1-17-001-0001    CASH BASIS FUND:

1-17-001-0002    CLAIMS AND DEMANDS:





1-17-001-0001 CASH BASIS FUND:

There is hereby established a permanent revolving fund to be known as the "Cash Basis Fund" for the purpose of putting the payment of the running expenses of the City on a cash basis, pursuant to the provisions of the City Charter.1

From the money collected from the annual tax levy and from the money received from other sources, a sum equal to not less than two and one-half cents ($0.025) on each one hundred dollars ($100.00) of assessed value of said property shall be placed in said Fund until the accumulated amount of such Fund shall be sufficient to meet all legal demands against the Treasury for the first four (4) months or other necessary period of the succeeding fiscal year.

The Council shall have power to transfer from the Cash Basis Fund to any other fund or funds such sum or sums as may be required for the purpose of placing such fund or funds as nearly as possible on a cash basis.

(Ord. 466, 9-8-59)

1A.R.S. 38-741 et seq; 38-841 et seq.

1-17-001-0002 CLAIMS AND DEMANDS:

A.    Procedure Established: There is hereby established a procedure for the processing of claims and demands, other than salaries, for indebtedness against the City as follows:1

1.    Every person having a claim against the City, except for salaries, shall present such claim in writing for payment to the City Manager. The claim will state in detail what the claim is for, specifying each item payment is claimed for and the amount and date of City’s indebtedness. The City Manager may require such additional forms and information as he deems necessary and as approved by the Council.

2.    No demand shall be allowed in favor of any person who is indebted to the City without first deducting such indebtedness.

3.    Upon the payment of such indebtedness by warrant or check, the recipient or assignee thereof, upon endorsing the warrant or check acknowledges that he has received payment for that which the check or warrant is intended to make payment, less any authorized retention of funds which might be retained by the City.

4.    Upon presentation of the claim by the City Manager to the Treasurer, warrant shall be issued by the Treasurer in favor of the claimant. Claims presented as provided by preceding sections shall be filed with the Treasurer.

5.    A City warrant shall be delivered to the payee or his assignee, executor or administrator, and shall be considered as a check upon the City depository for the amount therein specified. No funds shall be drawn from the City depository except upon a warrant duly signed and endorsed. When same is returned from the depository as paid, they shall be filed by the Treasurer in the records of his office and shall constitute a credit in his favor for amount therein stated in all settlements of accounts within the City. (Ord. 480, 12-8-59)

B.    Salaries Not Included: Nothing herein shall be held to apply to demands for official salaries which shall be considered as due and payable upon approval of the department and/or division heads’ time sheet as approved by the City Manager. (Ord. 480, 12-8-59; amd. Ord. 1463, 8-19-86)

1Charter Art. VI, sec. 3


A.    Definitions:

1.    ACTIVE DEPOSIT means a public deposit payable or withdrawable in whole or in part on demand including, but not limited to, a checking account.

2.    INACTIVE DEPOSIT means a public deposit which is not payable on demand including, but not limited to, the deposit of City funds in certificates of deposit.

B.    Award of Active Deposit of City Funds:

1.    The City Treasurer shall provide for the deposit of the active funds of the City of Flagstaff in one or more corporations located either within or without the corporate limits, which is authorized to engage in the banking business pursuant to A.R.S., section 6 201.

2.    The Treasurer shall submit an annual report to the City Council indicating the name or names of the banking institutions where City funds are on active deposit. (Res. 1014, 1-18-77)

C.    Award of Inactive Deposit of City Funds:

1.    The Treasurer shall give notice to each public depository within the corporate limits and, in his discretion, to any other public depository in the State of the amount of City funds available for inactive deposit, the period of time such funds will be deposited and the time bids will be accepted. Such notice shall be in writing unless the Treasurer determines that the amount of time necessary to prepare and transmit such notice in writing may result in a loss of interest earnings, in which case notice shall be by telephone or other appropriate means.

2.    The Treasurer shall award the bid to the public depository offering the highest rate of interest provided such interest rate is not less than rates available on other eligible investments of like term.

3.    If the depository offering the highest rate of interest has bid or is eligible for only a portion of the funds, the Treasurer shall award that portion to such depository and the remaining portion shall be awarded to the depository bidding the next highest rate of interest.

4.    In the case of tie bids, the Treasurer shall award the inactive deposit to the financial institution with the lowest ratio of public deposits in relation to its capital structure. The public depository shall be responsible for submitting documentation of such ratio and the Treasurer shall have the right to rely on the accuracy of such documentation.

5.    The Treasurer shall prepare a report on each award of inactive deposits specifying the public depositories notified, the rate of interest bid by each and the depository or depositories to which the deposit was awarded and shall submit the report to the City Manager.

6.    The Treasurer may invest and reinvest inactive deposits in securities and deposits as provided in this Section. The Treasurer shall determine the length of time for inactive deposits. Eligible investments are:

a.    Certificate of deposit in eligible depositories.

b.    Securities acceptable as collateral for public deposits per section 35-323, Arizona Revised Statutes, with the specific exception of first mortgages and trust deeds which are not eligible investments.

c.    Repurchase agreements secured by eligible investments.

d.    Deposits in the local government investment pool operated by the Treasurer of the State.

