Last week the Holbrook City Council approved a tentative budget of $7 million for fiscal year 2023-24 presented by City Manager Ted Soltis. According to budget documents, revenues from various tax funds are slated to increase. The Vehicle License Tax, Highway User Revenue Fund, Sales Transaction Privilege Tax, and the State Income Tax decreased in FY23. In FY24, there is a budgeted increase, partly due to the impact of inflation. Vehicle License Tax is expected to increase by $30,680, Highway User Revenue Fund by $72,712, and State Sales Tax revenue by $16,210.
Health insurance will increase by 4.23% and expenditures for wages will rise significantly due to the impact of the state-mandated minimum wage increase and a cost-of-living adjustment (COLA). Employees were budgeted an across-the-board 7.13% COLA increase. For comparison, the COLA for FY23 was 6.5%.
Soltis noted that the next phase of the airport upgrade, an apron reconstruction, which was deferred from FY23 due to a delay in grant funding, has been budgeted. The amount budgeted includes a grant and matching funds. Additionally, an Arizona Department of Transportation airport surface treatment grant will be used for maintenance to extend pavement life.
The first phase of the cemetery expansion has been completed with over 300 plots being added in FY22. This year, the cemetery walls are scheduled for repair and painting. The mausoleum will also have repair work done, including stucco and marble repair, and paint.
Due to supply issues, the dump truck budgeted for FY23 must be reordered, so it has been re-budgeted. A fire truck is budgeted to replace a 30-year-old truck at the cost of $1.2 million.
Soltis noted that several improvements at the Hidden Cove golf Course should be completed this year, including remodeled bathrooms and the development of a driving range and six golf carts are budgeted.
Funds for the Navajo County Fairgrounds, the Navajo County Historical Society and the Chamber of Commerce have also been increased from $50,000 to $54,000 each for the year.
Funds have once again been budgeted to stabilize the Bucket of Blood buildings, as stabilization work has not been completed. This despite the lack of plans for actual restoration. David Grasse who has the non-profit Preserve Arizona, said that his organization would raise funds to help with aesthetic considerations – windows, doors, boardwalk, signage, and possibly interiors but only once the buildings have been stabilized and are inhabitable.
Soltis wrote that grant funds will be used to continue improvements that were initiated in FY23. Barrow Field will receive lighting. The swimming pool will be refurbished with new flooring, new paint, pool tile repair, a new cover, and the installation of a new pool water heater and filtration system. Additionally, Lewis Park will receive new playground equipment and a re-built basketball court, an item that was noted in last year’s budget.
City administration have budgeted an additional budgeted $600,000 to pay down the debt associated with the Public Safety Personnel Retirement System.
According to Soltis, maintenance of the City’s asphalt streets has been neglected for many years due to insufficient funds but he claims that Holbrook now has sufficient revenues saved to work on major street repairs. This year chip and slurry sealing is scheduled for some roads. He stated, “Over the past few years, we have been preparing for major asphalt road improvements with the purchase of a street sweeper and with crack sealing and pothole repair.”
A new dump truck is budgeted for the Streets Department at $200,000 to replace a 1996 dump truck that frequently breaks down. In addition, a Gannon Tractor is budgeted for Facilities and Levies in the amount of $110,000 and another dump truck in the amount of $62,000 for the cemetery, an order that was canceled last year due to supply issues.
It was noted that water, sewer and sanitation rates will increase by the Consumer Price Index which is budgeted at 7.13% this year. He stated that all three utility departments now balance without the need to continue subsidizing them from the general fund.
New radio-read water meters have been budgeted, which will result in decreased meter-read time and decreased staff time, while increasing accuracy; the goal is to replace 20% of the meters per year until all have been replaced. On average, a 10% increase in calculated water use is expected. Pumps in the water department and waste-water departments have been replaced along with backup pumps. In addition, the SCADA (Supervisory Control and Data Acquisition) system, which allows for remote access and monitoring has been updated; this remote access and monitoring capability reduces staff time. An additional $25,000 is budgeted in the water preservation fund for water rights analysis.
