The City Council will hold a public hearing to receive a staff report and public comment on the proposed final budget for fiscal year 2023-2024 (FY2024) as tentatively approved on May 22, 2023 and on the proposed increase in the primary property tax levy. The City Council will also consider a motion to levy proposed property taxes to be assessed on June 26, 2023. 

No changes from the May 22, 2023, tentative budget are included in the final budget or primary property tax levy. Adoption of the Final Budget will occur in a special meeting immediately following the regular meeting as prescribed by A.R.S. §42-17105(A).

1. Conduct a public hearing on Resolution No. 2023-2318, which adopts the final estimates by the city of Goodyear for the fiscal year beginning July 1, 2023 and ending June 30, 2024 and on the proposed primary property tax levy increase of $258,247.

2. Approve the Truth-in-Taxation increase of $258,247 for FY2024 by a roll call vote. (Ryan Bittle, Finance Manager)

The FY2024 Budget totals $806,949,000. It is balanced for the General Fund and within resources for Asset Management, Enterprise, Special Revenue, Capital, and Debt Service funds. The primary property tax levy is used in the balanced FY2024 General Fund budget.

In addition to the city's internal processes, state law requires a number of steps to adopt the annual budget and property tax levy.

Annual Budget Process
The FY2024 budget process began in calendar year 2022 and included departments submitting their initial list of new capital projects, preparing base budget estimates, preparing supplemental addition requests and updating existing CIP project costs and timelines as needed. All of these estimates and requests are reviewed by Budget and Research and with the executive team. In the case of capital projects; Engineering Project Management, Information Technology, and Procurement are highly involved in reviews to ensure that all elements of a project are captured within its scope/budget and that we have the organizational resources to deliver the projects proposed.

City Council was provided an initial General Fund five-year forecast in February 2023 as part of the City Council Retreat, which included risks and budget priorities. Those discussions and that presentation served as the basis for the recommended budget. The City Manager presented a sustainable recommended budget on April 17th, 2023, which focused on growth, continuing existing programs and services to a larger residential base, fair compensation for employees, meeting obligations, opening new capital facilities, and continuing the capital improvement program.

On May 22, 2023, City Council approved the only change to our financial policy, which was to increase our portion of construction sales tax treated as ongoing revenue from $6.1 million to $6.5 million. This policy calls for annual review and the $6.5 million was based on the average of the lowest five-years in the prior ten of General Fund construction sales tax collections.

Any subsequent changes from the City Manager's recommended budget work session were summarized as part of our Tentative budget presented to and adopted by Council on May 22, 2023. The approved tentative budget was published in the Southwest Valley Republic on May 26, and June 2, 2023, consistent with requirements of state law. Further, state required budget forms are posted on the website, where they must remain for five years, and are also available at the library and City Clerk's Office.

Property Tax Levy Process
In accordance with Arizona Revised Statute (A.R.S.) § 42-17107, when the municipal primary property tax levy, excluding any increases due to the value of new construction, is greater than the amount levied in the previous year, actions must be taken to inform residents. These notices and actions are referred to as Truth-in-Taxation and appeared in the Southwest Valley Republic (a local newspaper of general circulation) on May 26, and June 2, 2023, as well as in a press release on May 19th. 

The primary tax levy is limited to an annual increase of two percent over the previous year's maximum allowable primary levy, plus an increased dollar amount attributable to a net gain in property not taxed in the previous year (i.e. new construction). The FY2024 primary property tax at the maximum levy is a planned revenue supporting general fund ongoing operations and maintenance activities including police and fire protection, parks and recreation, development services and other general government functions. City Council adopted the Financial Policies, which call for levying the maximum allowable primary property tax, including this two percent increase, to support the ongoing General Fund operations.

Because the city levies the maximum allowable primary levy, the Truth-in-Taxation notification steps outlined above were required. Of the planned primary property tax levy, $258,247 is above the Truth In Taxation levy limit of $13,650,225. The total primary property tax levy will be $13,923,866. Final action to set the primary and secondary property taxes for the City of Goodyear is scheduled for June 26, 2023, during a regular meeting of the City Council.

The primary tax levy is limited to an annual increase of two percent over the previous year's maximum allowable primary levy, plus an increased dollar amount attributable to a net gain in property not taxed in the previous year (i.e. new construction). City Council adopted Financial Policies, which call for levying the maximum allowable primary property tax, including this two percent increase, to support the ongoing General Fund operations.