Huachuca City council starts Truth in Taxation notice process after midyear budget review

The Huachuca City Council voted unanimously on March 12 to direct staff to begin the Truth in Taxation public-notice process as part of next year’s budget planning, after receiving a midyear financial report showing positive fund balances.

Ruben Villa, presenting the town’s budget-through-January summary, told the council the figures represent 59% of the fiscal year and are unaudited. “Revenue supersedes or exceeds expenditures by $231,000 through January 30,” Villa said, and he flagged that all funds except the landfill showed no immediate cause for alarm. He said the landfill shortfall is expected to be addressed by a GADA grant with repayments amortized over 10–15 years.

Town Manager Suzanne Harvey outlined the Truth in Taxation options staff would publicize if the council proceeds. She said a “neutral-rate” option would generate roughly $17,765 in revenue, a midpoint option would generate about $128,000, and the maximum option would generate about $139,000; staff used a $100,000 home as an example, estimating about $12 per year at the midpoint and about $24 per year at the maximum. Harvey emphasized that the direction given on March 12 is procedural only: “All we see tonight is this direction. We would put the notices together and then during the budget process you would decide what rates.”

Councilmembers discussed timing and process; the motion to begin the public-notice steps passed unanimously. Staff said detailed notices and required hearings would be scheduled during the formal budget process if Council chooses to proceed with a rate above the neutral level.

The council’s procedural vote does not set a tax rate; it only authorizes preparing and posting the public notices required under Arizona’s Truth in Taxation statutes and convening the hearings required should the council later propose a rate above the neutral rate.