* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. OKAY. [00:00:05] SO [1. CALL TO ORDER/PLEDGE OF ALLEGIANCE/MOMENT OF SILENCE] UNLESS THERE'S ANY, UM, OPPOSITION, I'D LIKE TO HOLD ITEM ONE, UH, FOR THE PLEDGE OF ALLEGIANCE AND THE MOMENT OF ART TO THE, UH, TO THE MOMENT OF SILENCE TILL THE NEXT MEETING, WHICH WILL IMMEDIATELY FOLLOW. OKAY. CLICK ON IT. OKAY. WHENEVER YOU'RE READY, I NEED YOU TO DO A ROLL CALL. ROLL CALL. YES, PLEASE. MAYOR JALO. PRESENT VICE MAYOR PLU. HERE. COUNSELOR DUNN. PRESENT. COUNSELOR FOLTZ IS EXCUSED. ABSENT. COUNCILOR FURMAN? HERE. COUNCILLOR KINSELLA. PRESENT. COUNCILLOR FAF. HERE. THANK YOU. OKAY. ITEM [3.a. AB 3156 Public hearing/discussion/possible action regarding approval of a Resolution adopting the City of Sedona’s Budget for Fiscal Year 2025-26.] THREE, SPECIAL BUSINESS. A AB 31 56 PUBLIC HEARING. DISCUSSION. POSSIBLE ACTION REGARDING APPROVAL OF A RESOLUTION ADOPTING THE CITY OF SEDONAS BUDGET FOR FISCAL YEAR 20 25, 26. GOOD AFTERNOON, MAYOR AND COUNCIL MEMBERS. UM, BARBARA WHITEHORN, UH, DIRECTOR OF FINANCIAL SERVICES AND STERLING WEST ARE BUDGET AND FINANCIAL ANALYST. SO WE'VE MADE IT THROUGH ANOTHER BUDGET SEASON. UM, THE CALENDAR, YOU KNOW, THIS IS REALLY CONDENSED 'CAUSE THERE'S LOTS MORE THAT GOES INTO IT, BUT WE ARE ON THE VERY LAST STEP OF THE YEAR, THE ADOPTION OF THE FINAL BUDGET. SO, GO AHEAD. UM, WE HAD SOME ASSUMPTIONS THAT WE INCORPORATED SOME AT YOUR DIRECTION. UM, DUE TO THE UNCERTAIN ECONOMY THAT WE HELD REVENUES FLAT OR IN SOME CASES REDUCED THEM, THE STATE REVENUES IN PARTICULAR, ALL OF THE RESERVES MEET POLICY REQUIREMENTS AND OVERALL EXPENDITURES ARE REDUCED FROM FISCAL 25. AND I WOULD LIKE TO JUST ADD, UM, WHILE WE HAVE A MOMENT THAT THE, YOU KNOW, MARCH SALES AND BED TAX WERE DISAPPOINTING THIS YEAR. THEY WERE STILL HIGHER THAN BUDGET, BUT THEY WERE LOWER THAN PRIOR YEAR. I THINK THAT WAS, YEAH, A LITTLE LOWER THAN PRIOR YEAR, WHICH WAS SURPRISING FOR THE SAME TIME PERIOD. SO WE KIND OF ANTICIPATED THAT APRIL WOULD SHOW THE SAME KIND OF TREND GIVEN WHAT WE'RE SEEING NATIONALLY. UM, SURPRISINGLY IT DID NOT. WE HAD THE BEST APRIL, UM, FOR SALES AND BED TAX THAT WE'VE EVER HAD. UM, I DON'T THINK THAT MEANS WE JUST SAY, OH, ALL IS GOOD. I THINK WE STILL, UM, MAINTAIN A SENSE OF, YOU KNOW, CAUTIOUS OPTIMISM AND CONTINUE TO BE READY TO PIVOT SHOULD THINGS CHANGE WITH THE ECONOMY. SO THE