Pinetop Lakeside adopts FY2026 budget as council vows deeper cuts and ongoing review

The Pinetop Lakeside Town Council unanimously approved Resolution 25-1785 on Wednesday to adopt the town’s fiscal year 2025–26 final budget, a measure councilors said meets the statutory adoption deadline while leaving a series of follow-up actions to restore fiscal health. The vote followed a presentation by consultants from the James Vincent Group and town staff detailing revenue shortfalls, declining fund balances and planned contingency increases.
The budget the council adopted keeps total expenditures at about $41.9 million, funds 66 full‑time equivalent positions and increases the town’s contingency to roughly $1 million, a change consultants said was needed to avoid cutting essential services too quickly. “I think, ultimately, though, we have a plan to go forward,” said Gabe Buldra, a partner with the James Vincent Group, during the presentation.
Nut graf: The adopted budget meets the legal adoption deadline but does not resolve the town’s structural gap: revenues have risen about 4 percent over four years while expenditures have grown roughly 15 percent, the consultants said. With projected fund balances shrinking to roughly $2 million and no dedicated capital reserves, the council and staff said they will immediately pursue targeted cuts, revenue options and monthly financial reporting to the council.
Councilors and consultants described the steps staff will take next: continue line‑item reviews with department heads, identify nonessential programs for reduction or elimination, evaluate wage‑scale costs, and build a 10‑year capital plan. Sarah (no last name provided), presenting for James Vincent Group, said the consultant team and town staff will return with targets and recommended priorities for services and capital.
Town Manager Rick Miller and department directors emphasized that much work already has been done to reduce spending since the preliminary budget was presented, and that additional reductions will be difficult. Miller noted the town serves many seasonal visitors and second‑home owners and urged more local shopping and year‑round residency as ways to improve sales‑tax revenue.
Public comment: Larry McCormick, a resident who said he lives in the county near Pinetop Lakeside, urged the council to find funds for nonprofits such as the senior community center and Meals on Wheels, calling a modest request “a small amount compared with the budget.” The council and staff responded that grants and one‑time donations appear in the larger budget totals but are not the same as recurring operating revenue; consultants estimated the realistic recoverable share of budgeted grants and donations would be much smaller than the total line item.
Formal action: Councilor Smith moved to approve Resolution 25‑1785 adopting the fiscal year 2025–26 final budget; a second was made on the floor and the motion carried. During roll call Councilor Phillips, Councilor Heisler and the vice mayor each signaled “Aye,” and the mayor declared the motion carried unanimously.
Ending: Councilors directed staff and the consultants to return to the council with monthly financial presentations beginning in September and with specific reduction or revenue options for later hearings. Staff said these reviews will include a 12‑month rolling cash‑flow and periodic updates to the council as work continues.