To calculate the Phoenix, Arizona Maintenance Fund, start by determining the city’s annual property tax revenue. This is based on the assessed value of taxable properties (60% of market value) multiplied by the millage rate set by the city and Maricopa County. Subtract applicable exemptions (e.g., primary residences) and allocate the remaining revenue to the Maintenance Fund. For example, a property assessed at $300,000 with a 3.8% tax rate generates $11,400 annually before exemptions. The fund is typically part of the general budget, supporting infrastructure, parks, and public facilities.

The calculation ensures stable funding for long-term maintenance, critical for maintaining city services amid population growth. In 2023, Phoenix’s property tax base exceeded $100 billion, with a millage rate of 3.8%, generating approximately $380 million for city operations, of which 15–20% is allocated to maintenance (City of Phoenix Budget Document, 2023). Data from the Arizona State Tax Commission shows that 60% assessed valuation reduces tax burdens for homeowners while ensuring equitable revenue. For instance, a $500,000 home’s assessed value is $300,000, taxed at 3.8% ($11,400 annually), with a primary residence exemption reducing the bill by up to $1,500. This structure balances fiscal responsibility and community needs, as 70% of Phoenix’s budget supports public safety and infrastructure (Maricopa County Assessor’s Office, 2023). Exemptions and millage rates are adjusted annually based on state laws and revenue goals, ensuring the fund adapts to economic changes. This method aligns with Arizona’s Proposition 301, which caps property taxes at 5.6% of assessed value, preventing overburdening residents while safeguarding municipal maintenance budgets.