The Maricopa City Council approved Ordinance 25-07 on June 3, finalizing property tax rates for fiscal year 2025-2026 and continuing a seven-year streak of reductions that officials say demonstrates the city’s fiscal responsibility.
What the Ordinance Covers
Ordinance 25-07 establishes separate amounts for primary and secondary property tax levies on each $100 of assessed property valuation within Maricopa city limits for the fiscal year ending June 30, 2026. Primary tax rates fund the maintenance and operation of local government entities, while secondary tax rates fund bond issues and special district funding.
The ordinance sets the primary property tax levy at $17,764,860, creating a rate of $3.4773 per $100 of assessed value. The secondary property tax levy totals $3,039,854 at a rate of $0.5950 per $100 of assessed value. Combined, these create a total property tax rate of $4.0723 per $100 of assessed valuation.
Seven-Year Trend of Rate Reductions
Deputy City Manager and Chief Financial Officer Matt Kozlowski presented data during the June 3rd council meeting showing consistent property tax rate reductions over seven consecutive years. The primary property tax rate decreased from $3.64 to $3.47 per $100 of assessed value for fiscal year 2026, representing a 17 basis point reduction.
During the June 3rd meeting, Councilmember Vincent Manfredi counted the reductions and confirmed the seven-year streak. “Seven years in a row we’ve lowered the primary property tax rate, so it’s a pretty bold achievement when you look at it in the state, in the country, where a city is able to lower the tax rate on their residents,” Manfredi said.
Secondary property taxes decreased by 10 basis points to $0.5950 per $100 of assessed value for fiscal year 2026, reflecting long-term savings from a bond refinancing completed about 18 months earlier, according to prior city reports.
Impact on Residents
Kozlowski provided illustrative calculations during the May 6 meeting, showing that for a $360,000 assessed home, annual primary property tax bills could have dropped by as much as $700 compared to 2020 rates.
Kozlowski suggested these property tax savings may outweigh any increases from the recently approved half-cent sales tax, especially since food and gasoline are exempt.
What Property Taxes Fund
The primary property tax levy, approved by voters in November 2006, funds operations of the City Fire and Police Departments and other public safety functions. Under the fiscal year 2026 budget, general fund expenses for public safety operations total $36,270,697. The property tax levy would fund less than 49% of these public safety operations if fully collected. The remaining public safety costs, along with other general fund expenses, are covered by additional revenue sources including local sales taxes, state-shared revenues, and various licenses and fees. Kozlowski noted during his May 6 presentation that nearly 45% of the city’s total operating expenditure budget goes toward public safety, demonstrating the significant financial commitment to these services beyond what property taxes alone can support.
While the total dollar amount of the primary levy increased from $17,020,783 to $17,764,860, Kozlowski explained that this growth comes from new construction rather than higher rates on existing properties.
The secondary property tax serves a different purpose. Voters authorized this levy in November 2008 to repay $65.5 million in General Obligation (GO) debt for library, parks and recreation facilities. The city has issued $51.6 million in GO bonds for the Copper Sky Recreational Complex, with bond principal and interest repaid through secondary property taxes on all taxable property within the city.
Budget Context
The property tax decisions occurred alongside approval of the city’s tentative budget for fiscal year 2025-2026. The budget projects $108 million in general fund revenues for city operations. Separately, the city outlines over $197 million in capital improvement projects, which Kozlowski explained are funded by accumulated revenue surpluses from previous years plus other dedicated funding sources
Kozlowski emphasized the city’s fiscal responsibility, noting Maricopa maintains a debt per capita figure of $950—significantly lower than other rapidly growing Arizona cities. Queen Creek, for comparison, carries $7,656 per resident in debt, while other comparable cities show thousands of dollars per resident.
Revenue Challenges
The city faces a revenue plateau, with general fund revenues moving from $105 million in fiscal 2024 to a projected $102 million in fiscal 2025, then to $108 million projected for fiscal 2026. State-shared revenues, historically a strong growth area, have remained flat or declined for three straight years due to legislative reductions including income tax cuts and elimination of rental taxes.
Despite these challenges, the city continues reducing property tax rates while increasing investments in public safety and infrastructure.
Fiscal Direction
The property tax ordinance represents the final step in the city’s fiscal year 2026 budget process. The seven-year trend of property tax rate reductions demonstrates the city’s ongoing commitment to fiscal responsibility while maintaining essential services.
The city has adopted a strategy of reducing property taxes while implementing targeted sales tax increases for specific projects like transportation infrastructure. As Maricopa continues as the fifth fastest-growing city in the nation, city officials face the challenge of funding rapid growth while maintaining their demonstrated pattern of fiscal responsibility and tax rate reductions.
