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Flagstaff council weighs property-tax options as revenues face state headwinds
Summary
City staff told the Feb. 5 budget retreat that Flagstaff's general fund is about $83 million but faces downward pressure from a San Tan Valley annexation and potential state tax-conformity changes; staff offered levy and levy-shift scenarios and council asked for detailed options in April.
Flagstaff City staff said on Feb. 5 that the city's general fund operating budget is about $83,000,000 and that several state-level changes are likely to reduce ongoing revenue, prompting discussion of modest property-tax increases and a novel shift of levy authority from restricted debt service to general operations.
City finance presenters described a mixed revenue picture: retail, restaurant and marketplace sales have recently shown month-to-month gains but many categories remain below adopted budget. "Our general fund is approximately $83,000,000," the presenter said, noting sales tax (the city's 1% general sales tax) accounts for roughly 38% of that mix while state-shared revenues make up about 39% and other revenues (property tax, permits and fees) about 23%.
The finance team…
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