| ITEM #: 6. DATE: 06/08/2026 AI #:3284 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | PUBLIC HEARING ON PROPOSED PROPERTY TAX LEVY FOR FY2027 (TRUTH-IN-TAXATION HEARING) AND ON PROPOSED FINAL BUDGET ADOPTION FOR FY2027 AND APPROVAL OF TRUTH IN TAXATION INCREASE BY ROLL CALL VOTE |
| STAFF PRESENTER(S): | Ryan Bittle, Deputy Finance Director |
SUMMARY
The City Council will hold a public hearing to receive a staff presentation and public comment on the proposed final budget for fiscal year 2026-2027 (FY2027) as tentatively approved on May 18, 2026, 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 22, 2026. No changes from the May 18, 2026, 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).
STRATEGIC PLAN ALIGNMENT
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RECOMMENDATION
Conduct a public hearing and by resolution adopt the final estimates by the city of Goodyear for the fiscal year beginning July 1, 2026 and ending June 30, 2027 and on the proposed primary property tax levy increase of $329,905; and Approve the Truth-in-Taxation increase of $329,905 for FY2027 by a roll call vote. (Ryan Bittle, Deputy Finance Director)
FISCAL IMPACT
The FY2027 Budget totals $1,419,198,600. 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 FY2027 General Fund budget.
BACKGROUND AND PREVIOUS ACTIONS
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 FY2027 budget process officially kicked off back in calendar year 2025 with extensive collaboration and dozens of meetings between departments, the City Manager's office, and the budget team discussing available resources and needs for the upcoming fiscal year. As part of these touchpoints, our updated strategic plan, which was adopted by Council in October was at the forefront of these conversations, acting as a roadmap during development of the budget, helping us prioritize funding, and ensuring timely delivery of associated strategic plan action items. In February, a five-year general fund forecast was presented as part of our Council retreat, creating the foundation off of which our FY2027 budget was built. In April City Council was presented with a sustainable recommended budget which focused on growth, continuing existing programs and services to a larger residential base, fair compensation for employees, and continued progress of large capital projects. 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 18, 2026. The approved tentative budget was published in the Arizona Republic West Valley Edition on May 22nd, and May 29th 2026, 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 (Attachment D).
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 (Attachment C). These notices and actions are referred to as Truth-in-Taxation and appeared in the Arizona Republic West Valley Edition (a local newspaper of general circulation) on May 22nd and May 29th, 2026 (Attachment A), as well as in a news release on May 20th, 2026 (Attachment B). 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 FY2027 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 Financial Policies remain unchanged from the prior year, 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, $329,905 is above the Truth In Taxation levy limit of $17,566,375. The total primary property tax levy will be $17,917,545. Final action to set the primary and secondary property taxes for the city of Goodyear is scheduled for June 22nd, 2026, during a regular meeting of the City Council.
Annual Budget Process: The FY2027 budget process officially kicked off back in calendar year 2025 with extensive collaboration and dozens of meetings between departments, the City Manager's office, and the budget team discussing available resources and needs for the upcoming fiscal year. As part of these touchpoints, our updated strategic plan, which was adopted by Council in October was at the forefront of these conversations, acting as a roadmap during development of the budget, helping us prioritize funding, and ensuring timely delivery of associated strategic plan action items. In February, a five-year general fund forecast was presented as part of our Council retreat, creating the foundation off of which our FY2027 budget was built. In April City Council was presented with a sustainable recommended budget which focused on growth, continuing existing programs and services to a larger residential base, fair compensation for employees, and continued progress of large capital projects. 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 18, 2026. The approved tentative budget was published in the Arizona Republic West Valley Edition on May 22nd, and May 29th 2026, 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 (Attachment D).
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 (Attachment C). These notices and actions are referred to as Truth-in-Taxation and appeared in the Arizona Republic West Valley Edition (a local newspaper of general circulation) on May 22nd and May 29th, 2026 (Attachment A), as well as in a news release on May 20th, 2026 (Attachment B). 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 FY2027 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 Financial Policies remain unchanged from the prior year, 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, $329,905 is above the Truth In Taxation levy limit of $17,566,375. The total primary property tax levy will be $17,917,545. Final action to set the primary and secondary property taxes for the city of Goodyear is scheduled for June 22nd, 2026, during a regular meeting of the City Council.
STAFF ANALYSIS
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.
Attachments
- Attachment A - Notice of Tax Increase
- Attachment B - News Release
- Attachment C - Truth-in-Taxation Analysis
- Attachment D - State Forms
- Staff Presentation