Phoenix council adopts 2026 budget calendar after staff flag state, federal revenue risks

The Phoenix City Council on Oct. 7 adopted the city’s 2026 budget calendar after a staff presentation that summarized fiscal‑year 2024–25 results and flagged several near‑term fiscal risks.

Deputy City Manager and Budget Research Director Amber Williamson told the council the city ended fiscal 2024–25 with a modest positive variance and recommended the calendar be approved so staff can proceed with the multiyear forecast and community budget hearings. Williamson said the city currently shows about $11.6 million in one‑time savings and recommended holding that balance while setting aside $1.6 million for the housing trust fund if February’s multiyear forecast shows capacity.

Williamson and other staff cautioned that several factors could reduce revenues or raise costs in coming years. She said changes from a recently enacted federal tax‑code bill (referred to in the presentation as the “1 Big Beautiful Bill Act”) and other state and national developments could reduce state shared income tax receipts to Phoenix, and staff estimated a potential multiyear impact that could total roughly $56.7 million across the forecast window. City staff also warned that the Office of Homeless Solutions will need an additional $22 million from the general fund beginning in fiscal 2026–27 to sustain current programs once American Rescue Plan Act dollars expire.

Council members used the calendar discussion to press staff on alternatives to general‑fund support for homelessness services, the timing and number of community budget hearings, and long‑term pension funding. Williamson said no specific external grants had been identified to replace the expiring ARPA dollars and that staff would continue to pursue NOFAs and other opportunities. On pensions, staff described a policy goal in the 75–80% funded range rather than 100%, and noted that several variables — market returns, payroll growth and longevity — affect annual contribution needs.

A council member moved to adopt the budget calendar and the council approved it by voice vote; the clerk recorded one opposing vote (name not specified in the record). The calendar adoption schedules presentation of the city manager’s proposed budget in March, community hearings in April, and final council action in May, with tentative and final adoption steps in June and property tax adoption by July 1 as required by state law.

Staff said the next steps include the city’s 3+9 technical reviews, central reviews in December and program‑level budget reviews through February so the council can receive the general‑fund status and multiyear forecast in late February.

The vote: the budget calendar passed by voice vote on Oct. 7. The council directed staff to return in February with the multiyear forecast and to continue monitoring state and federal developments that could affect revenues.