New Globe fire station moves forward without raising property taxes  

This next year is going to be tough. We’re going to hold the line. We’re going to have to limit our spending, but we still need to move forward.”

Globe Mayor Al Gameros

Globe City Council’s April 28 meeting featured an update on the city’s budget for fiscal year 2026-27, which will include funding the construction of a new fire house via a bond issue. Council also approved a number of motions, including awarding a contract for downtown sidewalk repairs, authorizing applications for $4 million in federal loans to fund water and sewer projects, and hiring legal counsel to update the city’s business regulation code. 

FY26-27 budget to include bond issue for new fire house

Council heard an update on progress on the city’s budget for fiscal year 2026-27 from Assistant City Manager Linda Oddonetto. Specifically, staff were seeking direction on the use of .3% PSPRS funds and council contingency funds.

Staff are proposing to reassign an existing sales tax to support a new facility to replace Globe’s 120-year-old fire house, estimated to cost between $13 million and $15 million. The city is exploring funding the project through a bond issue, which would require $1.2 million in annual debt service. City Manager Paul Jepson said the city will pursue the bond in the early spring of 2027, but it must be planned for in the current budget cycle.

The Public Safety Personnel Retirement System .3% sales tax would serve as the dedicated funding source for servicing the debt, and is expected to bring in $900,000 per year. The remaining $300,000 would come from future operational revenues. 

“I think we’re showing leadership across the region. People look to Globe, see what we’re doing, from around the state. ‘How did you get there?’ Planning and hard work are the two things that I see of our staff as well as this council.” — Councilman Mariano Gonzalez

The PSPRS .3% tax was established to help the city pay down an unfunded liability for the police and fire retirement fund, whereas many other cities had used a bond to do so. This puts Globe in a good position, with the retirement fund now 80% funded.

Now, city staff are requesting that council reassign the revenues from the PSPRS sales tax toward the debt service for the new fire station. Globe Mayor Al Gameros pointed out that with the proposed plan, Globe residents will not see an increase in their property tax as a result of the bonding.

Property for the new fire house has been acquired and a feasibility study is under way, with expected completion in May, which will give an estimated maximum price. An audit will be completed by July, and after that the funding plan can be finalized and the facility will go to full design.

With regard to the contingency fund, Oddonetto reminded council that in 2025, council adopted a policy to maintain a $3 million “rainy day” contingency fund, and then tapped into it later in the year after the floods. As a result, staff is requesting that council reduce the amount of the contingency fund to $2.5 million in order to free up budget capacity for one-time projects during the year.

No action was taken on these items, as this presentation was for council’s information and to obtain council’s direction as the budget process goes forward. Staff will bring the tentative budget to council at a special meeting to be held on May 19.

Motions approved

Council also approved motions for the following:

• Accounts payable in the amount of $413,787.47.
• Ratifying a contract with JJ Electrical Consulting LLC in the amount of $405 for the repair of return activated sludge (RAS) pump 2 at the wastewater treatment plant.
• Ratifying a contract with Public Sector Personnel Consultants in the amount of $2,500 to prepare a public safety compensation survey. 

• Awarding a contract in the amount of $18,750 to Rodriguez Construction Inc. for sidewalk repairs located at 226 N. Broad St. The contract has a contingency of 15%, for a total not-to-exceed amount of $21,562.50. Travis Ashbaugh, assistant public works planning director, said all sidewalk projects will be ADA compliant. Vice Mayor Mike Stapleton requested that the design include handicap parking spots on the west side of Broad Street north of the intersection with Cedar Street.
• Awarding a contract in the amount of $5,545 to Bulldog Remodeling LLC for an office remodel within the city hall building.
• Ratifying a contract in the amount of $7,028.73 with Leslie’s Poolmart Inc. to install a chlorine/acid controller and two standard pumps at the community pool.
• Awarding a contract in the amount of $5,216 to B&A Electric LLC to make necessary repairs to the Besh Botanical Garden lights and soccer field lights on Field 5. The contract has a 15% contingency, for a total not-to-exceed amount of $5,998.40. 
• Authorizing the submission of an application for two loans from the Water Infrastructure Finance Authority: a Clean Water State Revolving Fund loan in the amount of $3 million, and a Drinking Water State Revolving Fund loan in the amount of $1 million. Ashbaugh said the $3 million would be used toward the local match on the Natural Resources Conservation Service funding the city is using for flood mitigation-related sewer projects. The $1 million will be applied to the low-water transmission mainline as part of the “595” project. That project is being paid for in part by a $2.1 million federal grant, but the city will have to pay a $700,000 match and additional costs.
• Approving a contract with Fitzgibbons Law to hire Tina Vanucci as legal counsel for the update of Chapter 8, Business Regulations, of the Globe City Code. Jepson said the update would primarily focus on Articles 81, 82, and 83, which address business licence fees; peddlers, solicitors, and transient merchants; and special event permits, respectively, in order to address council’s concerns. Jepson said the process will involve public meetings held in the evening.
• Approving a change order in the amount of $704.21 to a contract with Seneca Electric for the Cutter VFD replacement. Vince Mariscal, assistant public works operations director, said the amount will cover increases in materials costs.
• Approving a change order in the amount of $1,182.43 to a contract with Earthquest Plumbing and Pumping LLC, executed under the City of Globe’s Emergency Declaration, for emergency water and sewer infrastructure repairs necessitated by the September 26, 2025 flood event. Ashbaugh said this is one of several invoices related to flood-related emergency work that were submitted recently.
• Approving a change order in the amount of $8,860 to a contract with Weber Water Resources LLC to repair the Cutter Booster 3 motor.

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