The City of Flagstaff announced on April 8 that it may increase its primary property tax levy for the fiscal year 2026-27 above last year’s amount. The proposal also includes a recommended decrease in the secondary property tax rate and levy to help offset the proposed increase in the primary levy.
This notice is required by state law to allow City Council to consider raising the tax levy. Property taxes are an important source of revenue, supporting about ten percent of Flagstaff’s General Fund, which funds city services such as administration, police, fire, planning and development services, recreation, parks, open space management, facilities maintenance, community investment and management services.
The City Council is scheduled to discuss and possibly recommend changes to both the primary and secondary property tax levies during its April Budget Retreat on April 23 at the Core Service Administrative Building in Flagstaff. If council members decide an increase is appropriate, they will follow Truth in Taxation hearing requirements under Arizona law. A public hearing would then be held on June 16 at City Hall before any ordinance readings take place.
According to city officials, the maximum allowed primary property tax levy for FY 2026-27 is $8,383,436 at a rate of $0.6670 per $100 net assessed valuation—an increase from last year’s $7,264,408 at a rate of $0.6045 per $100 net assessed valuation. The proposed budget suggests a primary property tax rate of $0.6207 with a total levy increase of $502,754 plus new construction revenue estimated at $34,335.
For secondary property taxes—which are used solely for paying general obligation bond debt—the proposal recommends reducing the rate from $0.8000 to $0.7600 per $100 net assessed valuation for FY 2026-27. This would decrease the baseline secondary tax levy by approximately $502,755 compared with projections based on current rates.
City staff said annual approval by ordinance is required for all municipal property taxes; first reading could occur June 16 with final adoption potentially set for July 7 pending council direction after public input opportunities.
Flagstaff delivers community services through its departments while encouraging public involvement via boards and commissions according to its official website. The city operates under an elected mayor and council who set policy according to city information. In addition to managing finances and taxation matters like this one today announced by Heidi Derryberry (Budget Director), Flagstaff has taken steps over decades regarding outdoor lighting—enacting ordinances as early as 1958 and adopting zoning codes in 1989 limiting lighting per acre according to official records—and was designated as the world’s first International Dark Sky City in 2001 as reported by city sources.
