The Cottonwood City Council received a presentation on budget survey results and fiscal year 2026 accomplishments from Financial Services Manager Kirsten Lennon at its regular meeting on May 5.
This was the first year the city conducted a budget survey to determine what residents want to prioritize in the next fiscal year’s budget. The survey received 59 responses with the majority from residents aged 56 to 65.
When asked what priorities the city council should focus on in the upcoming budget, the biggest priority was economic development, growth and housing. This was followed by recreation opportunities, improving wastewater access and services, police and fire infrastructure and street maintenance and sidewalks.
Lennon said responses were positive overall, with 30% of participants answering that the quality of life in Cottonwood is very good, and 51% said the quality of life is good. For city services that could be emphasized, participants highlighted housing, the library and airport.
FY26 Accomplishments
Lennon listed accomplishments that the city achieved during FY26 organized by the strategic pillars that the council created during their strategic retreat.
For the pillar of fiscal optimization, the city:
- Initiated a PFAS pilot study and designed solution to remove PFAS from the water
- Will complete a water and wastewater rate study by the end of the year
- Received the GFOA Distinguished Budget Presentation Award in FY26 and annual Comprehensive Financial Reporting Award in FY25
For investing in existing assets, the city:
- Fully repaved Main Street and did sidewalk improvements
- Expanded city facilities with the purchase of a future city hall location
For collaborating on shared goals, the city:
- Hosted business workshops and events
For meeting residents where they are, the city:
- Launched the City Snapshot newsletter and developed the State of the City event
- Expanded senior programming and community engagement under Parks and Recreation
For balancing a sustainable community with quality of life, the city:
- Secured a grant for phase 2 of the Riverfront Park Loop Trail
For governance and organizational effectiveness, the city:
- Initiated records digitization with the city clerk
- Advanced the Old Town Master Plan
Goals for FY27 include implementing the PFAS removal system, complete trail system connections between Blowout Wash and Riverfront Loop, complete Mingus Wastewater Treatment Plant aeration and treatment improvements, install arsenic treatment units, host literacy outreach events at the library and increase community participation in the budget process.
Budget Process
The city is required to adopt a tentative budget by the third Monday of July each fiscal year. The tentative budget sets the expenditure limit that is adopted by the council and can be increased, but not decreased, when adopting the final budget. For FY27, the estimated total budget is $151,920,655, and $60,152,250 of that is in the city’s general fund.
Lennon discussed the factors that the city accounted for while developing the budget, like the effect of increased prices on services and equipment, what capital projects the city plans on doing next year, fund balance and reserves and legislation that limits revenue collection. Lennon said that various bills passed in recent years have limited what the city can charge as far as sales tax.
The city also factors in state shared revenues, which have continued to decrease, as well as federal tax policy, regulations and grants.
Lennon said changes at the federal level affect what grant funding the city can receive. These factors determine what the city’s revenues will be and what expenses it can afford during the next fiscal year.
This presentation kicked off two days of work sessions on the proposed budget. On Thursday, May 7, the council held a work session on the general fund and capital overview, and on Friday, May 8, a work session was held to discuss enterprise and special revenue funds.
