The Town of San Tan Valley adopted its first full-year budget on June 3, setting a spending ceiling of about $91 million as the new town prepares to take over services from Pinal County on July 1.

At its June 3 meeting, the Town Council:

• Adopted the tentative budget for the 2026-27 fiscal year, with a spending limit of $91,076,348.

• Held the first public hearing on proposed development impact fees, new charges that would be paid by future development.

• Voted to recommend that Pinal County approve a battery energy storage project planned near existing power infrastructure in the area.

• Awarded a two-year road maintenance contract to S&S Paving & Construction to keep up the town's streets starting July 1.

A $91 Million Spending Ceiling

The council adopted the tentative budget for the fiscal year that begins July 1, 2026, by approving Resolution No. 2026-29. The vote sets the town's expenditure limitation — the most the town is legally allowed to spend in the year — at $91,076,348.

Finance Director Gabe Garcia told the council the figure is a ceiling, not a spending plan. Once adopted, the town can lower the number but cannot raise it, even if more money comes in later. The town's general fund, which covers day-to-day operations, rose from about $55 million to roughly $66 million in the new budget.

Much of the work this year went into staffing a brand-new town. The budget adds about 16 new positions, bringing the town to roughly 25 budgeted positions for 2026-27 — including an assistant town manager, a public information officer, and several community development staff to handle permitting and zoning once the town takes those duties from the county.

Why the Town Can Spend More but Receives Less

Two different population numbers shaped the budget, and they pull in opposite directions.

The Arizona Economic Estimates Commission sets how much of the town's own money it is allowed to spend. That figure was recently raised, lifting the spending ceiling to the $91 million the council adopted. Garcia said a separate update increased the town's official population estimate from 91,130 to 104,800 — a number town staff said is closer to how many people actually live in San Tan Valley.

But the Arizona Department of Revenue decides how much state-shared revenue the town receives based on a different population count, and that figure was lowered to 91,000. As a result, the town will receive less state-shared money than it had been expecting — a reduction of about $3.7 million from the general fund and about $675,000 from the Highway User Revenue Fund, which pays for roads. Town Manager Brent Billingsley said the lost revenue will be filled in from other sources the town expects to collect, such as local sales tax and permit fees, so total planned spending stays the same.

First Hearing on Development Impact Fees

The council held the first of four required public hearings on proposed development impact fees — one-time charges paid by new development to help cover the cost of growth-related infrastructure such as parks and roads. The fees are paid by new development, not by existing homes and businesses. No vote was taken at this meeting.

A consultant presenting the study explained that the town must build a parks system from the ground up. San Tan Valley currently has no town parks, even though residents in the area have paid park-related impact fees to Pinal County for years. To begin charging its own park impact fee, the town would first have to invest its own money in an initial park before growth could pay its share.

Based on the figures presented, a single-family home would pay a proposed park fee of about $537 and a street fee of about $5,600, though those numbers are not final. The council is expected to adopt the underlying land use and infrastructure plans next, with the fees themselves adopted separately on Oct. 7. The earliest any new fees could take effect is Dec. 21.

Council Endorses Battery Storage Project

The council voted to recommend that the Pinal County Board of Supervisors approve a battery energy storage facility proposed for a site next to existing Salt River Project power infrastructure in the area. The vote is a town endorsement only; the formal approval process runs through the county.

The developer, Plus Power, told the council the project would store energy when demand is low and release it back to the grid during peak demand, which the company said helps prevent rolling blackouts as the area grows. Council members asked detailed questions about fire safety, noise, and how the site would look, and the developer brought a fire-safety specialist to respond. The developer said the facility would create roughly 120 construction jobs and three to five permanent positions, and that it is not expected to begin operating until about 2031.

S&S Paving to Maintain Town Roads

The council awarded a road maintenance contract to S&S Paving & Construction by approving Resolution No. 2026-31. The contract runs for two years, through June 30, 2028, with a not-to-exceed cost of $2.5 million per year, and covers maintenance of the roughly 353.4 miles of roadway within the town.

The work includes pavement maintenance, street sweeping, traffic signal and sign upkeep, vegetation control, and related repairs. The contract begins July 1, when the town takes over road maintenance from Pinal County. The council did not adopt a separate proposed agreement with Pinal County for the same service.

In Other Business

At its June 3 meeting, the Town Council also:

• Approved a lease with the Florence Unified School District to rent two classrooms at Circle Cross Ranch School for overflow town staff, with a separate entrance from the school. The space is intended for employees only, not for public visits.

• Heard that the model city tax code is scheduled to come before the council on July 1, and that election publicity pamphlets would be mailed June 16.

• Heard announcements about a "Stuff the Bus" school-supply drive running through June, collecting items for area students, with donations accepted at the county supervisor's office and the town office.

• Heard that the town will mark its operational start with an event July 1 at Poston Butte High School, following the council meeting that evening.

The council's next regular meeting is scheduled for June 17.