City Council Formal Meeting - Regular Meeting

I should be working. What's going on? Good evening. Welcome to our budget hearing for the proposed 202627 city trial budget at Paradise Valley Community Center. Before we begin, I'd like to introduce our interpreter, Elsie Dwarte, for today's hearing.

Thank you. Good afternoon. My name is Elsie Darte and along with Oscar Monroy, we will be providing interpretation for during today's budget hearing. I will now take a moment to introduce ourselves to our Spanish speaking audience. Thank you. Thank you, Elsie. We're pleased to be here in District 2 as a budget hearing hosted co-hosted by District 2 Councilman Jim Wearing and District 3 Councilwoman Deborah Stark. Since District 3 is close by, I'll ask each of them to say something and we'll start with Councilwoman Deborah Stark.

Thank you. Whoa. Thank you. Um, it looks like we have more staff here than uh constituents, but of course we want to hear from our constituents. The budget process is very important to us. We value everyone's comments. We've had some very, very good discussion this budget cycle. Um, and I'm anxious to hear what people have to say. So, thank you. So, thanks everybody for coming out. We really appreciate it. Uh, and maybe you staffers can learn something as well. So, this is a great opportunity, Ed, for a teachable moment.

Thank you, Councilman Wearing and Councilwoman Stark. Uh, as mentioned, we are here to receive feedback throughout the entire community. We have 12 budget hearings uh throughout the entire city of Phoenix and so we have gathered input from throughout the city. Uh we uh the proposed budget will be presented to the city council uh be on May the 5th and voted on May the 19th. And information on the proposed budget is available in a tabloid that's in the at the back or available online and isn't available in English and Spanish. And it's also even more information is available on our website of phoenix.gov. If you wish to speak at today's hearing, please fill out a comment card uh if you would. And if you just wish to leave a comment but not speak, you can do that as well. Just select not will not not to speak. With that, we will have a short video about the trial budget and then immediately following we'll move to speaker comments. Every day in Phoenix, city employees work behind the scenes to keep our community safe, connected, and thriving. The services they deliver, public safety, clean water, libraries, parks, streets, and more, depend on thoughtful year-round planning. That planning begins with the city's annual trial budget. To create the trial budget, the city works year round toward a simple but essential goal. how to best maintain the services residents rely on every day. After determining these costs, any surplus can be used on new programs and services, employee compensation increases, or other council and community priorities. This year, the proposed 2026 27 city manager trial budget shows a projected general fund surplus of 163 million,

including 61 million in ongoing revenue and 102 million in one-time resources. After setting aside funds to keep the budget balanced into the future and accounting for needed operational costs, a $70 million surplus remains. This strong financial position allows the city to maintain and enhance essential services while planning responsibly for future needs. A key part of this year's trial budget is setting aside 75 million dedicated to helping balance the 202728 fiscal year, reinforcing Phoenix's commitment to long-term financial stability. By planning ahead, Phoenix continues its long-standing practice of structural budget balance, ensuring public safety, parks, libraries, and community programs remain stable and reliable for residents. This long-term planning also helps Phoenix State resilient in the face of challenges such as the recent incorporation of Santan Valley, which will reduce Phoenix's share of state shared revenue by more than $10 million next year. However, with our strong surplus and forward-looking planning in place, the 202627 trial budget suggests strategic investments that support health, safety, quality of life, and critical services for Phoenix. Throughout the year, departments review what it takes to maintain the programs residents rely on. Each March, the city manager releases a trial budget, a draft that aligns projected resources with anticipated expenses for the coming fiscal year. This year's draft is now available for public review from March 30th through April 16th. Residents are encouraged to share feedback through community budget hearings, online comments, phone calls, and social media. This input is important to the city council, and they want to hear from you. After reviewing community feedback, the city council

