Avondale staff formally launched the fiscal 2027 budget process at the Nov. 3 City Council meeting, reviewing revenue assumptions, a multi‑year capital improvement program (CIP) and several large unfunded projects that will influence next year's budget and potential bond measures.

"We will be providing you an update on our capital improvement plan, our forecast and then we will look at our property tax levy and the property tax rate," Finance Director Renee Weatherless told the council. Projects Administrator James Melanese presented recent CIP "wins" and an expanded list of underfunded needs and new project requests.

Staff highlighted recently completed and under‑construction items including Fire Station 171, a canine training facility, the Civic Center Park, Old Town Phase 3 and Friendship Park improvements. They also detailed larger projects that are only partially funded or unfunded: PFAS water‑treatment work (staff estimated an $18 million Avondale share budgeted for financing), the reclamation‑plant expansion (a multi‑year project requiring substantial financing), a Southern Avondale fire/police substation (the total project estimate exceeded the currently programmed amount) and additional transportation and trail connections.

Weatherless presented revenue assumptions and risks. The forecast includes no structural changes to sales tax; it assumes the city will not yet recognize new data‑center revenues and includes a conservative contraction estimate. The presentation noted a $5 million loss tied to elimination of a residential rental sales tax category and projected that ongoing expenses will exceed ongoing revenues in future years absent policy changes or new revenue. Staff asked whether council wished to assume the routine 2% annual increase in the primary property‑tax levy; staff showed the first‑year revenue implication of that choice ($84,791) and the estimated impact to a median homeowner (about $1.90 annually under current valuations).

On CIP financing, staff flagged two bond propositions on the Nov. election: a parks/rec/library proposition and a public‑safety proposition (staff also discussed potential future revenue bond issuances for water and reclamation projects). "We will run debt issuances to match project cash needs and will not issue debt earlier than necessary," Weatherless said; staff said they would return with detailed financing proposals and timelines. Councilmembers asked staff to prepare a March 2026 budget packet that shows scenarios with and without the 2% levy to enable a final decision during the spring budget process.

Council discussion emphasized public safety, parks, water infrastructure and economic development as top priorities. Several councilmembers stressed the importance of advancing water projects (PFAS and plant expansion), and others urged caution about increasing the property levy because of household cost pressures. Staff said they would reconfigure the CIP prioritization and return with a draft budget and financing options in spring 2026.