The City of Phoenix is in the black this year with a sizable budget surplus, but residents could still see a tax hike.
Phoenix has $60 million surplus for the upcoming fiscal year. The trial budget proposes spending that on public safety, employee compensation and services like youth and veterans programs, but the city still needs to pay off its yearly debt obligation, between $90 million and $110 million.
“The budget is really trying to balance being financially responsible in that way with providing the services people expect,” said City Manager Ed Zuercher, who released the trial budget Thursday.
Zuercher's budget proposes a property tax hike of about $4.25 per month for the typical Phoenix home. He said the city could spend the surplus money on the debt payments, but that would only delay the issue for a year or two.
The city will hold public hearings in the next month on the topic.
