Phoenix City Council Meeting – May 5, 2026: Proposed 2026-27 Budget Presentation and Public Hearing

This meeting began with council information updates and then focused on the presentation of the City Manager's proposed $2.3 billion general fund operating budget for fiscal year 2026-27. The city manager and budget director outlined a $162.5 million surplus, new investments in child care, homelessness services, teen programs, and emergency assistance, and a $75 million set-aside to ensure balance in FY2027-28. After extensive public comment – with many speakers urging an increase in crisis relief funds to $5 million – council members discussed and praised the budget but took no final vote; a budget decision vote is scheduled for May 19, 2026. A separate agenda item on the food action plan was continued to a future policy session.

Public Comments & Testimony

• Over 20 members of the public spoke, the majority requesting that the council increase the client services line item for crisis relief funds by an additional $5 million (to a total of at least $6.5 million) and expand access to all Phoenix residents regardless of immigration status. Speakers cited federal SNAP cuts (affecting over 400,000 Arizonans, including 181,000 children), increased ICE enforcement, and rising housing and food costs. Many emphasized the need to subgrant funds to culturally competent community organizations and to create an oversight committee.
• Several speakers expressed strong support for the $5 million child care affordability set-aside, including Dr. Katie Spruit (First Things First) and Robert Wolenzine (Christown YMCA), who noted that 72,000 children have working parents but only 47,000 licensed slots exist.
• Two speakers (Brent Stockball, Phoenix Community Alliance; Leah Friglia, Hance Park Conservancy) requested dedicated funding for park rangers at Margaret T. Hance Park, modeled on the Civic Space Park arrangement, to address safety and encampment issues.
• One speaker (Ben) criticized the police budget increase of $59 million while asking for more crisis relief, arguing that keeping people housed is more cost-effective.

Discussion Items

• Budget Presentation (City Manager Ed Zuercher and Budget Director Aaron Mertz): The proposed budget ends six years of federal stimulus funding and allocates a $162.5 million surplus ($100 million one-time, $62 million ongoing) across several priority areas. Key additions from the trial budget include:
  • Flexible Emergency Financial Assistance: Increased from $1.5M to $3.15M (one-time).
  • Teen Services Programming: Increased from $500,000 to $937,000 (ongoing).
  • Park Services Permit Staffing: $379,000 and 3 positions (contingent on council approval of a new park ordinance).
  • SNAP Navigation Services: $5 million child care set-aside partially used in FY26-27 for SNAP navigation.
  • Other investments: $1.6M for community health and safety (lighting, park enhancements), $9.4M for children/youth/families (including child care), $18.4M homeless service continuity (shelter operations, master leasing), $6.6M housing trust fund, $1.5M planning and development customer service, $50M employee compensation, $75M set-aside for FY27-28 balance.
• Council Questions and Comments:
  • Vice Mayor Hodge Washington highlighted the increase in flexible assistance and teen programs, clarified that the Shade Phoenix plan ($60M investment for 24,000 trees and 500+ structures) remains intact, and noted that eviction legal assistance is funded through June 2027. He requested more information on transportation funding (bike lanes, traffic calming) via the transportation sales tax.
  • Councilwoman O'Brien praised the housing trust fund and fee waivers for affordable housing.
  • Councilwoman Hernandez thanked staff but pushed for additional funding: she asked about increasing flexible assistance to $5M, teen programming to $1.5M (including $500K for literacy hubs), and more shade near schools. She expressed concern about the park ordinance enforcement budget ($379K) and questioned the fiscal impact. She also called for improved community engagement and a more accessible budget video.
  • Councilwoman Stark emphasized employee compensation and planning and development improvements.
  • Councilman Waring noted that 38% of the general fund goes to police, 25% to fire, and about 77% is personnel costs, with 72% of that for police and fire staffing. He stated that public safety is the core purpose of city government.
  • Councilwoman Pastor thanked the community, supported child care and teen programming, and asked about the one-time nature of SNAP navigation funding. She raised concerns about the accessibility of city assistance programs (the Monday call-in process) and asked staff to improve emergency procedures.
  • Councilman Robinson praised the budget as a result of good work by city staff, noting that during lean years budget hearings draw larger crowds. He committed to supporting the budget.
• Agenda Item 2 (Food Action Plan): Council agreed to continue this item to a future policy session (June 9, 2026) without discussion, given the extensive slide deck.

Key Outcomes

• No vote on the 2026-27 budget: The budget decision vote is set for May 19, 2026, followed by tentative adoption on June 3 and final adoption on June 17.
• Council direction: Staff were asked to explore additional funding for crisis relief and teen programming before the May 19th vote (Councilwoman Hernandez) and to review the accessibility of human services intake processes (Councilwoman Pastor).
• Agenda Item 2 continued: The food action plan was continued to the council policy session on June 9, 2026.
• Council information updates: Vice Mayor reported new stop signs and shade canopy at New Ashroe Park (first from 2023 Go Bond). Councilwoman Pastor announced an FAA study on flight path changes (virtual meeting May 13) and celebrated the Moon Village Garden Association's new community garden.