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Council Chambers Thursday, June 9, 2022 Public Hearing 2022-23 Proposed Budget 2023-2032 Capital Improvement Program (CIP) 2022-23 Property Tax Levy 27.8% increase overall $755M operating (+9.8%) $597M capital (+61.2%) 22.7% increase in General Fund Ongoing operating (+12%) FY 2022-23 Proposed Budget “Staying Connected” Total Budget $1,352,658,536 Total General Fund: $412,923,538 Proposed Budget • Adheres to financial policies and is structurally balanced • Uses Strategic Framework to guide decisions • Provides for cost-effective, quality services • Maintains long-term financial sustainability • Engaged Residents through input opportunities • Budget Survey, Kickoff, & Two Workshops • Budget Advancement of Strategic Framework Outreach Videos • All-day Budget Briefing • Tentative and Final Adoption Budget Increase Drivers Revenues • Prior 2 year’s budgets artificially low due to COVID • Current budget did not reflect Intel expansion revenue impacts • Increased revenues to reflect actual economic environment Expenditures • Inflation increasing operations ($3.6M) and capital (4%-7%) budgets • Personnel costs increasing to invest in City workforce and retain employees; market, class and comp, and healthcare • Capital projects increased to address aging infrastructure, bond authorized projects, and grant funded projects • Includes $119M in projects for infrastructure to support Intel expansion Grants Debt • Includes $34.6M in American Rescue Plan Act (ARPA) funds included in FY 2022-23 budget as carryforward • Enhance technology capabilities to assist with mobility, security and cloud-based solutions using AZCares; requiring additional ongoing resources to maintain • Additional one-time payments to continue planned paydown of PSPRS unfunded liability Operating Budget Highlights Slight reduction of City property tax rate, no change to Transaction Privilege Tax (TPT) rates, and no new fees Anticipate Water, Wastewater, and Solid Waste rate changes as they were delayed from prior year Budget maintains existing service levels and enhances programs tied to Strategic Framework Adds funding for labor association commitments and general employee merit/market Plans towards debt reduction: $50M in one- time funding for pay- down of Public Safety Personnel Retirement System (PSPRS) liability Maintains strong reserves (includes 15% General Fund contingency reserve and $10M budget stabilization reserve) • Continued emphasis on maintaining aging infrastructure • Updated to reflect inflationary pressures • Includes $119M in projects for infrastructure to support Intel expansion • Continues to fund requested projects, such as: • Police Forensic Lab facility • All phases of Mesquite Groves Park • Fiber upgrades • Tumbleweed Expansion/Multi-Gen Facility • Airport improvements/Cooper Rd. extension 2023-2032 CIP Highlights $1.66B- Total 10-Year CIP $597.4M – Total FY 2022-23 CIP Public Hearing 2022-23 Property Tax Levy Breakdown of $1 of Typical Chandler Property Tax Bill City of Chandler 10.2 cents Public Schools and Community College Districts 66.9 cents Maricopa County & Special Districts 22.9 cents *Based on 2021 Tax Bill information. Exact split will vary depending on the school district and any other special taxing districts on the bill. FY 2021-22 LPV $3.464B 2021-22 Levy $38,538,200 FY 2022-23 LPV $3.703B 2022-2023 Levy $40,828,804 +6.9% increase 5.4% New Property 1.5% Appreciation Levy Increase $2,290,604 FY 2022-23 Property Tax Levy Tax rate reduction from $1.1126 to $1.1026 reduces impact of Limited Property Value (LPV) increase 9 Impact of City Tax Rate Reduction on Median Value Homeowner Budget Event Date Council Budget Kickoff Completed Oct. Citizen Budget Survey Completed Dec. Council Workshop #1 Completed Feb. Budget Advancement of Strategic Framework Outreach Videos Completed Mar. Council Workshop #2 Completed Mar. All Day Budget Briefing Completed Apr. Council Meetings and Statutory Requirements Tentative Budget/CIP Adoption Completed May Public Hearing and Final Adoption Tonight Adoption of Tax Levy 06/23/2022 Key Budget Dates For your consideration: Res. #5590 Adopts the FY 2022-23 Annual Budget, sets the amounts proposed to be raised by direct property taxation, and Adopts the 2023-2032 Capital Improvement Program Questions? City Council final vote on Property Tax Levy June 23, 2022 For more information visit chandleraz.gov/budget or call the Budget Office at (480) 782-2252