Scottsdale’s city government has released its proposed budget for fiscal year 2026/27. The number is big: $2.119 billion. But the headline the city is pushing is that this budget is actually smaller than last year’s. Here’s what residents should understand before Council takes it up.

The Top-Line Numbers

The proposed budget totals $2.119 billion, a decrease of $84.7 million, or 3.8 percent, from the prior year. That’s a meaningful reduction on paper. The General Fund remains balanced, with a projected ending fund balance of $214.4 million. Those are solid numbers. They reflect years of revenue growth the city has been careful not to fully spend.

Public Safety Gets the Investment

The budget’s biggest priority is public safety. More than 98 new full-time positions are funded, including 44 in the Fire Department and 22 in the Police Department. Much of that fire staffing is tied to the new ambulance service program approved by voters. A $50 million payment is also included to chip away at public safety pension liabilities. That’s smart long-term management.

Capital Improvement Plan Gets Trimmed

This year’s Capital Improvement Plan totals $956.1 million and reflects a more focused, achievable approach. The city convened a Capital Review Team last summer to scrub the project list. Departments were challenged to identify up to a 10 percent reduction. The result is a leaner, more executable CIP. That matters, because Scottsdale has struggled with capital project delivery timelines in recent years.

Is “Fiscally Conservative” the Right Label?

The city’s framing deserves some scrutiny. A $2.1 billion budget is not small. And the gap between projected revenues and total expenditures remains wide. Former city treasurer David Smith, who chairs the Budget Review Commission, pointed to projected revenues of $1.2 billion versus expenses of $1.8 billion, calling that gap unsustainable. City staff pushed back, arguing revenues have grown faster than spending in recent years. Both things can be true at once. The city has been disciplined. The structural imbalance is still real.

What Scottsdalians Should Watch

Mayor Borowsky has publicly challenged the Budget Review Commission to find at least 5 percent in savings. That process is still unfolding. Revenue forecasts reflect a return to more moderate, sustainable growth levels after years of strong gains. If revenues flatten and expenses keep climbing, the fiscal cushion shrinks fast. This budget is responsible. Whether it’s genuinely conservative depends on what comes next.