City Manager Jeff Barton presents $6.9 billion budget for fiscal year 2025-2026

The Phoenix City Policy Meeting held on May 6, 2025, focused primarily on the presentation of the proposed budget for the fiscal year 2025-2026. The meeting began with acknowledgments from city officials regarding the kickoff of Heat Awareness Week, emphasizing the importance of community preparedness as summer approaches.

City Manager Jeff Barton introduced the budget presentation, highlighting the challenges posed by reduced state and federal resources, as well as declining consumer spending impacting sales tax revenues. He commended the council for their leadership in navigating these financial difficulties while aiming to preserve essential services for residents.

Amber, the budget presenter, outlined the proposed operating budget of $6.9 billion, detailing its composition: 32% from the general fund, 33% from special revenue funds, and 35% from enterprise funds. The general fund, which supports core services such as police, fire, parks, and libraries, is projected at $2.2 billion for the upcoming fiscal year. Key revenue sources include local sales and excise taxes, state shared revenues, and property taxes.

The presentation also addressed a projected deficit of $39 million, attributed to state actions affecting rental taxes and income tax rates, alongside rising operating expenses. The budget includes significant allocations for public safety, particularly for the Phoenix Fire Department, aimed at improving emergency response times and addressing homelessness.

Barton discussed strategies to mitigate revenue losses, including an increase in the transaction privilege tax rate and the approval of an excise tax bond sale dedicated to public safety. The city manager emphasized the need for ongoing budget adjustments to accommodate new projects and maintain service levels amid economic uncertainties.

The proposed budget also includes a one-time surplus of $17 million, which Barton recommended setting aside to ensure fiscal stability. Additional funding requests from residents were noted, particularly for fire department resources, eviction legal assistance, and improvements to libraries and parks.

The meeting concluded with a timeline for budget adoption, with the council set to vote on May 21, followed by tentative and final budget adoptions in June. The city aims to finalize the budget process by July, including the property tax levy adoption. Overall, the meeting underscored the city's commitment to addressing community needs while navigating financial challenges.