Eye on Buckeye | June 2023 | Budget Special Issue

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uckeye continues to focus on solid, long-term financial planning to ensure our residents are receiving the key services they expect now and in the future. Currently, Buckeye’s financial outlook is very strong.

Buckeye’s fiscal year 2023-24 budget in the amount of $565 million is an increase of 8.5-percent over the previous year and includes all costs from daily operations, one-time expenses, a fully funded five-year Capital Improvement Program (CIP) and a solid contingency fund.

This year’s budget uses established financial policies, budgeting practices and financial standards that meet the requirements and benchmarks for excellence created by the Governmental Finance Officers Association (GOFA) and the Government Accounting Standards Board (GASB).

The strategies for this year’s budget include:

• Use conservative revenue estimates

• Ensure ongoing expenses are paid with ongoing revenues

• Investing in the future with a fully funded 5-year CIP

• Maintaining a solid balance in General Fund (25%), HURF and Enterprise Funds

• Keeping the Property Tax rate at its current amount

Our General Fund revenues are the largest source of city revenues, and the uses for our General Fund are the largest source of expenses. Some of the key sources for the city’s General Fund include:

$85 million from Sales Tax

$48 million in state shared revenues (the city’s portion of state taxes and fees)

The city’s proposed primary property tax rate is $1.65 per $100.00 of net taxable value

$19 million in building permit fees

$13 million in primary property taxes

WHERE YOUR TAX DOLLARS GO

49% Capital Improvement Projects $281M

18% Daily Business Operations $103M

18% Personnel $106M

9% Contingency $55M

3% Debt Services $20M

Economic Climate

Buckeye continues to experience a strong financial outlook. While single family residential permits have declined, the city continues to be one of the fastest growing communities in the nation. Multi-family, build-torent, apartments, townhomes and other types of housing are making their way through our permitting process. As a growing community, Buckeye needs all types of housing to meet the demands of the increase in retail services and businesses already open or in the pipeline.

Current growth trends show significant increases in retail, services, healthcare and business relocation. Over 1,500 new jobs came online or were committed to in 2022. Over 5-million square feet of employment opportunities are under construction, including the Ross Dress for Less distribution center opening in 2024 with 1,300 jobs.

Arizona Public Service’s HUBWest facility opened in April 2023 with a total of 250 jobs. Rehrig Pacific, a leader in sustainable products for the waste industry, recently announced their relocation to Buckeye with 250 jobs when they become operational in early 2024.

An additional 800,000 square feet of retail and services are currently under construction. Developers recently announced a 500,000 square foot outdoor center, “Verrado Marketplace” with big box retail, movie theater, restaurants and specialty shops. Across the freeway, Buckeye Commons is taking shape with Costco and other big box retailers, plus several sit-down restaurants in the works.

In the health care sector, the Buckeye Medical Plaza broke ground in May for a 48,000 square foot facility to provide a full menu of health care options. The Abrazo Community Health Network and Banner Health are on track for full-service hospitals to begin construction within the next year at Verrado and I-10.

Over 1,500 new jobs came online or were committed to in 2022.

Buckeye City Councilmembers participate in the ribbon cutting ceremony for the new APS HUBWest facility. Appearing in photo: Michelle Hess, District 3; Tony Youngker, District 1; Eric Orsborn, Mayor. Also in photograph former Buckeye Mayor Jackie Meck and Congressman Paul Gosar.

ecent headlines may lead you to believe Buckeye, and Arizona, are out of water, or not good stewards of water. Buckeye currently has enough water resources to sustain our existing customers and the projected growth for years to come.

The city has been working for years to diversify our water portfolio. The Buckeye City Council recently approved a purchase agreement for a one-acre parcel of land that includes nearly 6,000 acre-feet of water for the next 100 years. In addition, the city recharges over 2,500 acre-feet of effluent annually.

Water will remain a major priority for the city, and we will continue collaborating with local and state agencies to find innovative solutions that will benefit not only Buckeye, but the West Valley, the state of Arizona and the entire southwestern U.S.

