CITY COUNCIL REGULAR MEETING AGENDA
All City Council Meetings are live streamed on the city's website (https://www.flagstaff.az.gov/1461/Streaming-City-Council-Meetings) ***PUBLIC COMMENT*** Verbal public comments may be given through a virtual public comment platform or in-person If you want to provide a verbal comment during the Council Meeting, use the link below to join the virtual public comment room. VIRTUAL PUBLIC COMMENT WAITING ROOM Written comments may be submitted to publiccomment@flagstaffaz.gov. All comments submitted via email will be considered written comments and will be documented into the record as such. |
1. | CALL TO ORDER
NOTICE OF OPTION TO RECESS INTO EXECUTIVE SESSION
Pursuant to A.R.S. §38-431.02, notice is hereby given to the members of the City Council and to the general public that, at this regular meeting, the City Council may vote to go into executive session, which will not be open to the public, for legal advice and discussion with the City’s attorneys for legal advice on any item listed on the following agenda, pursuant to A.R.S. §38-431.03(A)(3). |
||||||||
2. | ROLL CALL
|
||||||||
3. | PLEDGE OF ALLEGIANCE, MISSION STATEMENT, AND LAND ACKNOWLEDGEMENT
MISSION STATEMENT
The mission of the City of Flagstaff is to protect and enhance the quality of life for all.
LAND ACKNOWLEDGEMENT The Flagstaff City Council humbly acknowledges the ancestral homelands of this area’s Indigenous nations and original stewards. These lands, still inhabited by Native descendants, border mountains sacred to Indigenous peoples. We honor them, their legacies, their traditions, and their continued contributions. We celebrate their past, present, and future generations who will forever know this place as home.
|
||||||||
4. | PUBLIC PARTICIPATION Public Participation enables the public to address the Council about an item that is not on the agenda. Comments relating to items that are on the agenda will be taken at the time that the item is discussed. If you wish to address the Council at tonight's meeting, please complete a comment card and submit it to the recording clerk as soon as possible. Your name will be called when it is your turn to speak. You may address the Council up to three times throughout the meeting, including comments made during Public Participation. Please limit your remarks to three minutes per item to allow everyone an opportunity to speak. At the discretion of the Chair, ten or more persons present at the meeting and wishing to speak may appoint a representative who may have no more than fifteen minutes to speak. |
||||||||
5. | COUNCIL LIAISON REPORTS | ||||||||
6. | CONSENT ITEMS
All matters under Consent Agenda are considered by the City Council to be routine and will be enacted by one motion approving the recommendations listed on the agenda. Unless otherwise indicated, expenditures approved by Council are budgeted items. |
||||||||
A. | Consideration and Approval of Contract: Approve Change Order No. 17 with Shephard Wesnitzer, Inc. in the amount of $190,700.00 and a 365 calendar day time extension for the Rio de Flag Flood Control Utility Relocation Design Services Contract. | ||||||||
STAFF RECOMMENDED ACTION: | |||||||||
|
|||||||||
7. | ROUTINE ITEMS | ||||||||
A. | Consideration and Adoption of Ordinance No. 2023-07: An ordinance of the Flagstaff City Council authorizing the acquisition of real property for the Cinder Lake Landfill Road Improvement Project; providing for delegation of authority, repeal of conflicting ordinances, severability, authority for clerical corrections, and establishing an effective date | ||||||||
STAFF RECOMMENDED ACTION: | |||||||||
1) Read Ordinance No. 2023-07 by title only for the final time
2) City Clerk reads Ordinance No. 2023-07 by title only (if approved above) 3) Adopt Ordinance No. 2023-07 |
|||||||||
B. | Consideration and Adoption of Ordinance No. 2023-08: An ordinance of the City Council of the City of Flagstaff authorizing the acquisition of real property interests for the Schultz Creek Stabilization Project and the Highway 180 Culvert Project; providing for delegation of authority, severability, repeal of conflicting ordinances, authority for clerical corrections, and establishing an effective date | ||||||||
STAFF RECOMMENDED ACTION: | |||||||||
1) Read Ordinance No. 2023-08 by title only for the final time
2) City Clerk reads Ordinance No. 2023-08 by title only (if approved above) 3) Adopt Ordinance No. 2023-08 |
|||||||||
C. | Consideration and Adoption of Ordinance No. 2023-09: An ordinance of the City Council of the City of Flagstaff dedicating a public access easement across city-owned property located at 3500 N. West St.; providing for delegation of authority, repeal of conflicting ordinances, severability, clerical corrections, and establishing an effective date | ||||||||
STAFF RECOMMENDED ACTION: | |||||||||
1) Read Ordinance No. 2023-09 by title only for the final time
2) City Clerk reads Ordinance No. 2023-09 by title only (if approved above) 3) Adopt Ordinance No. 2023-09 |
|||||||||
D. | Consideration and Approval of Audited Financial Reports: Year ending June 30, 2022 | ||||||||
STAFF RECOMMENDED ACTION: | |||||||||
Approve the FY 2021-2022 Annual Comprehensive Financial Report and the FY 2021-2022 Single Audit Report
|
|||||||||
8. | DISCUSSION ITEMS | ||||||||
A. | Discussion on Public Notice of a Possible Primary Property Tax Levy Increase | ||||||||
Discuss and receive direction from City Council related to posting a Public Notice related to a possible Primary Property Tax Levy (revenues) increase.
