City Council Work Session on 2026-04-23 4:00 PM — Maricopa, AZ
Date: 2026-04-23

City Hall
 City of Maricopa 39700 W. Civic Center
 Plaza
 Maricopa, AZ 85138
 Meeting Agenda Ph: (520) 568-9098
 Fx: (520) 568-9120
 City Council Work Session www.maricopa-az.gov


 Mayor Nancy Smith
 Vice-Mayor Vincent Manfredi
 Councilmember Eric Goettl
 Councilmember AnnaMarie Knorr
 Councilmember Amber Liermann
 Councilmember Bob Marsh
 Councilmember Henry Wade

Thursday, April 23, 2026 4:00 PM Council Chambers



1. Call to Order


2. Roll Call


3. Agenda Items


 3.1 WS 26-03 City Manager Benjamin Bitter will present the City Council with the City's preliminary
 draft fiscal year 2026-2027 operating budget as well as the Capital Improvement Plan
 budget.

4. Adjournment

 Note: This meeting is open to the public. All interested persons are welcome to
 attend. Council members of the City of Maricopa City Council will attend either in person
 or by telephonic conference or video communication. Supporting documents and staff
 reports, if any, which were furnished to the City Council with this agenda, are available for
 review on our website, www.maricopa-az.gov.

 Physical access to the meeting room will be available 15 minutes prior to the meeting
 start time.

 Persons with a disability may request a reasonable accommodation, such as a sign
 language interpreter, by contacting the City Clerk’s Office at 520-316-6970. Requests
 should be made as early as possible to allow time to arrange the accommodation.

 NOTICE TO PARENTS: Parents and legal guardians have the right to consent before
 the City of Maricopa makes a video or voice recording of a minor child A.R.S.
 §1-602.A.9. Maricopa City Council meetings are recorded and may be viewed on Channel
 20 and the Maricopa website. If you permit your child to participate in the Council
 meeting, a recording will be made. If your child is seated in the audience, your child may
 be recorded, but you may request that your child be seated in a designated area to avoid
 recording. Please submit your request to the City Clerk at (520) 316-6970.




City of Maricopa Page 1 Printed on 4/16/2026

City Hall
 City of Maricopa 39700 W. Civic Center
 Plaza
 Maricopa, AZ 85138
 Meeting Minutes - Final Ph: (520) 568-9098
 Fx: (520) 568-9120
 City Council Work Session www.maricopa-az.gov

 Mayor Nancy Smith
 Vice-Mayor Vincent Manfredi
 Councilmember Eric Goettl
 Councilmember AnnaMarie Knorr
 Councilmember Amber Liermann
 Councilmember Bob Marsh
 Councilmember Henry Wade

Thursday, April 23, 2026 4:00 PM Council Chambers



 1. Call to Order

 The meeting was called to order at 4:02 p.m.


 2. Roll Call
 Present, 7 - Councilmember Knorr, Councilmember Goettl, Mayor Smith,
 Councilmember Liermann, Councilmember Marsh, Councilmember Wade,
 and Vice Mayor Manfredi


 3. Agenda Items

 3.1 WS 26-03 City Manager Benjamin Bitter will present the City Council with the City's preliminary
 draft fiscal year 2026-2027 operating budget as well as the Capital Improvement Plan
 budget.

 City Manager Benjamin Bitter opened the presentation by expressing gratitude to the
 finance team for their considerable work in assembling the budget documents, noting
 that even the 500-page budget book represents a simplification of the detailed
 financial data the finance team manages daily.

 Mr. Kozlowski began the presentation by encouraging Council to ask questions
 throughout the presentation and outlined the upcoming steps in the budget process: a
 tentative budget approval was scheduled for the May 19 City Council meeting, at which
 point no further expenditure or revenue changes could be made. He shared that the
 tentative budget forms would then be posted to the city website within two days. Next,
 Mr. Kozlowski shared that final budget adoption was set for the June 16 Council
 meeting, again preceded by a public meeting. Mr. Kozlowski also provided an overview
 of the budget's availability on the city website, noting that the site contains the draft
 budget document, department-level expenditure detail, an organizational chart with full
 headcount, the CIP project list, strategic priorities, and all new funding requests.

