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Nogales staff warn water fund is $1.2M short; council told rates likely must rise

Nogales City Council · May 11, 2026
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

City staff told the Nogales mayor and council that the city’s water fund faces roughly a $1.2 million shortfall and recommended a loan from reserves and a short, staged rate increase; consultants will model options before the council adopts the tentative budget next week.

Sergio, the city’s budget presenter, told the Nogales mayor and council at a May 11 special workshop that the water enterprise is “in the hole” and needs about $1,200,000 to remain solvent. He said the city can either loan the money from the general‑fund reserve or the sewer‑fund reserve but emphasized legal structure and repayment terms must be worked out.

“The water fund is going to need about a $1,200,000 infusion,” Sergio said, adding that funding…

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