Council approves FY2026 tentative budget after debate over contingency and park spending

The Queen Creek Town Council voted unanimously to adopt the fiscal year 2026 tentative budget, which sets the maximum spending authority for the coming year and frames subsequent budget decisions.

Deputy Town Manager and CFO Scott McCarty presented the tentative budget and walked council through key elements: an operating budget reduction of roughly 6% compared with the prior year; projected net revenues of about $6.1 million more than expenditures in the tentative plan; an infrastructure (capital improvement program or CIP) allocation that includes a $50 million contingency; and organizational staffing growth of about 37 full‑time equivalents (FTEs) across departments, primarily in police and fire. McCarty described how large multiyear projects require budget authority in the year a contract is signed and said the contingency acts as “insurance” to preserve the town’s ability to move on high‑priority projects as needs arise. He recommended keeping the CIP contingency at $50 million and providing clearer policy language and annual reporting on contingency use going forward.

Councilmember McClure moved to approve the tentative budget; Councilmember Brown seconded. The motion passed unanimously.

Council discussion included detailed questions about reserve balances, contingency purpose, and long-term infrastructure commitments. McCarty explained that a portion of construction-sales-tax revenue has been routed to a restricted infrastructure reserve (described on slides as roughly $11.2 million) so the town does not build one-time construction revenue into ongoing operating expenses.

Councilmember Sergio Padilla provided an extended critique of recent park spending and operating costs. In his remarks he said the town has spent about $232 million on parks over the last decade and about $62 million in operations and maintenance during that period; he said annual park maintenance had risen from roughly $3.6 million in 2020 to an estimated $15 million next year. Padilla argued the town should slow the pace of park acquisitions and devote more resources to transportation. Other councilmembers defended current capital investments and the town’s fiscal approach; Councilmember Benning and Vice Mayor Martineau praised the staff’s transparency and contingency rationale. Councilmember Brown rejected Padilla’s suggestion that opposing the current budget equates to being fiscally irresponsible.

McCarty also reviewed the town’s “permanent base” voter‑approved budget construct and said the tentative budget is notably below the theoretical voter‑approved cap. He noted staff expected a lower final budget number after accounting for items already executed that had been slated for next year.

McCarty asked council to view the tentative adoption as a ceiling; the council may adopt a final budget at the same or a lower number in a subsequent meeting. Staff will bring back final adoption materials, the proposed corporate strategic plan, and any financial-policy adjustments at upcoming hearings.