 60-day posting period. Council will reconvene to discuss any public responses received following the 60-day period.

Consideration to renew the Professional Service Contract with Judge John Perlman, City Magistrate, in the amount of $42,164.40 was approved. The approved amount does not give Judge Perlman an increase in overall compensation but does cover FICA and Medicare deductions incurred when his employment status changed from city employee to independent contractor to avoid any possible conflicts of interest in court cases. Judge Perlman shared that his service to the city of Globe was a great honor and privilege and thanked Council for compensating him for the added costs.

Council approved the Engineering Design contract with Westland Resources, not to exceed $102,493.

Kenny Sellick, Water/Wastewater Superintendent, said the cost for the design of the FY2017 Water Fund Project will be funded through 2017-18 with possible reimbursement through WIFA.

It was moved and approved to terminate the license agreement between the City and Boys & Girls Club of the East Valley/Globe Branch. City agreed to assign the license agreement to the Signal Peal Community Foundation for an interim of 30 days pending the registration of the name change to Cobre Valley Youth Club.

The inclusion of $61,000 in the FY2017-18 General Fund-Administration Budget for the Cobra Valley Transit program was approved. Data was presented to show that 80 percent of the trips throughout the region either start or end in Globe.

Many residents use the service for medical appointments and shopping.

A $70,000 grant from Freeport-McMoRan Foundation and the Globe-Miami Community Investment Fund Committee was accepted by Mayor Al Gameros and Council.

The funds will support the Besh Ba Gowah Revitalization Project.