Civil Expense: The Battle Over City Budgets and the Taxpayer Burden
From Surprise to Scottsdale, cities across the Valley are weighing tax hikes or budget cuts—raising the question: how wisely are your tax dollars being spent?
Across Arizona, cities use State of the City addresses to spotlight wins, spin setbacks, and pitch what’s next—often at taxpayer-funded events built into annual budgets. It’s as much about messaging as it is about policy.
Now, with budget season underway, the real numbers are surfacing—and so are the battles over your tax bill. Cities and counties are unveiling proposals to hike (or occasionally cut) property taxes, with public hearings starting this week.
First up: a few cities actually aiming to trim.
Surprise, Arizona
Surprise, Arizona holds a public hearing on June 3rd to review updates to its 2025 property tax rates. The city is pitching a reduction in the primary tax rate and no change to the secondary rate. The proposed combined rate is $0.9414 per $100 of assessed value—down from last year. However, the city states individual tax bills may still fluctuate depending on changes to a home’s assessed value as determined by Maricopa County. “While the rate is being reduced, the total levy amount will increase by $570,800 due to new construction.”
Surprise’s Vice Mayor Jack Hastings has been vocal on X about the city’s efforts to cut taxes and hire key administrative positions internally.
In a May 31st exchange on social media, Surprise Vice Mayor Jack Hastings responds to Councilmember Johnny Melton’s note that the city’s tax revenue is up by roughly $4 million—more than projected—by stating: “That’s why we’re cutting taxes, again!”
Chandler, Arizona
Despite political turmoil and legal questions surrounding the mayor’s eligibility— which State 48 was one of the first to report—and with the city manager set to resign August 1, the City of Chandler is still aiming to make taxation history.
The Chandler City Council directed staff to move forward with a proposal to lower the city’s primary property tax rate for fiscal year 2025–26—marking the 10th consecutive year of reductions. A final vote is scheduled for June 26th.
Staff presented their proposed 2025-26 fiscal year budget to Council during an all-day workshop on May 2. The total is $1.629 billion, which is about .1% less than this current year’s budget.
If adopted by Council on June 12, it would be the second straight year the overall spending amount has decreased. The 2023-24 fiscal year budget was $1.66 billion.
-The Chandler Arizonan | May 11, 2025
In 2024, Chandler experienced the second-largest increase in homeownership rates among the 100 most populous U.S. cities, with a rise of 4.09 percentage points—from 64.2% to 68.3%—according to a PropertyShark analysis reported by AZ Big Media.
Scottsdale, Arizona
It’s a different story in Scottsdale where they’re considering a more substantial increase of 13.64% in primary property taxes, which would generate an additional $5.4 million. For a $100,000 home, the proposed annual tax would rise from $49.58 to $55.25. This proposal also excludes revenues from new construction and voter-approved bonds or overrides.
The City of Scottsdale plans to increase its proposed primary property tax levy $5,408,904 (excluding new construction) due to tort liability claim payments, the 2 percent statutory adjustment, and adjustment for the impact from the Qasimyar versus Maricopa County tax judgement.
The city's proposed secondary property tax levy will increase $0.01 million due to the use of fund balance accumulated in FY 2024/25 as a result of savings achieved through a prior year general obligation debt refinancing, and the current secondary tax rate of $0.4358 is expected to decrease by $0.0125 to $0.4233 per $100 of assessed valuation in FY 2025/26.
-City of Scottsdale | May 27, 2025
The public hearing is set for June 10th at 5pm.
Scottsdale Mayor Lisa Borowsky, through a spokesperson, tells State 48 News she opposes the proposed property tax increase. She also highlights key fiscal wins, noting the city plans to cut approximately $91 million in spending for FY 2025–26.
Another financial flashpoint is still in play—the controversial Axon apartment deal that continues to stir debate over local control and development priorities. Former councilmember Bob Littlefield is calling out Axon for pushing through Arizona’s largest apartment project—1,875 units—despite voter opposition.
