Presentation

TOWN OF WICKENBURG
BUDGET WORK SESSION #3
April 20, 2026

• Session 3
o Council Liaisons
o PHI Air Medical Membership Proposal
o Non-Profit Funding
o Capital Improvement Projects
§ CAP Office Overview
§ Community Center Update
§ Sunset Park Pickleball Restroom Update
§ Smoke Eaters
§ Training Center
o Bed Tax Funding Agreements
o General Fund Revenues
o Department Budgets
o Contingencies and Reserves
o Other Major Funds
o Expenditure Limitation
Town Council 
Budget Study Session

3
Council Liaison Assignments

4
PHI Air Medical Membership Proposal

Council direction for potential inclusion in FY
2026–2027 Budget.
•
Presented to Council – December 20, 2021→
Agreement not approved
•
Presented during Budget Discussion – June 19,
2023→ Not included in FY 2022–23 Budget
•
PHI has returned with:
•
Updated household counts
•
Clarified coverage area
•
Separate employee option
PHI Air Medical (PHI Cares) Membership Proposal
5
This Photo by Unknown Author is licensed under CC BY-SA

Option 1: Incorporated Resident Membership (MSP)
6
• What It Covers
o Incorporated Town
households only
o PHI air transports from
Maricopa & Yavapai Counties
o Covers uninsured/out-of-
pocket balance
o Does not cover ground
ambulance
o Membership is not insurance
o AHCCCS/Medicaid
households excluded
o Membership is not national
coverage
• Cost
o $7 per household annually
o Approx. 3,470–3,874
households
o Estimated annual cost
range:→ $24,290 –
$27,118
§ Household count varies
between proposal versions
o Ongoing annual General
Fund expenditure
• Administrative
Requirements
o Annual resident roster
o PHI provides
membership cards to
Town
o Membership card
distribution by Town

Option 2: Town Employee Membership
7
•
Structure Options
o Business Benefit Plan (Quote)
§ 123 full-time employees
§ $60 per employee annually
–
Total Cost: $7,380
§ 100% participation required
§ Town owns memberships
§ Monthly roster updates required
o Business Gift Plan
§ Town purchases for select
employees
§ Membership remains with
employee
§ No late additions permitted
§ Cost dependent on number
selected
• Coverage Includes
o Employee (primary
member)
o Spouse/significant other
o All dependents living in
the home
o Up to 3 non-dependents
in household
o National coverage where
PHI operates
• Considerations
o Several employees reside
within incorporated limits→
Would already be covered
under resident MSP if
adopted
o Employees currently may
purchase memberships
individually
§ 1 year
– $95 standard, $75 senior,
§  3-year
– $235 standard, $193 senior
o This would be a new
employer-paid benefit
o Ongoing commitment

• Is this a core municipal service?
• Appropriate use of General Fund resources?
• Should this be a Town-funded benefit enhancement for employees?
• Equity considerations (incorporated vs. unincorporated residents)?
• Ongoing annual funding commitment?
Policy Considerations & Council Direction
8

•
Option A
o Include Resident MSP in Proposed Budget
o Estimated Annual Cost: $24,290 – $27,118
•
Option B
o Include Employee Plan in Proposed Budget
o Estimated Annual Cost: $7,380
•
Option C
o Include Both
o Combined Estimated Annual Range: $31,670 –
$34,498
•
Option D
o No Further Action
Requested Direction (based on quote):
9
*Costs reflect current PHI proposal pricing and are subject
to final agreement execution.

10
Non-Profit Grant Funding

Town Sponsored Grants
11
Community Support Grant
Commercial Façade
Grant
Tourism Marketing Grant
Budget
Amount
$50,000
$25,000
$10,000
Funding
Source
General Service
Community Contribution
General Fund
Bed Tax
Eligibility
501(c)(3) or 501(c)(6)
Inclusion of non-profits
exempt from sales tax
501(c)(3) or 501(c)(6)
Cycle
Once Per Year
Once Per Year
Once Per Year

12
5 Year Capital Improvement Projects

13

14

15

16

17
CAP Office Overview

• 255 N. Washington St.
• Made up of 3 parcels
o 505-48-047
o 505-48-046A
o 505-48-044
• Total approx. 1/3 of an acre
• Building approx. 7,600 sqft
• Built in 1979
18
CAP Office Background

19
Recent Exterior Photos

20
Recent Interior Photos

• Overall score 30 out of
100.
• < 35 = Urgent: Stabilize or
replace. Immediate
planning and capitol
action required.
21
3rd Party Asset Assessment

