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Discussion of budget and CDBG projects at Council meeting

Historic Downtown Globe on a Sunday morning. Photo by LCGross

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 Shipley and Councilman Leetham.

City FY2025 budget process gets underway with no major changes from 2024

The Council heard a presentation by Globe’s chief financial consultant, Pat Walker, and budget analyst Tina Allen, providing preliminary revenue projections for the 2024-2025 financial year. The presentation was part of the budget adoption process.

Highlights are as follows:

  • The current estimated general fund budget for FY2024 runs to $9.9 million. The proposed budget for FY2025 totals just over $10 million.
  • Total revenue for FY2025 is projected at $16.5 million, while the estimated revenue for FY2024 is slightly over $16.6 million. Globe is projected to take in City sales tax of just over $8.3 million in FY2024 and just under $8.5 million in FY2025. Bed tax revenues are projected to increase in FY2025, to $225,000 for the year, from $202,600 estimated for FY2024.
  • Intergovernmental revenues are expected to decrease from $3.7 million in FY2024 to $3.4 million in FY2025 mostly due to reductions in state sales tax, vehicle license tax, and urban revenue sharing revenues.
  • Globe’s property tax revenues are expected to see a slight increase, from $522,178 to $541,935. Total net assessed valuation is growing slightly to $44,344,546. The Finance Department is proposing a primary tax levy for FY2025 of $1.2221, down from $1.2255 in FY2024.

The budget process will continue with meetings and budget development in May, culminating in a tentative budget adoption on May 21. There will be a public hearing on June 25 followed by final budget adoption. A public hearing on the property tax levy will be held on July 23 followed by the adoption of the levy.

City Hall improvements among projects proposed for CDBG funding

Council discussed a slate of projects being proposed as possible recipients for federal funding, including several for ADA improvements at various locations across the city. Globe expects to receive approximately $225,000 in federal CDBG funds from the Arizona Department of Housing. 

All proposed projects must meet one of three objectives: 1) benefit low to moderate-income persons in the area, 2) alleviate slums and blight in the community, or 3) address an urgent city need. 

A portion of the amount would have to be used to pay for project management, reducing the dollar amount available for the project itself to about $185,000, according to Linda Oddonetto, the City’s Community and Economic Development Director.

Five projects were presented. According to Oddonetto, these projects came from discussions of the City’s Strategic Action Plan and how the money could best be used to meet community priorities. The projects include:

  • ADA improvements at the Community Center Complex include parking, sidewalk, and lighting upgrades.
  • Demolition of a rogue building near the library, which will eventually allow for the expansion of the library.
  • ADA improvements at Round Mountain Complex, including the restrooms.
  • ADA improvements at City Hall to improve access to the main door, chambers, and restrooms and enhance the counters for the magistrate and water billing. 
  • Improvements to the Globe Head Start building, including upgrading the playground equipment and possibly updating the roof.

Councilman Rios spoke in favor of the library improvements, pointing out that the library is a valuable community resource and this project would benefit many people, whereas the ADA improvements will have to be done gradually over a span of decades.

Mayor Gameros pointed out the value of all of the projects, particularly the need for child care with regard to the Head Start project, but he expressed specific support for the City Hall project because that has already been started and he would like to see it completed. A previous round of CDBG funding paid for playground equipment at City Hall. 

Oddonetto noted that the City Hall project also checks the box of being a project that could be taken to completion with this round of funding.

Council also discussed the possibility of upgrading the skate park, which has never been upgraded since it was built. That project was added to the list as a sixth option. 

An additional public hearing will be held on May 28 at 6 p.m. At that time Council will select a final project for the CDBG funds. Only the projects that were presented tonight can be voted on at that hearing. People can participate in that meeting by attending in person or by sending an email or a text with their comments.

