City Manager Recommended Budget Presentation 4.22.25 v3.pptx

CITY MANAGER’S
FY2025-26 RECOMMENDED 
BUDGET
$552.7 Million
May 6, 2025
Gregory Luethje
Budget Manager

Overview of Presentation
• Financial Policies Review
• Citywide Budget Overview
Recommended Budget
All Funds Revenues/Expenditures
General Fund Revenues/Expenditures
• Budget Highlights
• CIP Summary

Financial Policies
• Conservative revenue estimates
• Ongoing expenditures are paid for with ongoing revenues
• $35.1M of Construction TPT recognized for one-time expenditures
• Impact fees will be used to pay for growth related capital projects
• Continue to invest in the future (Fully Funded 5-year CIP - General)
• Maintain GFOA recommended 17% unreserved fund balance 
(Rainy Day Fund – not appropriated) for General Fund and 
Enterprise Funds
FY 2025-26 RECOMMENDED BUDGET

FY2025-26 Recommended Budget
All Funds - Where Does the Money Come From?  $552.7 Million

FY2025-26 Recommended Budget
All Funds - Where Does the Money Go?  $552.7 Million
All Funds – By 
Category
Excludes Inter-fund transfers and carryovers
Capital Projects funds
$16.2
Enterprise funds
$14.5
General fund
$0.8
Special Revenue funds
$1.3
$32.8
Contingencies

FY2025-26 Recommended Budget
City Sales Taxes - $101.6 Million, 21% of Budget

FY2024-25 Recommended Budget
State Shared Revenues - $53.1 Million, 11% of Budget

FY2025-26 Recommended Budget
Permit Revenues - $19.2 Million, 4% of Budget

FY2025-26 Recommended Budget
Primary Property Taxes - $16.7 Million, 3.4% of Budget

FY2025-26 Recommended Budget
Primary Property Tax Levy - $16.7 Million, 3.4% of Budget
 $-
 $2
 $4
 $6
 $8
 $10
 $12
 $14
 $16
 $18
 $-
 $100
 $200
 $300
 $400
 $500
 $600
 $700
 $800
 $900
 $1,000
 $1,100
FY 16-17
FY 17-18
FY 18-19
FY 19-20
FY 20-21
FY 21-22
FY 22-23
FY 23-24
FY 24-25
Proposed FY
25-26
Tax Levy in Millions
Assessed Value in Millions
 Primary Net Assessed Value
 Primary Property Tax Levy

FY2025-26 Recommended Budget
Primary and Secondary Property Tax Levy - $2.25 Combined Tax Rate
Fiscal Year
Revenue
 Rate 
Proposed 2026 Primary 
16,678,800
$    
$1.6004
Proposed 2026 Secondary
6,769,500
$      
$0.6496
23,448,300
$    
$2.2500

FY2025-26 Recommended Budget
Enterprise Fees - $74.5 Million, 15.6% of Budget

• Arizona Lottery Fund
$900,000
• Fire Grants       
$868,600
• Police Grants
$2,752,900
• Street Sweepers 
$699,000
• ARPA for White Tanks Recovery Well     
$12,000,000
Total Budgeted Grants (Applications and Awarded) $43,648,500
FY2025-26 Recommended Budget
Awarded Grants

FY2025-26 Recommended Budget
General Fund – Where Does the Money come From?  $209.4 Million 
Excludes interfund transfers
TPT (Sales Taxes), 
$101.2, 48%
Property Taxes, 
$16.9, 8%
Intergovernmental Revenues, $45.0, 
21%
Licenses and Permits, 
$20.1, 10%
Franchise Fees, $4.0, 
2%
Charges for Services, $9.6, 5%
Misc, $12.7, 6%

FY2025-26 Recommended Budget
General Fund - Where Does the Money Go?  $191.1 Million
General 
Fund by 
Category
Excludes interfund transfers

FY2025-26 Recommended Budget
General Fund - Where Does the Money Go?  $191.1 Million
General Fund 
Budget % by 
Department

