2021-22 Phoenix Summary Budget Setting a path forward for a sustainable Phoenix PHOENIX 2021-2022 S U M M A RY BUDGET Printed on Recycled Paper 150 August 2021 67TH AVE. 75TH AVE. JENNY LIN RD. CAREFREE HWY. DOVE VALLEY 56TH ST. 40TH ST. 67TH AVE. P. A. C. Ann O’Brien 602-262-7444 council.district.1@phoenix.gov 64TH ST. NEW R IV ER CLOUD RD. 7TH AVE. JOY RANCH 19TH AVE. ANTHEM WAY 43RD AVE. JOY RANCH RD. CIRCLE MOUNTAIN RD. RIV NEW ER RD . Mayor Kate Gallego 602-262-7111 mayor.gallego@phoenix.gov City of Phoenix Council Members and District Boundaries WANDER LN. JOMAX C. A JOMAX Jim Waring 602-262-7445 council.district.2 @phoenix.gov .P. 7TH ST. PINNACLE PEAK BELL SCOTTSDALE RD. Debra Stark 602-262-7441 council.district.3@phoenix.gov UNION HILLS CAVE CREEK 51ST AVE. 19TH AVE. BEARDSLEY GREENWAY 56TH ST. THUNDERBIRD 64TH ST. TATUM 64TH ST. SR51 MCDOWELL Sal DiCiccio 602-262-7491 council.district.6 @phoenix.gov OAK McDOWELL 56TH ST. I-10 OSBORN 24TH ST. THOMAS GLENROSA 3RD ST. VAN BUREN BUCKEYE SALT RIVER 48TH ST. VAN BUREN MISSOURI 7TH ST. 7TH AVE. 27TH AVE. 43RD AVE. 51ST AVE. 71ST AVE. McDONALD BETHANY HOME 19TH AVE. BROADWAY 7TH ST. Betty Guardado 602-262-7446 council.district.5@phoenix.gov I-10 107TH AVE. BUCKEYE 67TH AVE. McDOWELL OSBORN 75TH AVE. THOMAS 83RD AVE. INDIAN SCHOOL CAMELBACK 35TH AVE. 99TH AVE. EL MIRAGE BETHANY HOME MOUNTAIN VIEW NORTHERN 40TH ST. NORTHERN Laura Pastor 602-262-7447 council.district.4@phoenix.gov BUTLER 15TH AVE. BUTLER DUNLAP CACTUS SOUTHERN N A N IO DI T I N RV A SE RE Carlos Garcia 602-262-7493 council.district.8@phoenix.gov ELLIOT ESTRELLA RAY I-10 51ST AVE. 59TH AVE. Yassamin Ansari 602-262-7492 council.district.7@phoenix.gov DOBBINS CENTRAL BASELINE BASELINE PECOS iii April 2021 CITY OF PHOENIX Mayor and City Council Management Staff Kate Gallego Mayor Ed Zuercher City Manager Carlos Garcia Vice Mayor District 8 Jeff Barton Assistant City Manager Ann O’Brien District 1 Jim Waring District 2 Debra Stark District 3 Laura Pastor District 4 Betty Guardado District 5 Sal DiCiccio District 6 Yassamin Ansari District 7 Troy Hayes Water Services Director Kara Kalkbrenner Fire Chief Kini Knudson Street Transportation Director Inger Erickson Deputy City Manager Donald R. Logan Equal Opportunity Director Toni Maccarone Deputy City Manager Christine Mackay Community and Economic Development Director Gina Montes Deputy City Manager Chad Makovsky Director of Aviation Services Mario Paniagua Deputy City Manager Titus Mathew Housing Director Karen Peters Deputy City Manager Frank McCune Government Relations Director Ginger Spencer Deputy City Manager Cris Meyer City Attorney Department Heads Jesús Sapien Public Transit Director Cynthia Aguilar Parks and Recreation Director L`xnqÔrNeÝbd Lisa Fernandez Chief of Staff Denise Archibald City Clerk Felissa Washington Smith Interim Public Works Director Lori Bays Human Resources Director BhsxBntmbhkNeÝbd Sina Matthes Council Chief of Staff Spencer Self Neighborhood Services Director John Chan Phoenix Convention Center Director Marchelle F. Franklin Human Services Director Kathleen Gitkin $FWLQJ&KLHI)LQDQFLDO2IͤFHU Steen Hambric $FWLQJ&KLHI,QIRUPDWLRQ2IͤFHU Rita Hamilton City Librarian Alan J. Stephenson Planning and Development Director Ross Tate City Auditor Jeri L. Williams Police Chief Amber Williamson Budget and Research Director Dan Wilson &RPPXQLFDWLRQV2IͤFH'LUHFWRU Chief Presiding Judge B. Don Taylor III iv CITY OF PHOENIX ORGANIZATIONAL CHART PUBLIC MAYOR AND CITY COUNCIL City Auditor Communications Office MUNICIPAL COURT CITY MANAGER Ed Zuercher Finance Law Office of Government Relations ASSISTANT CITY MANAGER Jeff Barton Karen Peters DEPUTY CITY MANAGER Inger Erickson DEPUTY CITY MANAGER Gina Montes DEPUTY CITY MANAGER Ginger Spencer DEPUTY CITY MANAGER Toni Maccarone DEPUTY CITY MANAGER Mario Paniagua DEPUTY CITY MANAGER Budget and Research Environmental Programs Arts & Culture Housing Community and Economic Dev. City Clerk Aviation Fire Public Works Library Human Services Planning and Development COPERS / Retirement Public Transit Police Sustainability Parks and Recreation Neighborhood Services IDA / PCDIC Equal Opportunity Light Rail Homeland Security & Emergency Management Water Services Phoenix Convention Center Strategic Initiatives State Land Human Resources Street Transportation COVID Response/ ARPA Water Strategy Youth & Education Homelessness/ Affordable Housing Strategies West Phoenix Revitalization Information Technology Advance Phoenix Court Liaison Citywide Volunteer Program Community Assistance Program 311 Project Freeway Coordination Public Defender Liaison Major Events City Council Mtg. Function Infrastructure Diversity, Equity & Inclusion Office Heat Response and Mitigation PERB Liaison v vi 2021-22 SUMMARY BUDGET TABLE OF CONTENTS Transportation Budget Document Overview ................................................ 1 Street Transportation ........................................................124 Aviation ..............................................................................126 Public Transit ....................................................................127 Distinguished Budget Presentation Award ........................... 3 City Manager's Budget Message ........................................... 5 Strategic Plannning And Community Involvement .............. 9 Community Development Phoenix Strategic Plan..........................................................11 BnlltmhsxOqnÝkd@mcSqdmcr ..........................................33 Planning and Development ..............................................130 Housing..............................................................................132 Community and Economic Development.........................133 Neighborhood Services.....................................................134 BUDGET OVERVIEW Community Enrichment Strategic Plan 2020-21 Major Accomplishments ............... 17 Our Commitment To Excellence ........................................23 Parks and Recreation ........................................................138 Library ................................................................................140 Phoenix Convention Center ..............................................141 Human Services ................................................................142 3KRHQL[2IͤFHRI$UWVDQG&XOWXUH ...................................144 Resource and Expenditure Summary .................................37 Financial Organizational Chart – Operating Budget ......... 44 Services to the Community ................................................47 Budget Process, Council Review and Input, Public Hearings and Budget Adoption ......................................65 General Budget and Financial Policies ..............................71 Environmental Services Water Services...................................................................146 Public Works - Solid Waste Management .......................147 Public Works - Support Services......................................148 Environmental Programs ..................................................149 2IͤFHRI6XVWDLQDELOLW\ ......................................................150 REVENUE OVERVIEW Revenue Estimates..............................................................79 General Funds .....................................................................81 Special Revenue Funds .......................................................91 Enterprise Funds .................................................................96 Contingencies ....................................................................151 COVID-19 Funding Summary .............................................153 DEPARTMENT PROGRAM SUMMARIES Debt Service ......................................................................157 General Government Mayor .................................................................................100 City Council........................................................................100 City Manager .....................................................................101 Regional Wireless Cooperative .........................................101 Government Relations ......................................................102 &RPPXQLFDWLRQV2IͤFH ....................................................102 City Auditor ........................................................................103 Equal Opportunity .............................................................104 Human Resources .............................................................105 Phoenix Employment Relations Board.............................106 Retirement Systems ..........................................................106 Law.....................................................................................107 Information Technology....................................................108 City Clerk ............................................................................109 Finance ..............................................................................110 Budget and Research ........................................................111 CAPITAL IMPROVEMENT PROGRAM Overview of Capital Improvement Program Process ......161 Capital Improvement Program Highlights .......................165 Financial Organizational Chart – 2021-22 Capital Improvement Program ....................175 Operating Costs for New Capital Facilities ......................177 SUMMARY SCHEDULES 1. Resources and Expenditures by Fund 2019-20 Actual ...........................................................180 2020-21 Estimate .......................................................181 2021-22 Budget ..........................................................182 2. Revenues by Major Source ...........................................183 3. Operating Expenditures by Department.......................185 4. Operating Expenditures by Department by Source of Funds .........................................................187 5. Debt Service Expenditures by Source and Use of Funds and Type of Expenditure.................................189 6. Capital Improvement Program Financed by Operating Funds ........................................................191 7. Interfund Transfers to the General Fund......................192 8. Positions by Department ..............................................194 Public Safety Police .................................................................................114 Fire .....................................................................................116 Homeland Security and Emergency Management ..........117 Criminal Justice Municipal Court .................................................................120 Public Defender .................................................................121 GLOSSARY ........................................................................ 198 vii Table of Contents viii Table of Contents BUDGET DOCUMENT OVERVIEW 2021-22 BUDGET OVERVIEW This overview outlines the 2021-22 Annual Budget. This budget document can be accessed at phoenix.gov/budget, or copies of the document are available by contacting the City of Phoenix Budget and Research Department at 602-262-4800, TTY: use 7-1-1. To request this in alternate formats (large print, braille, audio cassette or compact disc), please contact the Budget and Research Department. The budget overview provides a description of the City’s budget process as well as the major assumptions included in the preparation of the 2021-22 Annual Budget. This section includes a broad overview of the resources and expenditures included in the budget. Also included is a historical look at Phoenix’s community services, an RYHUYLHZRIVLJQLͤFDQWEXGJHWDU\DQGͤQDQFLDOSROLFLHV including general legal requirements and basis of accounting, and descriptions of City funds. The summary budget contains a narrative description of Phoenix programs and services planned for 2021-22. Also included is a narrative description of all revenue sources DQGDGHVFULSWLRQRIPDMRUͤQDQFLDOSROLFLHV 2021-22 REVENUE OVERVIEW The detail budget presents extensive statistical data (including multiyear comparisons) for each City department and fund. The statistical data includes VWDIͤQJDOORFDWLRQVDQGDGHWDLOHGUHSRUWLQJRISODQQHG expenditures. This section provides an extensive narrative describing the City’s revenue estimates. The section is divided into three categories: general funds, special revenue funds and enterprise funds. DEPARTMENT PROGRAM SUMMARIES Finally, the 2021-26 Capital Improvement Program provides Phoenix’s planned construction program by project and detailed sources of funds. The department program summaries section provides total funding and positions, program goals, major performance measures and service trends, and any changes in service for each City department. Also included in this section is a discussion of the City’s debt management policies and the contingency fund. A more detailed description of the 2021-22 Phoenix summary budget follows. CITY MANAGER’S BUDGET MESSAGE CAPITAL IMPROVEMENT PROGRAM The City Manager’s budget message provides an executive summary of the City Manager’s priorities and outlook for WKHXSFRPLQJͤVFDO\HDU7KHVHSULRULWLHVUHIOHFWPDQ\ months of working with the Mayor and City Council, the community and City staff. This section provides a description of the Capital Improvement Program process and an overview of the 2021-26 Capital Improvement Program. SCHEDULES PHOENIX STRATEGIC PLAN The schedules provide a general statistical overview of the budget. Schedule 1 provides estimated beginning and ending balances for each major fund group. The remaining VFKHGXOHVVXPPDUL]HVWDIͤQJFRPSOHPHQWVDQGHVWLPDWHG resources and expenditures. This section provides the City’s mission statement, complete Phoenix strategic plan, strategic plan goals, and strategic plan major accomplishments. OUR COMMITMENT TO EXCELLENCE GLOSSARY This section provides an overview of the City’s various programs that contribute to our overall pursuit of excellence. Included is a description of a few of the awards and recognitions received by employees this year, results of the employee suggestion program and winners of the Employee Excellence Awards. 'HͤQLWLRQVRIWKHWHUPVXVHGWKURXJKRXWWKHEXGJHW document are presented in the glossary. ,I\RXKDYHTXHVWLRQVQHHGIXUWKHUFODULͤFDWLRQRID concept or term, or desire more detailed information about this document, please contact the Budget and Research Department at 602-262-4800. COMMUNITY PROFILE AND TRENDS 7KLVVHFWLRQLQFOXGHVNH\GHPRJUDSKLFͤQDQFLDODQG LQIUDVWUXFWXUHSURͤOHPHDVXUHV(VWLPDWHVRUSURMHFWLRQV are provided for 2020-21 and 2021-22 as well as actual results for recent and historical periods. 1 Table of Contents 2 Table of Contents DISTINGUISHED BUDGET PRESENTATION AWARD ÿÿÿ 0123145612789 69583ÿ 82843314 9 9:;<;=>;?ÿ>@ ABC#ÿDEÿ9FDGHBI OPBQDHR )*+ÿ-./ÿ)01234ÿ5/3+ÿ6/7088087ÿ !"#ÿ%&ÿ'('( JK/2L-0M/ÿN0+/2-*+ 7KH*RYHUQPHQW)LQDQFH2IͤFHUV Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the City of Phoenix, Arizona IRULWVDQQXDOEXGJHWIRUWKHͤVFDO year beginning July 1, 2020. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations JXLGHDVDͤQDQFLDOSODQDQGDVD communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. 3 Table of Contents 4 Table of Contents CITY MANAGER'S BUDGET MESSAGE hearings were held from April 2, 2021 to April 20, 2021. The proposed Trial Budget additions were also made available on the City’s website and in the new interactive FundPHX tool available at phoenix.gov/budget. Residents also communicated priorities via email at budget.research@phoenix.gov and by calling 602 262-4800. In total, approximately 1,500 individual comments were received on the proposed budget. The largest number of comments were about police, new community parks, expansion of the Community Assistance Program, homelessness and affordable housing, heat mitigation and climate initiatives, street projects, funding for the arts community, transit services and workforce development. Consistent themes of the input included: • Preserve existing services provided by the City. • Requests for community input on the expansion of the Community Assistance Program to better serve residents contacting 911 experiencing mental and behavioral health issues. Ed Zuercher City Manager ̽ 0RUHDFFRXQWDELOLW\RISROLFHRIͤFHUVDQGUHGXFHG funding for the Police Department. TO THE HONORABLE MAYOR AND CITY COUNCIL: • New parks in the fast growing southwest area of the City. This letter transmits the balanced 2021-22 City of Phoenix Budget required by City Charter. • Support for initiatives on heat mitigation and climate resiliency. The 2021-22 City of Phoenix Budget represents a positive path forward and reflects City Council and community priorities to ensure our city remains an attractive place to live and work for residents. Throughout the COVID-19 pandemic the City Council demonstrated strong leadership, taking early actions to preserve resources, resulting in a budget which will provide fair compensation increases to our employees, enhanced programs and services for our community, and respond to the important challenges we face as the fastest growing city in the United States. This path IRUZDUGLQFOXGHVDQLQQRYDWLYH2IͤFHRI+HDW5HVSRQVH and Mitigation, enhanced water conservation efforts, and an expanded Community Assistance Program to support the Police and community. • Increased funding to address the impacts of homelessness and a lack of affordable housing. • Increased funding for street maintenance and repair. • Additional transit services in west Phoenix. • Increased funding for Arts & Culture, Historic Preservation and Library services. • Continuation of the PHXBizConnect by HUUB platform. • Support for increased funding for Police and Fire. • Additional resources for residents challenged with FRQWLQXHGͤQancial hardship due to the COVID-19 pandemic. The City of Phoenix budget process encourages community participation to guide decision making. In order to facilitate feedback while keeping COVID-19 safety measures in place, a total of 14 virtual budget Based on resident feedback, it is clear there is a demand for more City services, not less. Public participation showed residents have clear opinions, some of which 5 Table of Contents are contradictory, about the services we deliver every day to the community. While not all input could be directly accommodated into the budget, the feedback is extremely important to set budget and policy discussions for the future. Many additions in this year’s budget reflect input received over the past several years. General Fund Additions: The 2021-22 budget preserves existing City programs and will positively impact our employees and the community. The budget makes VLJQLͤFDQWLQYHVWPHQWVLQRXUHPSOR\HHVE\DOORFDWLQJ 76 percent, or $118.3 million of the available GF surplus of $154.8 million, to provide much deserved compensation increases. Our employees have demonstrated their commitment to the community by ensuring City services continued to be delivered throughout the pandemic. I would like to acknowledge and thank City staff in Budget & Research, City Clerk, Information Technology 6HUYLFHVDQGWKH&RPPXQLFDWLRQV2IͤFHIRUWKHLU work on development, advertisement and facilitation of community engagement in the development of the 2021-22 budget. The remaining $36.5 million includes additions designed to accomplish several important City Council policy goals. Primary among these additions are resources for public safety reform and responsiveness including: adding a Victim Advocate to assist family members who have experienced use of force incidents, resources to provide quicker turnaround for public records requests, improved data reporting and analytics to support accurate statistics and to facilitate early intervention for possible adverse sworn police behaviors. These additions are designed to improve accountability and trust between the Phoenix Police Department and the FRPPXQLW\7KHEXGJHWDOVRLQFOXGHVDVLJQLͤFDQW investment of $15 million to expand the existing Community Assistance Program (CAP) to provide crisis response services for residents experiencing mental and behavioral health issues. This investment will achieve several goals including: meeting the demand for services, provide an appropriate response with civilian staff trained in crisis care and mental and behavioral health, reduce response times, and facilitate a connection to care for ongoing counseling and support services with community partners. Another outcome ZLOOEHWRUHWXUQVZRUQSHUVRQQHOWRWKHͤHOGWRUHGXFH response times for public safety related calls for service. Overview of 2021-22 Budget General Fund: The 2021-22 General Fund (GF) budget is $1.608 billion. This is a $182 million or 12.8 percent increase from the adopted 2020-21 budget of $1.426 billion. The increase accounts for strategic use of the $154.8 million surplus and provides compensation increases for our employees, and enhancements to programs and services. Expenditure increases also include higher costs for capital pay-as-you-go SURMHFWVHPSOR\HHSHQVLRQEHQHͤWVDQGLQFUHDVLQJWKH contingency fund to maintain 4 percent of GF operating expenditures. Revenue and Resources: Projected GF revenue in 2021-22 is estimated to be $1.356 billion and represents an increase of $33.0 million or 2.5 percent over the 2020-21 Revised Estimate of $1.323 billion, excluding one-time revenues of $109.2 million from the Council approved transfer from the Coronavirus Relief Fund to offset public safety salaries as permitted by the Federal guidelines. Growth in 2021-22 reflects anticipated increases in city and state sales taxes and state-shared vehicle license taxes as the local economy continues to improve from the Coronavirus pandemic. This growth is offset by estimated declines in state-shared income tax revenues, which is based on collections from two years prior, and is impacted E\WKH6WDWH VDFWLRQWRGHOD\LQFRPHWD[ͤOLQJVLQWKH last quarter of 2019-20 in response to the pandemic. Additionally, the City's proposed 2021-22 combined property tax rate of $2.12 is one cent lower than the 2020-21 combined rate of $2.13. The primary property tax rate used to support all GF programs and services remains unchanged at $1.31, while the secondary property tax rate used to pay voter approved general obligation debt service decreases from $0.82 to $0.81. General Fund additions also include several items in the areas of building community and responding to growth, affordable housing and homelessness, climate change and heat readiness, COVID response and resiliency and administrative accountability. Highlights of these categories include: adding three new parks in the southwest region of Phoenix, providing staff to operate the new Cesar Chavez Community Center, expanding the successful Adaptive Recreation program to offer yearround inclusive recreation opportunities for residents with disabilities and college readiness programs for our youth provided by College Depot. Funding is also included for art grants, historic preservation, support for veterans, funding for FastTrack Cities initiatives to provide education and treatment for residents with HIV/AIDS, staff to work with small businesses to revitalize retail development in the west part of the City, and new positions to support Council and community initiated projects like the Rio Reimagined Plan to develop an economically viable and diverse mix of housing and businesses along the banks of the Salt River. Finally, including revenue along with the estimated beginning fund balance of approximately $244.7 million (largely made up of one-time funds from the Coronavirus Relief Fund), and fund transfers and recoveries estimated at $7.1 million, total 2021-22 GF resources are estimated to be $1.608 billion. 