PowerPoint Presentation (Added 1/23/26)*

Council Workshop
FY26-27 Budget Discussion
January 27, 2026

Agenda
2
1) FY26-27 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 27, 2026
Workshop #2 – FY27-36 Capital Improvement Plan
March 3, 2026
Workshop #3 – (All Day) FY27 Operating Budget Department Presentations
March 30, 2026
Workshop #4 – FY27 Total Tentative Budget (Operating, CIP, Debt, Contingency)
April 14, 2026
Voting Meeting – Tentative Budget Adoption
May 12, 2026
Voting Meeting – Final Budget Adoption / Property Tax Levy
June 9, 2026
Voting Meeting – Property Tax Adoption
June 23, 2026

Budget Process
4
Staff Develops Five-
Year Financial 
Forecasts
Council Workshop
January 27, 2026
Staff Develops and 
Balances the CIP
Council Workshop
March 3, 2026
Staff Develops Base 
Operating Budget 
Requests 
Council Workshops
March 30, 2026
Staff Finalizes City 
Manager's Proposed 
Budget      
Council Workshop
April 14, 2026
City Council Adopts 
Tentative Budget
May 12, 2026
City Council Adopts 
Final Budget
June 9, 2026
City Council Adopts 
Property Tax
June 23, 2026

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
~58%
City of 
Glendale 
(Prim.)
~4%
City of 
Glendale 
(Voter 
Approved)
~15%
County
~15%
Special 
Districts
~8%
Total Tax 
Bill 100%

Property Tax Bill Example ($435k Home)*
9
2024
2025
Changes
Assessed Value
$138,324 
$145,241
$6,917
Full Cash Value
$364,700 
$334,100 
$30,600
Property Tax Levy Calculation
2024
2025
Rate
Levy
Rate
Levy
$ Change
Schools/Education (59%)
$655.88 
$661.90 
$6.02 
Glendale Primary (4%)
0.3328
$46.03
0.3242
$47.09 
$1.06
Glendale Secondary (15%)
1.1597
$160.41 
1.1296
$164.06 
$3.65
County (14%)
$160.33 
$168.35 
$8.02 
Special Districts (8%)
$84.17 
$91.22 
$7.05 
Total
$1,106.82 
$1,13262
$25.80

Primary Property Tax Levy w/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
FY25-26
FY26-27
Budget
Projected
Rate
Levy
Rate
Levy
Increase
Primary
0.3242 
$7,275,997 
0.3307
$7,421,517 
$145,520 
Secondary
1.1296
24,423,783
1.1296
24,423,783
0
Total
1.4538
$31,432,695 
1.4992
$31,845,300
$145,520

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 
$7,276 
$112 
$228 
$348 
$472 
$600 
$734 
$874 
$1,023 
$1,183 
$1,353 
 $5,000
 $5,500
 $6,000
 $6,500
 $7,000
 $7,500
 $8,000
 $8,500
 $9,000
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 
$5,530 
$92 
$155 
$230 
$327 
$407 
$559 
$737 
$1,023 
$1,479 
$1,746 
 $-
 $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
1.4538
1
1.2
1.4
1.6
1.8
2
2.2
2.4
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
Combined Property Tax Rate

Combined Property Tax Rates
14
0.90
0.94
0.98
1.08
1.44
1.45
1.46
1.74
2.08
2.25
2.46
Scottsdale
Surprise
Gilbert
Chandler
Peoria
Glendale
Avondale
Goodyear
Phoenix
Buckeye
Tempe

Median Home Market Value vs Glendale 
Property Tax Payment
15
 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
2026
Property Tax Payment
Home Value
 Value
Tax Payment

Primary Property Tax Discussion
16
• 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 Levy
2. 2% Primary Levy Increase
3.  Flat Primary Rate

Secondary Property Tax Revenue
17
$19,269 
$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 
$6,083 
 $-
 $5,000
 $10,000
 $15,000
 $20,000
 $25,000
 $30,000
Base
New Const

Secondary Property Tax Discussion
18
• 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 Secondary Tax Levy
2. 2% Secondary Levy Increase
 
