Phoenix adopts FY2025–26 operating, capital and reappropriated budgets after truth‑in‑taxation hearing

The Phoenix City Council held a truth‑in‑taxation public hearing on June 13 and subsequently adopted the city’s final budgets for fiscal year 2025–26. After a public hearing in which one speaker criticized the proposed tax increase and questioned its ability to address Fire Department response‑time shortfalls, the council recessed the regular meeting and convened a special session to adopt the budgets.

Vice Mayor O’Brien moved to adopt the FY2025–26 operating funds budget (Ordinance S52048) and the motion passed on a roll call vote. The council then adopted the FY2025–26 capital funds budget (Ordinance S5204) and the FY2025–26 reappropriated funds budget (Ordinance S52049) by roll call votes. Several council members recorded votes of “no” on parts of the package or asked that their votes be noted; the record shows at least one explicit “no” on the operating budget during discussion. The final tallies reported for the major budget votes were consistent with the published roll calls in the meeting minutes.

Council debate included statements from members concerned about funding priorities. Councilwoman Hernandez explained why she opposed portions of the operating budget, saying it did not “prioritize many of the things that community members have continuously advocated for” and raised concerns about investments in public safety, alternatives to policing and support for migrant communities. Other councilmembers thanked staff and community participants for the budget process and highlighted continued work with state budget developments.

What’s in the budgets: The adopted operating and capital budgets encompass city programs and capital investments for FY2025–26; the council passed the required reappropriation ordinance to close the prior fiscal year and proceed with the annual audit. Specific line‑item allocations and program funding levels were contained in the ordinances and staff materials published with the agenda.

Implementation and next steps: The council directed staff to proceed with implementation of the adopted budgets and to continue reporting on budget‑related items as the state finalizes its own budget. Members asked staff and departments to monitor the impacts of the budgets on service delivery and to return with additional information as needed.