Summary

City Council Budget Workshop I: FY2027 budget presented; no formal action taken

PrescottApr 27, 20263 min read

At a glance

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On April 27, 2026 the Prescott City Council held Workshop I on the proposed FY2027 budget. Finance presented a balanced budget (except Solid Waste Fund) and reviewed revenue assumptions, capital funding sources, personnel changes, and department-level expenditures. Key proposals included a 1.2% COLA plus up to 5% merit increases, a 6% police pay increase in addition to COLA and merit, new positions (including an Emergency Manager), health insurance cost-sharing adjustments, and capital/maintenance priorities for facilities, utilities, IT and tourism/economic development. The total proposed FY2027 budget is $311,930,906. The item was for discussion only and no formal action was taken.

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City Council

Topics discussed

TransportationBudget & TaxPublic SafetyCommerceUtilities

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Key decisions

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Council received presentation of the proposed FY2027 budget (Total Budget: $311,930,906); item was discussion-only and no formal action was taken.
FY2027 budget summary presented: Operating Budget $156,099,981; Capital Budget $145,830,925; Contingency $10,000,000.
General Fund proposed totals presented: Operating Revenue $62,089,741; Total General Fund $83,763,215; proposed property tax levy $2,492,987 (rate 0.2374 per $100 assessed) with Truth in Taxation timeline outlined.
Compensation proposals: 1.2% COLA (based on Phoenix Metro CPI) and up to 5% merit increases; continued market compensation plan; Police officers proposed 6% pay increase in addition to COLA and merit; trial hiring bonuses for recruitment.
Health insurance: employer to absorb majority of a 19% premium increase with cost-sharing implemented on the basic tier; city to use excess revenue/fund balance to replenish Yavapai Combined Trust reserve ($1,041,286.80 between FY26 and FY27).
Capital and maintenance priorities identified including deferred maintenance program for facilities, Sundog Wastewater Treatment Plant and water tank/infrastructure maintenance, IT cybersecurity and Regional Communications support, and economic development/tourism initiatives.
Personnel changes and new positions presented across departments including Court, Recreation, Public Works, Police (four officers), and a new Emergency Manager position.

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Meeting information

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Budget Workshop I

Apr 27, 2026, 1:00 PM201 N Montezuma Street, Council Chambers, 1st Floor, Prescott AZ 86301completed

Agenda

1. CALL TO ORDER
2. ROLL CALL
3. DISCUSSION
A. Presentation & Discussion Regarding the Fiscal Year 2027 Budget Workshop I.
This item is for discussion only. No formal action will be taken. | attachments=1 | reports=1
Decision: DISCUSSION
4. ADJOURNMENT