Gilbert Town Council on June 10 gave final approval to a $2.46 billion budget for fiscal year 2025-26, wrapping up a difficult budget process marked by significant revenue losses and long-standing staffing shortfalls.
The vote passed unanimously, with a stipulation regarding the purchase of a proposed electric vehicle for Gilbert Fire & Rescue.
“Every year we're stretched to do more with less,” Town Manager Patrick Banger said, pointing to several factors that made this year’s budget particularly difficult.
Among the biggest hits to the town’s revenue are state-level changes that will result in a loss of nearly $14 million. These include the elimination of residential rental tax revenue, which amounts to about $9 million, and a loss of a state-shared income tax of another $4.5 million as the state has moved to its flat-tax model, decreasing revenue collections.
The town also faces inflation, rising construction costs due to supply chain issues and tariffs, and continued competition for municipal employees.
“We continue to deal with wage inflation and market competition for our employees and increased workload on staff,” Banger said.
As a result, staffing remains a significant concern.
Gilbert has the lowest number of full-time employees per 1,000 residents in Maricopa County at 5.88, according to data shared by Councilmember Kenny Buckland. For comparison, neighboring Chandler, which does not operate its own trash services, still has more staff than Gilbert.
Buckland made a plea for the town to find a way to increase staffing in the future, citing additional risk to the town from an overburdened staff.
“We do do a lot more with less,” Councilmember Chuck Bongiovanni said. “Our staff is unbelievably professional, dedicated and always have a positive attitude, and they're working with less.”
The approved budget includes 34 new full-time positions and 18 limited-term roles across departments. Still, council members noted this does not close the gap compared to surrounding municipalities.
“We are less,” Budget Director Kelly Pfost acknowledged, agreeing with Councilmember Monte Lyons’ estimate that Gilbert's staffing remains about 15% below similar cities.
Pfost said most of the $116 million year-over-year increase in the budget comes from capital improvement projects. About $1.2 billion of the budget is carryforward funding for ongoing capital improvement projects, with $500 million allocated for new or expanded projects.
Among major infrastructure investments, the town is continuing work on its water and street systems as well as parks and recreation projects.
Pfost noted that the town’s budget does not reflect what will be spent this year in capital improvement projects, but the total cost of the projects under way are included though they may take several years to complete.
“The projects are too large (to complete in one year), and the scope takes several years to complete,” Pfost said.
The council also approved keeping the property tax rate at $0.98 per $100 of assessed value, generating a levy of $34.84 million. The town is using those funds to continue making debt payments, including recently paying off the University Building bond early — saving more than $15 million in interest.
As part of the vote, council added a stipulation regarding a proposed purchase of a Ford F-150 Lightning electric truck for Gilbert Fire & Rescue’s Environmental Services unit.
The item raised concerns among some council members who questioned the suitability of electric vehicles for certain tasks.
“I would like to propose to everybody here, because of what seemed to be a consensus, that that particular item is changed over to a diesel or an XLT, a light-duty truck,” Councilmember Jim Torgeson said.
He argued that the Ford Lightning may not be adequate for the heavy-duty use required and noted a consensus on council against investing in electric vehicles at this time.
Pfost confirmed the money was still in the budget, but the purchase could be delayed until after a future study session on electric vehicle policy.
Councilmember Yung Koprowski included that stipulation in the final budget motion, which passed unanimously.
Despite the budget’s challenges, council members praised town staff for their efforts and professionalism.
“We have the lowest number of staff members per resident in any other city around us,” Bongiovanni said. “I can only apologize for not having the revenue that we need to bring that staffing level up.”
Council also noted the town's exceptional financial management. Gilbert holds AAA credit ratings from all three major agencies, placing it among fewer than 50 cities nationwide to achieve that across the board.
“When we do issue debt, more of our dollars go toward the project itself and not interest,” Banger said.
A budget video released during the meeting showcased progress on town projects and emphasized the importance of continued investments in infrastructure, sustainability and public safety. Highlights included park expansions, public safety building development, and new public safety positions.
We would like to invite our readers to submit their civil comments, pro or con, on this issue. Email AZOpinions@iniusa.org. Tom Blodgett can be reached by email at tblodgett@iniusa.org or follow him @sp_blodgett on X.
Meet Tom Tom Blodgett joined Independent Newsmedia, Inc., USA, in 2022, when the company acquired Community Impact Newspaper's Phoenix-area properties. Raised in Arizona, he has spent more than 35 years in journalism in the state.
Community: He has served as an instructional professional in the Walter Cronkite School of Journalism and Mass Communication since 2005, and is editorial adviser to The State Press, the university's independent student media outlet. He also is director of operations for an 18U girls fastpitch softball team from Gilbert.
Education: Arizona State University with a BS in Journalism.
Random Fact: He lived in Belgium during his freshman year of high school.
Hobbies: Tweeting enthusiastically about ASU softball (season-ticket holder) and grumpily about other local sports (pessimistic fan).
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