Coconino County kicks off fiscal year 2027 budget hearings with focus on economic volatility

Slower sales tax growth prompts conservative budget outlook

County property tax rate to decrease, but homeowners may still see higher bills

Supervisors weigh future tax measures to fund aging infrastructure

Board considers 2.5 percent pay raise for county employees amid rising premium costs

County manager trims department hiring requests to balance budget

County pension debt strategies yield millions in taxpayer savings

Declining Grand Canyon visitation prompts economic concerns for county

Supervisors advance $2.2 million direct distribution to rural schools

Coconino County kicks off fiscal year 2027 budget hearings with focus on economic volatility

COCONINO COUNTY, Ariz. - The Coconino County Board of Supervisors opened its fiscal year 2027 budget hearings Monday, emphasizing financial stability amid ongoing economic uncertainty. County officials highlighted that sales tax revenues account for roughly two-thirds of the county's general fund, making the budget highly susceptible to economic downturns. To combat potential shortfalls, the county plans to maintain its $15 million stability fund and rely on baseline revenue projections rather than spending temporary, post-pandemic windfalls on recurring operating expenses.

Slower sales tax growth prompts conservative budget outlook

COCONINO COUNTY, Ariz. - After years of unprecedented, pandemic-fueled revenue spikes, Coconino County's sales tax growth has begun to flatten, experiencing negative growth in early 2026. Finance officials have adjusted the county's baseline revenue projections to account for persistent inflation and slowing consumer spending. The county's fiscal year 2027 budget will rely strictly on this adjusted baseline, ensuring core services are shielded from future economic contractions and a potential structural deficit.

County property tax rate to decrease, but homeowners may still see higher bills

COCONINO COUNTY, Ariz. - Despite having the lowest primary property tax rate in Arizona, Coconino County's property tax rate will decrease again for fiscal year 2027 under Arizona truth-in-taxation laws. However, property owners will likely still see a slight increase in their tax bills due to rising assessed property values and a 2 percent allowable inflationary levy increase. For a sample home with an estimated market value of $649,000, the primary property tax portion of the bill is projected to increase by approximately $36 annually.

Supervisors weigh future tax measures to fund aging infrastructure

COCONINO COUNTY, Ariz. - Facing a growing backlog of facility maintenance and capital needs, the Coconino County Board of Supervisors initiated a discussion on potential future revenue streams, including voter-approved bonds or tax overrides. County officials warned that recurring revenues are not keeping pace with mandated expenditure growth, leaving no general fund capacity for major building renovations or new construction. While no immediate action was taken, the board acknowledged that addressing security and space concerns in the Coconino County Superior Court and other aging county facilities will likely require a future public vote.

Board considers 2.5 percent pay raise for county employees amid rising premium costs

COCONINO COUNTY, Ariz. - Coconino County employees could see a 2.5 percent compensation increase in the upcoming fiscal year, while law enforcement personnel would receive a 4 percent step increase under Coconino County Manager Andy Bertelsen's proposed budget. The proposed raises aim to offset a 6 percent increase in medical insurance premiums and keep the county competitive with Flagstaff's rising minimum wage. Human resources officials noted that the county's strategic grade adjustments and previous pay increases have successfully reduced overall employee turnover to below 16 percent.

County manager trims department hiring requests to balance budget

COCONINO COUNTY, Ariz. - In an effort to maintain a structurally balanced budget, Coconino County Manager Andy Bertelsen's office recommended approving only five new regular full-time positions for fiscal year 2027, drastically cutting the 30 new positions requested by various departments. Instead of adding recurring personnel expenses, management is advising the use of three-year, limited-term positions funded by one-time dollars. This compromise is designed to help departments address backlogs in areas such as the Coconino County Assessor's Office and the criminal justice system without saddling the county with long-term financial commitments.

County pension debt strategies yield millions in taxpayer savings

COCONINO COUNTY, Ariz. - Coconino County's pension management strategy has produced major long-term savings. By issuing debt at lower interest rates prior to recent national rate hikes and investing the funds, the county's Public Safety Personnel Retirement System account is fully funded or slightly above full funding. According to county finance records, Coconino County issued $18 million in PSPRS bonds in 2021 to produce an estimated $15 million in present-value savings. A similar strategy utilized in 2022 to address the Arizona State Retirement System unfunded liability involved the issuance of $52.5 million in taxable pledged revenue obligations, locking in lower fixed payments and producing long-term taxpayer savings over the life of the debt repayment.

Declining Grand Canyon visitation prompts economic concerns for county

COCONINO COUNTY, Ariz. - A recent drop in visitation to Grand Canyon National Park has raised concerns among county officials regarding future tourism-driven revenues. During the economic outlook presentation, officials noted that according to National Park Service data, the Grand Canyon ranked as the fourth most-visited U.S. national park in 2025 with 4.43 million recreation visits, reflecting a year-over-year decline in total visits. In addition to broader travel-pattern shifts, including fewer international travelers, officials pointed to ongoing infrastructure challenges such as Transcanyon Waterline breaks. Because the county's sales tax base relies heavily on point-of-sale tourism transactions, officials said they are monitoring these trends closely to adjust long-term revenue forecasts.

Supervisors advance $2.2 million direct distribution to rural schools

COCONINO COUNTY, Ariz. - The Coconino County Board of Supervisors will expedite the distribution of over $2.2 million in Secure Rural Schools funding directly to local school districts, bypassing previous county administrative holdbacks. County education officials stated the immediate release of funds is critical following delays at the federal level, noting that the money is desperately needed by rural districts simply to meet essential summer payroll expenses and maintain financial solvency. The funds will be distributed based on a formula weighing student enrollment and district acreage.

Found a mistake? Have a news tip or feedback to share? Contact our newsroom using the button below:

Contact Us