Consideration and Adoption of Resolution No. 2013-13:  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 2013-2014; adopting a Tentative Budget; setting for 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)

• November Budget Retreat on November 14 & 15, 2012
• Mini Budget Retreats on December 12, 2012, January 11 & 22, 2013 & February 4, 2013,
• February Budget Retreat  on February 14 & 15, 2013
• Council Budget Meetings on April 24, 25 and 26, 2013.

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 2013-2014 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 November 2012 budget retreat Council provided direction to prepare a budget based on a flat primary property tax levy.  This is meant to keep the amount of revenue collected at the same level as in FY 2013.  This budget agrees to Council direction.  Due to no increase in the levy, the City is excluded from Truth in Taxation requirements.  We added new construction which amounted to $94,078. 
 
During the February 2013 budget retreat Council provided direction to prepare a budget that addresses needs to maintain infrastructure and increase compensation for City staff.  The City Manager presented a budget in April that provided $390,000 for General Fund fleet, facilities, and parks infrastructure needs to maintain current conditions in these areas.  The budget also provides $2,450,000 in additional funding for street preservation.   The budget, in addition,  includes an increase in employee compensation through a 3.2% market adjustment. 
 
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 December. 

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 4, 2013               Tentative adoption of budget by Council
            June 18, 2013             Proposed budget and property tax levy hearing
            June 18, 2013             Final budget adoption (done in a Special Meeting)
            June 18, 2013             First reading property tax ordinance
            July 2, 2013                 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, 25, and 26, 2013. Public participation was available.