Home » Government » Council approves FY2023 budget and property tax rate at July 26 meeting.

Council approves FY2023 budget and property tax rate at July 26 meeting.

Members of the Globe City Council: Mayor Al Gameros, Vice Mayor Mike Stapleton (District 4), and Council members Freddy Rios (District 1), Mike Pastor (District 2), Jesse Leetham (District 3), Mariano Gonzalez (District 5), and Fernando Shipley (District 6). All members were in attendance at this meeting except Councilman Stapleton.

Council adopts FY2022-23 budget and property tax rate

Council adopted a final budget for FY2022-23 for $42,541,669.

There were no comments from the public during the hearing.

City Manager Paul Jepson presented the final budget numbers:

  • Total budget: $42,541,670
  • Combined revenues: $8,940,735
  • State shared revenues: $3,117,557
  • Operational budget: $12,665,329
  • Total general fund revenues overall expenses: $1,075,947
  • General fund CIP: $915,987
  • General fund unrestricted contingency: $332,210
  • Council-approved restricted contingency: $3 million

Jepson said the restricted contingency fund is intended for unforeseen situations, and Council would have to vote unanimously to pull funds from it.

We’re building the biggest, widest possible blanket, if you will, to protect the City of Globe and improve it at the same time.” Councilman Mariano Gonzalez

Council approved the budget on a unanimous vote.

Property tax rate to drop in FY2022-23

Council also discussed the adjustment to the property tax rate for FY2022-23. The rate will drop from $1.2618 to $1.2468 for each hundred dollars of the assessed value of the property. The new rate will apply to real and personal property within the corporate limits of Globe.

Jepson pointed out that the City aims to keep the total amount collected the same from year to year even if overall assessed values change. That’s accomplished by adjusting the property tax rate each year.

For FY2022-23, the total assessed value of the City increased from $42,584,121 to $43,181,372, an increase of $859,833. Estimated property tax collections for FY2022 were $534,013, and estimated collections for this year are $541,399, an increase of $7,386. The increase results from taxes applying to new construction.

Jepson said the City has committed not to raise the property tax levee – the total amount collected – for five years, except for new construction.

Community Center pool work continues, opening pushed to August or later

Rick Power updated Council on the Community Center Pool Rehabilitation Project. The foundations for the roof structure and the slide structure have been completed. The slide structure has been delivered and is on-site, but will be one of the last things installed. The filter has been put in place. The existing vault will be used for the three pumps the pool complex will need. The west side of the building has three courses of block set.

Work on the roof structure will probably start next week, Powers said. The gutter system is 90% complete. The zero entry concrete is finished but needs to be plastered. The concrete deck around the pool will be poured before installing the liner.

City Engineer Jerry Barnes said he met with the subcontractors the morning of July 26 about scheduling. He said it’s been a challenge given the materials situation and that he’s been arranging for multiple subcontractors to work simultaneously to try to speed up the opening. The bases for the power poles have been installed, gas lines have been run, and plumbers will be working starting July 27. 

Barnes said a lot of the materials have been delivered, but many key parts have not, including the pipe for the splash pad. Labor is not an issue in the delays, according to Barnes.

We’re making a lot of progress, you’re just not able to see it because it’s underground.” City Engineer Jerry Barnes

Barnes estimated the pool could be open sometime in August, depending on materials delays. Steel has been more of an issue than concrete, he said.

Mayor Gameros pointed out that a lot of people have been commenting on social media about the delays, as well as about the money that the City is spending on the pool, but they don’t realize the City has to deal with supply and demand issues for materials, and they also don’t realize the amount of money that stakeholders are contributing to the project. The City is paying only a fraction of the total cost of the pool project.

Councilman Gonzalez also pointed out that the pool will be heated, as will the splash pad, so even if the pool opens late in the summer, it will still be available after the weather cools off.

Sales tax increase update

Jepson updated Council on the Arizona Department of Revenue’s notification process for Transaction Privilege Tax reporting for businesses in preparation for the sales tax adjustment scheduled to go into effect on August 1. Jepson said merchants need to start collecting the higher rate on August 1. 

