Council approves final FY23 budget
On Thursday, the Sierra Vista City Council adopted the City’s final budget for the new fiscal year that began on July 1 with no changes made since the tentative budget was approved in June.
The final budget of about $204 million reflects a 76.5% increase over last fiscal year primarily due to pending grant applications. The value of all potential grants must be included in the City's budget under Arizona state law so that, if awarded, the funds can be spent. These grants account for $81.4 million of the final budget and are largely focused on road maintenance and improvements with significant federal transportation money available this year.
An energy initiative being completed with Schneider Electric accounts for about $26 million, which is funded through bonds issued this year. The initiative tackles major City needs and numerous strategic objectives set by the City Council without requiring any additional tax burden on local citizens as the debt service will be repaid by a portion of the City’s sales tax collection reserved for capital improvements. It will also result in significant energy and water savings over time.
Notable projects in the budget include significant improvements to the Veterans Memorial Park Sports Complex, various infrastructure upgrades that will improve energy and water efficiency, the installation of EV charging stations in some public parking lots, and the next phase of streetscape improvements in the West End that will extend along North Garden Avenue.
The council also held a public hearing on the proposed property tax levy for fiscal year 2023. The proposed rate of $0.1098 per $100 of assessed value is slightly lower than last year due to an increase in valuation of taxable property. Lowering the rate ensures citizens pay the same amount as last year. The City’s estimated property tax revenue is $379,068, which is an increase from $377,145 in fiscal year 2022 due to new construction. The property tax levy will return to the council for final action in August.