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TO ORDER.[1. CALL TO ORDER/PLEDGE OF ALLEGIANCE/MOMENT OF SILENCE ]
IT IS 4:00 PM ON TUESDAY, JUNE 23RD, 2026.UH, WILL YOU JOIN ME PLEASE FOR THE PLEDGE OF ALLEGIANCE? PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA, AND TO THE REPUBLIC FOR WHICH IT STANDS.
STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.
MADAM CLERK, CAN YOU READ THE ROLE PLEASE? MAYOR PLU.
[3.a. AB 3290 Public hearing/discussion/possible action regarding approval of a Resolution adopting the City of Sedona’s Budget for Fiscal Year 2026-27.]
WE'RE ON SPECIAL BUSINESS AB 32 90.DISCUSSION, POSSIBLE ACTION REGARDING APPROVAL OF A RESOLUTION ADOPTING THE CITY OF SEDONAS BUDGET FOR FISCAL YEAR 26 27.
I'M OPENING THE PUBLIC HEARING.
MY NAME IS TIM PERRY AND I LIVE IN SEDONA.
THE WASTE FRAUD AND ABUSE CONTAINED IN THIS $98 MILLION BUDGET STEM FROM TWO MAIN FACTORS.
APART FROM THE GENERAL GROWTH OF LENINISM WITHIN THE SEDONA CITY BUREAUCRACY.
THE FIRST OF THESE FACTORS IS COUNCIL'S PROFOUND IGNORANCE OF REAL LIFE.
IF COUNCILORS, FOR EXAMPLE, HAD EVER BUILT THEMSELVES A HOME WITH THEIR OWN HANDS, THEY WOULD REALIZE HOW EASY IT IS AND UNDERSTAND WHY THEY DIDN'T NEED A BUILDING DEPARTMENT.
IF COUNSELORS HAD EVER BUILT THEMSELVES A ROAD AGAIN, THEY WOULD UNDERSTAND HOW DOABLE THIS IS AND WHY THEY DON'T NEED A PUBLIC WORKS DEPARTMENT.
IF COUNSELORS HAD EVER CLEANED UP A PIECE OF LAND, THEY WOULD UNDERSTAND HOW EASY IT IS AND WHY THEY DON'T NEED A PARKS DEPARTMENT.
AND MY FAVORITE ONE OF ALL, IF COUNSELORS HAD EVER HAD THE GUTS TO DEFEND THEMSELVES, THEY WOULD REALIZE THEY DON'T NEED A POLICE DEPARTMENT TO PROTECT THEM FROM SOME BOOGEYMAN.
IF COUNSELORS KNEW MORE, THIS BUDGET MIGHT NOT BE SO BIG.
THE SECOND REASON THAT CONTRIBUTES TO THE GROWTH OF THE BUDGET IS COUNCIL'S PROFOUND DELUSIONS ABOUT HOW DEMOCRATIC GOVERNANCE IS SUPPOSED TO OPERATE.
AND IF WE WANT MORE EVIDENCE OF THIS, WE NEED LOOK NO FURTHER THAN THE CITY'S BALLOT PAMPHLET FOR THE UPCOMING PRIMARY ELECTION IN WHICH ALMOST EVERY SITTING MEMBER OF THIS COUNCIL HAS THE UNBRIDLED ARROGANCE AND AUDACITY TO PRESUME TO TELL THE PUBLIC HOW THEY THINK THE PUBLIC SHOULD VOTE.
AS IF YOU GUYS SOMEHOW HAD THE BEST ANSWER.
LOOK AT YOUR OWN ORGANIZATIONAL CHART.
THERE IS NO FEEDBACK LOOP THAT GOES FROM YOU BACK TO THE PUBLIC.
YOU DO NOT INFORM, YOU, DO NOT EDUCATE YOU, DO NOT INSTRUCT.
YOU ARE HERE TO TAKE DIRECTION, NOT TO GIVE IT.