Business owners can get information by going to the ADOR website. A popup will ask you to sign up for the newsletter, and that newsletter will come to your inbox each month with updates. ADOR is asking people to subscribe to the newsletter to keep up.

Jepson also pointed out additional information on the ADOR website in the business box under “See more.” When you click on “See more,” the full list will open. Click on “Quick Reference.” 

The City will also be sending information to merchants via email.

Transportation projects update

Arizona State Transportation Board member Steve Stratton provided an update on transportation projects in the Globe area. Stratton said the Queen Creek Bridge will go to bid in 1Q 2023. This is a $42 million project that will significantly affect the Globe community, he said. A new bridge will be built to the north of the existing bridge. Stratton said Highway 60 is now carrying about 40,000 vehicles per day.

Stratton has retired from the board but is still serving Pinal, Graham, and Gila counties until the governor appoints a new member. He introduced Drew John, a potential board appointee from Graham County. John has served 12 years on the Graham County Board of Supervisors and one term in the state house. He has transportation experience and an extensive network in the three counties. Stratton is asking Council to pass a resolution in support of John’s nomination.

Jepson explained that the ADOT board is one of Globe’s key relationships as the city tries to maintain its transportation infrastructure in good condition.

Motions approved

Council also approved motions for the following:

  • Accounts payable in the amount of $751,779.13
  • Paint colors for the building located at 201 N. Broad Street, owned by Tony Brusca. Code enforcement officer Michelle Yerkovich said Brusca made a great effort to choose a color that would match the existing tiles on the building and look good on the building. The exact color isn’t on the Historic District palette, but Brusca consulted a world-class color expert to choose a color that would look good in all kinds of light.
  • A letter of support to Senator Mark Kelly requesting FY2023 community project funding to complete the Michaelson Building Project.
  • The purchase of one Mitsubishi 3500-lb. material handler from Naumann Hobbs Material Handling for $26,607. Jepson said this machine is for Public Works for use in their new building.
  • A contract for presiding magistrate services with Judge John Perlman, for an annual amount of $42,164.40. Judge Perlman has been the City of Globe’s presiding magistrate judge since 2009. Judge Perlman’s two-year contract expired on June 30, 2019. The new contract will retain his services for two more years, from July 1, 2022, through June 30, 2025.
  • Issuance of an invitation for bid for the Globe Community Center Sewer Line Replacement Project, contingent upon approval by the Central Arizona Governments as a WIFA project, with possible reimbursement from WIFA. City Engineer Barnes explained that CAG is examining the procurement documents to ensure they comply, at WIFA’s request. This project will eliminate the septic system for the Globe Community Center and other City of Globe-owned properties. In addition, this newly updated sewer line will allow other residents to tap into the new city sewer system. The route of the line is from the Boys and Girls Club building through Ice House Canyon and then out to the Tri-City Fire Station, with tie-ins at the community center and Besh. The project cost will be approximately $700,000. The project will return to Council for approval before it goes forward.
  • A Brownfields Assessment Coalition memorandum of agreement between Gila County, Pinal County, City of Globe, Town of Superior, Town of Miami, and Town of Winkelman regarding the management of Brownfield sites. Barnes explained the purpose is to identify and mitigate blight and associated environmental issues.

 

To view this meeting online, visit .

To view documents related to this meeting, click here. 

Full minutes can be found by going to the City Hall website at https://www.globeaz.gov/government and clicking on Agendas/Minutes in the bottom left-hand corner.

The Globe City Council meets every second and fourth Tuesday of the month at 6:00 p.m. at City Hall. The meetings are currently open to the public at 50% capacity. Members of the public are requested to wear a mask except when seated. Seating is limited to allow for social distancing.

Members of the public can also participate in City of Globe public meetings by viewing the meeting live on YouTube. To view the Council meeting live stream, go to the City of Globe’s YouTube channel (search for the City of Globe Arizona). Or click on the “Live Stream on YouTube” link at www.globeaz.gov.

To speak to agenda items before or during the meeting, you can call or text (928) 200-0154 or email council@globeaz.gov. If you desire to speak to the Council during an agenda item.

 

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