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Council Chambers Thursday, June 15, 2023 Public Hearing FY 2023-24 Proposed Budget 2024-2033 Capital Improvement Program (CIP) 2023-24 Property Tax Levy FY 2023-24 Proposed Budget “Innovation at Work” • Total Budget $1,656,274,385 (all funds) • General Fund Only $610,510,158 22.5% increase overall $800M operating (+5.9%) $856M capital (+43.4%) 23.8% increase in General Fund $483M operating (+16.9%) $128M capital (+59.2%) • Adheres to financial policies • 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 • All-day Budget Briefing • Tentative and Final Adoption FY 2023-24 Proposed Budget Increase Drivers (all funds) Revenues • Increased revenues to reflect actual economic environment • Increases are coming from continued development, inflation and strong consumer spending • Increased State Shared revenues with updated projections Expenditures • Inflation increasing operations and capital budgets • Personnel costs increasing to invest in City workforce and retain employees; market, merit, and healthcare • Capital projects increased to address aging infrastructure, bond authorized projects, and grant funded projects • Infrastructure projects to support Intel expansion (FY 2022-23 $148M & FY 2023-24 $30.5M) Grants Debt • Includes $20M in American Rescue Plan Act (ARPA) funds included in FY 2023-24 budget as carryforward • Continued focus on Grant opportunities and having “shovel ready” projects that may qualify • Additional one-time payment of $73M to pay-off PSPRS unfunded liability and generate ongoing savings Operating Budget Highlights Reduces City property tax rate for the 8th consecutive year No change to Transaction Privilege Tax (TPT) rates Anticipates Water, Wastewater, and Solid Waste rate changes to continue to move toward Cost of Service recommendations 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: $73M in one- time funding for pay-off of Public Safety Personnel Retirement System (PSPRS) liability Maintains strong reserves (includes 15% General Fund contingency reserve and $20M budget stabilization reserve) Potential State Legislative revenue impacts continue to be monitored 2024-2033 CIP Highlights • 2024-2033 CIP total is $1,963,967,457 ($299M more than the 2023-2032 CIP) • Updated to reflect inflationary pressures • Increased focus on aging infrastructure • Includes $178.5M in projects for infrastructure to support Intel expansion (reimbursed from Intel and State) • Bond authorization longevity shortened by inflation and additional projects $1.96B- Total 10-Year CIP $497.7M – Total FY 2023-24 CIP Public Hearing 2023-24 Property Tax Levy Breakdown of $1 of Typical Chandler Property Tax Bill City of Chandler 11 cents Public Schools and Community College Districts 70 cents Maricopa County & Special Districts 19 cents *Based on 2022 Tax Bill information. Exact split will vary depending on the school district and any other special taxing districts on the bill. FY 2022-23 LPV $3.703B 2022-23 Levy $40,828,804 FY 2023-24 LPV $3.900B 2023-24 Levy $42,612,435 +5.3% increase 1.9% New Property 3.4% Appreciation Levy Increase $1,783,630 FY 2023-24 Property Tax Levy Tax rate reduction from $1.1026 to $1.0926 reduces impact of Limited Property Value (LPV) increase Reduces property tax rate for the 8th consecutive year 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. Council Workshop #2 Completed Mar. All Day Budget Briefing Completed Apr. Council Meetings and Statutory Requirements Tentative Budget/CIP Adoption Completed May Budget Public Hearing and Final Adoption Tonight Adoption of Tax Levies 06/29/2023 Key Budget Dates For your consideration: Res. #5708 Adopts the FY 2023-24 Annual Budget, sets the amounts proposed to be raised by direct property taxation, and adopts the 2024-2033 Capital Improvement Program (CIP) Questions? Tentative and final adoption of the Ordinance No. 5059, setting Property Tax Levies will be June 26 and 29, 2023 For more information visit chandleraz.gov/budget or call the Budget Office at (480) 782-2254