Tempe council approves five-year capital plan, adopts budget estimates and signals primary property tax levy increase

The Tempe City Council on a special budget meeting session considered and approved several budget measures, voting 5–0 (two members absent) to adopt a multi-year capital improvements program and to proceed with a primary property tax levy increase that city staff says would raise about $462,000 for the general fund.

Councilmember Hodge moved to adopt the resolution for the five-year capital improvements program and Vice Mayor Garrett seconded; the motion passed 5–0 with Councilmembers Adams and Keating absent. Later in the meeting, Councilmember Hodge moved to adopt the city’s expenditure estimates for fiscal year 2026-27 and Councilmember Amberg seconded; that measure also passed 5–0 with Adams and Keating absent.

The hearing on the city’s intent to increase the primary property tax levy drew public comment. Mario Martinez, a Tempe resident, spoke in opposition and accused the council of fiscal waste and missteps, saying, “I will vote my opposition to the proposed property tax increase ... they prove that they do not deserve a penny more.” His remarks listed multiple grievances, including a contested local development (referred to as the Coyote matter), prior settlements, and other allegations; those claims were not addressed or substantiated during the meeting.

City staff member Robert explained the measure under Arizona’s truth-in-taxation framework, saying the primary levy pays for day-to-day operations while a secondary levy covers general obligation bond debt service. “Per state statute ... that levy can only increase by 2% in total on existing properties,” Robert said, and added, “that increase will have an impact of $462,000 for the general fund.” He told council that if the levy were not approved, additional budget-balancing measures would be necessary.

A resident, Darlene Justice, spoke in favor of the measures, saying she has lived in Tempe for 65 years and would support a modest increase to preserve preschool programs, transportation and police and fire services. The council set a second and final public hearing on the 2026-27 property tax ordinance for June 25, 2026.

The meeting also included council discussion placing the levy in context alongside a voter-approved bond package from November 2024; a council member referenced a roughly $581 million bond package and listed line items approved by voters, including funding for streets and public safety, $12.3 million for historic preservation and $32 million for affordable housing.

The council adjourned the special budget meeting and scheduled the next special budget meeting for June 25, 2026.