The Pinetop Lakeside Town Council on July 10 approved a 12‑month professional services agreement with James Vincent Group LLC to provide the town’s finance director services, unanimously designated a James Vincent Group principal to file the town’s annual expenditure limitation report with the Arizona Auditor General, and adopted a tentative fiscal year 2025–26 budget that reduces overall expenditures while keeping multi‑month reserves.

Town Interim Manager Rick Miller told the council the contract follows a 30‑day short engagement and that the firm was selected from five respondents. He said the contract is intended to deliver continuity and expertise while saving the town money compared with hiring a permanent finance director. “Financially, it’s actually less expensive to the town,” Miller said, summarizing the firm’s projection of about a $69,000 annual savings versus a full‑time hire.

The James Vincent Group’s account manager, Sarah, told the council the firm’s model is primarily remote supplemented by regular on‑site visits and support. She said the monthly fee in the contract is $7,750 and that audit support in addition to that monthly fee would be $10,000. Sarah described services the firm will provide: preparing monthly financial reports and budget summaries, assisting with the annual budget and audit preparation, performing or reviewing bank reconciliations to strengthen segregation of duties, and preparing an annual comprehensive financial report consistent with Government Finance Officers Association standards. She said the firm plans to be on‑site typically once a month and will respond to urgent requests by phone or email, aiming for same‑ or next‑business‑day turnaround.

Councilors pressed the firm and staff on several operational details. One council member asked whether the contract includes a short termination clause; Miller said the 12‑month contract as provided by the firm does not include a negotiated 30‑day termination clause and that the town would be obligated for the full 12 months as written. Several councilors and staff voiced concern about maintaining daily, on‑the‑ground responsiveness after moving finance functions to a primarily remote provider; Sarah said the firm has multiple staff resources to answer questions and noted the team’s recent 30‑day short‑term engagement record of responsiveness.

Council discussion also addressed staffing and internal control concerns. Sarah said the firm will review bank reconciliations and sign off on them when appropriate to add an independent review layer. Council members expressed concern that cuts in the finance department could leave the town short‑staffed for human resources and payroll tasks; staff noted a contingency line in the general services budget that could be used if additional in‑town support becomes necessary.

The council also acted on two related formal items. By unanimous vote, it approved Resolution No. 25‑1779, designating Gabe Boldra (a principal at James Vincent Group, as presented during the meeting) as the town’s chief fiscal officer to file the annual expenditure limitation report required by state statute. The council then held a public hearing and approved Resolution No. 25‑1780 adopting the tentative FY2025–26 budget and setting the spending limit the town will use while staff completes further adjustments before final adoption.

Budget highlights presented by the James Vincent Group staff included: total proposed expenditures across all funds of about $40.5 million for FY25–26 (a year‑over‑year decrease), total projected revenues across all funds near $27.5 million (a modest decrease from the current year), and projected reserves of about $3.3 million at year‑end, with just under $750,000 of that dedicated to the general fund. The tentative budget includes no cost‑of‑living or merit increases for employees in FY25–26; the staff count shown in the materials lists 53 positions budgeted in general fund areas, 11 positions in public works, three positions listed for advertising/promotions and two for solid waste. Major benefit drivers noted were PSPRS public‑safety retirement rates (reported as essentially flat year‑to‑year) and a projected health‑insurance cost increase of roughly 8 percent. Staff also noted a planned 10‑year capital plan and work to right‑size departmental budgets prior to the August final adoption hearing.

During the public hearing on the tentative budget, resident Larry McCormick urged the council to reconsider reductions to nonprofit funding, noting local senior center demand for meals and services. Council members acknowledged the difficulty of those decisions and said staff and council will continue to evaluate requests as they refine the budget before final adoption.

Formal motions to approve the James Vincent Group contract, to designate the James Vincent principal as the town’s chief fiscal officer for filing with the Arizona Auditor General, and to adopt the tentative budget were made during the meeting and carried unanimously. No council votes were recorded individually in the minutes; minutes and the recorded motions indicate unanimous approval on each item.

Next steps: staff will continue the budget refinement process through July and July‑end work with department heads and the contracted finance team, return to the council for the August final budget adoption hearing, and proceed with audit scheduling and preparation under the contracted services.