Others present: City Manager Greg Clifton; City Attorney Sterling Solomon.

Mr. Clifton offered some opening remarks then turned things over to Katie Wittekind who facilitated the retreat.
 
A PowerPoint presentation was presented that covered the following:
 
DAY 2 OPENING AND OVERVIEW
KEY COMMUNITY PRIORITIES
KEY COMMUNITY PRIORITIES – FY 2022-2023 BASE BUDGET
 
Interim Deputy City Manager Heidi Hansen continued the presentation.
 
ROBUST RESILIENT ECONOMY
LIVABLE COMMUNITY
ENVIRONMENTAL STEWARDSHIP
 
Vice Mayor Aslan asked if the Active Transportation Master Plan will have its own lead engineer. City Engineer Paul Mood state that the Traffic Engineer will be the lead engineer over the Active Transportation Master Plan.
 
Councilmember McCarthy spoke about his desire to see a greater focus on Amtrak and keeping them up and running through the country. He spoke about their fuel efficiency in comparison to airplanes. Mr. Mood stated that staff is working with Amtrak on the southside platform as part of the First Mile Last Mile project. Ms. Hansen added that Discover Flagstaff does advertising for Amtrak. Staff has recently received information about some grant opportunities and they are actively working on those applications. She stated that information can be presented to Council about the work being done in support of rail travel.
 
City Engineer Paul Mood continued the presentation.
 
FUTURE PLANNING
UNFUNDED CAPITAL IMPROVEMENTS
 
Fire Chief Mark Gaillard continued the presentation.
 
FIRE DEPARTMENT FACILITY PROJECTS
 
Vice Mayor Aslan asked if anyone has looked at the engineering possibilities for Fire Station #6 related to expansion. Chief Gaillard stated that there has been due diligence at the existing property. There is only about three-quarters of an acre and part of that is deed restricted as open space. There is just not enough room and a challenged site will drive the cost even higher.
 
Police Chief Dan Musselman continued the presentation.
 
POLICE FACILITY EXPANSION
 
A break was held from 9:57 a.m. through 10:16 a.m.
 
Mr. Clifton continued the presentation.
 
SUNNYSIDE STEAM/NEIGHBORHOOD FACILITY
 
Councilmember McCarthy noted his support for the project, but he would like to understand what other uses there could be for the discretionary funding. Mr. Clifton offered that he does not believe that there are any other projects that are as well formulated as this.
 
Council expressed support to move forward with the project.
 
Public Works Director Scott Overton continued the presentation.
 
FACILITIES CAPITAL RENEWAL
CITY STORAGE
 
Planning Director Michelle McNulty continued the presentation.
 
OLD COURTHOUSE SITE REDEVELOPMENT
 
Assistant Parks, Recreation, Open Space, and Events Director Amy Hagin continued the presentation.
 
GIRLS SOFTBALL COMPLEX
 
Open Space Supervisor Robert Wallace continued the presentation.
 
ACQUISITION OF OPEN SPACE
 
Ms. Hansen continued the presentation.
 
EAST FLAGSTAFF LIBRARY
 
Water Services Director Shannon Jones continued the presentation.
 
WATER SERVICES RESILIENCY
EXPANSION AND ENHANCEMENT OF WATER SERVICES
 
Councilmember McCarthy asked about a water rate study. Mr. Jones stated that they are beginning a rate structure study, but it will not fix the entire $650 million need. Mr. Clifton stated that more information will be coming to Council soon. He anticipates that it will be a discussion like what was had with the stormwater rate study. The rate structure cannot shoulder the entire burden of the projects; there will have to be a lot of strategizing on what can be brought in to fund these things.
 
Mr. Mood continued the presentation.
 
BUTLER AVENUE “COMPLETE STREET”
LONE TREE REALIGNMENT & INTERCHANGE
 
Councilmember McCarthy asked what the higher priority is between the intersection and raising the bike lanes to sidewalk level. Mr. Mood stated that they are both high priorities, and it just depends on which grants are available and which projects are suitable for the grants at the time. Councilmember McCarthy stated that the cost to maintain the candlesticks and curbs is significant and if there was a way to work that project ahead that would save the recurring costs.
 
