Eloy City Council Regular Meeting - November 27, 2023

The Eloy City Council held a regular meeting on Monday, November 27, 2023, beginning at approximately 6:07 p.m. in the Eloy City Council Chambers. The meeting covered consent agenda items, a presentation on a potential general obligation bond election, and the appointment of a new vice mayor. Several items were discussed in detail, including employee bonuses, board term limits, and long-term infrastructure funding.

Consent Calendar

• Items A and B approved unanimously:
  • Approval of minutes from the November 13, 2023 regular meeting.
  • Acceptance of a Homeland Security Grant Program award (grant #230303-01) from the Arizona Department of Homeland Security in the amount of $58,160.00 for the purchase of five P25 digital radios for the Eloy Police Department.
• Items C and D were pulled for separate discussion (see below).

Public Comments & Testimony

• No members of the public addressed the council. The mayor noted the absence of public comment after calling for it.

Discussion Items

• Item C – One-Time Incentive Payment (Consent Agenda Pulled):

  • Council discussed a $500 bonus for all city employees as part of the FY2023-2024 budget (Resolution No. 23-1559, total budget $58,488,315). The bonus represents the remaining 1% of a 5% compensation increase (4% COLA plus 1% bonus).
  • Staff clarified that eligible employees include full-time, part-time, contract employees (e.g., former community development director John Blaming and economic development specialist Jeff Ehrman), and council-appointed positions (city manager, city clerk, city attorney, city judge). The city attorney stated he had never received such a bonus in 18 years and suggested excluding contract employees.
  • Council members raised concerns about precedent for appointed positions and contracting. A conflict-of-interest discussion occurred for council members whose spouses work for the city; the city attorney noted that under ARS §38-502, a remote interest (class of persons over 10 members) does not constitute a conflict.
  • Vote: Motion to approve Item C passed unanimously (7-0).

• Item D – Ordinance Amendment on Board/Commission Term Limits (Consent Agenda Pulled):

  • The proposed ordinance (No. 23-953) would set a one-year sit-out period before reappointment to boards/commissions. Council debated the length and clarity of term limits.
  • Councilmembers expressed support for a simpler rule: three consecutive three-year terms (nine years total) with no possibility of return. There was also discussion about whether service as an alternate member should count toward term limits.
  • Action: Council voted (7-0) to take no action on the ordinance but directed staff to revise the language to remove “consecutive” and state “three terms total,” and to clarify rules for alternate and ex officio members. Staff will bring back a revised ordinance at a future meeting.

• Business Item A – Presentation on General Obligation Bond Election:

  • Nick Dodd of Raymond James and bond attorney Zach Sakis presented options for a potential GO bond election in November 2024. The city has no current secondary property tax or outstanding GO bonds.
  • Key points:
    • Current bonding capacity is about $43 million (20% category for infrastructure, parks, public safety, etc.; 6% category for general purpose improvements).
    • Historical assessed value growth averages 4.15% per year (10-year average).
    • Scenarios showed an average tax rate of $1.83 per $100 assessed value for a $43 million bond issuance, costing a homeowner with a $250,000 limited property value about $459 per year ($38 per month).
    • Pros: strongest credit, lowest interest rates, built-in repayment through unlimited secondary property tax. Cons: requires voter approval, uncertain outcome, election costs, and timing constraints (election must be called by March–April 2024 for November 2024 ballot).
  • Council discussion emphasized the need for a clear community vision, project prioritization, and a professional survey before proceeding. Council also considered the risk of voter fatigue in a presidential election year.
  • No formal action taken. Staff was directed to continue exploring the bond option, conduct a survey, and schedule a council retreat (likely early February 2024) to develop a vision and identify priority projects for potential inclusion in a bond election.

• Business Item B – Appointment of Vice Mayor:

  • Councilmember Sarah Curtis was nominated by Councilmember Snyder and seconded by Councilmember Tarango. She was elected unanimously (7-0) to serve as Vice Mayor for a one-year term beginning December 1, 2023. She accepted the role.
  • Outgoing Vice Mayor Rodriguez thanked the council for the opportunity.

Key Outcomes

• Consent Items A and B: Approved unanimously.
• Item C (Employee Bonus): Approved unanimously. All city employees, including full-time, part-time, contract, and council-appointed positions, will receive a $500 bonus.
• Item D (Term Limits Ordinance): No action taken on the proposed ordinance. Council directed staff to revise the language to limit board/commission members to three total terms (removing “consecutive”) and to address alternate/ex officio rules; revised ordinance to be brought back.
• Bond Election Discussion: No formal action. Council directed staff to continue research, conduct a community survey, and prepare a vision/project list for further discussion at the upcoming council retreat.
• Vice Mayor Appointment: Councilmember Sarah Curtis appointed as Vice Mayor for one year, effective December 1, 2023.