Flagstaff City Council Considers Primary Property Tax Increase for 2025-2026 Fiscal Year

The City of Flagstaff may soon see an increase in primary property tax rates, following a recent notice issued by the City Council. According to the notice published on the City's website, the City Council is contemplating a raise in property tax levies for the 2025-2026 fiscal year, a move that does not include the standard hike for new construction. The formal discussion on whether to implement this increase is set to take place during the City's April Budget Retreat on the 24th and 25th of April, which is open to public attendance at the Core Service Administrative Building.

In adherence to state law requirements, the City of Flagstaff will host a public hearing should an increase be deemed necessary. This hearing, part of the Truth in Taxation legislative protocol, is currently planned for June 17, 2025, at 3:00 p.m. in the City Council Chambers at 211 W. Aspen Avenue, Flagstaff, as posted in a notice on the city's homepage. Should the tax levy see an increase, it would bump up from the previous year's rate of 0.6363 per $100 of net assessed valuation to a new rate of 0.6808, marking a significant jump in property taxes for Flagstaff residents.

An initial reading of an ordinance to ratify the proposed tax rate is slated for the same day as the public hearing, while the final reading could occur on July 1, 2025, at 3:00 p.m., also open to the public. City Council's potential increase, as detailed in the notice, aims for the maximum allowable levy of $8,181,322, an uptick from the prior year's $7,230,876.

For residents concerned or curious about these changes, the City's Finance Director, Brandi Suda, has been named a contact point for questions. The primary property tax is critical for the city's General Fund, impacting services ranging from emergency services like Police and Fire Departments to community programs such as Recreation, Parks, and Community Development, all of which are supported by these taxes according to the posted schedule of rates. The City emphasizes that the primary property tax only represents about 10% of the total General Fund revenues, indicating the significance of these levies for maintaining a balanced city budget.