Presentation

TOWN OF WICKENBURG
BUDGET WORK SESSION
April 7, 2025

INTRODUCTION & 
OVERVIEW

• Workshop I
o Budget Creation
o Financial Policy
o Overview Revenue, Expenditures
o Property Tax Philosophy
o General Updates
o Recycling 
o Nonprofit Funding Overview
o Coconino Parking Lot
o Community Center
o Fee Schedule Discussion
Town Council 
Budget Workshop
Agenda

• Workshop II
o Capital Improvement Projects
o Property Tax Rate
o Departmental Budgets
o Personnel Expenses
o The Tentative Budget Presentation will 
put all the numbers 
together, complete Auditor General 
Schedules
Town Council 
Budget Workshop
Agenda

5
Budget Direction Provided by Management
No Increases To Departmental Baseline Operating Budgets For The Fiscal Year
•Focus on maintaining core service levels 
•Increased costs due to inflation, policy changes, utilities
•Departments encouraged to find internal efficiencies where possible
No New Personnel Requests
Create a 5-year CIP Plan
Reduce Reliance On One-time Revenues
•
Construction activity is slowing
•
Wickenburg Ranch has about 125 vacant lots left in phase I
•
Global & National Economy unstable and we appear to be entering a period of economic 
retraction

6
Budget Creation
Emphasis On Strategic Resource Allocation
• Aligning funding with Council priorities and adopted plans
• Preserving financial resilience while supporting key initiatives
• Limit operational spending within anticipated revenue projections
• Department budget numbers presented today do not include personnel increases
• Use of fund balance limited to capital improvement projects
Recommend Creation of an Operating Contingency Line Item
•
Designed to address unforeseen needs or emerging priorities
•
Requests for expenditures require Town Manager approval
•
Provides flexibility and increases accountability 
•
Funded by reducing General Fund departmental baseline budgets (what-if)

7
Budget Creation
The Annual Budget Is A Fundamental Policy Document of The Town
• It is a financial plan
• Establishes the Expenditure Limitation
• Establishes the tax rate for property taxes
• It is the provision of the Town's financial resources to provide the community programs, 
services, and projects
The Numbers Will Change As We Progress Through The Development of 
The Annual Budget – To Be Expected
•
Numbers in the budget are based on many projections
•
Expenditures
•
Revenue
•
Operations – unknown conditions like the recent swimming pool breakage

• General Fund Revenues
• State Shared Revenue and 
Local Tax
• Property Tax
• General Fund Expenditure 
Overview
• General Fund Budget Overview
Financial Overview

FY26 Projected General Fund Revenues

State Shared Revenue and Local Tax
2020-21
Actual
2021-22
Actual
2022-23
Actual
2023-24
Actual
2024-25
Budgeted
2025-26
Proposed
LOCAL SALES TAX
$6,530,424
$7,805,553
$9,745,888
$9,885,884
$9,500,000
$8,500,000
STATE SALES TAX/TPT
$959,977
$1,063,731
$1,137,480
$1,162,086
$1,208,395
$1,252,119
STATE INCOME TAX/URS
$1,156,464
$997,378
$1,459,752
$2,098,728
$1,700,982
$1,616,322
TOTALS
$8,646,865
$9,866,662
$12,343,120
$13,146,698
$12,409,377
$11,368,441

Year to Date State Shared and Local Sales Tax Collections
2020-21
July-February
2021-22
July-February
2022-23
July-February
2023-24
July-February
2024-25
July-February
LOCAL SALES TAX
$4,349,854
$5,011,213
$5,333,787
$7,179,859
$5,684,552
STATE SALES TAX/TPT
$609,668
$685,811
$742,492
$797,635
$762,939
STATE INCOME TAX/URS
$770,976
$668,814
$973,168
$1,399,152
$1,151,992
TOTALS
$5,730,498
$6,365,838
$7,049,447
$9,376,646
$7,599,483
2020-21
March-June
2021-22
March-June
2022-23
March-June
2023-24
March-June
LOCAL SALES TAX
$2,180,570
$2,794,340
$4,412,101
$2,706,025
STATE SALES TAX/TPT
$350,309
$377,920
$394,988
$364,451
STATE INCOME TAX/URS
$385,488
$328,564
$486,584
$699,576
TOTALS
$2,916,367
$3,500,824
$5,293,673
$3,770,052

• Town Current RATE is .4132 LEVY is $600,000
• Council Policy Direction
• Does the Council wish to not increase collections beyond the allowable 
rate and avoid a truth in taxation hearing?
• If yes, the net effect will be lowering the current tax rate 
Property Tax

