FY 2023-24 Budget Kickoff Presentation

FY 2023-24 
Budget Kickoff
with Mayor and Council
Council Conference Room
Thursday, October 27, 2022 | 4:00 p.m.

• Current Year Budget Actions
• Process Review and Theme
• Strategic Framework (Goals/Focus Areas) 
• Budgetary Impacts for New Year
• Action Items to Achieve Strategic Framework
• Capital Guidelines
• Financial Policies
• Key Dates
Agenda
- Council Direction

FY 2022-23 Budget Actions
•
Sales tax rates unchanged - one of the lowest in AZ
•
Reduced property tax rate from $1.1126 to $1.1026 per $100 of assessed value - 7Th year of 
reduction
•
Water/Wastewater/Reclaimed & Solid Waste Rate Changes went into effect July 1, 2022
•
Added Inflationary Increases to operating budgets to compensate for affected budget lines
•
Increased CIP funding to account for anticipated inflation, maintain aging infrastructure, as 
well as finishing planned parks and arterial streets
•
Continued to address pension debt through additional one-time funding towards pay-down of 
PSPRS unfunded liability (+50M / $125.3M to date)
•
Adds funding for labor association commitments, general employee pay increases, and 
Classification and Compensation study estimated impacts
•
Added positions in critical areas such as Public Safety, Courts, IT, Facilities, Parks, Planning, 
and Public Works

Where We Are in the Budget Process
Kickoff allows for 
Council direction on 
Strategic Goals/Focus 
Areas action items, 
policies & guidelines 
before budget process 
begins & Resident 
Budget Survey initiated
Decision Package 
and CIP 
recommendations 
submitted by 
departments in 
December
Financial forecast, 
funding decisions 
brought to Council 
during workshops 1 
(February) and 2 
(March)
Proposed budget 
brought to Council 
for discussion at all-
day briefing (April)

FY 2023-24 
Budget Theme
Innovation at Work
Our Brand
A safe, diverse, equitable and inclusive
community that connects people, chooses
innovation and inspires excellence

FY 2023-24 Budgetary Impacts
Personnel/Staffing
•
Public Safety Personnel 
Retirement System (PSPRS) 
unfunded liability is decreasing, 
which allows for freed up ongoing 
funding
•
This year’s budget allowed for 
more substantial market 
adjustments and some impacts of 
Class and Comp study were 
incorporated
Local Economic Impacts
•
Local revenues continue to come in strong
•
Intel construction impacts are being seen in 
our monthly revenues
•
New retail will bring a destination-based 
shopping experience to Chandler, increasing 
revenues
•
State shared income tax shifting from 15% to 
18% to offset flat tax implications, but 
increase this year is one-time
•
Inflation is driving revenues higher
•
Long tradition of strong financial 
management
The 
Brightside

FY 2023-24 Budgetary Impacts
Delineating Ongoing vs. One-Time
Personnel/Staffing
•
Retirement and vacancy impacts are still an issue
•
Attracting talent to fill vacancies
•
Class and Comp study impacts not yet fully known
•
ERP system will require significant city-wide staff 
effort
Inflation & Supply Chain
•
Affecting utilities, chemicals, 
construction materials and labor, 
vehicles, and equipment 
Technology
•
Multi-year City-wide Enterprise 
Resource Planning (ERP) system 
replacement 
•
Security posture / Infrastructure
•
Governance / speed to delivery
•
Mobility and flexibility / more to do
Potential Legislative Impacts
•
Legislative Impacts to local tax base and Model City 
Tax Code
•
Threat of eliminating residential rental and food 
for home consumption tax ($22M-$25M ongoing)
•
State shared income tax final level after flat tax 
implemented unknown
•
Prop 400 extension future is uncertain (longer 
term)
The 
Challenges

•Being the Most Connected City
•Being a Leader in Trust and Transparency
•Maintaining Fiscal Sustainability
•Attracting a Range of Private Sector 
Businesses
•Fostering a Contemporary Culture that 
Embraces Unity
•Being Safe and Beautiful
Strategic Policy Goals
Strategic Framework Guides 
Our Decision Making
Focus Areas
•Economic Vitality
•Innovation and Technology
•Mobility
•Neighborhoods
•Quality of Life
•Good Governance

