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Sedona staff present cautious FY26 budget amid uncertain economic outlook
Summary
City staff told the Sedona City Council that the proposed fiscal 2025–26 budget is smaller than the current year and depends heavily on tourism-driven sales and bed taxes; discussion focused on revenue sensitivity, staffing and capital timing.
City of Sedona staff presented an overview of the proposed fiscal 2025–26 budget and warned council members that revenue growth is expected to slow amid national economic uncertainty.
The city’s Director of Financial Services, Barbara Whitehorn, told the council the overall operating budget for FY26 is about $55 million and the capital budget about $46 million. She said the city’s tax base is “resilient” but highly dependent on visitor-related sales and bed taxes, which together account for roughly 61% of total city revenue and about 80% of general-fund receipts. Whitehorn said that budgeted growth in sales and…
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