The Prescott Valley Town Council on May 20 adopted the town's first standalone five-year Capital Improvement Program (CIP) and associated financial plan and authorized publication of the tentative fiscal-year 2025-26 budget, setting a public hearing for June 26.

Finance Director Selena Morris presented the CIP as a planning document totaling roughly $265 million over five years, with an estimated first-year program of about $62 million. Morris said the plan prioritizes streets, transportation and water projects in the early years and includes potential funding sources such as construction sales tax, enterprise bonds/loans and grants. She noted the town is modeling possible Water Infrastructure Financing Authority (WIFA) funding of about $15.5 million and a potential transportation bond scenario of $30 million to accelerate street projects; the modeled $30 million bond was shown with estimated debt service of about $1.718 million annually under assumptions discussed at the meeting.

The adopted CIP also increases planned pavement-preservation investment: staff said the town will commit an additional $1 million to the program so year-one preservation totals about $3.5 million, growing to $4 million and $4.5 million in later years. Morris emphasized the plan is updated annually and the council is being asked to adopt the plan as a planning document; only the first year is typically brought forward for appropriation in the annual budget process.

Councilmembers then considered the town's tentative budget for FY2025-26. The tentative budget presented totals $221,501,940 and serves as the spending ceiling; council authorized staff to publish notice for a public hearing on the final budget on June 26. Morris described key budget assumptions, reserve policies (including a 10% rainy-day fund policy and a 25% untouchable reserve designation), and accounting treatments used to show construction sales tax and other funds. She said the town practices fiscally conservative budgeting, models pay-as-you-go options for capital and prioritizes maintaining fund balance while funding strategic projects.

Council approved the CIP and financial plan and passed a resolution authorizing notice of the tentative budget's public hearing; both votes were unanimous.