Presentation

Proposed Budget Update
Fiscal Year 2026/27
Mesa City Council
Presented By:
Date: 
Brian A. Ritschel – Management & Budget Director
Samuel Schultz – Management & Budget Assistant Director
April 30, 2026

Elements of the Budget Cycle
1. Departments Prepare 
Annual Work Plans 
2. Forecast Revenues and 
Expenditures 
3. City Council Reviews 
Strategic Plan & 
Establishes Budget 
Priorities
4. Base Budget 
Established
5. Departments 
Submit Base Budget 
and Funding Requests
6. OMB/City Manager 
Review Department 
Budgets & Performance 
Plans
7. Community Budget 
Meetings – Public 
Input
8. City Manager Submits 
Proposed Budget to City 
Council
9. City Council Reviews 
Department Budgets and 
Significant Issues
10. City Council 
Establishes Tentative 
Budget
11. City Council 
Adopts Final Budget
12. Departments Review 
Progress Toward 
Achieving Annual Work 
Plan Outcomes
Operational Planning is embedded 
throughout the budget process and 
continues throughout the year.   
April 2026
May 18, 2026
June 1, 2026
April 2, 2026
2

Recent Recognitions
BEST RUN CITY IN ARIZONA
- WalletHub
TOP 10 DIGITAL CITY
- Center for Digital
Government
TRIPLE CROWN WINNER
- Government Finance
Officers Association
TOP 10 BEST BIG CITIES TO LIVE IN
- U.S. News
COMMUNICATIONS TEAM OF THE YEAR
- Public Relations Society
of America
FOUR GOLDEN PROSPECTOR AWARDS
- Arizona Association for
Economic Development
3

General Governmental 
Funds

General Governmental Funds –
FY 25/26 Adopted Budget Forecast (May 19, 2025)
Projected
Budget
Forecast
Forecast
Forecast
Forecast
FY 24/25
FY 25/26*
FY 26/27
FY 27/28
FY 28/29
FY 29/30
Beginning Reserve Balance
$247.5
$242.9
$191.5
$152.8
$114.9
$91.6
Total Sources
$701.5
$693.5
$678.6
$698.3
$727.8
$749.3
Total Uses
$706.0
$744.9
$717.3
$736.2
$751.1
$768.2
Net Sources and Uses
($4.6)
($51.4)
($38.7)
($37.9)
($23.3)
($18.9)
Ending Reserve Balance
$242.9
$191.5
$152.8
$114.9
$91.6
$72.7
Ending Reserve Balance Percent**
33.8%
26.7%
20.8%
15.3%
11.9%
9.2%
*Budgeted sources and uses include $26.1M in carryover funds.
data as of May 2025
**As a % of all Next Year's uses of funding
dollars in millions
5

General Governmental Funds –
FY 25/26 Forecast Update (February 26, 2026)
6

General Governmental Funds –
FY 26/27 Proposed Budget (April 2, 2026)
Actuals
Projected
Budget
Forecast
Forecast
Forecast
Forecast
FY 24/25
FY 25/26
FY 26/27
FY 27/28
FY 28/29
FY 29/30
FY 30/31
Beginning Reserve Balance
$247.5
$264.3
$235.3
$204.2
$167.7
$145.5
$147.2
Total Sources
$733.6
$703.4
$701.7
$716.6
$748.3
$779.2
$815.9
Total Uses
$716.8
$732.4
$732.7
$753.1
$770.5
$777.4
$802.2
Net Sources and Uses
$16.8
($29.0)
($31.1)
($36.5)
($22.2)
$1.8
$13.7
Ending Reserve Balance
$264.3
$235.3
$204.2
$167.7
$145.5
$147.2
$160.9
Ending Reserve Balance Percent*
36.1%
32.1%
27.1%
21.8%
18.7%
18.4%
19.3%
data as of March 2026
*As a % of all Next Year's uses of funding
dollars in millions
7

General Governmental Funds –
FY 26/27 Proposed Budget Update (April 30, 2026)
Actuals
Projected
Budget
Forecast
Forecast
Forecast
Forecast
FY 24/25
FY 25/26
FY 26/27
FY 27/28
FY 28/29
FY 29/30
FY 30/31
Beginning Reserve Balance
$247.5
$264.3
$244.0
$208.1
$168.3
$135.8
$127.4
Total Sources
$733.6
$708.3
$731.4
$718.1
$749.8
$780.7
$817.5
Total Uses
$716.8
$728.6
$767.3
$757.9
$782.2
$789.1
$814.2
Net Sources and Uses
$16.8
($20.3)
($35.9)
($39.8)
($32.4)
($8.4)
$3.3
Ending Reserve Balance
$264.3
$244.0
$208.1
$168.3
$135.8
$127.4
$130.8
Ending Reserve Balance Percent*
36.3%
31.8%
27.5%
21.5%
17.2%
15.7%
15.5%
data as of April 2026
*As a % of all Next Year's uses of funding
dollars in millions
8

