Scottsdale presents $2.21 billion proposed budget and $952 million capital plan; council directs staff on several items
Loading...
Summary
Scottsdale officials presented a $2.21 billion proposed FY 2025–26 budget May 6 that includes an $885.5 million operating budget, a $952 million capital improvement plan, 98 proposed new FTEs (66 in public safety), a proposed $50 million one-time PSPRS payment and $42.9 million for street overlay.
Scottsdale city officials on May 6 presented the proposed fiscal year 2025–26 operating and capital budget: $2.2079 billion total comprised of an $885.5 million operating budget, $952 million capital program and $170.4 million in contingencies and reserves.
City Treasurer Sonia Andrews and Budget Director Scott Sealand briefed council on key elements: 98 proposed new full-time equivalents (66 in public safety), a proposed one-time $50 million payment to the Public Safety Personnel Retirement System (PSPRS) to reduce the police pension contribution rate, and a $42.9 million allocation for street overlay after a recommendation from the Budget Review Commission.
Andrews told council the budget remains structurally balanced: about 40% of next year’s operating increase is covered by new or dedicated revenue sources (for example the 0.15% park-and-preserve tax, water/sewer/solid waste rate increases, and new ambulance revenue). The proposed PSPRS payment, she said, would lower the city’s police contribution percent of payroll (reducing future budget pressure and improving competitiveness for recruiting). Scott Sealand outlined how proposed changes would affect departmental staffing and the proposed uses of the point-15% park-and-preserve tax (estimated $25.2 million next year).
Council and members of the public also raised several items during the meeting. Vice Mayor Jan De Boscas moved to shift $392,938 allocated to Scottsdale Arts from the general enterprise fund operations into the general fund contingency pending further review and contract negotiations; the council approved that direction to staff. The move preserves the funds in the proposed budget but requires staff to return with additional information before the dollars are spent.
Council members and staff discussed pavement condition index (PCI) and a multi-year overlay plan; staff said the city’s average PCI is approximately 63 and that rebuilding Thomas Road had been re-scoped, with $15 million reallocated to pavement preservation treatments that can prevent corridors from falling into failed condition. Andrews and Sealand said staff will return with a multi-year plan and itemized lists of targeted streets and treatments.
Budget staff said the 0.15% park-and-preserve tax allocations include debt service for WestWorld drainage, $11.0 million in initial program expenditures, $4.8 million in reserves, a $5.0 million transfer to CIP, and $3.6 million unappropriated balance. Staff also highlighted capital projects underway or recently completed, including Indian Bend Wash lake and irrigation work, Shea Boulevard improvements, and upgrades to a police training facility.
City leaders said the tentative budget will return for adoption on May 20 and the final budget on June 10. Staff asked council for direction on specific items and pledged to provide requested supplemental materials — including the staffing and compensation detail council requested and a detailed explanation of Scottsdale Arts funding — before the next budget meeting.
