CC - Agendas - City Council - REGULAR - 8/14/2018

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Prescott City Council Voting Meeting — 07/10/2018 Page 5 9. REGULAR AGENDA A. Approval of Acker Trust Board Grants for Fiscal Year 2019. Parks and Recreation Director Joe Baynes presented on the request for approval to fund the following programs for FY019: the Chaparral Arts for $2,000.00; the Mountain Chordsmen for $2,000.00; the Prescott Pops Symphony for $3,000.00; the Yavapai College Foundation for $2,500.00 and the Yavapai Symphony Association for $3,000.00. COUNCILMAN SISCHKA MOVED TO APPROVE AGENDA ITEM 9.A; SECONDED BY COUNCILWOMAN SCHOLL: PASSED 6-0. B. Approval of City Contract No. 2019-040 with Al Holler and Associates for one year of tax audit services for $42,000.00. Funding is available in the Revenue Funds. Budget and Tax Manager Lars Johnson presented on the request for approval with the Al Holler and Associates for a one year tax audit service contract. The city's in-house auditor retired in June and staff felt that contracting outside services would be great way to manage tax audit services. They are not proposing a position but to have more of a customer service approach. The business license position will help businesses understand the process. Councilman Goode said having outside auditors is a solid business management decision. He would recommend rotating them each year. Since keeping this position, the auditor cost will be an additional cost. Mr. Johnson said they would like to try this company for a year. Finance Director Mark Woodfill said this is the auditing of the local businesses. There was a gap with the sales tax auditor. The position has been downgraded and will not cost as much. The additional cost will be recovered with an outside auditor and will bring an increase in revenue. Councilman Blair inquired what the state is charging the city to manage the city's money. Mr. Woodfill said it is for all of the state shared revenues. Councilman Blair stated that he still has heartburn about being a charter city. We tax ourself and take that money and bed tax and license money and send it to the state. Councilman Blair inquired if the city could file a lawsuit with the state of AZ. City Attorney John Paladini said the current case law that would indicate that this type of lawsuit wouldn't be successful. There is a model city tax code that we have to adopt. What is left for charter cities is real estate transactions and local elections which elections are also being taken away with forcing charter cities to the consolidated elections. Concilman Blair said he is not happy with the sales tax. Councilman Goode inquired if the Transaction Privilege Tax (TPT) has been challenged by other charter cities. Mr. Paladini said it hasn't been directly to his knowledge. Councilman Goode asked if there is a weakness in the City Charter that does not reference TPT collections. Mr. Paladini stated there are limitations. The charter did not