Budget Overview and CIP

Budget Overview and Capital Improvement Plan
January 21, 2026

Agenda
2
1) Budget Overview
2) Capital Improvement Plan (CIP) Overview
3) General Obligation Bonds

Budget Process
3
Staff 
Prepares 
5-Year 
Financial 
Forecast
Develop 
Base 
Operating 
Budget 
Requests
Develop 
and 
Balance 
CIP
Present 
Draft 
Budget 
Council 
Adopts 
Final 
Budget
Staff 
Prepares 
Budget 
Book

Budget Components
4
Revenues
Capital Improvement 
Plan
Debt Service
Contingency
Operating
Expenditures

Balanced Budget
5
Revenues/Fund 
Balance
Expenditures

FY25-26 Total Budget Appropriation
6
Operating 
$710M
48%
Capital
 $478M
33%
Contingency 
$157M
11%
Debt 
$115M
8%
FY25-26 Total Budget
$1.46B

FY25-26 Operating Budget by Fund
7
General Fund
$338M
48%
Enterprise Funds
$151M
21%
Internal Service 
Funds
$122M    17%
Special Revenue 
Funds
$87M     12%
Vehicle Replacement Fund
$12M  2%
Total FY25-26 Budget
$710M

Elements of a Capital Improvement Plan
8
• Assets valued over $50,000 with a useful life of 5+ years
• Land, buildings, streets & improvements, plants, large 
equipment
• Ten-Year Plan (only FY25-26 is adopted as part of the 
FY25-26 budget)
– Projects in years 1 to 5 have identified funding sources
Financial Policy:
A. Improve existing assets
B. Replace existing assets as needed
C. Construct new assets

CIP Funding Sources
9
• Enterprise Funds
– Water/Sewer
o Funding can come from G. O. Bonds, revenue bonds, revenue obligations or cash financing
o Debt service paid from future water/sewer fee revenue
– Landfill – paid by Landfill user fees
– Solid Waste – paid by Solid Waste user fees
• General Obligation Bonds
– Debt issuance must be authorized by Voters 
– Streets, Public Safety, Parks, Government Facilities, Open Space/Trails, 
Libraries, and Flood Control
– Debt service paid by Secondary Property Tax
• Pay-As-You-Go
– Cash funded projects

CIP Funding Sources
10
• Transportation Sales Tax
– Half cent sales tax 
– Improve service for all modes of transportation
• Highway User Revenue Funds
– Restricted Special Revenue Fund
– Right of Way acquisition, construction, reconstruction, maintenance, and repair 
• Development Impact Fees 
– One-time charges to developers for new development
– New or expanded infrastructure
• Grants
– Federal or state grant funding
– Often require a match contribution to the project

10-Year CIP by Project Type
11
Water 
$737M  30%
Streets 
$481M  20%
Public Safety 
$323M  13%
Wastewater 
$297M  12%
Facility Maintenance 
$169M  7%
Parks  
 $137M 6%
Solid Waste
 $58M 2.4%
Drainage
 $56M 2.3%
Airport
 $53M 2.2%
Landfill 
$42M 1.7%
Library
 $37M  1.5%
Parking Lots
 $22M  0.90%
Transit 
$11M  0.46%
Arts
 $1M  0.04% 
Total 10-Year CIP      
$2.423B

10-Year CIP by Funding Source
12
Enterprise Funds 
$1.133B 47%
G. O. Bonds 
$515M 21%
Special Revenue 
$404M 17%
Pay-As-You-Go 
$196M 8%
Grants 
$111M 5% 
Development Impact Fees 
$64M 2%
Total 10-Year CIP      
$2.423B

13
General Obligation (G.O.) Bonds
• Paid for using secondary property tax
– Assumes a flat levy
• Must be authorized by voters
• Constitutional limits
– Based on Net Assessed Full Cash Value
– Outstanding G.O. debt may not exceed:
• 20% for combined water, sewer, public safety, streets, transportation, 
open space, and parks
• 6% for general municipal purposes

Property Tax
14
• Primary Levy Limit
– Any general fund expense
– Allowable 2% increase per year
• Secondary Levy Limit
– Debt service on General Obligation (G.O.) bonds only
– Currently flat levy 
• Assumes slight growth from new construction

Property Tax
15
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)*
16
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)

Debt Management Policy
17
• Adopted by City Council in October 2020
• The City Council will not authorize the issuance of new 
G.O. bonds if the levy amount required to pay the debt 
service on the existing G.O. bonds plus the new G.O. 
bonds exceeds the amount of the current year’s tax levy 
plus an amount of up to 2% per year for new growth 
(i.e. new property added to the tax rolls)
• Existing G.O. Debt Service + New G.O. Debt Service ≤ 
Current Levy + 2% Growth

Secondary Property Tax History
18
$19,065 $19,269 $19,588 $19,807 $20,071 $20,409 $20,689 $21,217 $21,837 
$22,838 
$24,424 
$0
$5,000
$10,000
$15,000
$20,000
$25,000
FY15
FY16
FY17
FY18
FY19
FY20
 FY21
 FY22
FY23
FY24
FY25
Secondary Property Tax History (In Thousands)
Secondary Property Tax

19
G.O. Bond Debt Service Capacity
 $-
 $5,000,000
 $10,000,000
 $15,000,000
 $20,000,000
 $25,000,000
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
G.O Bonds Annual Debt Service
Principal
Interest

Questions?
20