• Remove building and replace with a parking lot.
• A parking lot will increase the value and utility of the Town’s
neighboring asset previously used as our temporary fire station.
• Demolition cost is estimated to be $150,000 – $200,000.
• 10,000 sqft parking lot estimated cost is $225,000 - $275,000.
22
Recommendation

23
Community Center Update

• The Community Center was built in 1970 (56 years old)
• 10,000 usable sqft and situated on 4 acres
• The building is in need of significant repairs
o Equipment upgrades, HVAC, electrical and plumbing
o Kimly-Horn identified structural deficiencies with trusses and roof structure
o Renovations are needed to meet modern ADA and safety building codes
§ ADA access
§ ADA Restrooms
§ Fire sprinkler system and addressable fire alarm
Community Center Overview
24

• Options for the Community Center have been explored for 10+ years.
o Building a new Community Center was estimated at $15 to $20 million in 2023 by
Ballard*King.
o The average cost to design and fully renovate the Community Center ranged from
$6.5 - $7 million was estimated by Caliente construction and Willmeng
construction in 2024.
o Correcting structural deficiencies and replacing aging equipment were prioritized
in early 2025 and $1.8 million was budgeted in FY26 for design and start of
construction. A placeholder of $3.5 million was budgeted for the remaining
construction in FY27.
o During the Fall of 2025 Council reviewed and approved designing a more
extensive renovation. Projected cost $5 - $7 million.
Community Center - History
25

• Correct all structural deficiencies
o Roofing and trusses
• Replace all aging equipment
o HVAC, electrical, plumbing systems and kitchen appliances
• Bring the Community Center up to current building and safety codes
o ADA-compliant access and restrooms
o New fire alarm and fire sprinkler system
• Maximize usable spaces – commercial kitchen, remove stage, enclose patio
and lobbies
• Exterior cosmetic repairs
26
Community Center – Extensive Remodel

27
Community Center - Expanded Floor Plan

28
Maximize Usable Spaces
STAGE AREA CONVERTED TO A BANQUET ROOM

29
Maximize Usable Spaces
ENCLOSED PATIO & ENLARGED KITCHEN
WEST & SOUTH LOBBIES

• Banquet Room 1 = 1,000 sqft
• Two New Lobbies = 576 sqft
• Kitchen Expansion = 70 sqft
• Enclosed Patio = 2,160 sqft
• Total New Usable Space = 3,806 sqft
30
Usable Space Added to Community Center

31
Design Concepts

32
Concept: Great Hall – Banquet Room Divider Open

33
Community Center - Preliminary Estimate

• 4/26
Construction Documents (100%)
• 5/26
T.O.W. Plan Review, Permitting and Estimating
• 6/26  
Prepare and Approve Construction Contract (GMP)
• 7/26
Caliente Construction Mobilizes and Begins Demolition
• 4/27
Construction Complete
• 5/27
T.O.W. Prepare Community Center For Rental
34
Projected Timeline

35
Sunset Park Pickleball Restroom Update

36
Restroom Floorplan
• ~140 sq ft
• Unisex restroom
• Utility room

37
Restroom Location

38
Restroom Features
• Block structure
• Metal roof
• Hi/Lo drinking
fountain with
bottle filler

39
Project Status
• $250,000 budgeted in FY26
• Plans complete and estimates received
• Ready to finalize the contract
• Anticipate completing project under budget by
August 2026

40
Smoke Eaters Facility Overview

41
Smoke Eaters

• Original constructed in 1906 and modified in 1926 as the
Town’s first City Hall and jail.
• Listed on the National Register of Historic Places.
• Deeded to the Town in 1984 by the Wickenburg Volunteer Fire
Department, LTD.
o “Subject to following restrictions: That the property conveyed herein
shall be used for a youth center…”
• Currently being used by PD for virtual training
• Interior and exterior are in poor condition.
42
Smoke Eaters Background

• Renovate historic exterior.
• Create public ADA restrooms
in rear of building.
• Create meeting space for
youth or public safety in front
of building.
• Cost to renovate is
anticipated to be $450,000.
43
Smoke Eaters - Remodel

44
Training Facility Facility Overview

• Constructed in 2004 and
known as R&R Respite Care
Center.
• Remodeled in 2024 for
Temporary Fire Station.
• Potential Meeting/Training
center as well as Emergency
Operations Center (EOC).
45
Temporary Fire Station (TFS)

