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| TITLE: |
| Consideration and Adoption of Resolution No. 2023-30: A resolution of the Council of the City of Flagstaff, Arizona adopting the tentative budget for Fiscal Year 2023-2024. |
| STAFF RECOMMENDED ACTION: |
1) Read Resolution No. 2023-30 by title only
2) City Clerk reads Resolution No. 2023-30 by title only (if approved above)
3) Adopt Resolution No. 2023-30
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| Executive Summary: |
Arizona Revised Statutes (Sections 42-17101, 42-17102, and 42-17105) require that each municipality adopt and publish, in a specified format, a tentative budget. The adoption of the tentative budget has the effect of establishing an amount that cannot be exceeded in the final adoption of the budget.
Furthermore, the adoption of the tentative budget sets into motion a legally mandated time sequence of actions to which the Council must adhere to adopt a final budget and to levy property taxes. |
| Financial Impact: |
| The tentative budget must be adopted to set the appropriate sequence of events in place for final budget adoption. |
| Policy Impact: |
| The Fiscal Year 2023-2024 budget is the guiding document for the financial plan of the City. |
| Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan: |
| The adoption of the Annual Budget and Financial Plan provides Council direction and financial resources to support the Key Community Priorities, Carbon Neutrality Plan and Regional Plan. |
| Has There Been Previous Council Decision on This: |
- January Council Retreat on January 20,2023
- February Budget Retreat on February 2, 2023 and February 3, 2023
- April Capital Improvement Budget Retreat on April 7, 2023
- Council Budget Work Session on April 27, 2023 and April 28, 2023
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| Options and Alternatives: |
| The City may delay the tentative budget adoption until no later than the 3rd Monday in July. While the City would be able to continue operations through a Continuing Disclosure resolution, the City would not be able to commit to any expenditures directly related to the Fiscal Year 2023-2024 budget. |
| Background/History: |
The budget is generally presented for tentative adoption in late May or early June to assure funding is appropriated within Key Community Priorities and Objectives at the beginning of the fiscal year.
During the summer of 2020, staff engaged the community to confirm, revise or amend the objectives that help deliver our Key Community Priorities. In November 2020, Council approved the changes to the objectives. These priorities and objectives were used to develop the FY 2023-2024 proposed budget.
At the January 2023 budget retreat, staff presented several topics including budget introduction, fiscal policies, revenue updates, and priority based budgeting. During the February 2023 budget retreat staff presented and received further direction from Council for the FY 2023-2024 proposed budget. Topics included priority based budgeting, revenue updates, fixed cost updates, and compensation. At Council’s request, in April, we held a Capital Improvement Plan Budget Retreat to review and discuss all capital improvement plans for all funds of the City. Staff presented the 5-year plans and provided information such as funding resources, how they are developed, and some highlights of current projects. During the April 2023 budget work session, staff presented the City Manager's proposed budget and received Council direction on additional items to be included in the budget. After the April budget work session, divisions provided revised year-end estimates and carryover of funding primarily for capital projects. |
| Key Considerations: |
The adoption of the tentative budget sets into motion a legally mandated time sequence of actions to which the Council must adhere to adopt a final budget and to levy property taxes. If this time sequence is not met as required by statute, the tentative adoption, final adoption of the budget and property tax levy actions, and related publications must be started over.
The process is prescribed through the Arizona Revised Statutes. The tentative budget must be adopted no later than the 3rd Monday in July. The schedules for Council budget and property tax levy actions are as follows:
- June 6, 2023 - Tentative adoption of the budget by Council
- June 20, 2023 - Proposed budget and property tax levy public hearing
- June 20, 2023 - Final budget adoption (In a Special Meeting)
- June 20, 2023 - First reading of property tax ordinance
- July 3, 2023 - Final reading and adoption of the property tax ordinance
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| Expanded Financial Considerations: |
Funds must be appropriated to allow for expenditures to occur. The tentative budget must be adopted to set the appropriate sequence of events in place for final budget adoption.
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| Community Benefits and Considerations: |
| The community benefits from an annually adopted budget which then allows the city to provide the necessary services and programs for our citizens. |
| Community Involvement: |
Inform and Involve: The community has the opportunity to be involved at the public hearing held in conjunction with final adoption. Citizens are welcome to attend Council Budget retreats. The City Manager’s recommended budget was discussed during the Council Budget Retreat on April 27 and 28, 2023. Public participation was available.
Upon approval of the Tentative Budget Resolution, Budget legal schedules will be published in the June 8, 2023, and June 15, 2023, Arizona Daily Sun to allow for community review. In addition, the legal and other budget schedules will be made available at City Hall, at both Flagstaff Public Libraries, and on the official city website. |
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