Consideration and Adoption of Resolution No. 2016-23  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 2016-2017; 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 16-17)

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.

1) Invest in our employees and implement retention and attraction strategies
2) Ensure Flagstaff has a long-term water supply for current and future needs
3) Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics
4) Develop and implement guiding principles that address public safety service levels through appropriate staff levels
5) Explore and adopt policies to lower the costs associated with housing to the end user
6) Provide a well-managed transportation system
7) Continue to implement the Flagstaff Regional Plan and focus efforts on specific plans
8) Improve effectiveness of notification, communication, and engagement with residents, neighborhoods and businesses and about City services, programs, policies, projects and developments
9) Improve the economic quality of life for Flagstaff through economic diversification, and by fostering jobs and programs that grow wages and revenues
10) Support and assist the most vulnerable
 

• December Budget Retreat on December 9, 2015
• February Budget Retreat on February 11 & 16, 2016
• Council Budget Worksession on April 26 & 27, 2016

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 2016-2017 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 2015 budget retreat, Council concluded that the priorities for the FY 2016-207 budget include: employee compensation and investment, economic development strategies, infrastructure, assist most vulnerable populations, regional plan implementation and transportation.
 
During the February 2016 budget retreat, Council provided further direction on the Council budget priorities from the December retreat and provided direction on potential increased revenue opportunities.

During the April 2016 budget retreat, Council provided additional requests 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 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 7, 2016               Tentative adoption of budget by Council
            June 21, 2016             Proposed budget and property tax levy hearing
            June 21, 2016             Final budget adoption (done in a Special Meeting)
            June 21, 2016             First reading of property tax ordinance
            July 5, 2016                 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 26 and 27, 2016. Public participation was available.