YOU DO NOT HAVE THE CORRECT ANSWERS TO ANY OF THE PROBLEMS THAT FACE SEDONA.
AND IF YOU DID YOUR ATTEMPT TO IMPOSE THEM AT GUNPOINT OVER THE WILL OF THE PEOPLE WOULD BE DEMOCRATICALLY ILLEGITIMATE.
REJECT THIS BUDGET COUNSELORS, GET OFF YOUR HIGH HORSES AND GET DOWN ON YOUR KNEES IN FRONT OF THE PUBLIC WHERE YOU BELONG.
YOU ARE OUR SERVANTS AND OUR EMPLOYEES.
LEARN WHAT YOU ARE HERE FOR AND STOP SPENDING OUR MONEY.
I'LL CLOSE THE PUBLIC HEARING AND BARBARA AND STERLING, I'LL TURN IT OVER TO YOU.
GOOD EVENING, MAYOR, VICE MAYOR, COUNSELORS.
I'M BARBARA WHITEHORN, DEPUTY CITY MANAGER, AND THIS IS STERLING WEST, OUR BUDGET AND INVESTMENT MANAGER.
NOT THAT YOU DON'T KNOW WHO WE ARE, BUT OTHER PEOPLE MIGHT NOT.
UM, WE'RE HERE TO DO A SORT OF FINAL REVIEW OF THE BUDGET.
UM, THERE HAVE NOT BEEN ANY CHANGES IN THE TOTAL AMOUNT SINCE TENTATIVE BUDGET WAS ADOPTED.
WE ALWAYS REVIEW THIS IN OUR MEETINGS.
THE BOARD ADOPTION OF FINAL CFD BUDGETS WAS COMPLETED JUST BEFORE THIS MEETING, AND NOW WE'RE ON THE FINAL ADOPTION.
THERE'S AN OVERVIEW OF OUR ASSUMPTIONS THAT WENT INTO THE BUDGET.
WE ARE CONTINUING TO HOLD SALES AND BED TAX REVENUES FLAT.
WE ARE SEEING YEAR OVER YEAR INCREASES.
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UNCERTAINTY, UM, THAT SEEMS TO BE A MORE PRUDENT, UH, WAY TO MOVE FORWARD.UM, ALL THE RESERVES MEET POLICY REQUIREMENTS AND OF COURSE, OVERALL EXPENDITURES ARE REDUCED FROM FISCAL YEAR 2026, WHICH WAS PER YEAR DI DIRECTION, UM, DEBT PAYOFFS.
UM, AGAIN, YOU HAD ASK THAT ANY DEBT THAT WE WERE ABLE TO PAY OFF WITH CURRENT YEAR RESOURCES WE SHOULD DO SO.
UM, THE TOTAL COST OF THOSE, UH, THE DEBT PAID OFF WAS 948,000 WITH AN INTEREST SAVINGS OF 75,500.
YEAH, SO HERE'S THE FINAL BUDGET TOTAL.
UM, FISCAL 26 AND FISCAL 27, UM, THE DECREASE OVERALL IS 5.2%.
OPERATING BUDGET IS INCREASING 4.4%, WHICH IS, UH, 2.7 MILLION.
AND CAPITAL IS DECREASING BY 19% OR APPROXIMATELY $8 MILLION.
UM, MAJOR CHANGES IN ADDITIONS.
UM, FISCAL 26 VERSUS FISCAL 27.
WE, UM, ADDED PART OF A POSITION TO MAKE A FULL-TIME POSITION IN THE MUNICIPAL COURT.
UM, SAME WITH THE PUBLIC WORKS POSITION FOR A PEDESTRIAN BIKE COORDINATOR.
IT, WE ADDED A POSITION THERE.
AND THEN THERE IS A POSITION IN PARKS ONE OR 2 2 2 POSITIONS.
YEAH, TWO POSITIONS TO HELP THE SCHOOL DISTRICT WITH THEIR FACILITIES MAINTENANCE AND THE NEW, UM, THE NEW PROGRAMS FOR KIDS SO THAT, UM, THEY, THEY HAVE SOMETHING OUTSIDE OF WHAT'S PROVIDED BY THE SCHOOL.
