Globe City Council’s April 14 meeting opened with a sober look at the city’s financial outlook for a tighter 2026–27 budget due to flood impacts and declining revenues. Staff anticipate holding tax rates steady while planning for gradual recovery, but the discussion made clear that the city will be navigating difficult tradeoffs in the coming year.
Council also advanced an initiative relating to new rules for wireless towers and approved a cell service upgrade at Walmart. Members also heard updates on Gila Community College’s bid for full accreditation and a program supporting water conservation efforts across the region.
Assistant City Manager Linda Oddonetto presented to council on the city’s fiscal year 2026-27 initial budget, the first budget discussion for the fiscal year. Oddonetto warned that the city is facing a tighter financial picture after flood damage and weaker-than-expected revenues. Even so, City Manager Paul Jepson said the city plans to keep property tax rates stable.
Finance consultant Tina Allen said Globe’s sales tax revenues are projected to come in about $875,000 below budget this fiscal year. Overall, she said, general fund revenues are expected to end up about $1 million below what the city had planned, with the flood hurting business activity and other income sources such as state shared sales tax, museum revenues, franchise fees, and court fees, although vehicle license tax revenues continue to grow.
Allen said a higher-than-expected beginning fund balance helped soften the blow somewhat, helping to cover one-time flood-related expenses, but this doesn’t solve the city’s long-term operating challenges.
“It has been a rough year regarding Globe’s revenues. The flood has truly jeopardized the city’s revenue stream.” — Tina Allen, Globe finance consultant
Looking ahead to next year, the city is planning conservatively. Allen said they are not proposing an increase in the city’s sales tax rate or property tax rate. Instead, they are assuming sales tax collections will recover somewhat as businesses reopen and local activity improves. Next year’s general fund operating revenue is projected to be about $340,000 lower than the current year’s budget.
One piece of good news is that a decision made about 10 years ago to reduce the city’s police and fire retirement debt is now paying off. Allen said that change will save the city more than $300,000 in retirement costs in the coming fiscal year.
Jepson said the city is required to adopt a balanced budget, which means spending must stay within realistic revenue projections. He said the revenue forecast is the starting point for every other budget decision.
The draft budget includes the city’s annual 2.5% merit raises for employees at $520,000, funding for the Copper Mountain Transit program at $73,000, payments to a federal lobbyist who helps the city make connections in D.C. at $60,000, the council’s annual Washington D.C. lobbying trips at $10,000, and the Citizens Academy at $3,000.
“Conservatively, the message is we're going to need to do more with less.” — Tina Allen, Globe finance consultant
Oddonetto presented several line items to the council for guidance. These include a nonprofit grant of $15,000 that the city has awarded in the past, $18,000 for a community contract with PHI Life Flight, $13,000 for the Cobre Valley Youth Club, and $5,000 for the Gila County Sheriff’s Posse for support provided at city special events.
Allen said several projects slated for the coming year are already fully funded, including the Jesse Hayes sidewalk project and the waterline project at the fairgrounds.
In regard to employee health insurance costs, Oddonetto pointed out that there had been potential for a nearly 30% increase in Blue Cross Blue Shield benefit costs, but this was negotiated down to 9%. The city plans to continue gradually shifting dependent coverage costs toward its long-term goal of a 75-25 cost split between the city and employees. Council members gave their support for staff to move forward with the proposed insurance figures in time for open enrollment on May 8.
The budget calendar calls for additional budget meetings in May and early June, with a public hearing and final budget adoption scheduled for June 23. The property tax levy will be adopted in July. Jepson said the city’s intention is to hold taxes flat, except for new construction.
Council voted to start drafting new rules for wireless towers across the city and approved a request for an 84-foot communications tower next to the Walmart.
The first action directs the Planning and Zoning Commission to prepare a text amendment creating a formal ordinance for cell towers and similar structures in Globe. The city does not currently have a dedicated ordinance for wireless towers, which limits its ability to set standards for appearance, placement, height, safety, maintenance and the removal of abandoned towers.
Zack Montgomery, Globe’s new planning and zoning director, said a tower ordinance would give Globe more control over how future wireless facilities look and function. That could include height limits, color requirements, camouflage designs, setback rules and requirements for old or unused towers to be taken down. The ordinance would also apply to antennas and similar tower structures.
“This is one of those things that we haven't felt a need that we had to do. But now people want to come invest in our city. ... Having any utility, cell tower provider, anybody that's making our city better and investing money in our infrastructure is going to benefit us, both public safety and accessibility for travelers and for our local businesses to have services equal to, if not better, than the Valley.” — Globe City Manager Paul Jepson
Immediately afterward, council held a public hearing on a separate but related request to allow an 84-foot wireless tower at 2432 East U.S. Highway 60. Because the property is in a commercial zone with a 30-foot height limit, the project required a planned area development overlay to allow the taller structure.
The tower will be placed on the Walmart site next to the lawn and garden area and will be designed as a “monopine,” to resemble a pine tree.
