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FY2026 Q2 Revenue Update
Paul Soldinger, Chief Financial Officer
February 3, 2026
2nd Quarter of FY2026
(Oct – Dec 2025)
Revenue Update
Net Taxable Activity
• Total Net Taxable
Activity for Quarter 2
of FY26 was
$167.4M
• Decreased by
$11.9M, or 7.1%,
from the same
period in FY26
2nd Quarter Revenue Update
Total TPT Collections
• Includes all TPT
reporting categories
for all funds
2nd 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
4th quarter
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
4,892,878
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
2nd Quarter Revenue Update
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Thousands
Retail - TPT Collections by Fiscal Year
FY2022
FY2023
FY2024
FY2025
FY2026
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
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
2,833,986
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
2nd Quarter Revenue Update
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
FY2024
FY2025
FY2026
Millions
Retail TPT - without Food Tax
1st Quarter
2nd Quarter
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%
Retail sales - without food sales
Retail Sales – Remote Sellers
• Remote sales (within
retail sales) may
better indicate
online shopping
trends
2nd 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%
Total Remote Sellers
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
FY2024
FY2025
FY2026
Retail TPT - Remote Sellers
1st quarter
2nd Quarter
Construction
• Includes Prime
Contracting and
Speculative Builders
2nd Quarter Revenue Update
Large Taxable Event & Audit Collection in FY23
$-
$200
$400
$600
$800
$1,000
$1,200
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Thousands
Construction - TPT Collections by Fiscal Year
FY2022
FY2023
FY2024
FY2025
FY2026
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
4th quarter
Construction
Actual TPT
Projection
% of Projection
1st quarter
696,692
577,499
20.6%
2nd quarter
704,959
588,569
19.8%
3rd quarter
599,639
4th quarter
610,707
Totals:
2,376,414
FY2026 Projection to Actual
Utilities & Communications
• Includes Water, Sewer, Electricity,
Cable, Natural Gas, and Internet
Services
2nd Quarter Revenue Update
$-
$50
$100
$150
$200
$250
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Thousands
Utilities - TPT Collections by Fiscal Year
FY2022
FY2023
FY2024
FY2025
FY2026
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
4th quarter
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
378,111
4th quarter
381,906
Totals:
1,695,247
FY2026 Projection to Actual
Real Estate
•
Includes Commercial Rentals (no
longer includes long-term residential)
2nd Quarter Revenue Update
February 2025 - First month without long-term
residential rental tax
$-
$50
$100
$150
$200
$250
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Thousands
Real Estate - TPT Collections by Fiscal Year
FY2022
FY2023
FY2024
FY2025
FY2026
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
4th quarter
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
242,244
4th quarter
164,090
Totals:
681,444
FY2026 Projection to Actual
Restaurants and Bars
• Includes Local
Restaurants and
Bars
2nd Quarter Revenue Update
$-
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Thousands
Restaurants/Bars - TPT Collections by Fiscal Year
FY2022
FY2023
FY2024
FY2025
FY2026
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
4th quarter
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
355,815
4th quarter
368,082
Totals:
1,309,217
FY2026 Projection to Actual
Services
• Includes Hotels, Golf,
Tours, and Short-Term
Residential Rentals
2nd Quarter Revenue Update
$-
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Thousands
Services - TPT Collections by Fiscal Year
FY2022
FY2023
FY2024
FY2025
FY2026
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
4th quarter
Services
Actual TPT
Projection
% of Projection
1st quarter
328,474
280,341
17.2%
2nd quarter
536,694
430,956
24.5%
3rd quarter
483,083
4th quarter
496,660
Totals:
1,691,040
FY2026 Projection to Actual
State Shared Revenue
2nd Quarter Revenue Update
General Fund Revenues
• Projected $889K
• Collected $880k*
General Fund Revenues
• Projected $1.17M
• Collected $1.15M
$400
$350
$300
$250
$200
$150
$100
$50
Jul
1
Aug
2
Sep
3
Oct
4
Nov
5
Dec
6
Jan
7
Feb
8
Mar
9
Apr
10
May
11
Jun
12
Thousands
State Shared Revenue - Sales Tax
2022
2023
2024
2025
2026
$600
$550
$500
$450
$400
$350
$300
$250
$200
Jul
1
Aug
2
Sep
3
Oct
4
Nov
5
Dec
6
Jan
7
Feb
8
Mar
9
Apr
10
May
11
Jun
12
Thousands
State Shared Revenue - Income Tax
2022
2023
2024
2025
2026
*San Tan Valley began receiving State shared revenues in December 2025, reducing Fountain Hills’ shares of TPT &
HURF revenues
State Shared Revenue
2nd Quarter Revenue Update
Streets Fund Revenues
• Projected $287K
• Collected $321K
Streets Fund Revenues
• Projected $467K
• Collected $460K*
$210
$190
$170
$150
$130
$110
$90
$70
$50
Jul
1
Aug
2
Sep
3
Oct
4
Nov
5
Dec
6
Jan
7
Feb
8
Mar
9
Apr
10
May
11
Jun
12
Thousands
Highway User Revenue Fund (HURF)
2022
2023
2024
2025
2026
*San Tan Valley began receiving State shared revenues in December 2025, reducing Fountain Hills’ shares of TPT &
HURF revenues
$150
$125
$100
$75
$50
$25
Jul
1
Aug
2
Sep
3
Oct
4
Nov
5
Dec
6
Jan
7
Feb
8
Mar
9
Apr
10
May
11
Jun
12
Thousands
State Shared Revenue - Vehicle License Tax
2022
2023
2024
2025
2026
Questions?