Councilmember Sweet and Councilmember Matthews expressed support for advancing the protected intersections on Beaver.
 
Sustainability Director Nicole Antonopoulos continued the presentation.
 
CARBON NEUTRALITY
 
A break was held from 11:40 a.m. through 12:12 p.m.
 
Management Services Director Rick Tadder continued the presentation.
 
FINANCIAL PLANNING FOR FUTURE CONSIDERATIONS
GENERAL FUND 10-YEAR PLAN SOURCES AND USES
GENERAL FUND FUNDING
GENERAL FUND 10-YEAR PLAN FUTURE SOURCES AND USES
HURF FUND 10-YEAR PLAN SOURCES AND USES
 
Streets and Facilities Section Director Sam Beckett continued the presentation.
 
HURF FUNDING
 
Mr. Tadder continued the presentation.
 
HURF FUND 10-YEAR PLAN FUTURE SOURCES AND USES
WATER SERVICES FUNDS 10-YEAR PLAN SOURCES AND USES
 
Mr. Jones continued the presentation.
 
WATER SERVICES FUNDING
 
Mr. Tadder continued the presentation.
 
WATER SERVICES FUND 10-YEAR PLAN FUTURE SOURCES AND USES
REVENUE TOOLBOX
USER FEES
RATES
STATE SHARED REVENUES
PRIMARY PROPERTY TAX
SECONDARY PROPERTY TAX
VOTER APPROVED TRANSACTION PRIVILEGE TAXES (SALES TAX)
DEBT OPTIONS
DEVELOPMENT FEES (IMPACT FEES)
CAPACITY FEES
GRANTS
STATE AND FEDERAL APPROPRIATIONS
BALLOT MEASURES DISCUSSION
GENERAL OBLIGATION (GO) BONDS
WHAT ARE GO BONDS
SECONDARY PROPERTY TAX
LEGAL LIMITS
CITY POLICY LIMITS
TAX RATE CAPACITY
TAX PAYER IMPACTS
EXPENDITURE LIMITATION
VOTER APPROVED TPT TAXES
 
Ms. Hansen continued the presentation.
 
BED, BOARD AND BEVERAGE TAX
 
Councilmember McCarthy suggested reducing the restaurant percentage to 1.5% and keeping it at 2% for the other uses.
 
Mayor Daggett stated that the BBB tax was one of the best things Flagstaff ever did, the revenues do so many positive things throughout the community, and she is not interested in reducing it anywhere.
 
There was no interest from Council to entertain a reduction.
 
Management Analyst Chris Rhode continued the presentation.
 
PRIORITY BASED BUDGET
PRIORITIES AND OBJECTIVES
KEY COMMUNITY PRIORITIES
PRIORITY BASED BUDGETING PRIORITIES AND OBJECTIVES
POSSIBLE APPROACHES
POSSIBLE PROCESSES 
COUNCIL DIRECTION
 
Council discussed the PBB priorities and objectives. They agreed that the seven priorities are still relevant and suggested a review of the objectives for each.
 
Councilmember House encouraged as much engagement as possible with the neighborhood associations, community partners, and social service providers. Bring them into the process to focus in on the localized needs and to ensure that their voices are at the table. Councilmember Harris suggested engaging the youth as well.
 
A break was held from 1:51 p.m. through 2:06 p.m.
 
COUNCIL PARKING LOT ADDS/DELETES
 
Key requests from Council:

• Staff report on Amtrack in conjunction with the airport.
• Consideration of a bigger raise for employees.
• Consider increasing the floor of the employee pay for performance raise with a 3% minimum.
• Prioritization of protected intersections and raised bikeways.
• Consider the use of the Council initiative fund toward AOK Flag (burial services for families in need).
• Attempt to fund outstanding capital projects.
• Consider the use of the Council initiative fund toward the Arizona Trail Association.
• Increase outreach about scholarships for parks and recreation programming.
• Consider support of local festivals.