Sierra Vista budget update lists major capital items; city plans third Defense Communities grant bid for airport sewer project

City staff provided a fiscal year 2026 budget update that kept all funds balanced and highlighted a set of capital projects, including a $440,000 down payment for a new street sweeper, airport taxi-lane rehabilitation and generator replacements, and a treated-effluent recharge project south of Mosen Road. Staff also said the city will make a third application to the Defense Communities Infrastructure Program (DCIP) to fund sewer service at the airport, a project staff described as roughly an $8 million effort.

Why it matters: the capital projects and grant-seeking efforts support the city’s spaceport planning, airport infrastructure, and routine maintenance; federal grant approval would reduce the local funding burden for major sewer and airport work.

Budget highlights and grants

- Overall: staff said the FY2026 balanced budget total stands at $124,743,032 but may change before the tentative budget vote pending updated state-shared revenue figures.

- Street sweeper: staff added a $440,000 street sweeper with a 10% down payment funded from operations and maintenance adjustments; the current sweeper is 23 years old, has mechanical issues and scarce parts, staff said.

- Grants fund: staff listed carryover and planned projects including Garden Canyon Linear Park, Soldier Creek Park, veterans monument improvements (a congressional directed-spending request applied by the Sierra Vista Veterans Memorial Improvement Foundation), an OHV replacement through Arizona Parks and Recreation, and other grant placeholders.

Airport and spaceport-related items

City staff reported airport fund adjustments and added projects: taxi-lane rehabilitation between T hangars (project cost increase about $109,000), replacement of two generators ($220,000), and a replacement well pump. Staff said several apron and taxi-lane items are primarily funded through FAA and ADOT grants.

Defense Communities Infrastructure Program (DCIP) pursuit

Tony and other staff said the city will submit a third DCIP application in mid-June, contingent on the Department of Defense releasing the notice of funding. "We expect the submission should be mid June," said a senior staff member involved in the grant effort. Staff described the airport sewer project as about an $8,000,000 project to provide sewer service to airport facilities and said previous DCIP applications were not funded because reviewers emphasized "military value" in prior rounds. The city said it has refined its application to emphasize military and mission-related value, including the Joint Task Force border mission.

Riverstone recharge project and other capital notes

Chuck, a city staff member, described the Riverstone Project as an effort led by the Cochise Conservation and Recharge Network to move treated effluent south of Mosen Road for recharge near the river; staff identified a $925,000 grant from an organization described in the presentation as the Reppy Challenge that comes through the Department of Defense to fund design and permitting.

Refuse and equipment items

Staff noted two capital items for the refuse fund to carry into FY2026: 30-yard roll-off containers ($40,000) to be offset by rental revenue, and a truck packer rebuild ($40,000) to avoid replacing whole truck beds. Staff said payback timing for roll-off rental revenue depends on seasonal demand and rental rates and that a precise payback estimate was not immediately available.

Process and next steps

Staff said the tentative budget book will be posted May 23 and council members will receive one-on-one briefings the week of June 9, followed by a formal budget presentation for the public. Several projects described are contingent on grant awards and further study; the DCIP timeline staff described depends on DoD notices and Pentagon review.