Minutes of the Special
Price City
Council Meeting
City Hall, Room 207
September 12, 2006, 2:00 p.m.
Present:
Mayor Joe L. Piccolo
Councilmembers:
Richard
Tatton Pat Larsen, Finance Director
Jeff Nielson Nick
Sampinos, City Attorney
Kathy Hanna-Smith Lisa Richens,
Accounting
Rick Davis Laurie Tryon, City Recorder
Nick
Tatton, Community Director
Also Present: Mike Milovich, Carbon County
Commmissioner
Delynn Fielding, Carbon County
Excused: Councilmember Jeanne
McEvoy
1.
ZAP TAX WORKSHOP-
Price City
has determined that it is in the best interest of the City and its residents to
pursue a referendum allowing registered voters within Price City
to consider the imposition of an additional 0.10% sales and use tax. This tax is referred to as the Botanical, Cultural, Recreational
and Zoological sales and use tax, or ZAP tax. The purpose of the ZAP tax
is to generate revenues to maintain, enhance and construct recreational facilities
and projects that are owned and operated by the City. In order to avoid an increase in general
property tax to maintain the current level of service, the City has determined
that a ZAP tax would allow for approximately 50% of the necessary revenue to
come from persons residing outside of Price City
who purchase goods and services within the City.
Mike Milovich, Carbon County
Commissioner feels that in order to implement the ZAP tax within Price City
and Carbon County, a two-year agreement needs to be
put into place. At the end of the two-years, the agreement could then be
assessed for changes or updates necessary to continue with the ZAP tax as
planned without interruption. Without the two-year limit, future commissioners
would be bound by a decision they may or may not be entirely comfortable
continuing. The county has other large projects in the making and with the
changing economy, a 4 or 8 year agreement is just not something Commissioner
Milovich is comfortable doing. Price City
would have a difficult time with the two-year limit as the ZAP tax would just
be getting off the ground and then be halted for reevaluation. Commissioner
Milovich sees the tax as subject to the economy and if the economy were to go
down, the ZAP tax would disappear. He would like to see Price City
check into a broader chance to raise taxes and doesn’t see this as a chance to
raise a lot of money. Commissioner Milovich would rather see an increase in
property taxes instead of this type of tax. Price City
has researched the ZAP tax quite extensively and is ready to implement this tax
as soon as possible. This money would be a good way to offset the current recreation
and pool costs. Raising additional money is not the issue. The issue is offsetting
costs as much as possible in order to reduce debt. A property tax still may be
necessary in the future, but for now Price
City can reduce costs and
offset expenses associated with the pool and recreational facilities by
implementing the ZAP tax. Councilmember
Hanna-Smith recommends the tax knowing that Price City
cannot always protect itself from economy and revenue changes and cannot foresee
everything in the future. Mayor Piccolo also recommends this tax as it will
benefit Price City
and Carbon County with recreational facility costs
such as trailhead expansion and the pool. He would like to become a team player
with Carbon County and adopt the ZAP tax now. When
the two-year time period ends, the Mayor would like to see the tax continue
without interruption. City Attorney, Nick Sampinos is concerned with the two-year
period as the County may change their minds, voters could then vote no and Price City
would be at a loss. If the County wants to impose the ZAP tax without Price City,
a two-year notice may need to be given to Price City
and stated so in the agreement. Commissioner Milovich recommended setting up an
inter-local agreement to share revenues in order for Price City
to continue to collect their share if the County discontinues the tax and to have
the collection based on population of surrounding cities. Price
City needs to do a
resolution now in order to get it on the ballot and needs County approval. The
County has until Oct. 24th to grant approval to the City which
doesn’t give us a lot of time to educate the public.
The City Attorney was directed to
prepare a proposed interlocal agreement concerning this issue for presentation
to the County Commission.
Meeting adjourned at 2:48 p.m.
APPROVED:
_______________________
Joe L. Piccolo, Mayor
ATTEST:
______________________
Laurie Tryon,
City Recorder