|
|||||||||
9. | PUBLIC PARTICIPATION | ||||||||
10. | INFORMATIONAL ITEMS TO/FROM MAYOR, COUNCIL, AND STAFF, AND FUTURE AGENDA ITEM REQUESTS | ||||||||
11. | ADJOURNMENT | ||||||||
|
6.A.
| |||||||||||||
CITY OF FLAGSTAFF | |||||||||||||
STAFF SUMMARY REPORT | |||||||||||||
|
TITLE: | ||||||
Consideration and Approval of Contract: Approve Change Order No. 17 with Shephard Wesnitzer, Inc. in the amount of $190,700.00 and a 365 calendar day time extension for the Rio de Flag Flood Control Utility Relocation Design Services Contract. | ||||||
STAFF RECOMMENDED ACTION: | ||||||
|
||||||
Executive Summary: | ||||||
Approval of Change Order No. 17 will compensate Shephard Wesnitzer, Inc. (SWI) for assisting the City in acquiring the property rights necessary for the U.S. Army Corps of Engineers (USACE) to certify the real estate for construction based on the needed lands, easements, rights-of-way, relocations, and disposal site (LERRD) and complete design for the Rio de Flag Flood Control Project (Project). The additional tasks of Change Order No. 17 include survey services, legal descriptions for real estate acquisitions, low flow channel design revisions, design of pedestrian access at City Hall, and design/phasing of construction work at the Five Points Intersection. There is a 365 calendar day time extension requested with Change Order No. 17 to ensure the estate necessary meets the guidelines and requirements as outlined by the USACE. The Change Order Committee considered this item on March 30, 2023, it was approved with a recommendation to forward to the Council for final approval at the City Council meeting on April 18, 2023. Change Order No. 17 is currently in routing for signatures to document approval of the Change Order Committee and will be attached to the final agenda for this item. |
||||||
Financial Impact: | ||||||
The FY 2004-2005 original Design Services Contract was approved by City Council to SWI in the amount of $1,582,521.00. Subsequent values of prior changes authorized through the City Manager’s Change Order Authority and City Council approval has resulted in an amount of $2,206,731.34. The funding to pay the amount of Change Order No. 17 ($190,700.00) will come from the Stormwater Fund, tracked in the Rio de Flag project account #206-08-385-3236-0-4421. Original Contract Value $1,582,521.00 Value of Prior Changes $2,206,731.34 Value of this Change $ 190,700.00 New Contract Value $3,979,952.34 |
||||||
Policy Impact: | ||||||
No Impact.
|
||||||
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan: | ||||||
|
||||||
Has There Been Previous Council Decision on This: | ||||||
Previous City Council actions pertaining to authorized value changes and action items necessary for the continuation of the Project since FY 2004-2005. | ||||||
Options and Alternatives: | ||||||
|
||||||
Background and History: | ||||||
|
||||||
Key Considerations: | ||||||
|
||||||
Community Benefits and Considerations: | ||||||
|
||||||
Attachments: | Vicinity Map | ||
Change Order #17 |
7.A.
