Clarkdale presents FY2025–26 budget proposal totaling about $47.3 million

Town Manager Felicia Beltran and staff presented the proposed fiscal year 2025–26 budget to the Clarkdale Town Council on May 13, describing a spending plan of roughly $47.3 million and outlining assumptions, risks and major capital projects. No action was taken; council will consider a tentative budget on May 27 and adopt a final budget in late June.

Beltran told the council the proposed budget shows about a $4 million increase over the current year largely driven by grants and donations rather than taxes or fees. She said staff’s recommendation is to hold the town’s primary property tax rate flat at 1.344 to avoid increasing local tax burden amid declining state shared revenue and lower sales-tax receipts tied to reduced construction activity.

The presentation noted a drop in state-shared revenues tied to recent tax changes and an expected decline of roughly $300,000 in state shared income-tax distributions. Staff also cited a legislative change that eliminated the local ability to assess a residential rental tax, which reduced sales-tax revenue by roughly $150,000 in the current year.

Beltran and finance staff identified several budget priorities: funding police operations (about one-quarter of general-fund expenditures), continuing capital projects funded largely through anticipated grants, and creating a new fleet department to better manage vehicle maintenance. The town proposed a 1% cost-of-living adjustment for employees in the coming year and noted a planned increase in contingency to $2 million to guard against grant reimbursement delays or federal grant changes.

Key capital projects described in the presentation include pavement management work (Broadway phase and other streets), completion of Selma/J.D. Park improvements, water system investments (including a cellular meter program and arsenic-treatment and well projects), and a design-funded Bitter Creek Bridge reconstruction. Staff said $27.3 million of townwide capital spending is budgeted, of which about $22.2 million is anticipated grant funding and $5.1 million from existing fund balances.

Beltran highlighted that property tax receipts represent a small share of the town’s overall revenue (about one of many revenue streams), and that sales tax declines, driven largely by reduced construction, have materially affected revenues year over year. She also reviewed the town’s strategic goals and explained how the budget aligns with the general plan, strategic plan and capital improvement program.

Council and public speakers praised the presentation’s clarity and asked follow-up questions. Beltran reminded the public there is no action tonight and that the tentative budget will be posted after the May 27 meeting for public review before final adoption in June.

Ending: Council did not take action; next budget steps are a tentative adoption May 27 and final adoption and truth-in-taxation hearing at the June meeting sequence.