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Casa Grande adopts tentative FY26 budget and $242 million capital improvement program; staff proposes using $15 million of reserves for near-term roadwork
Summary
The City Council adopted the city—Y26 tentative budget and a capital improvement program that includes $242,314,346 in projects. Staff proposed lowering the reserve target to 30% for one year to free about $15 million for accelerated roadway and beautification projects; council approved the tentative budget resolution.
The Casa Grande City Council approved the tentative fiscal year 2026 budget and a $242.3 million capital improvement program on Tuesday, authorizing staff to publish required notices and begin the public hearings that lead to final adoption.
City Manager Larry and Finance Director Brenda Hassler presented the budget and capital program. "In fiscal year '26, there is no difference. We have $242,314,346 that we are proposing in capital improvement program," Larry said, adding that approximately $123.9 million is carryover from projects already underway and about $118 million are new projects for FY26.
The proposed CIP allocates the largest share to public works — roads, wastewater and water — and includes large items such as wastewater plant expansion, roadway projects including Treckle and McCartney Road phases, and an airport allocation tied to possible federal grant eligibility. Public safety projects and park improvements also appear in the plan.
Brenda Hassler said the city is proposing to keep the primary property-tax rate at the current 0.9643 and showed the tentative general-fund total of $76.6 million. Total proposed expenditures across all funds are $387 million. "We are maintaining our current tax rates," Hassler said during the presentation.
Staff also proposed a one-year reduction of the city's revenue stabilization reserve from the policy target (50%) down to roughly 30% to free $15 million to accelerate selected roadway and beautification projects. Larry said that money would be used to accelerate projects the city has prioritized, including segments of O'Neill, Colorado and Courtland roads, traffic signals, signage and improvements around Paul Mason Sportsplex.
Council approved Resolution No. 5768, adopting the tentative budget and directing staff to publish the required notices for public hearings on the budget and property-tax levy. Final budget adoption is scheduled for June with public hearings in early June; the council will adopt a final budget and tax levy later in June.
Budget documents presented publicly show personnel and benefits remain the city's largest ongoing expense; staff recommended nine new positions targeted to operations, public safety and community services. The presentation described planned capital carryforwards including $24 million for wastewater expansion, $1.45 million for a parks project (pickleball courts), $1.4 million for park amenity upgrades and $4.2 million for a new lift station on Courtland Road, among other projects.
Councilmembers asked staff to continue outreach on rate changes and to return with final estimates on reserves and any implications for long-term fiscal strategy before final adoption.