 Mr. Kozlowski noted that FY 2025 actual general fund revenues were approximately
 $102.08 million, with a projected decline to approximately $97.18 million by the end of
 FY 2026, reflecting the revenue plateau that had been discussed at futures planning.
 For FY 2027, he shared that revenues were projected to recover to approximately $105
 million, excluding commuting corridors funds. He added that the city's revenue
 structure comprised of intergovernmental/state-shared revenues, local sales taxes,


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City Council Work Session Meeting Minutes - Final April 23, 2026

 licenses and fees, and property taxes. He reported that intergovernmental revenues
 had been essentially flat for three years, representing a significant fiscal challenge,
 while local sales tax growth was projected to be modest and organic. Next, Mr.
 Kozlowski added that licenses, fees, and permits revenue had declined from
 approximately $18 million to a pace of approximately $14–14.5 million, reflecting a
 slower construction environment. Lastly, he shared that property tax revenues were
 presented separately, with any increase attributable solely to new construction rather
 than assessed value growth on existing properties.

 Mr. Kozlowski presented a multi-year trend showing general fund revenues plateauing
 since FY 2023 at approximately $91 million after years of growth, while expenditures
 have continued to rise from $46 million in FY 2021 to a proposed $85.8 million in FY
 2027. He clarified that the budgeted figure represents the maximum authorized
 amount, not a projection of actual spending, and referenced a visual showing that the
 city has historically spent between 77 and 89 percent of its approved budget.

 Mr. Kozlowski presented a proposed reduction of the primary property tax rate from
 3.4773 to 3.3279, which is a reduction of approximately 15 basis points, which would
 return approximately $824,000 to residents. He added that the only projected increase
 in property tax revenue, from $17.76 million to $18.3 million, was attributed to new
 construction. Next, Mr. Kozlowski shared that corresponding reduction to the
 secondary property tax rate for the Copper Sky general obligation bonds was also
 proposed, from 0.59 to 0.55, representing an additional savings of approximately 4.5
 basis points. Mr. Kozlowski highlighted that the combined primary and secondary rates
 have declined by more than 100 basis points since FY 2022 and encouraged Council
 to take pride in that record of tax reduction. He added that the city's general fund
 balance as a percentage of expenditures is currently projected at 39 percent, which,
 while 9 percent above the 30 percent policy minimum, is the lowest figure presented to
 Council in recent budget cycles. He attributed this in part to the city's investment in
 land holdings, which he said would eventually return value to the fund balance.

 Mr. Kozlowski detailed the proposed budget of $85.8 million, which is a 12.3 percent
 year-over-year increase. He added that the recurring personnel costs of $53.74 million
 were proposed to increase to $60.7 million, reflecting MOU-agreed union increases, a
 proposed 4 percent merit increase for non-MOU staff, a 1.2 percent adjustment to pay
 ranges based on the Phoenix-area annual inflation rate, approximately $1.07 million in
 increased insurance and benefit costs, and $4 million in new personnel requests.

 Councilmember Knorr sought clarification on whether the merit and pay range
 increases were additive. Mr. Kozlowski confirmed that the 4 percent merit increase and
 the 1.2 percent pay range adjustment were separate components. Operating
 expenditures were proposed to increase from $22.59 million to $25.07 million. Mr.
 Kozlowski added that 47 percent of the total operating budget is dedicated to public
 safety encompassing the City Magistrate, Police Department, and Fire Department and
 that personnel costs represent approximately 71 percent of the total operating budget,
 a figure he described as leaner than comparable cities, where that figure can reach 80
 to 90 percent.