Motions approved

Council also approved motions for the following:

  • Accounts payable in the amount of $350,730.01
  • Updating signatures to a project partnership agreement between the City of Globe and the US Army Corps of Engineers to receive funding of $2.1 million for the replacement of the City water main from the Arizona Department of Transportation Facility to the Fairground’s entrance. The agreement requires a 25% match of $700,000 by the City of Globe. This funding was initiated by US Representative Greg Stanton.
  • City is issuing an invitation to bid for the Besh-Ba-Gowah Building Restoration Project, which will be funded with a $160,000 grant from Freeport-McMoRan. 
  • Approving a letter of support for the Arizona Eastern Railway Company grant application to the Federal Consolidated Rail Infrastructure and Safety Improvement Grant Program to fund the Eastern Arizona Rail Safety, Efficiency, and Resiliency Project. Jepson said the project would replace wooden trestles with steel trestles and make some other improvements that would allow higher speeds and resilience to wildfires. The rail lines serve the mines and reduce the mining traffic on local highways.
  • Approving an emergency declaration due to the partial roof collapse of the “Silver King” property located at 493 N. Broad Street, and the expenditure of an amount not to exceed $25,000 for emergency shore service provided by Viking Specialty Contracting. Jepson said the roof was damaged by winds the previous Friday. The initial cost of the shoring will be $14,000, and the total cost will depend on how long it will take to demolish the roof and an adjacent wall. The City owns the Silver King building. Jepson said the stairs near the building have been closed for safety. The demolition is a high priority because the City recognizes the stairs – Stairizona –  as an important tourist attraction and wants to reopen them as soon as possible.
  • Approving a partial payment of retainage of $125,998.91 to Structural Preservation Systems for the City’s contract related to the Community Pool rehabilitation. Jepson explained that these funds will cover change orders to ensure the pool is ready for the swim season starting Memorial Day weekend. Vince Mariscal updated Council that the bathrooms have been remodeled, including tiling on the walls. The staff lounge is now complete, with A/C, and the office now also has an A/C unit. The entry handrails have been improved and the front gate has been improved. Repairs have been made to the decking and safey railings have been added to the vault entrance. An eyewash station has also been installed.
  • Approving staff recommendations to award Globe City Council Non-Profit Program Funding to various applicants that submitted applications for FY24 for $15,000. Jepson described the different projects that had been submitted and what the City’s thinking was in terms of making a final selection. Annually, the City of Globe budgets $15,000 through Account #10-66-51408 Economic Development General Fund to support local non-profits.  Staff received 7 applications from Gila County Women Gun Club; $1500,00, Salvation Army; $2000.00, Gila Community Food Bank; $7000,00, Homeless Coalition of Cobre Valley; $2000.00, Cobre Valley Center for the Arts; $5000.00, Globe High School Alumni Association; $5000,00, and Gila House Inc.; $17,280.00. Applications were vetted at the March 20th Quality of Life Work Group meeting based on the following criteria: does the proposal serve the City of Globe community, does the request support the disadvantaged population, does the proposal support a practical, effective program, does the proposal enhance the City of Globe, and does the proposal align with Council Goals.
  • The 4th Street and Daybreak Waterline Project contract has been awarded to Scholz Contracting LLC. for $744,762.34, which includes a contingency of $97,142.92. The project will be submitted to the Water Infrastructure Finance Authority for reimbursement through a Water Conservation Grant. Depending on the supply chain, both projects are expected to be completed within 90 days.
  • Purchase and installation of a PivotAir breathing air compressor from Municipal Emergency Services in the amount of $43,665.76. Chief Gary Robinson explained that the fire department experienced a severe failure in the breathing air compressor, used to fill the self-contained breathing apparatuses, which are critical equipment. Currently the FD is relying on outside sources to fill their bottles, but this is problematic, especially when there is a major fire incident and bottles need to be refilled so the FD can continue to operate. The FD was unable to get parts for the compressor and determined it is necessary to purchase a new unit. Chief Robinson said it should last 15 to 20 years. 

To view this meeting online, visit https://www.youtube.com/watch?v=2t8XYcdLfX4.

To view documents related to this meeting, click here

Full minutes can be found by visiting the City Hall website. 

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 City of Globe Arizona). Or click on the “Live Stream on YouTube” link at the top of www.globeaz.gov.

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


About Patricia Sanders

Patricia Sanders lived in Globe from 2004 to 2008 and at Reevis Mountain School, in the Tonto National Forest, from 2008 to 2014. She has been a writer and editor for GMT since 2015. She currently lives on Santa Maria island in the Azores.

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