Florence council asks staff to prepare public‑notice materials for possible sales‑tax increase (max 3.5%)

Carl, the town’s finance director, presented a 10‑year street‑fund forecast Oct. 13 that incorporated recent revenue losses and the effect of San Tan Valley’s incorporation. He said a 1% local transaction privilege tax (TPT) increase would generate roughly $2.4 million annually in the town’s model and showed scenarios with and without a new revenue stream. “If we don’t do anything in 10 years, we’re going to have a negative fund balance of $17 million,” Carl said; under a modeled 1% increase combined with internal loans the streets fund remained positive in his example.

Council members discussed where additional revenue should be earmarked. Staff and the budget committee had previously modeled a 3.25% package with a 0.25% portion to the general fund to offset shared‑revenue losses; council members asked staff to run additional scenarios in the 3.0–3.5% range and to prepare the required public‑notice materials. Mayor Eaton and several council members said they preferred presenting a single clear proposal and not returning later for multiple increases.

Council authorized staff to prepare a notice of intent to consider a rate change (the legal public notice required before placing a question on a ballot or scheduling a public hearing), with the maximum published rate set at 3.5% for initial outreach purposes. Staff emphasized that publication of an intent notice does not enact a tax and that council can adopt a lower rate after public input; the council must return to a formal hearing and vote before any change becomes law.

No binding tax increase was enacted at the Oct. 13 work session; staff will return with modeled revenue scenarios and ordinance language for council consideration.