CITY COUNCIL REGULAR MEETING
TUESDAY, JUNE 2, 2026
CITY HALL COUNCIL CHAMBERS
211 WEST ASPEN AVE
3:00 P.M.
TUESDAY, JUNE 2, 2026
CITY HALL COUNCIL CHAMBERS
211 WEST ASPEN AVE
3:00 P.M.
MINUTES
1.
CALL TO ORDER
Mayor Daggett called the meeting of the Flagstaff City Council held June 2, 2026, to order at 3:01 p.m.
NOTICE OF OPTION TO RECESS INTO EXECUTIVE SESSION
Mayor Daggett called the meeting of the Flagstaff City Council held June 2, 2026, to order at 3:01 p.m.
NOTICE OF OPTION TO RECESS INTO EXECUTIVE SESSION
Pursuant to A.R.S. §38-431.02, notice is hereby given to the members of the City Council and to the general public that, at this regular meeting, the City Council may vote to go into executive session, which will not be open to the public, for discussion and consultation with the City’s attorneys for legal advice on any item listed on the following agenda, pursuant to A.R.S. §38-431.03(A)(3).
2.
ROLL CALL
| NOTE: One or more Councilmembers may be in attendance through other technological means. |
- Present:
-
- Mayor Becky Daggett
- Vice Mayor Miranda Sweet
- Councilmember Austin Aslan
- Councilmember Anthony Garcia
- Councilmember Khara House
- Councilmember Lori Matthews
- Councilmember David Spence
- Staff:
- City Manager Joanne Keene; City Attorney Sterling Solomon
3.
PLEDGE OF ALLEGIANCE, MISSION STATEMENT, AND LAND ACKNOWLEDGEMENT
The Council and audience recited the pledge of allegiance, Councilmember Garcia read the Mission Statement of the City of Flagstaff, and Councilmember Aslan read the Land Acknowledgement.
The Flagstaff City Council humbly acknowledges the ancestral homelands of this area’s Indigenous nations and original stewards. These lands, still inhabited by Native descendants, border mountains sacred to Indigenous peoples. We honor them, their legacies, their traditions, and their continued contributions. We celebrate their past, present, and future generations who will forever know this place as home.
The Council and audience recited the pledge of allegiance, Councilmember Garcia read the Mission Statement of the City of Flagstaff, and Councilmember Aslan read the Land Acknowledgement.
MISSION STATEMENT
The mission of the City of Flagstaff is to protect and enhance the quality of life for all.LAND ACKNOWLEDGEMENT
4.
OPEN CALL TO THE PUBLIC
Senator Wendy Rogers addressed the Council and reported that two of her bills had recently been signed by the Governor. The first, referred to as the “water bill,” had been in development for three years and enables homeowners to expedite the removal of squatters from their property. The second bill, the “rural blight bill,” championed by Gila County, places the financial burden of restoring blighted rural properties on the property owner rather than the county.
Jessica Drum, Community Relations Manager at Northern Arizona Healthcare, thanked the Council for its proclamation recognizing May as Mental Health Awareness Month. She reported that Northern Arizona Healthcare and its partners organized more than 36 community events in May with participation by over 1,000 community members. She noted that fundraising efforts, including the sale of Mental Health Matters t-shirts, raised nearly $67,000 in support of a first responder counseling service that provides confidential counseling and crisis support to Guardian Air and Medical Transport personnel.
Wilma Ennenga addressed the Council regarding a May 15th scoping letter she received related to the Butler/4th Street Improvement Project. She raised concerns about inaccuracies in the project maps, the adequacy of public notice prior to the comment deadline of June 15th, the location of proposed culverts and retaining walls, the future status of Switzer Wash, and the need for a pedestrian crosswalk at Sinagua Heights Drive and Butler Avenue.
Dapper Dre addressed the Council on the fifth anniversary of the 2021 Tragic Bike Party crash that resulted in the death of Johanna Wheaton. He spoke about what he described as a systematic prioritization of automobile traffic over pedestrian and bicycle infrastructure and urged the Council to invest more meaningfully in protected bike lanes, pedestrian crossings, and street improvements consistent with the city’s adopted transportation and climate plans. He noted that he had personally invested $12,000 in sponsoring downtown street closures and called on the city to expand bollard installations and other pedestrian improvements.
Nan Thaler also addressed the Council regarding the Butler/4th Street Improvement Project, expressing concern about increased truck traffic in the area given the growing residential density, and requesting more detailed information about the retaining wall design and noise mitigation measures.
Jessica Drum, Community Relations Manager at Northern Arizona Healthcare, thanked the Council for its proclamation recognizing May as Mental Health Awareness Month. She reported that Northern Arizona Healthcare and its partners organized more than 36 community events in May with participation by over 1,000 community members. She noted that fundraising efforts, including the sale of Mental Health Matters t-shirts, raised nearly $67,000 in support of a first responder counseling service that provides confidential counseling and crisis support to Guardian Air and Medical Transport personnel.
