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Bisbee council adopts tentative FY26‑27 budget as Lavender Pit path seeks $600,000 from city
Summary
The Bisbee City Council unanimously adopted the tentative FY26‑27 budget May 5. During budget discussion Bisbee Bikeways warned the Lavender Pit path — backed by an $8.5 million federal grant — faces a roughly $1 million bid shortfall and asked the city to identify about $600,000 to keep construction on a July schedule.
The Bisbee City Council on May 5 adopted the tentative fiscal year 2026–27 budget and heard pleas to bridge a funding gap for the Lavender Pit path federal project.
Interim City Manager Ashlee Coronado introduced Resolution R‑26‑10, which Councilmember Anna Cline then moved to adopt as the tentative budget and to set the public hearing for formal adoption. The motion passed unanimously.
Why it matters: the tentative budget sets spending limits and frames the city’s fiscal choices before a public hearing. During discussion, community members and staff raised specific funding and timing pressures that could affect a major federal grant project.
Megan Connelly, director of Bisbee Bikeways, told council a coalition had secured $8.5 million in federal grant funding for the Lavender Pit path but that construction bids came in about $1 million over the engineer’s estimate. She said construction needed to start by July to meet the Economic Development Administration (EDA) schedule and avoid termination of the grant, and requested the city identify roughly $600,000 — suggesting ARPA funds or other budget adjustments — to cover the shortfall. Connelly added that $200,000 to $400,000 of that request was contingency that might not be spent if contractor pricing held.
Public Works Director Matthew Gurney warned federal rules prevent ‘‘value engineering’’ on the existing bids and said the correct response would be to rebid with a revised scope; he noted that voluntarily forfeiting the grant would keep the city in good standing with the federal agency but that forced withdrawal could harm future grant applications. Council members discussed several funding scenarios but noted any commitment would need to come from the current budget because construction would begin before the new fiscal year.
Fred Miller questioned apparent discrepancies in the Bisbee Visitor Center Capital Improvement Fund, noting the March financial report showed $140,000 while the proposed budget listed $108,000, and also asked about contract services rising from $15,000 to $65,000. Mayor Ken Budge said $15,000 of the contract services line is for Cochise County Tourism and that the remaining $50,000 would come from reserves; he cited City Charter Section 6.06, which requires a resolution approved by a five‑sevenths vote to transfer capital improvement funds.
Council voted unanimously to adopt the tentative budget; the budget will return for a public hearing and final adoption as required by state law.
What’s next: council approved the tentative budget and set the hearing; council and staff will evaluate possible reallocation options, and staff indicated the Lavender Pit path project faces a July timeline to avoid EDA grant termination.