6 Table of Contents All the City's budget information - including complete program information and the City Manager's Trial Budget details - is available at phoenix.gov/budget. Resources are also included to achieve the goals of the Council adopted Housing Phoenix Plan and Homeless Strategies Plan to provide assistance to individuals experiencing homelessness and to expand the number of affordable housing units in Phoenix. To help mitigate WKHH[WUHPHKHDWLQ3KRHQL[DQHZ2IͤFHRI+HDW Response and Mitigation will be created to identify strategies to help our most vulnerable populations who struggle every summer to survive rising valley WHPSHUDWXUHV7KLVLVDͤUVWLQWKHQDWLRQ)XQGLQJ is included to focus on climate change and includes resources to conduct greenhouse gas emission inventories and to plant more trees around the City to achieve the Council adopted Tree and Shade Master Plan goal of doubling the tree canopy by 2050. Looking Ahead The City and its residents continue to experience unprecedented stresses from COVID-19. I am committed to working with you and our community to continue to safely and responsibly navigate the pandemic, including identifying strategic use of American Rescue Plan Act funds to help residents who continue to experience ͤQDQFLDOKDUGVKLS8QGHUWKH&LW\&RXQFLO̵VVWURQJ leadership we have navigated this crisis successfully by taking a cautious and steady approach to how we utilize taxpayer resources and adopt spending commitments to keep the budget solvent and balanced. Additionally, funding is included to continue innovative services developed due to COVID-19 such as providing DGGLWLRQDO:LͤVHUYLFHVWRWKHFRPPXQLW\IXQGVWR continue contracts with public health consultants, an additional position to continue the Emergency Food Action program to achieve the goals of the Council approved 2025 Food Action Plan. Looking ahead, our future is full of opportunity. Phoenix is one of the fastest growing and most desirable locations in WKHFRXQWU\+RZHYHUZHFRQWLQXHWRIDFHͤVFDOFKDOOHQJHV including economic uncertainty, increasing costs for HPSOR\HHSHQVLRQEHQHͤWVDJLQJFLW\DVVHWVLQFOXGLQJ fleet and City facilities, the need for new City infrastructure to keep pace with population growth, increased costs for implementing and maintaining technology to ensure our City systems remain functional and stay protected from cyber security threats, resources to retain and attract a highly skilled workforce, continued demands for more City services, potential reductions to state shared revenues and new unfunded state or federal mandates. The good news is under your leadership we are an organization that has proven to be responsible stewards of public resources. We are committed to work through challenges and identify solutions so we can continue to serve the citizens of Phoenix. This budget is a reflection of that unwavering commitment. Finally, new administrative positions are added to FUHDWHDQ2IͤFHRI'LYHUVLW\(TXLW\DQG,QFOXVLRQWR ensure Phoenix remains a place to live and work which promotes equitable and respectful treatment of all people. Funding is also added to restore positions for Information Technology, Human Resources and to properly maintain the City’s fleet of vehicles. Other Funds: Important and critical services to the community are provided through non-General Fund resources. This includes Special Revenue funds like voter-approved Public Safety and Transit taxes and the Arizona Highway User Revenue fund, and Enterprise Funds like Aviation, Phoenix Convention Center, Solid Waste, Water and Wastewater. Additions to the 2021-22 budget for other funds includes $4.3 million in resources to add new positions in the Development Services fund to process increasing commercial and residential plan reviews, in the Solid Waste fund due to growth in both the number of households and refuse and recycling tonnage, in the Water fund to implement 13 projects recommended by the Water Conservation Ad Hoc Committee to address water shortages from the Colorado River, and in the Arizona Highway User Revenue fund for additional street maintenance needs. Thank You for Your Commitment to Phoenix I want to thank the Mayor and City Council for your dedication to the City and the community we all serve. 8QGHU\RXUVWHZDUGVKLS,DPFRQͤGHQWZHZLOOFRQWLQXH to navigate through the pandemic strategically by working together to continue our tradition of providing exceptional services to our community. Finally, I want to thank the residents who took the time to attend hearings and provided comments on the budget. Together, we all make a great city to work and live. For all funds, which includes General, Enterprise and Special Revenue funds such as grants, and all debt service and pay-as-you-go capital costs, the 2021-22 budget amount is $5.627 billion. This budget is a dynamic representation of City Council objectives and our commitment to providing our community the best possible programs and services. Ed Zuercher City Manager 7 Table of Contents 8 Table of Contents STRATEGIC PLANNING AND COMMUNITY INVOLVEMENT The Phoenix Strategic Plan was adopted in the spring of 2011 and was included in the Summary Budget Book for 2011-12. The plan was developed by a team of 50 people working in 10 study-area committees. The team consisted of City staff and members of the private sector. The Phoenix Strategic Plan guides decision-making within the organization and focuses the City’s efforts to deliver core services that meet the City’s mission: “7RLPSURYHWKHTXDOLW\RIOLIHLQ3KRHQL[WKURXJKHIͤFLHQWGHOLYHU\RIRXWVWDQGLQJ public services.” The plan includes 10 study areas: • Economic Development and Education • Financial Excellence • Infrastructure • ,QQRYDWLRQDQG(IͤFLHQF\ • Neighborhoods and Livability • Phoenix Team • Public Safety • Social Services Delivery • Sustainability • Technology 7KH6WUDWHJLF3ODQFRQWLQXHVWRHYROYHDQGWKHVWXG\DUHDVFRQVLVWHQWO\GHYHORSQHZSULRULWLHVDQGVWUDWHJLHVWRIXOͤOOWKHLU own study objectives. Documents included in this section: • Phoenix Strategic Plan • Strategic Plan 2020-21 Major Accomplishments 9 Table of Contents 10 Table of Contents PHOENIX STRATEGIC PLAN MISSION STATEMENT 7RLPSURYHWKHTXDOLW\RIOLIHLQ3KRHQL[WKURXJKHIͤFLHQWGHOLYHU\RIRXWVWDQGLQJSXEOLFVHUYLFHV ABOUT THE STRATEGIC PLAN The City of Phoenix developed a strategic plan to help guide decision-making at all levels of the organization and focus the &LW\̵VHIIRUWVRQLWVFRUHEXVLQHVVHV7KH3KRHQL[6WUDWHJLF3ODQZDVFRRUGLQDWHGE\DWHDPLQWKH&LW\0DQDJHU̵V2IͤFH)RU more information about the Strategic Plan, visit phoenix.gov/strategicplan. ECONOMIC DEVELOPMENT AND EDUCATION A diverse, vibrant economy that provides economic opportunity for residents is essential to achieving the City’s aspirations for a high quality of life. Creating and preserving jobs and enhancing our revenue base are key objectives. Businesses, QHLJKERUKRRGVDQGLQGLYLGXDOUHVLGHQWVEHQHͤWIURPWKHLPSURYHGTXDOLW\RIOLIHWKDWWKH&LW\̵VHFRQRPLFGHYHORSPHQWHIIRUWV create. The most important building block of a strong economy is an educated and productive workforce. Priorities 1. Create and retain high-quality jobs focusing on key domestic and international business sectors. To a great extent, the quality of life for Phoenix residents will be dependent on the number and quality of jobs created and retained that are convenient and appropriate for residents of the City of Phoenix. 2. Foster an environment for entrepreneurial growth. Entrepreneurs make critical contributions to the economy, including the generation of new jobs. Energized, educated entrepreneurs create economic opportunity for others and enhance a culture of innovation. 3. Revitalize the urban areas of Phoenix. Thriving urban cores are critical to the economic health and well-being of the entire metropolitan area. Strong urban centers enhance Phoenix’s image and should be reflective of the City’s collective social and economic aspirations as a region. 4. Expand the City’s revenue base. Sales taxes provide the largest source of local government funding. Phoenix needs to attract and retain a fair share of retail activity to sustain quality public services for residents. 5. 'HYHORSDQGUHWDLQTXDOLͤHGWDOHQWWRPHHWWKHQHHGVRIEXVLQHVVDQGWKHFRPPXQLW\ A skilled workforce is essential for an economy to sustain and enhance its competitiveness. A workforce development strategy that allows employers to grow and residents to enhance their income is critical to maintaining a high quality of life for Phoenix residents. 6. Promote early literacy and prepare young children for academic success. Early childhood development is critical in preparing youth for success in school and developing a foundation of knowledge, skills and life-long learning in families and the community. 7. Commit to achieving educational excellence for all Phoenix residents through sponsored facilities and programs. The future success of the region depends on ensuring that residents are prepared to meet the challenges of the 21st Century as educated, productive and engaged residents. 11 Table of Contents FINANCIAL EXCELLENCE )LQDQFLDOH[FHOOHQFHHQVXUHVWKHHIIHFWLYHDQGHIͤFLHQWDOORFDWLRQRI&LW\UHVRXUFHVIRUWKHGHOLYHU\RITXDOLW\VHUYLFHVWR UHVLGHQWV,WFUHDWHVWUXVWDQGFRQͤGHQFHWKDW&LW\UHVRXUFHVDUHXVHGDSSURSULDWHO\$WWKHFRUHRIͤQDQFLDOH[FHOOHQFHLV LQWHJULW\DQGLQQRYDWLRQ7KH3KRHQL[)LQDQFLDO([FHOOHQFH6WUDWHJLF3ODQVWULYHVWRPDLQWDLQͤVFDOO\VRXQGDQGVXVWDLQDEOH ͤQDQFLDOSODQVDQGEXGJHWVWKDWUHIOHFWFRPPXQLW\YDOXHVDQGUHVLGHQWV̵SULRULWLHV Priorities 1. Maintain high bond ratings. A bond rating is a measure of the credit quality of the City. Factors considered in a rating are the health of the local economy, stability and volatility of revenues, level of reserves for liquidity during unexpected ͤQDQFLDOFRQGLWLRQVDVZHOODVVRXQGͤQDQFLDOSUDFWLFHVSROLFHVDQGVWUXFWXUHVRUV\VWHPVWKDWDOORZIOH[LELOLW\WR address challenges. An entity with a long-term outlook and has plans to address unexpected changes is positively FRQVLGHUHG,QHVVHQFHDERQGUDWLQJUHIOHFWVDQLQGHSHQGHQWYLHZRIͤQDQFLDOH[FHOOHQFH$KLJKHUERQGUDWLQJZLOO usually result in lower borrowing costs. 2. Prioritize capital and funding plans for critical infrastructure.:LWKWKHVLJQLͤFDQWGRZQWXUQIURPWKH*UHDW5HFHVVLRQLQ WKHVWDWHORFDODQGQDWLRQDOHFRQRP\DQGWKHDVVRFLDWHGLPSDFWRQUHYHQXHVWKHͤQDQFLDOFDSDFLW\WRIXQGDQGͤQDQFH DGGLWLRQDOFDSLWDOSURMHFWVKDVEHHQVLJQLͤFDQWO\UHGXFHG$VDUHVXOWDIRFXVRQPDLQWDLQLQJH[LVWLQJLQIUDVWUXFWXUH must be balanced with the need for new infrastructure. This includes prioritizing the use of the remaining 2006 General 2EOLJDWLRQ *2 ERQGFDSDFLW\DQGRWKHUUHVRXUFHVDQGLQYHVWLJDWLQJDOWHUQDWLYHPHWKRGVWRͤQDQFHSULRULW\FDSLWDO needs. 3. Provide accurate and reliable revenue and expenditure forecasting. To ensure available resources are allocated to the highest priority needs, accurate and reliable forecasts of both revenues and expenditures are needed. This requires access to the necessary resources and expertise to ensure all critical factors are considered in revenue forecasts and all factors that impact expenditures are considered and modeled. Accuracy of expenditure forecasts also requires discipline of all City departments to ensure expenditures are monitored and managed. Without accurate forecasts and management of expenditures, reserve levels may be tapped below critical levels and services may be unnecessarily reduced. 4. 0DLQWDLQDWUDQVSDUHQWͤQDQFLDOHQYLURQPHQWIUHHRIIUDXGZDVWHDQGDEXVH One of the most important aspects of ͤQDQFLDOH[FHOOHQFHLVWKHDELOLW\WRDVVXUHWKHSXEOLFEXVLQHVVFRPPXQLW\LQYHVWRUVDQGWKHUDWLQJDJHQFLHVWKDW systems and processes are in place to prevent fraud, waste and abuse of public funds. An important element of SUHYHQWLQJIUDXGZDVWHDQGDEXVHLVUHJXODUͤQDQFLDOUHSRUWVWKDWDUHHDV\WRDFFHVVDFFXUDWHDQGXQGHUVWDQGDEOH )LQDQFLDOH[FHOOHQFHUHTXLUHVWKHLPSOHPHQWDWLRQRITXDOLW\ͤQDQFLDOV\VWHPVVWDIIWUDLQLQJLQWHUQDOFRQWUROVDQG regular internal and external audits to prevent fraud, waste and abuse. INFRASTRUCTURE Infrastructure is the basic physical and organizational structure needed for the operation of a society or enterprise and the services and facilities necessary to function, such as roads, pedestrian and bicycle systems, water supply, sanitary and storm sewers, public transit, airports, railroads, public buildings and facilities, solid waste collection, power supply and telecommunications. Priorities 1. Create and maintain intra-City transportation.3URYLGHVDIHFOHDQHIͤFLHQWVXVWDLQDEOHPXOWLPRGDOVXUIDFH transportation systems consistent with Complete Streets policies to support mobility needs of present and future residents, businesses, and visitors within the City of Phoenix. 2. Establish and enhance inter-City transportation.3URYLGHVDIHHIͤFLHQWVXVWDLQDEOHFRVWHIIHFWLYHPXOWLPRGDO transportation systems to support economic growth, population growth, and competitiveness through connectivity to regional, national, and global destinations. 3. Develop and operate public utilities.3URWHFWWKHSXEOLFKHDOWKDQGHQYLURQPHQWE\SURYLGLQJUHOLDEOHHIͤFLHQWDQG affordable water, wastewater, stormwater, and garbage and diversion (recycling, reducing, reusing) services. 4. Construct and manage public facilities.3URYLGHVDIHHIͤFLHQWVXVWDLQDEOHFRVWHIIHFWLYHZHOOPDLQWDLQHGDQG aesthetically pleasing public facilities for delivery of municipal services to residents and visitors; build, maintain, and manage capital assets to preserve long-term investment and ensure uninterrupted support services. 12 Table of Contents INNOVATION AND EFFICIENCY The City of Phoenix must further enhance its commitment to developing new and creative service delivery methods to provide services to residents. The City must also remain dedicated to developing and seeking continuous improvements in EXVLQHVVSURFHVVHVDQGPDLQWDLQLQJDFXOWXUHRILQQRYDWLRQDQGHIͤFLHQF\ Priorities 1. ,QIXVHDPLQGVHWIRFXVHGRQLQQRYDWLRQDQGHIͤFLHQF\LQWRWKH&LW\RI3KRHQL[RUJDQL]DWLRQDOFXOWXUHAn “innovation DQGHIͤFLHQF\̹ZD\RIWKLQNLQJPXVWEHFRPHDPXFKPRUHSUHYDOHQWSDUWRIWKHRUJDQL]DWLRQ̵VFRUHYDOXHV\VWHP and continues to be integrated into the way everyday business is conducted. Executives, managers, supervisors and frontline staff must embrace an attitude that questions existing business processes and practices throughout the organization, with the goal of fostering innovation through the creation and implementation of new ideas. 2. Establish and support City programs and mechanisms focused on developing and implementing tangible innovations throughout the organization.7KH&LW\̵VLQQRYDWLRQDQGHIͤFLHQF\HIIRUWVPXVWEHGULYHQIURPWKHWRSWRDOOOHYHOVEH results oriented, and demonstrate investment of available means. A proven approach involves assignment of resources dedicated to producing substantial innovative changes that enhance customer service, increase productivity, reduce costs and engage employees. 3. :RUNFRQWLQXDOO\WRZDUGHOLPLQDWLRQRIEDUULHUVWRLQQRYDWLRQDQGHIͤFLHQF\ Several obstacles can stand in the way of FUHDWLQJDQHQYLURQPHQWRILQQRYDWLRQDQGSDWKZD\VWRHIͤFLHQF\7KHRUJDQL]DWLRQPXVWVHHNWRLGHQWLI\WKHVHUHDORU perceived hindrances and, when appropriate, actively remove or facilitate working through them. 4. (QJDJHWKH3KRHQL[FRPPXQLW\LQWKH&LW\̵VLQQRYDWLRQDQGHIͤFLHQF\PHWKRGRORJLHVWRIDFLOLWDWHFLWL]HQLQYROYHPHQW input and awareness.,QYROYHPHQWE\3KRHQL[UHVLGHQWVLQWKHDFFRPSOLVKPHQWRIWKH&LW\̵VLQQRYDWLRQDQGHIͤFLHQF\ goals will boost the meaningfulness and connectedness of the achievements to the community. It is important for the &LW\WRHQKDQFHSXEOLFDZDUHQHVVDERXWLQQRYDWLRQDQGHIͤFLHQF\DFKLHYHPHQWVDQGPDNHVWURQJHIIRUWVWRUHTXHVW relevant input. NEIGHBORHOODS AND LIVABILITY To preserve healthy, vibrant, diverse and safe neighborhoods that enhance the quality of life for all Phoenix residents through neighborhood vitality, by providing a range of housing opportunities and choices, supporting quality parks and open space, and enriching its populace with a strong art and culture infrastructure, and an accessible and quality library system. Priorities 1. 6XSSRUWQHLJKERUKRRGYLWDOLW\WKURXJKVWURQJSDUWQHUVKLSVFROODERUDWLRQVDQGE\OHYHUDJLQJUHVRXUFHV In order to preserve healthy, vibrant, diverse and safe neighborhoods, the City must support neighborhood self-reliance and enhance the quality of life for all residents through community-based problem solving, neighborhood-oriented services and public/private cooperation. 2. Provide a diverse range of housing opportunities and choices to Phoenix residents.3URPRWLQJGLYHUVLͤHGKRXVLQJ opportunities enriches the quality of life for all Phoenix residents, including low- to moderate-income families, seniors, persons with disabilities and the homeless. Providing a range of housing opportunities allows the City to continue to preserve healthy, vibrant, diverse and safe neighborhoods. 3. Ensure Phoenix residents have quality parks and open space. Partner with the community to provide a parks and recreation system that meets the needs of Phoenix residents and visitors that is convenient, accessible and diverse in programs, locations, and facilities. 4. Promote a strong arts and culture infrastructure. Continue to partner with the community to provide strong arts and culture facilities and programs to create a more beautiful and vibrant City which contributes to a better quality of life. 5. Provide accessible and quality library systems to Phoenix residents. Partner with the community to provide a library system that meets the needs of residents and visitors and is accessible, convenient and diverse in locations, programs and facilities. 13 Table of Contents PHOENIX TEAM As the organization becomes leaner and continues to face increasing pressures for improved results, it becomes even more critical for a heightened connection between employees and their work, their organization, and the people they work for and with. Methods for motivating employees must be updated to keep employees engaged and retained within the organization. Additionally, traditional means of communication may no longer be adequate to convey critical information to both employees and the public. Priorities 1. (VWDEOLVKSD\DQGEHQHͤWVDQGDZRUNSODFHFXOWXUHWKDWDWWUDFWVUHWDLQVDQGPRWLYDWHVDKLJKO\TXDOLͤHGZRUNIRUFH *LYHQWKHFXUUHQWVWDWHRIWKHHFRQRP\WKHFRPPXQLW\KDVH[SUHVVHGLQWHUHVWLQWKHFXUUHQWVDODU\EHQHͤWVDQGRYHUDOO compensation packages for government employees. 2. 3URYLGHDZRUNSODFHFXOWXUHWKDWVXSSRUWVWKHKHDOWKSURGXFWLYLW\DQGHIͤFLHQF\RIHPSOR\HHV The City of Phoenix XQGHUVWDQGVWKDWRUJDQL]DWLRQDOVXFFHVVGHSHQGVRQDKHDOWK\SURGXFWLYHDQGHIͤFLHQWZRUNSODFHDQGZRUNIRUFH Employees also recognize that they can improve their lives by taking charge of their own health and making greater use of technology to ease ever increasing work demands. 3. Establish Communications Plans to engage and inform employees and the community. The City’s recent budget challenges have made evident the necessity of providing clear, timely and accurate information to employees and the public to garner continued support for and achievement of organizational goals and continued quality services. 4. Create development opportunities that enhance the City’s standing as a high-performing organization. The City FRQWLQXHVWRUHGXFHXQQHFHVVDU\KLHUDUFK\WRLPSURYHHIͤFLHQFLHVDQGVSHHGFRPPXQLFDWLRQDQGGHFLVLRQPDNLQJ This has resulted in a flatter organization, increases in span of control and consequently fewer promotional opportunities. Further, an increasing number of employees are leaving the City as they reach retirement eligibility. As a result, it becomes even more critical to manage and coordinate the available human resources effectively to provide leadership and ongoing quality services to the community. 5. Mobilize and leverage community partnerships and volunteer programs to enhance programs and services. The City FRQWLQXHVWRPDNHGLIͤFXOWFKRLFHVUHJDUGLQJSURJUDPVDQGVHUYLFHVWRRXUFXVWRPHUVLQOLJKWRIUHYHQXHVWUHDP uncertainty. Additionally, the community has expressed interest in assisting the City in continuing to provide quality services to residents in a variety of areas. PUBLIC SAFETY The City of Phoenix is committed to a high level of public safety and working in partnership with the community to maintain a safe and secure City. The Public Safety Study Area includes members of and services provided by the Police Department, )LUH'HSDUWPHQW0XQLFLSDO&RXUW3URVHFXWRU̵V2IͤFHDQG2IͤFHRI(PHUJHQF\0DQDJHPHQW:RUNLQJWRJHWKHUWKHVH departments strive to provide Phoenix with an environment of safety and security. Priorities 1. Prevent crimes and accidents by enhancing community awareness of public safety systems and partnering with other crime prevention programs. The City provides the community with information about a variety of public safety issues including crime and accident prevention, information on the operation of the judicial system, and education on police DQGͤUHGHSDUWPHQWVHUYLFHV 2. Provide public safety workers with the tools necessary to professionally meet City and regional public safety needs. Ensure that public safety workers have the training, education, equipment, facilities and other resources needed to provide a high level of service to the community. 3. Ensure timely and appropriate response. The City of Phoenix deploys public safety workers in a manner that provides a timely and appropriate response to emergencies. Response resources include those needed for routine incidents as ZHOODVWKHFDSDFLW\WRUHVSRQGWRDQGPDQDJHQDWXUDODQGKXPDQFDXVHGLQFLGHQWVRIUHJLRQDOVLJQLͤFDQFH 4. Provide strong customer service internally and externally. Every member of the community and every organization ZRUNLQJLQ3KRHQL[LVDSXEOLFVDIHW\FXVWRPHU)LUHͤJKWHUVSROLFHRIͤFHUVDQGRIͤFHUVRIWKHFRXUWVZHDUDQRDWK to protect the people they serve. Every public safety worker should serve their customers with dignity and honor to develop mutual trust and respect. 5. (QVXUHͤVFDOUHVSRQVLELOLW\LQDOOSXEOLFVDIHW\HIIRUWV Public safety managers and public safety workers must be responsible stewards of the funds provided by the customers to support public safety efforts. 14 Table of Contents SOCIAL SERVICES DELIVERY The City of Phoenix has a long history of responding to community needs and providing services to those most in need. Building upon this foundation, the City is committed to continue seeking innovative and effective methods for delivering social services. The City will serve as a catalyst to support a full continuum of high quality services for Phoenix residents. 7KRXJKWKH&LW\RI3KRHQL[KDVDQGZLOOFRQWLQXHWRUHVSRQGWRVSHFLͤFVRFLDOVHUYLFHVQHHGVGLUHFWO\ZKHUHDSSURSULDWHWKH IUDPHZRUNRIWKLVSODQGHͤQHVDQGFRRUGLQDWHVWKHJUHDWHUVFRSHRIQHHGVDQGVHUYLFHVUHTXLUHGE\3KRHQL[UHVLGHQWV%\ providing a clear vision and continued leadership, City services will be provided in tandem with other resources provided by community and faith-based organizations, as well as, other levels of government. Priorities 1. Strengthen the safety net of social services available to protect those who are most vulnerable or in crisis. The City of Phoenix will assure those most in need have access to basic needs such as shelter and food. The City will connect the homeless, working poor, elderly, disabled and victims of violent crimes to core services needed to stabilize their lives. 2. Enhance the quality of life for low-income or at-risk individuals and families. The City of Phoenix will empower DOOUHVLGHQWVWROLYHLQVDIHDIIRUGDEOHKRXVLQJDQGDFKLHYHHFRQRPLFVHOIVXIͤFLHQF\WKURXJKDFFHVVWRVRFLDO employment and other economic resources needed to maximize their quality of life. 3. %XLOGKHDOWK\FDULQJFRPPXQLWLHV The City of Phoenix will promote rich, diverse, and innovative networks of public, community, and faith-based programs, services, and facilities to maximize the potential of every community. The City will serve as a resource and a catalyst in strengthening neighborhoods and building community capacity. SUSTAINABILITY The City of Phoenix is committed to securing environmental and economic livability for future generations in the region, with an emphasis on solar energy production. Phoenix has long used sustainability as a guiding principle, believing that sustainable living is critical to ensuring that the actions we take today do not compromise the ability of future generations to PHHWWKHLUQHHGV3KRHQL[̵VVXVWDLQDELOLW\PRWWR̸̰/LYLQJ/LNHLW0DWWHUV̹̰UHDIͤUPVWKHVXVWDLQDELOLW\FUHHGWKDWJXLGHVLWV current programs and future plans. Priorities 1. Accelerate renewable energy development. The City has a long-standing commitment to resource conservation and FRQWLQXHVWREHDQDFWLYHSDUWLFLSDQWLQHQHUJ\FRQVHUYDWLRQHIͤFLHQF\DQGHQYLURQPHQWDOSUHVHUYDWLRQ3XUVXLQJ renewable energy development guides the City towards energy independence. 2. Enable opportunities for environmental stewardship. Environmental sustainability is best achieved by encouraging VKDUHGUHVSRQVLELOLWLHVSURWHFWLQJQDWXUDOV\VWHPVDQGSURPRWLQJWKHHIͤFLHQWXVHRIQDWXUDOUHVRXUFHV,WLVDOVR important to implement policies, programs and practices that have a far-reaching effect on the environment. 