Wilma Ennenga addressed the Council regarding a May 15th scoping letter she received related to the Butler/4th Street Improvement Project. She raised concerns about inaccuracies in the project maps, the adequacy of public notice prior to the comment deadline of June 15th, the location of proposed culverts and retaining walls, the future status of Switzer Wash, and the need for a pedestrian crosswalk at Sinagua Heights Drive and Butler Avenue.
Dapper Dre addressed the Council on the fifth anniversary of the 2021 Tragic Bike Party crash that resulted in the death of Johanna Wheaton. He spoke about what he described as a systematic prioritization of automobile traffic over pedestrian and bicycle infrastructure and urged the Council to invest more meaningfully in protected bike lanes, pedestrian crossings, and street improvements consistent with the city’s adopted transportation and climate plans. He noted that he had personally invested $12,000 in sponsoring downtown street closures and called on the city to expand bollard installations and other pedestrian improvements.
Nan Thaler also addressed the Council regarding the Butler/4th Street Improvement Project, expressing concern about increased truck traffic in the area given the growing residential density, and requesting more detailed information about the retaining wall design and noise mitigation measures.
5.
PROCLAMATIONS AND RECOGNITIONS
A.
Proclamation: Gun Violence Awareness Day
Councilmember Spence and presented the proclamation.
6.
COUNCIL LIAISON REPORTS
Councilmember Spence reported that the Open Spaces Commission held a field trip to Picture Canyon and received updates on improvements to trails and signage at the site.
Vice Mayor Sweet reported that the Mountain Line Board of Directors accepted the retirement notice from CEO and General Manager Heather Dalmolin, who will transition out of the role in November. The board is exploring interim leadership and will begin a recruitment process for a new CEO. Vice Mayor Sweet also noted an upcoming Metro Plan meeting at the Downtown Conference Center.
Councilmember Aslan reported on three liaison meetings. At the Tourism Commission, the major discussion item was a presentation by Management Services Director Rick Tadder on the BBB tax. At the Coconino Plateau Water Advisory Committee, a presentation was given by Blaise Lasla of New Mexico Tech on his graduate research into the karst hydrology of the Kaibab Plateau and the Grand Canyon region. At the Sustainability Commission, staff provided an overview of the 2024 International Energy Conservation Code updates and Noah Baker presented updates on the Wildland Urban Interface code.
Councilmember Matthews reported that the Healing Center steering committee met on and, while receiving some setback news, continues to make progress with community partners. A needs assessment is expected to be completed within the next few weeks.
Vice Mayor Sweet reported that the Mountain Line Board of Directors accepted the retirement notice from CEO and General Manager Heather Dalmolin, who will transition out of the role in November. The board is exploring interim leadership and will begin a recruitment process for a new CEO. Vice Mayor Sweet also noted an upcoming Metro Plan meeting at the Downtown Conference Center.
Councilmember Aslan reported on three liaison meetings. At the Tourism Commission, the major discussion item was a presentation by Management Services Director Rick Tadder on the BBB tax. At the Coconino Plateau Water Advisory Committee, a presentation was given by Blaise Lasla of New Mexico Tech on his graduate research into the karst hydrology of the Kaibab Plateau and the Grand Canyon region. At the Sustainability Commission, staff provided an overview of the 2024 International Energy Conservation Code updates and Noah Baker presented updates on the Wildland Urban Interface code.
Councilmember Matthews reported that the Healing Center steering committee met on and, while receiving some setback news, continues to make progress with community partners. A needs assessment is expected to be completed within the next few weeks.
7.
LIQUOR LICENSE PUBLIC HEARINGS
Applications under Liquor License Public Hearings may be considered under one public hearing and may be acted upon by one motion unless otherwise requested by Council.
Applications under Liquor License Public Hearings may be considered under one public hearing and may be acted upon by one motion unless otherwise requested by Council.
Mayor Daggett opened the public hearing on all applications.
Chief of Staff Jessica Matias introduced the applications and indicated that the Police Department and Planning and Development Services had provided their respective findings.
There being no public comment Mayor Daggett closed the public hearing.
Chief of Staff Jessica Matias introduced the applications and indicated that the Police Department and Planning and Development Services had provided their respective findings.
There being no public comment Mayor Daggett closed the public hearing.
A.
Consideration and Action on Liquor License Application: Keith Brian Turner "Lowell Observatory," 1400 W Mars Hill Rd, Series 007 (Beer and Wine Bar), Location/Owner.
Moved by Councilmember Khara House, seconded by Vice Mayor Miranda Sweet to forward the application to the State with a recommendation for approval.
Vote: 7 - 0 - Unanimously
B.
Consideration and Action on Liquor License Application: Chirasin Pouenmuang "Swaddee Thai," 115 E Aspen Ave., Series 12 (Restaurant), New Application
Moved by Councilmember Khara House, seconded by Vice Mayor Miranda Sweet to forward the application to the State with a recommendation for approval.
Vote: 7 - 0 - Unanimously
8.
CONSENT AGENDA
All matters under Consent Agenda are considered by the City Council to be routine. Unless a member of City Council expresses a desire at the meeting to remove an item from the Consent Agenda for discussion, the Consent Agenda will be enacted by one motion approving the recommendations listed on the agenda. Unless otherwise indicated, expenditures approved by Council are budgeted items.
