Council adopts $129.24 million budget, holds public hearing on proposed property tax rate of $0.1018 per $100

SIERRA VISTA, Ariz. — The Sierra Vista City Council on July 24 approved the city's fiscal year 2025–26 operating budget of $129,244,638 and held a public hearing on a proposed property tax levy that city staff said is set at 0.1018 per $100 of assessed value. City staff said that rate is expected to generate an estimated $394,973 for the fiscal year. The council also approved a separate resolution stating the city's official intent to reimburse certain capital expenditures with tax-exempt financing if later needed.

The proposed property tax rate and revenue estimate were presented by Nella Jin, a city staff member, during the statutorily required public hearing. Jin said, "For FY26, the rate is proposed at 0.1018 per $100 of assessed value, which will generate an estimated $394,973 this fiscal year. The slight increase in revenue from the previous fiscal year is due to new construction, and the rate was adjusted slightly lower in FY26 due to increased valuation of taxable property, so that the actual dollar amount paid by citizens in FY26 is the same as what they'll pay from FY25." Because of that adjustment, Jin said the city is not required to publish truth-in-taxation notices for the levy.

The council then voted to adopt the FY2025–26 operating budget by passing Resolution 2025-61. Councilwoman Faye Jackson moved the resolution; a second was recorded but not identified in the meeting record. The motion passed, with the presiding officer noting there were no opposing votes.

As part of the budgeting work, the council also approved Resolution 2025-062, described by a city staff member identified in the record as Mr. Felix as a procedural step under federal tax rules. Felix explained why the city adopts an "official intent" resolution: "The IRS regulations do require us to say that we intend to finance the items in order to do this legally," he said, adding that the city typically waits until late in the fiscal year to decide whether to issue tax-exempt financing so it does not hold funds and pay interest before equipment or projects are in hand.

City staff told the council that if the city elects to finance equipment, it will solicit bids in June and return to council the first meeting in June of the following year to complete any reimbursement-style, tax-exempt financing. Felix said that timing generally saves the city money because it avoids paying interest on funds while awaiting deliveries that can be delayed up to a year.

During his city manager report, the city manager reported several project updates that relate to the adopted budget: a solicitation for water-resources engineering and groundwater modeling remains active; bus-stop and shelter enhancements funded by the Federal Transit Administration were awarded to a firm identified as KENG and are pending contract execution; a shared-use path funded by the Federal Transit Administration from State Route 92 to Foothills is expected to kick off and be completed by the end of the year; and the airport lease with Blackstar Orbital has been signed and executed. Staff also reminded the public that the spotlight breakfast will be Aug. 12 at the Cochise College Student Union Community Room.

The council was told the final step in the property tax process will be a formal levy adoption vote at the council meeting scheduled for Aug. 14, 2025, at 5 p.m. in the council chambers.

Discussion versus formal action: Jin's presentation and Felix's explanation were recorded as staff reports and discussion; the council's adoption of Resolution 2025-61 (final budget) and Resolution 2025-062 (official intent to reimburse) were formal actions that the council approved during the July 24 meeting. The public hearing on the property tax levy was opened, received no public comments, and was closed.

The meeting record does not show individual roll-call votes by name for the two resolutions; the presiding officer announced each motion passed with no opposition.