Consideration and Adoption of Resolution No. 2024-25:  A resolution of the Council of the City of Flagstaff, Arizona adopting the tentative budget for Fiscal Year 2024-2025.
 

1. Read Resolution No. 2024-25 by title only
2. City Clerk reads Resolution No. 2024-25 by title only (if approved above)
3. Adopt Resolution No. 2024-25

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 Fiscal Year 2024-2025 budget is the guiding document for the financial plan of the City.

• January Council Retreat on December 14, 2023
• February Budget Retreat on February 1, 2024 and February 2, 2024
• March Capital Improvement Budget Retreat on March 28, 2024
• Council Budget Work Session on April 25, 2024 and April 26, 2024

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 expenditures directly related to the Fiscal Year 2024-2025 budget.

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

During the summer of 2023, staff engaged the community to confirm, revise or amend the objectives that help deliver our Key Community Priorities.  In November 2023, Council approved the changes to the objectives.  These priorities and objectives were used to develop the FY 2024-2025 proposed budget. 

At the December 2023 budget retreat, staff presented several topics including budget introduction, fiscal policies, revenue updates, priority based budgeting, budget team focus for the budget and updates on recruitment and retention, consideration of new city holidays and election update.  During the February 2024 budget retreat staff presented and received further direction from Council for the FY 2024-2025 proposed budget.  Topics included priority based budgeting, revenue updates, fixed cost updates, compensation and benefits, resource allocations and priorities and resource needs.  In March, we held a Capital Improvement Plan Budget Retreat to review and discuss all capital improvement plans for all funds of the City.  Staff presented the 5-year plans and provided information such as funding resources, how they are developed, and some highlights of current projects.  During the April 2024 budget work session, staff presented the City Manager's proposed budget and received Council direction. After the April budget work session, divisions provided revised year-end estimates and carryover of funding primarily for capital projects.

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 the 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 4, 2024 - Tentative adoption of the budget by Council
• June 18, 2024 - Proposed budget and property tax levy public hearing
• June 18, 2024 - Final budget adoption (In a Special Meeting)
• June 18, 2024 - First reading of property tax ordinance
• July 2, 2024 - Final reading and adoption of the property tax ordinance

The adoption of the Annual Budget and Financial Plan provides Council direction and financial resources to support the Key Community Priorities and Objectives.

None.

The adoption of the Annual Budget and Financial Plan supports the Carbon Neutrality Plan by allocating financial resources the CNP goals. 

The adoption of the Annual Budget and Financial Plan supports the 10 Year Housing Plan by allocating financial resources to the plan's strategies.