3. Enhance sustainable land use and mobility practices. The success in sustainable land use and mobility lies in adopting SROLFLHVWKDWHQFRXUDJHWKHXVHRIJUHHQLQIUDVWUXFWXUHDQGEXLOGLQJVEURZQͤHOGUHGHYHORSPHQWFUHDWLQJFRQQHFWLYLW\ within road networks, and ensuring connectivity between pedestrian, bike, transit and road facilities. 4. Foster collaboration and communication. Empowering employees at all levels through collaborative workgroups will galvanize them to realize the City’s sustainability goals. They in turn become an example of the City’s efforts and progress to the community they serve. Communicating and celebrating the City’s accomplishments is essential to motivating employees, customers, stakeholders and the public in achieving sustainability goals. 15 Table of Contents TECHNOLOGY Information technology is a vital part of a vibrant City government. Information technology, utilized appropriately, enables HQKDQFHGVHUYLFHVWRWKHFRPPXQLW\LQFUHDVHVHIͤFLHQF\RIRSHUDWLRQVGHOLYHUVXVHIXOLQIRUPDWLRQDQGVXSSRUWVLQQRYDWLRQ The Phoenix Strategic Plan’s Technology Area leverages technology to drive key actions that fundamentally enhance the way Phoenix connects to information. Priorities 1. Provide seamless customer service. A seamless customer experience is achieved when a customer interacts with both internal and external City service providers without experiencing service interruptions during the service delivery process. 2. ,QFUHDVHRSHUDWLRQDOHIͤFLHQF\WKURXJKFRQVWDQWLQQRYDWLRQ Constant product and service innovation nurtures ideas and focuses on customer satisfaction, combines process and technology to enhance productivity and value, drives down operational costs, and supports other City strategies. 3. Turn data into information through a web-enabled City. When business data is stored in easily accessible, organizationwide repositories, the City can create opportunities to use this data to make better decisions. Internet-based information delivery and collection efforts empower the community to interact with and receive City services 24 hours a day, giving the opportunity to conduct business on-line versus waiting in line. 4. Create a shared common infrastructure. Consolidating technological infrastructure around common IT components allows improved investments on behalf of the entire City. Strategic use of technology will result in tangible cost savings DQGUHVXOWVLQWKHHIͤFLHQWDQGHIIHFWLYHDOORFDWLRQRIUHVRXUFHV 5. Enhance information security and privacy. In today’s business environment, information security and privacy form the foundation of technology projects. The City should create a comprehensive program to protect data and technology infrastructures, secure systems and assets, mitigate threats and provide a mechanism for business continuity in emergencies. 16 Table of Contents STRATEGIC PLAN 2020-21 MAJOR ACCOMPLISHMENTS ECONOMIC DEVELOPMENT AND EDUCATION 1. Business Attraction • In May, Taiwan Semiconductor Manufacturing Company (TSMC) announced they selected Phoenix for their new U.S. advanced semiconductor factory. This will include 1,900 high wage jobs and a $12 billion investment from the company. • Staff assisted 23 companies to locate and create 5,635 new jobs with a capital expenditure of more than $457 million and a total of 3.6 million square feet, representing a 25% increase in jobs from last year. Despite the pandemic we are at historically low vacancy rates in our industrial product. ̽ 7KHRIͤFHPDUNHWLQ3KRHQL[UHPDLQHGVWURQJLQGHVSLWH&29,'0RUHWKDQVTXDUHIHHWRIRIͤFH space has been leased creating 1,571 new jobs with an average annual salary of $79,332. These new companies are expected to bring over $18.5 million in capital investment including PennyMac, ZorroSigns, SMS Assist, MakeSpace, Dataminr, FrontApp, Smead Capital, Blue Optima and Protecht. 2. Business Retention & Expansion Outreach - Twenty companies indicated they were expanding within the next 12 months, creating 4,480 new jobs at an average salary of $54,243, with a capital investment of more than $519 million and a total of 1.5 million square feet. Examples of expansions include: Freestar, LLC, Honeywell Aerospace, and Industrial Metal Supply. 3. Emergence of Food System Entrepreneurship and Innovation - In partnership with the Public Works Department, Parks DQG5HFUHDWLRQ'HSDUWPHQWDQGWKH2IͤFHRI(QYLURQPHQWDO3URJUDPVWKHUHGHYHORSPHQWRIWKH'HO5LR/DQGͤOONQRZQ as Arizona Fresh is moving forward with a food innovation, education, distribution facility and a new City park amenity. Arizona Fresh projects to create 1,500 jobs, incur a capital expenditure of $200 million and create $848 million in annual economic output. 4. Arena Renovation - Nearly $150 million of improvements have been implemented, employing more than 2,800 people, LQFOXGLQJRYHUDSSUHQWLFHVOHDUQLQJYDOXDEOHFDUHHUVNLOOV%\'HFHPEHUWKHͤUVWSKDVHZDVFRPSOHWHG including a reimagined entry pavilion and guest experience. All 17,000 seats have been replaced and fans will enjoy improved technology, from upgraded Wi-Fi to visually stunning LED displays. The project has achieved a better than 75% waste diversion rate. 5. Global Biorisk Advisory Council STAR Accreditation - In 2020, the Phoenix Convention Center (PCC) achieved the Global Biorisk Advisory Council (GBAC) STAR accreditation. The PCC is among the few major convention centers in the 8QLWHG6WDWHVDQGWKHͤUVWIDFLOLW\LQ$UL]RQDWRLPSOHPHQWWKHPRVWVWULQJHQWSURWRFROVIRUFOHDQLQJGLVLQIHFWLRQDQG infectious disease prevention. To achieve GBAC STAR accreditation, the PCC was required to demonstrate compliance with the program's 20 core elements, which range from standard operating procedures and risk assessment strategies to personal protective equipment and emergency preparedness and response measures. FINANCIAL EXCELLENCE 1. Short-Term Debt - In June 2020, the Finance Department successfully issued short-term debt for Streets and Transit for $200,000,000. The short-term debt was a T2050 Revolving Credit Facility Agreement (three-year term) with Bank of America to pay for costs of certain improvements to the City’s streets and public transit systems. This Revolver was issued during a time where the banks nationwide were limiting or omitting borrowing due to liquidity shortages as a result of COVID-19. 2. Senior Lien Airport Revenue - The Finance Department issued $762,535,000 of Senior Lien Airport Revenue Bonds and Refunding Bonds to pay the costs of certain improvements for the City’s aviation system. The all-in interest cost was RQERQGVZLWKDͤQDOPDWXULW\RI 3. Delinquent Collections - Delinquent collections amounted to over $28 million and tax audits brought in an additional $10 million. 4. Finance Procurement - The Finance Procurement Division established a collaborative partnership for procurement from the State of Arizona to streamline procurement processes. 5. Risk Management - 7KH5LVN0DQDJHPHQW'LYLVLRQSURFHVVHGULVNFODLPVRYHUWKHODVWͤVFDO\HDUDQGDOOFODLP information has been made available on the City’s website. 17 Table of Contents 6. Annual Comprehensive Financial Report - 7KH*RYHUQPHQW)LQDQFH2IͤFHUV$VVRFLDWLRQRIWKH8QLWHG6WDWHVDQG &DQDGD *)2$ DZDUGHGD&HUWLͤFDWHRI$FKLHYHPHQWIRU([FHOOHQFHLQ)LQDQFLDO5HSRUWLQJWRWKH&LW\IRULWV$QQXDO &RPSUHKHQVLYH)LQDQFLDO5HSRUWIRUWKHͤVFDO\HDUHQGHG-XQH7KHFLW\KDVUHFHLYHGWKLVDZDUGFRQWLQXRXVO\ since 1976. The City also received the GFOA Award for Outstanding Achievement in Popular Annual Financial Reporting IRULWV3RSXODU$QQXDO)LQDQFLDO5HSRUW 3$)5 IRUWKHͤVFDO\HDUHQGHG-XQH 7. Junior Lien Water Revenue Bonds - The Finance Department issued two series of Junior Lien Water Revenue %RQGVWRWDOLQJWRͤQDQFHKLJKSULRULW\SURMHFWVWRLPSURYHWKHUHVLOLHQF\RIWKH&LW\̵VZDWHUV\VWHP against potential future droughts, creating a more sustainable water system. The bonds were designated by the City as Sustainability Bonds based upon the social impacts of sustainable, clean water management as well as the FOLPDWHDGDSWDWLRQDQGRUPLWLJDWLRQEHQHͤWVRIWKH&RORUDGR5LYHU5HVLOLHQF\SURMHFWXWLOL]LQJWKH&LW\̵V*UHHQDQG 6XVWDLQDELOLW\%RQG)UDPHZRUNDQGLQFRPSOLDQFHZLWKWKH*UHHQ%RQGV3ULQFLSOHV7KLVZDVWKH&LW\̵VͤUVWLVVXDQFH RI̸6XVWDLQDELOLW\̹ERQGV7KHDOOLQLQWHUHVWFRVWZDVRQERQGVZLWKDͤQDOPDWXULW\RI7KH%RQGVZHUH VROGGXULQJDSHULRGRIXQSUHFHGHQWHGPDUNHWYRODWLOLW\DQGWKHWUDQVDFWLRQZDVRQHRIWKHͤUVWERQGVDOHVDIWHUWKH municipal new issue market almost entirely shut down during the second week of March 2020. 8. City of Phoenix Civic Improvement Corporation Subordinated Excise Tax Revenue Bonds - On August 4, the Finance Department priced the City of Phoenix Civic Improvement Corporation Subordinated Excise Tax Revenue bonds totaling $398.3 million. The sale included $131.6 million of tax-exempt bonds, $150 million of taxable bonds and $116.7 million of refunding bonds (taxable). The City received the following ratings; Aa2 from Moody’s, AA+ from Fitch and AAA from S&P. The bond proceeds will be used to fund renovations to the Downtown Arena, the shoring wall at the Convention Center, solid waste facility improvements and equipment as well as Council approved technology projects. The refunded bonds resulted in about $14 million in overall savings. During pricing, demand for City bonds was very strong and the City received over $3 billion in orders for a supply of $398.3 million resulting in a true interest cost of 2.05%. This historically low rate will save the City and the constituents of Phoenix millions of dollars in the years to come. INFRASTRUCTURE 1. Accelerated Pavement Maintenance Program (APMP) - In the second year of the APMP, 587 miles of Phoenix streets received pavement maintenance treatment in 2020, which is approximately 12% of the entire street network. A breakdown of the pavement maintenance activities includes: • Mill and overlay - 74 miles of major streets and 108 miles of local streets. • Other paving treatments (slurry/micro seal, fog seal, crack seal, etc.) – 406 miles of major and local streets. • 3,081 ADA ramps upgraded for improved accessibility. 2. LED Conversion - The Street Transportation Department completed the citywide LED street light conversion. The LED streetlights will save approximately $3.5 million in annual energy costs and reduce the electricity needed to light the streets by approximately 53%. This reduction prevents emissions of up to 18,000 metric tons of carbon dioxide a year – the equivalent of taking 3,800 cars off the road. LED streetlights also have longer lifespans and produce better light quality than the previous streetlights, improving roadway visibility and safety. 3. Central Station Redevelopment - The redevelopment plan for Central Station was approved by the FTA earlier last year. When completed in 2024, the project will include a 9,000 square-foot Central Station Transit Center, lower level retail and commercial space, as well as market-rate, workforce and student housing. During construction, all Central Station customer service activities have been relocated to the ground floor of the Public Transit building on Van Buren Street and First Avenue. 4. South Central Extension/Downtown Hub Project Construction Funding Agreement - In May 2020, the U.S. Department of Transportation’s Federal Transit Administration (FTA) announced a $100 million federal funding allocation to the South Central Light Rail Extension/Downtown Hub. The funding is provided through FTA’s Capital Investment Grants (CIG) Program. The South Central Extension/Downtown Hub allocation is one of twelve rail projects nationwide receiving CIG allocations. The FTA has now awarded another $500+ million in potential federal funding for the South Central Extension/Downtown Hub project, subject to the completion of a full funding grant agreement between FTA, Valley Metro and the City of Phoenix in 2021. 5. New and Expanded International Flights - In 2020, new and expanded international flights included: ̽ 2Q2FW6RXWKZHVW$LUOLQHVODXQFKHGLWVͤUVWLQWHUQDWLRQDOVHUYLFHIURP3KRHQL[6RXWKZHVWQRZVHUYHV&DER San Lucas and Puerto Vallarta daily from PHX. • American Airlines announced service to Loreto, Mexico four times a week beginning December 17, 2020, and service to La Paz, Mexico offered three times a week beginning December 19, 2020. The flights will operate until May 3, 2021. 18 Table of Contents INNOVATION AND EFFICIENCY 1. Projects Completed - In the past year, the City Auditor Department completed 71 audits and management services, with UHFRPPHQGDWLRQVWRLPSURYHRSHUDWLRQDOHIͤFLHQF\UHGXFHULVNDQGLPSURYHPDQDJHPHQWFRQWUROV 2. Economic Impact - City Auditor Department recommendations resulted in over $6.6 million in revenue recovery and FRVWVDYLQJVRYHUWKHSDVWͤYH\HDUVLQFOXGLQJLQUHYHQXHUHFRYHULHVDQGFRVWVDYLQJVLQ)< 3. (IͤFLHQF\(IIRUWV - In addition to recommendations to improve management controls and reduce risk, the Audit 'HSDUWPHQWLGHQWLͤHGPDQ\SRWHQWLDOHIͤFLHQF\LPSURYHPHQWV&LW\GHSDUWPHQWVUHSRUWHGWKHLPSOHPHQWDWLRQRI UHFRPPHQGDWLRQVLQWKHSDVW\HDU$XGLWUHFRPPHQGDWLRQVUHVXOWLQPDQ\EHQHͤWVWRWKH&LW\LQFOXGLQJLPSURYHG transparency and accountability, enhanced internal controls, reduced costs, increased revenue, and improved services. NEIGHBORHOODS AND LIVABILITY 1. Coronavirus Relief Fund (CRF) Utility, Rent, Mortgage Assistance Program  7KH1HLJKERUKRRG6HUYLFHV'HSDUWPHQWLQSDUWQHUVKLSZLWK$UL]RQD&RPPXQLW\$FWLRQ$VVRFLDWLRQ :LOGͤUH DQGQLQH participating agencies, launched the Coronavirus Relief Fund (CRF) Utility, Rent/ Mortgage Assistance Program, which SURYLGHVHPHUJHQF\DVVLVWDQFHUHOLHIWRHOLJLEOH3KRHQL[UHVLGHQWVH[SHULHQFLQJͤQDQFLDOKDUGVKLSDVDUHVXOWRIWKH &29,'SDQGHPLF:LOGͤUHFRQWUDFWHGZLWKQLQHDJHQFLHVZLWKZHOOHVWDEOLVKHGFRPPXQLW\UHODWLRQVKLSVWKDWKDYH adapted their infrastructures and existing programs to make service delivery a priority. In 2020, these agencies provided 3,003 households with over $9.8 million in rent/mortgage assistance and over $1.9 million in utility assistance, totaling over $11.7 million in critical services to households in need.  :LOGͤUHFRQWUDFWHGZLWKVL[DGGLWLRQDODJHQFLHVWRWDUJHWWKH5HIXJHH$V\OHHFRPPXQLW\WRHQVXUHWKLVJUHDWO\ underserved population also has access to critical services that have the potential to stabilize households in need. In 2020, these six agencies prevented 192 households from facing utility disconnection and eviction/foreclosure by providing $600,600 in rent/mortgage assistance and $80,700 in utility assistance. These agencies have successfully reinforced their infrastructures and adapted their existing programs to engage an increasing number of residents and households in this vulnerable community. 2. Youth Day Camps / Virtual Learning - On March 23, 2020, the Parks and Recreation Department began offering free youth camps for children and dependents ages 6 to 17 of all full and part-time City employees in multiple community centers. When the 2020-21 school year began, those sites transitioned into virtual learning locations and are still being used for that purpose. Those camps have served more than 4,200 participants. On August 28, 2020, in partnership with the Housing Department, the Parks and Recreation Department began facilitating youth camps at six housing sites: Sidney P. Osborn, Luke Krohn, Aeroterra, Foothills, Vernell Coleman and Harmon Park. More than 2,200 youth have participated in activities offered as part of those camps. 3. Virtual Recreation Programs - The Parks and Recreation Department and several of its partner organizations offered a variety of free virtual programs, activities and resources to help community members of all ages stay active and engaged during the pandemic. Activities include the PHXPlays at Home Virtual Recreation series; Virtual Adaptive Recreation programs; Virtual Chats for Seniors; Virtual Speaker Series; FitPHX Virtual Fall Into Fitness, Boot Camp and Morning Yoga series; virtual activities for the PHXteens, Project BRAVE and Partners programs; virtual Park Ranger programming; Pueblo Grande Museum virtual storytelling and enrichment activities; self-guiding codePHX resources; the Camp Colley Virtual Environmental Learning Program; and Daring Adventures Virtual Adventures series. More than 2,000 people participated in those programs. Video of the FitPHX activities was archived on the department’s YouTube channel and is available on-demand for free. Those videos have been viewed more than 4,400 times. 4. Cesar Chavez Community Center Groundbreaking - In September 2020, the Parks and Recreation Department kicked off construction of the City’s newest community center with a ceremonial groundbreaking event in Cesar Chavez Park. Construction of the $12 million, 34,000-square-foot facility is scheduled for completion in fall 2021. 5. Library Resources - On March 16, 2020 Phoenix Public Library closed all locations and book drops due to the Coronavirus pandemic. Even with an unexpected closure to in-building services and visits, Phoenix Public Library continues to be responsive while maintaining the health and responsible safety measures as a top priority for the FRPPXQLW\'XULQJWKHͤUVWGD\RIFORVXUH3KRHQL[3XEOLF/LEUDU\LPPHGLDWHO\H[WHQGHGWKHERUURZLQJSHULRGRQDOO checked out items through June 30 and communicated with over 400,000 library cardholders as to the status of their access to library services and resources. Phoenixpubliclibrary.org remains available 24/7 and hosts approximately 470,000 visits each week, with digital customers checking out over 2,444,500 digital items, an average of more than 69,800 digital items a week. Circulation of a diverse selection of eMaterials provided through the public website LQFUHDVHGE\DSSUR[LPDWHO\ZLWKVRPHSODWIRUPVGRXEOLQJWKHLUXVHLQWKHͤUVWZHHNVDVPDQ\YHQGRUV expanded and adjusted the volume and selection of their content. 19 Table of Contents 6. Increase Solid Waste Service Levels - During this unprecedented pandemic, the Public Works Department experienced an increase in solid waste collection demand from residential customers. Recycling tonnage increased by 20%, refuse tonnage increased by 11%, and bulk trash tonnage experienced a 15% increase. Increased tonnage has been a challenge for many cities across the state and country. Where many local and national cities addressed this concern through reducing services such as bulk trash and recycling, the Public Works Department stepped up and managed to maintain continuity of services with existing resources despite the drastic increase in tonnage. PUBLIC TEAM 1. City of Phoenix Learning Resource Library - The City of Phoenix Learning Resource Library was designed for City employees to access learning tools and resources for developing professional, personal, physical, wellness, and emotional skills. The Library helps employees and leaders navigate some of the work and life challenges they may be facing during the COVID-19 health crisis. 2. Enhancements - Due to restrictions from COVID-19, the Human Resources Department made several enhancements including electronic routing of documents for employee relations matters, electronic tuition reimbursement process, electronic approval for payroll preparation, semi-virtual Civil Service Board meetings, use of video conferencing for internal and external meetings and conversion to virtual learning including new employee orientation webinar. For required in-person training, the department created a written safety plan and discovered non-traditional training techniques that allowed employees to achieve social distancing and other COVID-19 recommendations. 3. Census 2020 - During calendar year 2020, planning and execution efforts for the 2020 Census came to fruition. In addition to continually working with regional partners through the Maricopa Association of Governments (MAG) and the U.S. Census Bureau, census staff engaged local partners in supporting outreach as community ambassadors to spread messaging and increase participation. The 2020 Census team achieved, following a national self-response rate of 67%, a City self-response rate of 66.2% resulting in the third highest self-response rate among cities of similar population. PUBLIC SAFETY 1. COVID-19 Testing - 7KH3KRHQL[3ROLFH'HSDUWPHQW̵VFULPHODEEHFDPHWKHͤUVWDQGRQO\ODZHQIRUFHPHQWFULPHODE LQWKHQDWLRQWREHFHUWLͤHGWRSURFHVV&29,'WHVWV6WDIIZRUNHGIRUVHYHUDOPRQWKVWRPHHWULJRURXVVWDQGDUGV required by the Arizona Department of Health Services to provide this public service. Testing performed by the crime lab EHJDQLQ2FWREHUDQGLVVXSSRUWLQJWKH0DULFRSD&RXQW\0HGLFDO([DPLQHU̵V2IͤFHLQGHDWKLQYHVWLJDWLRQV 2. &ULWLFDO,QFLGHQW%ULHͤQJ9LGHRV - In July, the Phoenix Police Department shortened the release time of Critical Incident %ULHͤQJ &,% YLGHRVIURPGD\VWRZLWKLQGD\VRIDQLQFLGHQW7KH&,%YLGHRVFRQWDLQDXGLRERG\ZRUQFDPHUD IRRWDJHDQGLQIRUPDWLRQUHODWHGWRKLJKSURͤOHLQFLGHQWVVXFKDVRIͤFHULQYROYHGVKRRWLQJV5HFRUGVDVVRFLDWHGZLWK the CIB videos are also available for release during this abbreviated period. 3. Body-Worn Cameras - The Phoenix Police Department has deployed 2,170 body-worn cameras to sworn and nonsworn HPSOR\HHVWKURXJKRXWWKHGHSDUWPHQW,QSDWURORIͤFHUVWKURXJKWKHUDQNRIFRPPDQGHUDUHRXWͤWWHGZLWKFDPHUDV DVDUH&$2V1(7VTXDGVUHVHUYHRIͤFHUVDQGSDWUROSROLFHDVVLVWDQWV6SHFLDOW\XQLWVRXWͤWWHGZLWKFDPHUDVLQFOXGH WKH6SHFLDO$VVLJQPHQWV8QLWFDQLQHRIͤFHUVWKH)XJLWLYH$SSUHKHQVLRQ8QLW0RWRUV7UDQVLWRIͤFHUVDQGSROLFH assistants, the Gang Enforcement Unit, Crisis Intervention Teams, Community Response Squads, the Downtown 2SHUDWLRQV8QLWDQGWKHRIͤFHUVDQGSROLFHDVVLVWDQWVDVVLJQHGWRWKHGRZQWRZQ,QIUDVWUXFWXUH3URWHFWLRQ8QLW$Q DGGLWLRQDOFDPHUDVKDYHEHHQUHTXHVWHGWRRXWͤWVWDIIDVVLJQHGWR&HQWUDO%RRNLQJWKH$LUSRUW%XUHDXDQG academy graduates. 4. New Fire Station 62 - $SSURYDOWREXLOG)LUH6WDWLRQDWUG$YHQXHDQG/RZHU%XFNH\H5RDGZLOOUHVXOWLQVLJQLͤFDQW service delivery improvements to the surrounding community. SOCIAL SERVICE DELIVERY 1. Bridging the Digital Divide - PHXHousing Connect Tablet Distribution - In June 2020, the Housing Department began distribution of 800 tablets with 24 months of unlimited WiFi data service to provide digital learning access to public housing households with school-aged children. These devices can be utilized as a hotspot to connect additional devices in the household to the internet. A custom image was deployed on each device providing immediate access to educational applications and website bookmarks. The devices are managed through a mobile device management software which allows the Housing Department to broadcast messages and share information electronically with residents. All program participants received a user guide which provided information on tablet and application usage, cyber safety and device care. Distribution was completed in September 2020. In October 2020, City Council approved 800 additional devices for public housing senior residents to reduce social isolation and assist them with access to online services, telemedicine and social media. 20 Table of Contents 2. Delivering Essential Services to Residents - Providing essential services to meet the basic needs of residents in public housing was a priority for the Housing Department during the COVID-19 pandemic. Beginning in March 2020, the Housing Department shifted resources to focus on assisting these residents and from March to October, provided over 25,000 Kids Café meals to youth in public housing and over 4,700 food boxes in mobile food pantry events to ensure families had access to nutritious food. Health and wellness services were facilitated on-site to maximize access and eliminate potential transportation barriers. In total, 340 residents received onsite COVID-19 testing, 283 residents were administered the seasonal flu shot, and 265 senior residents participated in health screenings. Staff coordinated with the City’s mobile testing van to provide additional on-site testing and flu shots for hundreds of public housing UHVLGHQWVDQGVXUURXQGLQJFRPPXQLW\PHPEHUV6WDIIDOVRFRRUGLQDWHGZLWKQRQSURͤWSDUWQHUVZKRGRQDWHGRYHU HVVHQWLDOFDUHSDFNDJHVͤOOHGZLWKLPSRUWDQWLWHPVLQFOXGLQJWRLOHWSDSHUGLVLQIHFWDQWZLSHVDQGYDULRXVRWKHU household cleaning supplies. 