| |||||||||||
CITY OF FLAGSTAFF | |||||||||||
STAFF SUMMARY REPORT | |||||||||||
|
TITLE: | |||||
Consideration and Adoption of Ordinance No. 2023-07: An ordinance of the Flagstaff City Council authorizing the acquisition of real property for the Cinder Lake Landfill Road Improvement Project; providing for delegation of authority, repeal of conflicting ordinances, severability, authority for clerical corrections, and establishing an effective date | |||||
STAFF RECOMMENDED ACTION: | |||||
1) Read Ordinance No. 2023-07 by title only for the final time
2) City Clerk reads Ordinance No. 2023-07 by title only (if approved above) 3) Adopt Ordinance No. 2023-07 |
|||||
Executive Summary: | |||||
Landfill Road (Road), also known as Forest Road 6010, is under the jurisdiction of the Coconino National Forest, Flagstaff Ranger District (Forest Service) and has been the primary access route to Cinder Lake Landfill (Landfill) since 1965 under a Special Use Permit issued by the Forest Service. Structural evaluations of the Road concluded that the existing pavement is failing and in irreparable condition. The City began design work on roadway improvements in 2016 and delivered these efforts to the Forest Service in 2017. In October of 2022, the Forest Service concluded the Environmental Assessment (EA) for the project and delivered a decision and finding of no significant impact (FONSI). The Landfill anticipates construction to begin in summer 2023. The Road improvements will primarily occur within a new, 60' wide right of way easement granted from the Forest Service to the City; however, in order to smooth out curves 1 and 3 of the Road, approximately 16,627 square feet from the adjacent properties within Johnson's Ranch Subdivision will need to be acquired as right of way. This ordinance authorizes all necessary private property acquisitions required for the Cinder Lake Landfill Road Improvement Project. |
|||||
Financial Impact: | |||||
The Cinder Lake Landfill Road Improvement Project is an approved budget item in Fiscal Year (FY) 2023 through 2024. Acquisitions for the project will be charged to Solid Waste Fund in account 211-06-167-0631-0-4433 (Improvements to Land). Based off the appraised value, $100,000 has been allocated for property acquisitions. |
|||||
Policy Impact: | |||||
None | |||||
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan: | |||||
Priority Based Budget Key Community Priorities and Objectives Safe & Healthy Community
Community Resilience
E&C.7. Give special consideration to environmentally sensitive lands in the development design and review process. PF.2. Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics. T.4. Promote transportation infrastructure and services that enhance the quality of life of the communities within the region. T.8 Establish a functional, safe, and aesthetic hierarchy of roads and streets. |
|||||
Has There Been Previous Council Decision on This: | |||||
On September 6, 2016 City Council approved a contract with Plateau Engineering, Inc. to proceed with the Design Concept Report for Landfill Road (Item 10.C). The Design Concept Report provided the structural evaluation(s), design considerations, and cost estimates. On November 17, 2020, City Council approved a contract with EnviroSystems Management, Inc. to provide professional consulting services to prepare the Forest Service environmental assessment. |
|||||
Background and History: | |||||
The Landfill has been utilizing the Road since 1965 under a Special Use Permit issued by the Forest Service. Records indicate that an overlay was constructed in 1987. In 2016 staff contracted Plateau Engineering Inc. to prepare a Design Concept Report. The engineering team concluded that considerable warping existed throughout the road. In addition, the top coat has experienced irreparable damage and is leading to increased potholes. From a design perspective, the curve superelevations are excessive and need to be both decreased and realigned. The re-alignment and rebuild also warrants considering the installation of future utilities (three-phase electric and telecommunications). In 2017 the Landfill submitted the Design Concept Report to the Forest Service. This prompted the Forest Service to propose a Master Cost Recovery Agreement between the City and the Forest Service. The Master Cost Recovery Agreement was approved by City Council and the Forest Service in December 2019. Subsequently, Landfill staff was cleared to proceed with the EA. The EA, Notice of Decision, and FONSI were delivered in 2022. The Cinder Lake Landfill Road Improvement Project (to be constructed in summer 2023) involves the following improvements:
