Goodyear finalizes budget, keeps tax rate flat as levy increases

The Goodyear City Council has officially adopted the city’s property tax rates for fiscal year 26, following a unanimous vote to approve an ordinance finalizing both the primary and secondary tax levies.

The ordinance, passed on the consent agenda, sets the primary property tax levy at $16,503,128 and the secondary levy at $14,222,200. While the city’s property tax rate remains unchanged, the total amount collected from property owners will increase by roughly 2%, about $303,000, due to new construction and a growing population.

“Despite what was set out as required by law, the overall tax rate in Goodyear is remaining flat,” said Councilmember Trey Terry, who asked several clarifying questions about the primary and secondary tax levies during the public hearing.

Under Arizona’s Truth in Taxation law, cities must notify residents when they plan to collect more property tax revenue than the previous year, even if that increase comes from growth and not a rate change.

Terry noted he encountered similar confusion over required notices during his time on the Agua Fria High School District Governing Board.

“We reduced our bond levy rate one year, we still had to send out the Truth in Taxation notice,” he said. “I’m familiar with how confusing it gets.”

Financial Services Director Ryan Bittle explained that the primary property tax levy supports general government operations and can be used broadly at the council’s discretion. The secondary levy is restricted by state law to paying off general obligation debt.

“The primary levy we use for the general fund...we typically, here at the City of Goodyear, continue to reinvest into our public safety programs,” Bittle said.
He added that while the city has taken steps to pay down some debt early, the obligations being retired do not affect the secondary levy because they are not tied to general obligation bonds.

Councilmember Laura Kaino said she appreciated the effort to explain the city’s property tax structure in plain terms.

“The publications that we put out on Truth in Taxation are very legal. They’re very technical,” Kaino said. “I think it’s also important to be able to put it in layman’s terms.”

Bittle gave an example: when a new home is built, it is assessed and taxed separately from existing properties. Existing homes are subject to a 2% cap on how much the city can increase its levy each year under state law.

Councilmember Terry said Goodyear’s policy of collecting the full allowable primary levy is necessary to support critical services as the population continues to grow.

“I know this year we were talking about the increase in public safety funding: 29 new police positions to my recollection, we have a new fire station going in with this budget, expansion of roads, adding traffic lights,” Terry said. “There’s just so much there.”

He also said he would like the council to consider whether future growth could create room to ease the overall tax burden.

Mayor Joe Pizzillo stressed that the tax dollars are being used to directly benefit the community.

“We are investing back into the city with all of this money to make us a greater place to work, live, and raise our family,” he said.

Of the total $1.2 billion budget, nearly $600 million is dedicated to capital improvements. That includes $396 million for transportation projects, $139 million for parks and recreation, and $108 million for public safety.

For more information, visit goodyearaz.gov.