3. Housing Phoenix Plan - ,Q-XQHWKH3KRHQL[&LW\&RXQFLOXQDQLPRXVO\DSSURYHGWKHͤUVWHYHU+RXVLQJ3KRHQL[ Plan, which establishes a goal of creating or preserving 50,000 homes by 2030 to address the housing shortage in 3KRHQL[7KH+RXVLQJ3KRHQL[3ODQGRFXPHQWVWKHͤQGLQJVRIWKH$IIRUGDEOH+RXVLQJ,QLWLDWLYHZKLFKODXQFKHGLQ 2019 with the goal of completing a housing needs assessment and establishing policy recommendations to address the City's current housing challenge. Through extensive research and community outreach, the published plan LGHQWLͤHVWKHFRPPXQLW\ VKRXVLQJQHHGVGRFXPHQWVWKHKRXVLQJJDSFRPSLOHVQDWLRQZLGHEHVWSUDFWLFHVDQG recommends nine policy initiatives to increase the number of available and affordable housing options throughout the FLW\,Q2FWREHUVWDIIUHOHDVHGWKHͤUVW+RXVLQJ3KRHQL[3ODQ4XDUWHUO\5HSRUWVKRZFDVLQJWKHSURJUHVVRIWKH QLQHSROLF\LQLWLDWLYHVDQGDFWLRQVWDNHQIURP-XQHWKURXJK6HSWHPEHU2QHRIWKHVLJQLͤFDQWDFFRPSOLVKPHQWV DFKLHYHGLQFOXGHVVHFXULQJ+RXVLQJ̵VͤUVW&RPPXQLW\/DQG7UXVWSURJUDPWKURXJKDSDUWQHUVKLSZLWK1HZWRZQ&'& and Phoenix Residential Investment Development Effort (PRIDE). Five homes will be placed in the Community Land Trust, which will ensure long-term affordable homeownership opportunities for residents. Another accomplishment includes the development of the Section 8 Landlord Incentive Program which incentivizes Phoenix landlords to sign a one-year Housing Assistance Payment (HAP) contract to make their properties available to Section 8 voucher holders. 6WDIIKDYHDOVRLGHQWLͤHG&LW\RZQHGODQGIRUWKHSRWHQWLDOGHYHORSPHQWRIDIIRUGDEOHDQGPL[HGLQFRPHKRXVLQJ Continuing to make progress in implementing the Housing Phoenix Plan will help the City reach the goal of creating a stronger and more vibrant Phoenix through increased housing options for all. 4. Monroe Gardens Completion - Monroe Gardens, located at 1441 E. Monroe St. in Council District 8, is a new 78-unit affordable housing community that will be completed in December 2020. This project replaces the demolished A.L. Krohn East Public Housing. Monroe Gardens converted 38 obsolete public housing units into 78 project-based Section 8 rental assistance units through the Rental Assistance Demonstration (RAD) program. The new apartment community ZDVGHVLJQHGWRWKH:DONDEOH8UEDQ&RGHDQGLQFOXGHVRQHWRͤYHEHGURRPXQLWVDFRPPXQLW\EXLOGLQJFRYHUHG SOD\JURXQGUDPDGDVDQGEDUEHTXHJULOOV)RUPHUUHVLGHQWVRI$/.URKQ(DVWZHUHSURYLGHGWKHͤUVWULJKWWRUHWXUQWR WKHQHZGHYHORSPHQWWRHQMR\WKHQHZPRGHUQHQHUJ\HIͤFLHQWDIIRUGDEOHKRXVLQJXQLWVORFDWHGQHDUDOLJKWUDLOVWDWLRQ in the Downtown Eastlake Community. 5. Soluna Groundbreaking - &KRLFH1HLJKERUKRRGV+RXVLQJ'HYHORSPHQW7KH*URXQGEUHDNLQJIRU6ROXQDWKHͤUVWSKDVH of the City’s Choice Neighborhoods (CN) Implementation Grant was held on Feb. 10, 2020. In 2018, the City of Phoenix was awarded a $30 million CN Grant from the U.S. Department of Housing and Urban Development to transform the Edison-Eastlake Community into a vibrant mixed-income neighborhood, linking housing redevelopment with new amenities, upgraded infrastructure, neighborhood economic growth and social services. With this grant, Housing will redevelop 577 obsolete public housing units into 1,011 mixed-income housing units in four phases over six years. 6ROXQDKDVPL[HGLQFRPHHQHUJ\HIͤFLHQWRQHWRͤYHEHGURRPXQLWVDQGLVVFKHGXOHGWREHFRPSOHWHGLQ)DOO 2021. SUSTAINABILITY 1. Heat Ready - 7KH2IͤFHRI6XVWDLQDELOLW\GHYHORSHGWKH&LW\̵V̸+HDW5HDG\̹SURJUDPLQFROODERUDWLRQZLWK$68WR mitigate the Urban Heat Island in Phoenix through the following initiatives: ̽ 'HYHORSHGD:DONVKHG*,6WRROEDVHGRQDQ,FDUXV0RGHOWKDWUDWHGHYHU\VWUHHWLQ3KRHQL[IRUSHGHVWULDQWUDIͤF EDVHGRQQHDUE\VHUYLFHVGHQVLW\DQGKHDWYXOQHUDELOLW\7KHͤUVWDSSOLFDWLRQRIWKHWRROLVIRUXVHLQWKH6WUHHW Transportation Department to prioritize tree planting in the right-of-way in vulnerable neighborhoods. Future applications will identify streets in vulnerable communities to be targeted for development as cool corridors. ̽ &RPSOHWHGWKH&LW\̵VDSSOLFDWLRQWR$68̵VQHZ+HDW5HDG\&LW\&HUWLͤFDWLRQSURJUDP3KRHQL[DQGWKUHHRWKHUFLWLHV ZLOOEHHYDOXDWHGLQIRUWKHQDWLRQ̵VͤUVW+HDW5HDGLQHVV$VVHVVPHQWIROORZHGE\WKHGHYHORSPHQWRIWKHQH[W VWDJHRIWKHSURJUDP̱+HDW5HDG\&HUWLͤFDWLRQ ̽ /DXQFKHGWKH&LW\̵VͤUVW(OHFWULF9HKLFOH3URJUDP VXSSRUWHGWKURXJKDJUDQWIURPWKH&DWHQD)RXQGDWLRQ  to hire a full-time electric vehicle program manager to roll out initiatives in 2020. 21 Table of Contents TECHNOLOGY 1. Phoenix Expands Free Wi-Fi Coverage Across the City - To ensure students and community members have free internet access, as some schools remain closed due to the global pandemic, the City of Phoenix expanded its Wi-Fi coverage outside of nearly 50 libraries, community, senior, and recreation centers to ensure all students have internet access. The Information Technology Services Department provided approximately 1.18 square miles of exterior Wi-Fi coverage, allowing residents to sit in parking lots and public areas outside of participating facilities to connect their devices daily from 8 a.m. to 9 p.m. Phoenix’s focus on digital equity ensures students have 13 hours of internet access a day to participate in distance learning and navigate online tools. Phoenix City Council approved the installation of Wi-Fi antennas on city-owned, public facilities in May funded through the Federal Coronavirus Aid, Relief, and Economic Security (CARES) Act. 2. Phoenix Residents Participate Virtually in City Council & Community Meetings - In partnership with the Phoenix City Clerk Department, the Information Technology Services Department worked with a vendor to create the ability for residents to participate virtually in City Council meetings during the global pandemic. Now, residents can electronically comment on City Council agendas, select their opinion of Support/Neutral/Oppose on an agenda item and/or electronically register to speak during a meeting. Similar virtual interactions were extended to community meetings. 3. Legacy Phone System Shut Down in 2020 - After successfully completing one of the largest IT projects the City has HYHUH[SHULHQFHGWKH1HWZRUNDQG7HOHSKRQH5HSODFHPHQW3URMHFWEHJDQWKHͤQDOFOHDQXSSKDVHHDUOLHUWKLV\HDU7KH multi-year $36.5 million project upgraded the data network and replaced a 30-year-old TDM-based Ericsson telephone system. The project began shutting down the old phone system on January 31, 2020. 4. Phoenix Named a 2020 ‘Top 10 Digital Cities’ Winner - The Center for Digital Government (CDG) named the City of Phoenix a Top 10 Digital Cities winner for the ‘500,000 or More Population Category’ in November. Phoenix ranked fourth in this highly competitive award, moving up one spot from last year. The 20th annual Digital Cities Survey examines the overall technology programs and plans of the City. It focuses on twelve categories ranging from aligned leadership to cybersecurity to data governance and transparency. New this year, the survey called for narratives about each city’s Covid-19 response. 22 Table of Contents OUR COMMITMENT TO EXCELLENCE 7KH&LW\RI3KRHQL[SXUVXHVH[FHOOHQFHWKURXJKRXWWKHRUJDQL]DWLRQ'HOLYHULQJTXDOLW\HIͤFLHQWDQGFRVWHIIHFWLYHVHUYLFHV to Phoenix residents is the cornerstone of our commitment to public service. The City of Phoenix is committed to helping residents understand how their tax dollars are being spent and making all our processes accessible and easy to understand. As part of efforts to advance transparency and further engage citizens in helping shape the City’s budget, the City provides one of the most open and accessible budget input and adoption processes in the country. The Zero-Based Inventory of Programs budget document, implemented in 2012 in response to the Mayor and City Council’s request for a more transparent, relevant, and detailed presentation of the City’s budget, provides important context for evaluating the costs of City programs. The document is online, searchable, and has links to allow for easy navigation. The Inventory of Programs document answers many questions for residents, including the following: • Does spending reflect my priorities? • How much of the costs to provide City services come from staff, contractual services or supplies? ̽ +DYHWKHFRVWVRIVWDIͤQJOHYHOVWRSURYLGHVHUYLFHVEHHQFKDQJLQJDQGE\KRZPXFK" • +RZPXFKRIVWDIͤQJFRVWVLVUHODWHGWRZDJHVDQGEHQHͤWV" • What programs and services are provided by the City? • How much do these programs cost? • How many City staff are involved in delivering these programs? • What sources of funding are used to pay for these programs? • What services are provided by these programs and how are they being measured? The City of Phoenix recognizes we must focus on the well-being of residents, a strong economy and a healthy environment, and embrace a full approach to sustainability. It is our responsibility to provide leadership and demonstrate our commitment WKURXJKLQQRYDWLYHDQGHIͤFLHQWSROLFLHVWKDWDVVXUHFOHDQODQGDLUDQGZDWHUDQGLPSURYHZRUNLQJDQGOLYLQJHQYLURQPHQWV After an extensive community consultation process, the Phoenix City Council adopted seven 2050 Environmental Sustainability goals in April 2016 that articulate the community's desired long-term environmental outcomes that would IXOͤOOWKH*HQHUDO3ODQDVSLUDWLRQVRID6XVWDLQDEOH'HVHUW&LW\:LWKWKHVHORQJWHUPGHVLUHGRXWFRPHVGHͤQHGSODQQLQJLV underway to identify additional short and mid-term goals and metrics to be included in the next update to the General Plan for the community's and Council's consideration. Along with environmental metrics, additional social and economic goals are being considered that would best articulate the community's desired outcomes to become a socially, economically and HQYLURQPHQWDOO\UHVLOLHQWFLW\6SHFLͤFJRDODUHDVLQFOXGH 1. Transportation Our goal by 2050 is to make walking, cycling, and transit commonly used and enjoyed in every Phoenix neighborhood. This goal will result in 90 percent of the population living within one-half mile of public transportation and 40 percent of the population choosing to commute by walking, biking, or using public transportation. This will be accomplished through two key actions: a. Implementing the Transportation 2050 Plan which includes: • Tripling the amount of light rail miles to 60. • Allowing 90 percent of the population to be a 10-minute walk from transit through the expansion of routes and service frequency (and shaded bus stops). • Creating 300 miles of walkable bike paths, greenways and vibrant urban canal paths. • Encouraging walking and biking and expanding the bike share system. b. Lowering the carbon intensity of the current transportation system by 80 percent by: • Developing 15 vibrant compact complete centers throughout the City to provide the majority of services residents need within their local community. • Encouraging environmentally friendly transportation modes and providing infrastructure for electric vehicles and low carbon fuel vehicles. 23 Table of Contents 2. Waste In 2050, Phoenix will create ZERO WASTE through participation in the "Circular Economy." To move toward Zero Waste by 2050, three key actions are needed: a. Increasing the number of products that are recyclable by incubating local businesses to capture new products from the waste stream. The City of Phoenix has established the Resource Innovation Campus at the 27th Avenue Transfer Station to support new businesses and constructed a new Compost Facility for the processing of green waste and organics which opened in June 2017. b. Supporting the transition to a Circular Economy and encouraging the retail industry to provide products that are either 100% recyclable or able to be repurposed at end of life. c. Expanding the current recycling program to remove commonly recycled products from the waste stream (and reducing the number of non-recyclable products from the recycle bins) through public education and awareness campaigns and new programs that increase access to recycling services for residents and businesses. 3. Water Stewardship The 2050 goal, essentially a perpetual one, is to provide a clean and reliable 100-year supply of water. The City of Phoenix has been proactive over the last century building the necessary infrastructure and systems to provide a clean DQGUHOLDEOHVXSSO\RIZDWHUIRUWKHIRUHVHHDEOHIXWXUH3KRHQL[ VZDWHUPDQDJHPHQWLVH[HPSOLͤHGWKURXJKLWVZDWHU conservation programs. The three action areas of which it has been a long-established national leader are: a. Groundwater management: Supported by the nation-leading Groundwater Act of 1983, Phoenix is a net-positive contributor to groundwater using only Ҁ of its allocation from the Colorado River and diverting the other ѿ toward groundwater recharge. b. Wastewater Management: Phoenix recycles 89 percent of its wastewater for uses such as irrigation and cooling for the Palo Verde Nuclear Plant. Phoenix also captures methane emissions from wastewater treatment and partnered with Ninety-First Avenue Renewable Biogas, LLC to build a facility to generate renewable natural gas from the wastewater treatment for use in vehicles. The bio-gas facility opened in February 2019. c. Water and Wastewater Innovation: Phoenix is an established leader in water innovation and was recognized for three innovative projects; the $6 million annual Colorado Water Resiliency Fund, the “Tucson-Exchange” where Phoenix stores water resources underground in Tucson to be used during low water years, and the Tres 5LRV:HWODQGVZKHUHWUHDWHGZDVWHZDWHUXQGHUJRHVDͤQDOSROLVKLQJWKURXJKFRQVWUXFWHGZHWODQGVFUHDWLQJD vibrant ecosystem. 4. Building and Land Use All new buildings will be "net-positive" in terms of energy and materials, meaning they will produce more energy than they consume. This can be accomplished through employing passive design principles, such as highly insulated wall assemblies and on-site renewable energy. This goal will apply to all new construction after 2050. Buildings exist today that already meet this standard, like those that meet the Living Building Challenge 3.0. At the community scale, the goal will be to establish 15 vibrant compact complete centers where the majority of services needed by each community are provided locally; residents will be able to live, work, and play all within walking distance. 5. Parks, Preserves, and Open Spaces More than many cities, Phoenix residents have a strong connection to the natural eco-system around them; most LGHQWLI\VWURQJO\ZLWKOLYLQJLQDGHVHUW7KHJRDORIKDYLQJDOOUHVLGHQWVZLWKLQDͤYHPLQXWHZDONRIDSDUNRU open space is enhanced through two complementary actions: a. Adding 150 miles of paths, greenways, and bikeways throughout the City, and transforming an additional 150 PLOHVRIFDQDOVLQWRYLEUDQWSXEOLFVSDFH3KRHQL[KDVPRUHFDQDOVWKHQ9HQLFHEXWVLJQLͤFDQWXSJUDGHVDUH needed to make them widely used and enjoyed. b. Reducing urban heat-island through green-infrastructure (such as "cool roofs", permeable pavement, and stormwater capture) as well as doubling the current tree and shade canopy to 25% by 2030. Structured shade and trees facilitate increased walking and biking, increase property values, and can be used to create great public gathering spaces in communities. 6. Clean Air By 2050, Phoenix will achieve a level of air quality that is healthy for humans and the natural environment. This includes out performing all federal standards and achieving a visibility index of good or excellent on 90 percent of days or more. (Depending on the year, Phoenix currently achieves this good or excellent visibility rating 70%-80% of days). 7. Local Food Systems Increase community access to fresh and healthy food by creating a vibrant food system. Many residents live in "food deserts" where they are more than one mile from fresh and healthy food. In Phoenix, there are 43 food deserts which are more than 75 percent of the total number of food deserts in Maricopa County. Increasing neighborhood 24 Table of Contents access to fresh and healthy food will improve community health and reduce diet-related disease. By 2050, we want to establish a sustainable, healthy, equitable, local food system by eliminating food deserts, increasing urban agriculture, HVWDEOLVKLQJIDUPHUVPDUNHWVLQHDFKRIWKHFLW\ VXUEDQYLOODJHVDQGVLJQLͤFDQWO\UHGXFLQJWKHUDWHVRIKXQJHU obesity, and diet-related disease. Additionally, the City Council adopted the 2025 Food Action Plan in March 2020 to outline actions and policies, develop and enhance partnerships, to support people most impacted by food insecurity and hunger, and to achieve the goals of access to healthy food for everyone in Phoenix. Other examples of environmental stewardship include: • The City of Phoenix Water Services Department launched a digital education page to make learning from home convenient for everyone. The Phoenix Water Cloud page offers water conservation resources for all ages including DFWLYLW\ERRNVJDPHVDQGOHVVRQSODQVWRNHHSWKHNLGVOHDUQLQJDWKRPH$GXOWVFDQͤQGUHVRXUFHVRQKRZWRUHSDLU common household leaks and information about landscape watering. See the website at phoenix.gov/WaterCloud. In addition, the department created an interactive water calculator for residents to help better understand their water usage. At phoenix.gov/Waterservices/Usage-Calculator residents can enter information about their household and the calculator will provide their optimal monthly water usage. Resources are also available to help you conserve water and save on your bill. • The City of Phoenix Street Transportation Department is launched a pilot study to evaluate cool pavement treatment. Asphalt collects and retains heat during the day and releases it slowly at night. Phoenix is among several cities that are experiencing the urban ‘heat island’ effect due to the retention of heat within the built environment. U.S. Environmental Protection Agency data shows the difference in nighttime temperatures in heat island areas can be as much as 22 degrees hotter than temperatures measured outside the heat island. Higher nighttime temperatures lead to more energy consumption, more greenhouse gas emissions, air pollution and other harmful effects. Cool pavement is lighter in color than traditional asphalt or other seal coatings. Cool pavement reflects back the sunlight that hits it. Because the surface reflects, rather than retains heat, cool pavement has the potential to offset rising nighttime temperatures in Phoenix. It should also help cool neighborhood areas that don’t have much shade from the sun. Cool pavement is not a paint treatment. It is a water-based asphalt sealant that is applied on top of the existing asphalt pavement. It contains no harmful chemicals and bonds with the asphalt layer underneath. Esteban Park at 32nd Street and Roeser Road was WKHͤUVWVLWHWRUHFHLYHFRROSDYHPHQWWUHDWPHQW(LJKWRWKHUORFDWLRQVZKHUHVWUHHWVZHUHLQJRRGFRQGLWLRQEXWZHUH GXHIRUDVXUIDFHWUHDWPHQWZHUHVHOHFWHGLQFRQVXOWDWLRQZLWKWKH0D\RUDQG&RXQFLORIͤFHV7ROHDUQPRUHDERXWFRRO pavement, visit phoenix.gov/streets/coolpavement. • The City of Phoenix Water Services Department is pleased to announce that the Renewable Natural Gas (RNG) facility at the 91st Avenue Wastewater Treatment Plant received honorable mention in the 2020 World Changing Ideas Awards, in the energy category. This facility is the largest wastewater treatment biogas-to-renewable natural gas facility of its kind in the United States. The gas is a result of the natural breakdown of organic matter in the wastewater treatment process. Prior to this operation, the majority of this gas was burned off using flares. Through this new effort, 600,000 cubic feet of gas will be treated annually and transferred to a nearby commercial gas pipeline, where it will be sold on the open market as green energy. The carbon neutral RNG produced at this facility offsets approximately 44,671 metric tons of CO2 per year, the equivalent of taking roughly 70,452 passenger vehicles off the road for one year. The World Changing Ideas Awards showcased how some of the world’s most inventive entrepreneurs and companies are addressing grave global challenges. • The Phoenix City Council recently approved the implementation of a 6-month pilot program that will allow Phoenix solid waste customers to schedule a home pickup of their household hazardous waste (HHW) materials beginning mid-January 2021.The HHW Home Pickup Pilot Program will be managed by the Phoenix Public Works Department in partnership with Kay Environmental Services, a local company that offers professional collection and handling of hazardous waste materials. Public Works is responsible for the proper collection, diversion and disposal of trash and recyclable materials from more than 400,000 Phoenix residential customers. This home pickup program makes it easy for residents to properly dispose of hazardous materials, including things like batteries and paint. It is expected this HIIRUWZLOOUHVXOWLQXSWRWRQVRIZDVWHGLYHUWHGIURPODQGͤOOVDQQXDOO\DWQRDGGLWLRQDOFRVWWRUHVLGHQWV • The City of Phoenix once again earned the Bronze-level award as a Bicycle Friendly Community for its commitment to making the City a better, safer place to bicycle. The League of American Bicyclists’ Bicycle Friendly America program sets standards for how communities build and mark progress toward safer and better bicycling options. The Bronze level award recognizes Phoenix’s commitment to improving conditions for all people who bike, through investments in bicycle infrastructure, bicycle education, adult and youth bicycle safety programs and events like Bike-to-Work-Day. Phoenix joins 482 communities across the country in the pursuit of safer streets and better bicycling for everyone. Phoenix currently has 1,062 bike lane miles with that number continuously growing. With support from the Mayor and &LW\&RXQFLOWKH6WUHHW7UDQVSRUWDWLRQ'HSDUWPHQWFUHDWHGWKH2IͤFHRI3HGHVWULDQ6DIHW\DQGWKH$FWLYH7UDQVSRUWDWLRQ Program as part of our commitment to improving safety and active transportation options citywide. 25 Table of Contents • The Phoenix Parks and Recreation Department’s recent renovation of Piestewa Peak Trailhead was honored with the Natural Resources Award during the Arizona Parks and Recreation Association’s (APRA) Best of the Best Virtual $ZDUGV&HUHPRQ\KHOG$XJXVW7KHUHQRYDWLRQLVSDUWRIDͤYH\HDULQIUDVWUXFWXUHLPSURYHPHQWSODQIRUWKH Phoenix Mountains Preserve, which started in 2017, and is funded by the voter-approved Phoenix Parks and Preserve ,QLWLDWLYH 333, 7UDLOKHDGLPSURYHPHQWVLQFOXGHGUHFRQͤJXUHGSDUNLQJDUHDVWKDWDUHFRQQHFWHGE\DQHZIRRW ORQJYHKLFOHSHGHVWULDQEULGJHWKDWLPSURYHGWUDIͤFIORZDQGDFFHVVWRWUDLOV5HHQJLQHHULQJRIWKHSDUNLQJORWVFUHDWHG an additional 22 parking spaces for what is one of the City's most popular hiking destinations. Trail users can also now HQMR\DQHZEXLOGLQJZLWKVL[LQGLYLGXDOUHVWURRPVDQGDUDQJHUVWDWLRQWKUHHGULQNLQJIRXQWDLQVDQGDZDWHUERWWOHͤOO station, four new ramadas and two renovated ramadas, as well as improved sidewalks, curbing, lighting and signage. Additionally, a new 60-foot-tall concrete and steel entry monument was constructed to greet visitors as they enter the trailhead. The Phoenix Mountains Preserve is located within the ancestral homeland of what is today represented by the Tohono O'odham Nation, Gila River Indian, Ak-Chin Indian and Salt River Pima Maricopa Indian communities. $GGLWLRQDOO\3LHVWHZD3HDNLVQDPHGLQKRQRURI/RUL3LHVWHZDWKHͤUVW1DWLYH$PHULFDQIHPDOHWRGLHLQFRPEDW7KH GHVLJQDGGUHVVHVWKHVLJQLͤFDQFHRIWKHORFDWLRQWRWKHWULEDOFRPPXQLW\DVZHOODVFRQVHUYDWLRQDQGQDWXUDOUHVRXUFH management. • Tree and Shade Master Plan - The Tree and Shade Master Plan provides a roadmap to creating a 21st Century desert city. The urban forest is a keystone to creating a sustainable city because it solves many problems with one single solution. By investing in trees and the urban forest, the City can reduce its carbon footprint, decrease energy costs, reduce storm water runoff, increase biodiversity, address the urban heat island effect, clean the air, and increase property values. In addition, trees can help to create walkable streets and vibrant pedestrian places. More trees will not solve all the problems, but it is known that for every dollar invested in the urban forest results in an impressive return of LQEHQHͤWV*RDOVRIWKH7UHHDQG6KDGH0DVWHU3ODQLQFOXGH 1. Raise Awareness by: • Establishing partnerships. • Educating the public and staff through programs, publicity and media. • Leading by example - In 2018-19 City Council approved funding of $450,000 annually to improve tree replacement in the right-of-way. For 2021-22 City Council approved funding for the Cool Corridors Program to plant 1,800 trees annually in the right-of-way. 2. Preserve, Protect, and Increase by: • Creating an Urban Forest Infrastructure Team. • Conducting a tree inventory for city-owned facilities and rights-of-way. • Developing and adopting best management practices. • Researching and developing dedicated revenue streams to purchase trees. 3. Sustain Maintainable Infrastructure by reviewing City ordinances to possibly include: • Engineered shade standards. • Streamlined permitting for engineered shade. • Tree permitting. • Tree protection on construction sites. • Incentives and alternatives. • Planting and irrigation standards. • Landscaping standards based on the concepts of right tree, right place. 