The Fiscal Year 2020 budget increased by 28.9% from Fiscal Year 2019 (FY19). This is primarily due to financing of the Schneider Electric energy initiative, which enables the City to catch up on maintenance that was deferred during the economic downturn. That initiative also makes lasting improvements to City recreational facilities that will enhance efforts to attract more tournaments, visitors, and dollars to the community.
The City budget steadily increased from 2005 until 2008, when Sierra Vista and the rest of the United States experienced recession. Due to conservative budgeting and strict financial management, the City did not experience the same budget shortfalls that many others did around the country. Following the recession, the FY10 Budget was inflated due to one-time revenue of $21.5 million in American Recovery and Reinvestment Act Funds. The City implemented budget reduction measures before adoption of the FY14 Budget. These measures included a hiring freeze, reorganizations, and a reduction in capital expenditures, which have continued in the years since. As a result, the FY20 budget reflects fiscal stability through conservative budgeting and ongoing efficiencies and reductions in operations and maintenance costs.
While the City is still experiencing challenges from the economic downturn, Sierra Vista is starting to see growth in local sales tax, buildings permits, and state shared revenue. Thanks to a history of conservative budgeting, the City remains in a strong financial position, which promises to improve further as the local economy shows signs of recovery.