AND THE CONTINGENCIES, I BELIEVE WENT DOWN SLIGHTLY.
UM, EXPENDITURES FROM THE PROPOSED THAT WAS PRESENTED TO YOU IN APRIL TO THE ADOPTED.
THIS REPRESENTS THOSE CHANGES.
AND THEN CA THESE ARE CAPITAL IMPROVEMENTS BY CATEGORY.
YOU ALL HAVE SEEN THIS, BUT WE JUST WANNA MAKE SURE THAT IT'S AVAILABLE IN EACH BUDGET MEETING FOR THE PUBLIC.
UM, FOR TOTAL CAPITAL IMPROVEMENTS FOR THE YEAR OF 34.4 MILLION, UM, WE DID HAVE TWO CAPITAL PROJECTS THAT WE'VE HAD SEVERAL PEOPLE BRING UP AS, UM, MUCH MORE MONEY THAN IS ACTUALLY IN THE BUDGET FOR THIS PROJECT.
SO WE WANTED TO JUST CALL THOSE OUT TODAY.
UM, THE WEST SEDONA INTERCEPT LOT, UM, IN THE 10 YEAR CIP RIGHT NOW HAS A HUNDRED THOUSAND DOLLARS IN IT.
IN FISCAL 28, THE EVENTUAL PLAN WAS TO POSSIBLY ADD A PARKING GARAGE OUT THERE, BUT IT WAS DETERMINED IN EVALUATING THE CAPITAL PROJECTS THAT THAT WAS AN UNLIKELY THING FOR US TO DO IN THE NEXT 10 YEARS.
SO THAT IS NO LONGER IN THE BUDGET THERE.
SO IF YOU LOOK AT LAST YEAR'S BUDGET, THERE WAS A PLACEHOLDER FOR THAT.
AND IN THIS COMING FISCAL YEAR, RATHER THIS YEAR'S BUDGET, THIS COMING FISCAL YEAR THAT IS NOT IN THERE.
THE OTHER ITEM THAT THERE WAS SOME CONFUSION AROUND, AND THIS WAS DUE TO A POORLY WORDED DESCRIPTION IN LAST YEAR'S BUDGET ITEM.
I MEAN, WE DID CORRECT THAT IN THIS YEAR'S WAS THE REAL ESTATE LAND ACQUISITION, WHICH COVERS ALL OF THE REAL ESTATE AND LAND ACQUISITION THAT PUBLIC WORKS MIGHT BE PLANNING IN 10 YEARS.
SO THAT'S A PRETTY LARGE NUMBER.
WITHIN THAT IS A $10 MILLION PLACEHOLDER FOR THE POTENTIAL PURCHASE OF THE BREWER ROAD PROPERTY THAT WE LEASE FROM THE SCHOOL.
UM, THE TOTAL FOR THAT, BECAUSE IT INCLUDES ALL THE ESTIMATES FOR PRIOR YEARS AND FUTURE YEARS IN LAST YEAR'S BUDGET WAS 49 MILLION, BUT THAT 49 MILLION WAS FOR A LOT OF OTHER THINGS AND INCLUDED PRIOR YEARS EXPENDITURES INCLUDING THE, UH, WESTERN GATEWAY PROPERTY.
SO WE CHANGED THAT, THE PRESENTATION OF THAT THIS YEAR SO THAT IT WOULD BE EASIER FOR THE PUBLIC TO UNDERSTAND WHAT THAT MEANT.
UM, WE HAVE, UH, I JUST WANTED TO GO AND BARBARA, EXCUSE ME.
WE DO NOT HAVE A NEGOTIATED PRICE FOR THE PURCHASE OF THE PROPERTY, SHOULD WE CHOOSE TO DO THAT, CORRECT? WE DO NOT.
