The Flagstaff City Council adopted the tentative budget for the 2027 Fiscal Year during its June 2 meeting. The annual budget serves as the main guiding document for Flagstaff’s financial planning and resource allocation.
The FY27 budget prioritizes core services, including 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 for capital improvement projects in FY27, funded by a combination 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, road improvements throughout the city, development of the Downtown Mile project, acquisition of land for the Flagstaff Urban Trail System and Open Space initiatives, improvements to water services infrastructure, as well as investment in affordable housing and public housing redevelopment.
The recommended budget proposes an increase to the primary property tax rate while decreasing the secondary property tax rate. The additional revenue from this adjustment will be directed toward ongoing Fire and Police operations. Funds generated by the Bed, Board, and Beverage Tax—which was renewed by voter approval in November 2024—will continue to support arts and sciences programs, economic development efforts, beautification projects, tourism promotion activities, as well as parks and recreation.
Each year’s city budget is developed through public discussions with council members to identify priorities. Throughout multiple retreats and work sessions held in 2025 and 2026—attended by councilmembers alongside community members—updates were provided on revenues, available resources, fixed costs, and emerging needs.
The final adoption of Flagstaff’s FY27 budget is scheduled for June 16 at a subsequent council meeting. For more information or questions about this process or document, contact Sarah Langley, Public Affairs Director, at sarah.langley@flagstaffaz.gov.
Flagstaff operates with an elected mayor and council members who establish policy while delivering community services through departments, divisions, boards, commissions, and elections according to the official website.
