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CITY OF TEMPE Meeting Date: 6/4/2026 REQUEST FOR COUNCIL ACTION Agenda Item: 2C ACTION: Introduce and hold the first public hearing to adopt the fiscal year 2026/27 Property Tax Ordinance. The second and final public hearing is scheduled for June 25, 2026. (Ordinance No. O2026.26) FISCAL IMPACT: Pursuant to Arizona Revised Statutes §42-17151 and in conjunction with the fiscal year (FY) 2026/27 Annual Budget and Capital Improvements Program, the attached ordinance establishes the property tax rate for the FY 2026/27 budget year at $2.5626 per $100 of assessed valuation. Based upon levy information received from the Maricopa County Assessor's Office, City staff estimates that the $2.5626 tax rate will generate $68,892,357 including $23,794,713 of primary levy from a $0.8851 primary tax rate and $45,097,644 of secondary levy from a $1.6775 secondary tax rate. RECOMMENDATION: Adopt Ordinance No. O2026.26. BACKGROUND INFORMATION: As the final budget consideration for FY 2026/27, City Council is required to set the property tax levy and resulting rate for the 2026/27 fiscal year. The total City property tax rate will increase in FY 2026/27 from the current $2.4593 per $100 of assessed valuation to the proposed $2.5626. The overall levy on existing properties will increase by 5%. The primary property tax levy amount as indicated in the Annual Budget reflects the allowable levy limit as estimated by the Maricopa County Assessor’s Office. Since the City intends to adopt a levy equal to the primary levy limit, the provisions of Truth in Taxation are invoked. As required by statute, two published notices, a press release and a Truth in Taxation hearing have preceded this public hearing, appearing in the form and manner explicitly prescribed by A.R.S. §42-17107. ATTACHMENTS: 1. ORDINANCE.DOCX STAFF CONTACT(S): Robert Baer, Municipal Budget Director, (480) 350-8697 Department Director: Lisette Camacho, Deputy City Manager - Chief Financial Officer Legal review by: Dave Park, Sr Assistant City Attorney Prepared by: Benicia Benson, Administrative Analyst