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Flagstaff council adopts $522.7 million FY2025–26 budget; property tax levy set for first-reading
Summary
The Flagstaff City Council adopted the city’s fiscal year 2025–26 budget in a special meeting June 17 and approved a first reading of the property tax ordinance; the adopted budget totals about $522.7 million and the primary property tax levy was set as a flat levy.
The Flagstaff City Council adopted the fiscal year 2025–26 budget on June 17, approving Resolution No. 2025-35 in a special meeting called during the council’s regular session. The resolution approves a $522,700,000 city budget for the coming fiscal year.
Budget Director Heidi Derryberry told the council the total is roughly $522.7 million, a $56.7 million (10%) decrease from the prior year driven primarily by the near completion of large capital projects in transportation and water. Derryberry said the general fund is about $117 million (23% of the total) and enterprise funds are about $169.3 million (32%). She also explained the proposed primary levy is a flat levy and that assessed values rose about 5.26% on existing property, excluding new construction.
Derryberry said the total proposed primary property tax levy would be approximately $7.3 million, with a primary tax rate of 0.6045 per $100 of assessed value under the flat-levy approach. She told the council that the levy is $916,914 below the maximum allowable levy under state statute and that the rate represents a decrease from the prior year. The secondary property tax levy was presented as a flat rate of 0.80 per $100, producing about $9.6 million in revenue, a 5.7% increase over the prior year and limited by statute to the estimated general obligation debt service.
Council members had no further public comment during the hearing. After closing the public hearing, the council convened a special meeting and adopted Resolution No. 2025-35 by voice vote. The council also conducted the first reading by title of the property tax ordinance (Ordinance No. 2025-13) as required by statutory timelines; the second reading and final adoption of the ordinance will occur at the July 1 meeting.
The council recessed the special meeting and reconvened the regular session following the votes. City staff had previously presented timelines showing the tentative budget adoption on June 3 and the final adoption on June 17, with the ordinance second reading scheduled for July 1.
The budget director said examples in the staff presentation showed modest decreases for sample residential and commercial taxpayers under the proposed flat levy, and reiterated that the county assessor determines assessed values used to calculate the levies.