|
|||||
Community Involvement: | |||||
The acquisition of private property within the project boundary will ensure that the Landfill can provide the safe and reliable access to the facility. Consequently, the citizens of Coconino County and the City of Flagstaff will be able to continue to expect safe and affordable options for solid waste disposal and recycling. | |||||
Expanded Options and Alternatives: | |||||
The EA evaluated 3 alternatives. Alternative 1 would consist of no action (not preferred). Alternative 2 (preferred) would include all design features, but stipulates below-ground utility lines within the zones with High Scenic Integrity Objectives. All other utility locations may be above-ground unless the Landfill choose to exercise Alternative 3, which would consider placing utilities underground throughout the entire corridor (typically at least two-times the cost of overhead). Public involvement about the need for private property acquisitions for the Road occurred through the Forest Service EA: A mailing list was compiled from the Forest Service database of federal, tribal, state, and local agencies, and augmented with individuals and organizations interested or determined to be potentially impacted by the proposed project. Scoping documents that included a discussion of the proposed project and a map showing the project location were sent on July 7 and July 28, 2021, to 54 individuals, organizations, agencies, and tribes on the mailing list. An announcement was also posted on the Forest Service Schedule of Proposed Actions (SOPA). A total of five (5) public scoping responses were received. Three (3) of the comments were from landowners with concerns that the Road widening would impact their private properties in Johnson Ranch. One comment was from the Arizona Department of Transportation (ADOT) saying that an encroachment permit is needed if any construction activities would occur within an ADOT managed right-of-way. Lastly, a letter from Coconino County expressed support for the project and highlighted the need for the proposed Road improvements. On March 27, 2022, the Forest Service published the Cinder Lake Landfill Road Improvements Preliminary Environmental Assessment and published a legal notice for a 30-day comment period. Letters and e-mails with a brief description of the project and link to the EA and the project webpage were sent to fifteen individuals and organizations via e-mail. The City of Flagstaff sent notification to all of the Johnson Ranch landowners via postal mail. This project was also listed on the Forest Schedule of Proposed Actions and a solicitation for public input was posted on Facebook and Twitter on the evening of March 28th through Coconino National Forest official social media accounts. The Forest Service received a total of 3 submissions as letters and emails as a result of the 30-day comment period. One comment letter identified the use of an informal parking area along the Landfill Road that was used for interpretive educational group hikes to a historic 15-acre Crater Field developed in 1967 for Apollo Astronaut training and equipment testing. In response to this letter, alternate parking will be available to ensure access along the Landfill Road is maintained during construction to continue to allow these ranger-led hikes. Another comment received was from a prospective home buyer (the current owner) for a property that would be affected by the proposed project. This comment identified concerns including safety, scenic impacts, and loss of land. These issues were primarily addressed through additional information included in the response to comments document. To address potential impacts from scenic resources from this comment, an additional alternative was added as Alternative 3, which would include the same proposed Road improvements as the proposed action but would include a fully underground powerline to avoid potential scenic impacts to private properties along the Road. Ultimately the Forest Service chose Alternative 2 based on the potential to result in “undue costs to the City”. On August 21, 2022, the Forest Service published a Final Environmental Assessment, Draft Decision Notice, and initiated a 45-day objection filing period via a legal notice in the Arizona Daily Sun. No objections were received during the objection filing period. The Decision Notice and FONSI were approved by the Forest Service on October 25, 2022. |
|||||
Attachments: | Ord. 2023-07 | ||
Exhibit 1: Chart of Properties | |||
Exhibit 2: Map of Project | |||
Exhibit 3: Legal Descriptions | |||
Curve 1 and 3 Map | |||
Presentation |
7.B.