RWater Strategic Plan Goals

In December of 2022, the City Council adopted the 2023-2026 Strategic Plan. The plan focuses on five areas and includes input from City Council, employees and residents.

Each of these focus areas have guiding principles and specific, measurable activities to be completed within fiscal years 2023-2026. This ensures Buckeye stays on track by making deliberate, smart and sustainable choices for the future of our city.

Budget Priorities

Buckeye will continue focusing on providing excellent services and amenities for our residents while still meeting our financial goals and Council priorities.

Two key components of this year’s budget that address all five focus areas of the Council adopted Strategic Plan are streamlining internal processes to become more efficient; and to pursue outside revenues to supplement capital projects.

By streamlining internal processes, all city departments that play a critical role in development activity in the city are now housed in one city department, Development Services. This reorganization speeds up the entitlement process and allows the Engineering Department to focus on the Capital Improvement

$2 million for Community Services (Sundance Park)

$5.2 million for Water and Wastewater projects

Program and expanding the city’s Transportation Division.

Pursuing grant opportunities and further streamlining internal services maintains the city’s strong financial outlook and meets the Council adopted Strategic Plan goals of fiscal responsibility, supporting economic growth, being an innovative and high performing organization, creating a safe and sustainable quality of life and investing in the city’s infrastructure.

Streamlining our processes has resulted in a fully funded five-year Capital Improvement Program. Under the direction of the Engineering Department for the past year, all capital projects have been fully scoped and will be completed in the time-frame estimated.

$7 million for Public Safety (Police & Fire)

$7.9 million for the Buckeye Municipal Airport

With a dedicated grants writer now on staff, Buckeye has received over $26 million in grant funding that has been distributed throughout the city.

Our Greatest Asset

Our employees. Buckeye continues to invest in our employees and becoming the employer of choice not only in the West Valley, but in municipal government. Our employees are what makes Buckeye a great place to live and work.

As the city’s population increases along with more retail, services and industries, the city’s workforce needs to grow to ensure we maintain current service levels. A total of 65 new full-time equivalent employees (FTEs) are included in this year’s budget. To maintain our current financial policies, 39 of these positions will open on July 1, 2023, the remaining 26 positions will open in January of 2024.

Public Safety again saw the largest increase in personnel, with nine new FTEs in Fire and 14 FTEs in Police. Water Resources and Community Services each add seven new FTEs and Engineering staff increases by five FTEs.

Capital Projects

I nvesting in the city’s infrastructure is critical to our future. Most of the funding for the non-utility CIP projects will come primarily from the city’s General Fund and aligns with City Council’s priorities. Other sources for these projects include impact fees and grants.

Several water and wastewater CIP projects will keep moving Buckeye forward in diversifying our water portfolio. Funding for these projects will come from bonds, reserves, impact fees and the General Fund.

• $20.3 million for the Farallon Water Campus

• $11.5 million for new wells

• $9.5 million to replace/ upgrade water lines

• $7.7 million for improvements to reclamation facilities in Sundance, Tartesso & Festival

• $3.5 million to improve wastewater treatment plant facilities

5 MILLION $11 MILLION

MILLION

5 MILLION $11. 5 MILLION

Our Home, Our Future

Buckeye will continue to stay on strong financial ground with a balanced budget and conservative revenue estimates, adequate funding reserves for contingencies, investing in our future and ensuring our current residents receive the same great service and amenities they expect from us.

This $565 million balanced budget includes significant investments in our infrastructure, services and employees. It complies with Council approved Strategic Plan goals and focuses on improving services to our residents, promoting economic growth, enhancing a safe and sustainable quality of life, creating an innovative and high performing organization and improving the city’s infrastructure.

B UCKEY E

General Obligation bonds are approved by voters and used to finance a variety of infrastructure projects such as streets, parks, libraries, pools, police and fire stations and drainage systems. The last time Buckeye held a General Obligation Bond election was in 1987.

Buckeye is looking to hold its first Bond election in over 35 years in November of 2024 as part of the General Election. This process will require extensive public outreach, the formation of a Bond Commission and Council approval for the initiative to be on the ballot. Initial planning is currently underway.

530 E. Monroe Ave. Buckeye, AZ 85326