46
TFS – Current Floor Plan

47
TFS – Proposed Floor Plan

• Needed renovations:
o Remove existing walls and install posts and a beam to open up interior
space.
o Repair drywall, install flooring, add lighting, upgrade restrooms and
paint interior.
o Install sound and AV equipment as well.
o Install security cameras and card readers.
o Anticipated cost to renovate is $500,000.
48
Wickenburg Meeting & Training Center

49
Bed Tax Funding Agreements

•
Expire on July 1, 2027 (1 Year Term)
•
Contractors
o
The Round Up Club, Wickenburg Chamber of Commerce
o
Del E. Webb Center for the Performing Arts
o
Desert Caballeros Western Museum
•
Funding
o
Actual Bed Tax revenues collected from the previous fiscal year
o
Subtract operating expenses and planned expenditures designated by Town Council
o
Set aside 15% for contingency
o
Divide remainder into three equal parts, and 33.3% will be paid to the Contractor
50
Bed Tax Funding Agreements

o FY25 Revenue - $260,803
o Operating Expenses - $130,500
§ Other Contract Services - $90,000
– Chamber of Commerce Sponsorship Agreement $60,000
– Wasatch Mountain Media $30,000
§ Marketing II - $10,000
§ Matching Improvements - $25,000
§ Devore Statues - $5,500
o 15% Contingency - $19,546
o Marketing - $110,757
§ 3 Funding Agreements
o Each receive $36,919
51
 FY27 Bed Tax Funding Summary

52
General Fund Revenues

State Shared Revenue and Local Tax
 2021-22 Actual
2022-23 Actual
2023-24 Actual
2024-25 Actual
2025-26 Budgeted
2026-2027 Proposed
LOCAL SALES TAX
$7,803,609
$8,794,849
$10,859,726
$9,163,921
$8,500,000
$8,000,000
STATE SALES TAX/TPT
$1,070,876
$1,140,038
$1,206,805
$1,217,260
$1,253,365
$1,247,827
STATE INCOME TAX/URS
$997,383
$1,459,753
$2,098,733
$1,727,989
$1,618,005
$1,747,160
AUTO LIEU TAX
$412,703
$413,590
$435,077
$420,644
$440,469
$448,472
TOTALS
$10,284,571
$11,808,230
$14,600,341
$12,529,814
$11,811,839
$11,443,459
•
Reasons to Decrease Local Sales Tax
•
Downward trend we’ve noticed in this
and last year's revenue
•
State Sales Tax/TPT portion slightly
decreased
•
Addition of San Tan Valley

• Fiscal Year 2026
o Levy - $615,000
o Rate - .3997
• Fiscal Year 2027
o Levy - $628,450
o Rate- .3856
54
Property Tax Rate and Levy

55
General Fund Breakdown
Revenue Source
FY24 Actual
FY25 Actual
FY26
Budgeted
FY26
Projected
FY27 Proposed
% Change From
Prior Year
State Grant
$113,340
$276,042
$115,000
$126,395
$115,000
0%
Property Tax
$587,149
$547,825
$645,000
$645,000
$663,450
2.86%
Local Sales Tax
$9,885,881
$8,748,462
$8,500,000
$8,250,000
$8,000,000
6.25%
State Shared Revenues
$3,696,910
$3,361,508
$3,311,839
$3,311,839
$3,443,459
3.97%
IGA’s & Contributions
$1,052,759
$1,106,451
$1,185,000
$1,172,000
$1,122,000
5.32%
Franchises
$319,930
$338,281
$304,970
$304,970
$303,730
.41%
Interfund Service Charge
$1,221,987
$1,361,546
$1,557,454
$1,557,454
$1,651,629
6.05%
Police & Court
$359,876
$227,347
$260,500
219,045
$219,500
18.68%
Parks, Rec & Facilities
$180,991
$160,116
$158,206
$139,907
$140,375
12.70%
Comm Dev Permits & Fees
$481,228
$514,484
$456,850
$405,500
$405,500
12.66%
Other Revenues
$2,081,449
$1,898,642
$2,354,025
$2,136,846
$1,547,200
52.15%
Transfer Out
$1,698,903
$1,398,902
$2,498,902
$2,498,902
$2,898,902
16.00%
Total
$18,282,597
$17,141,802
$16,349,942
$15,770,054
$14,712,941
11.13%

