Supporting Document (dcdc618e...)

CITY COUNCIl
REPORT
Item 23
m
i-*;
Meeting Date: 
Charter Provision:
Objective:
ACTION*
June 09,2026
Provide for the orderly government and administration of the
affairs of the City
AdoptBudgets
Truth in Taxation Hearing and Public Hearing on the Proposed FY 2026/27 Property Tax Levy
1) SOLICIT public testimony on the proposed fiscal year 2026/27 property tax levy; and
2) By a roll call vote, approve a motion to levy the proposed property taxes, with taxes to be assessed 
by ordinance on June 23, 2026.
BACKGROUND
The Arizona State Constitution and State law specify a two-tiered property tax system consisting of a 
primary property tax levy and a secondary property tax levy. The primary property tax levy is impbsed 
by cities and towns for general municipal purposes, while the secondary property tax levy is used only 
to retire the principal and interest or redemption charges on bond indebtedness.
Pursuant to Arizona Revised Statutes (A.R.S.) § 42-17104, a public hearing on any tax levy must be 
held at least 14 days prior to the actual levy of the tax. In addition, pursuant to A.R.S. § 42-17107 
and the City Charter, if the proposed primary property tax levy (excluding growth) exceeds the prior 
year's primary property tax levy, a Truth In Taxation (TNT) hearing with more stringent guidelines 
substitutes for the regular property tax hearing. Since the FY 2026/27 proposed primary property 
tax levy (excluding growth) exceeds the FY 2025/26 primary property tax levy, a TNT hearing and 
regular property tax hearing is required.
Primary Property Tax Lew (General Fund and Risk Management Fund Revenue) - Rate Expected
to Decrease:
The FY 2026/27 proposed primary property tax levy will support General Fund activities such as police 
and fire protection, operation and maintenance of parks and libraries, and other general 
governmental functions. The primary property tax levy also includes a repayment to the Risk
Page 1 of 4
* Note: This is a preliminaty report for AR.S. §'9-499.15 posting purposes oniy and may be updated for the finai City Councii Report in 
advance of the June 23, 2026, City Council meeting.
Blueink Bundle ID: hOmCZsHDhW

City Council Report | Public Hearing on Proposed FY 2026/27 Property Tax Levy
Management Fund reserve of $568,735 for tort liability claim payments made during calendar year 
2025.
For FY 2026/27, the city's total proposed primary property tax lew of $41.29 million is an increase of 
$1.02 million over the current fiscal year levy of $40.27 million. This increase consists of a $681,884 
increase due to the two-percent statutory adjustment, partially offset by the decreased tort liability 
claim payment compared to FY 2025/26 and a $339,535 increase due to new construction. Flowever, 
because of increases to the net assessed limited property values, the current primary property tax 
rate of $0.4891 is projected to decrease by $0.0090 to $0.4801 per $100 of assessed valuation in FY 
2026/27, consistent with the public notice.
As required by A.R.S. § 42-17103 related to final budget adoption (including proposed tax levies), the 
City published estimates of FY 2026/27 revenues and expenses, a Public Hearing Notice, and Truth in 
Taxation information in the Arizona Republic once a week for two consecutive weeks on Saturday, 
May 23, 2026 and Saturday, May 30, 2026.
Additionally, as required by A.R.S. § 9-499.15, the city posted and filed with the City Clerk notice of 
the proposed tax levy increase with the schedule of the proposed increase and a written report 
supporting the proposed increase by April 24, 2026, which is 60 days before City Council will consider 
whether to adopt the ordinance fixing the levy (scheduled for June 23, 2026).
Secondary Property Tax Lew (GO Bond Debt Repayment) - Rate Expected to Increase:
Under state law, cities and towns may levy a secondary property tax for the sole purpose of retiring 
the principal and interest or redemption charges on general obligation bonded indebtedness. A city 
or town may levy whatever'ambunt of secondary property taxes is necessary to pay general obligation 
debt service (and fees related to the debt issuances). Secondary property tax is subject to limitations 
under the Arizona Constitution related to bonded indebtedness.
For FY 2026/27, the City's proposed secondary property tax lew is forecast to increase by $1.85 
million, from $34.85 million in FY 2025/26 to $36.70 million, due to increased debt service payments. 
However, due to increases in net assessed limited property values, the current secondary property 
tax rate of $0.4233 is expected to increase by only $0.0034 to $0.4267 per $100 of assessed valuation 
in FY 2026/27.
The FY 2026/27 secondary property tax levy was calculated to ensure the reserve meets the limitation 
prescribed in A.R.S. § 35-458(A), requiring that the lew be net of all cash in excess of 10 percent of 
the annual payments of principal and interest in the current fiscal year from the previous year 
remaining in the fund or funds prescribed by A.R.S. § 35-458(8).
Combined Property Tax Lew and Taxpayer Impact:
The combined property tax levy is the aggregate of the primary and secondary levies. For FY 2026/27, 
the City's total proposed combined property tax levy is forecast to increase by approximately $2.87 
million, from $75.12 million in FY 2025/26 to $77.99 million in FY 2026/27.
Page 2 of 4
* Note: This Is a preliminary report for A.R.S. § 9.499.15 posting purposes only and may be updated for the final City Council Report In 
advanceiof the June 23, 2026, City Council meeting.
Bluelnk Bundle ID: hOmCZsHDhW

