Phoenix presents FY2026 trial budget after March vote raising sales tax; plan adds fire staffing, homelessness support and $5.6M for water plant

City of Phoenix staff presented the proposed fiscal year 2026 trial budget at a public hearing that reviewed revenue pressures, service priorities and next steps in the adoption calendar.

The presentation follows a City Council vote on March 18 to increase the transaction privilege tax (TPT) rate from 2.3% to 2.8%, effective July 1, 2025, a change the city says will generate revenue to support programs and services. The trial budget will be formally presented to the council on May 6, with a council vote scheduled for May 21 and legal adoption expected in June; the property tax levy ordinance is scheduled for early July.

The trial budget, described in a city video shown at the hearing, frames the city's finances as three main account types: the general fund (core services such as libraries, parks, police and fire), enterprise funds (water, airport, solid waste) and special revenue funds (grants and voter-allocated taxes). The presentation said state policy changes have reduced city…