56
 Budget Direction Provided by Management
Increases in Budgets Due To
• 5% Increase to all employees
•$518,646 Base Wage Estimate
• 9.5% Benefits increase
•$216,263
•Hybrid base budget approach
• Departments encouraged to find internal efficiencies & reduce operating expenses
No New Personnel Requests
Continue with 5-year CIP Plan
Reduce Reliance On One-time Revenues
•
Construction activity is slowing
•
Wickenburg Ranch has about 100 vacant lots left in phase I
•
Global & National Economy unstable and consumer confidence is fluctuating

57
Compensation Strategy & Market Position
Compensation Strategy
Market Position
FY 26/27 Proposed
Adjustments

58
Where We Are Today
Compensation
Philosophy Target:
50th percentile
(market median)
Currently
10% below market
(salary)
13% below market
(total compensation)
Not meeting our
compensation
philosophy

59
What the Study Tells Us
Total compensation not keeping pace
Drivers:
Salary ranges below market
Lower employer contributions to family premiums
Wickenburg is below market overall

60
What Other Cities Are Doing
Targeting above median (55th–75th percentile)
Implementing 5%–8% total comp increases
• Market gaps
• Pay compression
Addressing:
Positioning above the market to stay competitive

61
What That Means for Wickenburg
Without action:
Gap continues to widen
Recruitment challenges
increase
Retention risk increases
Competing from behind
Competing against above-market agencies
Below our 50th percentile target

62
Proposed Approach for FY26/27
Total Impact: ~5%–7%
•5% market adjustment to salaries (scale movement)
•2% employer 457(b) match
Supported by Employee Advisory Committee

63
Funding Context
Public Safety Pension Unfunded Liability
reduced due to strong funding and pension
policy discipline
FY26: ~$891K (not paid out)
FY27: ~$700K budgeted
Opportunity to reinvest savings into employee compensation

64
Value of 457(b)
Strengthens total
compensation
Supports long-term
retention
Cost-effective vs. base
salary increases

65
Takeaway
Below our 50th percentile target
Below the current market
Proposal is a measured catch-up strategy
Keeps Wickenburg Competitive – does not move us ahead of the market

• Voluntary retirement savings plan
• Payroll deducted
• Portable
• Employee/Employer breakdown
66
What is a 457(b)

• Market competitiveness
• Retention
• Total compensation approach
• Benefits as a key component
67
Compensation Philosophy Alignment

• TOTAL REWARDS PHILOSOPHY: The
Town of Wickenburg seeks to attract,
retain, and engage committed,
hardworking, and thoughtful
employees who support our shared
goals in the areas of service delivery
and responsible stewardship of public
resources, and who are excited and
energized by the possibilities and
opportunities that emerge as we strive
to build an even better Wickenburg.”
68
Market Comparison
Typical match: 1-5%
Increasing adoption across
public sector
Varying structures by
organization

• Nationwide Plans available (Wickenburg)
• No employer match today
• Active Participation: 44 Employees = est. 36%
Current State (Wickenburg)
69

70
What Happens When You Add
a Match
Participation grows (~50% in 1–2
years)
Encourages savings
Improves financial stability
Industry standard benefit in public
sector

71
Program Design and Approach
Design
• Equal match %
• Eligibility: full-time employee
@ time of hire
• Employer match =
compensable benefit
• Town control's structure
Town Manager’s
Recommendation
• 2% match
• Employee and Employer
match up to a max of 2%
• ASRS & PSPRS Employees
would be eligible

72
Strategic Impact
Supports recruitment
Improves retention
Strengthens total
compensation
Aligns with modern
workforce expectations

73
Cost
Based on participation, scalable
Example:
• Current participation = 36% of employees
• 1% match = $36,000
• 2% match = $72,000
• Nationwide Projected Participation = 50% of employee participation
• 1% match = $50,000
• 2% match = $100,000

74
Recommendation Summary
Implement a Town-funded employee/employer match of up to 2%
Budget at 75% participation at 2% match = $150,000
Effective 1st pay period of FY26/27
Maintain flexibility