General Fund Actual Expenditure Overview
2022-23
Actual
2023-24
Actual
2024-25
Projected
FINANCE
697,199
767,087
759,888
GENERAL SERVICES
557,823
751,138
691,186
TOWN MANAGER
549,674
658,450
366,414
HUMAN RESOURCES
0
0
365,927
TOWN CLERK
196,401
177,467
242,303
TOWN COURT
292,673
357,762
563,957
TOWN ATTORNEY
230,155
269,549
301,320
RECREATION
458,208
575,618
586,369
ECON DEV & PUBLIC OUTREACH
233,276
228,315
459,047
INFORMATION TECHNOLOGY
0
0
581,821
LIBRARY
229,985
263,155
269,422
PARKS & FACILITY MAINTENANCE
1,107,027
1,369,010
1,863,140
COMMUNITY DEVELOPMENT
523,945
665,084
671,437
PUBLIC SERVICES ADMIN
372,966
424,184
488,807
POLICE
3,508,758
4,934,169
5,397,237
FIRE
2,146,555
3,749,693
4,573,105
TOTALS
11,104,645
15,190,681
18,181,380

General Fund Budgeted Expenditure Overview
2023-24
Budgeted
2024-25
Budgeted
2025-26
Requested
FINANCE
848,539
747,164
819,674
GENERAL SERVICES
693,857
696,016
555,697
TOWN MANAGER
701,972
366,414
542,398
HUMAN RESOURCES
0
365,927
370,225
TOWN CLERK
195,101
242,303
211,355
TOWN COURT
388,545
563,957
472,343
TOWN ATTORNEY
301,320
301,320
285,000
RECREATION
627,228
572,369
590,266
ECON DEV & PUBLIC OUTREACH
233,016
456,047
395,632
INFORMATION TECHNOLOGY
0
581,821
564,773
LIBRARY
268,108
269,422
313,070
PARKS & FACILITY MAINTENANCE
1,474,782
1,863,140
1,749,263
COMMUNITY DEVELOPMENT
704,080
671,437
689,267
PUBLIC SERVICES ADMIN
414,733
488,807
457,818
POLICE
5,023,649
6,397,237
6,317,815
FIRE
3,828,099
4,573,105
4,500,997
TOTALS
15,703,029
19,156,486
18,835,593

15
General Updates
• Transportation plan
• Restrooms Town Hall & Downtown
• Wellik Grant for Rodeo Ground Improvements
• Property Abatement Program - $50,000
• Water Wastewater Project Update
• Employee Compensation
• Insurance Renewals

16
Personnel: Compensation Philosophy & Personnel Rules

• Compa-Ratio 
o Formula: (Employee 
Salary ÷ Market 
Midpoint) × 100.
o A 100% Compa-
ratio means an 
employee is exactly 
at market rate.
• Market Index 
Alignment
o Our goal is to stay 
at market (100%) to 
remain competitive 
and fair.
17
Understanding Compensation: Compa-Ratio & 
Market Alignment

•
Example:
o Market midpoint = $60,000 
▪EE earns $57,000, their Compa-ratio is 95%.
 EE Earns $63,000, their Compa-ratio is 105%.
•
Being above or below 100% doesn’t mean someone is overpaid 
or underpaid
•
It reflects experience, skills, or tenure—not a problem
•
“Misaligned” just means outside the 10% market range—not 
wrong, just a signal
•
Why Some Positions Are Hired Below 100% (misaligned)? We 
may hire below the full range for new or less experienced 
employees to stay budget-conscious and allow room for 
growth. Pay is based on qualifications—not a reflection of 
value.
18
Compa-Ratio & Market Alignment Overview
Interpretation:
• 100% means the employee is paid 
exactly at the market midpoint.
• Below 100%: employee is paid 
less than midpoint.
• Above 100%: employee is paid 
more than midpoint.

19
Compa-Ratio Distribution Bar Chart
106
25
Below 100%
At or Above 100%
• Example:
• 11-Year Employee: 94.82% Compa-Ratio
• New Hire: 99.9% Compa-Ratio
• Retention Risk Statistic:
• “Studies show that compression increases 
turnover. Towns that don’t address it see 
*20-30% higher exit rates in key positions.”

