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Prescott council adopts small property-tax levy increase to shore up city services
Summary
The Prescott City Council voted 5–2 to adopt a modest property-tax levy for FY 2026–27 after members debated fairness, lost bed-tax revenue and the effect on renters. Council and staff said the increase will fund libraries, parks and essential services; opponents called for restraint given other fee increases.
The Prescott City Council voted 5–2 on July 14 to adopt ordinance 2026‑1945, a limited increase to the property‑tax levy for fiscal year 2026–27 that city leaders said will help sustain local services.
Mayor and councilmembers who supported the measure framed it as a small, targeted step after the city lost bed‑tax revenue when the state changed rules on long‑term rentals. “On a $500,000 home, the proceeds that would be generated come out to about $2.25 per property owner,” one council member said during debate, noting the revenue would stay in Prescott and support the library and parks and recreation.
Opponents said the council has layered new fees and that residents already face rising costs. One councilmember said the dais was “running away with spending” and warned that incremental tax increases can accumulate. Another councilmember explained that, after discussing community concerns and a package of upcoming fee changes, they would vote against the levy for now.
City staff characterized the levy as part of a broader fiscal picture that includes state revenue shifts and previously approved public‑safety financing. No additional public commenters spoke on the item before the vote. The ordinance passed with a 5–2 tally.
What happens next: the levy will take effect for the fiscal year beginning in July and funds will be budgeted for municipal services in the FY 2026–27 budget adopted by the city.