| |||||||||||||
CITY OF FLAGSTAFF | |||||||||||||
STAFF SUMMARY REPORT | |||||||||||||
|
TITLE: | |||||
Consideration and Adoption of Ordinance No. 2023-08: An ordinance of the City Council of the City of Flagstaff authorizing the acquisition of real property interests for the Schultz Creek Stabilization Project and the Highway 180 Culvert Project; providing for delegation of authority, severability, repeal of conflicting ordinances, authority for clerical corrections, and establishing an effective date | |||||
STAFF RECOMMENDED ACTION: | |||||
1) Read Ordinance No. 2023-08 by title only for the final time
2) City Clerk reads Ordinance No. 2023-08 by title only (if approved above) 3) Adopt Ordinance No. 2023-08 |
|||||
Executive Summary: | |||||
Expanding the Schultz Creek culvert at Highway 180 has been identified as an urgent flood mitigation project to deliver, in light of the 2022 Pipeline Fire and subsequent flooding. The project currently requires drainage easements from the Museum of Northern Arizona on the east side of Highway 180 and Mt. Calvary Lutheran Church on the West side of Highway 180. This ordinance authorizes all necessary private property acquisitions identified within the 30% design plan set required for the Highway 180 Culvert Project Additionally, through an emergency watershed protection grant, a channel stabilization project on Schultz Creek requires a temporary construction easement on the Museum of Northern Arizona parcel as well as other parcels owned by the museum. This ordinance authorizes all necessary private property acquisitions required to deliver the channel stabilization project. |
|||||
Financial Impact: | |||||
The Highway 180 Culvert Project is an approved budget item in Fiscal Year (FY) 2023 through 2024. Acquisitions for the project will be charged to the General Fund, unless State Funding or Federal appropriations are identified. The General Fund was identified as a “backstop” for this urgent Capital project during the Stormwater rate adjustment discussions with Council in early spring 2023. | |||||
Policy Impact: | |||||
If the General Fund is the funding source there may be impacts to other City priorities that are based on General Funding. | |||||
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan: | |||||
Priority Based Budgeting Priorities
|
|||||
Has There Been Previous Council Decision on This: | |||||
No previous decisions | |||||
Attachments: | Ord. 2023-08 | ||
Exhibit A: Chart of Affected Properties | |||
Exhibit B: Project Overview Map | |||
Exhibit 1: Chart of Properties | |||
Exhibit 2: Map of Project | |||
Exhibit 3: Legal Descriptions | |||
Presentation |
7.C.
| |||||||||||
CITY OF FLAGSTAFF | |||||||||||
STAFF SUMMARY REPORT | |||||||||||
|
TITLE: | |||||
Consideration and Adoption of Ordinance No. 2023-09: An ordinance of the City Council of the City of Flagstaff dedicating a public access easement across city-owned property located at 3500 N. West St.; providing for delegation of authority, repeal of conflicting ordinances, severability, clerical corrections, and establishing an effective date | |||||
STAFF RECOMMENDED ACTION: | |||||
1) Read Ordinance No. 2023-09 by title only for the final time
2) City Clerk reads Ordinance No. 2023-09 by title only (if approved above) 3) Adopt Ordinance No. 2023-09 |
|||||
Executive Summary: | |||||
Recent Spruce Wash flooding has created parking and access issues for residents on Grandview Drive. The City owns the 60,079 Square foot unimproved property at 3050 N West St., South of Grandview Drive (Assessor Parcel Number 109-02-001P). This ordinance dedicates a 1,988 square foot public access easement on the City-owned property which will provide alternative access to adjacent residences provided the adjacent owners build and maintain the improvements within the public access easement. This would be used as alternate access to the residential properties located at 1131 E Linda Vista Dr., 3513 N Grandview Dr., and 3509 N Grandview Dr. (APN 109-04-015, 014, and 013). Should the eventual development of the City parcel require modification of this easement, the City has retained the right to relocate the easement within the City parcel provided that access to the adjacent owners is maintained. |
|||||
Financial Impact: | |||||
There is no cost to dedicate the public access easement on the City-owned property. | |||||
Policy Impact: | |||||
None. | |||||
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan: | |||||
Priority Based Budget Key Community Priorities and Objectives
Safe & Healthy Community
CR-1 Ensure all mitigation actions improve Flagstaff’s ability to adapt to the future.
CR-2 Strengthen existing community systems to create resilience to both short-term shocks and long-term change. Regional Plan Goal E&C.3. Strengthen community and natural environment resiliency through climate adaptation efforts.
|
|||||
Has There Been Previous Council Decision on This: | |||||
There have been several prior council discussions regarding the City-owned property: On July 7, 2017 the City Council approved the Housing Section's Request for Proposals for the development of this parcel for multi-family affordable housing. On September 12, 2017 the City Council provided direction to staff to pursue a Concept Zoning Map Amendment on this parcel for the purpose of developing multi-family affordable housing. On January 2, 2018 City Council approved both zoning map amendment requests with conditions. On March 14, 2018 the City entered into a Purchase Agreement to sell the parcel to Brinshore Development. The developer determined it could not meet the low income tax credit development timeline; the purchase agreement was never consummated and the City still retains ownership of the parcel. |
|||||
Attachments: | Ord. 2023-09 | ||
Exhibit 1: Public Access Easement | |||
Presentation |
7.D.
