Council adopts FY2025-26 budget and levies property tax; contentious pay-grade and staff amendments pass

Scottsdale City Council on Tuesday completed the two-step budget process for fiscal year 2025-26: it held public hearings on the proposed property tax levy and the municipal streetlight improvement districts (SLIDs), then adopted the final operating budget, capital improvement plan and job-classification/pay-table ordinances after a separate special-meeting action.

City Treasurer Sonia Andrews told the council the combined proposed property tax rate for FY2025-26 would be 91.2 cents per $100 of limited assessed value, down from 93.2 cents in the prior year. "Our proposed property tax rate for 25-26 combined is 91.2 cents, which is a 22.1% decrease from the current tax rate of 93.2," Andrews said, explaining that assessed-value growth and debt-service changes allowed the reduction while keeping the levy stable. The council opened and closed the public hearing on the levy and then adopted a motion to levy property taxes as proposed; a roll-call vote on the levy was recorded in the meeting record.

The council also heard staff on municipal streetlight improvement districts; Assistant City Treasurer Anna Henthorn reported the FY2025-26 SLID levy of $578,426, representing an average decrease of about 72 cents per lot from the prior year.

Later in the evening the council recessed into a special meeting for final adoption of the FY2025-26 ordinances, including Ordinance No. 4670 (final budget estimates and pay-table) and Ordinance No. 4671 (five-year CIP). Budget Director Scott Selene reviewed the totals and notable adjustments and said the proposed budget includes a police pay program (step and market adjustments), a 2% market adjustment for other employees and merit/step movement where applicable.

Adoption of the final budget, however, came after a contested exchange over recent pay-grade changes and last-minute amendments to mayoral and council staffing. Councilwoman Solange Whitehead publicly pushed for greater transparency on substantial grade increases in specific positions and asked for a public briefing about the personnel changes before final approval. "This change was made, and because we haven't had a public presentation I haven't seen any of that," Whitehead said, calling for data to support large grade moves.

During the special meeting a separate amendment, offered by Councilwoman Cathy Littlefield, removed two unfilled budgeted positions (one in the mayor's office and one in the city clerk's/council support roster) from the adopted FY2025-26 budget. The amendment passed on a 5-2 vote; members voting yes and no are recorded in the official roll call. Council members explained the change as a near-term budgetary restraint on unfilled roles, while opponents described the maneuver as ill-timed.

With the amendment the council adopted the final budget and the five-year CIP ordinances and set salary tables tied to the adopted classification plan. City staff indicated the budget includes funds for market and longevity adjustments and that the Thompson Peak Bridge capital timing was adjusted in the five-year plan (moved between CIP years without affecting the five-year total). The council also authorized the city to levy the proposed property taxes by ordinance on June 24, 2025, at the rates discussed.

City staff said next steps include final ordinance publication and regular budget monitoring; personnel changes tied to the classification and compensation plan will be implemented by charter officers in accordance with adopted pay tables and city rules.