PowerPoint Presentation (Updated 1/28/2025)

Council Workshop
FY25-26 Budget Discussion
January 28, 2025

Agenda
2
1) FY25-26 Budget Overview
a) Property Tax Levy
2) Five-Year Financial Forecasts
a) General Fund
b) Special Revenue Funds
c) Enterprise Funds

Budget Calendar
3
Item
Date
Workshop #1 – Budget Overview / Revenues / Five-Year Financial Forecasts 
January 28, 2025
Workshop #2 – FY26-35 Capital Improvement Plan 
March 4, 2025
Workshop #3 – (All Day) FY26 Operating Budget Department Presentations
April 1, 2025
Workshop #4 – (All Day) FY26 Operating Budget Department Presentations
April 3, 2025
Workshop #5 – FY26 Operating, CIP, Debt, Contingency
April 22, 2025
Voting Meeting – Tentative Budget Adoption
May 13, 2025
Voting Meeting – Final Budget Adoption / Property Tax Levy
June 10, 2025
Voting Meeting – Property Tax Adoption
June 24, 2025

Budget Process
4
Staff Develops Five-
Year Financial 
Forecasts
Council Workshop
January 28, 2025
Staff Develops and 
Balances the CIP
Council Workshop
March 4, 2025   
Staff Develops Base 
Operating Budget 
Requests 
Council Workshops
April 1, 2025
April 3, 2025
Staff Finalizes City 
Manager's Proposed 
Budget
Council Workshop
April 22, 2025 
City Council Adopts 
Tentative Budget
May 13, 2025
City Council Adopts 
Final Budget
June 10, 2025
City Council Adopts 
Property Tax
June 24, 2025

Budget Components
5
Revenues/Fund 
Balance
Capital Improvement 
Plan
Debt Service
Contingency
Operating
Expenditures

6
Property Tax

Financial Policies – Property Tax
7
“To ensure ongoing General Fund stability, the 
primary property tax levy will be evaluated each year 
to determine where it should be set.”

Property Tax
8
Schools
~59%
City of 
Glendale 
(Prim.)
~4%
City of 
Glendale 
(Voter 
Approved)
~15%
County
~14%
Special 
Districts
~8%
Total Tax 
Bill 100%

Property Tax Bill Example ($445k Home)*
9
2023
2024
Changes
Assessed Value
$131,738 
$138,324
$6,586 
Full Cash Value
$292,200 
$364,700 
$72,500 
Property Tax Levy Calculation
2023
2024
Rate
Levy
Rate
Levy
$ Change
Schools/Education (59%)
$683.25 
$655.88 
($27.37) 
Glendale Primary (4%)
0.3484
$45.90 
0.3328
$46.03 
$0.13
Glendale Secondary (15%)
1.2142
$159.96 
1.1597
$160.41 
$0.45
County (14%)
$158.67 
$160.33 
$1.66 
Special Districts (8%)
$81.94 
$84.17 
$2.23 
Total
$1,129.72 
$1,106.82 
($22.90)

Property Tax Levy with 2% Increase
10
• Primary – Levy increased by 2%
• Secondary (Voter Approved) – No levy increase
• Simple example, assumes no new construction & no increase in assessed valuation
FY24-25
FY25-26
Budget
Projected
Rate
Levy
Rate
Levy
Increase
Primary
0.3328 
$7,008,912 
0.3395
$7,149,090 
$140,178 
Secondary
1.1597
24,423,783
1.1597
24,423,783
0
Total
1.4925
$31,432,695 
1.4992
$31,572,873 
$140,178

Cumulative Effect of Flat Primary Levy
11
$5,530 
$5,621 
$5,684 
$5,760 
$5,857 
$5,937 
$6,088 
$6,267 
$6,553 
$7,009 
$112 
$228 
$348 
$472 
$600 
$734 
$874 
$1,023 
$1,183 
 $5,000
 $5,500
 $6,000
 $6,500
 $7,000
 $7,500
 $8,000
 $8,500
Base
2% Effect