AND ACTUALLY, THIS NEXT SLIDE THAT I'M ON, I WANTED TO KIND OF TALK ABOUT THE LEASE AND THE POTENTIAL PURCHASE SO THAT THAT WAS ANOTHER THING PEOPLE COULD UNDERSTAND.
UM, THE LEASE WAS EFFECTIVE AUGUST 1ST, 2021 WITH A 19 YEAR TERM WITH THE OPTION TO RENEW.
THERE IS AN OPTION WITHIN THAT LEASE TO PURCHASE THE PROPERTY IF THE SCHOOL DISTRICT WANTS TO SELL WITH THE EARLIEST AVAILABILITY, JULY 26TH, 2029.
SO FISCAL YEAR 30, AND IT'S IN FISCAL YEAR 30 WHERE WE HAVE THAT PLACEHOLDER.
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PRICE AT ALL.WE WOULD OBVIOUSLY HAVE THE PROPERTY APPRAISED AND, AND THE PURCHASE PRICE WOULD BE BASED ON APPRAISAL, NOT ON, YOU KNOW, OUR BUDGET PLACEHOLDER OR WHAT THEY ANTICIPATE.
UM, WE DO ALSO RECEIVE, WE PAY EACH MONTH 13,500 FOR A TOTAL OF 13,000 SQUARE FEET.
UM, AND THAT DOES ADJUST FOR CPI AND EACH MONTH WE GET A $2,000 PAYMENT CREDIT TOWARDS ANY FUTURE PURCHASE SHOULD WE CHOOSE TO DO SO.
SO I KNOW THAT WAS A LOT OF WORDS, BUT HOPEFULLY THAT HELPS TO, UH, CLEAR UP SOME OF THE CONFUSION IN THE COMMUNITY AROUND WHAT WE MIGHT DO WITH THAT PROPERTY.
AND WHAT, AND BARBARA, CAN YOU OR I CAN MENTION WHAT CITY SERVICES ARE PROVIDED OUT OF THAT BUILDING THAT IF THEY WERE NOT THERE, WE WOULD HAVE TO FIND ANOTHER HOME FOR? YES, THERE ARE TWO BUILDINGS.
THE LARGER BUILDING WHICH SITS ON THE NORTH SIDE IS THE MUNICIPAL COURT AND THE MAJORITY OF FINANCE.
THEN THE SOUTH BUILDING HAS PARKS AND RECREATION SUSTAINABILITY.
WHO ELSE IS THAT IT? ENGINEERING.
OH, SOME ENGINE ROOM, DIDN'T THEY? I DON'T THINK ENGINEERING'S DOWN THERE ANYMORE.
PARKS AND REC AND SUSTAINABILITY.
SORRY, WASN'T QUITE READY FOR THAT, BUT I I DO GO DOWN THERE A LOT.
SO THAT, THOSE ARE THE PURPOSES IN THAT, AS I RECALL WHEN WE ENTERED INTO THAT LEASE, THE, BECAUSE THE SCHOOL DISTRICT USED BONDS TO PURCHASE THAT PROPERTY, ACQUIRED THAT PROPERTY, THERE'S CERTAIN PERIOD OF TIME WHERE THEY NEEDED TO, TO MAINTAIN THE OWNERSHIP.
I THINK THE EARLIEST WAS THAT 29, RIGHT? I BELIEVE THAT'S CORRECT.
THAT THAT'S WHEN THEIR BONDS ARE PAID OFF AND THEY HAVE THE OPTION TO SELL THE PROPERTY IF THEY NEED TO.
ALL RIGHT, SO MOVING ON THEN, JUST A REVIEW OF THE DECISION PACKAGES THAT WERE APPROVED.
THESE ARE THE POSITIONS, AND THEN WE HAVE THE OPERATING DECISION PACKAGES.
AND THE TOTAL FOR ALL THE DECISION PACKAGES WAS ABOUT 2.8 MILLION WITH ONGOING OF 1.1 AND ONE TIME OF 1.7.
SO THIS IS JUST A SUMMARY OF THE BUDGET BY FUNDS.
