3QFY2026 Presentation

Town of Fountain Hills — Town Council (2026-05-19)

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FY2026 Q3 Revenue Update
Paul Soldinger, Chief Financial Officer
May 19, 2026

3rd Quarter of  FY2026 
(Jan – Mar 2026) 
Revenue Update

Net Taxable Activity
• Total Net Taxable 
Activity for Quarter 3
of FY26 was 
$204.5M
• Increased by 
$11.9M, or 5.8%, 
from the same 
period in FY26
3rd Quarter Revenue Update

Total TPT Collections
• Includes all TPT 
reporting categories 
for all funds
3rd Quarter Revenue Update
FY2024
FY2025
FY2026
Change from 
FY2025
1st quarter
4,188,306
     
4,250,022
     
4,209,368
                 
-0.96%
2nd quarter
5,403,449
     
5,035,683
     
4,831,425
                 
-4.06%
3rd quarter
5,582,509
     
5,496,543
     
5,726,149
                 
4.18%
4th quarter
Totals:
Actual TPT Revenues
Actual TPT
Projection
% of Projection
1st quarter
4,209,368
                   
3,843,441
                
9.5%
2nd quarter
4,831,425
                   
4,549,742
                
6.2%
3rd quarter
5,726,149
                   
4,892,878
                
17.0%
4th quarter
4,727,661
                
Totals:
18,013,722
             
FY2026 Projection to Actual

Retail Sales
• Includes Local and 
Online Retail Sales, 
Food and Use Tax
3rd Quarter Revenue Update
FY2024
FY2025
FY2026
Change from 
FY2025
1st quarter
2,307,337
     
2,258,775
     
2,255,637
                 
-0.14%
2nd quarter
2,654,837
     
2,639,578
     
2,654,588
                 
0.57%
3rd quarter
2,945,812
     
3,001,273
     
3,140,878
                 
4.65%
4th quarter
Totals:
Retail Sales 
Actual TPT
Projection
% of Projection
1st quarter
2,255,637
                   
2,103,817
                
7.2%
2nd quarter
2,654,588
                   
2,616,341
                
1.5%
3rd quarter
3,140,878
                   
2,833,986
                
10.8%
4th quarter
2,706,216
                
Totals:
10,260,360
             
FY2026 Projection to Actual

Retail Sales – without food sales
• Retail sales 
excluding food tax 
may better indicate 
local shopping 
trends
3rd Quarter Revenue Update
FY2024
FY2025
FY2026
Change from 
FY25
1st Quarter
1,858,340
                      
1,817,463
           
1,848,555
           
1.71%
2nd Quarter
2,142,377
                      
2,134,130
           
2,135,426
           
0.06%
3rd Quarter
2,296,515
                      
2,354,760
           
2,481,521
           
5.38%
Retail sales - without food sales

Retail Sales – Remote Sellers
• Remote sales (within 
retail sales) may 
better indicate 
online shopping 
trends
3rd Quarter Revenue Update
FY2024
FY2025
FY2026
Change from 
FY25
1st quarter
359,792
                                 
382,435
                
446,973
            
16.88%
2nd Quarter
483,956
                                 
468,366
                
540,542
            
15.41%
3rd Quarter
455,512
                                 
533,043
                
599,699
            
12.50%
Total Remote Sellers

Construction
• Includes Prime 
Contracting and 
Speculative Builders
3rd Quarter Revenue Update
Large Taxable Event & Audit Collection in FY23
FY2024
FY2025
FY2026
Change from 
FY2025
1st quarter
637,858
         
582,874
         
696,692
                      
19.53%
2nd quarter
966,106
         
745,598
         
704,959
                      
-5.45%
3rd quarter
811,500
         
597,941
         
767,747
                      
28.40%
4th quarter
Totals:
Construction
Actual TPT
Projection
% of Projection
1st quarter
696,692
                       