FINAL BUDGET TOTALS, WE, UM, REDUCED IN SEVERAL PLACES THAT YOU ALL INSTRUCTED THAT WE SHOULD FOR A TOTAL DECREASE OVER 2025 OF 2.9 MILLION OR 2.8%. UM, THE OPERATING BUDGET INCREASED BY 5.8% AND THE CAPITAL BUDGET DECREASED BY 13%. SO THESE ARE THE CHANGES FROM MAY 27TH TO TODAY. AND THERE'S, YOU KNOW, SMALL GRANTS. WE REDUCED THE AMOUNT THAT WE HAD IN THERE AS A PLACEHOLDER. UM, PARKS IMPROVEMENTS THAT WE WERE ABLE TO COMPLETE WITHIN THIS FISCAL YEAR AS WELL AS PD VEHICLE UPFITS. UM, THE SALARY STUDY IMPLEMENTATION WAS LESS THAN ANTICIPATED. WE DID ADD, UM, $10,000 FOR THE RED ROCK TRAIL FUND. UM, THE ENTERPRISE LEASES PAID OFF IN THIS YEAR ARE, UH, REPRESENTED SAVINGS NEXT YEAR OF ALMOST 140,000. AND THEN BENEFIT COSTS THAT WE ESTIMATED HIGHER THAN THEY CAME IN WAS ALSO A SAVINGS. SO THE TOTAL DECREASE FROM MAY 27TH TO TODAY WAS $706,000. BARBARA, DID WE PAY OFF ALL THE ENTERPRISE LEASES? WE DID. AND THAT IS ACTUALLY OUR NEXT SLIDE. THE TOTAL COST, AND WE DID IT IN THIS YEAR, WAS 922,656. THAT'S, YEAH. AND THAT INCLUDED 78,000 IN SALES TAX. UM, BECAUSE OF COURSE WE PAY SALES TAX ON THE FULL VALUE OF THE VEHICLES. SO THAT SEEMS LIKE A LOT OF SALES TAX, BUT THAT'S ACTUALLY PRETTY REASONABLE. AND THAT'S DIVIDED BETWEEN THE GENERAL FUND AND THE WASTEWATER FUND AND THE INTEREST SAVINGS. JUST THE INTEREST, NOT THE PAYMENTS ITSELF IN FISCAL 26 IS $19,000 AND THE TOTAL INTEREST SAVINGS IS, UM, 34 AND A HALF THOUSAND. SO THAT WAS KIND OF NICE TO GET THAT DEBT OFF OF OUR, OFF OF OUR BOOKS. UM, THIS SLIDE IS JUST THE MAJOR CHANGES AND I KNOW [00:05:01] YOU ALL ARE FAMILIAR WITH THIS, BUT I WANTED TO KIND OF PUT IT IN ONE PLACE SO THAT YOU COULD SEE IT AND SO THAT ANYONE, UM, WATCHING THE AUDIENCE COULD SEE, YOU KNOW, WHAT CHANGES WE MADE, UM, IN THE BUDGET FROM FISCAL 25 TO FISCAL 26. OKAY. GO AHEAD. AND THIS IS THE EXPENDITURES BY TYPE. WE'VE ALSO BEEN THROUGH THIS, UM, THIS IS JUST UPDATED WITH THE REDUCTIONS AND THE NEXT SLIDE, AND I'VE MESSED UP MY OWN STUFF. THE, WE HAVE THE CAPITAL IMPROVEMENTS BY CATEGORY, AND I'M JUST GONNA GO THROUGH THESE QUICKLY BECAUSE YOU'VE SEEN ALL THIS. I JUST WANTED TO MAKE SURE THAT WE HAD IT AVAILABLE IF YOU HAD ANY QUESTIONS ABOUT CAPITAL IMPROVEMENTS, DECISION PACKAGES, ANYTHING, UM, THAT WE'VE ALREADY GONE OVER. AND THIS IS THE BUDGET BY FUND, UM, WHERE WE'VE GOT THE GENERAL FUND, THE SPECIAL REVENUE FUNDS, CAPITAL