For the purposes of calculating the fee, City practice has been to use the Secondary Net Assessed Value (sometimes referred to as the Full Cash Value) as provided by the Coconino County Assessor. Beginning in the 2015 tax year, changes in Arizona Tax Law were implemented due to the voter approved amendment to the state constitution known as Prop 117. This measure compelled Cities, Towns, and Fire Districts to use the Primary Net Assessed Value (sometimes referred to as the Limited Assessed Value.) In discussing the Lockett Ranch IGA with the City, it was pointed out that the methodology used by the City still used the Full Cash AV. In discussing this issue with the Finance Director Brandi Suda, she confirmed that the City had used the Full Cash AV but also converted to the Limited AV as required by Prop 117.
Staff believes the intent of the City Code is to apply a fee that is composed of applying the combined Primary and Secondary Tax rate to the same AV methodology used by the city and paid by (city residents) as applied to the protected contracting party and then add an 18% surcharge.