All matters under Consent Agenda are considered by the City Council to be routine. Unless a member of City Council expresses a desire at the meeting to remove an item from the Consent Agenda for discussion, the Consent Agenda will be enacted by one motion approving the recommendations listed on the agenda. Unless otherwise indicated, expenditures approved by Council are budgeted items.
Moved by Councilmember Anthony Garcia, seconded by Councilmember David Spence to approve the Consent Agenda as posted.
Vote: 7 - 0 - Unanimously
A.
Consideration and Approval of Contract: Cooperative Purchase Contract No. 2026-198 with DataBank IMX, LLC for Hyland OnBase Subscription Services
- Approve Cooperative Purchase Contract No. 2026-198 with DataBank IMX, LLC for a three-year Hyland OnBase Enterprise subscription in an amount not to exceed $164,702.51.
- Authorize the City Manager to execute all necessary documents.
B.
Consideration and Approval of Contract: Cooperative Purchase Contract with CDW Government LLC (CDW-G) for Information Technology Products, Services, Software, and Licensing
- Approve the Cooperative Purchase Contract utilizing City of Mesa Contract No. 2024056-01 with CDW Government LLC for Information Technology Solutions, Products, and Services in an amount not to exceed $1,500,000 annually; and
- Ratify Microsoft licensing purchases made with CDW Government LLC under the previously expired cooperative purchase contract in the amount of $390,042.14; and
- Authorize the City Manager to execute all necessary documents.
C.
Consideration and Approval of Contract: Amendment to Contract with MSS Business Transformation Advisory, Inc. for the City of Flagstaff Modernization Initiative
- Approve the First Amendment to Contract with MSS Business Transformation Advisory, Inc. to provide additional services related to program management, advisory, procurement, implementation oversight, and delivery support services associated with the City's ERP Modernization, Community Development Modernization, and CAD/RMS implementation initiatives and add $1,617,900 in compensation for said ongoing services; and
- Authorize the City Manager to execute all necessary documents.
D.
Consideration and Approval of Contract: Revisions to Rental Incentive Bond Program loan documents for Elkwood Apartments (Wexford Developments)
Staff requests City Council's approval of revised loan documents related to a $528,000 forgivable loan to Elkwood Partners LP, utilizing Rental Incentive Bond Program funds, for affordable housing (Elkwood Apartments).
Staff requests City Council's approval of revised loan documents related to a $528,000 forgivable loan to Elkwood Partners LP, utilizing Rental Incentive Bond Program funds, for affordable housing (Elkwood Apartments).
E.
Consideration and Approval of Contract: Well and Pump Maintenance Contract Amendment
Approve an amendment to the contract with Empire Pump Corporation to allow an annual not to exceed amount of $950,000 for current contract year.
F.
Ratification of Letter of Support: CRISI Grant Application
Retroactively approve the letter.
9.
ROUTINE ITEMS
A.
Consideration and Approval of Contract: Digital Ad Server Master Services Agreement with Adgenuity, LLC in the amount of $285,000, annually.
Marketing and Media Relations Manager Lori Pappas provided a PowerPoint presentation that covered the following:
DIGITAL AD SERVER
PAID DIGITAL AD CREATIVE
DIGITAL AD SERVER VENDOR: AD+GENUITY
Councilmember Garcia asked whether the return on investment could be quantified, and Ms. Pappas indicated that the return on ad spend is measured and hovers around $150 for every dollar spent.
Councilmember Matthews and Vice Mayor Sweet commented on the value of targeted digital advertising in travel decisions.
DIGITAL AD SERVER
PAID DIGITAL AD CREATIVE
DIGITAL AD SERVER VENDOR: AD+GENUITY
Councilmember Garcia asked whether the return on investment could be quantified, and Ms. Pappas indicated that the return on ad spend is measured and hovers around $150 for every dollar spent.
Councilmember Matthews and Vice Mayor Sweet commented on the value of targeted digital advertising in travel decisions.
Moved by Councilmember Lori Matthews, seconded by Vice Mayor Miranda Sweet to approve the Digital Ad Server Master Services Agreement with Adgenuity, LLC in the amount of $285,000, annually; and authorize the City Manager to execute the necessary documents.
Vote: 7 - 0 - Unanimously
B.
Consideration and Approval of Contract: Banking and Depository Services with Wells Fargo Bank
Management Services Director Rick Tadder provided a PowerPoint presentation that covered the following:
BANKING AND DEPOSITORY SERVICES
PROCUREMENT PROCESS
EVALUATION CRITERIA – SERVICE REQUIREMENTS
EVALUATION CRITERIA – DELIVERABLES
EVALUATION CRITERIA – PRICING
EVALUATION CRITERIA – SUSTAINABLE PROCUREMENT
EVALUATION CRITERIA
WHO RESPONDED
RFP REVIEW PROCESS
REQUEST FOR PROPOSAL RESULTS
STAFF RECOMMENDATION
Councilmember House inquired whether any community green banking institutions had applied and was informed that while one entity was in the pre-proposal phase, no additional banks ultimately submitted proposals, despite the RFP structure being designed to accommodate smaller institutions.
