El Mirage presents FY2026–27 budget proposal: $47.5M general fund, stable property tax rate
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Summary
City staff presented a preliminary FY2026–27 budget that holds the property tax rate steady while proposing a roughly $47.5 million general fund, preserving about $14 million in reserves and addressing personnel and technology cost pressures; the council scheduled tentative-adoption steps in May and asked for follow-up on contracts, meters and service impacts.
City staff on April 1 presented a preliminary FY2026–27 budget that the presentation described as a "continuation budget" that maintains core services while responding to rising personnel and operating costs.
The budget presenter said the general fund is proposed at approximately $47,500,000 — a 6.45% increase over the prior year — and emphasized the package does not increase the city’s property tax rate. Staff showed a combined city rate decrease from about $2.63 to $2.37 per $100 of assessed value and noted approximately $14,000,000 in reserves designated for stabilization.
Why it matters: Staff framed the proposal as preserving service levels (public safety, development services and enterprise operations) while absorbing higher personnel costs, step increases and growing software/hardware expenditures. The five‑year outlook presented with the budget projects continued structural balance but noted ongoing monitoring needs for capital and debt service.
Key details from the presentation included transfers and contingencies: staff reported total sources of roughly $94.5 million against planned uses near $100 million, a $1 million contingency, and a $10 million grant fund placeholder for potential future awards. Staff also noted a $981,000 transfer to the municipal court and a $3.1 million transfer to the highway user revenue fund (HEERF) in the proposal.
Council members asked staff to return with clarifications on several line items, including the basis for contracted security and armored service costs, detailed meter replacement counts connected to a $15,000 operational line for meters, and the sanitation contract pricing. Staff committed to follow‑up information and to provide the tentative budget for adoption on May 5, the final budget on May 19 and the property tax levy on June 2.
At the end of the session staff said the utility rate study recommended modest, staged increases (3% for water and 3% for wastewater) and noted the city must post a 60‑day notice where required before adjusting commercial water fees.
The work session produced no formal votes; council will consider the tentative budget and related rate and levy actions at upcoming public agenda dates.
