FLAGSTAFF, Ariz. — The Flagstaff City Council has adopted a tentative budget for Fiscal Year 2027 (FY27), outlining major investments in public safety, infrastructure, housing, and environmental initiatives while advancing more than $324 million in capital improvement projects across the city.
The tentative budget was approved during the Council’s June 2 meeting and serves as the City’s primary financial planning document for the upcoming fiscal year.
According to city officials, the FY27 budget prioritizes core municipal services including police and fire protection, road and right-of-way maintenance, and solid waste operations. The spending plan also includes investments in city employees, the City’s 10-Year Housing Plan, and ongoing efforts to achieve goals outlined in the Carbon Neutrality Plan.
More than $324 million has been allocated for capital improvement projects, funded through a combination of grants, taxes, and bond revenues. Planned projects for FY27 include flood mitigation work at Fanning Wash, reconstruction of Ponderosa Park, construction of a new regional wildland fire station, road improvement projects throughout Flagstaff, and continued development of the Downtown Mile project.
Additional funding is planned for water infrastructure upgrades, acquisition of land for the Flagstaff Urban Trail System (FUTS) and open space preservation, as well as affordable housing investments and redevelopment of public housing.
The City Manager’s recommended budget includes an increase to the primary property tax rate. City officials say the increase would be offset by a reduction in the secondary property tax rate, with additional revenue directed toward ongoing police and fire department operations.
The budget also incorporates revenue from the Bed, Board and Beverage (BBB) Tax, which voters renewed in November 2024. Those funds support arts and sciences programs, economic development, beautification projects, tourism initiatives, and parks and recreation services.
Development of the annual budget included multiple public discussions, council work sessions, and budget retreats held throughout 2025 and 2026, during which councilmembers and residents reviewed revenue projections, operating costs, available resources, and emerging community needs.
The final FY27 budget is scheduled for adoption during the Flagstaff City Council meeting on June 16.
Residents can review the complete FY27 Tentative Budget through the City of Flagstaff’s website.