A representative from Verizon said the tower is needed to improve wireless service in the area, especially around Highway 60, Walmart, and for nearby commercial activity. They said current coverage has weak spots and dropped calls, and the new tower will improve both in-building and vehicle-level service.
During the public hearing, Jacqueline Anderson, a resident, spoke against the tower, raising health concerns and questioning the impact on children, nearby schools and the environment. Chief Walters spoke in favor, saying reliable cell coverage is critical during emergencies such as wildfires, floods and major incidents when communication is vital.
Dr. Janice Lawhorn, president of Gila Community College, presented to the council about the college, its history, and current goals and challenges, announcing that the college is on the verge of becoming fully independent. A final accreditation decision is expected in early June, and if approved, the college will no longer need an outside educational partner and will operate on its own like other community colleges in Arizona.
The college is seeking accreditation with the Accrediting Commission for Community and Junior Colleges, which is connected to the Western Association of Schools and Colleges. GCC has spent the past several years building the staff, governance structure and programs required for accreditation, and a site team visited in late March. The college is now hoping to be granted full initial accreditation at an accrediting commission meeting scheduled for June 3 through 5.
GCC has already been operating independently since July 1 of last year under candidacy status, after ending its contract with Eastern Arizona College. Since then, GCC has enrolled more than 3,500 students — 2,000 last semester and about 1,500 this semester — across its campuses and training sites in Globe, Miami, Payson and Hayden.
“Gila County will never need another educational partner. The community college will operate independently just like every other community college in the state of Arizona.” — Dr. Janice Lawhorn, president of Gila Community College
Lawhorn also highlighted new partnerships and programs, including a transfer agreement with the University of Arizona Global Campus, potential class offerings at the Madera Peak senior apartments, and a pilot electrical training program with the Arizona Department of Corrections. In that program, 17 inmates who have been cleared to leave the prison are coming to the regional training center in Globe four days a week for training. Lawhorn said the program may be the first of its kind in Arizona and possibly the nation.
The college’s primary revenue source is property taxes — about 66% of the college’s revenues — with state assistance and operating grants and contracts providing the rest. The college has also received substantial grant support, including a $150,000 grant from Freeport McMoRan that helped the college upgrade its regional training center in Miami.
One of the biggest issues facing the college now is a state spending cap known as the expenditure limitation. Lawhorn said the formula is based on an outdated law from around 1980 and allows the college to spend far less than it actually receives in revenue. As a result, GCC has exceeded its spending limit while building its own operations and, as a penalty, has lost part of its state aid.
To fix that problem, Lawhorn hopes Gila County voters will approve a ballot measure in November that would raise the spending limit. She stressed that the measure would not increase taxes, but would simply allow the college to spend money it is already receiving.
“The plan is to never go back to the members of the county and ask for a tax increase. We can operate with the funds that we have if we can get on the November ballot and change that base limit.” — Dr. Janice Lawhorn, president of Gila Community College
Lawhorn also gave a brief update on efforts to start a law enforcement training academy. She said flooding damaged a berm at the firing range needed for certification, and repairs will have to be completed before the program can move forward.
Raluca Mihalcescu, water conservation administrator at Arizona Water Company, and Emelia Cancellieri, water conservation specialist, presented to council regarding the launch of the Integrated Demand Management Program. Also called From the Ground Up, the program provides water conservation resources to the communities of Globe, Miami and Winkelman, aiming at helping residents use water more efficiently and learn more about where their water comes from.
The goal is to give residents practical tools, education and regular updates about water conservation in a part of Arizona where water issues are becoming increasingly important.
The program includes a website, social media outreach, educational videos, public events and surveys to learn what topics matter most to local residents. Water-saving information is being posted online several times a week and will cover topics such as leak detection, indoor and outdoor efficiency, and rainwater harvesting. A website has also been launched at fromthegrounduparizona.com.
The effort is meant to benefit the whole area, even though the company serves only part of Globe, and many residents get water from the city rather than the private utility. Because of that, they are trying to make the program as fair and useful as possible for everyone, while also making clear which rebates and services are limited to Arizona Water customers.
“The goal is not to not use any water. We absolutely need water, but let’s just make sure that we’re not wasting and that we’re using every drop as efficiently as possible.” — Raluca Mihalcescu, Arizona Water Company
Among the resources already available is a toilet rebate program that can provide up to $200 for Arizona Water customers who install a high-efficiency toilet. The company also offers conservation kits with indoor and outdoor water-saving devices, as well as free water audits for commercial customers.
Another major part of the program is education. Arizona Water plans to continue the long-running South Gila Water Festival, which teaches fourth-grade students about the water cycle, groundwater and watershed protection. Last year’s festival involved 180 students from Globe, Hayden-Winkelman and Miami schools, along with teachers and volunteers. This year’s event is scheduled for May 5 at Harbison Field, and volunteers are being sought.
The company also plans to begin adult education workshops later this year or early next year, with topics such as local water resources, irrigation basics and rainwater harvesting. A short “water journey” video is also planned to explain how water travels from the ground to customers’ taps.
Council also approved motions for the following:
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