Prescott staff propose balanced FY26 budget, rely on reserves and public‑safety sales tax for capital plan

City of Prescott staff presented the proposed fiscal year 2026 budget at a May 16 council workshop, describing a balanced operating proposal, a large five‑year capital plan and the expected first receipts from a new public‑safety sales tax. The presentation framed the proposal as an effort to align spending with the council’s strategic priorities while protecting reserve policies.

Deputy Finance Director Lars Johnson told the council, “The budget before you, the proposal is balanced,” and outlined major line items: operating revenues projected at about $268,000,000, total expenditures of roughly $303,000,000 and an expected draw of about $35,700,000 from accumulated fund balances to cover the difference. Johnson said operating revenues would rise largely because of the new public‑safety privilege tax and increases in charges for services tied to recent rate studies.

Why it matters: the spending plan funds base services and embeds the voter‑approved public‑safety tax into operations and capital planning while preserving…