Clarkdale staff presents fiscal 2025–26 budget proposal; council to adopt tentative budget May 27

Town Manager Susan Montgomery and finance staff presented the town’s proposed fiscal year 2025–26 budget to the Clarkdale Town Council on May 13, outlining revenue forecasts, major capital projects and next‑step dates for adoption.

At a glance, presenters said the proposed townwide budget is about $47 million and represents roughly a $4 million increase from the current year; staff emphasized that most of that increase is driven by grants and donations rather than local taxes or fees. Montgomery recommended keeping the property tax rate flat at 1.344 per $100 of assessed value for the coming fiscal year.

Why it matters: Staff told the council the town faces reduced state shared revenue (a roughly $67,000 impact attributed to the state’s flat‑tax changes) and a projected $250,000 decrease in local sales tax receipts caused in part by slower construction activity and other legislative changes that removed the ability to collect a residential rental/lease tax (about $150,000 in lost revenue). Those revenue pressures shaped staff proposals for spending, contingency and capital programming.

Key points from the proposal: - Total budget and drivers: Roughly $47 million proposed; about $5.1 million of the $27.3 million in townwide capital projects would come from existing fund balances (savings) and approximately $22.2 million is anticipated to come from grants. Staff noted that if anticipated grants do not materialize the projects would not proceed. - Property tax: Staff proposed keeping the combined property tax rate at the current level (1.344). The council reviewed scenarios showing the legal maximum and alternatives but did not propose an increase. - General fund composition: The council heard that public safety (the police department) represents a large share of general‑fund spending (about one quarter), with other departments funded at lower relative shares. - Personnel: The proposal includes a 4% cost‑of‑living adjustment (COLA) for staff; Montgomery said comparable jurisdictions were budgeting COLAs in the 3–12% range and staff sought to remain competitive. - Capital projects: The proposed CIP lists pavement management, Clarkdale Parkway improvements (ADOT lead), Cement Plant Road design and grant applications, sewer rehabilitation (Third North), water conservation projects (including a cemetery recharge project and Haskell Springs tank rehab), and continued grant pursuits totaling tens of millions. - Fleet and contingency: Staff proposed a new fleet department to better manage vehicle maintenance and set contingency/transfers at $2,000,000 to cover grant timing and other uncertainties.

Schedule and public input: Montgomery noted no council action was required at the May 13 presentation. The council is scheduled to adopt a tentative budget on May 27, post that tentative budget for public review, hold the required public hearings and adopt a final budget at the public hearing on June 24; the tax levy ordinance is scheduled for formal adoption in the first July meeting (July 8).

Council members commended staff for the presentation and thorough linkage between the general plan, strategic plan and the proposed budget. Staff asked residents to review the materials once posted online and to submit questions ahead of the May 27 tentative adoption.