PIMA COUNTY (April 30, 2025) – County Administrator Jan Lesher has recommended a $1.76 billion budget for Pima County for the upcoming fiscal year, representing a modest 1.9% increase over the current budget. The proposed budget includes a 2.5% increase to the overall County property tax rate, aimed at maintaining essential services and offsetting escalating costs passed down from the state and potential reductions in federal funding.
Tax Impacts and State Cost Shifts
The recommended property tax rate increase includes two main components:
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A 3.65-cent increase per $100 of net assessed value to support critical County operations, programs, and services.
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As required by Board policy, a 9.44-cent increase to cover state-imposed cost shifts.
Combined, these changes would bring the County’s total proposed property tax rate to $5.2317 per $100 of assessed value. For the average single-family homeowner, this equates to an estimated $94 increase in next year’s property tax bill, with a median increase of $83.
Despite the increase, Lesher emphasized that County property taxes remain historically low. “Since 2021, we’re actually down over 30 cents per $100 of assessed valuation, even with whatever final increase might be approved,” she told 13 News. “Taxes continue to go down in this area for Pima County.”
The proposed increase marks only the second time in the last seven years that the County Administrator has recommended raising the property tax rate. Thanks to 11 consecutive years of economic growth and rising property values, the County has previously reduced its rate, resulting in hundreds of millions in avoided taxes for property owners.
Budget Challenges and Federal Funding Concerns
The County’s budgeting process this year was shaped by several uncertainties, including:
- Volatile federal fiscal policy could impact up to $150 million in funding.
- The unfinished state budget.
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Broader concerns about a potential economic downturn.
To cushion against these risks, Lesher said the County has built in contingency reserves. “We’re making sure we have a couple of different pockets of contingency dollars or fund balance, so if we do not receive expected federal dollars, we have a cushion there,” she said.
Budget Priorities
Lesher’s proposed budget aims to strike a balance between conservative financial management and continued investment in key community services. The County’s four budget priorities are:
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Stable county operations and conservative budgeting
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Maintaining workforce competitiveness
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Building and maintaining critical infrastructure
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Sustaining vital community programs focused on early education, housing, and climate change
The County levies four types of property taxes: the primary tax (for the General Fund), the Library District tax, the Regional Flood Control District tax, and the Debt Service tax. For FY26, small increases are proposed for the Library and Flood Control District taxes, while the Debt Service tax is set to decrease by 1 cent.
Next Steps
The Pima County Board of Supervisors is scheduled to discuss and adopt the Tentative Budget on May 20, which will cap FY26 expenditures. Final adoption is anticipated at the June 17 Board meeting, though no increases in spending can be approved after the tentative budget is adopted.
“The Recommended Budget for FY 2025/26 represents a strategic approach to financial management,” Lesher wrote in her budget memo. “It reflects our commitment to maintaining stability for County residents and employees while maintaining a solid financial foundation.”
To read the Recommended Budget, go to pima.gov/budget