 Next, Mr. Kozlowski shared that new personnel requests were also detailed, with the
 majority directed toward public safety, including 12 firefighters and EMS specialists, 2
 new police lieutenants, 6 new police officers, and a new dispatcher. Additional requests
 were noted in Public Works, particularly for fleet, a portion of which was described as
 supporting public safety operations. Mr. Kozlowski clarified that shared-service
 departments such as Information Technology and Public Works may carry budget


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City Council Work Session Meeting Minutes - Final April 23, 2026

 increases that serve other departments, not solely their own.

 Councilmember Knorr inquired about the absence of new requests from the Office of
 Economic Opportunity, and City Manager Bitter confirmed that sufficient capacity had
 been maintained in that department to accommodate anticipated needs arising from
 the forthcoming economic development strategic plan.

 Mr. Kozlowski then presented the hotel/bed tax policy, which he said is reviewed and
 approved as part of the annual budget process. He added that 91 percent of bed tax
 revenues are dedicated to tourism projects, which includes the Wild West Music Fest
 and 9 percent to arts grants. Next, Mr. Kozlowski shared that the proposed FY 2027
 arts grants budget was $22,500 and the tourism project budget was $225,000.

 Councilmember Knorr raised a concern about whether the policy language locked the
 city into funding specifically the Wild West Music Fest given the expiration of the
 current three-year contract. City Manager Bitter and Mr. Kozlowski both clarified that
 the policy could be amended by Council majority at any point during the fiscal year,
 and that absent a signed contract, the funds could be redirected. Councilmember
 Knorr confirmed she wished to preserve that flexibility.

 Next, Mr. Kozlowski reported that the Capital Improvement Plan (CIP) had been
 discussed in depth at the February workshop and that this portion of the presentation
 would focus on updates since that time. He shared that the proposed FY 2026–2027
 CIP budget totaled $181.2 million, of which 55 percent was dedicated to streets
 infrastructure, 22 percent to city parks ($22.5 million), 12 percent to community
 improvements, 9 percent to economic development, 5 percent to public safety, and 4
 percent to new building construction. He identified the two primary new building
 construction projects as the continuation of fieldhouse funding and the remodel of the
 former police department building into a one-stop shop for economic development and
 development services.

 Councilmember Wade asked whether these projects would generate employment
 opportunities, which Mr. Kozlowski confirmed that additional staffing would be required
 to operate the fieldhouse and that the parks and recreation team had developed a
 staffing plan.

 Mayor Smith raised the community and commuting corridors as a priority, referencing
 her interest in projects including the Green Road Loop, East Road Loop, Sonoran
 Desert Parkway Phase 2, and State Route 238. City Manager Bitter confirmed that
 several of these projects appear in the streets and transportation infrastructure section
 of the CIP, and noted that some improvements to the industrial triangle area would be
 funded by private development partners rather than the city budget. Mayor Smith also
 highlighted CIP investments in sidewalk improvements near Palo Brea and the
 Maricopa-Casa Grande Highway as relevant to ongoing community discussions around
 pedestrian infrastructure and e-bikes.

 Mr. Kozlowski provided an update on the commuting corridors fund, directing Council
 to the Building Better Roads website where revenues and expenditures are tracked
 publicly. He reported that the city's revenue bond transaction for the payment to
 Arizona Department of Transportation for the State Route 347 project was expected to
 close within days. He added that the favorable market outcome: by timing the bond
 issuance strategically, the city saved approximately 10 basis points and by applying an
 accelerated principal payment structure, approximately $5 million in interest savings
 were secured for future road projects and due to a 6.5-times oversubscription of the


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City Council Work Session Meeting Minutes - Final April 23, 2026

 $30 million bond, the city negotiated an effective interest rate of approximately 3.25
 percent—50 basis points below the prevailing federal funds rate.