Cumulative Effect of New Construction
12
$5,530 
$5,530 
$5,530 
$5,530 
$5,530 
$5,530 
$5,530 
$5,530 
$5,530 
$5,530 
$92 
$155 
$230 
$327 
$407 
$559 
$737 
$1,023 
$1,479 
 $-
 $1,000
 $2,000
 $3,000
 $4,000
 $5,000
 $6,000
 $7,000
 $8,000
Base
New Const

Glendale Combined Property Tax Rate
13
2.1965
2.149
2.0772
1.9764
1.8585
1.8012
1.7257
1.6701
1.5626
1.4925
1
1.2
1.4
1.6
1.8
2
2.2
2.4
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Combined Property Tax Rate

Median Home Market Value vs Glendale 
Property Tax Payment
14
 150
 200
 250
 300
 350
 400
 -
 50,000
 100,000
 150,000
 200,000
 250,000
 300,000
 350,000
 400,000
 450,000
 500,000
2017
2018
2019
2020
2021
2022
2023
2024
2025
Property Tax Payment
Home Value
 Value
Tax Payment

Property Tax Discussion
15
• Primary Levy Summary
– Any general fund expense
– Allowable up to a 2% increase per year
– Cumulative increase is approximately $1.2M
• Council Consensus
1. Flat Primary Tax Levy
2. Flat Primary Rate
3. 2% Levy Increase

Secondary Property Tax Revenue
16
$19,269 
$19,269 
$19,269 
$19,269 
$19,269 
$19,269 
$19,269 
$19,269 
$19,269 
$19,269 
$319 
$539 
$802 
$1,140 
$1,421 
$1,947 
$2,569 
$3,569 
$5,155 
 $-
 $5,000
 $10,000
 $15,000
 $20,000
 $25,000
 $30,000
Base
New Const

Property Tax Discussion
17
• Secondary Levy Summary
– Debt service on General Obligation (G.O.) bonds only
– Currently flat levy 
• Assumes slight growth from new construction
• Council Consensus
1. Flat Primary Tax Levy
2. Flat Primary Rate
3. 2% Levy Increase

18
Questions?

Five-Year Financial Forecasts
19

Five-Year Financial Forecasts
20
• First step in the FY25-26 budget process
• Forecasts are high-level overviews
• Government Finance Officers Association (GFOA) Best Practice
• Developed with data collected from several sources:
– Arizona Department of Revenue (ADOR)
– Arizona League of Cities and Towns 
– Arizona Joint Legislative Budget Committee (JLBC)
– Arizona Department of Transportation (ADOT)
– City of Glendale Historical Data (5 years)
– Other Comparable Cities

Five-Year Financial Forecasts
21
• Shows longer-term impacts of current-year budget 
decisions
• Highlights financial trends
– General Fund
– Special Revenue Funds (PSST, HURF, Transportation)
– Enterprise Funds (Water Services*, Solid Waste, Landfill)

FY2025 Forecasted Revenue by Fund Type
22
General
54%
Landfill
3%
HURF
3%
Solid Waste
4%
Public Safety
6%
Transportation
7%
Water
24%

FY2025 Forecasted General Fund Revenue
23
City Sales Tax
49%
Primary Property 
Tax
2%
Other
4%
Fees, Licenses, & 
Permits
7%
Intergovernmental 
Payments
12%
State 
Shared 
Sales Tax
11%
State Shared 
Income Tax
15%

Total Sales Tax Revenue
24
 -
 50,000,000
 100,000,000
 150,000,000
 200,000,000
 250,000,000
 300,000,000
FY2019
FY2020
FY2021
FY2022
FY2023
FY2024
Total Sales Tax Received
Annual TPT Increase
•
FY2019 – 5.8%
•
FY2020 – 5.8%
•
FY2021 – 11.3%
•
FY2022 – 22.4%
•
FY2023 – 13.6%
•
FY2024 – 1.4%

General Fund Revenue Assumptions
25
• City Sales Tax
– Elimination of Residential Rental Tax
• $13.7M collected in residential rental tax in FY24 across all funds
– $7.5M General Fund
– $2.1M Public Safety Sales Tax – Police
– $1.0M Public Safety Sales Tax – Fire
– $3.1M Transportation Sales Tax
• Elimination of Residential Rental Tax beginning January 1, 2025
– Conservative growth for FY26 through FY30
• Assumed reductions in construction sales tax beginning in FY26, reaching 
average trend in FY30
• 2% average growth for all other categories