7.    The Treasurer shall keep in his possession, for not less than two (2) years, all bids received.

8.    The Treasurer shall require collateral for all deposits as provided in section 35-323, Arizona Revised Statutes.

9.    The City Council reserves the right through its Treasurer to reject any and all bids.

10.    Nothing in this Section shall be interpreted in such a manner that would prohibit the City from receiving the highest rate of interest on investments as long as the bidding and collateral requirements are met. (Ord. 1363, 5-7-85)


The maximum amount of a single construction improvement to be performed directly for one project for the City is fifteen thousand dollars ($15,000.00), and as stated by the City Charter, such project is exempt from the notice and bidding requirements. This limit of fifteen thousand dollars ($15,000.00) applies only to the labor and overhead cost where materials used are purchased by competitive bids. (Ord. 1156, 5-19-81)


A.    The following procedures are prescribed for purchasing supplies, materials and equipment from the Mayor and any member of the City Council:

During each fiscal year commencing with the 1986-87 fiscal year the City may purchase supplies, materials and equipment from the Mayor or any member of the Council without using competitive public bidding procedures if the amount of a single transaction does not exceed three hundred dollars ($300.00). The separate, individual total of any transactions in the fiscal year for each member of the Council or for the Mayor shall not exceed one thousand dollars ($1,000.00).

B.    In this Section, "purchasing agent" means the person authorized by the Manager to act on behalf of the City when procuring supplies, materials and equipment for public use.

The purchasing agent shall keep separate, up-to-date records of all purchasing transactions with the Mayor and each member of the Council. These records shall be public and shall include the date, amount and nature of each transaction. The purchasing agent shall be responsible for ensuring that the cost of a single transaction made pursuant to this Section does not exceed three hundred dollars ($300.00) and that the total of such transactions in any fiscal year with the Mayor or each individual Councilmember does not exceed one thousand dollars ($1,000.00). Any purchasing transaction with the Mayor or a member of the Council that exceeds these limits shall only be made by public competitive bidding procedures.

C.    The provisions of this Section shall be cumulative and supplemental to the provisions of the City Charter or ordinances governing purchases. (Ord. 1465, 9-16-86)


A.    Purpose: The purpose of this section is to provide procedures for claims for compensation made pursuant to A.R.S. § 12-1134.

B.    Definitions: As used in this section, unless the context requires otherwise:

1.    "Affected property" means the private real property or any interest therein that is alleged to have suffered a reduction in fair market value as a result of a land use law and for which a property owner seeks just compensation.

2.    "City" means the City of Flagstaff.

3.    "Claimant" means the present owner or owners of the affected property or any interest therein who submits a claim for compensation under Subsection 1-17-001-0006(C).

4.    "Fair market value" means the most likely price estimated in terms of money which the land would bring if exposed for sale in the open market, with reasonable time allowed in which to find a purchaser, buying with knowledge of all the uses and purposes to which it is adapted and for which it is capable.

5.    "Just compensation" means the sum of money that is equal to the reduction in fair market value of the property resulting from the enactment of the land use law as of the date of enactment of the land use law.

6.    "Land use law" means any statute, rule, ordinance, resolution or law enacted by the City that regulates the use or division of land or any interest in land that regulates accepted farming or forestry practices.

7.    "Owner" means the holder of fee title to the subject real property.

C.    Claims for Compensation: Within 180 days of a land use law’s effective date, an owner of an affected property wishing to make a claim against the City under A.R.S. § 12-1134 shall first submit a written demand for compensation to the City Clerk. A written demand for compensation shall comply with all the notice of claim requirements of A.R.S. § 12-821.01 and shall include:

1.    Identification of the affected property. Identification may be by street address, subdivision lot number, or any other information that identifies the property;

2.    The name and contact information of the person making the claim, the date the claimant acquired ownership of the property or interest therein.

3.    Identification of the land use law that is alleged to restrict the use of the affected property;

4.    The amount claimed as compensation and the basis for such amount, including the fair market value of the property both before and after enactment of the land use law alleged to restrict the use of the affected property.

D.    Staff Recommendation: City staff shall prepare a report analyzing the claim. The staff report shall be reviewed by the Community Development Director and the City Manager before being submitted to the City Council. Staff may discuss options with the claimant and may enter into a settlement agreement with the claimant as to actions within staff’s authority. Staff may agree with claimant that staff will recommend a particular course of action the City Council if staff lacks authority to commit to the action.

E.    City Council Determination: Within 90 days of filing the claim the City, the City Council shall make a determination whether to deny the claim, pay compensation, modify or rescind the land use law or its application to the claimant’s property. The Council’s determination shall be made in writing and a copy shall be provided to the claimant. Any rescission or modification of the application of a land use law to an affected property shall be recorded against the property in the Coconino County Recorder. If the City Council fails to make a determination on the claim, the claim shall be deemed denied.

(Ord. No. 2010-12, Amended 05/19/2010.)