Consideration and Adoption of Resolution No. 2014-19:  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 2014-2015; 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.

Arizona State Statutes (ARS. 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.

Effective governance
Repair, replace, maintain infrastructure (streets & utilities)

• December Budget Retreat on December 4, 2013
• Mini Budget Retreat on January 23, 2014
• February Budget Retreat  on February 10, 2014
• Council Budget Meetings on April 23, 24 and 25, 2014.

The City could 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 2014-2015 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 2013 budget retreat, Council concluded that the priorities for the FY2015 budget include: employee compensation, staffing and infrastructure.
 
During the February 2014 budget retreat, Council provided direction to prepare a budget that addresses employee compensation and some staffing using available ongoing funding and infrastructure needs and staffing using available one time funding.  Specifically related to infrastructure, Council directed to prioritize one-time funding to the areas of facilities and information technology.  The City Manager presented a budget in April that provided $1.0 million ongoing and $450,000 one time funding to address employee compensation, $500,000 ongoing and $580,000 one time funding for staffing needs, and $580,000 ongoing and $4.6 million one time funding for infrastructure needs.
 
During the April budget retreat, Council provided additional adjustments and they are included in the budget.  After the April budget retreat 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 State Statute. 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 3, 2014               Tentative adoption of budget by Council
            June 17, 2014             Proposed budget and property tax levy hearing
            June 17, 2014             Final budget adoption (done in a Special Meeting)
            June 17, 2014             First reading property tax ordinance
            July 1, 2014                 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 23, 24, and 25, 2014. Public participation was available.