Sierra Vista reduces $36M liability without raising taxes or increasing sales tax

In a recent special board meeting, Cochise County officials discussed significant financial matters, particularly focusing on the county's unfunded liabilities and budget planning for the upcoming year. A key highlight was the county's proactive approach to managing its retirement liabilities, which currently stand at approximately $36 million. This figure includes obligations related to the Correction Officer Retirement Program (CORP) and the Election Officer Retirement Program (EORP).

County officials emphasized their commitment to reducing this liability without raising taxes. They reported a reduction of about $4 million from the previous year and aim to decrease the total liability to around $30 million in the coming year. This strategy contrasts with other counties that have opted for sales tax increases and bonding to manage similar liabilities, which often leads to additional interest payments.

The board also reviewed the tentative budget, which outlines total revenues of $110 million and special revenue funds amounting to over $293 million. A truth in taxation hearing will be necessary if the board decides to maintain the current tax rate or implement a slight decrease due to rising property valuations.

These discussions reflect the county's ongoing efforts to maintain fiscal responsibility while addressing the financial needs of its retirement programs, ultimately aiming to benefit residents by avoiding tax increases. As Cochise County continues to navigate its financial landscape, the focus remains on transparency and accountability in managing public funds.