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Flagstaff trims some sales- and lodging-tax forecasts, keeps conservative recession plan

3212663 · May 6, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

City financial staff told the City Council that general-fund revenue growth is modestly positive but uneven across categories; the budget team shifted its recession assumption from a 3% temporary decline to a flatter scenario to preserve capacity for employee compensation.

Rick Potter, management services director for Flagstaff City, told the City Council at its April 24 budget retreat that revenue growth is modest but uneven and that staff revised some projections after seeing January–March returns.

Potter said the city is projecting about 2.5% growth in general-fund sales tax this year but has pared back estimates in retail/marketplace and in hotel/motel collections after weaker recent months. He also said state-shared revenues and vehicle-registration (auto-license) receipts were stronger than earlier expected.

"Uncertainty is a a very key word we're having," Potter said, describing federal policy changes,…

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