Littlefield urges residents to pressure city leaders to keep fighting the project in court and protect their right to challenge rezoning decisions.
Mayor Borowsky also remains adamantly opposed to Axon’s bid to build housing units – as part of its headquarters plan in north Scottsdale stating, “Over 26,000 local residents signed petitions to ensure a referendum vote on this project, and I will continue doing everything in my power to ensure your voices are heard. This doesn’t mean I’m anti-Axon. Scottsdale needs good jobs, but we cannot sacrifice our quality of life and we will not abandon the lawful right of our citizens to protest development proposals via the ballot box.”
Tax Increases—Is Anyone Looking at the Spending?
Speaking of Scottsdale, during the pandemic, the city had a different approach to tax hikes. During a time when many were out of work, the Scottsdale council reportedly cast a 4-3 vote in Spring 2020 giving staff direction to NOT implement a 2% property tax increase.
The way in which cities and counties approached tax hikes during the pandemic is not easily forgotten. In 2020, Sean McCarthy, senior research analyst for the Arizona Tax Research Association, warned in an opinion piece that "Arizona cities, counties, library districts and community colleges may be tempted to ask more from taxpayers. They should use their savings first."
As a resident, it’s easy to shrug off tax hikes as just the cost of living. But would you still feel that way if you saw exactly where those dollars go?
While some cities propose cuts and others push for increases, many are also hosting polished public events—funded with taxpayer money—to promote their priorities and justify the budgets behind them. From travel and meals to marketing and media, it’s worth asking: how closely have you looked at the fine print?
Examining the Price Tag: A Closer Look at City Event Expenditures
A source tipped off State 48 News about a West Valley city's State of the City address. So we took a closer look—comparing how cities across Arizona host and fund these annual mayoral addresses.
According to the tip, the City of Goodyear screened a film at a local movie theater to a limited, invitation-only audience. The complainant said the film featured scenes from major motion pictures, raising questions about whether the city obtained the proper copyright permissions.
In what appears to be an Avengers/Star Wars-style theme, the partially city-produced film features Mayor Joe Pizzillo, members of the Goodyear City Council, classic movie scenes from The Wizard of Oz and Rocky, and even local Fox 10 weatherman Cory McCloskey.
A public records request reveals the city spent $7,877.97 on the production and event. Additional in-house costs were not itemized, as they fall under regular city operations.
We asked the city’s Director of Communications, Tammy Vo, how the decision was made to hire an agency outside of the city’s communications department - and outside of Goodyear - to assist producing the film.
Due to the high production needs and short timeframe of delivery of video for this event, it was determined that an outside videographer was needed to assist in the production. These costs were in lieu of other expenses that would normally be incurred at a traditional State of the City event. In addition, the external videographer produced 23% of the total production. The city followed procurement guidelines in determining which videographer to hire for this event and was ultimately selected based on lowest cost.
-Tammy Vo | City of Goodyear | Director of Communications
The city says Fox 10 meteorologist Cory McCloskey was not compensated for his appearance in the film. As for the iconic clips from The Wizard of Oz and Rocky, spokesperson Tammy Vo states: “The short movie clips in the video were utilized under the Fair Use doctrine.”
The City of Goodyear has a variety of shorter State of the City videos on its YouTube channel. While we cannot find a link to the State of the City video shown at Harkins’ Estrella Falls 16 on February 26th, State 48 News obtained the video through a records request.
As described to State 48, the screening at Harkins Theatres was an invitation-only event. The city confirms guests included local elected officials, members of the state legislative delegation, and regional community stakeholders. The city also invited chosen LEAD alumni, recognized community members, and individuals serving on city boards and commissions. According to the city, invitees were selected based on their ongoing partnership with Goodyear and their investment in the community—consistent with typical invitations to the State of the City, which often depend on space availability.
Attendees were not asked to pay for admission to this event. The event was held at the Harkin’s to accommodate the amount of attendees in a venue that could also accommodate playing a long-format video.
It is not unusual for a city to host a State of the City event in a variety of venues depending on the specific needs and format of the event.
