Nogales council adopts final FY2025–26 budget, removes deputy city manager funding

The Nogales City Council adopted the city’s final fiscal-year 2025–26 budget on June 24, approving the budget after a period of discussion and an amendment to remove funding for a proposed deputy city manager position.

Councilmember Doyle moved to table the budget, citing late delivery of budget documents and perceived inconsistencies in prior months’ financial reporting. Several councilmembers and the city manager responded that the budget had been discussed in multiple study sessions, that department directors had met with finance, and that some items (including insurance increases and enterprise-fund details) had been explained through prior meetings. City staff said auditors were scheduled to be on site in late July and returning in August for follow-up.

After discussion, Councilmember Doyle withdrew the motion to table. The council then considered an amendment to remove $130,000 in funding earmarked for a deputy city manager position; a motion to amend and approve the budget with that removal passed by voice vote. City Manager Joel Kramer said the $130,000 would be returned to reserve/contingency if removed.

During the discussion Kramer and the finance director described a budget accounting approach change for health-insurance budgeting (budgeting full family coverage per position to create a buffer for employee turnover) and said contingency/reserve was projected at roughly $11 million for the coming fiscal year. The council adopted the final budget before the July 15 statutory deadline, as noted by city counsel during the meeting.

The final budget approval included other staff‑noted movements of positions (for example transferring two meter‑reader positions from the water/public-works budget to finance) and the council directed staff to return for additional study sessions on WIFA (water infrastructure financing) rates and capital items at a later date.