Phoenix’s public works department is forecasting a financial shortfall for the next couple years.
Director Felipe Moreno said they’re buying fewer trucks since prices jumped from $350,000 in 2020 to more than $500,00 today.
“That’s the only thing we can really do that doesn't impact actual service delivery and the way to save money quickly,” he said. “This is not something we love to do, because there is a compounding impact that we pay later for.”
Moreno told councilmembers that labor costs have increased more than 30% since the city boosted compensation.
“That's paid dividends and ways of ensuring that we have a workforce that's out there ready to work. We all saw and suffered through the labor shortages the last couple of years, and this has really helped shore that up,” he said.
In 2022, Phoenix didn't have enough staff to keep up with bulk trash collections.
“The public-facing stuff is the trucks out there every day picking up the garbage, but there is a huge backend part of this that ensures that we are doing this safely, that we are doing this responsibly, and that we have enough space for the next century for our Phoenicians to have sanitation,” Moreno said.
The department reported it’s been deferring non-critical projects but it’s still not enough to cover projected deficits of $5.3 million in fiscal year 2024-25 and $86.6 million in fiscal year 2025-26.
The department will return to the council this fall with more details and ways to come up with more money.