PROJECTS, AND, YOU KNOW, GOVERNMENTAL ACCOUNTING IS KIND OF LIKE A CONGLOMERATE IN THE BUSINESS WORLD, RIGHT? YOU HAVE THE GENERAL FUND AND THEN YOU HAVE ALL THESE OTHER LITTLE BUSINESSES, IF YOU WILL, THAT OPERATE IN THE CITY. AND THAT'S SORT OF HOW WE ACCOUNT FOR IT. AND THAT'S WHY IT'S IMPORTANT. SOME OF THE FUNDS ARE RESTRICTED, LIKE SPECIAL REVENUE FUNDS FOR GRANTS, UM, YOU KNOW, THINGS. AND THEN THEY'RE DEDICATED IN THE CASE OF LIKE CAPITAL PROJECTS FUND, WHERE COUNCIL HAS SAID THIS MONEY WILL GO TO CAPITAL PROJECTS, RESERVES, TOTAL RESERVES ARE, UM, 66,600, AND THAT MEETS ALL OF THE RESERVE REQUIREMENTS OF THE CITY. SO WE'RE IN GOOD, GOOD SHAPE WITH THAT. AND THE FINAL BUDGET, AGAIN, THIS WAS JUST TO LIKE REITERATE. YES, IT'S LOWER THAN LAST YEAR, WHICH ACTUALLY I THINK IS, IS REALLY GREAT AND, UM, SHOWS A LOT OF FISCAL PRUDENCE, UM, ON, ON Y'ALL'S PART. SO NEXT STEPS FOR BUDGET IN FISCAL 26. I KNOW IT SEEMS LIKE WE SHOULD BE COMPLETELY DONE, BUT OF COURSE STAFF IS NOT. UM, WE WILL CONTINUE TO MONITOR ECONOMIC CONDITIONS, PARTICULARLY SALES AND BED TAX. UM, AND WHAT WE CAN ANTICIPATE. WE LOOK AT CONSUMER CONFIDENCE INDICES, MARKET PERFORMANCE AND WHERE THE FED IS HEADED. IT LOOKED LIKE THE FED WAS GONNA REDUCE RATES ABOUT NOW, AND THEY'VE DECIDED THEY'RE NOT GONNA DO THAT RIGHT NOW. I WOULD, HOWEVER, BE SURPRISED IF THEY DIDN'T, UM, REDUCE RATES BY 25 BASIS POINTS BY THE END OF THE CALENDAR YEAR. BUT I'M NOT A PROFESSIONAL ECONOMIST, SO I'M BASING MY OPINION ON THAT OF ACTUAL ECONOMISTS AND, AND WHAT THEIR EXPECTATIONS ARE. UM, AND WE WILL ALSO BE PLANNING FOR FISCAL 27 AND THAT'S OUR, OUR NEXT BIG THING. AND THAT'S IT. ANY QUESTIONS OR, OKAY. VICE MAYOR, SO THIS IS IT. THIS IS THE ADOPTION OF THE BUDGET. THIS IS IT. OKAY. WE WERE GOING TO TALK ABOUT, AND JUST LET ME KNOW WHEN YOU THINK THAT WOULD BE APPROPRIATE OF OUR, UM, WHAT TO DO WITH EXCESS MM-HMM . REVENUE, YOU KNOW, OR BUDGET EXCESS FOR THIS YEAR WHEN WE PLAN ON DECIDING WHAT TO DO WITH THAT. WELL, STANDARD FOR, UH, HERE IN SEDONA HAS BEEN THAT FISCAL YEAR 24 WOULD BE DISCUSSED IN 25, BUT IN, I MEAN IN 26. SO IT'S LIKE IT SKIPS A YEAR AND LAST YEAR THIS COUNCIL DIRECTED STAFF TO TAKE ANY SURPLUS AND PUT IT TO CAPITAL PROJECTS. SO THERE ISN'T THAT SURPLUS FROM 24 AVAILABLE TO DISCUSS. WE DO ANTICIPATE A SURPLUS THIS YEAR WHERE WE 7.3 MILLION. YEAH, I I DIDN'T HEAR THAT. 7.3 