Safford staff presents $18 million general-fund balance, proposes $6.7M CIP and flat sales-tax budget

City finance staff told the Safford City Council during a March 10 work session that the city enters the budget cycle with an unaudited general-fund balance of about $18 million and projected general-fund revenues of roughly $19.23 million.

"We have an un audited number of $18 million in fund balance now," the presenter said, and walked council members through revenue categories and the rationale for conservatively budgeting sales-tax receipts. Staff recommended budgeting sales tax at FY25 levels because of legislative uncertainty and using forecasted estimates for other revenue streams.

The presentation broke down the general fund: sales tax (budgeted flat at roughly $10.3 million), state-shared income tax (~$2.3 million), franchise and other fees, and smaller sources such as vehicle-license and property taxes. Staff said the proposed FY25 CIP is $6.7 million, which would reduce the one-year change to fund balance by about $2.8 million if all projects were completed in the current fiscal year.

Why it matters: staff and council emphasized that strong reserves and clear lifecycle-maintenance planning are critical to avoid future large, unbudgeted expenditures. Councilors asked for quarterly and year-end audited updates and pressed staff to regularize lifecycle maintenance for facilities including the pool, streets and city buildings.

The council did not take a final budget vote in the session; staff said the Arizona Revised Statutes require adopting a balanced budget before the third Monday in July and that further packet details and later hearings will guide final appropriation decisions.

Looking ahead: staff will provide follow-up reports with audited figures and quarterly updates and will use the FY25 revenue and fund-balance estimates as the baseline for continued CIP prioritization and budget hearings.