Council expressed appreciation for the depth of the process, the inclusion of sustainability scoring, and the team’s responsiveness to the original citizen petition.
City Manager Keene also recognized Mr. Tadder, Purchasing Director Patrick Brown, and Sustainability Director Nicole Antonopoulos for the extensive work invested in both the procurement code amendment and the RFP process.
BANKING AND DEPOSITORY SERVICES
PROCUREMENT PROCESS
EVALUATION CRITERIA – SERVICE REQUIREMENTS
EVALUATION CRITERIA – DELIVERABLES
EVALUATION CRITERIA – PRICING
EVALUATION CRITERIA – SUSTAINABLE PROCUREMENT
EVALUATION CRITERIA
WHO RESPONDED
RFP REVIEW PROCESS
REQUEST FOR PROPOSAL RESULTS
STAFF RECOMMENDATION
Councilmember House inquired whether any community green banking institutions had applied and was informed that while one entity was in the pre-proposal phase, no additional banks ultimately submitted proposals, despite the RFP structure being designed to accommodate smaller institutions.
Council expressed appreciation for the depth of the process, the inclusion of sustainability scoring, and the team’s responsiveness to the original citizen petition.
City Manager Keene also recognized Mr. Tadder, Purchasing Director Patrick Brown, and Sustainability Director Nicole Antonopoulos for the extensive work invested in both the procurement code amendment and the RFP process.
Moved by Councilmember Lori Matthews, seconded by Councilmember David Spence to approve the contract with Wells Fargo Bank; and authorize the Management Services Director to execute all necessary documents.
Vote: 7 - 0 - Unanimously
C.
Consideration and Approval of Contract and Discussion and Direction on RFP: Purchase agreement with FSL Holding Properties, LLC for real property consisting of block 45 of the Flagstaff Townsite, addressed as 320 N Humphreys Street.
Real Estate Manager Bryce Doty provided a PowerPoint presentation that covered the following:
320 S. HUMPHREYS ACQUISITION
LOCATION – 320 S. HUMPHREYS (“FSL PARCEL”)
BACKGROUND
FUNDING
AFFORDABLE HOUSING SOLICITATION
POST CLOSE ACTIONS
Vice Mayor Sweet asked about contingency planning if the courthouse sale proceeds are not available. Mr. Tadder stated that the city would carry a negative balance on that funding line as a future receivable without impacting other general fund operations while they continue efforts for redevelopment.
320 S. HUMPHREYS ACQUISITION
LOCATION – 320 S. HUMPHREYS (“FSL PARCEL”)
BACKGROUND
FUNDING
AFFORDABLE HOUSING SOLICITATION
POST CLOSE ACTIONS
Vice Mayor Sweet asked about contingency planning if the courthouse sale proceeds are not available. Mr. Tadder stated that the city would carry a negative balance on that funding line as a future receivable without impacting other general fund operations while they continue efforts for redevelopment.
Moved by Councilmember Khara House, seconded by Vice Mayor Miranda Sweet to approve the purchase agreement with FSL Holding Properties, LLC and authorize the City Manager to execute the necessary documents; and authorize the City Manager to execute the necessary documents.
Vote: 7 - 0 - Unanimously
City Manager Keene then sought Council direction on proceeding with an RFP for a housing and parking development on the site. She noted the intent to act quickly in order to potentially meet Low Income Housing Tax Credit deadlines.
Councilmember Matthews asked whether the RFP could separate the parking and housing components, and Ms. Keene indicated that while parking improvements would begin immediately, the RFP structure would likely incorporate both components, with further due diligence conducted over the summer.
Councilmember Spence asked that the RFP be structured to weight proposals offering a higher percentage of affordable housing units, including a range of affordability levels such as 20%, 50%, and 80% AMI.
Council provided unanimous direction for staff to proceed with drafting the RFP.
Councilmember Matthews asked whether the RFP could separate the parking and housing components, and Ms. Keene indicated that while parking improvements would begin immediately, the RFP structure would likely incorporate both components, with further due diligence conducted over the summer.
Councilmember Spence asked that the RFP be structured to weight proposals offering a higher percentage of affordable housing units, including a range of affordability levels such as 20%, 50%, and 80% AMI.
Council provided unanimous direction for staff to proceed with drafting the RFP.
D.
Consideration and Adoption of Resolution No. 2026-29: A resolution of the Flagstaff City Council, approving an amendment to the Intergovernmental Agreement between Coconino County Community College District and the City of Flagstaff for the joint ownership and use of the Firearms Training Facility.
Senior Assistant City Attorney Matt Mansfield presented the amendment to the intergovernmental agreement with Coconino County Community College District for the joint use of the Firearms Training Facility, formerly known as the Timberline Range on Highway 89. He explained that Council approved the original IGA in February 2026 for the acquisition of the facility and that Section 10 of that agreement required the parties to subsequently develop a shared use agreement to govern daily operations and maintenance. The shared use agreement before Council was the product of months of collaboration among City divisions including Police, Facilities, and Management Services, along with community college staff.
