Nogales budget workshop flags unpaid construction, unpaid engineering on WIFA projects, audit delays and a proposed tiered salary increase

The Nogales City Council spent the May 14 study session reviewing city finances, unfinished water and sewer work paid for with a Water Infrastructure Finance Authority (WIFA) loan, delays in the city audit, business‑license enforcement and a proposed tiered employee pay plan.

Jean, the city’s chief financial officer, presented year‑to‑date numbers through March and told the council, “For our general fund for revenues, we are actually sitting at 91% of our budget at $24,798,498,” and reported general‑fund expenses and enterprise fund numbers for water, sewer and refuse. Jean said the water fund had collected $2,909,949 (83% of budget) and expended $3,409,179 (71%), leaving revenues below expenses by “499, almost 500,000.” She said the water carryover is $1,178,166 and warned the city is drawing on that carryforward when expenses exceed revenues.

City Manager Joel Kramer led much of the discussion on WIFA projects that funded engineering and plans for dozens of water and sewer streets. Kramer repeatedly told the council that many engineering designs were paid for but few projects completed: “How many did we get complete? 5,” he said when summarizing the…