OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Eloy City Council Work Session - April 8, 2024: Revenue, CIP, and Fee Schedule Guidance

Meeting Portal — Monday, April 8, 2024
BodyEloy, Arizona
SessionMeeting Portal
DateMonday, April 8, 2024
StatusFILED
Video Record
0:00 / 1:23:33

Transcript — Verbatim
0:47

Yeah, well here's the next book.

2:24

This is where you have to right here.

3:02

Do you see the eclipse?

3:05

I see it.

3:08

Yeah, you want to see that so we can have two options.

3:25

Um I don't know if they would have fun to do that.

3:32

But there's no possibility.

3:51

I think it's a little why it's more than one of the action.

4:24

Uh here.

4:36

Yeah, so I'm gonna get some problems.

4:45

Yeah, probably just gonna get great.

7:10

I have five oh eight, ma'am.

7:14

Good evening, welcome to tonight's uh work session.

7:16

It is Monday, April eighth, twenty twenty four.

7:19

Approximate time is five oh eight.

7:20

I call this meeting to order.

7:24

Councilmember Sutton.

7:25

Here.

7:26

Councilmember Warwata Rodriguez.

7:29

Here.

7:29

Vice Mayor Curtis?

7:31

Here.

7:32

Here.

7:33

Councilmember Snyder.

7:34

Here.

7:35

Councilmember Garcia will be a late arrival.

7:38

Councilmember Tranco.

7:40

Here.

7:40

Thank you.

7:41

We can all stand for the Pledge of Allegiance.

8:05

Any public appearances?

8:06

Probably not.

8:12

Discussion items.

8:13

Item A presentation by Brian Wright, Finance Director on Revenue Projections for the Fiscal Year 2024, 2025, and seeking guidance on the primary property tax rate.

8:28

Um tonight uh I've I got a presentation to go over our kind of our twenty four twenty-five uh revenue revenue presentation.

8:37

Um we'll go over um various items between the general funds, special revenue funds talk about the property tax.

8:45

But I'm gonna go ahead and jump into it.

8:47

Um this is just one of three presentations tonight.

8:51

So let's see.

10:00

I'm just not sure why it's not uh why it's going backwards.

10:14

She's always ready to just bring up the uh PDF.

10:27

I'm just gonna bring the PDF up real quick.

10:33

Oh I'll just go to the PDF.

10:35

I'm a little frustrating.

10:36

So we'll talk about the uh just want to expand it out.

10:46

There we go.

10:51

So we'll the so kind of looking at the uh key factors influencing kind of the 24 or 25 uh projections, kind of looked at the inflation impact.

11:03

What's inflation look like?

11:05

Uh the state of the economy is a big one because you know, with sales tax, uh you know, with prices going up, uh with the state legislators, there's a lot of impacts going on with local government when it comes to the state economy.

11:21

We evaluated the sales tax.

11:24

Uh we looked at you know, trends within our retail sales, you know, with the restaurant and bar and other categories that make up our city of sales tax when we were looking at our revenue projections.

11:36

Uh states state uh shared revenues.

11:40

That's a big one because when the city when the state implemented the flat tax, that was a big um decline in our our revenues we get on that one.

11:49

So that was a uh influencing factor on our projections this year.

11:54

And then looking at the property tax, you know, is will council continue to look at the adopting the maximum level that we've been doing on that.

12:03

So those were some of the key factors when we're looking at our general fund revenues.

12:09

When it comes to the annual um annual inflation as of March or as a February, it was about 3.2%.

12:18

So, you know, that's been kind of the it's been around 3.6 to 3.2 for the last several months.

12:23

So inflation has been playing a big part of it because it affects not only our collections, but when inflation goes up, the prices go up, so we get more revenue collection.

12:34

So it does have a positive impact on our revenue stream, but out in the for everybody's pocketbooks, it cost more.

Discussion Breakdown — Share of Meeting
Capital Improvement Planning█████████████████████████25%
Code Enforcement█████████████████17%
Fiscal Sustainability███████████████15%
Budget Equity Analysis████████████12%
Procedural████████8%
Property Tax Management██████6%
Sanitation Management██████6%
Miscellaneous████4%
Public Engagement██2%
Summary of Proceedings

Eloy City Council Work Session - April 8, 2024

On Monday, April 8, 2024, at approximately 5:08 PM, the Eloy City Council held a work session to discuss revenue projections for FY 2024-2025, the Capital Improvement Plan (CIP), and the proposed consolidated rate and fee schedule. Finance Director Brian Wright led the presentations, and council provided guidance on the primary property tax rate and various fees. No formal votes were taken; the session was for deliberation and direction.

