Avondale staff present draft FY2026 budget with proposed pay increases, new positions and major CIP priorities

City staff presented the draft fiscal year 2026 budget to the Avondale City Council on March 24, 2025, and asked for council feedback before the city manager’s recommended budget is issued in April.

Renee (budget staff) summarized key assumptions: no recession or changes to state-shared revenue in the forecast, a return to normalized contracting sales-tax revenue after recent higher-than-expected years, and an assumed 3% annual inflation factor. The presentation showed a thin structural surplus in FY26–FY27 and described stabilization and capital reserves: a policy reserve equal to 35% of the prior year budget and a separate $5 million capital reserve. Staff noted the forecast excludes any revenues from proposed data-center projects.

Personnel proposals and compensation highlights: staff proposed targeted additions across departments (police, fire, courts, parks, engineering and economic development). HR Director Andy Mosquito recommended these pay changes embedded in the draft budget:

- Police officers and sergeants: a one-step increase (equivalent to 5%) plus a 3% cost-of-living adjustment (COLA); topped‑out sworn employees would receive a one‑time merit lump sum (about 2%). - Fire sworn employees: similar one-step (5%) plus 3% COLA; topped‑out individuals eligible for a one‑time merit payment. - Remaining city staff: a 2% merit increase plus a 3% COLA, with topped‑out employees eligible for a one‑time lump-sum of up to 2%. - Additional compensation items: on‑call pay increase to $2.50/hour, shift differential increases (up to $1/hour for midnight–4 a.m.), ballistic vest allotment increase from $1,200 to $1,900, and a $300 annual increase to uniform allowance for eligible PD employees. - A new proposal would provide a $5,000 city contribution to a post-employment health account for sworn officers and sergeants who retire in good standing with 20 or more years of consecutive service; staff described that as modeled after a firefighter benefit adopted last MOU cycle.

Budgeted personnel changes in the draft included requests for two police overhires (net-zero in the draft due to vacancy savings), a court clerk related to photo radar operations (funded from photo‑radar revenue as currently budgeted), a business development manager in economic development, plan-review engineering staff, parks supervisors and part-time senior-services coordinator hours, and solid-waste and fleet positions funded from enterprise rates.

Capital-improvement program (CIP) and projects: City Projects Administrator James Mullaney reviewed FY25 accomplishments and a multi-year pipeline. Major items in the FY26–30 draft include the Alamar combined public-safety station, continued Old Town phases (including the street reconstruction in Cashin/Old Town), Awa Fria trail segments and crossings, PFAS and well‑site treatment design and land, water/wastewater treatment expansion planning, park upgrades (Friendship Park, Mountain View, Fred Campbell, Las Lagos), and a design request for an indoor multi‑court facility (pickleball) with a $1,000,000 design ask and an unfunded construction estimate range discussed in the presentation.

Council discussion: members asked for clarifications about economic-development incentive funding (staff described a $1,400,000 line for attraction, lead generation and incentives), how photo‑radar revenue is tied to court staffing, and sequencing/cash-flow for CIP projects. Questions also focused on long‑term sustainability for any post-retirement health benefits and the scope and capital cost uncertainties for the proposed indoor recreation facility. Staff emphasized that design and construction timing is staggered to align with development and workload capacity and that many construction numbers remain subject to final designs.

Next steps and timeline: staff will return with the city manager’s recommended budget in April, a tentative budget adoption in May (which sets the fiscal spending limit), and a final hearing and adoption in June.

Ending: The March 24 presentation was a review and request for council feedback; no budget adoption occurred. Staff invited additional council priorities and will refine proposals ahead of the April recommended budget release.