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Gilbert adopts $2.55 billion budget package and $1.7 billion CIP after debate over transparency
Summary
The Town of Gilbert adopted its final fiscal 2026–27 budget and a 10-year capital improvement program (total CIP roughly $1.7 billion) on June 9, citing a $20 million ongoing revenue shortfall; the council also set the secondary property tax levy at $0.98 per $100 of assessed value to generate about $36.6 million for debt service.
The Gilbert Town Council adopted the town’s final budget and a multi-year capital improvement plan during a special meeting segment on June 9, approving a $2,554,042,835 total budget for fiscal 2026–27 and a 10-year capital improvement plan that staff described as roughly $1.7 billion in infrastructure investment.
Kelly (budget director) presented the package and a budget video explaining the drivers behind a projected $20 million annual shortfall in ongoing revenue. Kelly attributed most of the gap to external changes: elimination of a residential rental sales tax ($9 million), Arizona’s shift to a flat income tax (about $5.5 million), and other fiscal changes and local incorporations totaling about $20 million in lost ongoing revenue. "Our general fund is facing a $20,000,000 a year loss in ongoing revenue," the staff presentation said.
The capital improvement plan includes about $1.2 billion of projects already in progress and roughly $500 million of additional projects proposed this year; staff also noted a $100 million CIP contingency intended to address unanticipated needs. Council member Koprowski recused from the CIP vote because her firm is a qualified vendor; the council approved the resolution adopting the CIP (resolution 46-73) with the recusal noted.
The council also adopted an ordinance setting the secondary property tax levy for fiscal 2027 at $0.98 per $100 of assessed value, projected to generate about $36,635,000 for debt repayment and bond obligations. Council discussion emphasized the council’s limited ability to change voter-approved bond obligations and the staff recommendation to maintain the current rate; several members acknowledged constituent concerns about taxes while noting legal/financial constraints.
On the final budget (resolution 46-74), staff described a mix of one-time solutions and structural adjustments to balance the year: land-sale proceeds, savings from earlier project phases, and prioritized staffing requests (about 100 of ~300 requested positions funded). The presentation said Gilbert practices zero-based budgeting and has generated savings through that method but faces ongoing structural revenue challenges the town will address in coming years.
Council members approved the final budget after discussion. Staff said they will monitor impacts, provide a six-month update on certain items (including enforcement metrics under new ordinances), and continue to present options to address long-term revenue shortfalls.
Votes at a glance: Items tied to the budget/CIP and immediate financial actions passed as recorded in the meeting minutes: adoption of the CIP (resolution 46-73) — motion carried (recorded 5–1 with one recusal); adoption of ordinance 29-89 setting the secondary property tax levy — adopted unanimously; adoption of final budget (resolution 46-74) — adopted by council vote as recorded at the meeting.
