1. City of Flagstaff – GFOAZ – October 21, 2011

2. General Fund Revenue Overview (in thousands)

3. Proposed New Taxes/Fees

5. General Fund Revenues  Sales tax options  Use tax – no  Medical marijuana taxation - no  User fees - no  Primary property taxes  Maintained revenue; allowed statutory increase  Franchise fees  Voter increase May 2010 for APS  Interest earnings  Outsourced investing

6. Expenditures  Salary reduction of 1.2%  No salary increases for 3 fiscal years  Benefit decreases  Loss of 121 positions (13%)  General fund  19% decrease FY2010  6% decrease FY2011  2% decrease FY2012 – eliminated structural deficit

7.  Grants  $2.2 M in FY08; $3.4 M in FY12  State shared revenue  1.26% FY11; 1.31% FY12  Renewed economic interest  Aspen Sawmill project  November 2010 bond election  $16.5 M Street/Utility project  $4.72M Public Safety radio Success!

8. Thank you! Barbara Goodrich City of Flagstaff 928-213-2205 bgoodrich@flagstaffaz.gov