The City Council will hold a public hearing to receive a staff presentation (Attachment E) and public comment on the proposed final budget for fiscal year 2025-2026 (FY2026) as tentatively approved on May 19, 2025, 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 23, 2025. No changes from the May 19, 2025, 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).

 

Conduct a public hearing and by resolution adopt the final estimates by the city of Goodyear for the fiscal year beginning July 1, 2025 and ending June 30, 2026 and on the proposed primary property tax levy increase of $303,271; and Approve the Truth-in-Taxation increase of $303,271 for FY2026 by a roll call vote. (Ryan Bittle, Finance Manager)

The FY2026 Budget totals $1,204,703,500. 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 FY2026 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 FY2026 budget process officially kicked off back in calendar year 2024 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 November 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 FY2026 budget was built. In April the City Manager presented a sustainable recommended budget which focused on growth, continuing existing programs and services to a larger residential base, fair compensation for employees, opening new capital facilities, and continuing the capital improvement program. 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 19, 2025. The approved tentative budget was published in the Arizona Republic West Valley Edition on May 23, and May 30 2025, 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 23rd and May 30th, 2025 (Attachment A), as well as in a news release on May 21st, 2025 (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 FY2026 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, $303,271 is above the Truth In Taxation levy limit of $16,179,052. The total primary property tax levy will be $16,503,128. Final action to set the primary and secondary property taxes for the city of Goodyear is scheduled for June 23rd, 2025, 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.