Greetings!  

As your town manager, I have been working with our Town Council and finance team to put together the annual budget for the 2026-27 fiscal year.  Our fiscal year coincides with that of the State of Arizona, commencing on July 1st of each year and ending on June 30th.  The Town of Tusayan remains in great shape financially, as evidenced through a very good audit report, strong fund balances, and sound fiscal policies.  

The financial horizon presents some interesting challenges, however, as we plan for some very important capital improvements that will benefit the Tusayan community.  These projects have been discussed for some time now.  They cannot be capitalized with existing revenues.  The prioritized projects can be summarized as follows:

•  The new Town Hall facility, which will be constructed right in town on Hwy 64 (the vacant parcel has been purchased by the town, and we are currently underway with architectural services).  This new facility will provide a permanent home for the town organization and will include significant community space for various functions and non-profit services.  This is important insofar as the town does not currently own the land where the existing town hall exists.
• Expansion of the Sports Complex.  The added multi-use facilities are being discussed in partnership with the Grand Canyon Unified School District and will follow the recommendations as identified in the Sports Complex Master Plan, meeting the local needs of our residents and students.  
• Flood Control and Mitigation Improvements.  These improvements, as identified within the Tusayan Drainage Master Plan, are now at 30% design.  The overall cost and complexity of these improvements will require phased development over many years, utilizing federal and state funding opportunities.  The Town of Tusayan will need to establish a dedicated fund to help meet local cash match obligations and some property and easement acquisitions. We are working in conjunction with the Coconino County Flood Control District in pursuing these critical improvements.

To fund these important improvements, the town is considering a municipal bond issuance that will be secured by a new revenue source involving a TPT (sales tax) increase.  The current town sales tax is set at 2%.  Various options are being discussed, which may include raising this amount to either 3% or 4%.  The additional revenues will be placed into a capital fund to be used for these projects.  Bear in mind that a sales tax adjustment of this sort will not impact the purchase of food for home consumption.  

The Tusayan community has an existing sales tax base that is very competitive with other local governments throughout Arizona.  Even with some upward adjustment to pay for these projects, we will remain competitive.  

The next discussion on this topic will take place at a special Town Council meeting on Friday, May 29th, at Town Hall, starting at 1pm.  We would love to hear from you on this very important topic.

We will be placing this summary, along with a series of slides that graphically depict these strategies, and a summary list of sales and lodging tax for all municipalities throughout Arizona, on the town's website homepage, for your reference.  Thank you!