Huachuca City Council directs staff to begin Truth in Taxation notices as budget work continues

Huachuca City Council on March 12 received a midyear financial report and voted unanimously to begin Arizona’s Truth in Taxation public-notice process as part of the town’s 2026–27 budget work.

Ruben Villa presented the financial update through Jan. 31 — seven months into the fiscal year — and cautioned the figures were preliminary. “These numbers are unaudited and are subject to change,” Villa said, while noting that overall revenues exceeded expenditures by about $231,000 year‑to‑date. He flagged the landfill fund as an area of concern but said a pending GADA grant should reimburse recorded landfill expenditures and that reimbursement would be amortized over 10–15 years to improve the fund’s position.

Town Manager Suzanne Harvey explained the mechanics of Truth in Taxation and outlined three scenarios staff would publish if the Council wants to proceed: a neutral-rate scenario generating an estimated $17,765; a midpoint scenario that would yield roughly $128,000; and a maximum-allowable scenario of about $139,000. Harvey presented an illustrative example for a $100,000 home, showing an approximate annual increase of $12 at the midpoint and $24 at the maximum. She emphasized the direction tonight was only to start the required public notices and hearings; no final tax-rate decision was made.

Councilmember Johann Wallace moved to begin the Truth in Taxation public-notice process; Debra Trate seconded the motion, and it passed unanimously. Staff will prepare the notices and include the item in the upcoming budget hearings, at which the Council will set any final rate.