The Town of Carefree Town Council adopted Resolution 2025‑14 on the fiscal year that begins July 1, 2025, approving the town's proposed expenditures for 2025–26 after a public hearing and discussion of reserves, capital projects and potential grant funding.

Town staff presented the budget and told the council the town is in a strong fiscal position. “This is our budget dashboard. The Town's fiscal position remains very healthy with a projected operational surplus for this next fiscal year ranging anywhere between $700,000 to more than $2,000,000 depending upon the performance of our local sales tax and interest on the town's investments,” said Gary Neese, a town staff member who led the presentation. He added the town's capital reserves are sizable and the town continues to invest in aging infrastructure.

The hearing drew one public speaker, Helen Hong, who pressed the council on the size of the reserves and the town's ability to pay existing water‑related debt. “How are we gonna pay for this when we're already starting to draw out from our savings? That's my biggest concern,” Hong said.

Why this matters: the budget funds road work and public safety, the town's two largest spending categories, and sets how much the town will draw on reserves for planned capital projects. Staff said two subdivisions on the town's eastern edge will receive pavement replacement after more than 60 years of service, and that preventative maintenance has extended pavement life but structural work is now required.

Key facts and figures discussed at the hearing include: audited reserves reported previously at $18,977,499 and current capital reserves presented as $15,000,000; a recent pavement project (mill and overlay on Tom Darlington and a section of Cave Creek Road) that staff said cost approximately $3,000,000; local sales tax revenue used in projections based on a five‑year average of about $5,320,000 versus last year's actual of roughly $6,400,000; town operational revenues presented at about $8,500,000 and projected expenses near $7,700,000; staff said investment interest added roughly $500,000 in recent years; and two‑thirds of the proposed funds were allocated to public safety and infrastructure in the proposed budget presentation.

Councilmembers asked for clarifications on several items. One councilmember noted that the budget document still lists a MAG EV Phase 2 grant for $400,000 and asked whether it should be removed after being told the grant was canceled; staff said it remains as a placeholder in case funding is later activated and would come back to council for acceptance if received. Council members also compared legal costs with neighboring Cave Creek and were told by staff that an apples‑to‑apples comparison is difficult because Cave Creek's budget includes larger enterprise funds such as a water company and associated debt service.

On financing, staff explained options listed in the budget document (including bonds) are illustrative policies and not immediate plans. Staff clarified general obligation bonds would require a public vote while some revenue bonds may not. The staff presentation also noted the town uses conservative revenue forecasting (a five‑year average) when preparing the budget.

After the public hearing closed, a motion to approve Resolution 2025‑14 was made, seconded by Councilwoman Ross, and passed unanimously. The resolution declares the proposed expenditures the town's official budget for fiscal year 2025–26 and takes effect for the fiscal year beginning July 1, 2025.

The council also noted plans for an upcoming zoning ordinance comprehensive update with public outreach to mirror the town's general plan process. Staff said the town held five public meetings during budget development, recorded them and posted materials online; staff reported the budget videos were viewed about 450 times and the draft budget was opened about 250 times.

The council adjourned following the vote.