REGULAR MEETING OF THE CITY
OF GLOBE MAYOR AND COUNCIL
Tuesday September 26, 2017
6:00 PM   City Council Chambers
Given the information the city council received at last night's 
Regular Meeting of the Globe Mayor and Council, voting for 
Ordinance No. 849 to rescind the tax cap on single item 
purchases over $15,000 was a rational move. And that's 
precisely what they did in a 5 to 2 vote after the city 
manager's stunning display of faith.  There is no other way to 
describe a speech that was routinely prefaced with “I 
believe.”  Maybe that strong belief is what led him to present 
a financial argument that was so lopsided and biased, it 
would fall over in even a cursory examination.   For the 
record, we never did find out how many lost sales were 
projected-- and neither did the City Council.
The city manager spoke for quite a while about his figures 
and what he thought they represented, mainly that the city 
was losing a lot of money, and that he believes that if the tax 
cap was eliminated no dealerships would be lost and the city 
would gain a lot of money. He did acknowledge that some 
cities have similar dual taxation, but claimed it was never 
done as an incentive. He followed that interesting 
declaration by explaining that dual taxation was usually due 
to politics or trying to get new dealerships in town.    If 
trying to attract new dealerships by lowering taxes isn't an 
incentive, I can't imagine what else it could be.   In any 
event, using the tax cap as an incentive to lure anyone to the 
vacant Cobre Valley Motors spot sounds like a great idea to 
me-- one that wasn't mentioned in the “I Believe” sermon.  
Skewing the information given by McSpadden, in order to 
influence the council vote, the city manager waxed 
eloquently about it being a win-win for the city with bucket 
loads of incoming cash and no downside whatsoever.   He 
that as taxes rise, revenue falls-but it's easy to do when you 
don't include statistics on the estimated loss in sales.  
The sentiments of individual council members can be 
summed easily. They voted to eliminate the tax cap for the 
good of all the people.  And based on the “I Believe”s that 
they got from the city manager it was easy to believe.   
Mayor Al Gameros gave each councilmember an 
opportunity to speak. 
Lerry Alderman said, 'My moral obligation is to serve this 
community. I believe I must put the needs of the community 
above those of individual businesses'.  (Fine sentiments if 
raising taxes in fact benefitted anyone.) 
Freddy Rios said he didn't take the decision lightly. 'These 
are different times.  What worked back then doesn't 
necessarily mean it will work today. Actual numbers must 
prevail.' (Actual numbers might indeed prevail but there was 
no evidence that the numbers the council got were actual at 
all.) 
Roberta Lee Johnson said the city was losing significant 
revenue from big-ticket sales.  There was no mention of 
losing the sales entirely. She went on to state the tax cap 
benefits few businesses but small businesses still have to pay 
full tax.   (Do I even need to explain the illogic in that?)
Mike Humphrey said he has to think of the good of the 
whole and thinks they should look at it again next year.  
Charlene Giles erred along the same lines…  she said she 
has to think about all the residents because we represent all 
the people.   Hmm.. maybe I do have to explain the illogic in 
that.
All the people are benefitted when local sales increase.  
Everyone in the community loses when local sales decrease.  
Maybe Giles should look into the Laffer Curve. 
Mayor Al Gameros and Vice Mayor Mike Stapleton voted 
to keep the cap.   Stapleton thanked McSpadden for the 
tremendous work they've done in Globe.  He said he 
received a lot calls on the matter and felt the community was 
on the side of the cap remaining.  He was too.  
Gameros quipped that he and the council learned a lot about 
the car business over this vote.  Above that, he said, 'We're 
moving to market and brand this community.  We buy local 
and our community benefits from it.  I support local 
business.'  The mayor said he would consider a sunset of the 
tax cap in the future, but not now.  
Virtually every community leader promoting economic 
growth in the area was against eliminating the cap.  Karalea 
Cox from the Southern Gila County Economic Development 
Corporation said, 'Being competitive is essential.  The city 
should support local business with a tax advantage.  
Removing the cap is detrimental to the local economy.'  You 
can read the letter she wrote here. 
Ellen Kretsch from the Globe Miami Chamber of 
Commerce, who previously read a letter into the record in 
support of the tax cap, also spoke briefly, saying, 'A 
pro-business climate is essential to our local community.' 
Fernando Shipley was the mayor of Globe in 2008 when 
the city, like most of the country, faced a severe economic 
downturn.  He faced the possibility of laying off dozens of 
employees.  When the big Chevy dealership, a part of the 
community for decades, was forced to stop selling new cars, 
Shipley met with the two other new car dealers and came up 
with the tax cap.  It was implemented in 2011 and it worked, 
said Shipley who noted both dealerships are still here.  
