Apache Junction presents conservative FY 2026–27 budget, proposes average 8.8% pay adjustment for employees

At a May 4, 2026 special meeting, city staff presented the City Council of Apache Junction with a proposed fiscal year 2026–27 budget that officials described as intentionally conservative while investing in employee pay and capital projects.

"Apache Junction continues to grow at a fast pace," said Matt, a city staff member who led the presentation, and he warned that while one-time revenues and local sales tax remain strong, recurring revenues are slowing. Matt said the first full-year impact of the incorporation of Santan Valley will reduce the city’s annual revenue by about $2 million, roughly split between the general fund and HERF.

The presentation included a classification and compensation study showing that more than 75% of city positions were about 5% behind market comparators. "The average increase across all the positions will be approximately 8.8%," Matt said, a change the city described as aimed at improving recruitment and retention.

Finance Director Angelie Holly walked the council through key budget figures and assumptions. "For the general fund, on the revenue side, we have city sales tax at $30.4 million, state shared sales tax at $6.6 million, [and] state shared income tax of $9.3 million," Holly said. On the expenditure side, staff reported personnel costs of about $41.88 million, purchased services near $10.5 million and commodities at $7.3 million.

Staff described the operating budget as largely flat: departments held close to level operating budgets and the proposal adds two and a half full-time-equivalent positions to the general fund. At the same time, the draft budget plans for several capital projects, including a public safety cooling tower replacement, library roof repairs, Broadway Road pavement overlay, chip-seal work on Superstition Boulevard, Delaware Road drainage phase one, new park shade structures and 10 additional pickleball courts. Staff also noted completed improvements at the Superstition Shadows Aquatic Center and integration of a real-time public safety crime center.

A council member asked for confirmation of the average pay increase and how the city compared with peers; staff said the study used nine comparator cities in the region and confirmed the 8.8% average figure. Multiple council members thanked finance and department staff for the work on the classification and compensation plan and the overall budget.

Staff said the presentation was a work session and that the tentative budget, the classification and compensation plan and the pension funding policy required by state law are included in the packet. The council set a public hearing and consideration of adoption for Monday, May 18. The special meeting adjourned after brief closing remarks.