Nogales Housing Authority adopts $1.63 million operating budget for 2025-26

The Nogales Housing Authority Board of Commissioners approved an operating budget for April 1, 2025, through March 31, 2026, during a regular meeting on March 5 in the City Hall Council Chambers. The board voted to adopt the authority’s proposed operating budget after a discussion of revenue estimates, expense allocations and when planned salary increases would take effect.

The adopted budget lists total revenue at $1,634,392 and total allocated expenditures of $1,655,670, leaving line-item balances and carryover adjustments in the authority’s accounting. Maritza, the housing authority director, reported that as of Feb. 28 the authority had expended $1,073,692.31 of the $1,655,670 allocated, with a remaining balance of $581,977.69.

Board members pressed staff on several specific lines, framing the budget discussion during the adoption vote. Commissioner questions focused on the subsidy estimate per unit month (PUM), sewer and maintenance spending and a preventive extermination plan. One commissioner noted that the PUM estimate in the proposed budget ($268.34 per unit per month) differs from the current-year number cited earlier ($295.21). Maritza said the PUM figure in the proposed budget is an estimate based on occupancy trends through December and accounting practices and not a final audited figure.

On sewer charges and utility timing, staff said the authority is now billed monthly rather than quarterly and that two quarters of sewer bills span the change in fiscal accounting; one quarter will be paid from the current fiscal year and the other from the next. Commissioners asked about ordinary maintenance and operations, where the proposed allocation ($318,006.60) is lower than last year’s allocation ($830,700) and last year’s actual spending; staff said some costs previously charged to operations will be reallocated to capital grants when appropriate and that the budget intentionally includes higher amounts in some lines to avoid shortfalls.

The board discussed planned salary increases included in the budget. Maritza said the budget includes a 1% increase for employees with less than 10 years of service as directed by human resources and finance; she said implementation timing will follow city personnel policy. “In the past, we have waited till July because . . . we go as employees of the city, and we have to follow the city personnel policy like everybody else does,” Maritza said. Commissioners agreed the adopted budget could be adjusted later if a larger citywide increase is approved.

The motion to approve the operating budget was moved and seconded during the meeting; the chair called the question and the motion passed. The board did not record a roll-call vote in the public discussion recorded in the transcript.

The board approved the budget as presented without amendments. Staff said any future changes — for example, a citywide salary increase greater than the 1% included in the plan — would be handled through a subsequent budget amendment or revision and brought back to the board for approval.