City Council Report | Public Hearing on Proposed FY 2026/27 Property Tax Levy
In FY 2026/27, property owners' tax bills will reflect a combined property tax rate of $0.9068, which 
is $0.0056 less than the FY 2025/26 combined rate of $0.9124. Limitations to the combined property 
tax rate is included in the City's adopted financial policies for debt management, which state that the 
combined tax rate will not exceed $1.50 per $100 of assessed value.
Based on the proposed combined rate, homeowners will pay approximately $90.68 for every 
$100,000 of net limited property assessed value in City property taxes. The Maricopa County 
Assessor's Office, not the City of Scottsdale, determines the limited property assessed values used to 
calculate property tax bills. According to the Maricopa County Assessor's Office, the median limited 
property assessed value for a single family residence in Scottsdale is $421,283.
About $0.15 of every dollar iri property taxes paid by Scottsdale property owners goes to City 
government and City general obligation debt repayment. The remaining $0.85 goes to public schools, 
Maricopa County, community colleges, and various special districts.
RESOURCE IMPACTS
For FY 2026/27, the proposed combined property tax rate is $0.9068, and the combined levy of $77.99 
million is detailed by tax tier and fund below:
Property Tax Levy Summary (in millions)
Tax
Tier
Estimated 
Tax Rate
General
Fund*
Risk
Management
Fund*
Debt Service 
Fund*
Total Property 
Tax Levy*
Primary
$0.48.01
$40.72M
$0.57M
$41.29M
Secondary
$0.4267
$36.70M
$36.70M
Combined
$0.9068
$40.72M
$0.57M
$36.70M
$77.99M
For comparison, the current FY 2025/26 property tax rate and levy and the FY 2026/27 proposed 
property tax rate and levy are below:
Page 3 of 4
■ Note: This is a preliminary report for A.R.S. § 9-499.1S'posting purposes only and may be updated for the final City Council Report In 
advance of the June 23,2026, City Council meeting.
Bluelnk Bundle ID: h0mC2sHDhW