26 Table of Contents The City’s commitment to maintaining a highly trained and well-educated workforce is imperative to achieving the maximum contribution a workforce can provide to the customers they serve. In addition to the community’s recognition of a job well done, the City and its employees have also been recognized by a variety of professional organizations for its continuous SXUVXLWRIH[FHOOHQFH7KHIROORZLQJLVDOLVWRIMXVWDIHZDZDUGVDQGUHFRJQLWLRQVUHFHLYHGE\WKH&LW\GXULQJWKLVͤVFDO\HDU • The City of Phoenix recently was named the 2020 Gold Winner in the category of Best Government Response-Helping People and Businesses During COVID-19 by Public Relations World Awards (PRWA). This award recognizes outstanding work in agency and in-house public relations, corporate communications, marketing and investor relations from around the world. Because of the pandemic, PRWA created the new category to honor the contributions of individuals, teams and organizations that have demonstrated creativity, resourcefulness and innovative thinking to assist the SXEOLFLQGHDOLQJZLWKWKHLPSDFWVRI&29,'̸7KHFLW\RI3KRHQL[UHVSRQGHGTXLFNO\DQGHIͤFLHQWO\WRWKH&29,' pandemic. We stepped up to provide accessible, no-cost testing to every resident with help from community partners and local healthcare providers,” said Phoenix Mayor Kate Gallego. Phoenix partnered with several local healthcare providers to deliver free drive-thru COVID-19 testing at various city-owned parks. Even in the middle of Phoenix's summer season, the drive-thru sites were flocked by hundreds of vehicles, which captured the national media's attention. In August, City leaders saw an additional need to bring COVID-19 testing at no cost to the underserved communities of Phoenix. They conceptualized a mobile unit that could bring the testing to community members experiencing various challenges that prevent them from getting to a testing site--transportation, language barriers, health and personal reasons. A multi-departmental collaboration resulted in the COVID-19 Mobile Testing Van, which currently is managed and operated by the City's medical partner, Vincere Cancer Center. Phoenix Public Works' Fleet Services division procured the cargo van and customized it to the medical staff's needs, while Phoenix Communications 2IͤFHGHVLJQHGWKHFRORUIXOZUDSWKDWPDNHVWKH9DQVWDQGRXW7RGDWHWKH&29,'0RELOH7HVWLQJ9DQKDV administered more than 17,000 tests at 55 different locations since its launch in mid-August. For the drive-thru testing, 75 events have been held in city-owned parks, as well as schools and churches. The drive-thru tests have provided more than 12,000 tests to individuals ages 6 months and above. • The City of Phoenix was recently honored with a Distinguished Budget Presentation Award by the Government Finance 2IͤFHUV$VVRFLDWLRQ *)2$ IRULWVFXUUHQWEXGJHW7KLVLVWKHWKFRQVHFXWLYHDZDUGIRUWKHFLW\ZKLFKLVEHVWRZHG through a peer-review process. The GFOA gives the Distinguished Budget Presentation Award to government organizations that most effectively present their budget information according to nationally recognized guidelines. This HQVXUHVWKDWWKHEXGJHWGRFXPHQWVSURGXFHGFDQVHUYHDVDSROLF\JXLGHDͤQDQFLDOSODQDQRSHUDWLRQVRYHUYLHZDQG a communications tool, and are clear to understand and encourage budget transparency. • The City of Phoenix earned a perfect score of 100 on the 2020 Human Rights Campaign (HRC) Municipal Equality Index for the seventh year in a row for its ongoing efforts to ensure equal treatment of members of the lesbian, gay, bisexual and transgender community. The HRC uses the Municipal Equality Index score to examine how inclusive municipal ODZVSROLFLHVDQGVHUYLFHVDUHRIWKH/*%74FRPPXQLW\ZKROLYHDQGZRUNLQHDFKFLW\3KRHQL[KDVPDLQWDLQHGD perfect score since the passage of the City’s anti-discrimination ordinance in 2012. The ordinance makes it unlawful to discriminate against someone based on sexual orientation, gender, identity or disability for the purpose of employment, public accommodations, housing, and government contracts. • The City of Phoenix's Human Services Department director, Marchelle Franklin, was named one of the AZ Business magazine's Most Influential Women in Arizona Business for 2020. As one of only 50 Arizona women to receive this honor, Franklin was recognized for her 18 years of public service and her mission and commitment to meet the needs of at-risk residents. Franklin manages a $95 million budget and leads over 375 employees as the Human Services Director. She joined the City of Phoenix in 2002 and prior to her current role, served as director of the Phoenix Police Department Community Affairs division, deputy director for community development and government relations at Phoenix Sky Harbor International Airport and separate roles as chief of staff for the Mayor and City Council. “It is an honor and a testament to Marchelle's hard work and commitment that she is recognized by AZ Business magazine for contributions she makes to the community," Phoenix City Manager Ed Zuercher said. “During her two decades with the City, Marchelle's career embodies passion for people and the impact that better systems and structures have on our residents' quality of life." Before transitioning to municipal work, Franklin spent nearly 15 years in the private sector working in human resources management. In addition to her role as a member of the Board of Directors at the Fiesta Bowl, Franklin also serves as Board Secretary for The Desert Pearls Foundation, Inc. • City of Phoenix Director of Golf, Greg Leicht, was honored as the Southwest PGA Golf Professional of the Year. This is the highest annual award bestowed by the Southwest PGA on a PGA Professional. Leicht is the 46th recipient of the award. The Professional of the Year award is given to those who have great leadership qualities, strong moral character and a substantial record of service. Leicht has served as the City's director of golf since 2018 and oversees the operation of its eight municipal courses. During his tenure, he's directed a variety of upgrades to those facilities, including renovated and re-branded restaurants that opened in 2019. Those improvements contributed to a 12.5 SHUFHQWLQFUHDVHLQURXQGVSOD\HGGXULQJWKHͤVFDO\HDU/HLFKWHDUQHGKLV3*$&HUWLͤFDWLRQLQ*HQHUDO Management and has worked at number of courses around the Phoenix metro area, including the TPC Scottsdale, The Phoenician and Vistal Golf Club. While at Vistal, Leicht hosted the Special Olympics State Golf Championships for 12 years and continues to be heavily involved with that event. 27 Table of Contents • Ed Faron, Accredited Airport Executive, Manager of the Phoenix Deer Valley Airport, was named 2020 Airport Executive of the Year by the Arizona Airports Association. Mr. Faron has been with the City of Phoenix for 18 years, the last six as airport manager for Phoenix Deer Valley, which is the busiest general aviation airport in the country. He works tirelessly to advocate for the growth and development of Deer Valley Airport and for aviation in Arizona as a whole. A pilot himself, Ed’s deep passion for general aviation allows him to run a seamless operation and advocate for pilots, tenants, and stakeholders throughout the state of Arizona. The City’s Mission and Vision statements continue to serve as a common source of motivation for City of Phoenix employees to do all that they can to make Phoenix better. CITY OF PHOENIX MISSION STATEMENT 7RLPSURYHWKHTXDOLW\RIOLIHLQ3KRHQL[WKURXJKHIͤFLHQWGHOLYHU\RIRXWVWDQGLQJSXEOLFVHUYLFHV CITY OF PHOENIX VISION STATEMENT We will make Phoenix a great place to live, work and visit by fostering a dynamic and sustainable environment with exceptional public services. CITY OF PHOENIX VALUES STATEMENTS We are committed to excellence through: 1. Exceptional Customer Service We exist to provide responsive and consistent customer service to the community and to City employees. We exhibit empathy by listening to each other and to the public in our efforts to deliver services that improve people's lives. 2. Integrity and Transparency We safeguard the public trust through honest business practices and open communication. Our credibility with the public depends on our strong ethical stewardship of all resources. 3. Respect for Diversity We recognize and respect the differences that make us unique. We embrace diversity in everything we do to create a healthy and productive community and workplace. 4. Personal Empowerment We trust our employees to always own the problem and solution in addressing business challenges. We value and invest in the growth and development of our employees. 5. Engaged Teamwork We engage employees and the public in productive and respectful dialogue. Our success hinges on dynamic and interdependent partnerships. We achieve our highest performance by working together. 6. Consistent Professionalism :HZRUNWRWKHKLJKHVWVWDQGDUGVRISURͤFLHQF\DQGH[SHUWLVH:HDUHDFFRXQWDEOHWRRXUVHOYHVWRWKH&LW\DQGWRWKHSXEOLF 7. Creativity and Innovation for Excellent Results We promote an environment of inventive thinking and imaginative solutions to community needs. We encourage a spirit of continuous improvement in all our activities to exceed community expectations. Not only do City of Phoenix employees follow these guiding principles in their workplace, they show they care about the FRPPXQLW\WKH\VHUYHE\FRQWULEXWLQJͤQDQFLDOO\WRWKH9DOOH\RIWKH6XQ8QLWHG:D\WKURXJKWKH&LW\RI3KRHQL[&RPPXQLW\ Service Fund Drive. The Community Service Fund Drive (CSFD) has provided City employees with the ability to pool their charitable giving dollars together resulting in the donation of millions of dollars to worthwhile health, human service, environmental and conservation organizations. Our workplace partners - Valley of the Sun United Way (VSUW) and the Environment Fund of Arizona (EFAZ) - help us offer employees plenty of choices for employee giving. Since the campaign began in 1980, employees have raised more than PLOOLRQLQFKDULWDEOHJLYLQJWRGRQDWHWRZRUWKZKLOHFDXVHV7KHVHGRQDWLRQVKHOSIXQGPRUHWKDQORFDOQRQSURͤW organizations in Arizona, with the majority of those providing services in Maricopa County. This year, employees raised more than $620,000 during the City’s “Activate Change” Valley of the Sun United Way campaign. 28 Table of Contents City of Phoenix employee organizations and departments coordinate various fund-raising events to assist communities in need both locally and globally. In addition, City employees volunteer in the community with many organizations serving youth, homeless, disadvantaged, marginalized and other areas of need. The following are a few public service successes, large and small, that improved the quality of life for residents, businesses and visitors. • In February 2021, the City of Phoenix and Local First Arizona Foundation won an award for the Feed Phoenix Initiative from the Arizona Recycling Coalition. The organization recognized the contribution that the Feed Phoenix Initiative has made to feeding COVID-19 impacted individuals and families in our most vulnerable communities. The initiative is providing food and helping to preserve small businesses and jobs. Produce from local farmers is purchased for use in healthy, culturally appropriate meals that are being prepared by local restaurants and caterers and delivered to social service organizations serving people impacted by the pandemic and living in food deserts. To date, about 65,000 meals and nearly 3,000 CSA (community-supported agriculture) shares have been delivered by 8 farms and 45 restaurants/ caterers to 17 organizations in Phoenix. • The City of Phoenix continues to maintain its streets more than ever before. The hottest summer on record and a global pandemic did not slow street maintenance crews and contractors who successfully completed the City's busiest SDYLQJVHDVRQ\HW7KHVHHVVHQWLDOZRUNHUVFRXOGQRWZRUNIURPKRPHEXWZLWKOHVVWUDIͤFSDYHPHQWSURMHFWVPRYHG quickly and in a more convenient way. Every year since its implementation in 2018, Phoenix's Accelerated Pavement Maintenance Program has broken records, and 2020 was busy, with approximately 130 more miles of streets treated than in 2019. Approximately 590 miles of Phoenix streets received pavement maintenance treatment in 2020 – about SHUFHQWRIWKHFLW\ VHQWLUHVWUHHWQHWZRUN7KH$FFHOHUDWHG3DYHPHQW0DLQWHQDQFH3URJUDPEULQJVPRUHEHQHͤWV than smooth roads to Phoenix. People walking and riding bicycles will also notice improvements. A freshly paved street is a blank canvas – Street Transportation staff examine each roadway for opportunities to improve safety and bicycle connectivity. More than 40 miles of new bicycle lanes were installed and approximately 30 miles of bicycle lanes were XSJUDGHGWRLQFOXGHEXIIHUVLQͤVFDO\HDU$GGLWLRQDOO\PRUHWKDQFXUEUDPSVZHUHXSJUDGHGWRPHHWWKH most current ADA standards through the 2020 pavement maintenance program. • The City of Phoenix made available to the public a new customer experience, myPHX311. Customers will have access to a new mobile app and web portal to access their City services account, pay their bill, request service for their home or submit requests for issues in the community. The app will be available for both Apple and Android devices. The web portal will replace the current “Phoenix at Your Service” web page. Users on that page will also be able to interact with a YLUWXDODVVLVWDQWDQGUHFHLYHQRWLͤFDWLRQVYLDWH[WDQGHPDLOWRLPSURYHFXVWRPHUVHUYLFHZLWKRXWWKHQHHGIRULQSHUVRQ interaction. One of the robust features of this new service will be the virtual assistant or “chat bot.” A chat bot allows the user to “talk” via typing to a virtual customer service agent to help them with their needs. GOOD WORK MATTERS! Good work continues to matter here at the City of Phoenix. With roughly 15,000 employees who work around-the-clock, what we do makes a difference 24/7. Sometimes it’s truly ‘the little things’ that make the biggest impact to our customers. Here are a few examples of good work that make Phoenix a great city. • Matt Davis, an Environmental Specialist with the City of Phoenix Public Works Department, was waiting for the light to turn green at the intersection of Camelback Road and 83rd Avenue, when a vehicle traveling south on 83rd Avenue immediately caught his attention. The vehicle ran through a red light, headed straight to the sidewalk and eventually FUDVKHGLQWRWKHWUDIͤFSROHRQWKHVRXWKZHVWFRUQHURIWKHLQWHUVHFWLRQ0DWWGURYHWRZDUGWKHYHKLFOHWXUQHGRQWKH beacon lights of his work vehicle, parked, and approached the vehicle. The female driver was having severe seizures and was convulsing and had a three-month old child in the vehicle. Matt wasted no time in calling 911 for immediate help. Right after calling 911, the driver of the vehicle slowly gained consciousness, after Matt was assured the woman ZDVVWDEOHDQGFRKHUHQWKHTXLFNO\FKHFNHGRQWKHEDE\LQWKHEDFNVHDW7KHPRQWKROGDSSHDUHGWREHͤQHGLGQRW show any signs of injury, and seemed unfazed by the whole incident. Matt waited with the driver and child a few more minutes until the Fire Department arrived on the scene. • Phoenix resident, Ann Barnett, has been routinely impressed by the punctuality and service provided by two of our Solid Waste Equipment Operators (SWEOs), the men and women who collect trash and recycling daily. Amidst all the chaos this year with the pandemic, Barnett wrote, “They never missed a scheduled service, time or date . . .." She added, “I could set my alarm clock by them if I needed to", and she is absolutely right! Phoenix's SWEOs have been showing up and showing out for their City, during these uncertain times. Lucas Coleman, an 8-year vet with the Public Works Department explains, “We are expected to provide an essential service that everybody needs, and we want to 29 Table of Contents provide exceptional customer service for our residents." Coleman works Barnett's route in west Phoenix and said at the beginning of the pandemic, “thank you" signs attached to solid waste containers were common. In response to receiving compliments and praise from residents, Coleman plays it cool. “That's the stuff that means something, it makes you feel like people truly appreciate what we are doing out here," he said. The pandemic has not been easy on SWEOs. As more and more people were advised to stay home, Phoenix saw sizeable increases in solid waste tonnage this year—20% increase in trash and recycling and 15% increase in bulk trash collection. The increase in material has extended workdays and sometimes forced crews to work into the weekends. These essential workers are heroes to the residents of Phoenix, but for Coleman, who shares the same sentiment as his colleagues, “It's just an everyday job." As for Barnett, she wants to make sure our SWEOs get the credit they deserve. “(SWEOs) are as essential as police and ͤUH̿LPDJLQLQJRXUFLW\ZLWKRXWJDUEDJHFROOHFWLRQWKURZVXVEDFNFHQWXULHVVKHZURWH • Early Monday morning, just before 7 a.m., Solid Waste Equipment Operator Blaine Freeman, a recycling truck driver, DVVLVWHGQHLJKERUVDQGWKH3KRHQL[)LUH'HSDUWPHQWWRNHHSDIDPLO\VDIHIURPDKRXVHͤUHLQQRUWK3KRHQL[$V Freeman was working his recycling route, he noticed smoke a few blocks away and decided to head that direction WRPDNHVXUHHYHU\WKLQJZDVRND\6XUHHQRXJKDKRPHZDVRQͤUH$VGHVFULEHGE\RQHUHVLGHQWRQOLQH)UHHPDQ alongside other residents, proceeded to knock on doors without hesitation to make sure family members were out of WKHLUKRPHZKLOHUHSRUWLQJWKHͤUHWR7KDQNIXOO\WKHͤUHZDVUHSRUWHGLQWLPHIRU3KRHQL[)LUHFUHZVWRFRQWURO WKHͤUHDQGSUHYHQWVSUHDGWRWKHUHVWRIWKHKRXVH1RERG\ZDVLQMXUHGGXULQJWKHLQFLGHQW)UHHPDQDVROLGZDVWH equipment operator with the Phoenix Public Works Department, has more than 12 years of experience as a collection truck driver. He has been the recycling driver for the area near Jomax and the I-17 and for six years now and has gotten familiar with the characteristics of the neighborhood. He views his job as more than just collecting waste and/ RUUHF\FODEOHPDWHULDOVEXWDOVRDVDFRPPXQLW\ZDWFKGRJ$VWKHͤUHHQVXHG)UHHPDQH[SODLQHG̸(YHU\ERG\FDPH WRJHWKHUOLNHDIDPLO\7KHQHLJKERUVP\VHOIDQGWKHͤUHGHSDUWPHQW,DPH[WUHPHO\SURXGWREHD&LW\RI3KRHQL[ employee”. • This year, Phoenix Planning and Development Department staff used “Building Safety Month” as the platform to launch a community project that will continue for most of the summer to repair and rebuild a Phoenix woman’s home after LWZDVGDPDJHGE\ͤUHLQ2FWREHURI3KRHQL[UHVLGHQW0DU\&KDYH]KLUHGDQXQOLFHQVHGFRQWUDFWRUWRLQVWDOOD ZDWHUKHDWHUDQGZLWKLQKRXUVRIWKHPOHDYLQJWKHͤUHVSDUNHG7KHKRPHKDVEHHQZLWKRXWHOHFWULFLW\DQGWKHGDPDJH went unrepaired for months as the expenses were too much for Mary to afford. Planning and Development Department Field Supervisor, Don Councilor, learned of Mary’s situation and launched the effort to gather contractors to rally around her to donate their services and materials to get the critical repairs completed before the extreme Arizona heat sets in. The response was above and beyond and within days of this project starting, Mary’s electricity was restored. Now, the roof has been replaced, the bathroom shower has been retiled, the ceiling repaired, air conditioning was installed, smoke detectors have been installed and all life-safety measures are in working order. “We are seeing contractors that normally compete with each other coming together for this cause,” said Don Councilor. “I knew people in the industry would respond but they went above and beyond.” “It is so wonderful,” said Mary Chavez. “They are doing so much. I’m very thankful”. • The City of Phoenix Aviation Department earned recognition as a GBAC STAR™ Facility Accreditation Program. Phoenix Sky Harbor, Phoenix Deer Valley and Phoenix Goodyear airports have all received this accreditation. “To receive this distinction is a testament to the Aviation staff’s commitment to making sure travelers, operators, airlines, concessionaires, tenants and business partners have the safest environment possible when interacting with us" said Phoenix Mayor Kate Gallego. The Global Biorisk Advisory Council's GBAC STAR™ facility accreditation program is an outbreak prevention, response, and recovery accreditation for facilities. It represents a high level of achievement within the cleaning industry, including 20 components that a facility must meet to achieve this accreditation. Facilities must demonstrate that they have established and maintained a cleaning and disinfecting program to minimize risks of infectious diseases; have employed the proper protocols to clean and disinfect facilities; and have staff who are trained for outbreak and infectious disease preparation and response. Earning the GBAC STAR™ accreditation is the gold standard in a performance-based program, and it demonstrates commitment to safety and preparedness. Throughout the COVID-19 pandemic, Phoenix Sky Harbor, Phoenix Deer Valley, and Phoenix Goodyear airports have employed a number of initiatives to ensure a safe, welcoming and healthy environment for those coming through the airports. Phoenix Sky Harbor, Deer Valley and Goodyear airports continue to provide world-class safe, clean facilities and service to our customers. As you can see, we work very hard to earn our reputation as a well-run city. We strive to be leaders in our professions. Each day the values of our organization – what we call our “Mission and Vision” – are at the core of everything we do. 30 Table of Contents 31 Table of Contents PHOENIX GROWTH 32 Table of Contents COMMUNITY PROFILE AND TRENDS Phoenix was founded in 1870 as an agricultural community and was incorporated as a city in 1881. The original City charter was adopted in 1913 and has been amended by Phoenix voters from time to time since then. The charter allows Phoenix to determine its governmental structure and levy revenue and privilege license taxes. A council-manager form of government was also adopted in 1913. Under this organizational structure, the Mayor and Council appoint a city manager to act as the FKLHIRSHUDWLQJRIͤFHU7KH&LW\&RXQFLOVHWVSROLF\GLUHFWLRQDQGWKH&LW\0DQDJHULVUHVSRQVLEOHIRULPSOHPHQWLQJWKRVH SROLFLHVLQDQHIͤFLHQWDQGHIIHFWLYHPDQQHU,QDJURXSRIUHVLGHQWVLQLWLDWHGDQHIIRUWWRPRYHWRDGLVWULFWV\VWHP for electing council members. These residents were concerned that at-large elections resulted in an organization that was less responsive to neighborhoods. The initiative was passed by the voters of Phoenix, and the number of council seats was increased from six to eight. The mayor continued to be elected at-large. ECONOMIC DIVERSITY Phoenix has grown steadily, especially since 1950. The 1900 Census recorded Phoenix‘s population at 5,544. In 1950, the City occupied 17 square miles with a population of almost 107,000, ranking it 99th among American cities. The 2010 Census recorded Phoenix population at 1,447,128. The City currently encompasses 519.8 square miles. 7RGD\3KRHQL[LVWKHͤIWKPRVWSRSXORXVFLW\LQWKH8QLWHG6WDWHVVWDWHFDSLWDORI$UL]RQDDQGFHQWHURIWKHPHWURSROLWDQ area encompassed by Maricopa County. This metropolitan area also includes the Cities of Mesa, Glendale, Tempe, Scottsdale, Chandler, Peoria, Surprise, Goodyear, Avondale, El Mirage, Tolleson and the Towns of Gilbert and Buckeye. It is situated 1,117 feet above sea level in the semi-arid Salt River Valley. The area is widely known for its mild, sunny winters and hot summers and receives an average rainfall of seven inches a year. 7KH3KRHQL[PHWURSROLWDQDUHDHPSOR\PHQWPL[LVZHOOGLYHUVLͤHGDQGIDLUO\VLPLODUWRWKDWRIWKH8QLWHG6WDWHVDVDZKROH $QH[FHSWLRQLVFRQVWUXFWLRQDQGͤQDQFLDOHPSOR\PHQWZKLFKFRPSULVHPRUHRI3KRHQL[̵VHPSOR\PHQWPL[WKDQWKH8QLWHG States average due to historical rapid population and employment growth. Additionally, the Phoenix area’s manufacturing mix is much more concentrated in high technology than the United States. The high technology manufacturing sectors are cyclical in nature and may be more impacted during periods of economic slowing than other manufacturing sectors. The primary employment sectors and their share of total employment in the Phoenix metropolitan area consist of service LQGXVWU\  WUDGH  JRYHUQPHQW  ͤQDQFLDODFWLYLWLHV  PDQXIDFWXULQJ  DQGFRQVWUXFWLRQ  0DMRU employers of the Phoenix metropolitan area include Banner Health, State of Arizona, Wal-Mart Inc., Fry’s Food Stores, Wells Fargo & Company, Maricopa County, City of Phoenix, Intel Corp., Arizona State University and JPMorgan Chase and Co. The top ten property taxpayers, based on secondary assessed valuation, are Arizona Public Service Company, Southwest Gas Corporation, CenturyLink Inc., Host Camelback I L.L.C., Host Kierland L.P., Esplanade Owner L.P., Phoenix Plaza P.T. L.L.C., Target Corporation, Epic Apollo L.L.C. and the United Services Automobile Association. These taxpayers make up 5.9 percent of total assessed valuation. 