General Governmental Funds –
Changes from FY 25/26 Adopted Budget
9
Adopted Budget
FY 25/26
FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31*
Budget
Forecast Forecast Forecast Forecast Forecast
Net Sources and Uses
($51.4)
($38.7)
($37.9)
($23.3)
($18.9)
($11.7)
Ending Reserve Balance
$191.5
$152.8
$114.9
$91.6
$72.7
$61.0
Ending Reserve Balance Percent**
26.7%
20.8%
15.3%
11.9%
9.2%
7.4%
*FY 30/31 was outside of the 5-year forecast presented with FY 25/26 Budget Adoption
data as of May 2025
**As a % of all Next Year's uses of funding
dollars in millions
Proposed Budget Update
FY 25/26
FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31
Projected
Budget
Forecast Forecast Forecast Forecast
Net Sources and Uses
($20.3)
($35.9)
($39.8)
($32.4)
($8.4)
$3.3
Ending Reserve Balance
$244.0
$208.1
$168.3
$135.8
$127.4
$130.8
Ending Reserve Balance Percent**
31.8%
27.5%
21.5%
17.2%
15.7%
15.5%
data as of April 2026
**As a % of all Next Year's uses of funding
dollars in millions

Public Safety
• Police Department Staffing
– Three academies for 110 recruits
– Civilianization of positions
• Mesa Fire & Medical Staffing
– Two academies
– Cancer screening
– Emergency Transport Service conversion of a 
12-hour to a 24-hour shift
• Mesa Public Safety Support Department
– Public Safety Communications Shift Supervisor
• City Attorney’s Office
– Assistant City Prosecutor II
“Elevate Mesa”
10

Recruitment & 
Retention of 
Quality 
Employees
• Salary market adjustment and 5% step 
increase for all eligible sworn personnel 
covered by a memorandum of understanding 
(MOU)
• Up to a 4% step pay increase for all eligible 
employees not covered by a MOU effective 
the July 16, 2026 paycheck.
• Vacation and sick leave policy revisions
“Elevate Mesa”
11

Utility Fund

Utility Fund – FY 2025/26 Adopted Budget
(May 19, 2025)
Projected
Budget
Forecast
Forecast
Forecast
Forecast
FY 24/25
FY 25/26
FY 26/27
FY 27/28
FY 28/29
FY 29/30
Beginning Reserve Balance
$117.0
$104.4
$76.0
$51.8
$32.9
$31.6
Total Sources
$510.9
$535.0
$574.3
$619.8
$663.5
$709.8
Total Uses
$523.5
$563.4
$598.5
$638.7
$664.8
$690.4
Net Sources and Uses
($12.6)
($28.4)
($24.2)
($18.9)
($1.3)
$19.4
Ending Reserve Balance
$104.4
$76.0
$51.8
$32.9
$31.6
$51.0
Ending Reserve Balance Percent*
18.5%
12.7%
8.1%
4.9%
4.6%
7.0%
data as of May 2025
*As a % of all Next Year's uses of funding
dollars in millions
13

Utility Fund – FY 2025/26 Forecast Update
(February 26, 2026)
Actuals
Projected
Forecast
Forecast
Forecast
Forecast
Forecast
FY 24/25
FY 25/26
FY 26/27
FY 27/28
FY 28/29
FY 29/30
FY 30/31
Beginning Reserve Balance
$117.0
$119.4
$95.9
$86.0
$79.4
$92.6
$121.0
Total Sources
$510.8
$534.4
$572.1
$617.4
$662.1
$710.0
$763.4
Total Uses
$508.4
$558.0
$581.9
$624.1
$648.9
$681.7
$728.1
Net Sources and Uses
$2.4
($23.5)
($9.8)
($6.7)
$13.2
$28.4
$35.3
Ending Reserve Balance
$119.4
$95.9
$86.0
$79.4
$92.6
$121.0
$156.3
Ending Reserve Balance Percent*
21.4%
16.5%
13.8%
12.2%
13.6%
16.6%
20.3%
data as of February 2026
*As a % of all Next Year's uses of funding
dollars in millions
14

Utility Fund – FY 2026/27 Proposed Budget
(April 2, 2026)
Actuals
Projected
Budget
Forecast
Forecast
Forecast
Forecast
FY 24/25
FY 25/26
FY 26/27
FY 27/28
FY 28/29
FY 29/30
FY 30/31
Beginning Reserve Balance
$117.0
$119.4
$96.6
$85.0
$84.1
$100.3
$125.5
Total Sources
$510.8
$526.8
$569.5
$616.1
$662.9
$715.8
$771.5
Total Uses
$508.4
$549.6
$581.1
$617.0
$646.7
$690.6
$734.1
Net Sources and Uses
$2.4
($22.8)
($11.6)
($0.9)
$16.2
$25.2
$37.4
Ending Reserve Balance
$119.4
$96.6
$85.0
$84.1
$100.3
$125.5
$162.9
Ending Reserve Balance Percent*
21.7%
16.6%
13.8%
13.0%
14.5%
17.1%
20.9%
data as of March 2026
*As a % of all Next Year's uses of funding
dollars in millions
15

