Scottsdale City Council has approved a new three-year agreement with Scottsdale Arts that continues the city’s long-standing partnership to manage arts programs, public art and major cultural events.

The agreement runs from July 1, 2026, through June 30, 2029, with two one-year extensions. Council also approved $6,297,114 in funding for fiscal year 2026/27 to support those services.

Scottsdale has worked with Scottsdale Arts since 1987 to operate city-owned venues such as Scottsdale Center for the Performing Arts, Scottsdale Museum of Contemporary Art and Scottsdale Civic Center. The organization also oversees public art, arts education, community arts grants and large-scale events such as Canal Convergence.

The new agreement updates how the partnership is structured. It comes after a 2024 city audit recommended clearer expectations, stronger financial reporting and better oversight.

Judy Doyle, deputy city manager, said the revised agreement puts more structure around how public funds are used.

“This agreement sets clear performance expectations and strengthens financial transparency,” Doyle said. “It keeps our arts programs strong while making sure taxpayer dollars are managed responsibly.”

Each year, City Council will still vote on the funding amount, maintaining direct oversight.

For fiscal year 2026/27, the total funding includes $6.3 million in general operating support and additional dollars set aside for specific purposes such as arts education, public art conservation, community arts grants and destination events.

The agreement also outlines how city support will change over time.

The agreement reduces the city’s General Fund contribution by $250,000 annually, reaching a $1 million annual reduction by year four. If the two one-year extensions are exercised, the $1 million reduction will remain in place during those extension years. While a 3% cost-of-business adjustment begins in year two, the planned General Fund step-down continues over the life of the agreement.

In simple terms, the agreement allows for modest cost adjustments while gradually lowering the city’s long-term reliance on General Fund dollars. The goal is to encourage more earned revenue, sponsorships and tourism-based funding.

Tourism Development Funds will continue supporting major events, including $750,000 for Canal Convergence and $250,000 annually for Dreamy Draw or another qualifying destination event.

City Manager Greg Caton said the agreement strikes a balance between investing in quality of life and protecting city finances.

“Arts and culture are part of what makes Scottsdale special,” Caton said. “This agreement keeps those programs strong while building in clear oversight and a responsible plan for long-term funding.”

The agreement is administered by the city’s Tourism and Events Department.