Scottsdale proposes lower, fiscally conservative budget with strong investment in public safety and infrastructure

The city of Scottsdale has released its proposed fiscal year 2026/27 budget, a $2.119 billion plan that reflects a fiscally conservative approach, addresses economic uncertainty and prioritizes investments in public safety and critical infrastructure.

The proposed budget is $84.7 million lower than the current year, a 3.8 percent decrease, while maintaining a balanced General Fund and a strong projected ending fund balance of $214.4 million.

“This budget reflects a thoughtful and disciplined approach to aligning our resources with community priorities while maintaining Scottsdale’s long-standing commitment to fiscal responsibility and service excellence,” said City Manager Greg Caton.

Conservative approach amid economic uncertainty

The proposed budget is built on conservative revenue assumptions as the city prepares for a return to more typical economic conditions following several years of strong growth.

City leaders note that while revenues remain stable, rising costs for personnel, goods and services continue to put pressure on operations, requiring careful planning and prioritization.

To address these pressures, the city conducted a comprehensive review of expenditures, identifying efficiencies and evaluating vacant positions across the organization. These efforts resulted in a lower overall budget and a net reduction in staffing, while preserving core services.

“The organization took a very disciplined approach this year,” said Budget Director Scott Serlin. “Departments worked collaboratively to identify efficiencies and prioritize resources, which allowed us to reduce overall spending while still making strategic investments in critical services and our workforce.”

Strong investment in public safety

Public safety remains the city’s top priority, with significant investments supporting both the Scottsdale Police and Fire departments.

The proposed budget continues implementation of Scottsdale’s city-operated ambulance service, expands fire department staffing and includes targeted compensation adjustments to help recruit and retain high-quality police officers and firefighters.

Additional investments include funding for workforce development and a $2 million contribution to reduce unfunded public safety pension liabilities.

These efforts reinforce Scottsdale’s commitment to maintaining one of the safest communities in the country while supporting the employees who deliver these critical services every day.

Investing in infrastructure and long-term reliability

The proposed budget continues strong investment in infrastructure that supports Scottsdale’s quality of life and long-term sustainability.

The city’s five-year Capital Improvement Plan totals $956.1 million and focuses on projects that are well-defined, ready to deliver and aligned with community priorities.

Key investments include street maintenance and transportation improvements, along with significant funding for water and wastewater infrastructure.

The proposed FY 2026/27 budget includes approximately $207.8 million for water projects and $82.7 million for water reclamation, along with $40 million in contingency funding, bringing the total planned investment in water and water reclamation infrastructure to about $330.5 million. These figures include both new projects and carryforward funding from prior years and support long-term water reliability in the desert environment.

Capital projects account for approximately 45 percent of the total budget.

Positioned for the future

Scottsdale’s strong financial management and disciplined approach to budgeting position the city to navigate economic uncertainty while continuing to deliver high-quality services.

The proposed budget will now move through the public review and City Council adoption process in the coming months.

“This budget reflects a disciplined, strategic and forward-looking approach to financial management,” Caton said. “By aligning resources with community priorities, Scottsdale is well-prepared to meet both current needs and future challenges.”