votes on the budget in May. Final adoption occurs in June, followed by the annual property tax levy ordinance in early July. Now, let's talk about what funds the annual budget. The general fund supports many of the services residents use every day, including parks, libraries, police, fire, youth, and senior programs. It is primarily funded through local sales taxes, state shared revenues, primary property tax, and user fees, and other revenues. Enterprise funds operate like standalone service providers. water services, Phoenix Sky Harbor International Airport, and solid waste are funded by customers who directly use these services. Special revenue funds are dedicated to specific purposes, often supported by grants or voter approved sale taxes, help enhance parks, transportation, and public safety. The city budget has several priorities, including balancing the budget, which is required by state law and city charter, continuing to provide the programs and services residents rely on, and recommending how to use any potential surplus to benefit the community. Now, to the 2026 27 trial budget, which continues Phoenix's work to enhance community safety. This includes lighting improvements in city parks to increase visibility and discourage crime and 17 new street lights and 24 upgrades along the 27th Avenue corridor supporting the community plans for safer streets and neighborhood revitalization. Meanwhile, staffing and maintenance funding will support new facilities such as the planned Lone Mountain Park and the 2023 GOB bond funded Estabbon Park Recreation Center. To support Phoenix families, the budget includes a $5 million set aside to help address child care affordability for Phoenix families. Teen programming will expand across multiple community

centers. Additional assistance at family service centers will support Phoenix residents experiencing financial challenges and a dedicated parking lease at Choya Library will maintain access during nearby redevelopment. Housing stability remains a major focus. Key investments will help replace expiring COVID era federal funding to continue vital services, including $ 122.9 million for emergency shelters servicing residents citywide. 1.5 million for the city's 247 heat relief site and extended hour schooling centers. 1.5 million for the Keys to Change shelter facility. $2.5 million to create a master lease program with more than 50 housing units for individuals exiting homelessness and 6.6 million for the housing trust fund supporting fee waivers, pre-approved housing plans, and other affordable housing efforts. These investments provide both immediate support and long-term housing solutions. To enhance in-person service at city hall, the budget funds improvements to the planning and development customer services area, including streamlined check-in, clearer signage, improved visitor flow and technology upgrades to strengthen system reliability and reduce long-term contracting costs. The budget converts key temporary IT and engineering positions into ongoing roles, including cyber security specialists and network technicians. Aviation upgrades include new technology enhancements, water quality and safety staffing, and expanded support for international travel operations at Phoenix Sky Harbor International Airport. The budget uses existing resources to convert a number of critical temporary positions to ongoing roles, strengthening internal capacity across departments. And a $53 million

employee compensation set aside helps Phoenix remain competitive in hiring and retaining skilled staff who deliver essential public services. With careful planning, responsible budgeting, and strong community involvement, Phoenix continues to deliver highquality services while preparing for the future. Your participation helps shape the path forward. Together, we're building a more sustainable, resilient, and welcoming Phoenix for the years ahead.

All right, we will now move to speakers. We currently have two cards. If there's anyone who would like to speak but hasn't filled out a card, please do so as we do this. And Councilwoman Stark is going to call our speakers forward.

So the first speaker is Teresa Hill. Welcome Teresa. Thank you. Um, first of all, thank you for having these meetings. I've seen you've had many. I watch you online and um, quite honestly, I wish there were more people here because there's a lot to say. Um, so, thank you. Thank you to the budget group. You've done a great job on this year's budget. In the past, I'm here fighting for everything, it seems like. So this year, uh, let me tell you a few things that are on my mind. Um, I would like the budget department to add to the Phoenix Fire Department out at Phoenix Sky Harbor. um all the vehicles that are on the tarmac as we've saw in the recent tragedy that I think that all of our emergency vehicles that are on the tarmac at Sky Harbor should have the transponders so that they know where they're going and I understand from the news and everything ours do not. So I'd like to ask for that. And then the solid waste is proposing a 16% increase this year, 14% next year, 10% in 2028. That's 50% over the next three years. I was expecting an increase. I didn't expect that much of an increase. So, but they do say in 2029 to 2034 that it's going to now be the increase

by inflation. And you know, the government felt that uh inflation was only 2.8% for 2026. and my social security is still trying to wrap my head around that, but now the rate is at 3.3 and we know it's higher, but um but it does say that during 2029 and 2034 that they'd look at using the info um the inflation. I'm asking you through your budget if there's some way you can look at what those as they say the increases are needed for infrastructure costs vehicles etc. So if there's any way of funding that department so that we're not hit as the individual people I think that would be a big help to us. And um then I will put another plug out there for my Phoenix Fire Department who works tremendously hard for response times, but we're still not meeting the standards. I know there's a bond. I am excited to hear another couple of fire stations and some rebuilding, but if more money can also be put towards what can we do to reduce those response times even more, I think that would be so helpful. Um, at least for me, as I waited nine minutes for the fire department to come as my mom was in need, it was really hard for to just see your parent like that. So, I just hope we can increase it. We are the fifth largest city and I think that's really important. And the one other um request I'd have is I'd like to see some more community um events. You know how you have like a health fair or something like that? I think it would be helpful