Action Items to Achieve
the Strategic Framework Goals
Preserve employment corridors, develop the Airpark, repurpose vacant retail, attract visitors to Chandler, be 
strategic about infill and redevelopment, and partner with higher education.
Economic Vitality, 2 Year Action Plan
Economic Vitality
Completed
•
Airpark area plan 
•
Downtown alley way study 
•
RFP & award for executive hangars
•
Expand UofA to the Jonathan 
Building (Ribbon cutting 11/2)
•
City Internship program coordinator 
for CGCC hired
•
Three-year tournament contracts at 
Snedigar
In Process
•
Airpark Area signage
•
Downtown Area Plan
•
Pedestrian & Wayfinding Study
•
Urban Land Institute Study 
•
Airport Strategic Business Plan
•
City Ordinance update  for promoting 
redevelopment
•
Improve Utilization of ASU Innovation
•
Healthy Urban Environment Grant 
pedestrian corridor study in 
partnership with ASU (Wall St)
•
Regional air services for Super Bowl
Yet to Start
•
South Arizona Avenue Corridor 
update
•
Winn School/Salvation Army 
Campus Plan
•
Submit proposed State legislation 
to aide in redevelopment of 
commercial properties
•
Regulatory City code review to 
adapt to easier ways of doing 
business
Note: Redevelopment projects currently planned or under construction shown on Story Map

Action Items to Achieve
the Strategic Framework Goals
Smart and sustainable solutions, ideas that promote efficiency and connectivity, leverage partnerships and 
outside funding, make Chandler a global technology destination, and invest in technology infrastructure.
Innovation & Technology, 2 Year Action Plan
Innovation & Technology
Completed
•
5 Electric vehicle charging stations at City Hall, 
Development Serv., and Fleet (solar) 
•
5 additional electric vehicles added  to Fleet
•
Adding stipulations by P&Z and City Council to 
have wiring for charging stations in new devl.
•
Energy efficiency requirements included in 
readoption of building code
•
Code updated to allow case by case approval 
of permeable pavers in lieu of asphalt
•
Two additional tools for security implemented
•
Neighborhood Resources data solution 
implemented (Building Blocks)
•
Fleet management system implemented
•
Brand standards updated
In Process
•
MAG RFP for electric vehicle charging 
feasibility study
•
Energy Audit Solicitation & Energy Cap 
upgrades
•
LED streetlight conversion contract approval
•
RFP for solar expansion plan
•
Review data center zoning requirements
•
City facility review for conversion to 
LED/touchless lighting
•
Automation of several paper/manual signature 
type processes including Utility billing changes
•
HR Digital Recruitment and marketing
•
Citywide Fiber upgrades
Yet to Start
•
Hardware distribution for in field plan review 
of as-built maps
•
Automate compensation management system

Action Items to Achieve
the Strategic Framework Goals
Integrated options to access employment corridors, convenient connections to East Valley, high-tech transit 
options, safe and attractive roadways and traffic systems, connect neighborhoods and places with multimodal 
pathways, and leverage regional resources.
Mobility, 2 Year Action Plan
Mobility
Completed
•
Chandler Flex (Active Service)
•
Downtown Wayfinding Study
•
Arizona Avenue Alternatives Analysis
•
McClintock Dr., Kyrene & Chandler Rd Bike Lanes
•
First mile last mile (Active service)
•
Road Projects (e.g. Alma School, Gilbert Rd.)
In Process
•
ADA improvements
•
LED streetlight conversion
•
Canal and Trail Improvements
•
Downtown Area Ally Studies (Wall Street, 
Washington Street)
•
Frye Rd. Protected Bike Lanes
•
Protected Bike Lanes Study
•
Hunt Hwy. Traffic Calming & Bike Lanes Study
•
Autonomous Vehicles Industry Development
•
Fiberoptic Cable Upgrades
•
Prop 400 extension 
•
Road projects (e.g. Cooper Rd. Chandler Heights)
•
Bike detection cameras
•
MAG emerging technology program 
Yet to Start
•
Kyrene Road (Chandler Blvd. to Loop 202) Traffic 
Study
•
Road Projects (Cooper Rd. Extension)

