The city of Scottsdale’s proposed Fiscal Year 2024/25 Operating Budget and Capital Improvement Plan has been released for review; the City Council will discuss the proposal at their April 16 meeting. Tentative budget adoption is scheduled May 14 and final budget adoption June 4.
“This balanced and fiscally sound budget provides our citizens with a great return on their tax dollars by funding core services and community priorities, including the first phase of city ambulance services,” Scottsdale City Manager Jim Thompson said.
While revenue growth remains strong, the city's proposed FY 2024/25 budget is a 10% decrease from the current fiscal year, reflecting expected declines in residential rental tax and state shared revenues, continued inflation and a slowdown in consumer spending.
Given the economy’s uncertainty, the proposed budget takes a cautious approach to the future.
Scottsdale will focus expenditures on the city's workforce, inflationary increases impacting capital projects, and other City Council and citizen priorities.
Scottsdale’s workforce
The General Fund supports implementing recommendations of a comprehensive classification and compensation study and benefits adjustments to fund the city’s high-performance workforce. Hiring and retaining a skilled workforce is crucial to providing quality service to citizens and visitors.
While increasing staff is proposed, the majority of these new positions are critical to public safety and will staff a newly-constructed fire station and support Scottsdale’s new ambulance transportation operations.
Community investments
The operating budget provides money for significant community investments including one-time funding to purchase new American for Disabilities Act (ADA) compliant bleachers for signature events at WestWorld; up-fitting Fire Department vehicles; and training and certification for Fire Department specialty areas.
Capital Improvement Plan
The proposed budget also addresses a continued rise in materials and labor costs impacting capital construction projects. The proposed Capital Improvement Plan (CIP) budget for FY 2024/25 is $1.09 billion including contingencies.
Projects funded in the next year will address critical capital infrastructure needs in a variety of areas and are supported by different funding sources. Highlights include an expansion of the Granite Reef Senior Center; building new swimming pools and a building at Cactus Pool; repairs to lakes and irrigation at Vista Del Camino Park; a new fire station near Hayden Road and Loop 101; and renovations to the Via Linda police station.
Scottsdale property and sales tax rates remain low
General Fund revenues are estimated to increase by a modest $5 million from the adopted FY 2023/24 budget. That total projected increase comes from several different sources, including ambulance transportation services; additional primary property tax collections; and from building permit fees and charges.
These increases offset a projected $12.8 million decrease in the city's proportionate slices of state-shared income tax, sales tax, and vehicle license fees, primarily due to the state’s switch to a flat income tax rate model.
The city's proposed FY 2024/25 primary property tax rate, which funds services like police and fire protection and parks, is $0.4951 per $100 of a property's assessed value. Its secondary tax rate, which helps pay down city debt, is $0.3597 per $100. Scottsdale’s combined property tax rate is generally among the lowest among major Valley cities.
Scottsdale’s sales tax rate is 1.75% for most business activities. The city uses these revenues to finance various city services including police, fire, parks, libraries and streets. The combined sales tax rate in Scottsdale (8.05%) is one of the lowest among Valley cities. (The combined rate includes the 5.6% state sales tax and 0.7% Maricopa County sales tax.)
Learn more about city tax rates.
Review Scottsdale’s proposed Fiscal Year 2024/25 budget.
