Avondale City Council Meeting Summary - March 26, 2026

The Avondale City Council held a lengthy meeting on March 26, 2026, primarily focused on the Fiscal Year 2027 budget, general obligation bonds, and utility rate projections. Council received presentations on the results of the November 2025 bond election, the draft FY27 budget with proposed reductions, capital improvement projects, and water/sewer rate scenarios. Key discussions centered on whether to re-submit a public safety bond, how to balance the budget while maintaining services, and future rate increases for water and wastewater compliance.

Consent Calendar

• All consent agenda items were approved unanimously by voice vote (Councilmember White joined later).

Public Comments & Testimony

• Maria Alvarado, an Avondale resident, expressed full support for council training, conferences, and networking, stating it is critical for fair and ethical representation and that cutting such funds would be a mistake.
• A second blue card was issued but the speaker (Teresa DeSante) did not appear to speak.

Discussion Items

• General Obligation Bond Recap (Item 4A): Paul Bence (High Ground Strategies) presented results of the November 2025 bond election. Voter turnout was 16.7% (7,772 voters). Proposition 404 (parks) passed by 275 votes with a 295-person undervote. Proposition 405 (public safety) failed by 13 votes with a 523-person undervote; Bence noted that if seven people had changed their vote from no to yes, it would have passed. A strong 'no' campaign on an unrelated issue in the Devonshire precinct depressed support across multiple ballot measures. Council discussed going back to voters. Mayor Paneda favored doing so quickly, possibly with a single public safety question. City Clerk Marcella noted holding a separate election would cost about $80,000, but adding to the November 2026 county election would cost roughly $30,000. Most council members supported re-submitting a public safety bond, possibly without a new citizen committee, given the ongoing need.
• FY27 Budget Discussion (Item 4B): Finance Director Renee Wetherless reviewed revenue assumptions (loss of residential rental tax, impact from Santan Valley incorporation losing ~$667,000 annually, potential tax conformity loss of ~$880,000) and expenditure pressures (salary adjustments of $2.2 million for public safety, $1.8 million for general staff; medical cost increase of $4.3 million; transit subsidies). The five-year forecast shows structural deficits starting in FY28, with only $900,000 in unrestricted fund balance by FY31. Proposed budget reductions totaling $3.7 million were outlined, including: reducing Trash Rios Nature Festival to one day, reducing Billy Moore Days to one day, eliminating the Hoot and Hustle and Duck and Dash runs, cutting International Yoga Day, holding two egg hunts instead of more, and reducing facility overseeding and mowing. Council also debated restoring $40,000 to the auditor's budget (initially cut to $60,000)—a consensus emerged to restore it to the full $100,000 requested. Council considered a $1,000 reduction per member in discretionary spending (from $9,000 to $8,000), which passed despite opposition from Councilmember White and Solorio who noted high travel expenses; a mechanism to allow members to share funds was suggested. Council discussed funding the Greater Phoenix Equality Chamber of Commerce at $750, but did not reach consensus; it was not included in the final direction. Council chose to reduce the Chamber of Commerce contract from the 'Titanium' level ($40,000) to the 'Platinum' level ($25,000) as a cost-saving measure, with the understanding that some benefits may be customized. Council also voted to discontinue the $25,000 NASCAR sponsorship, freeing funds for other priorities. The $10,000 Litchfield Heritage Center sponsorship was retained.
• Utility Rate Projections (Item 4C): Public Works Director Kirk presented water and wastewater cost drivers: growth, PFAS compliance (11 of 16 wells exceed limits, estimated treatment cost $167 million), Bartlett Dam (Avondale's share $44.5 million for 4,500 acre-feet), and the wastewater treatment plant expansion (phase 2, cost $155.8 million). Two water rate scenarios were presented: compliance by 2031 (required steeper rate increases, e.g., 12.5% in FY28) or compliance by 2034 (lower near-term increases but would push the debt coverage ratio below the city's 1.5 policy). After discussion, council directed staff to pursue the 2034 compliance scenario while maintaining the 1.5 debt coverage ratio, acknowledging that actual deadlines may shift and that starting design in FY27 is prudent. For wastewater, rates would need a 10% increase in FY28 followed by 2% annually to fund the expansion, with 60% of debt repaid through development impact fees. Councilmember Garcia expressed strong opposition to any rate increase, urging federal advocacy.

Key Outcomes

• Bond: Council directed staff to move forward with placing a public safety general obligation bond on the November 2026 ballot; a new citizen committee was considered but not required.
• Audit Budget: The city auditor's FY27 budget was restored to $100,000 (up from the proposed $60,000), to be funded by reductions elsewhere (e.g., using the $25,000 freed from NASCAR sponsorship).
• Council Discretionary Funds: Reduced by $1,000 per member (from $9,000 to $8,000), with a mechanism to allow sharing between members.
• Chamber of Commerce: Contract reduced from $40,000 to $25,000 (Platinum membership) with staff to negotiate customized benefits.
• NASCAR Sponsorship: Eliminated ($25,000 removed).
• Litchfield Heritage Center: $10,000 sponsorship retained.
• Water Rates: Staff will prepare a rate plan assuming PFAS compliance by 2034 (not 2031) while maintaining a 1.5 debt coverage ratio; bond issuances for Holly Acres ($6 million) and PFAS design ($13.5 million) will be brought to council on May 4, 2026.
• Wastewater Rates: Staff will prepare a rate plan with a 10% increase in FY28 and 2% thereafter; bond issuance for the wastewater plant expansion will be brought to council on May 4, 2026.
• Fire Apparatus Replacement: The scheduled purchases remain, with a new engine for the future Southern Avondale station noted.
• Next Steps: The city manager's recommended budget will be presented in April, with tentative adoption in May and final adoption in June.