After a couple tweaks here and there, the Sedona City Council approved the Fiscal Year 2019-20 budget with a slight decrease from what was projected. 

The 6-1 vote came during a special public hearing on Tuesday, June 25, prior to the regularly-scheduled council meeting. 

No one from the public requested to speak. In fact, no one from the public came out for the meeting. 

The final proposed budget of $51,416,630 reflects a $130,600 reduction from the tentative budget adopted on May 28, a city report states. The change is a result of an adjustment to the Tourism Management & Development program. The budgeted amount for the Sedona Chamber of Commerce and Tourism Bureau’s contract has been reduced to $2,492,500, which leaves a balance of $130,600 to tourism management and development. 

As directed by council, this balance of $130,600 has been reflected as a transfer from the General Fund to the Capital Improvements Fund to cover a portion of the costs related to the potential transit project. 

The 2019-20 budget reflects an 8% increase over the current year’s. 

Councilman John Currivan was the lone dissenting vote, stating that he was opposed to the amount transferred into the affordable housing fund since there is no plan as of now in terms of how it will be used. 

Vice Mayor John Martinez said he, too, is concerned about the amount put into the affordable housing fund but added that his concern wasn’t great enough to vote against the budget’s approval. 

The budget, according to the report, includes a significant investment in the priorities established in the Community Plan. This includes transportation improvements; land use planning of Community Focus Areas; investment in infrastructure to maintain the city’s roads and streets; preservation and improve¬ment of the city’s parks; affordable housing program funding; and economic diversification program funding. 

The most significant changes include: 

• An increase in the Affordable Housing Fund of $1.9 million to be spent pending further analysis and direction from council regarding the strategies that will be employed for addressing affordable housing concerns. 
• An increase in the capital improvement projects of $1 million due to a placeholder for land acquisition for park and ride and/or transit hub facilities and/or rights of way pending further analysis and direction from council regarding potential transit services. 

In terms of the major funding sources in the next fiscal year, 39% [$21,245,800] will come from city sales taxes, 16% [$8,472,823] from charges from services, 11% use of capital funds balances [$6,075,094] and 9% from bed taxes [$4,769,300]. 

“I think what is important to mention is that every dollar we’re spending either has a new revenue source behind it or spends excess revenues from previous years after we account for all fund balances and numerous other current and future liabilities, including pension costs, building, fleet and equipment replacement, etc.” City Manager Justin Clifton said in May, the day after the tentative budget was approved. “In other words, we’ve prioritized maintaining a very strong financial position first, and only then spending what is left over on these other important community priorities.” 

As far as expenditures, $29,163,000 will be spent on personnel and operations, another $13,954,000 on capital improvement projects, $5,730,000 for debt services [bond payments] and $2,700,000 on contingences. 

Ron Eland can be reached at 282-7795, ext. 122 or by email at reland@larsonnewspapers.com