Phoenix presents $11.5 billion five‑year capital plan and a trial budget that would rely on a 0.5‑point sales‑tax increase to close a $39 million shortfall

The Phoenix City Council received an overview on March 18 of a proposed $11.5 billion, five‑year Capital Improvement Program and a city manager's trial general fund budget that shows a $39 million shortfall for fiscal year 2025-26.

The presentation, delivered by Amber Williamson, budget research director, and Chris Fazio, deputy director, laid out funding sources and specific program totals and framed a proposed package of strategies that staff say would balance next year's budget if the council approves a 0.5 percentage‑point increase in the city's transaction privilege and use tax (TPT), from 2.3% to 2.8%, effective July 1, 2025.

The CIP and trial budget matter because they set near‑term spending on infrastructure and operating priorities while the council must close a projected structural shortfall that staff say is largely the result of recent state legislation that reduced local revenues.

The CIP totals $11.5 billion over five years, with $2.5 billion proposed for the next fiscal year. Major programs identified include water, aviation, wastewater, transit, street transportation and drainage; the CIP also incorporates projects recommended by the Citizens Bond Committee for the $500 million general obligation bond program approved by voters in November 2023. Williamson said schedule 7 of the preliminary CIP document provides a detailed bond breakdown and that the phoenix.gov/bond site will be updated with project status information.

Breaking the CIP into funding sources, staff described the next fiscal year and five‑year composition as including: $180 million from the general fund, $387 million from the…