Arizona taxpayers can’t catch a break from their local governments. From water rates and utility bills to property taxes and sales taxes, city councils have spent the last several months approving one increase after another. No matter the justification, the result is always the same: higher costs for the people paying the bills.
Here are some of the top offenders of the last couple of months:
Florence
In the Town of Florence, the town council approved a multi-year water and wastewater rate hike plan that starts with roughly 6–8% increases but compounds over several years into what many residents estimate will amount to around a 64% increase in total utility costs. At a time when families are already struggling with affordability, approving rate hikes of that magnitude is a serious burden on Florence residents. With increases that steep, one would think they’re trying to compete with Gilbert (100%+ increase over 3 years). The increases will start on July 1st, just in time for summer, so get your pocketbooks ready, Florence residents.
Tempe
Tempe has their own slew of problems that deserves an article of its own, self-imposed by mismanagement, obviously. The Tempe City Council recently voted on sending a 0.5% sales tax increase to the ballot for voters in November. This will tax all non-grocery food and is said to give 0.3% to public safety, 0.1% to transit such as light rail and buses and 0.1% to Tempe PRE, a city run free preschool.
As usual, local leaders are putting all blame on the legislature. One Tempe councilmember said, “Let me remind you what we set out to do with this initially: to address a … deficit that was created not by us but by the Arizona Legislature and the federal government.”
Meanwhile, this is occurring while the council has decided on things like a $2 million “Mill Ave” sign. Just plain, silver metal. Nothing special or aesthetic and $2 million is going towards this thing? Right, and it’s the legislature’s fault that they are in a budget deficit of about $24 million. It’s almost as if they didn’t spend your tax dollars on stupid things, they wouldn’t need to keep raising taxes.
Phoenix
Are rising costs in the bluest of cities like Phoenix and Tucson even a surprise at this point? The Phoenix Council passed a waste rate increase of ~38% over the next three years, with bills climbing from $37 to more than $51 per month. The city has also proposed increasing property tax collections by nearly $6.3 million, while authorizing additional inflation-based trash fee hikes beginning in 2029.
Tucson
Tucson leaders have outlined a grocery list of rate and fee increases in their new budget. For Tucson Water, a proposed 3.5% water rate increases annually for 2027-2030 along with miscellaneous service fees that could increase by 20% depending on the fee. Trash services are going up $3 per month, officially intended for litter removal, encampment cleanup and graffiti removal. In other words, Tucson residents are being asked to foot the bill for problems their leaders have failed to solve.
If those increases weren’t enough, permit and development services fees are proposed to increase 5%, with building permit valuation tables rising 11.5% on average, a gut punch for anyone trying to build or improve a home in the city. Tucson also previously approved hiking the public utility tax from 4.5% to 5% on utilities operating within the city. Add all of this up and Tucson residents are getting squeezed from every direction, with no end in sight.
San Tan Valley
San Tan Valley, a town that just barely incorporated, is already moving fast to tax its residents. The council adopted a $91 million budget on June 3, and the first local sales tax is scheduled for a formal vote on July 1. On top of that, development impact fees are in the pipeline, with builders of new single-family homes potentially paying $537 in park fees and $5,600 in street fees, costs that will almost certainly be passed straight to the homebuyer in the purchase price. Oh, and those park fees? San Tan Valley doesn’t actually have any parks yet, even though residents have been paying park-related fees to Pinal County for years. Welcome to incorporation.
Scottsdale
Scottsdale residents are set to see higher utility bills after the City Council approved a 4.5% water rate hike and a 3.5% sewer rate increase following a public hearing on May 19. The sewer increase takes effect July 1, with the water increase following on November 1. City officials call it responsible long-term planning. Residents call it a higher bill.
Flagstaff
Flagstaff is proposing a 6.89% increase in primary property taxes, about $500,000 in new revenue, which would push taxes on a $100,000 home from $58.07 to $62.07. The money is said to go to fire and police operations, but don’t city officials always say that when they want to increase costs? It’s always in the name of “public safety.” A public hearing is scheduled for June 16, though given the track record of these hearings across the state, don’t hold your breath that it changes anything.
Local leaders increasingly behave as though taxpayers are an endless source of revenue, and this cycle of tax, rate, and fee increases will continue as long as their power remains unchecked. Left to their own devices, local governments will continue to extract more from residents through higher taxes and fees, making it harder to afford to live, work, and raise a family in Arizona.
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