Glendale budget plan addresses array of challenges

Glendale city employees would get raises for the first time in years, police and fire forces would add 25 positions and city services would continue as normal — despite a shortfall — under the proposed city budget.

Property taxes and some fees would increase, however.

Glendale has long struggled with its finances, but a combination of sports-related debt payments and rising personnel and service costs contributed to a $17.6 million gap in the general fund for next year’s $642 million budget.

Staff narrowed that gap to about $2.1 million, which is the cost to host the Super Bowl at University of Phoenix Stadium in February, City Manager Brenda Fischer said.

As part of the plan to cut the shortfall, the city would increase property taxes by 2 percent, which would raise taxes by 96 cents annually on homes costing $100,000 and $1.92 on homes costing $200,000. Also, alarmregistration fees with the Police Department would increase.

However, most residents might not notice a host of other fixes that would narrow the gap. The city would trim departmental operating costs and cut vacant positions; collect tax exemptions missed by former city staff; go after businesses delinquent in paying taxes; restructure some internal loans; and temporarily reduce the amount of money set aside for unexpected costs.

The city would then use its reserves to cover the remaining $2.1 million shortfall.

But that also depends on $3.7 million in savings from renegotiating an agreement with Phoenix for Camelback Ranch, the city’s spring-training baseball complex.

A tax-sharing agreement required Glendale to purchase land next to the facility or find a developer.

The budget assumes that the city’s legal team will succeed in changing those requirements. If not, said Financial Services Director Tom Duensing, the city will dip further into reserves.

“What sets Glendale apart from other cities is the (debt),” Duensing said. “They don’t have this piece of the pie competing against other services.”

About $2 out of every $10 in the general fund goes to debt payments, mostly to pay off Camelback Ranch and Jobing.com Arena, home to the NHL’s Phoenix Coyotes.

Andnext year, debt payments will increase on Camelback Ranch, because of the payment schedule.

The city must also contend with a new $15 million bill to keep the Coyotes in town, under an agreement with IceArizona that the City Council signed last summer. The council expected to collect $6.8 million in arena revenue to help offset that cost, but the return could come up $1.4 million short this year.

But not all is doom and gloom for the city as it tries to lift itself out of financial strife. Licenses and permit-fee revenue are on the rise as more developers start projects. And sales-tax revenue increased by $4.4 million this year, Duensing said.

A grant will cover staff and equipment additions for the police and fire departments.