City Council Report | Public Hearing on Proposed FY 2026/27 Property Tax Levy
Tax
Tier
FY 25/26 
Tax Rate
FY 25/26 
Tax Levy*
FY 26/27 
Est. Tax Rate
FY 26/27 
Est. Tax Levy*
Change in Levy
Primary
$0.4891
$40.27M
$0.4801
$41.29M
2.54%
Secondary
$0.4233
$34.85M
$0.4267
$36.70M
5.30%
Combined
$0.9124
$75.12M
$0.9068
$77.99M
3.82%
*Note: $ in millions; rounding differences may occur.
OPTIONS & STAFF RECOMMENDATION
Recommended Approach
Staff recommends that City Council hold a public hearirig and receive public testimony on the 
proposed levy and property tax rates, approve a motion to levy the proposed taxes and fix the levy 
by ordinance at the June 23, 2026 Council meeting (Arizona State law requires a period of at least 
fourteen days between the public hearing on the tax levy and adoption of the tax levy).
RESPONSIBLE DEPARTMENT(S)
City Treasurer Division
STAFF CQNTACT(S)
Scott Selin, Budget Department Director, 480-312-2603, SSelin@ScottsdaleAZ.gov
APPROVED BY
Somei^ftjdreu/s
Sonia Andrews, City Treasurer
(480) 312-2364, SAndrews@ScottsdaleAZ.gov
5/26/26 11:35 MST
Date
ATTACHMENTS
1. Schedule B from FY 2026/27 Tentative Budget
Page 4 of 4
* Note: This is a preliminary report for A.^S. § 9.499.15 posting purposes only and may be updated for the final City Council Report in 
advance of the June 23, 2026, City Council meeting.
Blueink Bundle ID: hOmCZsHDhW

Attachment 1
CITY OF SCOTTSDALE
Summary of Property Tax Levy and Property Tax Rate Information 
Fiscal Year 2026/2027 
Schedule B
Fiscal Year 
2025/2026
1. Maximumallowable primarypropertytaxlevy. A.R.S, §42-
17051(A) 
39,592,037
Fiscal Year 
2026/2027
40,723,413
2 Amount received from primary property'taxation in the 
current year in excess of the sum .of that year's maximum 
allowable primary-property tax levy. A.R.S. §42- 
17102(A)(18)
3. 
Property tax levy amounts
A. Prirhary'property taxes (includes tort judgments)*
Property tax judgment
B. Secondary property taxes
Property tax judgment
C. Total property tax levy amounts
4. 
Property taxes collected**
A. Primary property taxes
(1) 2025/2026 levy
(2) Prior years' levies
(3) Total primary property taxes
B. Secondary property taxes
(1) 2025/2026 levy
(2) Prior years' levies
(3) Total secondary property taxes
C. Total property taxes collected
5. 
Property tax rates 
A. City tax rate
(1) Primary property tax rate
f Property tax judgement
(2) Secondary property tax rate
Property tax judgement
(3) Total city tax rate
40,270,725
34,851,032.
75,121,757
40,270,725
407,234
40,677,959
34,851,032
34,851,032
75,528,991
0.4891
0.4233
0.9124
41,292,148
36,697,999
77,990,147
0.4801
0.4267
0.9068
B. Special assessment district tax rates
Secondary property tax rates - As of the date the Adopted budget was prepared, the city was operating 357 
special assessment districts (streetlight improvement districts) for which secondary property taxes are 
levied. For information pertaining to these special assessment districtsand their tax rates, please contact
* Does not include an additional. $437,234 in expected FY'2026/27 property tax revenue from preceding years; 
this-anticipated revenue increases total FY 2026/27 property tax revenue to $41,699,382.
** Includes actual property taxes collected as of the date the tentative budget was prepared, plus estimated 
property tax collections for the remainder of the fiscal year.
Blueink Bundle ID: h0mC2sHDhW

FY 2026/27
Property Tax Levy and Rate
Public Hearing
1
City Council Meeting
June 9, 2026
Item 23

Property Tax Basics
2

3
FY25/26 Distribution of Property Taxes in Scottsdale  
55%
Schools /
Education
19%
Maricopa 
County
11%
Special 
Districts
8%
City
Primary
7% 
City
Secondary
Distribution based on average FY25/26 property tax rates in Scottsdale. Rates may vary based 
on school district and special districts that property is in and classification of property.  
Rounding differences may occur.  
3.38
1.16
0.68 0.49 0.42
Property Tax 
Rate  $6.1
Per $100 TAV