General Fund Revenue Assumptions
26
• VAI Resort
• State-Shared Sales Tax
– Consistent with Department of Revenue report
• State-Shared Income Tax
– Based on state income tax collected 2 years ago
• Reduction in FY26, conservative growth for FY27-29
• Updated AZSTA Repayment Schedule for Camelback 
Ranch

Total General Fund Revenue
27
 -
 50,000,000
 100,000,000
 150,000,000
 200,000,000
 250,000,000
 300,000,000
 350,000,000
 400,000,000
 450,000,000
FY2019
FY2020
FY2021
FY2022
FY2023
FY2024
FY2025
FY2026
FY2027
FY2028
FY2029
FY2030
ACTUALS
FORECAST

City Sales Tax – All Funds
28

General Fund Expenditure Assumptions
29
• Operating Expenses
– 5% average increase for FY26, 4% for FY27, and 3.5% for FY28-30
• Salaries (including Temp Pay and Overtime) - $9.3M increase for 
FY26
• Benefits and Retirement - $3.7M increase for FY26
• Increases to Public Safety per Memorandums of 
Understanding
• Replacement of Fire Apparatus
• Replacement of Police Radios
• Improvements at City Facilities

General Fund Expenditure Assumptions
30
• Certificates of Participation (PSPRS Pension Obligations)
– PSPRS contribution rates 
– $20.0M in debt service for FY26 and increases to an average of 
$21.3M for FY27-30
– Pension reserve fund - $20M funded in FY26
• Vehicle Replacement Fund – 8% annual increase
• Council Contingency $5M in FY26
– Contingency amount can be evaluated annually
– Use of contingency requires Council approval

General Fund Forecast
31

General Fund Summary
32
• Changes in City Sales Tax
• Elimination of Residential Rental Tax
• Slow down of Construction Sales Tax
• Capital investment for FY26 focuses on maintaining city 
facilities and public safety equipment replacement 
• Monitor revenues and economy closely
– Conservative forecast

Special Revenue Funds
33
Funds are legally restricted
Transportation & HURF Funds are capital-intensive
•
Capital plans will be updated during the budget process
Revenue Assumptions
• Highway User Revenue Fund (HURF)
– Conservative growth
• Transportation Sales Tax
• Public Safety Sales Tax (Police & Fire)
– Same assumptions as General Fund

Highway User Revenue Fund  (HURF)
34

Transportation Sales Tax
35

Public Safety Sales Tax – Police
36

Public Safety Sales Tax – Fire
37

Special Revenue Fund Summary
38
• Watch revenues/economy closely
• Manage Capital Outlay to stay within fund 
balance policies

Enterprise Funds
39
• Solid Waste and Landfill
• Water Five-Forecast – February 11, 2025
• Supported primarily by user fees or charges
• Funds operate much like a not-for-profit business
• Revenue Assumptions
– Assumes Council approved rate increases only
– Nominal enterprise fund revenue growth
• More capital-intensive operations

Solid Waste
40

Landfill
41

Enterprise Fund Summary
42
• Watch revenues/economy closely
• Manage capital outlay to minimize debt service costs
• Ensure responsible timing of rate adjustments
• Plan for future debt issuance, if necessary
• Water Five-Forecast – February 11, 2025

43
Questions?

Budget Calendar
44
Item
Date
Workshop #1 – Budget Overview / Revenues / Five-Year Financial Forecasts 
January 28, 2025
Workshop #2 – FY26-35 Capital Improvement Plan 
March 4, 2025
Workshop #3 – (All Day) FY26 Operating Budget Department Presentations
April 1, 2025
Workshop #4 – (All Day) FY26 Operating Budget Department Presentations
April 3, 2025
Workshop #5 – FY26 Operating, CIP, Debt, Contingency
April 22, 2025
Voting Meeting – Tentative Budget Adoption
May 13, 2025
Voting Meeting – Final Budget Adoption / Property Tax Levy
June 10, 2025
Voting Meeting – Property Tax Adoption
June 24, 2025