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Flagstaff council adopts FY2026–27 budget and approves primary property tax levy shift
Summary
The Flagstaff City Council adopted the fiscal year 2026–27 budget and approved a 0.04 shift from the secondary to the primary property tax rate—raising the proposed primary levy by about $537,000 to support police and fire operations; the council set the property tax ordinance for a subsequent reading and finalized the budget by resolution.
The Flagstaff City Council on June 16 adopted the city’s fiscal year 2026–27 budget and approved the related property tax levies and ordinance readings after a public hearing and staff presentation.
City Budget Director Heidi Derryberry summarized the proposed $648 million legal budget and said much of the year‑over‑year increase is capital spending for transportation, water service and downtown projects. She told council staff’s April recommendation included shifting 0.04 from the city’s secondary property tax to the primary rate; that shift and new construction together increase the primary levy by roughly $537,000, money designated for police and fire operations.
“The proposed primary property tax levy is approximately $7,800,000,” Derryberry said, and she presented examples showing the average homeowner impact at current assessed values would be about $15 per year on a $350,000 assessed value when the 5% allowed growth is included.
Council conducted the required roll‑call Truth in Taxation vote on the primary levy and later read the property tax ordinance by title for its first reading; the council also adopted resolution 2026‑32 to finalize the fiscal year 2026–27 budget. Council members asked about the share of general fund revenues coming from property taxes and the timing of implementation; staff said final adoption steps continue through a special meeting and subsequent ordinance reading on July 7.
Why this matters: The council’s action locks in the city’s spending plan and a modest tax‑rate shift that officials say is intended to shore up public safety funding while leaving the overall property tax rate below statutory maximums. The budget also programs major capital projects, including the Downtown Mile and transportation improvements, that will shape municipal work plans for the year ahead.
What’s next: Staff will return in July for ordinance finalization and the council will monitor implementation details and any follow‑up budget policy requests.
