| ITEM #: 11. DATE: 06/22/2026 AI #:3285 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | ORDINANCE LEVYING PRIMARY AND SECONDARY PROPERTY TAX LEVIES FOR FY2027 |
| STAFF PRESENTER(S): | Ryan Bittle, Deputy Director of Finance |
SUMMARY
Adopt the primary and secondary property tax levies for FY2027.
STRATEGIC PLAN ALIGNMENT
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RECOMMENDATION
Adopt Ordinance No. 2026-1650 levying upon the assessed valuation of the property within the City of Goodyear, subject to primary and secondary taxation a certain sum upon each one hundred dollars ($100.00) of valuation sufficient to raise the amounts estimated to be required in the Annual Budget for the purpose of paying for various expenses; to raise the amount estimated to be received from other sources of revenues; providing funds for various bond redemptions, for the purpose of paying principal and interest upon bonded indebtedness; all for fiscal year ending the 30th day of June, 2027. (Ryan Bittle, Deputy Director of Finance)
FISCAL IMPACT
The primary and secondary property tax levies are a part of an overall finance strategy that provides funding for the city's budget. The adopted FY2027 Budget totals $1,419,198,600 dollars, of which $34,229,145 is funded by these property tax levies.
Adopting these property tax levies is the final step in the process of establishing the FY2027 budget.
If approved, $17,917,545 will be generated from the primary property tax levy to support the General Fund's ongoing operations and $16,311,600 will be generated from the secondary property tax levy to pay debt service on voter-approved General Obligation (G.O.) Bond debt.
Adopting these property tax levies is the final step in the process of establishing the FY2027 budget.
If approved, $17,917,545 will be generated from the primary property tax levy to support the General Fund's ongoing operations and $16,311,600 will be generated from the secondary property tax levy to pay debt service on voter-approved General Obligation (G.O.) Bond debt.
BACKGROUND AND PREVIOUS ACTIONS
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.
- 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 Business Gazette, Republic 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.
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 Arizona Business Gazette, Republic Edition (a local newspaper of general circulation) on May 22nd and May 29th, 2026, as well as in a news release on May 20th, 2026.
- 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. A public hearing was held on June 8th, 2026, prior to final adoption of the FY2027 budget and for the Truth-In-Taxation requirements associated with the Primary Property Tax levy. On June 8th, the City Council also adopted the Truth-In-Taxation increase of $329,905 that is included in the primary property tax levy presented for approval.
- 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.
- 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 Business Gazette, Republic 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.
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 Arizona Business Gazette, Republic Edition (a local newspaper of general circulation) on May 22nd and May 29th, 2026, as well as in a news release on May 20th, 2026.
- 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. A public hearing was held on June 8th, 2026, prior to final adoption of the FY2027 budget and for the Truth-In-Taxation requirements associated with the Primary Property Tax levy. On June 8th, the City Council also adopted the Truth-In-Taxation increase of $329,905 that is included in the primary property tax levy presented for approval.
STAFF ANALYSIS
The primary property tax levy for FY2027 of $17,917,545 is expected to create a primary property tax rate of $0.9082 per $100 of assessed valuation. As a part of the general fund revenue, the primary property tax levy supports general fund activities, including police and fire protection, operations and maintenance, and many other general governmental functions. This levy amount is consistent with the City Council's adopted financial policy to maximize the primary property tax. The secondary property tax levy of $16,311,600 is expected to create a secondary property tax rate of $0.8268 per $100 of assessed valuation and will be used to fund the principal, interest, and redemption charges on voter-approved general obligation bonds. The FY2027 overall combined property tax rate of $1.7350 would equate to a city property tax payment of $173.50 for a home with an assessed value of $100,000. Ordinance No. 2026-1650 is provided as Attachment A.