Discussion Items

A. Revenue Projections & Primary Property Tax Rate Guidance

  • Brian Wright presented key factors influencing FY 2024-2025 projections: inflation at 3.2% (February), state economy, sales tax trends, state shared revenue impacts (flat tax), and property tax considerations.
  • City sales tax is projected at $8.7 million (11% increase over FY 2023-2024), driven by construction sales tax adjustments. State shared revenues are expected to decrease by 2% (~$438,000 negative impact from the state income tax flat tax).
  • The rental tax elimination (effective January 1, 2025) will cost the general fund about $100,000 annually.
  • The primary property tax rate: the maximum allowable rate for FY 2024-2025 is $1.0115 (a decrease from $1.648). Council consensus was to adopt the maximum rate, which generates an additional $67,000 over the new construction-only rate ($0.99). Councilmember Sutton analogized it as an "insurance policy" against future downturns.
  • Wright noted that the general fund is trending positively, with a 7.6% overall increase (~$1.4 million) over the prior year, though some one-time revenues (e.g., investment income) are included.

B. Capital Improvement Plan (CIP) FY 2024-2025

  • Wright outlined the CIP as a strategic roadmap with 57 projects totaling $18.4 million across 12 departments.
  • Key projects: Airport ($2.1M, with $1.8M in state/federal funding), Cemetery fog seal ($75,000), City Manager's video/audio upgrade ($205,000), Community Development ($290,000), Community Services ($710,000), Finance ($230,000), Sanitation ($2.3M, funded via general fund transfer), Public Safety ($1.1M, including 7 vehicles partly grant-funded), Public Works ($960,000), Sewer ($6M, including $4M for 11-mile corner sewer line expansion), Streets ($2.8M, including street preservation and chip seal on Toltec Road).
  • City Manager David (likely Dave) informed council that the Toltec Road chip seal project is being delayed because Robeson's construction shifted to the west side; the city will not proceed until aligned with Robeson's development. Dust mitigation will be addressed by public works in the interim.

C. Consolidated Rate and Fee Schedule FY 2024-2025

  • Wright presented proposed changes (highlighted in yellow) across departments for council guidance.
  • Community Development: significant fee adjustments to align with current codes and cost recovery, bringing fees in line with neighboring communities (e.g., Castle Grande). Building permit fees updated (last updated 2021). Councilmember Snyder expressed concern about staying competitive for small developers; Community Development Director Dan assured fees are within a few dollars of adjacent communities.
  • Sanitation/Landfill: Proposed elimination of the current free dumping (0-1000 lbs). Public Works recommended $8 for 0-500 lbs and $11 for 500-1000 lbs, with double fees for non-residents. After council discussion, consensus emerged for a flat $10 fee for the first 1000 lbs for residents, and $20 for non-residents. Councilmember Snyder raised concerns about encouraging illegal dumping; staff proposed community roll-off events and signage to mitigate.
  • Other departments: minor adjustments to police (CD copies), parks and rec (recreation programs).
  • The final schedule will be brought back for public hearing and adoption on June 24, 2024, with an effective date of August 1, 2024.

Key Outcomes

  • Council provided guidance to adopt the maximum primary property tax rate ($1.0115) for FY 2024-2025.
  • Council directed staff to adjust the landfill fee proposal to a flat $10 for the first 1,000 pounds for residents and $20 for non-residents.
  • The Toltec Road chip seal project will be removed from the current CIP and deferred to years 4-5, with dust mitigation efforts in the interim.
  • The consolidated rate and fee schedule will be formally presented for adoption on June 24, 2024, after the required 60-day public notice.
  • The next budget milestone is the tentative budget presentation to council in early May 2024.

Meeting Transcript

Yeah, well here's the next book. This is where you have to right here. Do you see the eclipse? I see it. Yeah, you want to see that so we can have two options. Um I don't know if they would have fun to do that. But there's no possibility. I think it's a little why it's more than one of the action. Uh here. Yeah, so I'm gonna get some problems. Yeah, probably just gonna get great. I have five oh eight, ma'am. Good evening, welcome to tonight's uh work session. It is Monday, April eighth, twenty twenty four. Approximate time is five oh eight. I call this meeting to order. Councilmember Sutton. Here. Councilmember Warwata Rodriguez. Here. Vice Mayor Curtis? Here. Here. Councilmember Snyder. Here. Councilmember Garcia will be a late arrival. Councilmember Tranco. Here. Thank you. We can all stand for the Pledge of Allegiance. Any public appearances? Probably not. Discussion items. Item A presentation by Brian Wright, Finance Director on Revenue Projections for the Fiscal Year 2024, 2025, and seeking guidance on the primary property tax rate. Um tonight uh I've I got a presentation to go over our kind of our twenty four twenty-five uh revenue revenue presentation. Um we'll go over um various items between the general funds, special revenue funds talk about the property tax. But I'm gonna go ahead and jump into it. Um this is just one of three presentations tonight. So let's see. I'm just not sure why it's not uh why it's going backwards. She's always ready to just bring up the uh PDF. I'm just gonna bring the PDF up real quick. Oh I'll just go to the PDF. I'm a little frustrating. So we'll talk about the uh just want to expand it out. There we go. So we'll the so kind of looking at the uh key factors influencing kind of the 24 or 25 uh projections, kind of looked at the inflation impact. What's inflation look like? Uh the state of the economy is a big one because you know, with sales tax, uh you know, with prices going up, uh with the state legislators, there's a lot of impacts going on with local government when it comes to the state economy. We evaluated the sales tax.

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