Council retreat review ties parts of proposed budget to carbon-neutrality goals; EPA resilience grant under appeal

City staff told the Flagstaff City Council during its budget retreat that about 5% of the recommended fiscal 2026 budget aligns with the city’s Carbon Neutrality Plan and that roughly $1.4 million of new requests “advance the carbon neutrality plan,” with items spread across multiple departments.

The sustainability staff member who briefed the council said the city has added line items intended to prepare the organization and community for electrification, wildfire resilience and other climate priorities. “So this year, we are essentially looking at about 5% of the recommended budget that is, in request aligning and advancing the climate actions that are identified in the Carbon Neutrality Plan,” the staff member told council members.

Among the items called out were: a $7,500 training request for fleet staff to support electric-vehicle maintenance; planned level-3 (fast) charging infrastructure for city fleet; and a recommended $100,000 pilot shared between fire and sustainability to launch a “home hardening” wildfire preparedness program. The briefing said the fast chargers will be restricted to city fleet use and are intended to support high-rotation vehicles, including emergency response.

Staff also told the council the sustainability team received a stop-work order last month on a U.S. Environmental Protection Agency (EPA) resilience-hub grant. “This was a $1,000,000 grant that helped establish three resilience hubs throughout our community,” the staff member said, naming Southside Association and Sunnyside among the partners. Staff said they filed a formal appeal and expect a review of that appeal in approximately six months.

On cost estimates for the Carbon Neutrality Plan, staff emphasized the city’s earlier community-wide estimate of about $600 million represents a community-wide price tag, not only the city’s share. “The $600,000,000 estimate is for the community-wide carbon neutrality plan. This is not just the city's lift,” the staff member said, adding that partners such as Northern Arizona University and private actors have large roles to play.

Staff fielded council questions about measurement and return on investment. They said a separate ROI analysis exists for the overall Carbon Neutrality Plan and staff can provide a deeper walkthrough at a future meeting. Council members also pressed how the city will phase electrification as vehicles and equipment reach replacement age rather than replacing large portions of the fleet in a single year.

City staff described the budget requests as a mixture of small-ticket operational investments and program-level pilots intended to position Flagstaff to apply for and deploy outside funding if it becomes available.