Pima County Board of Supervisors adopts tentative $1.19 billion FY2027 budget; sets effective tax rate

The Pima County Board of Supervisors on May 21 adopted a tentative FY2027 county budget of $1,189,953,662 and set an effective property tax rate of 5.2835, after a multi-hour presentation and questions from supervisors about reserves, contingency planning, and workforce pay.

Administrator Lesher, introducing the plan, said the proposal was crafted to “maintain fiscal stability while continuing to invest in the essential services and infrastructure the residents across Pima County rely on every day.” The budget frames $1.8 billion in county investments against the board’s strategic pillars — public service, quality of life, infrastructure and growth, and sustainability — and preserves a contingency intended to absorb federal and state funding uncertainty.

Why it matters: the tentative budget establishes the spending ceiling for the fiscal year; the board can refine line items before final adoption but cannot increase expenditures above this cap. The package includes funding for affordable housing initiatives, infrastructure projects, climate action measures and a range of workforce supports including a 3% market adjustment proposal and new employee benefits (student loan reimbursement and a child-care stipend).

Key debates and decisions
- Reserve policy: staff recommended an adjustment of the county reserve target from 17% to 15% of prior-year audited operating expenditures after consulting bond counsel. Several supervisors pressed staff for the data and warned the board would revisit the policy; Administrator Lesher said the change was informed by analysis designed to protect services and the county’s credit rating.
- PIGO and tax impacts: budget staff explained how continued debt reductions and the county’s PIGO (pay-go/prioritization) approach have supported infrastructure funding while limiting the primary tax rate. Supervisors asked for a memo showing how much the county’s PIGO approach has contributed to long-term tax-rate reductions.
- Workforce investments: the tentative budget continues prior pay adjustments and includes benefits aimed at recruitment and retention. Director Quadon described a 3% market adjustment, $1.3 million for student loan repayment (up to federal limits) and a child-care stipend starting at $2,500 per eligible employee.

Votes at a glance (tentative adoptions and district budgets)
- Flood Control District tentative budget: $19,558,296; effective rate 0.3407 — adopted (roll call 5-0).
- County Improvement District tentative budgets — adopted (roll call recorded; passed).
- Library District tentative budget: $63,454,352; effective rate 0.5820 — adopted (roll call: 4-1; Supervisor Christie voted no).
- Rocking K South Community Facilities District tentative budget: $4,930,829 — adopted (roll call 5-0).
- Stadium District tentative budget: $645,670 — adopted (roll call: 4-1; Supervisor Christie voted no).
- Wildflower Community Facilities District tentative budget: $0 — adopted (roll call 5-0).
- Tentative county budget (FY2027): $1,189,953,662; effective tax rate 5.2835 — adopted (roll call recorded; motion carried with recorded dissent on the record).

What was proposed but not finalized: Chair Allen offered a set of rural-priority requests (including $400,000 for a pilot quarterly grading program for dirt roads and $30,000 for rural nonprofit programming) as a batch to be integrated into the tentative spending cap; after procedural discussion the chair withdrew the proposal with administration’s agreement to return with funding-source details at final adoption.

Administration next steps: staff will post detailed budget documents online, monitor federal grant landscapes and state actions that could affect revenues, and return to the board for final adoption in late June. Supervisors asked for follow-up memos on reserve-policy implications, a PIGO impact analysis tied to the 60/40 funding formula, and recruitment/retention metrics after three years of compensation strategy implementation.

Representative quotes
“Throughout the year, staff will continue working with departments, stakeholders, and this board to ensure that the adopted budget reflects community priorities and operational needs,” Administrator Lesher said in her presentation.

Supervisor Connel, speaking in support of workforce investments, said: “This budget invests in the workers who keep this county moving.”

Ending: The board’s tentative adoption sets the expenditure ceiling and lays out the principal trade-offs for the final budget vote. Staff will return with additional analysis and funding-source recommendations ahead of final adoption.