Mr. Mansfield noted that the agreement was also being presented to the College Board later in the week, and that the shared use agreement is a prerequisite for training operations to begin at the facility. Approval would also open the door for both entities to begin soliciting other law enforcement agencies as licensees, generating revenue toward the facility’s long-term sustainability.
Mr. Mansfield noted that the agreement was also being presented to the College Board later in the week, and that the shared use agreement is a prerequisite for training operations to begin at the facility. Approval would also open the door for both entities to begin soliciting other law enforcement agencies as licensees, generating revenue toward the facility’s long-term sustainability.
Moved by Councilmember Khara House, seconded by Councilmember Anthony Garcia to read Resolution No. 2026-29 by title only.
Vote: 7 - 0 - Unanimously
A RESOLUTION OF THE FLAGSTAFF CITY COUNCIL, APPROVING AN AMENDMENT TO THE INTERGOVERNMENTAL AGREEMENT BETWEEN COCONINO COUNTY COMMUNITY COLLEGE DISTRICT AND THE CITY OF FLAGSTAFF FOR THE JOINT OWNERSHIP AND USE OF THE FIREARMS TRAINING FACILITY
Moved by Councilmember Khara House, seconded by Councilmember Anthony Garcia to adopt Resolution No. 2026-29 by title only.
Vote: 7 - 0 - Unanimously
10.
PUBLIC HEARING ITEMS
A.
Consideration and Adoption of Ordinance No. 2026-12: An ordinance of the City Council of the City of Flagstaff, amending the Flagstaff Zoning Map to Direct to Ordinance Zoning Map Amendment to rezone approximately 18.24 acres located at 6500 E Route 66, APN 113-07-003S with the Heavy Industrial (HI) zone with the Resource Protection Overlay (RPO).
Mayor Daggett opened the public hearing.
Planner Bethan Heng provided a PowerPoint presentation that covered the following:
WINSLOW READY MIX DTO ZMA
GENERAL HEAVY INDUSTRIAL – DEFINITION (SECTION 10-80.20)
PROPERTY CONTEXT MAP
APRIL 2024 DTO ZMA – WILDCAT INDUSTRIAL SITE PLAN
WINSLOW READY MIX – MODIFICATION TO DTO ZMA
IMPACT ANALYSES
ZONING MAP AMENDMENT FINDINGS
FINDING #1
FINDING #2
FINDING #3
ADEQUACY OF SITE
CITIZEN PARTICIPATION PLAN
PLANNING AND ZONING COMMISSION RECOMMENDATION OF APPROVAL
Councilmember Matthews asked whether increased heavy truck traffic through residential areas was anticipated, and Ms. Heng clarified that access to the site runs through an existing easement on the adjacent Wastewater Treatment Plant property, not through residential neighborhoods.
Councilmember Spence asked whether the recently adopted 2045 Regional Plan would apply to the application and was informed that because the application was found complete prior to ratification of the new plan on May 19th, it is subject to the 2030 Regional Plan.
There being no further comment, Mayor Daggett closed the public hearing.
Planner Bethan Heng provided a PowerPoint presentation that covered the following:
WINSLOW READY MIX DTO ZMA
GENERAL HEAVY INDUSTRIAL – DEFINITION (SECTION 10-80.20)
PROPERTY CONTEXT MAP
APRIL 2024 DTO ZMA – WILDCAT INDUSTRIAL SITE PLAN
WINSLOW READY MIX – MODIFICATION TO DTO ZMA
IMPACT ANALYSES
ZONING MAP AMENDMENT FINDINGS
FINDING #1
FINDING #2
FINDING #3
ADEQUACY OF SITE
CITIZEN PARTICIPATION PLAN
PLANNING AND ZONING COMMISSION RECOMMENDATION OF APPROVAL
Councilmember Matthews asked whether increased heavy truck traffic through residential areas was anticipated, and Ms. Heng clarified that access to the site runs through an existing easement on the adjacent Wastewater Treatment Plant property, not through residential neighborhoods.
Councilmember Spence asked whether the recently adopted 2045 Regional Plan would apply to the application and was informed that because the application was found complete prior to ratification of the new plan on May 19th, it is subject to the 2030 Regional Plan.
There being no further comment, Mayor Daggett closed the public hearing.
Moved by Councilmember Anthony Garcia, seconded by Councilmember Khara House to read Ordinance No. 2026-12 by title only for the first time.
Vote: 7 - 0 - Unanimously
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FLAGSTAFF, AMENDING THE FLAGSTAFF ZONING MAP TO REZONE APPROXIMATELY 18.2 ACRES OF REAL PROPERTY GENERALLY LOCATED AT 6500 E ROUTE 66, APN 113-07-003S, TO MODIFY THE CONDITIONS OF THE PREVIOUS REZONE OF THIS REAL PROPERTY TO INCORPORATE A NEW SITE PLAN AND ALLOW A CONCRETE BATCH PLANT, PROVIDING FOR SEVERABILITY, AUTHORITY FOR CLERICAL CORRECTIONS, AND ESTABLISHING AN EFFECTIVE DATE
11.