Mayor Gameros asked if there was a sunset clause attached 
to the cap originally.  Shipley said he couldn't recall one. 
Udon McSpadden spoke at length.  He said he presented a 
lot of financial information to the city and it was all good.  
'The incentive has worked.  Eleven new vehicles were just 
delivered to Safford for Freeport's fleet. If the cap is 
eliminated, the average price per vehicle for fleet sales will 
rise over $400.  Keeping the cap in place will keep sales 
local.'   He implored the council not to remove it. 'We want 
to stay competitive. The mines have seen hard times over the 
last few years and will be replacing their vehicles in the near 
future. If the sales tax cap is eliminated we will lose millions 
of dollars in sales. Since the tax cap was established we've 
doubled the size of our staff from 17 to 35 and have done 
one million dollars worth of renovation on Route 60 with 
working capital, because loans weren't available as the land 
is in a floodplain.   When the tax cap was initiated, we 
helped out further by dropping the $500 dock fee, which 
99% of dealers use all the time.”
Alderman insinuated that McSpadden had to move to 
Highway 60 to fulfill a Ford Motors requirement, asking 
him, 'Didn't you have to do that anyway?”    McSpadden 
explained that it was never required, Ford preferred it but 
didn't mandate it.  
Plenty of disappointments to go around, but no real surprises 
at the meeting given the way the issue was presented by the 
city manager.
On to happy news, Vice Mayor Mike Stapleton mentioned 
that Vida E Café is now open after a delay of many months.
Mayor Al Gameros recognized the presence of former 
mayor Fernando Shipley and Gila County Supervisor Tim 
Humphrey, and the 6th grade class from Destiny School 
who won Best of Show at the Gila County Fair for their 
five-foot long model of historic downtown Globe. (Check 
Gameros mentioned the joint town meeting with Miami went 
well. They're planning to have one every three months.
City Clerk Shelly Salazar given an award and a bouquet of 
flowers for her 16 years of service to the city of Globe.  It 
was also announced that City Engineer Jerry Barnes' 
surgery went well and he's expected back in town shortly. 
Maryn Belling gave a presentation on the United Fund. 99% 
of their funding comes from local businesses. They've 
supported the community since 1964, raising over a million 
dollars since 2012.  Their 2018 goal is to raise $650,000 for 
the support of 30 different agency projects including Gila 
House, CVCA, Cobre Valley Youth Club and Horizon 
Domestic Violence Safe House.  Not mentioned was the 
Taliesin West studio project.   United Fund will no longer 
support it. $400,000 had previously been committed. 
Globe Police Chief Mark Nipp gave a department update 
since the 2015 audit.  The department is currently operating 
at minimum staffing levels. Two sworn positions were 
eliminated because they remained vacant for two years, 
which enabled Nipp to raise officer salaries. But he's still 
having staffing problems as two officers are on extended 
medical leave and two are on military leave.  Four new 
officers are now needed.  There was a plan to hire two 
civilian employees, but it hasn't worked out well. Nipp 
recommended the addition of two sworn officer positions at 
a cost of $40,000 each.   There are only five people in the 
police reserves currently and most have full time jobs so 
they can only work occasionally.   
The contract to have the Sheriff's Office handle 911 calls for 
Globe has produced mixed results.  It is undeniably a cost 
saver and money is not available to handle it in house, but it 
has created customer service and record management 
problems. Due to the lack of IT support, Globe is often 
unable to search records. 
The audit highlighted the need for a new facilities building. 
It would be cost prohibitive to rehab the current building, but 
there is no money available for a new structure.  Nipp also 
said that evidence storage is a big problem.  The storage 
locker is completely filled and filing is a mess.  It takes a day 
to unload, and by then there's no time to search for what is 
needed.
Radios are also a problem.  There are two systems. PD1 is 
housed in a private business, which is closing. The owners 
have agreed to leave the electricity running until a new 
location can be found.  PD2 was on a tower that collapsed.  
The phones are on an old PBX system which is so bad that 
the department has to forward calls to employee cell phones. 
 The records clerk carries a cell phone and takes notes. When 
she's on the phone, Nipp would like to find a way to have the 
call forwarded a second time to an open phone.   He said that 
a new VoIP system is under consideration, but the whole 
citywide system needs to be replaced.
The Council passed a one-time PSPRS, Public Safety 
Personnel Retirement System, payment of $1,115,113.25.