At a Glance
- Property tax: The Town’s rate could rise from $1.0289 to a maximum of $1.0996 per $100 of assessed value. For a home with a full cash value of $235,000, that would add about $10 per year to the Town’s share of the tax bill. The Town rate is one of several that make up a homeowner’s total property tax. The Council has not decided on a final rate.
- Utility bills: A household using 4,000 gallons of water per month would pay about $5.77 more per month, or roughly $69 per year, in combined water and wastewater costs.
- Nothing is final. The March 3 meeting is only to authorize public notices. Residents can comment at public hearings before any vote.
FLORENCE, AZ — The Florence Town Council will vote on March 3, 2026, on whether to authorize notices of intent to increase both property taxes and water and wastewater utility rates. No increases will be decided at that meeting. The notices would start a public process that includes hearings where residents can comment before the Council takes a final vote.
- March 3, 2026 — Council votes on whether to post notices of intent
- May 5, 2026 at 6:00 p.m. — Public hearing on utility rate increases
- June 2, 2026 at 6:00 p.m. — Public hearing and first reading of ordinance on property tax rate increase
Both hearings will be held in the Council Chambers at 775 North Main Street in Florence.
How the Florence Property Tax Increase Would Affect Homeowners
The Town is considering a possible increase to its primary property tax rate. The Council has not decided on a final rate and may choose a lower one. The table below shows the change if the maximum allowable rate is adopted.
| Last Year’s Rate | Proposed Maximum Rate | Change | |
|---|---|---|---|
| Town Rate (per $100 of assessed value) | $1.0289 | $1.0996 | +$0.0707 |
Staff noted that if the Town collected the same total levy amount as last year ($1,683,788), the rate would decrease to $1.0143 per $100 due to growth in assessed property values.
The Town rate is only one part of a homeowner’s total property tax bill. Property owners in Pinal County also pay taxes to the county, school districts, Central Arizona College, and special districts. For a breakdown of how property tax dollars are distributed countywide, see this Pinal Post article.
How Property Tax Is Calculated in Arizona
In Arizona, property taxes are not based on market price. The county assessor sets a full cash value for each home, which may differ from what the home would sell for on the open market.
From there, the county calculates a Limited Property Value (LPV), which exists to protect homeowners from sudden, inflation-driven jumps in property value. For a newly built home, the LPV starts based on the ratio used for similar homes in the area. After that, it can only grow 5% per year and can never exceed the full cash value.
The county then applies an assessment ratio to the LPV to arrive at the assessed value. Arizona uses different ratios for different types of property — 10% for residential homes, up to 16% for commercial and industrial property, and other rates for agricultural and other classifications. The assessed value is the figure the tax rate is applied to.
The following example uses a real Florence-area residential property, which falls under the 10% classification:
| Step | What It Is | Amount |
|---|---|---|
| Full cash value | Set by the assessor, may differ from market price | $234,914 |
| Limited Property Value | Capped at 5% annual growth | $137,732 |
| Assessed value | 10% of LPV — this is what is taxed | $13,773 |
If the Council adopts the maximum proposed rate, the Town’s portion of this homeowner’s annual tax bill would change as follows:
| Last Year’s Rate | Proposed Maximum Rate | Change | |
|---|---|---|---|
| Town Rate (per $100 of assessed value) | $1.0289 | $1.0996 | +$0.0707 |
| Annual Town Tax on $13,773 assessed value | $141.71 | $151.45 | +$9.74 |
Homeowners can look up their assessed value using the Pinal County Tax Bill Estimator. The total shown on that tool reflects taxes from all jurisdictions combined, not just the Town of Florence.
How the Utility Rate Increase Would Affect Monthly Bills
The Town is also proposing increases to water and wastewater rates starting July 1, 2026. The table below estimates the monthly impact for a residential household inside town limits using 4,000 gallons of water.
| Charge | Current | Proposed 7/1/2026 | Change |
|---|---|---|---|
| Water Base (5/8″–3/4″ meter) | $30.46 | $32.29 | +$1.83 |
| Securing Water Future | $2.01 | $2.09 | +$0.08 |
| Water Volume (4,000 gal) | $7.36 | $7.80 | +$0.44 |
| Wastewater Base | $25.07 | $27.08 | +$2.01 |
| Wastewater Volume (3,000 gal) | $17.67 | $19.08 | +$1.41 |
| Total | $82.57 | $88.34 | +$5.77 |
Volume charges shown are calculated totals based on an example usage of 4,000 gallons per month. Wastewater volume is based on 75% of that, or 3,000 gallons. Actual costs will vary depending on household water usage.
At that usage level, the increase comes to about $69 more per year in combined water and wastewater costs. Per-unit rates increase at every usage level, so the total increase will depend on how much water a household uses. Customers outside town limits pay higher rates and would also see increases.
Utility Rates Through 2028
The proposed utility rate increases are phased over three years. If adopted at the May 5 hearing, the first increases would take effect July 1, 2026. The tables below show residential rates inside town limits.
Water Rates (Inside Municipality)
| Charge | Current 4/1/2025 | 7/1/2026 | 7/1/2027 | 7/1/2028 |
|---|---|---|---|---|
| Base (5/8″–3/4″ meter) | $30.46 | $32.29 | $33.58 | $34.92 |
| Securing Water Future | $2.01 | $2.09 | $2.17 | $2.26 |
| Under 5,000 gal (per 1,000) | $1.84 | $1.95 | $2.03 | $2.11 |
| 5,001–10,000 gal (per 1,000) | $2.77 | $2.93 | $3.05 | $3.17 |
| 10,001–20,000 gal (per 1,000) | $4.15 | $4.40 | $4.57 | $4.75 |
| Over 20,001 gal (per 1,000) | $6.22 | $6.59 | $6.86 | $7.13 |
Wastewater Rates
| Charge | Current 4/1/2025 | 7/1/2026 | 7/1/2027 | 7/1/2028 |
|---|---|---|---|---|
| Residential Base | $25.07 | $27.08 | $28.70 | $29.85 |
| Residential Volume (per 1,000 gal) | $5.89 | $6.36 | $6.74 | $7.01 |
| Commercial Volume (per 1,000 gal) | $5.91 | $6.38 | $6.77 | $7.04 |
| Institutional Volume (per 1,000 gal) | $9.38 | $10.13 | $10.74 | $11.17 |
The increases are based on the 2022 Water and Wastewater Utility Cost of Service Rate Study prepared by Willdan and approved by the Town Council on September 12, 2022. The study included scenarios for both low and high growth, and advised the Town to monitor development trends for the first two years and adjust, if necessary, in the third year. In April 2025, based on actual growth in the Florence Water Utility Area, the Town shifted to the low-growth model to ensure sufficient funding for capital projects. The full study is available at www.florenceaz.gov/finance under Rate Studies.
Why the Town Says Increases Are Needed
For property taxes, the staff report states that revenues under the current rate are not keeping pace with the Town’s operating costs. Although assessed values in Florence grew year over year, maintaining the current rate would not generate enough revenue to sustain services. The Town is still waiting on state-shared revenue figures before making a final recommendation. Property tax revenue supports the General Fund, which pays for public safety, administration, community services, and community development.
For utility rates, the staff report states the increases are designed to cover rising operating costs and debt service. Staff noted that unforeseen capital needs could require further adjustments in the future.
