Discussion and possible action on any and all matters regarding payment of the judgment in the tax case of APS versus the City of San Luis and authorization to use City Council Contingency Budget.  (Kay Marion Macuil, City Attorney)

At the City Council Special Meeting on September 20, 2017, City Council did not authorize appeal to the Arizona Supreme Court of the tax case involving APS.  Both at the Trial Court level and the Court of Appeals level, APS provided evidence of attorney fees in excess of $75,000.00 at each level. For the prevailing tax payer, Arizona law caps attorney fees in tax cases at $75,000.00.  The law also allows the prevailing tax payers costs at each level.  Costs are things like Court filing fees, cost of mailing, etc. The Courts at both levels awarded $75,000.00 for a total of $150,000.00 in APS attorney's fees.  Costs were awarded  at the Appeals Court level  of $263.66 for a total of $150,263.66 principal payment.  There is interest, 4.5% at the Trial Court Level starting July 12, 2016 and 5.25% starting September 14, 2017 at the appellate level.  Since appeals were pending, no payment on the judgments were required so interest accrues.  With interest the total amount is $155,206.08.