Avondale council holds truth-in-taxation hearing, approves $486.6 million FY2026 final budget

The Avondale City Council on June 2 held a truth-in-taxation public hearing and voted 4–3 to approve Resolution 1032-0625 setting forth the city—s intent to levy more property tax dollars than the prior year; the council then adopted the city—s final fiscal year 2026 budget of $486,614,500 in a separate special meeting, approved 7–0.

The hearing and votes matter because the city—s proposed levy increase — limited by state statute to 2% year-over-year growth in levy dollars — will raise the dollar amount the city collects even though the combined property tax rate remains about $1.46 per $100 of assessed value. City staff said the primary rate is decreasing slightly while the secondary rate (used to repay voter-approved debt) is rising, producing an overall increase in levy dollars driven by higher property valuations and the allowed 2% levy adjustment.

Finance staff member Renee presented the budget and levy information, saying the proposed fiscal 2026 final budget totals $486,614,500 and the combined tax rate is $1.46, the same as the current fiscal year. Renee said the city—s primary property tax portion is decreasing from roughly $0.62 to $0.61 per $100 of assessed value while the secondary portion is increasing, and that the city must hold the truth-in-taxation hearing because it is proposing to collect more levy dollars than the prior year. "The levy is the amount of revenue that the city collects, and it is because we are levying more money than the prior year, that we're required to hold a truth in taxation public hearing," Renee said.

During the hearing two councilmembers said they would vote no. Councilmember Solorio said he would vote no "to clearly explain why I will be voting no on the resolution to increase property taxes" and argued the council should consider the cumulative effect of recent utility rate increases and potential tax increases on households. Councilmember Garcia said she also would vote no and urged the council to consider alternatives, saying she is a single mother and hears residents' financial concerns regularly.

Renee outlined changes since the tentative budget: $609,000 added for pickleball courts and $169,000 for a dog park at Friendship Park; a one-time $25,000 city contribution to a vision plan; $321,000 in increased grant revenue; and the addition of 7.75 full-time equivalent positions previously budgeted as a dollar amount in parks. Staff said those increases were offset by contingency reductions or unanticipated revenues. City staff and the city manager warned that declining to levy the 2% allowable growth would reduce future revenues because the 2% allowance compounds year to year.

During roll-call voting on the truth-in-taxation resolution, Councilmember Condie voted aye; Councilmember Garcia voted no; Councilmember Solorio voted no; Councilmember Weiss voted aye; Councilmember White voted aye; Vice Mayor Nielsen voted aye; and Mayor Pineda voted no. The motion carried 4–3. Later in a separate special meeting the council voted 7–0 to adopt the final fiscal 2026 budget.

Maria Alvarado, a resident who spoke during public comment before the hearing, said she opposed raising property taxes. "I am against the increase in property taxes in Avondale," Alvarado said, adding she feared higher taxes would increase rents and mortgage payments for families already facing rising costs.

The council indicated it will return on June 16 for consideration of formal adoption of the property tax levy document tied to the final budget and to complete any remaining procedural steps required by state statute.

Less critical details: staff showed the public notice ads that ran in the West Valley section of the Arizona Republic on May 16 and May 23 and provided a five-year capital improvement plan and schedule of interfund transfers as exhibits to the budget package.