 Next, Mr. Kozlowski shared a list of changes since the February workshop. He
 reported that the majority of changes were described as funding source revisions rather
 than project scope or timeline changes. He added that shifting portions of the State
 Route 238 project funding from the general fund to the commuting corridors fund and
 recognizing a cash-in-lieu payment from Moonlight Ridge; funding the Sonoran Desert
 Parkway Phase 2 from the commuting corridors fund; using an existing revenue bond
 to fund the former PD building remodel; recognizing a federal grant of $867,000 for
 ambulance purchases; moving Bowlin Road and the John Wayne Parkway Phase 1
 pedestrian access project from FY 2027 to FY 2028; moving the Rancho El Dorado
 chip seal from FY 2027 to FY 2028 as a fiscal management decision; delaying the
 design phase of future Fire Station 573 from FY 2027 to FY 2028 to align with
 concurrent truck delivery and staffing timelines and moving the parking lot pavement
 preservation project from the operating budget into the CIP. Mr. Kozlowski explained
 that the shift in funding sources was necessary to bring the general fund balance
 percentage from what had been near the 30 percent policy floor up to the current
 projected 39 percent.

 Councilmember Goettl raised the question of the long-term sustainability of the primary
 property tax rate reductions given growing public safety expenditure needs. Mr.
 Kozlowski acknowledged the growing gap between public safety operating costs and
 primary property tax revenues, noting that the primary property tax covers less than 33
 percent of total public safety costs and does not fully cover the fire department's
 operating budget alone. He indicated that a detailed discussion would be brought to
 futures planning the following year regarding comparable cities, appropriate rate levels,
 and the potential use of general obligation bonds. He cautioned against the pattern
 seen in other cities of maintaining a zero or very low primary property tax rate while
 accumulating general obligation bond debt with no resident statutory protections on the
 secondary tax rate. City Manager Bitter reinforced the point that property tax was
 originally established as stable funding for public safety, and that as the city continues
 to grow and open new fire stations.

 Councilmember Liermann expressed enthusiasm for several budget items including
 the police firearms indoor shooting range, the 8 trail and sidewalk improvement
 projects, the performing arts center in the 10-year CIP plan, and the addition of pop-up
 kiosks for small business owners. She noted her hope to see a fire training facility
 included in the following year's budget.

 Councilmember Marsh highlighted the importance of continued investment in the
 Bartlett Dam/water supply project and noted the inclusion of a senior center in the
 10-year CIP plan.

 Councilmember Knorr highlighted the arts grants increase, John Wayne Parkway
 signal upgrades, commuting corridors investments, funding for a citizen survey, the 12
 new firefighters, 6 new police officers, and 2 new lieutenants as priorities she was
 particularly pleased to see addressed. She also raised a question about a decline in
 the transit budget. Mr. Kozlowski indicated he would follow up with specifics but stated
 that no operational reductions, such as route changes or headcount reductions had
 been made and that the transit study was ongoing.

 Councilmember Wade raised the issue of public communication around the budget,
 asking whether the city had adequate processes for helping residents understand what


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City Council Work Session Meeting Minutes - Final April 23, 2026

 the budget means to them directly. Mr. Kozlowski responded that simplicity is his
 guiding principle in presenting budget information and that the communications team
 has increasingly pursued proactive outreach including videos and published materials.
 City Manager Bitter noted the recent full-page advertisement in Maricopa magazine
 explaining the budget process and acknowledged that the finance and communications
 teams are actively exploring additional channels for public engagement. He affirmed
 that the goal is to make budget information accessible and digestible without
 obscuring the substance.

 Mayor Smith asked whether the communications department had the budget resources
 needed to sustain and expand its outreach efforts. Mr. Kozlowski confirmed that no
 communications requests had been denied during the budget process. Mayor Smith
 also confirmed with Mr. Kozlowski that partnership funds budgeted in prior years
 remain available for potential teen programming, arts, senior services, or other needs
 should Request for Proposals processes not yield suitable results.


 4. Adjournment
 This meeting was adjourned at 5:37 p.m.


 Certification of Minutes

 I herby certify that the following minutes are a true and correct copy of the
 minutes of the work session of the City Council of Maricopa, Arizona, held on
 the 23rd day of April, 2026. I further certify that the meeting was duly called
 and held and that a quorum was present.

 Dated this 5th day of May 2026.

 _______________________
 Vanessa Bueras
 City Clerk




City of Maricopa Page 5