Cochise County adopts tentative $293.1 million budget, schedules truth-in-taxation hearing

The Cochise County Board of Supervisors on July 1 adopted a tentative fiscal year 2025–26 county budget totaling $293,120,335 and set a truth-in-taxation hearing for 10 a.m. July 8, 2025, in the Board of Supervisors Hearing Room at 1415 Melody Lane, Building G, Bisbee.

The board adopted the tentative budget after a presentation from county staff outlining revenues, expenditures and key assumptions. The tentative plan includes funding the general fund and special revenue funds, maintains a contingency reserve and identifies several staffing and benefits changes countywide.

The tentative budget was presented by Miss Gilman, who summarized revenue sources as property tax collections, the county's share of state-shared sales tax, Highway User Revenue Fund receipts and vehicle license revenues, plus fees from justice courts and other departmental revenues. Gilman told the board the budget includes an $18,780,000 contingency (about 17% of the tentative total) to protect against revenue shortfalls and state budget changes.

Gilman outlined several cost pressures baked into the tentative budget: a $1,500,000 market adjustment for pay across most county departments, an estimated $3,400,000 county share of an Arizona Long Term Care System (ALTCS) cost shift reported by the Legislature, and increased health benefit costs of roughly $54,000. The Southeast Arizona Communications Center (9-1-1 dispatch) contribution was increased by about $21,000, and the public health mosquito monitoring contract rose by $4,500. Gilman also said justice-of-the-peace salaries will rise under the formula tied to superior court judge pay increases.

Board discussion focused on taxpayer impacts, the county's statutory expenditure limit and pension liabilities. Chairman Antonari stressed that the board is proposing a roughly 2% reduction in the primary property tax rate as proposed (reported in the meeting as 2.6736) while noting that assessed-value increases could still trigger a required truth-in-taxation hearing. Antonari said returning revenue to the general fund (rather than moving it into special districts) would allow the county to pay down pension liabilities rather than offloading costs through special districts.

Supervisors discussed the county's pension unfunded liabilities and plans to make additional contributions. Gilman reported an unfunded liability figure of approximately $29,300,000 for the county's public safety retirement tiers shown in the presentation and said the budget includes a planned additional contribution of $2,500,000, with a possible increase to $5,000,000 depending on year-end results.

Supervisor Crosby moved to adopt the tentative budget and later moved to set the truth-in-taxation hearing. Both motions passed unanimously, 3-0.

In other business the board announced a possible special executive session to review a proposed settlement in a large tax appeal, Michael E. Piper v. Cochise County, immediately following the public meeting.

Votes at a glance: - Motion to adopt tentative FY2025–26 county budget in the amount of $293,120,335 (motion text as placed on the record). Mover: Supervisor Crosby. Vote: Antonari — aye; Gomez — aye; Crosby — aye. Outcome: adopted, 3-0. (Motion and amounts discussed on the record; presentation materials cited by staff list special revenue at $182,485,750 and general fund near $110.6 million.) - Motion to set a truth-in-taxation hearing pursuant to ARS 42-17107 for 07/08/2025 at 10:00 a.m. in the Board of Supervisors Hearing Room. Mover: Supervisor Crosby. Vote: Antonari — aye; Gomez — aye; Crosby — aye. Outcome: approved, 3-0.

Why it matters: The tentative budget sets the county's spending framework for the coming fiscal year and begins the formal public process that may include a truth-in-taxation hearing if revenues tied to assessed values increase. The board's emphasis on contingency funds and additional pension contributions reflects concern about state cost shifts and long-term liabilities.

The board will hold the scheduled truth-in-taxation hearing July 8 to receive public comment on the proposed tax levy. The county also announced a possible subsequent executive session to consider settlement of a pending tax appeal.