Consideration and Adoption of Resolution No. 2018-30:  A resolution of the Council of the City of Flagstaff, Arizona adopting the tentative estimates of the amounts required for the public expense for the City of Flagstaff for Fiscal Year 2018-2019; adopting a Tentative Budget; setting forth the receipts and expenditures; the amount proposed to be raised by direct property taxation; giving notice of the time for hearing taxpayers, for adopting of Budget and for fixing the tax levies. (Adopt Tentative Budget for City FY 18-19)

Arizona Revised Statutes (Sections 42-17101, 42-17102, and 42-17105) require that each municipality adopt and publish, in a specified format, a tentative budget. The adoption of the tentative budget has the effect of establishing an amount that cannot be exceeded in the final adoption of the budget.

Furthermore, the adoption of the tentative budget sets into motion a legally mandated time sequence of actions to which the Council must adhere to adopt a final budget and to levy property taxes.

The tentative budget must be adopted to set the appropriate sequence of events in place for final budget adoption.

The 2018-2019 budget is the guiding document for the financial plan of the City for next fiscal year.

Economic Development
Affordable Housing
Social Justice
Transportation and Other Public Infrastructure
Building and Zoning/Regional Plan
Climate Change
Water Conservation
Environmental and Natural Resources
Personnel
Community Outreach
Town & Gown
Code Compliance

• December Budget Retreat on December 12, 2017
• February Budget Retreat on February 12 & 13, 2018
• Council Budget Work Session on April 24 & 25, 2018

The City may delay the tentative budget adoption until no later than the 3rd Monday in July.  While the City would be able to continue operations through a Continuing Disclosure resolution, the City would not be able to commit to any expenditure directly related to the FY 2018-2019 budget.

The budget is generally presented for tentative adoption in late May or early June to assure funding is appropriated within Council Goals and Objectives at the beginning of the fiscal year.

At the December 2017 Council budget retreat, Council established the Council Budget Priorities for 2018-2019.  Along with Council Goals and Objectives, the Budget Priorities that were used to develop the 2018-2019 proposed budget. During the February 2018 budget retreat, Council provided further direction on the  2018-2019 proposed budget based on the Council Goals, Objectives and Budget Priorities. During the April 2018 budget work session, Council provided additional requests, and they are included in the budget.  After the April budget work session divisions provided revised year end estimates and carryover of funding primarily for capital projects.  Divisions are provided this opportunity as the previous estimates they provided were in January.

 The adoption of the tentative budget sets into motion a legally mandated time sequence of actions to which the Council must adhere to adopt a final budget and to levy property taxes.  If this time sequence is not met as required by statute, the tentative adoption, final adoption of the budget and property tax levy actions, and related publications must be started over. 
 
The process is prescribed through Arizona Revised Statutes. The tentative budget must be adopted no later than the 3rd Monday in July.  The schedules for Council budget and property tax levy actions are as follows:
 
            June 5, 2018     Tentative adoption of budget by Council
            June 19, 2018   Truth in taxation, proposed budget and property tax levy public hearing
            June 19, 2018   Final budget adoption (done in a Special Meeting)
            June 19, 2018   First reading of property tax ordinance
            July 3, 2018       Final reading and adoption of property tax ordinance

Funds must be appropriated to allow for expenditures to occur.  The tentative budget must be adopted to set the appropriate sequence of events in place for final budget adoption.

The Community has the opportunity to present any questions or concerns regarding the budget before the final budget adoption occurs in June.

Inform and Involve: The Community has the opportunity to be involved at the public hearing held in conjunction with final adoption.  Citizens are welcome to attend Council Budget retreats. The City Manager’s recommended budget was discussed during the Council Budget Retreat on April 24 and 25, 2018. Public participation was available.  Notice of the proposed change in the primary property tax and public hearing is posted on City social media per A.R.S. Section 9-499.15 and is being published per the A.R.S. Section 42-17107 "truth in taxation" requirements.   Notice of the estimates of the revenues and expenses and public hearing is being distributed and published per A.R.S. Section 42-17103.