so that not just the people that are struggling on the streets, but there's a lot of people that are housed that are really struggling. And if we could have some type of we've got community centers even at once a month there was something there where we'd have key people there. Um and grant it wouldn't be every month because we don't have that many staff to be able to do that. But if we could do something where there's somebody there for um homeless solutions, there is somebody there for evictions, for assistance on a lot of the resources, they just don't know how to fill out the paperwork. And so that's what I'd say. And I'll end with um looked at the proposal on the mer um medical in the parks and I think you're right on target to do a compromise in that way. So, thank you for listening to us and been a great time.

Thank you, Teresa. That's probably one of the most thoughtful comments I've heard this whole budget season. So, thank you. I'll take it just a couple seconds and and let you know a couple things. We are looking at the transponder issue at Sky Harbor, as you mentioned, Teresa, that that is important to us and we're working to get our vehicles there with those transponders. on the solid waste increases. I think it's it's a 30% increase of that and then the inflation will be based on the government's inflationary number. One of the things that we did last time as we set it just at a straight 2% and as you know over the last five years inflation was way higher than than that 2% and that put us behind. And then on fire response times, that's something that this council and two council members up here were part of that group uh council that voted to add over 250 fire positions. Uh from last year going forward, we're on a threeyear three to fiveyear plan to expand fire service. As you mentioned, we're building new fire stations, but we're also adding those more than 250 firefighters to staff those stations. So, we have heard those uh concerns that you raised, Teresa, and that the council has taken strong action to uh allocate uh a great deal of funds and resources to continue to expand our fire service.

Thank you.

Thank you. And I want to thank Teresa. She's a very engaged constituent in District 3 and we really do appreciate all of her comments. Our next speaker, Karen Cruz. Did I say it right? I thought so. Come on up. Uh, good evening, council members and city staff um and city manager uh and guests. Uh, really appreciate the opportunity to be here this evening. Uh, I'm a proud resident of District 6 um, and I'm here today as a board member of the Friends of the Phoenix Library. Um, first and foremost to say thank you so very much for your continued support of our library systems. There is a line item in the budget, a $322,000 line item to expand parking at the Choya branch at Metro Center uh to help accommodate some parking needs that are um that are there. So, we wanted to just say thank you for that. Uh, and then we support that obviously. Um, and then just to let you know a few things about what we've been up to this past year. Um we are also supporting the historic status of the acacia branch. We have been very active in that effort. Uh and look forward to that continued um in the process. You'll be seeing us. Um bookstorm continues to be a very hugely successful program. We have given away over a million books now since the beginning of that program to librarians and teachers throughout the city. Um they're able to come down to the warehouse. They bring tote bags. We give them tote bags and however many books they can carry, they uh are able to do that with their children's books and they build their own libraries. Um we are also um wasn't were engaged in the

Diamondbacks and ANET uh book drive day and that was a very successful event and a partnership with them. Um, we also had a partnership in an event with KUPD and Fulton Homes again for a similar book drive event and that was very very successful. Um, and we're also um partnering with the director of library services on the upcoming Wallace and Ladmo day which I'm very excited about. I was on the show. I did get my Ladmo bag. I'm very proud of that. Um, and really we just wanted to say thank you so much. On a personal note, my soccer player is now in college. She's a freshman at Oregon State. But please, please, please, please find a way to have more soccer fields throughout the city. It's hard to go way out, way out west or way out east, but thank you so much.

Thank you for your comments. That is our speakers. Thank you. So, we do appreciate the time people took to be here. Again, thank you to all the staff who come to these to listen in and participate and be available. We do have a table in the back for those who want to talk more about the solid waste rate proposal and would invite everyone to pay attention. As I said, at the May 5th meeting will be the revised budget that will be sent to the council. And with that, I'll turn to our council members for any concluding comments.

I just want to thank everyone for being here, especially staff, because I know you've been to a lot of these meetings and I appreciate all the work you do. So, thank you. and thank you for everything. I think this is my last budget meeting. So, yeah. So, not really a time for nostalgia, but and it's still a year away, but uh but I appreciate everybody who's always turned out for these. Thank you. Thank you very much. Have a good evening.