MILLION. UM, HOWEVER, UNTIL WE COMPLETE THE FINANCIALS, YOU KNOW, THAT'S NOT CERTAIN. UM, COUNCIL IS ABSOLUTELY, UM, ABLE TO DISCUSS USING THAT. MOST CITIES ACTUALLY DON'T DO THE YEAR DELAY THING UNTIL YOU HAVE THE AUDITED FINANCIALS. UM, IN MY EXPERIENCE. UM, AND THAT'S NOT TO SAY IT ISN'T A GOOD THING, IT REALLY IS BECAUSE YOU'RE DEALING WITH THE ACTUAL FOR SURE, YOU KNOW, SURPLUS AT THAT POINT WHEN YOU DISCUSS IT AND DECIDE WHAT TO DO WITH IT. AT THIS POINT, YOU'RE KIND OF MAKING ASSUMPTIONS BASED ON WHERE WE THINK WE WILL LAND AT THE END OF THE YEAR. BUT THAT COULD BE HIGHER OR LOWER DEPENDING ON WHAT BILLS COME IN. YOU KNOW, THE CAPITAL PROJECTS, HOW, HOW MUCH IS COMPLETED BY JUNE 30TH. THAT'S REALLY WHAT DRIVES IT. UM, BUT YOU ARE WELCOME TO DECIDE THAT YOU WANT TO ALLOCATE THAT MONEY WHEN IT'S DETERMINED HOW MUCH IT IS TO ANY PARTICULAR [00:10:01] PROJECT OR AREA, UM, THAT YOU WOULD LIKE. SO IS THERE, SO IT'S JUNE 24TH, SO WE'RE, WE'RE CLOSE TO YEAR END. I'M NOT SUGGESTING WE DO IT TODAY, BUT I AM SUGGESTING THAT WE PUT IT ON THE AGENDA TO DO IT AFTER THE BOOKS ARE CLOSED. AND IS THERE MONEY UNALLOCATED FROM PREVIOUS YEARS? NO. NO. NOT FROM PREVIOUS YEARS. SO ONLY FOR FY 25? YES, MA'AM. OKAY. PETE. PETE, I, I'M NOT IN FAVOR OF HAVING THAT CONVERSATION. I'D LIKE THE HISTORICAL PRECEDENCE THAT WE'VE SET AND WE DON'T TALK ABOUT IT TILL THE NEXT BUDGET PROCESS. KATHY, ANYTHING? UM, HAVEN'T DIGESTED CHANGE? WHY? SORRY, HAVEN'T DIGESTED. WHY THE ADVANTAGE REALLY OF CHANGING THE SCHEDULE? WELL, WE DO, WE CHANGED IT LAST YEAR. I MEAN, IT'S NOT LIKE IT'S, WE HAVEN'T DONE IT BEFORE. OKAY. BECAUSE I WANNA PAY DEBT, THAT'S WHY. UH OH, OKAY. . THAT'S MY REASON. OKAY. UM, DOES STAFF SEE ANY DISADVANTAGE TO TIMING ON THIS? BECAUSE I THINK THAT'S A GOOD REASON TO MOVE UP. SO, I, I DON'T, UM, THE BOOKS ARE USUALLY CLOSED IN DECEMBER. THE AUDITS COMPLETE AND THE AUDITS PRESENTED, YOU KNOW, IN JANUARY, I WOULD RECOMMEND THAT WE HAVE A DISCUSSION AT THAT POINT, UM, EITHER DECEMBER OR JANUARY. 'CAUSE BY THEN WE HAVE LIKE A REALLY SOLID IDEA AND AT THAT POINT WE COULD DISCUSS, OKAY, HERE'S WHAT WE HAVE. DO YOU WANNA USE IT FOR THAT? WOULD YOU PREFER TO PUT IT TOWARDS PROJECTS TO, UM, NOT HAVE TO ISSUE DEBT IN THE FUTURE? I MEAN, THERE ARE LOTS OF OF OPTIONS THAT YOU COULD DISCUSS AND AT THAT POINT WE DO KNOW, OF COURSE WE CAN'T DO ANYTHING WITH IT AT THAT POINT, RIGHT? 