General Fund Ongoing and One-Time Balances
FY2025-26 Recommended Budget
General Fund Ongoing and One-Time Balances
General Fund Ongoing
General Fund One-Time
Revenue & Transfers In
$173,198,300
Beginning Balance
$81,604,800
Base Budget
(163,747,800)
Revenue & Transfers In
40,200,000 
Ongoing Supplementals
(4,465,600)
Base - One Time
(2,430,400)
Transfers Out
(4,984,900)
Capital Projects
(51,439,200)
Remaining Balance
$0
One-Time Supplementals
(19,738,000)
Transfers Out
(18,001,400)
Contingency
(752,000)
Rainy Day Reserve
(29,443,800)
Remaining Balance
$0

FY2025-26 Recommended Budget
PERSONNEL – TOTAL AUTHORIZATION – 962.35 Positions
Public Works Includes HURF and Environmental Services

• All staff – 2.5% COLA
• All staff – 1% City Deferred Compensation Contribution
• Non-Public Safety staff - 4% Merit
• Represented Public Safety staff – Steps at 5%, 1 Step Increase
• Paying down Police Unfunded Pension Liability ($1M)
FY2025-26 Recommended Budget
PERSONNEL – EMPLOYEE COMPENSATION

• Set aside funds each year to limit peaks in spending
• Council Strategic Goal
• Community Services - $1M
• Information Technology - $1M
• Public Works Facilities - $1.5M
• Vehicle Replacements - $5.4M
• Water Resources - $4.5M
Budget Highlights
Asset Management Program $13 million

• 6 Police Officers (3 Fiscal Year, 3 Mid-Year) and 2 Police Sergeants 
(1 Fiscal Year, 1 Mid-Year)
• 3 Fire Captains (Mid-Year) and 3 Fire Battalion Chiefs. This adds a 
2nd Battalion Chief and Battalion Safety Officer per shift.
• Fire Master Plan extending to 2040 for staffing and resources 
• Police Drone First Responder Program 
• Real Time Intelligence Center Equipment 
Budget Highlights
Public Safety

• Arts & Culture Master Plan 
• Public Art Projects
• Westpark Community Park Master Plan
• North Zone Community Park Master Plan
• Joe Foss Shooting Range
Budget Highlights
Community Services

• Development Services
• Area Drainage Master Plan update
• 10 new positions reducing professional services by $725,000
• Finance
• Landfill Audit 
• Fraud and Risk Analysis
Budget Highlights

Category by Year
FY2026-2030 5-Year CIP Plan
FY25
FY26
FY27
FY28
FY29
FY30
Community Services
3,006,900
$     
7,400,000
$     
15,000,000
$   
8,500,000
$     
9,545,000
$     
3,125,000
$   
General Government
29,364,600
     
20,985,000
     
11,865,000
     
13,455,600
     
3,960,000
       
6,272,000
     
Public Safety
24,411,300
     
5,685,000
       
32,300,000
     
2,600,000
       
86,300,000
     
-
                  
Transportation and Streets
49,367,700
     
67,152,500
     
18,310,000
     
30,220,000
     
33,568,000
     
21,220,000
   
Water Resources
83,791,800
     
50,150,000
     
59,268,000
     
50,250,000
     
40,000,000
     
17,500,000
   
189,942,300
$ 
151,372,500
$ 
136,743,000
$ 
105,025,600
$ 
173,373,000
$ 
48,117,000
$ 
•
FY2025 Projects will continue into FY2026
•
FY2025 is larger because it includes FY2024 carryover funding
•
FY2025 carryovers will be added to FY2026 totals for Tentative Budget
•
FY2029 is larger for expected second GO Bond Issuance
•
General Government Includes Airport, Development Services, Facilities, and IT

FY2026-2030 5-Year CIP Plan

FY2026-2030 5-Year CIP Plan
• Funding Assumptions for Projects
• Use of Construction TPT and prior year surplus (fund balance)
• Impact Fees used for growth related projects
• Grant and Intergovernmental funding where available
• GO Bond funding used for selected Streets and Public Safety Projects
• Water and Wastewater will require alternative and/or additional revenues in 
outer years
• Volatility continues in the market
• Unpredictable cost changes may be seen (tariffs, inflation)
• Supply chain and labor shortages can impact plan
• If needed will delay and extend projects due to these factors

• May 20, 2025
Adoption of Tentative Budget
• June 3, 2025
Truth-in-Taxation and Adoption of Final 
Budget (Public Hearing)
• June 17, 2025
Adoption of Property Tax Levy
FY2025-26 Recommended Budget
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