Cave Creek unveils preliminary $80.4M budget with $16M open‑space placeholder, pauses town‑hall work

Town staff presented a preliminary fiscal‑year 2027 budget proposal Monday that would total about $80.4 million and includes large new placeholders for open‑space acquisition and water resources. Staff said the draft holds a $16 million placeholder for a possible 4,000‑acre open‑space purchase and a $12 million line item for new water resources, both of which drive a larger capital improvement plan (CIP) than in the prior year.

The proposal, delivered by staff member Sherry, lays out a three‑day review schedule and a structure that starts with a high‑level overview, followed by CIP requests, supplemental requests and department base budgets. Sherry said the FY27 CIP would be roughly $44.2 million, up from $38.4 million, and that the large increase is chiefly because the open‑space placeholder and water‑resource projects inflate the capital side of the plan.

Sherry said the town is using the FY26 adopted budget as the baseline, then layering recommended supplementals and CIP appropriations on top. She told council that the adopted tentative budget sets the legal cap for final adoption and that the town will continue to carry forward contingency and reserve assumptions intended to keep the budget balanced.

A councilmember recommended keeping the town‑hall remodel appropriation in the FY27 budget while pausing active work on the project until the utility and water‑acquisition picture is clearer. The councilmember said the money should remain budgeted but instructed staff ‘‘not to proceed with that at this time.’’ Sherry confirmed staff had been told to hold off on work while leaving the appropriation in place.

Staff also highlighted revenue assumptions and reserves: one‑time debt proceeds and fund carryovers are significant drivers of available resources, and the presentation showed a modest excess resources estimate for FY27 after reserves. Sherry noted collections such as TPT (transaction privilege tax) and HERF (highway user revenue fund) have not grown as strongly as in prior years, in part reflecting statewide tourism trends.

The council tabled further department‑level reviews until the next scheduled session the following day. The session adjourned after council agreed to continue the review and provide direction on the supplemental and CIP requests.

The budget work session will resume tomorrow to review remaining departmental base budgets and capture any directions council gives to staff.