Services aligned with needs in specific areas of the city, holistic approach to neighborhood improvement 
through internal and external partnerships, quality housing for diverse needs, and well-maintained/enhanced 
infrastructure.
Neighborhoods, 2 Year Action Plan
Neighborhoods
Completed
•
Galveston Stakeholder meetings
•
Partnered with Galveston Elementary for bike 
safety and bike giveaway
•
Identified 29 encampments and remediated 2
•
Purchase of Apartments on Trails End for new 
housing project
•
ADA improvements at Mountain View
•
Water Infrastructure at Westwood Manor and 
Chieftain Village
•
Pepperwood event over 1200 volunteers
•
Bilingual pay program
•
Galveston and Amberwood Envision Events
•
Held 3 Golden Neighbors Events
•
Emergency Rental Assistance (Active Program)
•
IGA with Kyrene Unified School District for 
Recreational Programing
•
Southside Village Conservation District
In Process
•
Continue to hold EVNAACP meetings
•
Donation program with Salvation Army for 
120 beds and sheet sets
•
More than $12,000 in requests for Diversity 
Mini-grants
•
RAD project with 157 new housing units
•
Water Infrastructure at Kingston 
neighborhood
•
Recreational programing at schools IGA
•
Review Development Codes to facilitate 
housing diversity choices
•
Gazelle Meadows and Harris Park 
Improvements
Yet to Start
NA
Action Items to Achieve
the Strategic Framework Goals

Public safety personnel/technology/training that supports partnerships, high landscaping and architectural 
standards, parks and amenities serving the surrounding area, public spaces usable year-round, events 
capitalizing on Chandler’s culture, and partnerships for cultural and recreational programs.
Quality of Life, 2 Year Action Plan
Quality of Life
Completed
•
Behavioral Health Unit
•
Mental Health Conference
•
Support, Mental Health, and Veterans 
Courts
•
Homestead North Park (ribbon cutting Nov. 
12)
•
Lantana Ranch Park
•
Field of Honor
•
Set up Chandler Museum Foundation
•
Recreation virtual platform
•
GIS encampment initiative
In Process
•
Navigator Program
•
Fire station 2 construction
•
Tumbleweed Park softball/baseball 
complex
•
Public art projects
•
Pool Equipment room controller
•
Reclaimed Water Interconnect Facility 
(RWIF)
•
Intel / SRP partnership for 230 KV lines
•
Change-up panhandling signs
Yet to Start
NA
Action Items to Achieve
the Strategic Framework Goals

Good Governance Goals
•Building a 21st
century workforce
•Continue PSPRS 
paydown plan
•Maximize use of grants 
and partnerships to 
achieve strategic goals
High 
Priorities
•Continue technology 
enhancements to 
support mobility and 
efficiency solutions 
including beginning 
phase of ERP
• Maintain existing City 
buildings based on 
Building Assessment

• Minimize increase in property taxes
• Maintain, enhance or re-imagine existing 
infrastructure
• Finish planned construction of streets, parks, fiber 
and utility systems
• Prior to adding capital, ensure related ongoing O&M 
can be supported
• Utilize master plans to guide long-term capital 
investment
• Deliver on commitments made to residents through 
2021 bond election
• Balance inflation, workload, and timely completion 
of high visibility and grant funded projects
Capital 
Guidelines

• Operating Management
• Capital Management
• Reserves (Jan. 26, 2017) (Mar. 22, 2018)
• Debt Management
• Long-Range Financial Planning
• Grant Management
• Investment
• Accounting, Auditing, and Financial Reporting
• Pension Funding (annual update;  June 9, 2022)
Financial 
Policies
(Revised and adopted by 
Council January 14, 2016)

Council Approved 
Budgeting Practices 
Support Financial 
Sustainability
Maintain AAA bond ratings from Moody’s, Fitch 
and S&P
•
Continue adherence to all fiscal policies
Remain Structurally balanced
•
Ongoing revenues support ongoing 
expenditures
•
One-time revenues support one-time 
expenditures
Maintain strong reserves
•
15% General Fund contingency reserve
•
Budget Stabilization reserve at a minimum 
of $10M
Manage expenditure growth
•
Focus on maintaining and/or modernizing 
existing services
Control Primary Property Tax 
•
Provide options should the forecast allow 
reduction

Tentative Key Budget Dates
Budget Event
Date
Council Budget Kickoff
Tonight
Citizen Budget Survey with Council Outreach Videos
Nov-Dec 2022
Council Workshop 1
February 9, 2023
Potential Additional Outreach
Early March
Council Workshop 2
March 23, 2023
All-Day Budget Brief
April 28, 2023
Council Meetings:
Amendment Discussion
May 11, 2023
Tentative Adoption
May 25, 2023
Public Hearing & Final Adoption
June 15, 2023
Adoption of Tax Levy
June 29, 2023

Questions?