•
Market-based pay was a strategic decision
o Council recognized that aligning pay with market rates could lead to some compression (smaller gaps 
between newer and tenured employees).
o This approach ensures Wickenburg remains competitive for recruiting and retaining employees.
•
What is Compression?
o Happens when pay gaps between new and experienced employees narrow due to market 
adjustments.
o This was anticipated and planned for when adopting the current pay structure.
o Adjustments are necessary to ensure fairness and long-term retention.
•
How Are We Addressing It?
o Base salary increase helps keep pace with the market and cost of living.
o Compression adjustments ensure that experienced employees aren’t left behind.
o Everything is done within budget constraints while supporting our long-term workforce strategy.
20
Addressing Compression

21
Addressing Compression – TM's Proposed Budget
• Helps keep pace with market trends and cost of living.
• Benefits all employees while maintaining fiscal 
responsibility.
4% Base Salary 
Increase
• Employees with MORE than 5 years of service and below 
the market midpoint will be brought to midpoint (100% 
Compa-ratio).
• This prevents new hires from leapfrogging more 
experienced employees.
Employees Below 
Midpoint (100%) 
Move to 
• Employees below 86% Compa-ratio will be moved up to at 
least 86%.
• Ensures the most misaligned salaries are addressed first.
• Allows new employees to reach midpoint in about 5-years
Employees Below 
86% Move to 86% 
Compa-Ratio
Step 1
Step 2
Step 3

22
Employee Benefits
• Arizona Metropolitan Trust 
(AzMT)
• Medical
• Dental
• Vision
• Life and AD&D
• Wellness
• Perk Benefits
• 3-Year Agreement, Effective July 2023
• FY25-26 = overall 4.5% increase
o This increase is included in budget data 
presented today
• Council Eligibility
• Voluntary Benefits (no cost to Town)
• Change in HSA Vendor

23
Risk Management
Arizona Municipal Risk Retention Pool (AMRRP) AMRRP is a Municipally-Governed 
Risk Pool Dedicated Solely to Coverage and Risk Management Solutions for Arizona 
Cities and Towns.
• Coverage: Auto, Cyber, Property & Causality, Liability, Workers Comp
• Member Benefits
• Renewal effective July 1
• Property Analysis for FY24-25 changed to HR (temporary)

24
Risk Management
o Town Requested an Audit through AMRRP
▪$42 million additional property
▪Over 70 new locations
o $76,000 annual increase for new property 
▪Over 5 years at appx $15,500 per year
– Ability to work with AMRRP due to self-insured and working relationship 
▪Change Property Deductible from $5k to $10k = Savings above current of 
$19,227
o 4 Claims since 2017 (2 under deductible, 2 at around $20k)

25
• Current Financial Structure – Town 
Code
• Reserve and Contingencies
• Develop a Centralized and 
Comprehensive – Council Adopted 
Financial Policy Manual
Financial Policies

26
PROCUREMENT THRESHOLDS
o $0 - $4,999.99: No quotations or bids required
o $5,000 - $24,999.99: 3 written quotes approved by Department Director
o $25,000 - $49,999.99: 3 written quotes approved by Town Manager
o $50,000 and Above: Sealed bids, competitively procured contract, or 
cooperative purchase approved by Town Council
BUDGET TRANSFERS
o A transfer from a capital line item (9#### account) requires Town Council 
approval prior to incurring the expense
o A transfer between funds requires Town Council approval prior to incurring 
the expense
o A transfer within the same department requires approval of the Department 
Director prior to incurring the expense
Town Code Procurement and Budget Transfers

27
Reserves and Contingencies
• Should be appropriated to provide for emergencies, mid-year requests, and 
unanticipated expenditures
• General Fund Reserve will be maintained in an amount not less than 15% of 
new General Fund revenues for the budgeted fiscal year
• Contingency will be established for all other applicable funds of at least 10%, 
and the equity of all funds will be maintained to meet the objectives of the 
fund
• $100,000 will be budgeted under General Services each year to indemnify the 
Town of unanticipated insurance claims
• Expenditures may be made from contingencies only upon approval by the 
Town Council

28
Fee Schedule
During the Town Council Meeting when the proposed fees were posted to the 
public, Council indicated they wanted to have a discussion during the Budget 
Workshop.

29
Projects and 
Programs

• Regulation: Maricopa County Environmental Health Code (MCEHC), P-14, Section 5, 
Regulation 4: Frequency of Collection requires two (2) pickups per week (Maricopa County 
Environmental Health Code (MCEHC) (PDF)_202503121620530812.pdf)
• Council’s Previous Direction: Limited recycling losses to $25,000/year (previous losses 
were $66,000/year)
• Resident Survey (2019): Indicated support for a $1.50 increase to offset losses – this was 
included in the recent rate increase
• Current Recycling Limitation:
o Current budget funding does not guarantee the ability to recycle all year long 
o Contract service provider has both equipment and personnel reliability issues
o This has led to resident concerns about whether the Town actually recycles, impacting program 
credibility and contamination rate increases
Recycling Program
30

• Additional Challenges: CR&R’s ability to haul recycling for the Town.
• Potential Options:
1. Maintain the $25K cap
2. Increase the cap to $66K
3. Eliminate the program entirely – no recycling
4. Seek outside contracts for recycling
Recycling Program
31

Coconino Parking Lot
32

44
• Next Budget Work Session scheduled 
for April 21
Recap and Close of Work 
Session