577,499
                    
20.6%
2nd quarter
704,959
                       
588,569
                    
19.8%
3rd quarter
767,747
                       
599,639
                    
28.0%
4th quarter
610,707
                    
Totals:
2,376,414
                
FY2026 Projection to Actual

Utilities & Communications
• Includes Water, Sewer, Electricity, 
Cable, Natural Gas, and Internet 
Services
3rd Quarter Revenue Update
FY2024
FY2025
FY2026
Change from 
FY2025
1st quarter
499,547
         
553,976
         
533,086
                      
-3.77%
2nd quarter
440,338
         
456,112
         
450,222
                      
-1.29%
3rd quarter
366,577
         
364,324
         
352,903
                      
-3.13%
4th quarter
Totals:
Utilities & Communications
Actual TPT
Projection
% of Projection
1st quarter
533,086
                       
490,504
                    
8.7%
2nd quarter
450,222
                       
444,726
                    
1.2%
3rd quarter
352,903
                       
378,111
                    
-6.7%
4th quarter
381,906
                    
Totals:
1,695,247
                
FY2026 Projection to Actual

Real Estate
•
Includes Commercial Rentals (*no 
longer includes long-term residential*)
3rd Quarter Revenue Update
February 2025 - First month without long-term 
residential rental tax
FY2024
FY2025
FY2026
Change from 
FY2025
1st quarter
263,394
         
210,949
         
143,223
                      
-32.11%
2nd quarter
292,549
         
304,767
         
180,773
                      
-40.68%
3rd quarter
494,045
         
299,016
         
218,692
                      
-26.86%
4th quarter
Totals:
Real Estate
Actual TPT
Projection
% of Projection
1st quarter
143,223
                       
117,747
                    
21.6%
2nd quarter
180,773
                       
157,363
                    
14.9%
3rd quarter
218,692
                       
242,244
                    
-9.7%
4th quarter
164,090
                    
Totals:
681,444
                    
FY2026 Projection to Actual

Restaurants and Bars
• Includes Local 
Restaurants and 
Bars
3rd Quarter Revenue Update
FY2024
FY2025
FY2026
Change from 
FY2025
1st quarter
252,574
         
252,750
         
251,363
                      
-0.55%
2nd quarter
398,130
         
330,995
         
341,597
                      
3.20%
3rd quarter
396,098
         
430,328
         
448,269
                      
4.17%
4th quarter
Totals:
Restaurants & Bars
Actual TPT
Projection
% of Projection
1st quarter
251,363
                       
273,533
                    
-8.1%
2nd quarter
341,597
                       
311,787
                    
9.6%
3rd quarter
448,269
                       
355,815
                    
26.0%
4th quarter
368,082
                    
Totals:
1,309,217
                
FY2026 Projection to Actual

Services
• Includes Hotels, Golf, 
Tours, and Short-Term 
Residential Rentals
3rd Quarter Revenue Update
FY2024
FY2025
FY2026
Change from 
FY2025
1st quarter
227,440
         
390,269
         
328,474
                      
-15.83%
2nd quarter
650,848
         
557,727
         
536,694
                      
-3.77%
3rd quarter
568,398
         
765,103
         
796,424
                      
4.09%
4th quarter
Totals:
Services
Actual TPT
Projection
% of Projection
1st quarter
328,474
                       
280,341
                    
17.2%
2nd quarter
536,694
                       
430,956
                    
24.5%
3rd quarter
796,424
                       
483,083
                    
64.9%
4th quarter
496,660
                    
Totals:
1,691,040
                
FY2026 Projection to Actual

State Shared Revenue
3rd Quarter Revenue Update
General Fund Revenues
• Projected $931K
• Collected $950k*
General Fund Revenues
• Projected $1.17M
• Collected $1.15M
*San Tan Valley began receiving State shared revenues in December 2025, reducing Fountain Hills’ shares of TPT & 
HURF revenues

State Shared Revenue
3rd Quarter Revenue Update
Streets Fund Revenues
• Projected $341K
• Collected $358K
Streets Fund Revenues
• Projected $465K
• Collected $477K*
*San Tan Valley began receiving State shared revenues in December 2025, reducing Fountain Hills’ shares of TPT & 
HURF revenues

Questions?