Flagstaff City Council adopts tentative FY26 budget, trail plan, CDBG action plan and several routine measures

The Flagstaff City Council on June 3 adopted a set of routine and major measures, including the tentative fiscal year 2025–26 city budget, the Greater Observatory Mesa natural plan, the city’s Community Development Block Grant (CDBG) annual action plan for 2025 and an amended intergovernmental agreement for Mountain Line.

The council unanimously approved the tentative FY26 budget that sets legal maximum appropriations before the final public hearing and tax-levy votes scheduled in June and July. Heidi Derryberry, the city’s budget director, told council the $523 million tentative budget prioritizes compensation and benefits, basic services, infrastructure and continued implementation of Flagstaff’s climate neutrality and housing plans. The general fund is approximately $117 million, and enterprise funds total about $169 million.

Council also adopted Resolution No. 2025-33, the Greater Observatory Mesa Natural Plan, following a presentation by Robert Wallace, open space supervisor. The council approved the City of Flagstaff’s CDBG 2025 annual action plan and authorized staff to submit the plan to the U.S. Department of Housing and Urban Development; staff said the final HUD allocation exceeded expectations and allowed expanded public‑service funding and a recommendation to replace playground equipment in the Pine Knoll/Brandon Homes target area.

Mountain Line’s amended and restated master intergovernmental agreement (IGA) among the city, Coconino County, Northern Arizona University and Coconino Community College District was approved by resolution 2025-24. Jackie Leners, deputy general manager for Mountain Line, said the updated IGA modernizes contact details and clarifies Mountain Line’s rights as a property owner as it pursues a public‑private partnership for affordable workforce housing adjacent to its facility.

On land use, the council approved the preliminary plat for Atlas at Timber Sky, a proposed 60-lot single-family subdivision on roughly 6.36 acres in the High Density Residential zone. Ben Mejia, a city planner, reviewed zoning, density and resource-preservation findings for the project; several nearby homeowners raised concerns about construction impacts, grading, drainage and building heights during public comment before the council vote.

Council approved a clerical correction and notice of intention to increase certain water capacity fees after staff said two meter fees were published at incorrect values; the council set a public hearing for Aug. 26, 2025. Council also forwarded a new Series 5 (government) liquor-license application for the Express Flagstaff visitor center at Pulliam Airport to the state with a recommendation for approval.

Several items were handled on consent or by single motions; council also allocated remaining council initiative funds to community events and the Flagstaff Family Food Center. Most votes were unanimous; where counts or individual “ayes” were not read into the record, staff reports and the posted agenda packet list the official roll-call records.

Votes at a glance - Liquor license: Forwarded to state with recommendation for approval (motion passed). (Public hearing and staff report presented by Stacey Salzberg.) - Consent agenda (items 8a–f): Approved (single motion). - Atlas at Timber Sky preliminary plat: Approved (motion carried). - Resolution 2025-33: Greater Observatory Mesa Natural Plan — Adopted. - Resolution 2025-31: Tentative FY2025–26 Budget — Adopted. - Resolution 2025-34: Notice of intention to correct water capacity fees (clerical error) and set public hearing — Adopted. - Resolution 2025-30: City of Flagstaff CDBG 2025 Annual Action Plan — Adopted; authorized submission to HUD. - Resolution 2025-24: Amended and restated Mountain Line master IGA — Adopted. - Council initiative funds: Approved allocation to Juneteenth community events and Flagstaff Family Food Center.

What’s next Council will hold a public hearing and take final action on the budget and the property-tax ordinance at its June 17 meeting, and a second reading of the property-tax ordinance is scheduled for July 1. The water-fee public hearing is set for Aug. 26, 2025; the CDBG annual action plan will be submitted to HUD as authorized.