Consideration and Adoption of Resolution No. 2015-19  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 2015-2016; 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 15-16) PREVIOUSLY AGENDA ITEM 15-C

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.

Invest in our employees and implement retention and attraction strategies

Provide sustainable and equitable public facilities, services and infrastructure systems in an efficient and effective manner to serve all population areas and demographics

As well as impacts many other Council goals

 

• December Budget Retreat on December 9 & 10, 2014
• Mini Budget Advance on January  22 & 28, 2015
• February Budget Advance on February 11 &12, 2015
• Council Budget Advance on April 21 & 22, 2015

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 2015-2016 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 2014 budget retreat, Council concluded that the priorities for the FY2016 budget include: employee investment, staffing and technology and infrastructure.
 
During the February 2015 budget advance, Council provided direction on potential increased revenue opportunities and other fund reallocations.

During the April budget advance, Council provided additional adjustments and they are included in the budget.  After the April budget advance 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 2, 2015               Tentative adoption of budget by Council
            June 16, 2015             Proposed budget and property tax levy hearing
            June 16, 2015             Final budget adoption (done in a Special Meeting)
            June 16, 2015             First reading property tax ordinance
            July 7, 2015                 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 Advances. The City Manager’s recommended budget was discussed during the Council Budget Advance on April 21 and 22, 2015. Public participation was available.