REGULAR AGENDA
A.
Consideration and Adoption of Resolution No. 2026-25: A resolution of the Flagstaff City Council adopting the tentative budget for Fiscal Year 2026-27.
Budget Director Heidi Derryberry and City Manager Joanne Keene provided a PowerPoint presentation that covered the following:
CITY OF FLAGSTAFF FY 2026-27 BUDGET
TIMELINE
HIGHLIGHTS
LEGAL SCHEDULE A
TOTAL APPROPRIATIONS COMPARISON
TOTAL EMPLOYEE INVESTMENT
CHANGES SINCE APRIL RETREAT
BED, BOARD, AND BOOZE (BBB) TAX
ADDITIONAL INFORMATION
Councilmember House recognized the staff’s extensive work on the budget process.
CITY OF FLAGSTAFF FY 2026-27 BUDGET
TIMELINE
HIGHLIGHTS
LEGAL SCHEDULE A
TOTAL APPROPRIATIONS COMPARISON
TOTAL EMPLOYEE INVESTMENT
CHANGES SINCE APRIL RETREAT
BED, BOARD, AND BOOZE (BBB) TAX
ADDITIONAL INFORMATION
Councilmember House recognized the staff’s extensive work on the budget process.
Moved by Councilmember Khara House, seconded by Vice Mayor Miranda Sweet to read Resolution No. 2026-25 by title only.
Vote: 7 - 0 - Unanimously
A RESOLUTION OF THE FLAGSTAFF CITY COUNCIL ADOPTING THE TENTATIVE BUDGET FOR THE FISCAL YEAR 2026-27
Moved by Councilmember Khara House, seconded by Vice Mayor Miranda Sweet to adopt Resolution No. 2026-25.
Vote: 7 - 0 - Unanimously
B.
Consideration and Adoption of Resolution No. 2026-18: A resolution of the Flagstaff City Council adopting the City of Flagstaff Public Safety Personnel Retirement System Pension Funding Policy; delegating authority; and establishing an effective date.
Management Services Director Rick Tadder presented the annual Public Safety Personnel Retirement System Pension Funding Policy for Council adoption as required by state statute. He reported that as of the end of FY 2024-25, both pension plans remain above 100% funded, with the fire plan at 101.6% and the police plan at 100.2%. Mr. Tadder noted that the city has maintained above 100% funding since completing its pension financing in 2020 and that the actuarial model projects both plans to remain fully funded at the close of the current fiscal year.
Councilmember House asked about the significance of maintaining funding slightly above 100%, and Mr. Tadder explained that having assets in modest excess of projected liabilities provides a buffer against market fluctuations and actuarial changes. He also described the contingency reserve of approximately $15 million set aside when the pension financing was completed, which would be available to restore full funding if market conditions caused a shortfall, without affecting other general fund operations.
Councilmember House asked about the significance of maintaining funding slightly above 100%, and Mr. Tadder explained that having assets in modest excess of projected liabilities provides a buffer against market fluctuations and actuarial changes. He also described the contingency reserve of approximately $15 million set aside when the pension financing was completed, which would be available to restore full funding if market conditions caused a shortfall, without affecting other general fund operations.
Moved by Councilmember Khara House, seconded by Vice Mayor Miranda Sweet to read Resolution No. 2026-18 by title only.
Vote: 7 - 0 - Unanimously
A RESOLUTION OF THE FLAGSTAFF CITY COUNCIL ADOPTING THE CITY OF FLAGSTAFF PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM PENSION FUNDING POLICY; DELEGATING AUTHORITY; AND ESTABLISHING AN EFFECTIVE DATE
Moved by Councilmember Khara House, seconded by Vice Mayor Miranda Sweet to adopt Resolution No. 2026-18.
Vote: 7 - 0 - Unanimously
C.
Consideration and Adoption of Resolution No. 2026-20: A resolution of the Flagstaff City Council, designating its Chief Fiscal Officer for officially submitting the fiscal year 2026-2027 expenditure limitation report to the Arizona Auditor General, and establishing an effective date.
Mr. Tadder presented the annual administrative resolution designating the city’s Chief Fiscal Officer for purposes of submitting the expenditure limitation report to the Arizona Auditor General. As City Treasurer, Mr. Tadder noted that his role encompasses the duties of Chief Fiscal Officer and that he accepted the designation, citing the support of his team.
Moved by Councilmember Lori Matthews, seconded by Councilmember Khara House to read Resolution No. 2026-20 by title only.
Vote: 7 - 0 - Unanimously
A RESOLUTION OF THE FLAGSTAFF CITY COUNCIL, DESIGNATING THE CHIEF FISCAL OFFICER FOR OFFICIALLY SUBMITTING THE FISCAL YEAR 2026-2027 EXPENDITURE LIMITATION REPORT TO THE ARIZONA AUDITOR GENERAL, AND ESTABLISHING AN EFFECTIVE DATE
Moved by Councilmember Lori Matthews, seconded by Councilmember Khara House to adopt Resolution No. 2026-20.
Vote: 7 - 0 - Unanimously
D.
