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Mesa Proposes No Change to Secondary Property Tax Rate; Median Homeowner Increase About $8
Summary
City treasurer presented fiscal-year-2025–26 secondary property tax proposal: no change in tax rate, projected levy of $44.3 million, and an $8 annual increase for median homeowner driven by rising taxable values and new property additions.
The city presented its proposed secondary property tax levy for fiscal year 2025–26 at the May 29 study session and recommended maintaining the current secondary property tax rate. City Treasurer Mark Hoot told council the proposed unchanged rate would result in a levy of about $44.3 million and would mean an estimated $8 annual increase in the secondary property tax cost for the median Mesa homeowner.
Hoot said the city’s total taxable property value increased about 5.5% this year to roughly $52 billion (limited property value used for levy calculations), and he explained the difference between limited property value — the statutory taxable value that generally may not rise more than 5% per parcel per year — and full cash value, which reflects market value and establishes long-term capacity. He noted the limited property-value growth arises from both new property added to the tax rolls (about 44% of the increase) and appreciation of existing property (about 56% of the increase).
The treasurer’s presentation reviewed bond-authorized uses of the secondary property tax (voter-approved general obligation bonds for public-safety and parks/culture projects) and a 10-year history of Mesa’s taxable values. Hoot said the proposed levy and unchanged rate reflect the city’s plan to smooth levy requirements over time to fund debt service for voter-approved projects; the city intends to consider final adoption of the levy at a June public hearing and a subsequent formal levy adoption two weeks later.
Council members asked clarifying questions about how the rate is derived and what the median homeowner figures represent. Staff said the $160 annual cost to the median homeowner is based on the parcel’s limited taxable value and noted that last year’s comparable figure was $152. City staff also said the tax rate has been steady for several years and that using increased limited values can allow the city to hold the rate steady while generating the needed levy for debt service.
No formal approval of the levy occurred at the study session; staff said a public hearing on the budget and property-tax levy will be on the June 2 council meeting agenda, with final levy adoption expected two weeks later.