33 Table of Contents DEMOGRAPHICS AND ECONOMIC STATISTICS 7KHIROORZLQJVWDWLVWLFVDUHSUHVHQWHGWRSURYLGHDQRYHUYLHZRI3KRHQL[UHVLGHQWVWKH&LW\̵VͤQDQFLDOFRQGLWLRQDQG infrastructure. Actual Estimated Projected 1980-81 1990-91 2000-01 2010-11 2019-20 2020-21 2021-22 789,704 995,896 1,350,435 1,453,462 1,634,061 1,652,000 1,670,000 DEMOGRAPHIC PROFILE Population1 Percent of Population by Age Under 5 7.8 8.5 8.5 8.3 5-19 25.0 21.6 21.5 23.0 20-44 39.3 42.9 42.8 37.2 45-64 18.6 17.3 17.3 23.1 65+ 9.3 9.7 9.8 8.4 Caucasian 78.1 71.9 55.8 65.9 Black/African American 4.7 4.9 4.8 6.5 American Indian/Alaska Native 1.1 1.6 1.6 2.2 Asian 0.9 1.5 1.9 3.2 Percent of Population by Race1 1DWLYH+DZDLLDQ2WKHU3DFLͤF,VODQGHU2 N/A N/A 0.1 .2 Other 20.1 35.8 22.0 15.2 Hispanic/Latino (of Any Race)3 14.8 20.0 34.1 40.8 Not Hispanic or Latino (of Any Race)3 85.2 80.0 65.9 59.2 Median Household Income4 $29,706 $30,797 $40,856 $42,260 $60,931 $61,662 $62,402 Personal Income Growth (Metro Phoenix)5 14.8% 4.6% 6.7% 3.0% 7.0% 6.2% 3.8% Secondary Net Assessed Valuation (‘000s)6 N/A $5,700,825 $7,573,211 $16,092,308 $18,193,681 $19,889,714 $21,780,881 Full Cash Value (Millions)7 N/A N/A N/A $144.772 $179,418 $198,012 $215,742 8 (2.4)% CITY ECONOMIC PROFILE N/A (3.0)% 3.7% (2.1)% 3.1% 2.4% Unemployment Rate9 N/A 4.9% 2.7% 9.1% 4.2% 6.0% 6.8% Value of Residential10 Construction (Billions) N/A $0.42 $1.16 $0.28 $0.96 $1.00 $1.00 Value of Commercial10 Construction (Billions) N/A $0.46 $1.33 $2.60 $4.67 $4.80 $5.00 Total Budget (‘000s) $392,780 $1,026,545 $1,946,013 $3,020,690 $3,814,963 $4,348,132 $5,626,521 Total GF Budget (‘000s)11 $221,106 $591,021 $953,324 $954,795 $1,282,831 $1,377,249 $1,607,618 Total Employees 9,435 11,388 14,352.0 15,002.8 14,843.8 14,952.4 15,278.3 Total Employees per 1,000 population12 11.9 11.4 10.6 10.3 9.1 9.1 9.1 Non-Enterprise Employees per 1,000 population N/A N/A 8.6 8.0 7.1 7.1 7.2 Enterprise Employees per 1,000 population13 N/A N/A 2.0 2.3 2.0 2.0 1.9 Employment Growth Rate CITY FINANCIAL PROFILE 1.75 1.79 1.82 1.82 2.13 2.13 2.12 G.O. Bond Rating (Moody’s/S&P/Fitch)14 Property Tax Rate Aa/AA Aa/AA+ Aa1/AA+ Aa1/AAA Aa1/AA+/ AAA Aa1/AA+/ AAA N/A Number of PLT Licenses15 37,943 43,756 51,000 56,460 115,855 181,500 181,500 City Retail Sales Tax Rate16 1% 1.2% 1.8% 2.0% 2.3% 2.3% 2.3% 34 Table of Contents Actual Estimated Projected 1980-81 1990-91 2000-01 2010-11 2019-20 2020-21 2021-22 329.1 427.1 483.5 519.1 519.7 519.7 519.8 INFRASTRUCTURE PROFILE Area (Square Miles) Police Major Crimes17 86,287 110,961 97,666 70,108 66,908 65,600 65,300 Dispatched Calls for Service18 452,350 895,117 862,769 666,116 681,230 657,000 659,500 1,694 2,047 2,810 3,281 3,274 3,271 3,271 $XWKRUL]HG6ZRUQ3ROLFH2IͤFHUV19 Fire Fire Stations Fires and All Other Calls Emergency Medical Calls $XWKRUL]HG6ZRUQ)LUHͤJKWHUV 19 35 45 45 57 59 59 59 25,162 26,281 28,369 19,335 25,311 27,300 24,700 46,122 75,112 101,396 136,163 187,378 187,700 182,500 838 1,042 1,315 1,661 1,695 1,723 1,722 196,356 176,909 261,184 131,600 272,514 266,200 270,000 4,849 Building Inspections Total Number of Inspections20 Streets Total Miles21 3,084 3,800 4,299 4,825 4,872 4,849 Miles Resurfaced and Sealed22 216 250 220 127 559 740 288 Total Miles of Bikeway23 N/A 250 472 615 1,474 1,514 1,531 7UDIͤF&RQWURODQG/LJKWLQJ 555 761 906 1,092 1,152 1,165 1,180 Street Lights24 Signalized Intersections 39,097 50,825 70,750 89,826 94,562 100,562 108,746 7UDIͤF$FFLGHQWV25 28,129 28,414 36,500 22,742 31,397 30,853 30,949 6,500,000 22,175,000 35,900,000 40,500,000 34,725,551 21,898,000 20,000,000 Residences Served26 281,900 281,392 327,953 392,825 411,814 415,500 419,300 Tons Disposed at City /DQGͤOOV27 379,000 513,643 1,051,935 1,002,346 972,267 983,600 989,500 Aviation Passengers Arriving and Departing Solid Waste Collection Municipal Parks Number of Municipal Parks28 137 181 199 225 232 227 231 Developed Park Acres29 1,303 2,206 3,332 5,071 4,787 8,860 8,860 Number of Municipally Operated Golf Courses 5 5 7 6 5 5 5 Libraries Material Circulation30 3,691,745 5,962,411 9,151,000 13,839,543 8,528,708 6,750,000 8,000,000 Total Material Stock31 1,182,606 1,732,410 2,016,000 1,643,977 3,500,000 4,000,000 4,100,000 9 11 13 16 17 17 17 4,497 4,776 6,080 7,612 7,548 7,711 7,760 Number of Library Branches Equipment Management Number of Equipment Units in Fleet32 Water Connections33 282,048 321,996 350,967 397,390 434,023 437,495 441,870 Production (billions of gallons)34 88.5 84.7 109.4 98.6 99.3 108.2 108.2 Miles of Line 3,083 4,246 5,007 6,270 6,990 7,038 7,075 Connections 250,199 311,980 327,051 389,978 417,346 420,685 424,892 Miles of Line 3,040 3,661 4,174 4,980 4,933 4,952 4,972 Wastewater 1  3RSXODWLRQE\DJHDQGUDFHLVRQO\DYDLODEOHLQFHQVXV\HDUV$OVRUDFLDOFDWHJRULHVZHUHPRGLͤHGE\WKH&HQVXV%XUHDXLQWKH&HQVXV7KH&HQVXV QXPEHUZDVLQFUHDVHGIURPWKHRULJLQDOWRWDOGXHWRWKH&LW\DSSHDOLQJWKHUHVXOWWKURXJKWKHRIͤFLDO&RXQW4XHVWLRQ5HVROXWLRQ &45 7KHUHZDVDQDUHD LQIDUZHVW3KRHQL[ZKLFKZDVQRWDWWULEXWHGWRWKHFLW\ZKHQLQIDFWLWZDVLQVLGHWKHFLW\̵VERXQGDULHV7KXVWKH86&HQVXV%XUHDXRIͤFLDOO\FKDQJHGWKH City’s 2010 Census population count which in turn affected the preceding years’ population estimates. The preceding years also include additional population estimate adjustments approved by Maricopa Association of Governments. 2  3ULRUWRWKH&HQVXV1DWLYH+DZDLLDQ2WKHU3DFLͤF,VODQGHUGDWDZDVFRPELQHGXQGHUWKHVDPHFDWHJRU\,QSUH&HQVXVFRXQWVWKLVUDFHFDWHJRU\ was included in the Asian category. 3 Hispanic/Latino of any race is included in the Census’ “Other” race category for 1980-81, 1990-91, 2000-01 and 2010-11. 4 Median Household Income is based on U.S. Census Bureau data for the City of Phoenix geographic area. For the estimate and projection years, the Calendar Year (CY) 2020 greater Phoenix Consumer Price Index (CPI) of 1.2% was applied to the U.S. Census Bureau’s (FactFinder) 2019 American Community Survey 1-year estimates for City of Phoenix Median Household income. The reported data is from March 2021. 35 Table of Contents 5 Personal income growth percentage is from University of Arizona’s “Economic Outlook” quarterly publication (University of Arizona Economic and Business Research Center), which reflects estimated impacts to personal income growth from COVID-19. 6 Following the 2012 voter approval of the Arizona Property Tax Assessed Valuation Amendment (Proposition 117), and A.Z. Const. art. IX, § 18(3), Secondary (Full Cash) Net Assessed Valuation is no longer used for purposes of calculating Secondary Property Taxes. The City continues to report Secondary Net Assessed Valuation here for continuity with previous reports. 7  )XOO&DVK9DOXHUHSUHVHQWVPDUNHWYDOXHRISURSHUWLHVDVGHWHUPLQHGE\WKH0DULFRSD&RXQW\$VVHVVRU V2IͤFHSULRUWRWKHDSSOLFDWLRQRI/LPLWHG3URSHUW\ Value formulas, assessment ratios and exemptions. Prior to 2015-16, trends in Full Cash Value correlated to trends in the City's Secondary Property Tax Base; however, this correlation no longer applies. Reported values lag market conditions by approximately 18 to 24 months. 8  (PSOR\PHQWJURZWKUDWHͤJXUHV WRWDOQRQIDUPHPSOR\PHQW DUHEDVHGRQDPRQWKFKDQJH 4 LQHPSOR\PHQWUDWH'DWDLVEDVHGRQWKH3KRHQL[0HVD Scottsdale Statistical Area (MSA) and is obtained from the United States Department of Labor – Bureau of Labor and Statistics website: www.bls.gov. The reported data is from March 2021 and does account for impacts to employment growth from COVID-19. 9 Unemployment rate is reported monthly by the US Bureau of Labor Statistics website: www.bls.gov (LAU – Local Area Unemployment searchable databases) FRQYHUWHGWRͤVFDO\HDUE\WKH&LW\RI3KRHQL[%XGJHWDQG5HVHDUFK'HSDUWPHQW'DWDLVEDVHGRQWKH3KRHQL[0HVD6FRWWVGDOH6WDWLVWLFDO$UHD 06$ 7KH reported data is from March 2021 and does account for impacts to the unemployment rate from COVID-19. 10 These measures represent the annual estimated value of projects permitted by the City of Phoenix (new construction and remodels). 11 As of 1998-99, Arizona Highway User Revenue funds are no longer included in the General Fund total. 12 A correction was made to the calculation of City employees per 1,000 population for 1980-81 and 1990-91. Previous budget books did not adjust for Census data that was published at least a year after the statistic was recorded in budget documents. 13 Enterprise departments include Water, Wastewater, Aviation, Phoenix Convention Center and Solid Waste Management. 14 The ratings listed in the estimated 2020-21 are the City’s rating at the time of publication. No attempt has been made to project the City’s ratings. 15 As of January 1, 2017, the City of Phoenix no longer has administrative and collection duties over the management of Transaction Privilege (Sales) and Use Tax Licenses (TPT) accounts. This process is administrated by the State of Arizona. Previously, the City allowed businesses to report multiple locations or entities under one license; that is no longer the policy under the State. Although the Arizona Department of Revenue assumed these duties in 2017, it is expected that the State remits the same approximate amount of annual license fee revenues for the same approximate number of (TPT) accounts that have privilege tax liability within the City of Phoenix limits. 16 Voters approved a 0.3 percent increase in most city sales tax categories effective January 1, 2016 to fund a comprehensive transportation plan. This was an increase to and an extension of the 0.4 percent tax that was effective June 1, 2000, resulting in a total tax of 0.7 percent for transportation with a 35-year sunset date. 17 Total violent and property crimes are based on Uniform Crime Reporting (UCR) standards, not based on Arizona Revised Statutes. Counts are based on ͤQDOL]HGGDWDWKURXJK)HEUXDU\DQGSURMHFWHGGDWDIRUVXEVHTXHQWPRQWKVIRUDOOFULPHW\SHV%HJLQQLQJLQ-DQXDU\WKHUDSHFRXQWV ZKLFKDUH RQHRIWKHFULPHW\SHVLQFOXGHGLQWKHYLROHQWFULPHFRXQWV LQFOXGHLQFLGHQWVWKDWPHWWKHXSGDWHG)%,UDSHGHͤQLWLRQ7KLVFKDQJHLVUHIOHFWHGLQFRXQWV from 2014-15 forward. Similarly, beginning in January 2016, the aggravated assault counts include incidents that met the updated FBI aggravated assault GHͤQLWLRQ7KLVUHSRUWUHIOHFWVWKDWFKDQJHIURPIRUZDUG 18 The formula that categorizes calls as dispatched was revised in 2017. Counts for 2015-16 and forward have been updated. Call data is based on actual data through April 30, 2021 and projected data for the remaining months. 19 The numbers shown represent the Council authorized sworn position count in Police and Fire. The sworn hiring target for Police is 3,125 based on projected available resources. The sworn hiring target for Fire is 1,706 based on projected available resources. 20 Includes building, electrical, mechanical, plumbing and general inspections. Decrease in 2020-21 is due to COVID-19 restrictions. 21 Total Mileage decreased due to previously reported mileage included roads no longer in Phoenix jurisdiction (New River Road). 22 Miles of streets resurfaced or sealed varies year over year and is dependent on actual streets selected and distribution of wide versus narrow. It also varies based on the method of seal used. 23 City of Phoenix bicycle network consists of bicycle lanes, routes and paths. The measurement methodology of bikeways records bicycle lanes as bi-directional because of the doubled signage and striping requirements. 24 2021-22 it is anticipated that 15 new signalized intersections and 12 HAWKs will be installed. 25 7UDIͤFDFFLGHQWVLQFOXGHLQMXU\QRQLQMXU\DQGIDWDOFROOLVLRQVDQGDUHSURMHFWLRQVEDVHGRQSUHYLRXV\HDUV 26 2020-21 projected service level is based on annualized 10 months of actuals data and assumptions from Business Intelligence Living Unit report (average 0.90% growth over the last 10 months). Projected households for 2021-22 are based on 0.90 growth from 2020-21 projections. 27 7RQQDJHLQFOXGHVGLVSRVDOWRQQDJHFROOHFWHGDW&LW\WUDQVIHUVWDWLRQVDQGODQGͤOODVZHOO6ROLG:DVWH6HUYLFHVWRQQDJHVHQWWRFRQWUDFWHGSULYDWHWUDQVIHU VWDWLRQVDQGODQGͤOOV3URMHFWHGWRQQDJHIRULVEDVHGRQJURZWK 28 This number includes all properties except undeveloped land. 29 7KHLQFUHDVHLQUHVXOWHGIURPWKHUHFODVVLͤFDWLRQRISDUNDVVHWVLQDQHZO\LPSOHPHQWHGDVVHWLQYHQWRU\GDWDEDVH7KLVFKDQJHUHIOHFWVWKHXSGDWHWR the new system. This number includes all flatland parks. 30 Measure covers all media including: audio books, e-books, CDs, DVDs, databases, books, and periodicals. 2019-20 and 2020-21 data reflect the temporary suspension of in-person services at all library locations in March 2020 and the availability of curbside library services that began in May 2020. 2021-22 reflects partial resumption of in-person services at all Library branches. 31 7RWDOPDWHULDOVWRFNLQFOXGHVGLJLWDOPDWHULDODYDLODEOHWRSDWURQVZDVWKHͤUVW\HDUGLJLWDOPDWHULDOVZHUHLQFOXGHGLQWKLVPHDVXUH 32 Includes vehicle replacements. 33 Water connections have increased due to an increase in customer accounts. 34 Includes water produced for City of Phoenix only. 36 Table of Contents RESOURCE AND EXPENDITURE SUMMARY This section provides a broad overview of the resources and expenditures included in the 2021-22 budget. Information is presented for General, Special Revenue and Enterprise funds. General funds, which receive special attention by the community, are highlighted throughout this section. General funds are of importance to our residents as they provide for the PRVWEDVLFVHUYLFHVVXFKDVSROLFHͤUHSDUNVDQGVWUHHWV(QWHUSULVHIXQGVDUHVXSSRUWHGE\IHHVFKDUJHGIRUWKHVHUYLFHV provided except for the Convention Center which has earmarked sales taxes as its primary funding source. Special Revenue funds are restricted to statutory and/or voter-approved uses. 7KHEXGJHWͤQDQFHGE\RSHUDWLQJIXQGVWRWDOV$VVKRZQLQWKHSLHFKDUWEHORZWKH*HQHUDO)XQG portion of $1,607,618,000 is approximately 29 percent of the total. The Enterprise funds, which include Aviation, Water, Wastewater, Solid Waste and Convention Center, make up another 30 percent of the total. Special Revenue funds such as Arizona Highway User Revenues, grant funds such as Community Development Block Grants, Human Services grants, and Housing grants represent the remaining 41 percent of the total budget. All Sources of Funds Total Resources - $5.63 Billion Enterprise Funds 30% All Sources of Funds Total Expenditures - $5.63 Billion Capital 18% Operation and Maintenance 72% General Funds 29% Debt Service 10% Special Revenue Funds 41% In addition to presenting the budget by funding source, the budget is also described in terms of the major types of activities or expenditures funded. Included in the operating budget are operating and maintenance expenses that provide for ongoing costs of delivering City services; capital expenditures for pay-as-you-go projects for major additions, improvements or renovations to City facilities; and debt service payments to retire outstanding debt. The pie chart above shows the distribution of the total operating budget into these three types of expenditures. Bonds and other capital funds used for capital improvement projects are included in a separate capital improvement program. The 2021-22 General Fund budget includes ongoing operating and maintenance and pay-as-you-go capital expenses. No debt service is paid from the General Fund. Instead, debt service associated with General-funded activities is paid for with earmarked property taxes or with the City Improvement fund. Due to the restrictions on using these funds both are appropriately included in the Special Revenue funds portion of the budget. 37 Table of Contents Finally, budgeted expenditures are provided on a departmental basis. Detailed explanations of each department’s budget are provided in the Department Program Summary section of this document. The following bar chart presents the General Fund budget on a department-by-department basis. Millions Expenditures by Department 2021-22 General Fund Budget $600 $500 $400 $300 $200 $100 $0 * )XQFWLRQVLQFOXGHVHYHUDOVPDOORIͤFHVVXFKDVWKH2IͤFHRI6XVWDLQDELOLW\DQG(QYLURQPHQWDO3URJUDPV The table below provides a comparison of the 2021-22 budget to the 2020-21 adopted budget. Actual expenditures for the ͤVFDO\HDUDOVRDUHLQFOXGHG 2021-22 Budget Compared to 2020-21 Adopted Budget (In Millions of Dollars) 2019-20 Actual Expenditures 2020-21 Adopted Budget Budget 2021-22 Amount Change Percent Change Operating and Maintenance Expenditures Capital Expenditures Debt Service 2,889.3 358.6 567.1 3,713.3 758.9 548.2 4,055.2 1,022.9 548.4 341.9 264.0 0.2 9.2% 34.8% 0.0% Total 3,815.0 5,020.4 5,626.5 606.1 12.1% Overall, citywide operating and maintenance expenditures are expected to rise by $341.9 million. Most of the increase is attributable to the planned spending of the American Rescue Plan Act (ARPA) funds awarded by the federal government in its continued effort to respond to the COVID-19 pandemic. Other reasons for the growth include funding for emergency UHQWDODVVLVWDQFHWKHUHWURͤWRIWKHFLW\̵VEXVIOHHWWRSURYLGHDVDIHW\EDUULHUEHWZHHQGULYHUVDQGSDVVHQJHUVHPSOR\HH FRPSHQVDWLRQLQFUHDVHVDVVRFLDWHGIURPͤUVW\HDUQHJRWLDWHGODERUFRQWUDFWVDQGDVHWDVLGHIRUWKHVHFRQG\HDURIWKHVH same contracts; additional staff for programs and services; and higher contingencies. Commodity purchases are expected to increase due to the carryover of unspent Police grants and additional grant funding for Police operations equipment as well as rising costs for water treatment chemicals. Other department increases are attributed to increased funding for YHKLFOHUHSODFHPHQWVDVWKH&LW\FRQWLQXHVWRDGGUHVVLWVDJLQJIOHHWDQGWKHHVWDEOLVKPHQWRIDVSHFLͤHGIXQGLQJVRXUFHIRU UHSODFHPHQWVRIVHOIFRQWDLQHGEUHDWKLQJDSSDUDWXVHVIRUͤUVWUHVSRQGHUV Pay-as-you-go capital expenditures are expected to increase as available Transportation 2050, Wastewater and Water payDV\RXJRIXQGVDUHXVHGLQVWHDGRIGHEWͤQDQFLQJ Debt service expenditures are expected to mostly remain consistent with 2020-21 budget levels. 38 Table of Contents 2021-22 GENERAL FUND BUDGET OVERVIEW The 2021-22 General Fund budget of $1,607,618,000 provides for ongoing operating and maintenance and some pay-asyou-go capital expenditures. The table below compares the 2021-22 General Fund budget with the adopted 2020-21 budget. 2021-22 General Fund Budget Compared to 2020-21 Adopted Budget (In Millions of Dollars) 2019-20 Actual Expenditures 2020-21 Adopted Budget Budget 2021-22 Amount Change Percent Change Operating and Maintenance Expenditures Capital Expenditures 1,268.4 14.4 1,406.0 19.6 1,582.6 25.0 176.6 5.4 12.6% 27.6% Total 1,282.8 1,425.6 1,607.6 182.0 12.8% The operating and maintenance expenditures for 2021-22 are expected to increase by 12.6 percent overall compared to WKHDGRSWHGEXGJHWSULPDULO\GXHWRLQFUHDVHGSHUVRQDOVHUYLFHFRVWVIRUHPSOR\HHSHQVLRQEHQHͤWVͤUVW\HDU negotiated employee compensation increases, and new positions for expansion of City programs and services. Non-personal and contractual costs are also expected to climb primarily due to a set-aside for the expansion of the Community Assistance Program (CAP) to address the need for enhanced mental and behavioral health calls for services; and for the second year of the two-year labor contracts for employee compensation increases in FY 2022-23. Cost increases also include spending on critical IT infrastructure, cybersecurity, WiFi access, virtual business environment support, and other systems; funding for community and employee COVID-19 testing and employee personal protective equipment supplies; and for the expansion of the Human Services Campus Clean-Up program; increased liability insurance premiums; and for the Santa Fe Springs Apartments rehabilitation project. Pay-as-you-go capital expenditure increases are mainly due to increased funding to address aging City facilities, information WHFKQRORJ\HTXLSPHQWDQGODQGDFTXLVLWLRQIRUDIXWXUHͤUHVWDWLRQ The following pie charts show the 2021-22 General Fund budget summarized by major programs and major resources. General Funds Total Expenditures - $1.61 Billion General Funds Total Resources - $1.61 Billion User Fees/Other Revenue 7% Other Resources 16% Environmental Services and Other 10% Local Taxes & Related Fees 34% Transportation 1% General Government 10% Property Tax 12% Community Development and Enrichment 13% State Shared Revenue 31% 1 Public Safety and Criminal Justice1 66% When contingency is excluded, Public Safety and Criminal Justice account for approximately 71% of budgeted General Fund expenditures. RESOURCES Resources include beginning fund balances, revenues, recoveries and fund transfers. In the Enterprise funds, fund balances SURYLGHDͤQDQFLDOFXVKLRQDJDLQVWXQDQWLFLSDWHGFKDQJHV7KHFRQWLQJHQF\DOORFDWLRQVHUYHVWKLVVDPHSXUSRVHIRUWKH General Fund. While minor changes in fund balances occur from year to year, maintaining proper fund balances over the long WHUPDQGSURYLGLQJIRUDFRQWLQJHQF\IXQGLQWKH*HQHUDO)XQGDUHLPSRUWDQWFRPSRQHQWVRIVRXQGͤQDQFLDOPDQDJHPHQW DQGDVLJQLͤFDQWIDFWRULQERQGUDWLQJV 39 Table of Contents 2021-22 ESTIMATED BEGINNING FUND BALANCES As explained in a later section, a General Fund ending balance may not be budgeted. However, a contingency fund is used to provide a means to address any emergencies and unanticipated one-time costs that may occur after the budget is adopted. Each year, all or almost all of the contingency allocation remains unused and, therefore, falls to the ending fund balance along with any changes in estimated revenues and expenditures. The estimated 2021-22 beginning fund balances totaling $1,551.2 million include $244.8 million in General funds, $567.1 million in Special Revenue funds and $739.3 million in Enterprise funds. The estimated beginning fund balance for Special Revenue and Enterprise funds include: Transportation 2050 - $146.5 million; Parks and Preserves - $77.3 million; Other Restricted - $68.2 million; Sports Facilities - $52.3 million; Development Services - $45.8 million; 2007 Public Safety Expansion - $34.1 million; Arizona Highway User Revenue - $31.0 million; Grant funds - $29.0 million; Neighborhood Protection - $23.8 million; Capital Construction - $19.8 million; Public Safety Enhancement - $19.1 million; Community Reinvestment - $17.3 million; Aviation - $378.4 million; Water - $155.9 million; Wastewater - $154.5 million; Convention Center - $32.5 million; Solid Waste - $18.0 million and $2.9 million in various other special revenue funds. 2020-21 GENERAL FUND ESTIMATED ENDING BALANCE As shown in the following table, the 2020-21 General Fund ending balance, which is also the 2021-22 beginning balance mentioned in the previous section, is estimated to be $244.8 million. This results from a $196.4 million increase in net resources, combined with a $48.4 million reduction in net expenditures estimated in 2020-21 compared to the original General Fund budget. General Fund Balance Analysis (In Thousands of Dollars) 2019-20 Estimate Over (Under) Budget 2020-21 Actuals Budget Estimate Amount Percent Resources Beginning Balances Revenue Recoveries Transfers 133,580 1,307,357 7,264 3,749 95,466 1,309,519 1,000 19,628 169,119 1,432,130 1,000 19,765 73,653 122,611 --137 77.2% 9.4% 0.0% 0.7% Total Resources 1,451,950 1,425,613 1,622,014 196,401 13.8% Expenditures Operating Expenditures Capital 1,268,424 14,407 1,405,970 19,643 1,345,743 31,506 (60,227) 11,863 (4.3)% 60.4% Total Expenditures 1,282,831 1,425,613 1,377,249 (48,364) (3.4)% Ending Fund Balance 169,119 --- 244,765 244,765 +100.0% The increase in net resources includes a $73.7 million higher beginning balance and $109.2 million from the Coronavirus Relief Fund (CRF) to offset public safety salaries from July through December 2020 as permitted by the Federal guidelines. The increase in net resources also includes the estimated growth in city and state sales taxes, and state-shared vehicle license tax. The decrease in net expenditures includes a $60.2 million decrease in operating expenditures and an increase of $11.9 million in pay-as-you-go capital expenditures. The decrease in 2020-21 estimated General Fund operating expenditures from the 2020-21 budget is mainly due to unused contingency funds, vacancy savings, lower fuel and vehicle maintenance costs, and other commodity savings such as uniforms and smaller communications equipment related to a decrease in operations. The increase in pay-as-you-go capital expenditures is a result of acquiring property to house at-risk veterans XWLOL]LQJ&RURQDYLUXV5HOLHI)XQGVDQGYDULRXV3DUNVLPSURYHPHQWVVXFKDVWKHFLW\ZLGHUHSODFHPHQWRIVSRUWVͤHOGOLJKWLQJ and citywide repairs to park buildings. 