Property Tax 
Rate
(per $100 
assessed value)
FY 25/26 
Property 
Taxes
Schools 
3.38
1,348.11
County
1.16
462.67
City 
0.91
362.95
Special Districts 
0.68
271.22
Total Property Taxes
6.13
$2,444.95 
Median LPV and Current Property Taxes 
4
Scottsdale Residential 
FY25/26 Median 
LPV
$398,851
Assessed Value
$39,885
Notes: Median LPV per Maricopa County Assessor 2026 Single Family Residential by City.   
Rate for schools and special districts may vary based on districts the property is in and 
classification of property. Rounding difference may occur.

5
Property Taxes Are Based on Limited Property Value
Full Cash Value (FCV) 
Market or Appraised 
Value
Property Taxes
LPV x 10% Assessment Ratio 
x  Property Tax Rate
VS
Limited Property Value (LPV)
•
Median LPV is 61% of FCV
•
Annual increase limited to 5%

Proposed FY26/27 
Property Tax Rates
6

Current 
Proposed
FY26/27   
% 
  Change
Primary
0.489
0.480
-1.8%
Secondary 
0.423 
0.427 
0.9%
Total Combined Rate
$ 0.912
$ 0.907
-0.5%
Proposed FY26/27 Property Tax Rate
(rates per $100 of tax assessed value) 
7
Maximum Combined Rate Allowed by City Policy 8.04(c)     $ 1.50
   unless otherwise directed by the Council

Proposed FY26/27 City Property Tax Rates 
 
Note: Property assessed values for each city vary widely which affect property taxes paid.
8
$0.850 
$0.907 
$0.980 
$1.076 
$1.388 
$1.440 
$2.040 
$2.563 
Mesa
Scottsdale
Gilbert
Chandler
Glendale
Peoria
Phoenix
Tempe
Source: Tentative budgets from the various cities available online.

Change in Primary Property Tax 
9
Rate
Levy (in millions)
Current FY25/26
0.489
$   40.3
Appreciation in Assessed Value
(0.018)
New Construction
0.3
2% Maximum Levy Increase 
0.010
0.8
Reduction in City Tort Settlements
(0.001)
(0.1)
Proposed FY26/27
0.480
$  41.3

Change in Secondary Property Tax
10
Rate
Levy (in millions)
Current FY25/26
0.423
$  34.9
Appreciation in Assessed Value
(0.014)
New Construction
0.3
Increase in Amount Needed for Debt Service
0.018
1.5
Proposed FY26/27
0.427
$  36.7

Current
FY25/26 
Proposed
FY26/27   
% 
  Change
Median Limited Property Value
$398,851
$418,794
5.0%
Property Taxes:
School/Education
1,348.11
County
462.67
City (primary & secondary)
362.95
379.76
4.6%
Special Districts
271.22
Total Property Tax Bill
$2,444.95 
Impact on Median Scottsdale Residential Property 
11
Note: Proposed FY26/27 property tax rates for other taxing districts currently unavailable.

Historical Primary/Secondary Property 
Tax Rates
Fiscal Year
Primary Rate
Secondary Rate
Combined Rate
FY 2022/23
.4970
.4101
.9071
FY 2023/24
.5150
.4664
.9814
FY 2024/25
.4958
.4358
.9316
FY 2025/26
.4891
.4233
.9124
FY 2026/27
.4801
.4267
.9068
12

13
2-Step Process for Property Tax Adoption
Required by State Law
June 9  
 
 
Public Hearing and Motion to Levy
June 23  
 
 
Adoption of Property Tax Levies and 
 
 
 
 
 
 
Fixing Rates

14
ACTION
▪SOLICIT public testimony on the 
proposed FY 2026/27 property tax levy
▪BY A ROLL CALL VOTE, APPROVE a 
motion to levy the proposed property 
taxes, taxes to be assessed by 
ordinance on June 23, 2026.