Utility Fund – FY 26/27 Proposed Budget
Update (April 30, 2026)
Actuals
Projected
Budget
Forecast
Forecast
Forecast
Forecast
FY 24/25
FY 25/26
FY 26/27
FY 27/28
FY 28/29
FY 29/30
FY 30/31
Beginning Reserve Balance
$117.0
$119.4
$101.1
$85.2
$83.6
$99.7
$124.7
Total Sources
$510.8
$523.8
$568.3
$615.7
$662.6
$715.4
$771.1
Total Uses
$508.4
$542.1
$584.1
$617.4
$646.5
$690.4
$733.8
Net Sources and Uses
$2.4
($18.3)
($15.9)
($1.6)
$16.1
$25.0
$37.3
Ending Reserve Balance
$119.4
$101.1
$85.2
$83.6
$99.7
$124.7
$162.0
Ending Reserve Balance Percent*
22.0%
17.3%
13.8%
12.9%
14.4%
17.0%
20.8%
data as of April 2026
*As a % of all Next Year's uses of funding
dollars in millions
16

Utility Fund –
Changes from FY 25/26 Adopted Budget
17
Adopted Budget
FY 25/26
FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31*
Budget
Forecast Forecast Forecast Forecast Forecast
Net Sources and Uses
($28.4)
($24.2)
($18.9)
($1.3)
$19.5
$33.3
Ending Reserve Balance
$76.0
$51.8
$32.9
$31.6
$51.0
$84.3
Ending Reserve Balance Percent**
11.9%
8.1%
4.9%
4.6%
7.0%
11.2%
*FY 30/31 was outside of the 5-year forecast presented with FY 25/26 Budget Adoption
data as of May 2025
**As a % of all Next Year's uses of funding
dollars in millions
Proposed Budget Update
FY 25/26
FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31
Projected
Budget
Forecast Forecast Forecast Forecast
Net Sources and Uses
($18.3)
($15.9)
($1.6)
$16.1
$25.0
$37.3
Ending Reserve Balance
$101.1
$85.2
$83.6
$99.7
$124.7
$162.0
Ending Reserve Balance Percent**
17.3%
13.8%
12.9%
14.4%
17.0%
20.8%
data as of April 2026
**As a % of all Next Year's uses of funding
dollars in millions

5-Year Capital 
Improvement Program

Fiscal Years 2027 – 2031
19
FY 26/27
FY 27/28
FY 28/29
FY 29/30
FY 30/31
General Government
$26.9
$4.9
$45.3
$46.3
-
Parks & Culture
$72.6
$53.2
$46.0
$23.8
$10.0
Public Safety
$147.9
$85.9
$70.8
$46.5
$22.9
Transportation
$200.1
$134.1
$79.7
$34.8
$46.6
Utilities
$328.9
$185.1
$172.0
$236.9
$249.1
Total
$776.4
$463.2
$414.0
$388.3
$328.7
FY 26/27
FY 27/28
FY 28/29
FY 29/30
FY 30/31
Operations & Maintenance
$3.8
$9.8
$12.7
$12.7
$21.5

Fiscal Years 2027 – 2031
20
FY 26/27
FY 27/28
FY 28/29
FY 29/30
FY 30/31
Enterprise - Cash
$9.2
$4.7
$3.4
$3.1
$3.5
General - Cash
$43.3
$1.5
$1.2
$3.3
$1.8
General Obligation Bonds
$224.9
$181.3
$156.0
$95.9
$61.2
Grants
$16.2
$27.0
$5.3
$1.4
$3.6
Joint Ventures
$28.2
$24.1
$18.5
$51.3
$99.0
Restricted
$126.3
$52.1
$43.9
$16.8
$5.4
Utility Pledge & Capacity Fee
$328.4
$172.6
$185.7
$216.4
$154.3
Total
$776.4
$463.2
$414.0
$388.3
$328.7

Fiscal Years 2027 – 2031
21

Finalizing the 
Budget
• Carryover
– State statute requires that all expenses 
occurring in the fiscal year be included in 
the annual legal appropriation (budget)
– Expenditures related to projects and 
contracts that will not be completed by 
year-end will be added to the FY 2026/27 
budget
• FY 2026/27 budget included $446M
– Operating and Lifecycle: $169.1M
– Capital projects: $276.9M
• Contingency
– Included in the budget to allow capacity for 
unanticipated expenditures or to allow for the 
spending of unanticipated revenues
22

FY 2026/27 Budget Calendar
May 18
- Annual Budget, Tentative Adoption
June 1
- Capital Improvement Program, Public Hearing and Adoption 
- Annual Budget and Secondary Property Tax Levy, Public Hearing
- Annual Budget, Final Adoption
July 20
- Secondary Property Tax Levy Adoption
23