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Tucson officials map budget squeeze: pay plan moves forward as council debates fees and safety funding
Summary
City staff showed a narrowed FY27 deficit and presented a menu of options; council advanced a major employee compensation package and authorized parks fee notice while debating fee fairness, Safe City deployments and possible service reductions once state revenues decline.
TUCSON — City staff told Mayor and Council on April 7 that the projected fiscal 2027 general‑fund gap had narrowed from nearly $29 million to roughly $17 million after updated state shared‑revenue projections and internal adjustments.
The study session covered a broad "menu of options" to close the remaining gap, including potential new revenues (park and recreation fees were discussed), transfers, targeted service reductions and strategic vacancy management. Staff emphasized that employee pay increases and ongoing public‑safety commitments were built into the base assumptions for the year and were not on the immediate table for elimination.
Human Resources presented a large FY27 compensation package — the second year of multi‑year pay adjustments citywide — that would cost an estimated $18.1 million citywide and about $12.8 million in new general‑fund dollars. The package proposes a 1.5% base progression for many employees plus market adjustments and continued multi‑year pay plan steps for police and fire ranks. Council members praised the structure and urged that department goals be tied to measurable outcomes; staff said performance reviews must be completed by May 29 for eligibility.
Parks and Recreation presented a phased plan to raise some class, camp and facility fees and to introduce a tiered low‑income discount tied to the federal poverty scale; the department said the increases would be phased over several years and that extensive community outreach is planned. Some council members raised concerns that the discount thresholds would capture a large share of public‑school families and could reduce revenue if many qualify; staff agreed to monitor impacts closely and to expand in‑person assistance for registering families.
On public safety, staff briefed the council on Safe City deployments that combine enforcement with deflection to treatment: targeted police special‑duty patrols, expanded coordination with Pima County prosecutors about repeat offenders, and referrals to treatment partners such as the Safer Center. City police said drug‑related arrests were up year‑to‑date and that data sharing improvements are needed to track whether individuals referred to services complete treatment. Council asked staff to return with concrete disposition metrics and to identify barriers to exchanging prosecution and court outcomes.
Outcome highlights: - Council advanced the FY27 compensation plan in concept (included in the recommended budget to be presented April 21). Staff estimated the FY27 compensation cost at about $18.1 million citywide. - The council approved a Notice of Intent to increase some parks and recreation fees and to adopt an updated discount schedule; the proposal will return for formal action after outreach. - Council adopted the ECA (energy collaboration agreement) and referred a tied franchise to the Nov. 3, 2026 ballot (see separate article).
What's next: City Manager and staff will present a recommended balanced budget on April 21 and continue community hearings on fees. Council directed staff to define data and disposition metrics describing how arrests/referrals move through the court and treatment systems and to report back within 60 days.
At a glance: FY27 projected deficit ~ $17M (at presentation), compensation plan FY27 estimated cost $18.1M (total); Safe City targeted enforcement + deflection continuing across downtown and transit corridors.
