Town Council to tackle budget cap, state encroachment in 2026

A number of challenges lie ahead in 2026 for Paradise Valley’s town council that will have an impact on town residents.

Raising the budget expenditure limit, retaining municipal control, responsible development and dealing with the aftermath of the collapsed Ritz-Carlton project are among the challenges the council will tackle in the new year.

Budget expenditure limitation

Under state law, cities and towns in Arizona must operate within their budget expenditure limit regardless of how much they have in their general funds. Paradise Valley’s current budget expenditure limit, as set by the state, is $46.9 million.

There is a movement by some members of the town council to try to raise the expenditure limit by putting the question to voters on the November ballot.

First, the council must approve a ballot initiative. Councilors are about to embark on talks to determine whether raising the expenditure limitation will go to voters. The last time the matter was brought before Paradise Valley voters was in 2016.

Council Member Julie Pace is among three councilors who have already voiced their support on raising the limitation.

“The town has plenty of monies in reserves to fund the town for almost three years, but we do not have access to the reserves by state law,” Pace stated in an email. “We are dangerously close to the annual budget cap, which also means we do not have the money to complete (capital improvement projects) or drainage projects. Our town expenditure limitations have not kept up with inflation. We need to ask the voters to increase the town’s expenditure limitation to be financially responsible to our town residents. It does not mean that the council spends up to an increased budget limit.”

Council Member Karen Liepmann maintains that capital improvement projects the town needs, such as a storm drain overhaul, are being delayed by the expenditure limit.

“I continue to support a fiscally conservative budget. However, we have been delaying and decreasing needed infrastructure maintenance and improvements to meet this arbitrary cap, even though we have millions in reserves,” Liepmann stated in an email.

Council Member Anna Thomasson believes needed capital improvement projects can be funded by the town without raising the expenditure limit.

“We can choose to fund our capital projects separately or include them in an overall, growing budget. As a strong fiscal conservative, I’m proud of our current financial position and as we plan for our financial future, I will continue to be a strong voice preserving our values of limited government and very judicious spending,” Thomasson stated in an email.

State control

Paradise Valley prides itself on providing residents with a top-notch quality of life. But the town has to be vigilant in making sure the state Legislature does not make decisions that adversely affect that quality of life.

“Recent legislative efforts suggest a growing trend toward limiting municipal autonomy and imposing one-size-fits-all policies,” Vice Mayor Christine Labelle stated in an email. “Protecting the ability of local governments to make decisions closest to their residents remains essential to maintaining the character, values and responsiveness of the town.”

Among the top issues that concern the council are attempts to ban speed-enforcement cameras throughout the state and zoning demands.

“Paradise Valley was the first municipality in the nation to implement photo radar traffic enforcement technology. This tool has proven effective in protecting both lives and property,” stated Mayor Mark Stanton in an email. “Despite its success, the state Legislature routinely considers efforts to prohibit photo radar statewide. Decisions regarding the use of this technology should remain within the authority of individual municipalities rather than be dictated at the state level.”

Stanton spent the last legislative session making that argument to house and senate committees as part of an effort to stop two bills that would have issued a statewide ban on the cameras. The bills fell short of passage.

Councilors will also fight to keep zoning issues in the town’s hands.

“Retaining local control of our zoning will continue to be a key issue for us in 2026. Each year the Legislature approves more bills restricting municipal building and eroding our cherished 1-acre zoning. We can’t let that happen,” Thomasson stated.

Development

As the town officials monitor state moves that could impact Paradise Valley’s control of its zoning, the mayor and council members will be working to make sure local development conforms to the general plan.

“Protecting Paradise Valley’s unique character and community values is essential. Responsible development — consistent with our voter-approved general plan — remains a guiding principle,” Stanton stated. “The town’s commitment to low-density, primarily residential development, is fundamental to preserving the character, culture, and charm that define Paradise Valley. The General Plan should continue to serve as the framework for all development-related decisions.”

Council Member Scott Moore stated in an email that the town must “enforce zoning, respect neighborhoods and guide growth carefully to protect what makes Paradise Valley exceptional.”

Ritz-Carlton

After languishing for years, the developer of the project that would bring a Ritz-Carlton resort to Paradise Valley, as well as homes and luxury retail businesses, has filed for Chapter 11 bankruptcy and left the project in indefinite limbo. The council is attempting to limit any fallout the bankruptcy may have on the town.

“As the owner, lender, courts and other creditors work to resolve these disputes, I fear the town will be drawn into these conflicts, not paid the $20 -$25 million in fees due us, or asked to grant higher density with even more three-story condo buildings,” Thomasson stated. “This was a bad development deal.”

Moore stated that the town must “confront the realities of the stalled and bankrupt project, assess risks to the town and ensure future decisions avoid similar problems and misjudgment.”

Labelle is holding out hope that something can be salvaged from the project.

“The hope is for a timely and successful project that ultimately benefits the town, while respecting the legal and financial processes currently underway,” Labelle stated.

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