3.  Flat Secondary Rate

19
Questions?

Five-Year Financial Forecasts
20

Five-Year Financial Forecasts
21
• First step in the 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
22
• 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)

FY2026 Forecasted General Fund Revenue
23
City Sales Tax
52%
Primary Property 
Tax
2%
Other
4%
Fees, Licenses, & 
Permits
7%
Intergovernmental 
Payments
10%
State 
Shared 
Sales Tax
11%
State Shared 
Income Tax
14%

Total City Sales Tax (TPT) Revenue
24
 -
 50,000,000
 100,000,000
 150,000,000
 200,000,000
 250,000,000
 300,000,000
 350,000,000
FY2019
FY2020
FY2021
FY2022
FY2023
FY2024
FY2025
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%
•
FY2025 – 1.3%

Total City Sales Tax – All Funds
25

Year-to-Date City Sales Tax
26

FY2025 TPT Growth
27
12.4%
5.5%
1.3%
0.7%
-0.6%
-0.9%
-1.3%
-3.1%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Gilbert
Peoria
Glendale
Scottsdale
Mesa
Phoenix
Chandler
Tempe

General Fund Revenue Assumptions
28
• City Sales Tax
– Elimination of Residential Rental Tax
– Conservative growth for FY27 through FY31
• Assumed reductions in construction sales tax beginning in 
FY26, reaching an average trend in FY31
• 1-2% average growth for all other categories

General Fund Revenue Assumptions
29
• State-Shared Sales Tax
– Consistent with Department of Revenue report
• State-Shared Income Tax
– Reduction in FY27, conservative growth for FY28–31
– New Federal Income Tax Deductions beginning in FY28 
• San Tan Valley incorporation
• Monitoring State Legislation

Total General Fund Revenue
30
 -
 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
FY2020
FY2021
FY2022
FY2023
FY2024
FY2025
FY2026
FY2027
FY2028
FY2029
FY2030
FY2031
ACTUALS
FORECAST

General Fund Expenditure Assumptions
31
• Operating Expenses
– 5% average increase for FY27 – FY31
– Estimated Personnel Increase of $7.2M in FY27
• Increases to Public Safety per Memorandums of 
Understanding
• Replacement of Fire Apparatus
• Replacement of Police Radios
• Maintaining City Facilities
• Park Maintenance and Recreation Programming

General Fund Expenditure Assumptions
32
• Certificates of Participation (PSPRS Pension Obligations)
– PSPRS contribution rates 
– $21.5M average debt service payment for FY27–FY31
– Pension reserve fund – $20M funded in FY27
• Vehicle Replacement Fund – 8% annual increase 
• General Fund Contingency $5M in FY26
– Contingency amount can be evaluated annually
– Use of contingency requires Council approval

General Fund Forecast
33

Special Revenue Funds
34
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)
35

Transportation Sales Tax
36

Public Safety Sales Tax – Police
37

Public Safety Sales Tax – Fire
38

Special Revenue Fund Summary
39
• Watch revenues/economy closely
• Manage Capital Outlay to stay within fund 
balance policies

Enterprise Funds
40
• Water, Solid Waste, and Landfill
• 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
41

Landfill
42

Water & Sewer
43

Enterprise Fund Summary
44
• 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

CIP Binder Review
45
• Summary by Project Type
• Summary by Fund
• Individual Project Type Tabs
– FY2027 Change Document
– Summary by Fund
– Summary by Project
– Project Detail
• CIP Workshop March 3, 2026

46
Questions?

Budget Calendar
47
Item
Date
Workshop #1 – Budget Overview / Revenues / Five-Year Financial Forecasts 
January 27, 2026
Workshop #2 – FY27-36 Capital Improvement Plan
March 3, 2026
Workshop #3 – (All Day) FY27 Operating Budget Department Presentations
March 30, 2026
Workshop #4 – FY27 Total Tentative Budget (Operating, CIP, Debt, Contingency)
April 14, 2026
Voting Meeting – Tentative Budget Adoption
May 12, 2026
Voting Meeting – Final Budget Adoption / Property Tax Levy
June 9, 2026
Voting Meeting – Property Tax Adoption
June 23, 2026