Rising economy and property values in Pima County cause no tax rate increases

PIMA COUNTY – Pima County Administrator Chuck Huckelberry April 26 delivered his recommended budget for fiscal year 2018 to the Board of Supervisors. The $1.24 billion proposed budget is less than 1 percent more than the current fiscal year, which ends June 30.

An improved regional economy, an increase in the local tax base and rising property values have aided the Administrator in recommending a budget that is mostly static and requires no increases to the county’s primary or secondary property tax rates.

The county is still waiting for the state Legislature to pass the state budget, which may have some effect on individual funds or departments, but the Administrator did not expect any major surprises. He did note that state cost transfers to counties are expected to continue and more than $86 million of county primary property tax revenue is budgeted to pay for state programs and mandates.

Because the county’s property tax base increased by 3.3 percent this fiscal year, revenue from the current primary property tax rate of $4.2896 per $100 of assessed value is expected to generate $10 million more next year. However, the Administrator was unable to reduce the tax rate for next year to create a neutral budget because the increased revenue is needed to cover overspending in the Sheriff’s Department and increases in law enforcement retirement costs.

Nevertheless, there is no recommended tax increase for next fiscal year for any of the property taxes levied by the county.

To see the full 843-page recommended budget, go to  2017-2018 Recommended Budget Book.