Goodyear keeps tax rate flat as property tax levy increases

The Goodyear City Council voted unanimously to approve a $1.2 billion budget that keeps the city’s property tax rate flat, even as the total amount collected from property owners is set to increase by 2%.

The increase in the tax levy, roughly $303,000 over last year, is the result of new construction and the city’s growing population, not a change to the actual tax rate, officials emphasized.

“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 additional amount is generated from growth rather than a rate hike.

Terry noted that he experienced similar confusion with the required notices while serving 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 funds general government operations and can be used for a wide range of city services at the council’s discretion. In contrast, 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 of its debt early, the specific obligations being paid off do not reduce the secondary levy because they are not tied to general obligation bonds.

Councilmember Laura Kaino said she appreciated the discussion and efforts to explain these topics clearly.

“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 properties are subject to limits on how much the city can increase its levy each year, 2% in the case of the city’s primary tax rate.

Councilmember Terry said Goodyear’s policy of collecting the maximum allowable primary levy is important for sustaining public safety, infrastructure and city services as the population grows.

“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 might allow for a slight reduction in the overall tax burden.

Mayor Joe Pizzillo underscored that the tax dollars being collected are going directly into projects that benefit the public.

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

 The final vote to set both the primary and secondary property tax rates is scheduled for June 23.

Visit goodyearaz.gov for more information.