The event highlighted of the city’s successes over the past year while also providing a vison for the future. Not only was this used to inform and educate the attendees of the in-person event, but also to inform and educate the public through online accessibility.
-Tammy Vo | City of Goodyear | Director of Communications
The City of Goodyear celebrated major 2024 milestones including the continued development of its downtown GSQ area with new restaurants and businesses, the launch of its inaugural Hispanic Heritage event “Ritmos y Raices,” and statewide recognition for its Juneteenth Family Day.
What does the City of Goodyear plan to do this budget season? Next week, on June 9th, Goodyear will hold a public hearing to propose a 2% increase in primary property taxes—adding $303,271 to city revenues, excluding new construction and voter-approved bonds.
According to the Daily Independent, City Manager Wynette Reed told the council the proposed budget holds the tax rate steady, maintains current service levels, supports city staff, and advances priorities in the Strategic Plan.
As for council pay: This spring, nearly 60% of Goodyear voters reaffirmed charter rules requiring public approval for any raise above 5.1%. That vote followed a November 2023 recommendation from a volunteer panel for a 5% increase—which the council unanimously approved. Among 11 benchmark cities, Goodyear’s mayor and council reportedly ranked near the bottom in compensation.
Statewide, city budgets range from under $100 million to nearly $8 billion. State of the City events offer a clear window into municipal priorities—and spending.
While the complainant who flagged concerns about Goodyear’s event raises valid points, we find spending on these events varies widely across Arizona’s cities and towns.
Standard Practice, Standard Cost: Cities Budget for These Annual Events
From polished productions to no-frills forums—here’s how a few Arizona cities and towns vary in their approach to State of the City addresses.
In 2025, Scottsdale's was held at the Fairmont Scottsdale Princess, with tickets ranging from $100 to $2,000 for a premier corporate table.
In Peoria, Mayor Jason Beck welcomed more than 550 attendees to his second State of the City—once again held at Christ’s Church of the Valley and featuring a video premiere. The repeated choice of a church as the venue drew criticism from SecularAZ, a group advocating for church-state separation, which argued the setting blurs constitutional lines and risks alienating non-Christian residents.
Chandler’s 2025 State of the City was held at the Chandler Center for the Arts. The event was free and open to the public, featuring a reception with food samples from local restaurants, interactive displays, and a themed lobby experience.
Tucson Mayor Regina Romero delivered her annual Report to Tucsonans on January 7th at the Tucson Convention Center. The event was free and open to the public. Mayor Romero highlighted past accomplishments and outlined future plans, including Proposition 414—a proposed half-cent sales tax to fund public safety and community initiatives. But on March 11th, voters overwhelmingly rejected the measure she touted, with nearly 70% voting no—a clear signal of concerns over rising tax burdens and fiscal priorities. The City of Tucson will hold a public hearing on June 3rd to consider a 6.61% increase in primary property taxes—bringing in an additional $1.29 million.
Surprise Mayor Kevin Sartor delivered his first State of the City on April 24th at City Hall. The event featured a short video themed “Moving Forward Together,” highlighting progress on strategic priorities and community involvement. The evening wrapped with free refreshments, appetizers, desserts, and live music.
Yuma Mayor Doug Nicholls delivered the 2025 State of the City address on April 8th at the Arizona Western College Yuma Campus, highlighting local priorities and ongoing initiatives. The City of Yuma’s calling its budget Progress With Purpose—a $547 million blueprint.
Phoenix, the nation’s fifth-largest city, heard from Mayor Kate Gallego on May 20 as she delivered her 2025 State of the City address at the Sheraton Phoenix Downtown. The mayor’s speech was streamed on the city’s YouTube page, and outlined efforts to tackle challenges, expand opportunities, and invest in infrastructure for long-term economic growth.
The City of Phoenix officially adopted its Fiscal Year 2025–2026 budget with an 8-1 vote, approving a record-setting $7.86 billion—the largest municipal budget in Arizona. Phoenix blames state laws cutting rental and income taxes for shrinking city revenues and limiting local control.
