The Scottsdale City Council has officially adopted the city’s Fiscal Year 2025/26 budget and five-year Capital Improvement Plan, reaffirming the city’s commitment to responsible financial stewardship, world-class service delivery and strategic community investments.

The adopted $2.204 billion budget is balanced and represents a 4.0% decrease from the prior year’s adopted budget of $2.295 billion. The plan includes a $885.2 million operating budget, $947.7 million capital budget, and $370.8 million in contingencies and reserves, which reflect the city’s conservative approach amid economic uncertainty and shifting state tax policy.

“This is a fiscally responsible budget that invests in the priorities that matter most to our residents — public safety, infrastructure, parks and preserving Scottsdale’s exceptional quality of life,” said City Manager Greg Caton. “It keeps taxes low, maintains strong services and addresses critical needs while planning for our future.”

The budget was built through the collaborative work of city staff and leadership, balancing organization and council goals with community expectations.

“Adopting this budget is a significant milestone,” said City Treasurer/Chief Financial Officer Sonia Andrews. “It reflects months of hard work and thoughtful planning. I’m proud of the partnership between staff, the Budget Review Commission and elected officials that made this possible. Together, we’ve produced a plan that’s responsive to our community and focused on delivering real value to our residents.”

Public safety and workforce investment

The adopted budget includes funding for 98.16 new full-time positions across city departments, including 44 new Fire Department positions to staff fire stations and expand ambulance and rescue services, and 22 new Police Department positions to support patrol, investigations and expand the Police Park Ranger program thanks to additional funds approved by voters via Proposition 490.

Additionally, the budget includes a one-time $50 million payment to reduce the city’s public safety pension liability — part of a strategy to reduce pension costs and strengthen Scottsdale’s financial position.

To support the city workforce, the budget continues market and performance-based pay programs and includes additional salary adjustments to remain competitive in the regional job market.

Capital Improvement Plan

The city's five-year Capital Improvement Plan totals $2.204 billion and supports critical projects across Scottsdale, including:

• $134.7 million in Bond 2019 projects like the expansion of Granite Reef Senior Center and improvements to Vista del Camino Park
• $42.9 million for the street pavement overlay program and $1.6 million for the alley overlay program
• $14.6 million for a new public parking garage in Old Town
• $21.6 million for sewer improvements in the Greenway Hayden Loop corridor
• $2.0 million for Old Town beautification and infrastructure upgrades.

The budget also includes $25.2 million in new revenue from the voter-approved 0.15% Park and Preserve Sales Tax, which takes effect July 1. These funds will support city park maintenance, care and protection of the McDowell Sonoran Preserve, the Police Park Ranger program, and fire mitigation efforts.  The 0.15% Park and Preserve tax replaces a 0.20% city sales tax used to acquire land for the Preserve which is set to expire June 30. With the expiration of the 0.20% city sales tax and the new tax going into effect, the city’s overall sales tax rate will decrease from 1.75% to 1.70%.

Looking ahead

Scottsdale's budget anticipates slower sales tax growth in the short term but projects a return to modest growth beginning in FY 2026/27. The city continues to monitor economic trends while preserving its ability to deliver high-quality service.

“This budget allows us to move forward with confidence,” said Caton. It supports the exceptional service our community deserves while keeping us agile and prepared for what’s ahead.”

For more information or to view the full budget documents, visit ScottsdaleAZ.gov, search “budget.”