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Mesa council approves Fiscal Year 2025-26 budget despite five‑year deficit forecast
Summary
The Mesa City Council approved the Fiscal Year 2025‑26 budget and secondary property tax levy 6‑1 after debate over projected multi‑year deficits, use of reserves and recent revenue losses tied to state tax changes and a drop in residential rental tax.
Mesa — The Mesa City Council approved the city’s Fiscal Year 2025‑26 budget and secondary property tax levy in a 6‑1 vote Monday, after council members and staff debated a multi‑year deficit forecast and the city’s plan to use reserves to balance the coming year.
The council adopted a resolution approving the budget for the fiscal year ending June 30, 2026, after a public hearing that included one public commenter and a lengthy discussion among council members and staff about the causes of a projected structural imbalance. "The proposed budget that you're going to vote on this evening will show a general fund deficit of $108,000,000," public commenter Carrie Davis told the council during the hearing.
City staff and the new city manager said the near‑term imbalance stems from several factors, including a benchmarking increase for sworn public safety personnel and reductions in specific revenue streams. "A significant factor in that is the benchmark that the city conducted…
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