'CAUSE IT'S NOT BUDGETED UNDER ARIZONA LAW WHAT IT WOULD DO. UM, COUNCILLOR FURMAN IS BASICALLY SET UP FOR STAFF TO HAVE AN IDEA OF WHAT YOU HOPE TO SEE WHEN WE BRING THE BUDGET TO YOU IN THE WORK SESSIONS. UM, I WOULD, I THINK, I THINK IT'S WORTHY OF, OF HAVING THAT DISCUSSION AND PROBABLY IN JANUARY, UH, AND NOT WAITING BECAUSE AT THAT DISCUSSION WE COULD ALSO SAY WE CHOOSE TO WAIT. YEAH. SO I MEAN, I THINK THAT, I THINK THAT I AGREE. I THINK WE SHOULD DO THAT. OKAY. WE WILL ABSOLUTELY MAKE SURE WE HAVE THAT ON THE AGENDA. OKAY. THANK YOU. I I THINK WE SHOULD GET THE NONS SPEAKERS TO SPEAK HERE BECAUSE WE NEED DIRECTION TO STAFF AND THAT MEAN, TAKE OUR TERM. HOLD ON, DEREK, IN FAVOR OF MOVING OUT. SO AM I, MELISSA. I THINK IT DOESN'T DO ANY HARM TO HAVE THE CONVERSATION SO LONG AS EVERYONE IS AWARE OF THE FACT THAT THOSE FUNDS CANNOT BE TOUCHED UNTIL THE FOLLOWING BUDGET YEAR. MM-HMM . COUNCILLOR FFF, CAN YOU SPEAK INTO THE MIC? I'M IN FAVOR OF MOVING IT UP. OKAY, THANK YOU. IF I CAN ASK EVERYBODY AS YOU ENTER INTO THE CHAMBERS, TRY TO KEEP YOUR, YOUR VOICES DOWN PLEASE. OKAY. OKAY. THANK YOU BARBARA. OKAY, NOW I'M GOING TO, WE'LL OPEN UP THE PUBLIC FORUM. SO THIS IS OPPORTUNITY FOR, UH, THE PUBLIC TO, UH, SPEAK FOR THREE MINUTES. HONEST. UH, AGENDA ITEM, UH, TIM PERRY, YOU'RE UP. YOU KNOW, START WITH YOUR NAME. CITY OF RESIDENCE. YOU HAVE THREE MINUTES. GOOD EVENING COUNSELORS. MY NAME IS TIM PERRY AND I LIVE IN UPTOWN SEDONA. WELL, THREE MINUTES ISN'T REALLY THAT MUCH TIME TO COMMENT ON JUST HOW AWFUL THIS OVERBLOWN BUDGET IS, BUT WE'LL GIVE IT A SHOT. I THINK THE FIRST THING THAT NEEDS TO BE POINTED OUT AND NOTED HERE IS THAT ABOUT TWO THIRDS OF THIS BUDGET CONSISTS OF HANDOUTS TO CITY STAFF. BASICALLY THE FIRST, UH, 23% OF THAT COMES IN DIRECT COMPENSATION IN TERMS OF THEIR SALARIES AND BENEFITS. AND I REALLY HAVE TO COMMEND ANNETTE HERE ON HER A JOINT HANDLING OF COUNCIL TO GET YOU TO GIVE THEM ALL THEIR RAISE. IT'S VERY HUMPHREY APPLEBEE OF YOU, ANNETTE, UH, ALSO, UH, COMPLIMENTS ON YOUR, UH, 10% AS WELL. PROBABLY THE MOST FUNDAMENTALLY IMMORAL THING ABOUT THIS BUDGET IS THAT THESE STAFF RAISES FOR ALL OF THE OTHER CATEGORIES ARE JUSTIFIED BY THE ADDITIONAL INCREASES THAT NEED TO BE GIVEN TO THE CITY'S HIRED KILLERS. AND OF COURSE, ALSO THE ADDITIONAL, I THINK IT IS TWO AND A HALF MILLION, TWO HIGHER, 30% MORE KILLER COPS, BUT MAYBE THEY'LL BE ABLE