Nogales council adopts FY2025–26 budget after removing $130,000 for deputy city manager

The Nogales City Council on June 24 adopted the city’s final fiscal year 2025–26 budget after voting to remove $130,000 in funding proposed for a deputy city manager position.

The change came after a motion to table the budget failed and council members debated the timetable and underlying financial details ahead of the July 15 legal deadline. Councilman Doyle moved to remove the funding; Councilman Bojorquez seconded the amendment, and the motion passed.

Council members and staff discussed several budget elements during the meeting, including the city’s contingency (reserve) balance, insurance cost increases, personnel reassignments and capital items. Finance Director Jean King told the council the city would budget for health insurance at full family coverage for each position this year to avoid gaps if employees leave and are replaced with employees who choose family coverage.

“Please come and see me. My door’s always been open,” City Manager Joel Kramer told council members as he reviewed the budget and the schedule for upcoming capital and administrative work. Kramer said he would remove the deputy city manager funding and return the money to reserves.

Councilman Doyle, who initially moved to table the adoption to allow more review, raised concerns about inconsistencies and past auditing issues and said the council should have more time to examine finance records. “We need we need to go further into these things,” Doyle said during public discussion, pressing staff on audit timing and line‑item changes.

Jean King summarized the outreach and review timeline: departments and directors met with finance earlier in the year, the draft budget was presented at two study sessions, and auditors are scheduled to be on site beginning in July with follow‑up work in August.

Key fiscal clarifications recorded during the meeting: - The city’s contingency (reserve) was described as “a little over $11,000,000” for the coming budget, up from about $9,000,000 the prior year, a $2,000,000 increase reported by staff. - Health insurance costs were budgeted with a projected 25% increase; staff said they set aside about $500,000 to absorb those increases. - Two meter readers currently funded in the water department will be moved to finance because of reporting and revenue work; the shift is a budget transfer rather than a net new hire. - A grants coordinator position was included in finance to centralize grant management across departments. - The council approved a five‑year lease‑to‑own arrangement for three new fire vehicles; staff reported the budget carries the first two years’ payments to reduce later payments.

Procedural notes and next steps: the attorney reminded the council that the legal deadline for adopting the budget is in mid‑July (July 15), limiting the window to re‑advertise and delay adoption. After the vote removing the $130,000 line item for deputy city manager, the council approved the final budget as amended.

The council did not provide a roll‑call vote tally in the public record excerpt; mayoral and council members stated “Aye” during the oral vote and the presiding officer declared the motion passed.

Staff said auditors will begin on‑site fieldwork in July and return in August for follow‑up steps; Kramer said additional study sessions on WIFA financing and rate discussions will be scheduled ahead of future meetings.

The council’s adoption takes effect for the fiscal year beginning July 1, 2025.