Town of San Tan Valley Council Special Meeting - February 19, 2026 at 6 P.M.

The Town of San Tan Valley Council held a special meeting on February 19, 2026, focusing primarily on the discussion of the town's interim budget and the establishment of a transaction privilege tax (TPT) code. Finance consultant Pat Walker presented an overview of the interim budget, emphasizing its purpose to enable the town to begin spending its own funds, with a projected general fund revenue of $10 million for fiscal year 2025-26. The council discussed budget flexibility, anticipated expenditures including software purchases and election mailouts, and the importance of adopting the budget promptly to manage cash flow and operations. Additionally, tax policy analyst Lee Grafstrom from the League of Arizona Cities and Towns provided an extensive briefing on the TPT code options, recommended starting with a 2.25% base tax rate across classifications, with higher rates (around 4.25%) for hotels and transient lodging to capture visitor-related revenues. The council deliberated on various tax classifications, cooperative purchasing policies, and the procedural requirements for tax adoption, including notification challenges due to the town's recent incorporation. No formal votes were taken during this meeting; however, the council planned to hold a public hearing and consider adoption of the interim budget and TPT ordinance in upcoming meetings, targeting implementation by July 1, 2026.