JULY 2022
MAYOR’S MONTHLY REPORT AL GAMEROS | CITY OF GLOBE 1% SALES TAX INCREASE A public hearing was held on May 24 on Ordinance No. 880, which amends the City tax code to increase the City’s sales tax rate from 2.3% to 3.3%. After public comment, the public hearing was closed and Council voted unanimously to approve the increase, which will take effect on August 1, 2022. The vision of this council has remained focused on the growth and progress and the needs of our City in regard to the quality of life for all of our residents. Our council and staff have continued to work hard for the past four years to build a sustainable economic future for our City. Through our Strategic Action Planning process, we have identified the need for continued upgrades to our infrastructure, facilities, and equipment. In 2022, we are seeing new projects with the completion of the renovated Community Center Pool, installation of new playground equipment at both City Hall and the Community Center, installation of outdoor exercise equipment at the Active Adult Center, and installation of water filling stations throughout the downtown area. All these upgrades require continued maintenance and manpower to make them sustainable projects for the entire community. Our Economic and Development Services Department has been extremely busy responding to the interest in new proposed projects from investors and developers. The deficiency in our community with the lack of housing and rentals is being addressed on a daily basis by our staff, with the potential of four new housing developments coming to our City. Our everyday residents will not really see a difference in their everyday purchases because of the sales tax increase, but the return in revenue to our City will help to sustain and enhance more projects. The 1% increase does not apply to food purchased at the grocery store for home consumption. The 0.3% portion of the City sales tax is solely dedicated to pay the City’s unfunded liability for public safety and has a sunset clause once it is paid off.
TENTATIVE BUDGET APPROVAL On June 28, City Council approved Resolution 1858, which adopts a tentative budget for FY 2022-2023 in the amount of $42,541,669. The tentative budget approval sets the ceiling amount, which cannot be increased but can be decreased before final budget adoption. The final public hearing and adoption of the final budget will take place on July 26. The actual total operational expenditure budget is $12,635,329. The rest of the budget allows for capital improvement projects, matching contributions, anticipated grants, and contingency unrestricted funds. Included in the total amount is a $3 million restricted contingency fund balance and a $4,177,897 unrestricted contingency fund balance.
We cannot overstate how important a census count is every 10 years for our City. The final results for the 2021 census showed a decrease in population of about 120 from our previous census count in 2011. We were informed by the state that this loss in population equated to a decrease of state shared revenues in the amount of $81,000 for this year. The City’s Interim Finance Director, Chancy Nutt, advised Council during her presentation at the public meeting that this is a very healthy budget for a city our size. We want to thank our Finance department and all staff members and department heads for their hard work these past couple of months to finalize a balanced budget.
USDA LOW INTEREST RURAL LOAN At its June 28 meeting, Council approved Resolution 1859, which directs staff to apply for a low-interest loan from the United States Department of Agriculture (USDA). The loan will be used for the construction of a new fire station in an amount not to exceed $8 million and for the purchase of a new ladder truck not to exceed $2 million. Our staff will begin the application process, which is very long and detailed and is due by September. The announcement of funding should be around January of 2023. Our current fire station is around 120 years old and our ladder truck is 30 years old. This project would not be possible without the increase in sales tax.
Southwest Gas will be installing the gas lines for the heating of the pool and splash pad. APS will be installing the lighting around the pool areas. After seeing the work that is being done, we believe this project will be something our entire community will be proud of. There is no solid date for the official opening of the pool.
COVID UPDATE Covid case updates are now reported on a weekly basis every Wednesday by the Arizona Health Department. Here are the numbers for the week of June 23 through 29. In Arizona, there were 16,514 new cases recorded and 63 deaths, and a PCR% of 12.3%. In Gila County, there were 111 new cases and zero deaths recorded, and a PRC% of 9.1%. You can still schedule an appointment to get your vaccine or booster at the Gila County Health Department by calling the Vaccine Hotline at (928) 910-4009 and choosing option 1.
HILL STREET SCHOOL APARTMENT PROJECT Gorman & Company received notice on June 1 from the Arizona Department of Housing that their application was successful to receive an allocation of a
9% tax credit to help make the Hill Street School project possible. This project will bring to life this historic school building and create an additional building, which together will house a 64-unit affordable senior housing apartment complex. The next step is to complete the design phase and permitting process in order to finalize the financing. Gorman & Company anticipate closing on the financing sometime in 2023 and then beginning construction. This project is estimated to cost around $18 to $20 million and will take 16 to 18 months to complete construction. We anticipate the opening to take place in the fall of 2024.
FIRST FRIDAY EVENTS AND DOWNTOWN CRUISE The First Friday events continue to grow each month, with more participation from downtown businesses, vendors, and cruisers. Everyone is invited to participate in the downtown cruise, which begins at 6 p.m. We invite all the community to come downtown, support the participating businesses, and enjoy live music, food trucks, and vendors. Anyone wishing to set up a vendor booth during any First Friday event may do so at no cost by contacting Linda Oddonetto.
GLOBE CEMETERY Also at the June 28 meeting, Council approved a contract with Rick Engineering for the Globe Cemetery Expansion Project Design in the amount of $29,950. More space is needed at the City’s cemetery to provide additional burial plots. Because of the low number of plots available, a Declaration was signed in June that allows only City residents or individuals who have close family ties to Globe to purchase one of the remaining plots until more become available.
COMMUNITY CENTER POOL UPDATE City Council and the public had an opportunity to tour the Community Center Pool site these past two weeks. The construction remains on track as expected with the ongoing issues with supply and demand as well as the many additions that have been added on to the initial rendering. The initial flooring for the pool has been poured and the gutter system installed. The next steps are to erect the new entryway, which includes the bathrooms and showers. The poles that will hold up the large shade area will be cemented in, along with the legs of the large slide to be installed, which is one of three that will be on site.
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