40 Table of Contents 2021-22 ESTIMATED REVENUES Revenues from taxes, fees, interest, grants and other sources provide resources to fund programs and services delivered by the City. Total revenues for 2021-22 are estimated at $4,770,197,000. This is $475,307,000 or 11.1 percent higher than the 2020-21 estimate of $4,294,890,000. The following table provides a comparison of the 2021-22 estimated revenues to 2020-21 estimates and 2019-20 actual collections. Detailed explanations by category are provided in the 2021-22 Revenue Estimates section of this document. 2021-22 Estimated Revenues Compared to 2020-21 Estimates (In Thousands of Dollars) 2021-22 Fund Types 2019-20 Actuals 2020-21 Estimate Estimate Amount Change Percent Change General Special Revenue Funds Enterprise Funds 1,307,357 1,246,000 1,301,276 1,432,130 1,443,941 1,418,819 1,355,775 1,993,618 1,420,804 (76,355) 549,677 1,985 (5.3)% 38.1% 0.1% Total 3,854,633 4,294,890 4,770,197 475,307 11.1% General Fund revenues are estimated at $1,355,775,000 which is $76,355,000 or 5.3 percent less than the 2020-21 estimate of $1,432,130,000. The decline is primarily due to the projected decrease in state-shared income tax and the discontinuation of the one-time CRF in 2021-22. Special Revenue Funds are projected at $1,993,618,000 which is $549,677,000 or 38.1 percent higher than the 2020-21 estimate of $1,443,941,000. The estimate for Special Revenue funds includes a $25.3 million increase in Transportation 2050 funds, an $11.7 million increase in Other Restricted revenues, an $11.1 million increase in Regional Transit funds, a $6.8 million increase in Highway User Revenue, a $5.5 million increase in Secondary Property Tax revenues, a $4.6 million increase in Sports Facilities funds, a $2.2 million increase in Parks and Preserves funds, and a $1.9 million increase in Development Services funds. Furthermore, there is a $503.8 million increase in various grant funds including Community Development, Criminal Justice, Public Transit and Other grants. Special Revenue funds also include a $9.9 million decrease in Human Services grants, a $4.0 million decrease in Public Housing grants, a $3.9 million decrease in 2007 Public Safety Expansion funds, a $2.1 million decrease in Public Safety Enhancement funds, a $1.6 million decrease in Golf Courses revenue, a $1.1 million decrease in Neighborhood Protection funds, and a combined decrease of $0.6 million in Court Awards, Capital Construction, Community Reinvestments, and Regional Wireless Cooperative revenues. The 2021-22 estimates for Enterprise Funds include the impact of rate increases for Water and Solid Waste services, and the rideshare fees at Phoenix Sky Harbor International Airport. The projected revenue increases are offset by the revenue loss resulting from the discontinuation of the one-time COVID-19 related federal funding and lower revenue collections due to the anticipated lower water consumption in 2021-22. 2021-22 TRANSFERS TO THE GENERAL FUND 7UDQVIHUVDUHXVHGWRDOORFDWHUHVRXUFHVEHWZHHQIXQGVIRUSXUSRVHVRIPDWFKLQJFRVWVZLWKEHQHͤWVUHFHLYHGWKURXJKD central service cost allocation or to assess in lieu property taxes. Central service cost allocation and other transfers to the General Fund for 2021-22 total $80.1 million. This amount reflects $76.1 million to recoup central service costs and/or payments of in-lieu property taxes, the majority of which is from the Aviation, Water and Wastewater, Solid Waste, Convention Center and Development Services funds. Central service provides a repayment to the General Fund for services provided by departments such as Human Resources, Information Technology, Finance, Law and other administrative support areas that are General funded. This transfer is calculated by the Finance Department in accordance with generally accepted full-cost accounting principles and is in accordance with longestablished City Council-approved policy. Approximately $4.0 million in miscellaneous transfers from other funds is also included. As a result, total transfers to the General Fund exclusive of excise tax-related items are $80.1 million. A transfer of $970.2 million from the Excise Tax fund represents the General Fund share of local and state-shared sales taxes, fees and state-shared income taxes. However, this amount is reflected in revenues, rather than a transfer, throughout this section. 2021-22 ESTIMATED ENDING BALANCES Arizona budget law requires a balanced General Fund budget. No General Fund balances may be accumulated in reserve IRUVXEVHTXHQWͤVFDO\HDUV$UL]RQDODZGRHVKRZHYHUSURYLGHIRUDFRQWLQJHQF\HDFK\HDU)RUPLOOLRQLV included for the General Fund contingency, with an additional $67.2 million set aside for the expansion of the Community Assistance Program, labor costs, police reform, and staff, supplies and equipment to operate three new parks, as is discussed in more detail in the Contingency section of this document. As a result, budgeted General Fund resources equal expenditures. However, any unused contingency amounts at year-end fall to a General Fund ending balance. The contingency fund has remained 100 percent funded for over ten years. 41 Table of Contents Year-end balances are planned in the Enterprise funds and other self-supporting funds primarily to provide for adequate IXQGVDWWKHEHJLQQLQJRIWKHIROORZLQJͤVFDO\HDU6XFKIXQGVDUHXVHGWRVWDELOL]HUDWHLQFUHDVHVDVVRFLDWHGZLWK fluctuations in service demand, insure bondholders of future debt service payments and to accumulate funds for annual pay-as-you-go capital improvements. In addition, Enterprise fund balances are intentionally permitted to grow over time in order to fund large capital projects. The estimated 2021-22 ending balance of $727.9 million includes: Other Restricted - $47.9 million; Parks and Preserves $46.7 million; Sports Facilities - $32.6 million; Transportation 2050 -$27.7 million; Development Services - $26.4 million; Grant Funds - $21.7 million; Neighborhood Protection - $18.0 million; 2007 Police Public Safety Expansion - $16.7 million; Community Reinvestment - $15.9 million; Public Safety Enhancement - $12.9 million; Capital Construction - $7.1 million; Arizona Highway User Revenue - $5.1 million; Aviation - $228.0 million; Wastewater - $121.2 million; Water - $76.6 million; Convention Center - $19.7 million; Solid Waste - $0.1 million; and a combined $3.6 million in various other Special Revenue funds. Beginning and ending fund balances are provided in more detail in Schedule 1 located in the Summary Schedules section. Special Revenue fund balances in the aggregate are expected to decrease from $567.2 million to $282.3 million. • Transportation 2050 fund balances are decreasing primarily due to shifting costs from bond funds to pay-as-you-go capital funds, allowing issuance of debt to be delayed. • The Phoenix Parks and Preserves fund balance is decreasing primarily due to planned pay-as-you-go capital spending for land acquisition and improvements to existing facilities and negotiated employee compensation increases. • The Public Safety Specialty funds, including Neighborhood Protection, 2007 Public Safety Expansion and Public Safety Enhancement, are decreasing primarily due to reduced revenue caused by the ending of the one-time CRF funding, increased personal service costs, as well as increases for vehicle replacements. • The Arizona Highway User Revenue fund balance is diminishing primarily due to negotiated increases to employee compensation; the full year cost of positions added for the Roadway Safety Action Plan; additional staff to support street cleaning and maintenance and increased costs for related materials; and greater pay-as-you-go capital spending for the Residential Street Overlay program. • Other Restricted fund balances are declining primarily due to additional capital expenditures for purchasing new software and equipment for the Computer-Aided Dispatch (CAD) system and increased operating expenditures for contractual and personal services. • The Sports Facilities funds are decreasing due to increased operating expenditures as a result of higher contingency reserves. • Development Services funds are reducing due to negotiated employee compensation increases, higher contingency reserves, and increased facility management charges. • Capital Construction fund balances are decreasing primarily due to pay-as-you-go capital expenditures for future street construction projects, local drainage improvements, and for a street study of Happy Valley Road from 35th Avenue to 67th Avenue. • A few Special Revenue fund balances are expected to increase slightly primarily due to decreases in total expenditures. In 2021-22, the Enterprise funds ending balances in the aggregate are programmed to decline from $739.3 million at the beginning of 2021-22 to $445.6 million at year end. • The Aviation balance is declining primarily due to a fall in airport revenue as a result of the discontinuation of the one-time Coronavirus Relief Funds; negotiated increases to employee compensation and other normal inflationary adjustments. Pay-as-you-go capital is also expected to rise due to increased contingencies for future projects that may occur in the Airport Development Plan. • Water funds are decreasing due to lower revenue collections due to less water consumption; negotiated employee compensation increases; higher contingency reserves; increased debt service payments; increased costs for purchasing raw water from the Central Arizona Project; higher costs for consultants to administer and inspect pavement repairs; SURSHUW\LQVXUDQFHLQFUHDVHVUHSODFHPHQWVIRUZDWHUPHWHUVͤUHK\GUDQWVDQGPRWRUYHKLFOHVDQGVWDIIDGGLWLRQVDQG equipment to implement Phase II of the water conservation plan. Pay as you go capital is also expected to increase primarily for the Deer Valley Water Treatment Plant rehabilitation project. • Wastewater funds are diminishing primarily due to higher pay-as-you-go capital expenditures for projects such as a new grit basin and other equipment at 23rd Avenue Wastewater replacing assets and infrastructure at support facilities. Increases to operating funds are a result of higher contingency appropriations; negotiated increases to employee compensation; higher chemical and electricity costs; and property insurance increases. • Solid Waste funds are lessening due to negotiated employee compensation increases and added positions to support growth in various Solid Waste areas; higher spending for vehicle replacements as a result of an aging fleet; contractual increases for recycling and long-haul waste transport services; and increased pay-as-you-go expenses primarily for the 27th Avenue Transfer Station painting project. • The Convention Center fund balance is falling primarily due to increases in negotiated employee compensation; and rising SD\DV\RXJRH[SHQGLWXUHVIRU1RUWKEXLOGLQJVKRULQJZDOOOLJKWLQJXSJUDGHVDQGWKH(DVW*DUDJHͤUHDODUPV\VWHP replacement. 42 Table of Contents The Highest S&P Credit Rating of the 5 Largest U.S. Cities 43 Table of Contents CITY OF PHOENIX FINANCIAL ORGANIZATIONAL CHART 2021-22 Operating Budget $5,626,521,000 Operating Expenditures $4,055,219,000 Special Revenue Funds $1,488,959,000 General Funds $1,582,611,000 Enterprise Funds $983,649,000 General Fund $1,426,402,000 Arizona Highway User Revenue $89,856,000 Capital Construction $140,000 Community Reinvestment $2,128,000 Aviation $372,968,000 Library $43,865,000 Court Awards $5,464,000 Development Services $81,906,000 Golf $6,224,000 Convention Center $48,880,000 Parks $109,174,000 Neighborhood Protection $45,671,000 Parks and Preserves $6,479,000 Public Safety Enhancement $30,482,000 Solid Waste $171,647,000 Cable Television $3,169,000 Public Safety Expansion $96,706,000 Regional Transit $24,998,000 Regional Wireless Cooperative $5,485,000 Wastewater $128,461,000 Sports Facilities $22,690,000 Transportation 2050 $91,311,000 Other Restricted $66,468,000 Water $261,694,000 Grants $912,952,000 44 Table of Contents CITY OF PHOENIX FINANCIAL ORGANIZATIONAL CHART Pay As You Go Capital $1,022,887,000 Debt Service $548,415,000 City Improvement $70,421,000 Secondary Property Tax $129,714,000 General Fund $24,052,000 Library $955,000 Arizona Highway User Revenue $85,482,000 Aviation $87,281,000 Convention Center $20,763,000 Capital Construction $20,380,000 Community Reinvestment $7,734,000 Development Services $4,451,000 Solid Waste $15,227,000 Wastewater $71,389,000 Parks and Preserves $66,212,000 Regional Transit $13,961,000 Sports Facilities $2,393,000 Transportation 2050 $308,724,000 Other Restricted $12,718,000 Grants $125,058,000 Aviation $126,993,000 Convention Center $15,480,000 Solid Waste $11,278,000 Water $153,620,000 Wastewater $71,659,000 45 Water $125,355,000 Table of Contents 46 Table of Contents SERVICES TO THE COMMUNITY Phoenix is the core of Maricopa County and the state’s population and economic center. With its attractive climate, recreational opportunities, and affordable costs of living and doing business, the City has experienced sustained growth. The local economy continues to make progress and City revenue collections reflect modest growth. The 2021-22 General Fund includes a projected surplus of 154.8 million of which $36.5 million is allocated for new or expanded services. The additions address critical community priorities set by the City Council and are grouped into the following categories: public safety reform and responsiveness; COVID-19 relief and resiliency; climate change and heat readiness; affordable housing and homelessness; building community and responding to growth; and administrative accountability. A summary of the major programs receiving funding follows below. The public safety reform and responsiveness category totals $20.5 million and is intended to increase transparency and public trust in public safety programs. This category includes funding for: Fire to expand the Community Assistance Program for mental health calls for service; Police public records requests, data reporting compliance, and to civilianize the Central Booking Detail; and Street Transportation projects included in the Council approved Roadway Safety Action Plan. The COVID response and resiliency category totals $2.6 million and is intended to provide services to continue to responsibly QDYLJDWHWKHSDQGHPLFEXWDOVRWRSURYLGHWKHVHVHUYLFHHQKDQFHPHQWVDQGLQIRUPDWLRQWHFKQRORJ\EHQHͤWVJRLQJIRUZDUG 7KLVFDWHJRU\LQFOXGHVIXQGLQJIRU,QIRUPDWLRQ7HFKQRORJ\WRVXSSRUWWKHWHFKQRORJ\GHSOR\HGIRUWHOHZRUNLQJQHZZLͤ locations, and video conferencing; Environmental Programs to continue the Emergency Food Assistance Program and to achieve the goals of the Council approved 2025 Phoenix Food Action Plan; and for the Library Department to continue mobile VHUYLFHIRUWKH0LͤKRWVSRWSURJUDPRQOLQHSURJUDPPLQJDQGUHPRWHRXWUHDFKDQGODSWRSVXSSRUW The climate change and heat readiness category totals $2.8 million and is intended to address negative impacts to air quality from pollutants and carbon emissions and the hazards of urban heat. This category includes funding for: establishing a new 2IͤFHRI+HDW5HVSRQVHDQG0LWLJDWLRQ6WUHHW7UDQVSRUWDWLRQWRDFKLHYHWKHJRDOVRIWKH7UHHDQG6KDGH0DVWHU3ODQ Fire to increase staff for the Energy System Inspection Program; and Environmental Programs to conduct greenhouse gas emissions inventories and to assist with implementing the City's newly created Climate Action Plan. The affordable housing and homelessness category totals $2.8 million and is intended to increase affordable housing and help the homeless. This category includes funding for: Housing community outreach and development of affordable or mixed- income housing, as well as onetime funding for infrastructure improvements at Santa Fe Springs affordable apartment homes; Neighborhood Services, Street Transportation, and Public Works for Human Services Campus downtown area clean-ups and outreach; and Human Services to create a homeless advocate workforce specialist to help the homeless ͤQGHPSOR\PHQW The building community and responding to growth category totals $4.7 million and is intended to address the need for more resources due to growth and demand for City amenities and services. This category includes funding for: Parks and Recreation staff to support the growing needs at various parks and recreation centers and the operations of three new parks in the Southwest region of the City; Community and Economic Development to provide targeted economic development opportunities for the West region of the City; and Human Services to increase engagement and connection to treatment for residents with HIV/AIDS and a position to serve as a navigator for connection to services for residents who are veterans of the military. The administrative accountability category totals $3.1 million and includes additions across several City departments. The intent of this category is to improve service delivery for City elections, public records requests, information technology, administrative functions, and to increase funding for maintenance of the City's aging fleet of vehicles. 6LJQLͤFDQWVHUYLFHVDUHSURYLGHGWKURXJKQRQ*HQHUDO)XQGUHVRXUFHV7KHVHLQFOXGH6SHFLDO5HYHQXH)XQGVOLNHYRWHU approved public safety and transit taxes, and Enterprise Funds like Water Services and Solid Waste. The 2021-22 nonGeneral Funds include $4.3 million in new funding for various departments. Some of the major programs include: Water Services to implement water conservation programs; Planning and Development for plan reviews and inspections; and Solid Waste for residential refuse and recycling collection necessary due to household growth. The chart that follows indicates how major services provided to Phoenix residents have been adjusted in response to local HFRQRPLFDQGͤQDQFLDOFRQGLWLRQV 47 Table of Contents PROGRAM SERVICE LEVEL IN 2010-11 SERVICE CHANGES THROUGH 2020-21 SERVICE CHANGES FOR 2021-22 The 2020-21 budget includes several service enhancements. The Center for Continuous improvement was created and staffed to focus on the department mission to constantly and continuously improve both the organization and individual employees by focusing on ͤYHNH\DUHDVRSHUDWLRQDQGSROLF\ management, accountability, technology and transparency, messaging, and employee wellness and development. The Compliance and Oversight Bureau was created to implement the Police Department’s ongoing commitment to data-driven decision making, accountability and organizational commitment and transparency. The 2021-22 budget includes several service enhancements. Additional support staff will be added to the Public Records and Services Unit to help eliminate public records request backlogs, ensure timely request processing, and improve overall customer service and transparency. PUBLIC SAFETY POLICE Personnel Resources: In 2010-11, the Police Department had 3,558 sworn and 938.7 civilian employees. 6LJQLͤFDQWKLULQJHIIRUWVFRQWLQXHGLQ 2020-21, with the planned hiring of 210 SROLFHRIͤFHUV7KHVHHIIRUWVVXSSRUW the department’s goal of reaching 3,125 ͤOOHGVZRUQSRVLWLRQVRUDSSUR[LPDWHO\ RIͤFHUVIRUHYHU\UHVLGHQWV $VRI0DUFKWKHUHZHUHͤOOHG sworn positions. The 2020-21 budget also provides for 1,093.6 civilian positions. Additional staff will be hired to meet federal National Incident-Based Reporting System requirements, which will provide more extensive crime reporting statistics and enhance crime analysis. Staff will be hired for the Professional Standards Bureau Inspection Unit’s Early Intervention System, which will ensure timely and accurate data and implement intervention recommendations, with the goal of identifying employee risk and preventing adverse events. 7HPSRUDU\'HWHQWLRQ2IͤFHUSRVLWLRQV will be added to the Centralized Booking Detail to take the place of sworn positions, DOORZLQJRIͤFHUVWREHUHGHSOR\HGWRKLJKHU priority duties. Funding will be added for a third party to conduct a comprehensive review of Police policies and practices with the goal to improve community trust and transparency. Funds will be used to hire independent third parties that have a demonstrated track record with assisting police departments across the country achieve this goal. The sworn hiring plan continues in 202122, with the planned hiring of 120 police RIͤFHUV Response Time Average: Response time for 2010-11 Priority 1 emergency calls was an average of 5 minutes. Due to sworn vacancies in the Police Department, overtime usage has increased WRPDLQWDLQPLQLPXPVWDIͤQJOHYHOVZLWKLQ patrol. This has negatively impacted Priority 1 emergency call response times, which are currently 6 minutes and 30 seconds. The department has strived to maintain the percentage of 911 calls answered within 15 seconds in the 90th percentile, per National Emergency Number Association (NENA) VWDQGDUGVKRZHYHUKLULQJDQGVWDIͤQJ challenges have reduced the percentage to 79 percent for 2020-21. 48 The 2021-22 budget provides for an estimated 6 minute and 36 second average response time for Priority 1 calls. Table of Contents PROGRAM SERVICE LEVEL IN 2010-11 SERVICE CHANGES THROUGH 2020-21 SERVICE CHANGES FOR 2021-22 Since 2010-11, response times have increased WRPLQXWHVVHFRQGVIRUDOOͤUHDQGPHGLFDO emergency calls. This increase is at least partly DWWULEXWHGWRVWDIͤQJDQGGHSOR\PHQWFKDQJHVIRU paramedic engine companies and ambulances. The overall incident activity level increased 38 percent from 2010-11 to 2020-21. The 2021-22 budget recommends retaining current emergency UHVSRQVHVWDIͤQJOHYHOVWR SUHVHUYHOHVVWKDQͤYHPLQXWH DYHUDJHUHVSRQVHWLPHIRUDOOͤUH and medical emergency calls. The 2010-11 budget included the elimination of two full-time ambulances and the reduction of part-time ambulance operational times. In-service hours for part-time ambulances were reduced from 12 hours to 10.8 hours per day. These changes decreased the Emergency Transportation System to 21 full-time and 11 part-time ambulances. The 2021-22 budget has no service changes. PUBLIC SAFETY FIRE Response Time Average: In 2010-11, the Fire Department maintained an average response time of 4 minutes 42 seconds IRUDOOͤUHDQGPHGLFDO emergency calls. Emergency Transportation: In 2010-11, the City had a total of 21 full-time and 11 part-time ambulances in service. The 2012-13 and 2013-14 budget’s each included adding staff for an additional One and One Ambulance (seven sworn positions) to meet state -mandated response times. This brought the total to 23 full-time and 11 part-time ambulances. The 2016-17 budget included a total of 23 full-time and 14 part-time ambulances in service. The 2017-18 budget included the addition of one dedicated part-time ambulance for emergency response at Sky Harbor Airport. This unit will assure compliance with timely ambulance transportation response. This addition gave the department a total of 23 full-time and 15 part-time ambulances in service. In 2018-19 an additional full-time ambulance was placed into service bringing the total to 24 full-time rescues and 15 part-time rescues. The 2019-20 budget includes funding for two additional full-time ambulances, bringing the total to 26 full-time UHVFXHVDQGSDUWWLPHUHVFXHV7KHͤUVWDPEXODQFH is for the new Fire Station 55 located at I-17 and Jomax Road. The second ambulance is for Fire Station 58 to improve ambulance response time in the southwest region of the City of Phoenix and will be staffed by approved sworn positions previously unbudgeted. The 2020-21 budget has no service changes. 