THE PHOENIX, ARIZ., POLICE DEPARTMENT ANNUAL REPORT SURVEYS THE GROWTH OF THE DEPARTMENT TO OVER 2,000 EMPLOYEES, AND RECOUNTS INNOVATIONS IN DEPARTMENTAL METHODS DURING 1978. DECENTRALIZATION AND TEAM POLICING WAS BEGUN ON A LIMITED BASIS, WITH SPECIAL OFFICER TRAINING FOR THOSE INVOLVED IN THE PROJECT. OTHER PROGRAMS STRESSED COMMUNITY AWARENESS AND INVOLVEMENT; YOUTH ACTIVITIES, INCLUDING COUNSELING AND JOB PLACEMENT, WHICH RESULTED IN REDUCED GANG-RELATED ACTIVITY; A CRIME-RESISTANCE PROGRAM USING CABS TO REPORT SUSPICIOUS ACTIVITY; CANINE DETAIL REORGANIZATION; A 'STING' TYPE STOREFRONT FENCING OPERATION WHICH RECOVERED NOT ONLY STOLEN GOODS BUT ALSO RESULTED IN DRUG RELATED ARRESTS; AND A COMPUTER-AIDED DISPATCH SYSTEM. ADDITIONAL DEPARTMENT ACTIVITIES IN TRAFFIC, GENERAL AND SPECIAL INVESTIGATIONS, COMMUNICATIONS, COMPUTER SERVICES, PLANNING AND RESEARCH ARE SUMMARIZED BY LISTINGS OF PROGRAMS AND ACCOMPLISHMENTS. CRIME REPORTS THAT SHOW THE INDEX UP 5 PERCENT OVER 1977 ARE ALSO LISTED. STATISTICS FOR ADULTS, JUVENILES, PROPERTY LOSSES TO THEFT, BURGLARY AND AUTO THEFTS, MURDER, RAPE, ASSAULT AND OTHER CRIMES ARE SUMMARIZED IN TABLES, ALONG WITH POLICE RESPONSE TO CRIME, INCLUDING ARRESTS MADE, LABORATORY SERVICES, AIR PATROL ACTIVITIES, AND OTHER CALLS FOR SERVICE. POLICE BUDGET TRENDS FOR FISCAL YEARS 1974 THROUGH 1978 ARE GIVEN. PHOTOGRAPHS ARE INCLUDED. (RFC)