| |||||||||||
CITY OF FLAGSTAFF | |||||||||||
STAFF SUMMARY REPORT | |||||||||||
|
TITLE: | |||||
Consideration and Approval of Audited Financial Reports: Year ending June 30, 2022 | |||||
STAFF RECOMMENDED ACTION: | |||||
Approve the FY 2021-2022 Annual Comprehensive Financial Report and the FY 2021-2022 Single Audit Report
|
|||||
Executive Summary: | |||||
The City is required to perform an annual audit each year, pursuant to Arizona Revised Statutes (A.R.S.) Section 9-481 and the City Charter (Article VI, Section 5); this audit is commonly known as the Annual Comprehensive Financial Report (ACFR). The ACFR is reviewed by an independent auditor to provide reasonable assurance that the financial statements are free of material misstatements. In addition, the City also obtains an annual Single Audit as a condition of receiving federal assistance in excess of $750,000. An independent auditor performs the Single Audit. Pursuant to A.R.S. Section 9-481, the certified public accountant who performed the audit is to present audit results and any findings to the council in a regular meeting, without the use of a consent agenda, within 90 days of audit completion. |
|||||
Financial Impact: | |||||
There is no financial impact on approving the City's Fiscal Year 2021-2022 Annual Comprehensive Financial Report (ACFR) or the FY 2021-2022 Single Audit. | |||||
Policy Impact: | |||||
None. | |||||
Connection to PBB Key Community Priorities/Objectives & Regional Plan: | |||||
Financial Reporting supports the Key Community Priority of High Performing Governance by furthering the following associated Objectives:
|
|||||
Previous Council Decision on This: | |||||
None. | |||||
Options and Alternatives: | |||||
|
|||||
Background and History: | |||||
The City is required to perform an independent annual financial audit per City Charter Article VI, Section 5 which states: "Prior to the end of each fiscal year, the Council shall designate an independent Certified Public Accountant, who, as of the end of the fiscal year, shall make up an audit of accounts and other evidence of financial transactions of the City government, and shall submit a long-form report, including recommendations concerning policy and fiscal procedures, to the Council, and to the City Manager. Such accountant shall have no personal interest, direct or indirect, in the fiscal affairs of the City government or of any of its officers. The accountant shall, within specifications approved by the Council, post-audit the books and documents kept by the City, and any separate or subordinate accounts kept by any other office, department, or agency of the City government." In addition to the financial audit, the City is required to complete a Single Audit because it receives more than $750,000 in federal assistance. The City has hired CliftonLarsonAllen, LLP (the Auditors). The Auditors work directly with the Finance Staff as well as other City Divisions & Sections to complete a review of the City's financial data and internal controls. The financial reports are the responsibility of the City and are based on the activity of the fiscal year. The ACFR is presented in accordance with all standards as defined by the Government Accounting Standards Board (GASB). The Auditors are not responsible for reviewing every transaction for the fiscal year, however, based on the standards the Auditors plan and perform the audit to obtain reasonable assurance that the statements are free of material misstatements. The Auditors prepare the Single Audit which is an independent assessment of City finances and includes a schedule of expenditures of federal fund awards. The City has established an Audit Committee to review the financial reports and findings (ACFR and the Single Audit). The committee discusses the information and makes a recommendation to Council to accept or reject the financial reports. The Audit Committee is represented by a City Councilmember, the City Manager, and the Management Services Director:
|
|||||
Key Considerations: | |||||
The City has received an "unmodified opinion" from the Auditors, meaning the audit firm believes the financial statements are fairly presented in accordance with generally accepted accounting principles. In the Communication to Mayor and City Council (attached), the audit firm states: there were no significant difficulties encountered in performing the audit and; there were no disagreements with management. In the FY 2021-2022 Single Audit Report, there were no findings, material weaknesses, significant deficiencies or noncompliance material to financial statements noted. The City did qualify as a low-risk auditee for the FY 2021-2022 audit. The Audit Committee unanimously approved the acceptance of the ACFR and Single Audits at their April 5, 2023 meeting. |
|||||
Community Benefits and Considerations: | |||||
An annual audit is statutorily required by A.R.S. Section 9-481. In addition, should the City not perform an annual audit of its financial statements and complete a Single Audit, the City could lose valuable grant funding. The amount of reimbursements of Federal Award reported for in the Fiscal Year 2021-2022 was $22.4 million. State and local grant funding totaled $3.8 million in Fiscal Year 2021-2022. | |||||
Community Involvement: | |||||
Independent review of the City’s financial statements elevates the level of confidence that the City is reporting fairly, accurately, and within prescribed guidelines. | |||||
Expanded Options and Alternatives: | |||||
Involve: The community is directly involved through the participation on the Audit Committee. Inform: Any community member may review the most recent ACFR and Single Audit Report. The current and historical ACFR and Single Audit and SEFA are on file and available for public inspection in the following locations:
|
|||||
Attachments: | Annual Comprehensive Financial Statement FY2021-2022 | ||
Single Audit Report FY2021-2022 | |||
Governance Communication FY2021-2022 | |||
Presentation |
8.A.
