Mesa transportation directors present $58.9M operating budget and $3M-per-year pilot for active-transport projects

Mesa transportation leaders presented the department's fiscal priorities April 6, outlining a proposed $58.9 million operating budget for fiscal year 2026-27, a $35 million annual lifecycle program for capital replacements and overlays, and a new three-year pilot that would allocate $3 million per year for smaller community-driven active-transportation projects.

"We're really gonna focus on reducing safety risk," said Eric Adarian, who identified himself as the transportation director. Adarian told the council the department finished a comprehensive safety action plan and continues work aligned with the 2022 council goal to cut fatal and serious-injury crashes 30% by 2030.

The transportation department credited prior council investment with pushing its pavement condition index above target. Adarian said the city will complete conversion to LED street lighting in June, with about 400 fixtures remaining in the downtown area. He also highlighted bringing an in-house concrete crew back online three years ago, which shrank sidewalk repair response times from roughly 30 days to about 10 days.

Deputy Transportation Director Andrew Calhoun walked members through the budget detail and sources. "The proposed budget for 26-27 is 58,900,000," Calhoun said, and he noted roughly 94% of transportation funding comes from restricted sources such as the local street sales tax dedicated to street maintenance and state highway-user revenues. Calhoun added the department is not requesting new positions for the coming year and expects to continue delivering core services despite turnover; the department has 184 authorized positions and about 170 filled at present.

Calhoun and Adarian described several revenue and cost drivers: rising contract costs, personnel step increases, operating and maintenance needs for new projects and a $650,000 transfer from lifecycle funds to operating to cover landscaping and proactive tree maintenance.

Adarian proposed a new CIP program to speed smaller active-transportation projects that typically wait for grants or bond cycles. "We'll be piloting this for the next 3 years," he said, explaining the $3,000,000 annual allocation would be funded using reimbursement money the city receives from MAG for transportation projects. He and council members discussed scope and costs: Adarian said one mile of shared-use path can cost about $3,000,000, and new pedestrian crossings generally range from $750,000 to $1,000,000.

Council members pressed several implementation details. On the photo-safety reinvestment fund, Adarian said Mesa receives between $800,000 and $1,000,000 annually from the program (started in 2020) and that the city directs those monies exclusively to safety projects near schools, parks and pedestrian areas. One council member noted a city policy point: "100% of those monies are used for safety type projects in the city."

Members also discussed canal-path projects on SRP-owned right-of-way; Adarian said the city can enter license agreements with SRP to pave and add amenities on one side of the canal while SRP retains maintenance responsibility for the other side. A council member asked whether shovel-ready trailhead designs for the Lehi Shared Path might be eligible under the new small-project program; Adarian said designs exist and the city could consider scaled versions depending on cost.

On budget cuts, Calhoun said OMB asked transportation to take a 2% reduction from a shared funding source (the environmental compliance fee), which equals about $25,000; he said the department plans to cover that cut from savings and its dedicated funding streams so essential operations should continue unaffected.

After the presentation, the council moved through routine business: it acknowledged receipt of various boards and committee minutes by voice vote, heard current-events reports from members including Arizona Tech Week activities and local Easter events, and received a schedule update. The city manager's office said fire department budget presentations will proceed at the next meeting slot and the police department presentation will be moved to April 16 to accommodate schedules. The meeting adjourned following a vice mayor motion.

What happens next: budget presentations continue in follow-up meetings, and the transportation CIP with the proposed active-transportation pilot will be considered during the formal CIP and budget process before any funding is committed.