Consideration and Adoption of Resolution No. 2026-26: A resolution of the Flagstaff City Council, approving an Intergovernmental Agreement (IGA) between the City of Flagstaff and Northern Arizona Intergovernmental Public Transit Authority (NAIPTA or Mountain Line) for Transit Services.
Mr. Tadder presented the renewal of the transit services Intergovernmental Agreement with Mountain Line. The current IGA expires June 30, 2026, has no remaining extensions, and must be replaced with a new agreement to continue delivering transit services funded by the city’s transit tax, which voters approved for extension through June 30, 2040, in November 2024. He explained that the new IGA is materially consistent with the prior agreement, with several targeted revisions: a new section allowing the city and Mountain Line to negotiate transit services for special events such as the Fourth of July Drone Show; an amendment requiring notification of any fraudulent activity related to transit tax funds; a clarification of the Traffic Engineer’s authority to adjust transit stop locations as needed; and amendments to payment timing language, including the ability for the Management Services Director to provide short-term funding advances to Mountain Line during federal government shutdowns that delay reimbursements.
Moved by Vice Mayor Miranda Sweet, seconded by Councilmember Lori Matthews to read Resolution No. 2026-26 by title only.
Vote: 7 - 0 - Unanimously
A RESOLUTION OF THE FLAGSTAFF CITY COUNCIL, APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF FLAGSTAFF AND THE NORTHERN ARIZONA INTERGOVERNMENTAL PUBLIC TRANSIT AUTHORITY FOR TRANSIT SERVICES
Moved by Vice Mayor Miranda Sweet, seconded by Councilmember Lori Matthews to adopt Resolution No. 2026-26.
Vote: 7 - 0 - Unanimously
E.
Consideration and Adoption of Resolution No. 2026-28: A resolution of the Flagstaff City Council, approving the Second Amendment to the Canyon Del Rio Development Agreement.
Deputy City Attorney Kevin Fincel provided a PowerPoint presentation that covered the following:
2ND AMENDMENT TO CANYON DEL RIO DEVELOPMENT AGREEMENT
J.W. POWELL EXTENSION
PROJECT SECTIONS
CDR DA BACKGROUND
OVERVIEW OF 2ND AMENDMENT
CITY PAYMENT FOR ACQUISITION OF ROW FOR JWP EXTENSION
CDR TO CONSTRUCT ROUNDABOUT AT 4TH AND WHETSTONE
WHETSTONE ROUNDABOUT
CITY RESPONSIBLE FOR OBTAINING ADDITIONAL ROW NEEDED FOR ROUNDABOUT
REVISION TO RETAINING WALL MATERIALS
CLARIFICATION OF PAYMENT FOR BRIGHTON PROPERTY
Winnie Ennega addressed Council about the notification she had received due to her proximity to the project area and had spoken with staff prior to the meeting. After hearing the presentation, she withdrew her comments, stating the amendment did not affect her property.
Mr. Fincel acknowledged that notification letters should better communicate to adjacent property owners the specific scope of what is being considered when they receive project notices.
2ND AMENDMENT TO CANYON DEL RIO DEVELOPMENT AGREEMENT
J.W. POWELL EXTENSION
PROJECT SECTIONS
CDR DA BACKGROUND
OVERVIEW OF 2ND AMENDMENT
CITY PAYMENT FOR ACQUISITION OF ROW FOR JWP EXTENSION
CDR TO CONSTRUCT ROUNDABOUT AT 4TH AND WHETSTONE
WHETSTONE ROUNDABOUT
CITY RESPONSIBLE FOR OBTAINING ADDITIONAL ROW NEEDED FOR ROUNDABOUT
REVISION TO RETAINING WALL MATERIALS
CLARIFICATION OF PAYMENT FOR BRIGHTON PROPERTY
Winnie Ennega addressed Council about the notification she had received due to her proximity to the project area and had spoken with staff prior to the meeting. After hearing the presentation, she withdrew her comments, stating the amendment did not affect her property.
Mr. Fincel acknowledged that notification letters should better communicate to adjacent property owners the specific scope of what is being considered when they receive project notices.
Moved by Councilmember Lori Matthews, seconded by Vice Mayor Miranda Sweet to read Resolution No. 2026-28 by title only.
Vote: 7 - 0 - Unanimously
A RESOLUTION OF THE FLAGSTAFF CITY COUNCIL, AUTHORIZING THE SECOND AMENDMENT TO DEVELOPMENT AGREEMENT BETWEEN CDR DEVCORP, LTD, CDR LAND INVESTORS II, LLC, AND THE CITY OF FLAGSTAFF RELATED TO DEVELOPMENT OF THE CANYON DEL RIO SUBDIVISION; AND ESTABLISHING AN EFFECTIVE DATE
Moved by Councilmember Lori Matthews, seconded by Councilmember Khara House to adopt Resolution No. 2026-28.
Vote: 7 - 0 - Unanimously
F.
Consideration and Adoption of Resolution No. 2026-31: A resolution of the Flagstaff City Council, declaring official and adopting the results of the Special Election held on May 19, 2026.