| |||||||||||||
CITY OF FLAGSTAFF | |||||||||||||
STAFF SUMMARY REPORT | |||||||||||||
|
TITLE | |||||
Discussion on Public Notice of a Possible Primary Property Tax Levy Increase | |||||
STAFF RECOMMENDED ACTION: | |||||
Discuss and receive direction from City Council related to posting a Public Notice related to a possible Primary Property Tax Levy (revenues) increase.
|
|||||
EXECUTIVE SUMMARY: | |||||
City staff is seeking Council direction on posting a 60-day website notice related to Primary Property Tax. A notice is required to be posted on the City website and distributed through social media at least 60 days prior to adoption of a new tax or fee, or an increase in the rate of a tax or fee, per A.R.S. Section 9-499.15 ("60-day notice"). The City must post the 60-day notice in the event Council would be considering adoption of either an increase in either the Primary Property Tax levy (revenues) or the Primary Property Tax rate. If Council gives direction to increase our Primary Property Tax levy (revenues) the City is required to publish Truth in Taxation notices in the local newspaper, per A.R.S. Section 42-17107. City staff is asking Council if they would like to provide a 60-notice. Posting the 60-day notice on the City's website does not commit the City to increase the levy. |
|||||
INFORMATION: | |||||
City staff is seeking City Council direction on whether it desires to post a 60-day notice on the City's website prior to consideration of adoption of an increase in the Primary Property Tax levy (revenues). Arizona's statutes allow cities to increase their Primary Property Tax levy (revenues) by 2% annually, excluding new construction added to the assessment rolls. If the cities do not utilize the maximum allowable levy, the increase is available in future years in addition to 2% allowed annually. The City did not assess the increase levy since FY 2019-2020, and therefore we are allowed to increase the levy up to 8%, $590,000 for the next fiscal year. Arizona Revised Statutes Section 9-499.15 requires posting of a 60-day notice on the City website and social media if the City proposes to impose a new tax or fee, or increase the rate of an existing tax or fee. The public notice includes posting on our website and social media. The deadline to post the notice is April 21, 2023. The current Primary Property Tax rate is 0.6954 per net assessed valuation and the maximum allowable rate, with the 8% levy increase, is $.7180 per net assessed valuation. Arizona Revised Statutes Section 42-17107 requires publication of Truth in Taxation notices in the local newspaper if the City considers increasing our Primary Property Tax levy (revenues) by any amount above the prior year's levy plus new construction. Should Council give direction at the April Budget Retreat to increase the levy the publication requirements will begin late May. The process will include posting a notice in our local newspaper twice as well as a public hearing during budget adoption. The current City Manager budget proposal will be discussed on April 27 and 28, 2023 at the Budget Retreat. The proposal does not include a recommendation to increase the Primary Property Tax levy. During the retreat, the City Council will have the ability to provide direction to amend the proposed budget. Decisions could include balancing the proposal by adding items to fund with potential offsets of deleting items that are currently proposed. In addition, the Council could propose a Primary Property Tax levy increase, up to 8%, to fund additional items or programs at the Council's request. If the Council would like to discuss the option of increasing the Primary Property Tax levy at the Budget Retreat, staff recommends posting a 60-notice on the City website and through social media. As part of the posting we would provide the public with information to be considered at the Budget Retreat. |
|||||
Attachments: | Presentation |