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Fountain Hills council narrows FY26 staff pay increase to 2.5% amid revenue uncertainty
Summary
Council gave staff direction to include a 2.5% cost‑of‑living adjustment in the FY26 budget and reiterated conservative revenue assumptions and contingency reliance as staff prepares the tentative budget for formal adoption.
Fountain Hills town staff presented a final budget workshop preview of the FY26 draft budget and council settled on a 2.5% cost‑of‑living adjustment (COLA) for staff as the working direction for the tentative budget.
Finance Director Paul told the council the town’s proposed budget totals about $50,370,000 across all funds, with a general fund revenue projection of $26,050,000. The town holds contingency of roughly $1,230,000 in the general fund, which staff described as the primary buffer if revenues come in below projections.
Staff noted conservative revenue practices — using a 95% confidence level for projections — and recent local sales tax…
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