TO, UH, FAKE THE HOMELESS PROBLEM THEY'RE TRYING TO CREATE A LITTLE BIT BETTER. OR MAYBE THEY'LL BE ABLE TO GET THE, UH, RATE OF VIOLENCE THEY COMMIT IN THIS TOWN UP ABOVE THE 89% THAT'S CURRENTLY THEIR AVERAGE. NOW, OF COURSE, COUNCIL AND STAFF ALWAYS TELL US THAT WELL, STAFF DESERVE THESE SALARIES. THEY DESERVE THESE INCREASES BECAUSE THEY WORK SO [00:15:01] HARD. LET'S GET THAT LIE OUT OF THE DISCUSSION RIGHT NOW. THERE ARE EXACTLY THREE PEOPLE AT THE CITY WHO DO ANYTHING THAT'S USEFUL. AND THOSE ARE IN THE CITY CLERK'S OFFICE. THE REST ARE PARASITES ON THE DOLE. ANYTHING THAT CITY STAFFERS DOING IS EITHER NOT USEFUL IN THE FIRST PLACE, OR IT'S SOMETHING THAT COULD HAVE MUCH BETTER BEEN DONE BY THE COMMUNITY. UH, BEFORE ALL THESE, UH, COMRADES OF COMRAD LENIN SHOWED UP, WHICH IS ESPECIALLY TRUE HERE IN SEDONA WHERE IT ALWAYS WAS. THE OTHER BIG CHUNK OF STAFF COMPENSATION IN THIS BUDGET IS THE 41% FOR CAPITAL PROJECTS. CAPITAL PROJECTS AREN'T BUILT BECAUSE THE CITY ACTUALLY NEEDS THEM IN ANY WAY. THEY'RE BUILT BECAUSE STAFF LIKE TO PUT THESE PROJECTS ON THEIR RESUMES FOR WHEN THEY MOVE ON TO THEIR NEXT CIVIL SERVICE JOB. BUT THEY'RE ALSO BUILT BECAUSE THEY'RE AN EXCELLENT OPPORTUNITY FOR STAFF TO WORK OFF THEIR SADISM AND THEIR EGOCENTRICITY AND THEIR CONDESCENSION TOWARDS THE PUBLIC. THEY ENJOY PUSHING THESE PUBLIC, AGAIN, PROJECTS AGAINST THE PUBLIC WILL. THAT'S ONE REASON THEY TAKE THE JOB AT CASE IN POINT, SEDONA IS NOT BUILDING A PARKING GARAGE BECAUSE IT ACTUALLY NEEDS A PARKING GARAGE. IT'S BUILDING A PARKING GARAGE BECAUSE THE THOUGHT GIVES ANDY DICKEY A HARD ON. THIS ISN'T A BUDGET FOR THE PEOPLE. THIS IS A HANDOUT TO A BUNCH OF VIOLENT PSYCHOPATHS WHO ARE TRYING TO TAKE AWAY INDIVIDUAL FREEDOM. AND THAT'S EXACTLY WHY YOU ARE GOING TO VOTE FOR IT. OKAY. UH, WE'LL CLOSE THE PUBLIC COMMENT PERIOD. AND CAN I HAVE A MOTION PLEASE? I MOVE TO ADOPT RESOLUTION NUMBER 20 25 0 9 0 9, ADOPTING THE BUDGET FOR FISCAL YEAR 20 25, 26, INCLUDING THE BUDGET ATTACHMENTS. OKAY. CAN I HAVE A SECOND PLEASE? I'LL SECOND THAT. SECOND BY COUNCILOR KINSELLA. ANY DISCUSSION? HEARING NONE. ALL IN FAVOR SAY AYE. AYE. AYE. ANY OPPOSED? WE ARE UNANIMOUS. OKAY, [5. ADJOURNMENT] WE'RE GOING TO CLOSE THIS MEETING, ADJOURN THIS MEETING AND TAKE A FOUR OR FIVE MINUTE BREAK TO, TO BE, UH, STARTING UP THE NEXT MEETING. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.