The Flagstaff City Council adopted the tentative budget for the 2027 Fiscal Year during its June 2 meeting. The annual budget serves as the primary guiding document for Flagstaff’s financial planning and resource allocation.
The FY27 budget prioritizes core services such as public safety, road and right of way maintenance, and solid waste. It also includes strategic investments in infrastructure, city employees, the City’s 10-Year Housing Plan, and the Carbon Neutrality Plan. More than $324 million is allocated to capital improvement projects funded by a mix of grants, taxes, and bond funding. Scheduled projects include flood mitigation at Fanning Wash, reconstruction of Ponderosa Park, construction of a new regional wildland fire station, citywide road improvements, development of the Downtown Mile project, acquisition of land for the Flagstaff Urban Trail System and Open Space, water services infrastructure improvements, and investment in affordable housing and public housing redevelopment.
The City Manager’s recommended budget proposes an increase to the primary property tax rate that will be offset by a decrease to the secondary property tax rate. Additional revenue from this adjustment will support ongoing Fire and Police operations. The recommended budget also incorporates funds generated by the Bed, Board, and Beverage Tax—renewed by voter approval in November 2024—which supports arts and sciences programs as well as economic development initiatives.
Each year’s annual budget is developed through public discussions with City Council to identify priorities and goals. In both 2025 and 2026, multiple retreats and work sessions were held where councilmembers received updates on revenues and resources available to meet fixed costs or emerging needs.
Flagstaff operates with an elected mayor and council members who establish policy while community services are delivered via various departments; residents can participate through boards or commissions, according to the official website.
Final adoption of next year’s budget is scheduled for June 16.
