West Valley City Unveils Bold $1.2 Billion Budget Plan

By Matthew Holloway |

Goodyear’s City Council recently approved a $1.2 billion budget for 2026, maintaining the same amount proposed earlier this year. This budget marks a significant annual increase of over $304 million, translating to a 25.3% rise, despite no changes to the current property tax or sales tax rates.

Mayor Joe Pizzillo discussed the challenges posed by the elimination of the city transaction privilege tax (TPT), set to take effect on January 1, 2025. This change arises from Republican tax reforms implemented in the state legislature, which saw pushback from various Arizona municipalities.

“Many cities in the valley were forced to raise taxes to compensate for the anticipated $234 million loss, which could double over the next decade,” Pizzillo noted. “In contrast, Goodyear has opted not to increase its sales tax or property taxes.”

Despite a recorded increase of $303,271 in Goodyear’s Truth in Taxation notice, the overall property tax rate will remain stable. This stability was achieved by increasing the primary property tax rate, capped at a 2% hike, while decreasing the secondary property tax, maintaining an effective rate of $1.74 per $100 assessed property valuation.

Lee Grafstrom, a tax policy expert with Arizona Cities and Towns, indicated that municipalities face a dilemma. “We’re not reducing services that citizens need, yet we have considerably less funding,” he explained, emphasizing the struggle to sustain necessary services amid rising costs.

Finance Manager Ryan Bittle addressed common concerns regarding property tax bills, stating that increased bills may stem from rising property values rather than changes in tax rates. “That’s a typical question; the value of your property likely increased this year,” he clarified.

Bittle elaborated that adjustments aim to provide more stable revenue for Goodyear’s general fund. He explained that while the secondary tax rate is designated for debt servicing, the primary property tax form supplies roughly 8% of ongoing general fund revenues.

Most property tax payments from Goodyear residents fund educational institutions, with 66% of collected taxes allocated to schools. Bittle stressed that the local council has limited influence over these allocations, with only 15 cents of every dollar collected going to city services.

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.