Globe City Council’s meeting last Tuesday featured a discussion of the city’s budget for fiscal year 2026-27, anticipated to reach nearly $98 million due to the large expenses of flood recovery and mitigation, along with investments the city is making in its fire department. Council also heard a report on Pinal Creek sediment removal, getting under way this month.
Council heard presentations from department heads and the city’s budget consultant regarding the city’s fiscal year 2026-27 budget, expected to increase significantly over prior years. Next year’s budget has an estimated total of $97.7 million, an increase of $40.2 million over this year’s $57.5 million.
Allen explained that the increase results from three main sources: the city’s plan to issue bonds to pay for a new fire station, loans from the Water Infrastructure Finance Authority of Arizona to fund water and sewer projects, and a large increase in grant capacity, partly related to flood recovery and mitigation.
She emphasized that the higher budget amount results primarily from flood response.
The city has to include all potential grant funding in the budget, as unbudgeted grant amounts can’t be accepted. Allen listed grant opportunities as including $24.7 million from the Natural Resources Conservation Service and $5.4 million from the state’s Department of Emergency and Military Affairs for flood projects, $6.3 million for bridge construction, and additional seven-figure amounts for the purchase of a fire truck and for water and sewer projects.
The city was forced to reduce its forecasted tax revenues for the fiscal year 2026 by about 8% due to the impact of the flooding on tourism and business, from around $11.1 million to $10.2 million. Allen is estimating that fiscal year 2027 tax revenues will return to the level originally estimated for fiscal year 2026. Overall, 2027 general fund revenues are estimated at $22 million, a slight decrease from 2026.
“I think you are well on your road to recovery in many aspects of your business community,” Allen said.
Globe’s property tax rate will be reduced from this year’s $1.1892 to $1.1639, in order to meet council’s promise to maintain a flat property tax levy. The decrease in the rate means the city will bring in the same total levy in fiscal year 2027 as it did in fiscal year 2026, on the same property that was taxed, and growth will take place only due to new construction. The total primary property tax levy is estimated at $545,264 next year, versus $531,935 this year.
Allen also covered the possible use of the city’s .3% “PSPRS” monies in fiscal year 2027. About $875,000 is being proposed for use toward the new fire station, new ladder truck, and other fire department expenditures.
The $2.4 million fire truck is being paid in part via donations from the mines, totaling a little over $1 million. The city is hoping to receive federal funding or a grant from Freeport to cover the last $1 million needed to pay for the ladder truck.
The city will fund the new fire station, anticipated to cost $13 to $15 million, through a bond expected to be completed in September. The debt service would amount to about $1.2 million annually, and staff are requesting that the .3% PSPRS revenue be redirected to that purpose.
This tax was put in place a decade ago to support the police and fire retirement program, which no longer needs the funds.
Globe Police Department is requesting to increase incentives for employees in order to help with recruiting and retention. Chief Dale Walters said the department is currently understaffed and has been losing officers due to the bounties that larger cities are offering, as well as the lack of housing available in the Globe-Miami area.
Walters said Globe needs to start building a sustainable ongoing budget in order to support public safety in the future and maintain the department’s competitiveness, saying the challenges “will only get worse” in the future.
Councilman Mariano Gonzalez urged council to work with the League of Cities and Towns and tell the Arizona legislature, “If you want us to continue providing services from a public safety aspect, you’re going to have to help us.”
The fiscal year 26-27 budget does include a $4 per hour increase for every shift worker in the department.
Mike Garrison, general superintendent with Tiffany Construction, reported that plans for Pinal Creek sediment removal are currently being wrapped up, and the company is getting permits and agreements into place so work can begin in about two weeks.
Multiple crews will be sent out around the area, concentrating on the areas of largest concern first. Once the project gets up to full speed, about 200 personnel are expected to be working in the Valley, on four or five separate crews. Garrison said he hopes to complete the work before the monsoons start, although it might not be possible to finish all the structures by that time.
Garrison pointed out that Tiffany Construction will specifically work on sediment removal, and bank stabilization will be done by CivilTec, a separate contractor, although the companies will be cooperating. Tiffany Construction has 15 years of experience specializing in flood control projects.
Council also awarded a $3.3 million contract to Doege Development LLC for work to be done on Jesse Hayes and Hagen Roads, involving the installation of new sidewalks and upgrades to drainage.
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