Doug Sandstrom, Finance Director

Presentation and consideration of adoption of the FY2024 Tentative Budget in the amount of $806.9M for all funds.The FY2024 Annual Budget provides for day-to-day operations, the first year of the five-year CIP, debt service, new ongoing and one-time supplemental budget additions and carryovers from the FY2023 budget.  Resolution 2023-2309 sets the FY2024 tentative budget for the City and schedules a public hearing for the final budget and property tax levy for June 12, 2023, at 5:00 p.m.

ADOPT RESOLUTION NO. 2023-2309 ADOPTING THE FISCAL YEAR 2023-2024 ESTIMATES OF REVENUES AND EXPENSES FOR THE CITY OF GOODYEAR, INCLUDING ESTIMATED PROPERTY TAX LEVY AND PROPERTY TAX RATES, AS THE TENTATIVE BUDGET FOR FISCAL YEAR BEGINNING JULY 1, 2023 AND ENDING JUNE 30, 2024; SETTING FORTH THE RECEIPTS AND THE AMOUNTS ESTIMATED AS COLLECTIBLE FOR THE PREVIOUS FISCAL YEAR; THE AMOUNT PROPOSED TO BE RAISED BY DIRECT PROPERTY TAXATION FOR THE VARIOUS PURPOSES; GIVING NOTICE OF THE TIME FOR HEARING TAXPAYERS; FOR ADOPTION OF BUDGET AND SETTING THE TAX LEVIES. (Ryan Bittle, Finance Manager; Doug Sandstrom, Finance Director)

This is the first official step in adopting the FY2024 budget. Adoption of the tentative budget sets the expenditure limitation amount for FY2024 and authorizes expenditure of funds in FY2024. No sales tax rate changes are included in this budget, primary property taxes are at the maximum levy consistent with financial policy, and the secondary property tax levy is set so that combined the total property tax rate remains under $1.74 per $100 of assessed valuation. 

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 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 as part of the City Council Retreat that 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. The City Manager’s Recommended Budget was developed within the framework of our financial plan and complies with all aspects of that plan. The changes from the recommended budget are shown in the staff analysis section of this report. To comply with state statute, the Council must adopt a tentative budget. Budget and Truth in Taxation publications will each appear twice in the newspaper per state requirements. The required public hearing for budget adoption, Truth In Taxation and Final Budget adoption will follow on June 12, 2023. The Property Tax Levy adoption will occur on June 26, 2023.

This budget was built from a framework of stable city revenues albeit with several future unknowns surrounding potential legislation as well as general economic conditions. In addition, labor shortages, supply chain disruptions, and inflation rates have stubbornly persisted and continue to pose challenges to operations. The budget framework remains one of maintaining current programs and services, adding depth to support services, addressing the highest priorities expressed by City Council, compensating employees fairly, providing capacity to absorb revenue losses or cost increases, and continuing the capital improvement program given both the needs of the organization and the benefits that derive to the local economy from such projects. The FY2024 tentative budget complies with all financial policies including General Fund ongoing resources exceeding the ongoing uses.

Changes From City Manager's Recommended Budget
 

		RESOURCES	EXPENDITURES
	CMO RECOMMENDED BUDGET	$      652,762,200	$581,945,600
1	Fund Balance: CIP Carryovers	221,081,500	221,081,500
2	Fund Balance: Non-CIP Carryovers	10,577,500	10,577,500
3	Fund Balance: Updated Estimates	(1,026,000)
4	Property Tax Correction	192,000
5	Base Budget Adjustments		548,900
6	Supplemental: Assistant to the Council		137,000
7	Supplemental: Government Relations Position		206,600
8	Supplemental: Mobile Fire Station Assessment		50,000
9	GSQ Gen 2 Parking Garage	(12,500,000)	(20,000,000)
10	Community Facilities Districts	(1,243,300)	(1,243,300)
11	Ambulance		400,000
12	Const ST Long Term Storage Credits Purchase	6,800,000	6,800,000
13	Policy Reserve Adjustment		(13,800)
14	CIP Reserve Adjustment		6,459,000
	TENTATIVE BUDGET	$      876,643,900	$      806,949,000