Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget topic
No spam. Unsubscribe anytime.
Prescott City Council adopts $311.5 million FY2027 budget and approves modest property tax levy increase
Summary
After a public hearing and brief public comment, Prescott City Council adopted a $311,496,498 budget for fiscal year 2027 and approved a small property-tax levy increase — a roughly $188,000 rise in levy revenue — to support general services including public safety, recreation and the library.
The Prescott City Council on June 23 adopted the city’s fiscal year 2027 budget, approving total expenditures of $311,496,498 and a modest property-tax levy increase intended to shore up general fund services such as public safety, recreation and library operations.
Finance Director Lars Johnson delivered the budget presentation during a combined public hearing, telling the council that “the total budget for FY27 … is 311,496,498,” and that the proposal represents a roughly 2.6% increase over the prior year. Johnson and staff told the council the levy increase would generate about $188,000 in additional revenue and stressed the city’s need to diversify revenue after a recent state change eliminated the city’s ability to tax long‑term residential rentals, a loss the city estimates at about $1.1 million annually.
Why it matters: Council members described the levy as a small, precautionary step to stabilize funding for services that rely on general taxation rather than user fees. Council members and staff emphasized that the increase is modest on a per‑household basis — Johnson showed illustrative calculations that, for many homeowners, the annual increase would amount to a few dollars or less depending on assessed value.
Public comment reflected the tension officials often face when asking for additional tax revenue. Ken Fidic, a resident, told council that while the dollar amount may be small for many, “it’s the matter of principle,” and asked the council what would happen if it declined the levy. City staff replied that not approving the levy would force the council to reduce spending or reallocate existing funds, and pointed to a reconciliation of prior ballot-authorized public safety funds posted to the city website.
Council action: After closing the public hearing, the council approved the property-tax levy by roll-call vote (six in favor, one opposed); Councilman Gambboji cast the lone no vote. The council then recessed into a special meeting to finalize the approved expenditure list and later adopted the budget resolution (Resolution No. 2026‑1985).
What’s next: The adopted budget takes effect on July 1, 2026. Staff also signaled follow-up work on fee schedules and a planned rate study for the city transfer station (solid‑waste enterprise) to address ongoing operating deficits. The council directed staff to return with implementation details and, where required, further public engagement prior to fee changes.