The General Fund budget outlook for FY 2025-26 reflects a baseline deficit of $(36) million and projected shortfalls in FY 2026-27 of $(83)M and in FY 2027-28 of $(6)M primarily due to the State's actions to eliminate residential rental sales tax (SB 1311) and to lower the individual income tax rate to the flat tax of 2.5 percent (SB 1828). These actions by the State limit local control and will reduce ongoing City revenues going forward. -City of Phoenix | February 2025
The City of Phoenix is proposing a 1.22% increase in primary property taxes, totaling an additional $2.66 million over last year. While the secondary property tax rate will remain unchanged at $0.8141 per $100 of assessed valuation, individual impacts may vary. A public hearing on the proposed increase is scheduled for June 18, 2025, at 2:30 p.m.
➡️ Bottom line: Most cities consider State of the City addresses a routine part of their annual communications and budgeting process.
But it could be more…
Maricopa County wants you to know—it could be taxing you more. For FY 2026, the county’s tax levy is $269.5 million below what state law allows, meaning it’s leaving a hefty chunk of potential tax revenue on the table.
On Monday, June 23rd at 9:30am, the Maricopa County Board of Supervisors will hold a public hearing and vote on final approval of the FY 2026 budget, which includes a lower overall tax rate.
However, due to rising property values, the Board of Supervisors could vote to raise primary property taxes. “The Board does not control property values. However, as property values increase, the tax levy for existing property owners will also increase. And as a result, some property owners may be subject to a slight tax increase due to positive property value market adjustments in a growing economy.”
Primary property tax increase of $12,233,134 or 1.81%, which would raise primary property taxes on a $100,000 home from $113.85 to $115.91.
No secondary property tax increase for Flood Control District or Library District.
-Maricopa County | News Flash | May 27, 2025
The Maricopa County Board of Supervisors is scheduled to vote on the final tax levy proposal on August 18, 2025. This meeting follows the adoption of the FY 2026 budget and is required under state law.
In Mohave County, officials are eyeing a 6.96% property tax increase. While the Board doesn’t control property values, rising values tied to a growing economy mean many residents could see higher tax bills—even without a change in the tax rate.
Primary property tax increase of $3,138,184 or 6.96%, which would raise primary property taxes on a $100,000 home from $169.66 to $181.47.
Secondary property tax increase of $508,817 or 4.41%, which would increase secondary property taxes on a $100,000 home from $47.89 to $50.00. (Flood Control District)
In Pima County, the proposed property tax hike would be the second rate increase in seven years. Officials point to 11 straight years of economic growth and rising property values, which, along with paying down debt, allowed the Board to cut the overall tax rate by 36 cents since the Great Recession—claiming this has saved property owners hundreds of millions through conservative budgeting.
Just how much of an increase? To ensure financial stability and meet all County needs, the recommended $1.76 billion budget includes a 2.5% increase in the total County property tax rate.
Pima County’s FY 2026 budget prioritizes road repairs, affordable housing, early education, and capital projects totaling over $200 million. It includes a phased 5% employee pay raise, shifts preschool funding to the County Library, and proposes lowering the reserve fund from 17% to 15% to free up resources. Savings may be set aside to buffer against unstable federal funding.
“The past several months has seen federally funded programs in the County subjected to stop-and-start funding notices as federal policies change abruptly, whether due to changes in policy, reversing of those changes, or legal action. The County Administrator is recommending any savings in County spending in the last quarter of the fiscal year be set aside in case the savings are needed to fill gaps due to federal funding changes.”
A tax rate increase means your local government has decided to charge a higher percentage on the value of your property. But even if the tax rate stays the same or goes down, your property tax bill can still go up if your home's value increases. That’s because property taxes are based on both the rate and the assessed value of your property—so if your home is worth more, you’ll likely pay more.
For a comprehensive overview of property tax rates across Arizona's 15 counties, including detailed information on exemptions, valuation procedures, and relief programs, visit the Arizona Department of Revenue's Property Tax page: azdor.gov/business/property-tax.