I KNOW YOU'VE SEEN THIS OVER AND OVER.
UM, AND THEN THE RESERVES, THESE ARE THE, THE RESERVES BY POLICY, UM, THAT WE HOLD.
SO NEXT STEPS FOR BUDGET FISCAL 27 IS JUST TO CONTINUE TO MONITOR ECONOMIC CONDITIONS, MAKE SURE WE'RE STILL, YOU KNOW, ON TRACK FOR REVENUES.
UM, OBVIOUSLY WE'VE BUDGETED AS FAR AS REVENUES VERY CONSERVATIVELY TO ENSURE THAT, YOU KNOW, SHOULD WE SEE A DOWNTURN, WE WON'T BE DRAMATICALLY IMPACTED.
UM, AND STAFF WILL OF COURSE IMMEDIATELY START PREPARING FOR FISCAL YEAR 28.
UM, AND THEN FOR YOU ALL, THE NEXT STEP IS HOPEFULLY TO ADOPT THIS BUDGET.
UM, MY QUESTION IS, I BELIEVE WE GAVE DIRECTION THAT I THOUGHT AT THIS MEETING, BUT IF NOT THIS ONE, THEN SOON THAT WE WOULD HAVE A DISCUSSION ABOUT THE BUDGET METHODOLOGY THAT WOULD BE USED GOING FORWARD, INCLUDING WOULD ZERO BASE APPLY TO EVERY DEPARTMENT AGAIN, OR WOULD WE DO A SUBSET OR WOULD WE DO SOMETHING DIFFERENT THAN ZERO BASE? SO I BELIEVE THAT DISCUSSION STILL NEEDS TO OCCUR.
I SEE AT LEAST ONE NODDING HEAD REMEMBERING THAT.
SO I DON'T THINK WE WERE PLANNING TO DO IT IN THIS MEETING BECAUSE THIS IS THE TECHNICAL MEETING FOR THE FORMAL ADOPTION, BUT WE CERTAINLY ARE PLANNING TO COME BACK TO COUNCIL WITH A, YOU KNOW, PRE-SEASON BUDGET, YOU KNOW, PREP, AND YOU HAD PREVIOUSLY ASKED THAT FINANCE PROVIDE, UM, QUARTERLY FINANCIAL UPDATES.
AND THAT WOULD MAKE SENSE TO DO IT AT THAT POINT WHERE WE DO THE CHECK-IN AT THE NEXT FINANCIAL UPDATE.
I JUST WANTED TO MENTION THAT, UH, ANNETTE AND I WERE AT A MEETING LAST WEEK WITH ALL OF THE YAVAPAI COUNTY SUPERVISORS AND A LOT OF THE ELECTED OFFICIALS AT THE COUNTY LEVEL AS WELL AS THE MUNICIPALITIES.
AND BO AND STEVE KING, WHO IS OUR COUNTY EDUCATION SUPERINTENDENT LEADER, UH, THANKED US FOR, UH, HELPING THE SCHOOL DISTRICT AND THE CHAIRMAN OF THE BOARD OF SUPERVISORS THANKED US FOR HELPING THE SCHOOL DISTRICT AND SAID WE
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WERE A MODEL FOR THE REST OF THE, OF THE COMMUNITIES IN THE VERDE VALLEY AND BEYOND.SO WE GOT A BIG THANK YOU FROM BOTH OF THEM AS WELL AS OUR OWN SUPERVISOR, DICKIE JACK.
READY FOR A MOTION? MAYOR? I'D LIKE TO MAKE A MOTION TO APPROVE RESOLUTION NUMBER EIGHT EIGHT, UM, 2026 DASH EIGHT YES.
OF TO ADOPT THE CITY OF SEDONA BUDGET FOR FISCAL YEAR 26 27 AT $97,963,222 SECOND.
READY FOR A VOTE? ALL THOSE IN FAVOR? AYE.
[5. ADJOURNMENT]
CONCLUDES THIS SESSION AND WE ARE JOINED TILL FOUR 30.