Huachuca City hears positive midyear budget report; council starts 'truth in taxation' public-notice process

Huachuca City officials were presented with a midyear financial report showing revenues exceeding expenditures by $231,000 through Jan. 31, and the Town Council voted to begin the public-notice process required under Arizonatruth-in-taxation rules.

Ruben Villa, presenting the financial summary, said the report "represents 59% of the fiscal year, seven months of the fiscal year" and cautioned that the figures were "unaudited and are subject to change." He told the council that most funds are within budget, though the landfill fund remains an exception pending grant reimbursements.

Staff also outlined options tied to the town's property-tax rate and asked whether to begin the formal public-notice and hearing steps commonly associated with a truth-in-taxation process. The presentation showed a neutral-rate scenario with modest revenue impact, a midpoint that would generate roughly $128,000, and a maximum example of about $139,000. Using a $100,000 home as an example, staff said "the increase at midpoint would be about $12.00 a year" and the maximum scenario would be about $24 a year.

Councilmember Johann Wallace moved and Debra Trate seconded a motion directing staff to begin the public-notice process; the motion passed unanimously. Council members were clear the action only starts the notice and hearing timeline and does not set a final tax rate.

City staff said the numbers are preliminary and will be refined during the formal budget process and audit. Villa noted that sales-tax reporting timing and a recent highway construction project had affected year-to-date collections and that staff would update the council if anything of concern appeared before adoption.