Department
FY24 Actual
FY25 Actual
FY26 Budgeted
FY27 Proposed
% Change From Prior year
Finance
$767,086
$709,275
$840,276
$889,144
5.82%
General Services
$603,371
$590,196
$626,016
$753,357
20.34%
Town Manager
$658,434
$135,879
$554,639
$533,605
-3.94%
Human Resources
$1,003
$331,994
$402,960
$463,545
15.03%
Town Clerk
$177,482
$202,594
$243,197
$268,837
10.54%
Town Court
$356,011
$462,635
$483,684
$479,111
-1.00%
Town Attorney
$269,552
$288,541
$285,000
$304,000
6.66%
Recreation
$575,600
$452,340
$613,140
$608,210
-.8%
Economic Development
$228,307
$389,597
$406,936
$448,641
10.25%
Information Technology *
$415
$512,584
$580,167
$830,306
43.11%
Library
$496,468
$343,045
$341,150
$345,283
1.21%
Parks & Facilities *
$1,562,785
$2,105,369
$5,055,727
$8,023,532
58.70%
Community Development
$665,089
$765,617
$717,969
$764,727
6.51%
Public Services *
$424,218
$446,465
$469,322
$413,829
-13.41%
Police *
$4,657,972
$5,000,730
$6,397,048
$6,227,172
-2.73%
Fire *
$4,006,920
$5,373,539
$6,237,956
$6,451,724
3.43%
Total
$15,450,713
$18,110,400
$24,255,187
$27,805,023
14.64%
75
Department Budgets

76
Contingency and Reserves

• 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
77
Policy

• Restricted Projected End of Year Fund Balance – $21,778,705
o Contingency $1,201,535 at 10%
o Capital Reserve $1,000,000
o Reserve $5,283,553 at 30%
• Unrestricted Fund Balance - $14,293,617
78
Start With the End in Mind

79
Other Major Funds

Fund Name / No.
2023-2024 Actual
2024-2025 Actual
2025-2026 Budgeted
2026-2027 Proposed
% Change From Prior Year
Streets / 300 *
$2,993,744
$1,297,721
$3,959,247
$4,070,875
2.82%
Bed Tax / 320
$282,581
$221,711
$461,742
$241,257
-91.40%
Water 1 / 500 *
$1,315,977
$1,473,262
$4,114,437
$7,230,872
75.74%
Water 2 / 501
$1,024,144
$1,170,011
$1,022,824
$942,684
-8.50%
Electric / 510 *
$2,406,517
$3,001,800
$4,546,924
$4,108,291
-10.68%
Sanitation / 520
$1,337,652
$1,020,204
$1,794,076
$1,834,726
2.27%
Wastewater 1 / 530 *
$1,522,942
$1,490,481
$7,672,971
$6,931,675
-10.69%
Wastewater 2 / 531 *
$1,766,560
$1,682,247
$1,390,746
$1,347,492
-3.21%
Airport / 580 *
$1,119,533
$2,146,401
$1,765,293
$1,232,179
-43.27%
Maintenance Shop / 600 *
$207,318
$209,163
$299,245
$307,386
2.72%
Capital Improvement / 700 *
$338,406
$902,767
$345,988
$414,004
19.66%
Total
$14,315,374
$14,615,768
$27,373,493
$28,661,441
4.71%
80
Enterprise Fund Budget

Fund Name / No.
Contingency
Capital Reserve
Streets / 300
$4,117
$184,200
Bed Tax / 320
$226,413
$0
Water 1 / 500
$679,372
$312,000
Water 2 / 501
$0
$733,545
Electric / 510
$3,758,402
$1,020,000
Sanitation / 520
$2,459,209
$0
Wastewater 1 / 530
$2,802,319
$325,000
Wastewater 2 / 531
$1,257,500
$1,635,050
Airport / 580
$756,585
$0
Maintenance Shop / 600
$0
$0
Capital Improvement / 700
$1,104,776
$0
Total
$13,048,693
$4,209,795
81
Enterprise Fund Contingency and Reserves

82
Expenditure Limitation

• 2026 Limitation $63,473,203
• 2027 Final Limitation $66,901,115
• Increase of $3,427,912
83
 Expenditure Limitation Recap
2024
Limitation
$57,141,895
Amount
Under 2024
Limitation
$32,892,570
2025
Limitation
$60,940,309
Amount
Under 2025
Limitation
$31,451,563
•
Exclusions from calculating the expenditure limitation:
•
Debt Service
•
Dividends, interest, or gains
•
Grants, aid, or contributions
•
Funds received from State of Arizona
•
Contracts with other political subdivisions
•
Refunds, reimbursements, and other recoveries

84
• Tentative Budget Resolution and
Adoption – May 4
• Policy Review – May 18
• Final Budget and Tax Levy – June 1
• Final Budget Adoption (Special
Meeting) – June 1
• Property Tax Rate Adoption – July 6
Recap and Close of Work
Session