Communication and Civic Engagement Director Stacy Saltzburg presented the canvass of results from the May 19, 2026 special election asking voters to ratify the Flagstaff Regional Land Use Plan 2045. The mail ballot election achieved 27.5% voter turnout with 10,439 ballots cast. Fifty-seven percent of votes were in support of ratification, with 43% opposed. With adoption of the resolution, the Flagstaff Regional Land Use Plan 2045 takes effect.
Ms. Saltzburg acknowledged the extensive work of Comprehensive and Neighborhood Planning Manager Sara Dechter and her team in developing the plan and conducting community outreach throughout the process.
Mayor Daggett also noted that both voter turnout and the number of affirmative votes exceeded those recorded for the previous regional plan ratification.
Ms. Saltzburg acknowledged the extensive work of Comprehensive and Neighborhood Planning Manager Sara Dechter and her team in developing the plan and conducting community outreach throughout the process.
Mayor Daggett also noted that both voter turnout and the number of affirmative votes exceeded those recorded for the previous regional plan ratification.
Moved by Councilmember Anthony Garcia, seconded by Councilmember Khara House to read Resolution No. 2026-31 by title only.
Vote: 7 - 0 - Unanimously
A RESOLUTION OF THE FLAGSTAFF CITY COUNCIL, DECLARING OFFICIAL AND ADOPTING THE RESULTS OF THE SPECIAL ELECTION HELD ON MAY 19, 2026
Moved by Councilmember Austin Aslan, seconded by Councilmember Anthony Garcia to adopt Resolution No. 2026-31.
Vote: 7 - 0 - Unanimously
12.
DISCUSSION ITEMS
A.
4th of July Drone Show Updates
Events and Marketing Manager Hayley Reynolds and Marketing and Media Relations Manager Lori Pappas provided a PowerPoint presentation that covered the following:
4TH OF JULY DRONE SHOW
PLANNING FOR A LARGE EVENT
SPECIAL EVENT PLANNING
SPECIAL EVENT LOGISTICS
PARK AND RIDE LOCATIONS
MARKETING AND ADVERTISING
Council asked about urban trail access to the event, and Ms. Reynolds confirmed that trail route information would be included in event communications.
Councilmember Matthews commended the improved transportation planning compared to the prior year and expressed enthusiasm for the event.
4TH OF JULY DRONE SHOW
PLANNING FOR A LARGE EVENT
SPECIAL EVENT PLANNING
SPECIAL EVENT LOGISTICS
PARK AND RIDE LOCATIONS
MARKETING AND ADVERTISING
Council asked about urban trail access to the event, and Ms. Reynolds confirmed that trail route information would be included in event communications.
Councilmember Matthews commended the improved transportation planning compared to the prior year and expressed enthusiasm for the event.
13.
OPEN CALL TO THE PUBLIC
None
14.
ANNOUNCEMENTS AND UPDATES TO/FROM COUNCIL AND CITY MANAGER
Councilmember Garcia invited the community to the Market of Dreams 4th Street Corridor business and improvement discussion meeting, where residents and business owners can share ideas about future improvements to the corridor. He also announced the Flagstaff Police Department promotional ceremony that week, followed by the First Friday Art Walk and an Open Doors Art in Action event at the Episcopal Church.
Vice Mayor Sweet noted the busy upcoming weekend, including the 4th Street meeting, First Friday Art Walk, the Route 66 Centennial celebration on Saturday along Aspen Avenue, and the Hullabaloo Festival in Wheeler Park on Saturday and Sunday.
Councilmember House noted that the Flagstaff Police Department promotional and departmental awards ceremony on Friday.
Councilmember Spence reported attending the Hunger Action Partnership quarterly meeting the previous Friday and expressed confidence in the partnership’s advocacy and preparedness as it monitors the impact of potential federal reductions to SNAP and WIC programs on community food security.
Vice Mayor Sweet noted the busy upcoming weekend, including the 4th Street meeting, First Friday Art Walk, the Route 66 Centennial celebration on Saturday along Aspen Avenue, and the Hullabaloo Festival in Wheeler Park on Saturday and Sunday.
Councilmember House noted that the Flagstaff Police Department promotional and departmental awards ceremony on Friday.
Councilmember Spence reported attending the Hunger Action Partnership quarterly meeting the previous Friday and expressed confidence in the partnership’s advocacy and preparedness as it monitors the impact of potential federal reductions to SNAP and WIC programs on community food security.
15.
ADJOURNMENT
The Regular Meeting of the Flagstaff City Council held June 2, 2026, adjourned at 5:42 p.m.
_____________________________________ MAYOR |
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| ATTEST: |
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_____________________________________ CITY CLERK |
CERTIFICATION
I, STACY SALTZBURG, do hereby certify that I am the City Clerk of the City of Flagstaff, County of Coconino, State of Arizona, and that the above Minutes are a true and correct summary of the Meeting of the Council of the City of Flagstaff held on JUNE 2, 2026. I further certify that the Meeting was duly called and held and that a quorum was present.
| DATED this 7th day of July, 2026 | |
________________________________________ CITY CLERK |