49 Table of Contents PROGRAM SERVICE LEVEL IN 2010-11 SERVICE CHANGES THROUGH 2020-21 SERVICE CHANGES FOR 2021-22 Annual 2015-16 bus revenue miles are estimated at 17,202,500, Express/ RAPID revenue miles are estimated at 920,700, and Dial-a-Ride service hours are estimated at 323,810. &LW\&RXQFLODSSURYHGEXVVHUYLFHPRGLͤFDWLRQVLPSOHPHQWHGLQ2FWREHU DQG$SULO3XEOLF7UDQVLWPRGLͤHGVHYHUDOEXVURXWHVLQFUHDVHG route frequency on some existing routes, and added one new bus route to PHHWULGHUVKLSGHPDQGDQGLPSURYHURXWHHIͤFLHQF\ Annual 2016-17 local bus revenue miles are estimated at 17,206,500, Express/RAPID revenue miles are estimated at 920,700 and Dial-a-Ride service hours are estimated at 323,286. City Council approved expanding bus service and increasing service frequency in Phoenix to at least every 30 minutes on all routes in October 2016 and April 2017. Public Transit Department also extended Route 39 to Dreamy Draw Park and Ride and extended Route 122 to service both Arizona State University (ASU) West and 19th Avenue and Dunlap light rail station. Annual 2017-18 local bus revenue miles are estimated at 19,836,900, Express/RAPID revenue miles are estimated at 920,700 and Dial-a-Ride services hours are estimated at 322,760. In October 2017, Public Transit Department extended Route 19 to service Happy Valley Towne Center, Route 60 to service 24th Street and Camelback area, and improved frequency on Routes 29 and 50. In April 2018, Public Transit Department extended Route 32 to Arizona Mills Mall in Tempe via 48th Street, University, 40th Street, and Baseline Road. Route 51 has been extended on 51st Avenue from Lower Buckeye Road to Baseline Road. In addition, the extended 51 consolidated with Route 251 to form a single bus route on 51st Avenue from ASU West to Pecos Road. Frequency improvements were made on Routes 3 and 19 in April 2018. Annual 2018-19 local bus revenue miles are estimated at 20,372,200, Express/RAPID revenue miles are estimated at 850,500 and Dial-a-Ride services hours are estimated at 324,864. In October 2018, Public Transit Department and all jurisdictions under the Valley Metro system restored weekday service levels on Martin Luther King Jr. Day, Presidents’ Day, Veterans’ Day, Day after Thanksgiving, and Christmas Eve. Public Transit Department also made a minor routing change on Route 8 in Downtown Phoenix and Route 106 in Metrocenter Mall. Frequency improvements were completed for Route 41 on Indian School Road. In April 2019, Public Transit Department made several schedule PRGLͤFDWLRQVWRWKH65,,(DVWDQG,:HVW5$3,'E\DGGLQJRU shifting several trips to better serve our riders. In addition, a minor routing PRGLͤFDWLRQRQWKH6RXWK0RXQWDLQ(DVW5$3,'ZDVPDGHWRLPSURYHURXWH reliability. On April 5, 2020, in response to the ridership decline on RAPID/Express routes due to COVID-19, Public Transit reduced RAPID and Express trips into Downtown Phoenix. In April 2020, Public Transit Department’s service change items include PLQRUURXWHPRGLͤFDWLRQRQ5RXWH5RXWHDQGWKH60$57&LUFXODWRU On May 4, 2020, in response to the ridership decline and operator shortage RQORFDOURXWHV3KRHQL[RSHUDWHGͤ[HGURXWHVHUYLFH̵VVHUYLFHKRXUVZHUH reduced to weekdays 5am-11pm, weekends 6am-11pm. On May 18, 2020, reduction in service hours for local routes is applied to RPTA operated routes in Phoenix. Annual 2019-20 local bus revenue miles with COVID-19 related reduction are estimated at 20,303,300. Express/RAPID revenue miles with COVID-19 related reduction are estimated at 827,400 and Dial-a-Ride services hours are estimated at 326,966. Annual 2020-21 local bus revenue miles were originally estimated at 20,205,800 but reduced to 18,761,400 due to COVID-19. Express/RAPID revenue miles were originally estimated at 944,300 but reduced to 491,700 due to COVID-19. Dial-a-Ride services hours are estimated at 325,390 and have not been reduced due to COVID-19. Annual 2021-22 local bus revenue miles are estimated at 20,210,200. TRANSPORTATION PUBLIC TRANSIT Service Miles/Hours: In 2010-11, an estimated 16,853,484 bus miles and 324,990 hours of Dial-a-Ride services were provided on weekdays and weekends in the City of Phoenix. 50 Express/RAPID revenue miles are estimated at 948,000, and Dial-a-Ride services hours are estimated at 326,000. Table of Contents PROGRAM SERVICE LEVEL IN 2010-11 SERVICE CHANGES THROUGH 2020-21 SERVICE CHANGES FOR 2021-22 Average Weekday Bus Ridership: In the 2015-16 budget, average weekday ridership is estimated at 125,097. In the 2021-22 budget, average weekday ridership is estimated at 86,250. In 2010-11, the average weekday bus ridership was estimated to be 126,800. In the 2016-17 budget, average weekday ridership is estimated at 125,097. TRANSPORTATION PUBLIC TRANSIT In the 2017-18 budget, average weekday ridership is estimated at 117,000. In the 2018-19 budget, average weekday ridership is estimated at 115,000. In the 2019-20 budget, average weekday ridership is estimated at 89,250, the decrease from the prior year was due to COVID-19. In the 2020-21 budget, average weekday ridership was originally estimated at 86,250 but reduced to 46,000 due to COVID-19. STREET TRANSPORTATION Major and Collector Street Sweeping and Maintenance: In 2010-11, street sweeping and maintenance was scheduled to occur every 14 days. Residential Street Sweeping: In 2010-11, the City provided street sweeping service four times a year. There were no changes in service from 201112 through 2019-20. Frequency of service remains at every two weeks. 2021-22 budget includes no changes in service for major and collector sweeping and maintenance. For 2020-21 there are no service changes. There were no changes from 2011-12 through 2019-20. Frequency of service remains at four times per year. For 2020-21 there are no service changes. 51 The 2021-22 budget includes no changes in service for residential street sweeping. Table of Contents PROGRAM SERVICE LEVEL IN 2010-11 SERVICE CHANGES THROUGH 2020-21 SERVICE CHANGES FOR 2021-22 The 2011-12 budget included funding for 39 miles of City streets to be sealcoated. The 2021-22 budget includes 39 miles of streets to be sealcoated. The bond funded portion of the Accelerated Pavement Maintenance Program ended in 2020-2021 reducing the number of miles per year. TRANSPORTATION STREET TRANSPORTATION Sealcoat: The 2010-11 budget provided sealcoating for 41 miles of City streets. The 2012-13 budget included 45 miles of streets to be sealcoated. It also included 20 miles of the FAST program. The 2013-14 budget provided no changes to service levels. The 2014-15 budget provided no changes to service levels. However, the two September 2014 storms diverted attention from sealcoat to repairs. The 2015-16 budget included 68 miles of streets to be sealcoated. It also included 10 miles of the FAST, and 26 miles of preservative arterial street crack sealing programs. Transportation 2050 funds from passage of Proposition 104 improved the budget, coupled with the availability of improved technology allowed for revamping of the sealcoat program to increase the level of service. The 2016-17 budget provided funding for 297 miles of streets to be sealcoated. New resurfacing treatments were added that LQFOXGH7LUH5XEEHU0RGLͤHG6XUIDFH6HDO 75066 DQG3RO\PHU0RGLͤHG0DVWHUVHDO (PMM). The addition of these treatments, and additional Arizona Highway User Revenue (AHUR) funding, allowed the number of miles treated to increase to a total of 360 miles. The 2017-18 budget provided funding for 212 miles of streets to be sealcoated. The 2018-19 budget provided funding for 200 miles of streets to be sealcoated. The 2019-20 budget includes 110 miles of streets to be sealcoated. The 2020-21 budget includes 280 miles of streets to be sealcoated. 52 The number of miles sealcoated may vary year over year based on the streets selected and the distribution of wide versus narrow streets treated. It can also vary based on the method of sealcoat used. Table of Contents PROGRAM SERVICE LEVEL IN 2010-11 SERVICE CHANGES THROUGH 2020-21 SERVICE CHANGES FOR 2021-22 The 2011-12 budget provided 153 miles of overlay. The increase in miles of overlay was due to a carryover of AHUR Funds from the prior year. The 2021-22 budget provides for 29 miles of overlay. The bond funded portion of the Accelerated Pavement Maintenance Program ended in 2020-2021 reducing the number of miles per year. TRANSPORTATION STREET TRANSPORTATION Asphalt Overlay: In 2010-11, 85 miles of asphalt overlay were estimated to be completed, including 65 miles that were funded by the American Recovery and Reinvestment Act (ARRA). The 2013-14 budget provided for 106 miles of overlay. The change in overlay is due to the elimination of the ARRA funding and the addition of $5 million in AHUR. The 2014-15 budget provided no changes to service levels. However, the two September 2014 storms diverted attention from overlay to repairs. The 2015-16 budget provided for 100 miles of overlay. The 2016-17 budget allowed for 90 miles of overlay. Additional AHUR funding was added to increase the total to 121 miles. The 2017-18 budget allowed for 76 miles of overlay. The 2018-19 budget provided for 187 miles of overlay. This included overlays as part of the Accelerated Pavement Maintenance Program, which started in 2018-19. The 2019-20 budget provided for 261 miles of overlay completed. The 2020-21 budget provided for 90 miles of overlay to be completed. 53 The number of miles resurfaced can vary year over year based on the streets selected and the distribution of wide versus narrow streets being treated. Table of Contents PROGRAM SERVICE LEVEL IN 2010-11 SERVICE CHANGES THROUGH 2020-21 SERVICE CHANGES FOR 2021-22 This homeownership program allows eligible tenants the opportunity to purchase a home. In the 2021-22 budget, the program is expected to sell 20 units, reducing its inventory to 171 units. COMMUNITY DEVELOPMENT HOUSING Scattered Sites Housing Program: In 2010-11, the Housing Department had 427 units. Affordable Housing Program: In 2010-11, this program had 2,174 units for families and individuals. At the end of 2020-21, the inventory of 191 units reflects the reduction of 289 homes due to sales to eligible residents over the past decade under the Section 32 program and the demolition/disposition of properties under the Section 18 program. By the end of 2011-12, the Affordable Housing Program was expanded to a total of 3,115 city-owned units for families and individuals, with the addition of 483 units from the newly renovated units at Park Lee and The Symphony. In the 2021-22 budget, the program is expected to remain at 2,637 units. At the end of 2020-21, the Affordable Housing Program consists of 2,637 units for families. Federal Assisted Housing Program: In 2010-11, the total inventory of assisted housing units was 1,909. Housing Payment Assistance Program: In the 2010-11 budget, the rental assistance program provided 6,096 units of vouchers for low income residents in the private housing market. At the end of 2020-21, the Federal Assisted Housing Program consists of 1,695 units for families and individuals. In the 2021-22 budget, the program is expected to decrease the number of units for a total of 1,615 due to continuing sales of Section 32 properties and the conversion of Public Housing units to Rental Assistance Demonstration units. At the end of 2020-21, the rental assistance program will provide 6,977 vouchers for low income residents in the private housing market. In the 2021-22 budget, the program is expected to maintain 7,300 vouchers for low income residents in the private housing market. 54 Table of Contents PROGRAM SERVICE LEVEL IN 2010-11 SERVICE CHANGES THROUGH 2020-21 SERVICE CHANGES FOR 2021-22 COMMUNITY DEVELOPMENT NEIGHBORHOOD SERVICES Neighborhood Preservation Case Cycle Time (Days) In 2010-11, the average case cycle time was 51 days. In 2011-12, additional performance standards and quality control measures were initiated along with ongoing process improvements and some division reorganization to reduce the overall average case cycle time to 45 days in 2013-14, and to 33 days in 2014-15. From 2015-16 through 2020-21, the overall average case cycle time was 34 days or less. 55 The overall average case cycle time in 202122 is anticipated to increase to 36 days due to ongoing COVID-19 safety protocols and regulations remaining in effect. Table of Contents PROGRAM SERVICE LEVEL IN 2010-11 SERVICE CHANGES THROUGH 2020-21 SERVICE CHANGES FOR 2021-22 COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT Employment Growth Rate Compared to Other Cities: In 2010, Phoenix’s employment growth rate was as follows: Austin – 2.0% PHOENIX – 1.7% Dallas – 1.4% Ft. Worth-Arlington – 1.0% San Jose – 1.0% San Antonio – .8% San Diego – .5% Los Angeles/Long Beach – .3% Kansas City – (1.9)% As the below data show, due to the COVID-19 pandemic, employment in 2020 fell for all benchmark cities. Based on data from the Bureau of Labor Statistics, Phoenix’s employment growth rate fell by nearly 6.0 percent in 2020 with a rate of (2.4) percent versus 3.5 percent in 2019. This places Phoenix 6th among the ten benchmark cities below. Kansas City saw the lowest drop in employment at (1.2) percent, while Los Angeles saw the highest employment drop at (13.9) percent. The Phoenix unemployment rate saw a large increase due to the pandemic. Peak unemployment occurred in April 2020 at 13.9 percent. For the remainder of the year, the unemployment rate dropped to 7.1 percent in December. Kansas City – (1.2)% Dallas – (1.6)% Ft. Worth – (1.7)% Austin – (2.1)% San Antonio – (2.1)% PHOENIX – (2.4)% Denver – (4.0)% San Jose – (7.0)% San Diego – (7.3)% San Francisco – (10.6)% Los Angeles – (13.9)% 56 Based on data from the Arizona &RPPHUFH$XWKRULW\2IͤFHRI(FRQRPLF Opportunity, Phoenix’s employment level was expected to increase by 101,390 from 2020 to 2022 prior to the COVID-19 pandemic. Given economic conditions related to the pandemic and the decline in employment LQLWLVGLIͤFXOWWRDQWLFLSDWH employment growth in 2021. Table of Contents PROGRAM SERVICE LEVEL IN 2010-11 SERVICE CHANGES THROUGH 2020-21 SERVICE CHANGES FOR 2021-22 COMMUNITY ENRICHMENT HUMAN SERVICES Head Start Program: In 2010-11, the program served 3,090 children. The program served 3,667 children during 2015-16, of which 845 were included in the Early Head Start Program. The program served 4,321 children during 2016-17, of which, 831 were included in the Early Head Start Program. The program served 4,377 children during 2017-18, of which, 868 are included in the Early Head Start Program. The program served 4,289 children during 2018-19, of which, 765 are included in Early Head Start Program. The program served 4,220 children in 2019-20, of which, 745 are included in the Early Head Start Program. In 2020-21 the Head Start program is expected to serve more than 2,338 children, and 1,726 of those will be in full day Head Start classes while the rest will continue to attend half day classes. The Early Head Start Program will serve more than 371 children. The decline in the number of children served was a result of restricted classroom attendance due to the COVID-19 pandemic. Senior Nutrition Program: For 2015-16, the program served 538,133 meals. In 2010-11, the program served 611,000 congregate and homedelivered meals. For 2016-17, the program served 494,230 meals. For 2017-18, the program served 448,799 meals. The meals served decreased due to the demographics shifting towards attendees who are joining the center for activities and classes, while not partaking in meal services. For 2018-19, the program served 444,385 meals. The meals served decreased slightly due to the continued demographics shifting towards attendees who are joining the center for activities and classes, while not partaking in meal services. In 2021-22 the Head Start program is expected to serve more than 3,451 children, and 1,737 of those will be in full day Head Start classes while the rest will continue to attend half day classes. The Early Head Start Program will serve more than 488 children. The increase in children served is due to the phasing in of the return to normal operations. In 2021-22 the program expects to serve 716,918 meals. This includes projections for up to PHDOVVSHFLͤFWR COVID-19 pandemic relief using federal funding from the Area Agency on Aging. For 2019-20, the program served 499,273 meals. The meals served included an additional 44,818 meals using federal funding from the C.A.R.E.S. Act for responding to COVID-19. In 2020-21 the program served 706,920 meals. This includes 197,220 PHDOVVSHFLͤFWR&29,'SDQGHPLFUHOLHIXVLQJIHGHUDOIXQGLQJIURP the Area Agency on Aging. PARKS AND RECREATION Swimming Pools: In 2010-11, 20 of 29 pools continued to provide open swim. Eight pools were closed for infrastructure repairs on a rotating basis and Cortez Pool was FORVHGLQGHͤQLWHO\GXHWR WKHQHHGIRUVLJQLͤFDQW structural repairs. In 2011-12, eight pools previously closed for infrastructure repairs were re-opened. This increased the number of open pools to 28 out of 29. In 2014-15, the number of open pools increased to 29 with the reopening of Cortez Pool. Between 2015-16 and 2018-19, no changes were included in the budget. In 2019-20 all pools were closed during the summer months of 2020 in response to the COVID-19 pandemic. In 2020-21 all pools were closed during July and August of 2020 in response to the COVID-19 pandemic. City Council directed 12 of the 29 pools to reopen in May 2021. 57 No changes are included in the 2021-22 budget for swimming pools. As of May 2021, no date has been set for the remaining 17 pools to resume operations. Table of Contents PROGRAM SERVICE LEVEL IN 2010-11 SERVICE CHANGES THROUGH 2020-21 SERVICE CHANGES FOR 2021-22 COMMUNITY ENRICHMENT PARKS AND RECREATION Swimming Pool Season: In 2010-11, the budget allowed for an eight-week season. The 2012-13 budget added open swim hours at nine pools, representing all Council districts and City regions, from 1 to 7 p.m. each day in August through the Labor Day Holiday. No changes were included in the budget for 201314 through 2015-16. No changes are included in the 2021-22 budget for the swimming pool season. As of May 2021, recreational swim and dive teams, water basketball programs and Cigna Summer programs continue to be temporarily suspended, in response to the COVID-19 pandemic. In 2016-17, 29 pools were open on Memorial Day weekend through the last weekend in July; due to additional “Kool Kids” funding from Cigna, 11 pools remained open in August through the Labor Day Holiday. No changes were included in the budget for 201718 and 2018-19. In 2019-20 all pools were closed during the summer months of 2020 in response to the COVID-19 pandemic. As of May 2021, recreational swim and dive teams, water basketball programs and Cigna Summer programs continue to be temporarily suspended for the 2020-21 season, in response to the COVID-19 pandemic. School Recreation Program During School Year: The 2010-11 budget reduced after-school sites to 25 General Fund VXSSRUWHGVLWHVDQGͤYH full cost recovery sites. In 2012-13, nine PAC sites were restored, which brought the total number of sites to 39. The 2013-14 budget increased PAC sites to 44. In 2014-15, the number of PAC sites started with 44. Two sites were cancelled mid-year due to low enrollment. The 2015-16 budget had 42 PAC sites. In 2016-17, eight smaller sites were combined into four “super” sites, which reduced the number of sites to 38. No changes were included in the 2017-18 budget. The 2018-19 budget decreased PAC sites to 37 due to the Kyrene School District discontinuing services. In 2019-20, PAC sites decreased from 37 to 36 due to Washington School District discontinuing services at one site. All PAC sites ceased operations in March 2020 in response to the COVID-19 pandemic. In 2020-21, as of May 2021 all PAC sites remained closed in response to the COVID-19 pandemic. 58 No changes are included in the 202122 budget for Phoenix Afterschool Center (PAC) sites. As of May 2021, all PAC sites continue to be temporarily suspended in response to the COVID-19 pandemic. Table of Contents PROGRAM SERVICE LEVEL IN 2010-11 SERVICE CHANGES THROUGH 2020-21 SERVICE CHANGES FOR 2021-22 COMMUNITY ENRICHMENT LIBRARY Central Library: The 2010-11 budget included 58 hours of operation per week. In December 2010, the hours at Burton Barr Central Library were expanded by six hours per week, from 52 to 58 hours per week. In July 2012, Burton Barr Central Library expanded morning hours by six hours, from 58 to 64 hours per week, opening at 9 a.m. instead of 11 a.m. on Tuesdays, Wednesdays and Thursdays. In 2013-14, the number of electronic materials was increased by over 13,000 items. In July 2013, MACH1 opened. MACH1 is a space for coding classes, robotics, science cafes, and STEM programming for all ages. It is only open for scheduled classes and programs. In January 2014, hive@central opened. The hive@central is a collaborative space designed to bring together inventors, problem-solvers, entrepreneurs, and small businesses. In January 2015, partnered with St. Mary’s Food Bank to provide Kids Café, a meal service program designed to provide a free, healthy meal along with educational programs. In January 2015, College Depot launched the ReEngage Phoenix program to provide adults 21 and older and youth who have not completed high school with the opportunity to earn an accredited high school diploma and a career FHUWLͤFDWHWKURXJK&DUHHU2QOLQH+LJK6FKRRO Beginning March 2015, materials that do not have holds placed are automatically renewed, enhancing the customer experience. The 2016-17 budget restored $100,000 for electronic materials, representing a 22 percent increase. Funding provided an alternative method of delivering services following reductions to branch hours in 2009-10 and 201011. In January 2017, entered into a contract with Southwest Autism Research & Resource Center (SARRC) to operate a café at Burton Barr Library. Burton Barr Central Library was closed the summer of 2017 due to storm damage and reopened in June 2018. The renovation of Burton Barr Central Library expanded the College Depot, MACH1 and Children’s areas within the library. The College Depot area expanded from 4,000 to 12,000 square feet which enabled an increase in the number of workshops. In addition to doubling the number of “applying for college” workshops, each workshop accommodates double the number of attendees. Specialty programming was added to include more summer camps; additional break-out sessions with expertise; additional GED sessions; “Youth Work Readiness” sessions, and additional capacity for in service and workshop sessions. 59 The 2021-22 budget adds two positions for the expansion of the College Depot program to accommodate growing demand for additional GED classes, ACT/SAT prep classes, and one-on-one counseling appointments. The program expansion is projected to serve additional students, offer additional classes, and increase the oneon-one college counseling appointments. StartupPHX, formerly known as hive@Central, will offer additional business and entrepreneurial services, in partnership with other departments and agencies. Additional Arizona Room digitized collection will be made available online through the Phoenix Public Library website and the Arizona Memory Project. Several online virtual tours of specialty spaces will be made available through the Phoenix Public Library website. Table of Contents PROGRAM SERVICE LEVEL IN 2010-11 SERVICE CHANGES THROUGH 2020-21 COMMUNITY ENRICHMENT LIBRARY Central Library Continue: The MACH1 space added two designated computer labs. The space doubles the capacity for computer-related classes and programs. The designated classroom space allows break-out sessions which provides different age groups and level of expertise access to resources. A designated space for the sewing machine program was added, enhancing focused learning. A 3D printer room was added which allows for an increase in the number of 3D printers. Designated computers are available for customers to book time. The open making space is upgraded to include state-of-the-art flooring, tables and outlets to allow the addition of another full summer camp series. The Children’s Space expanded from 5,000 square feet to 14,000 square feet. Design was updated to include a larger capacity Storytime area. Expansion also included a tripling of the children’s materials collection with an increase to the “Great Children’s Book” specialty collection. A designated children’s makers’ programming space, “MACH.5,” for ages birth to 12 was added. Specially designed early literacy interactive furniture and “Little Sprouts” (children’s seed library) were incorporated. No service changes were included in the 2019-20 budget, with hours of operation at 64 hours per week. Two full-time Municipal Security Guard positions were added to provide continuous security coverage for patrons and staff at the Burton Barr Central Library during all hours of operation. In 2019-20, an automated materials handling (AMH) system was installed at Burton Barr Central Library to generate HIͤFLHQFLHVDQGHQDEOHFXVWRPHUVWRUHWXUQPDWHULDOV 24/7 and get immediate acknowledgement of the returned item(s). In partnership with First Things First, the Human Services 'HSDUWPHQWDQGWKH