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City staff outlines Buckeye—Y2027 recommended $501.7 million budget
Summary
City staff presented the FY2027 recommended budget totaling $501.7 million, emphasizing conservative revenue estimates, a 17% reserve policy, $41 million in one-time beginning fund balance to cover a $1.8 million ongoing shortfall, and 48 new positions (1,024 total).
City staff presented the Buckeye city manager—Y2027 recommended budget on May 5, describing a $501.7 million package that excludes carryover project funding and emphasizes conservative revenue assumptions.
A staff presenter summarized key policies used to build the plan, saying the administration deliberately reduced sales-tax growth assumptions "more into the 5% range" after recent double-digit years and that construction sales tax is treated as a one-time source. The presentation noted construction sales tax is estimated at about $26.5 million and will be used for one-time capital items rather than ongoing personnel costs.
Why it matters: the general fund drives discretionary spending for public safety, community services and administrative departments. Staff said transaction privilege (sales) tax will account for about 40% of general fund revenue in FY27, with state-shared revenue at roughly 20%, licenses and permits near 9% and primary property tax about 8%.
Staff showed the city will keep a 17% operating reserve (cited as approximately $31.2 million in the general fund and $14.1 million in enterprise funds) consistent with Government Finance Officers Association best practices. The budget projects a roughly $1.8 million ongoing deficit for FY27 after moving ongoing debt service into the ongoing ledger; staff said one-time fund balance (about $41 million at the beginning of FY27) and construction sales tax would cover that shortfall in the short term while growth is expected to restore ongoing balance in subsequent years.
Staffing and grants: the recommended authorization totals 1,024 positions, including 48 new full-time positions effective July 1 and several mid-year firefighter hires linked to academy schedules. The presentation also described 14 revenue-contingent positions that would be funded only if revenue collections exceed current conservative estimates. Staff said the budget includes roughly $25 million in potential grants and retains $20 million in budget authority so the city can appropriate funds if those grants are awarded.
Capital plan: the five-year CIP (FY27-31) was presented as a working plan. Staff said FY26 includes roughly $151 million in projects that are expected to carry over, while FY27 shows a decline because many projects have funding in FY26 and will move into FY27 as carryovers. Major transportation projects identified in the five-year plan include the Miller Road widening, Maraway, downtown storm-drain work and Jackrabbit Trail; public safety projects include two fire stations (Victory and West Park) and a training facility.
Next steps: staff said the tentative budget will return May 19 (including carryovers) as the state-required first step; the final budget and the Truth in Taxation hearing are set for June 2, with property tax levy adoption planned for June 16. No formal votes were taken during the workshop.
Officials recognized Anna, Jessica and Tanya from the budget division for their work on the proposal. The council paused the workshop for a recess timed to reconvene at 5:00 p.m.
