Public Hearing & Special Meeting_Final Budget Adoption and Property Tax Levy presentation

Council Chambers
Friday, April 26, 2024
Public Hearing
Council Chambers | Thursday, June 13, 2024
FY 2024-25 Proposed Budget
2025-2034 Capital Improvement Program (CIP)
2024-25 Property Tax Levy

1.6% decrease
overall all Funds
$752.5M operating (-5.9%)
$876.5M capital (+2.3%)
5.4% decrease in
General Fund
$577.8M operating (-9.1%)
$139M capital (+8.6%)
FY 2024-25 Proposed Budget
Total Budget $1,629,072,684 | Total General Fund: $577,776,840
Proposed Budget
•
Adheres to financial policies and is structurally balanced
•
Ongoing for ongoing and one-time for one-time
•
Uses Strategic Framework to guide decisions
•
Provides for cost-effective, quality services
•
Maintains long-term financial sustainability
•
Resident engagement through input opportunities
•
Kickoff, Resident Budget Survey & Three Workshops
•
All-day Budget Briefing
•
Tentative and Final Adoption in May/June
“Making it Happen”

FY 2024-25 Proposed Budget Drivers (all funds)
Revenues
• Revenues reflect actual economic environment with additional analysis on sustainable level
• Increases coming from continued development & decrease from Residential Rental revenue
• State Shared revenues updated with latest projections using State and League forecasts
Expenditures
• Funding to convert one-time funded positions to ongoing, maintain service delivery after adjusting for
inflation, and ensure enhancements are in strategic focus areas
• Personnel costs increasing to invest in city workforce and retain employees; market, merit, and
healthcare.  Reflects ongoing savings from PSPRS employer contribution
• Capital projects increased to address aging infrastructure, inflation and new infrastructure
Grants
Debt &
Actions
Reducing
Cost
• Continued focus on finding Grant opportunities and having “shovel ready” projects that may qualify
• Maintain AAA bond rating to minimize cost of borrowing for capital projects
• Maintain funded status of Public Safety Personnel Retirement System (PSPRS) to ensure unfunded
liability does not grow
• Solar energy investment for utility cost savings
• Turf to Xeriscape capital project for utility cost savings

Operating Budget Highlights
Reduces city primary property
tax rate, no change to
Transaction Privilege Tax (TPT)
rates
No planned Water, Wastewater,
or Solid Waste rate changes in
the new Fiscal Year
Budget maintains existing
service levels and enhances
programs tied to Strategic
Framework
Adds funding for new labor
association commitments and
general employee merit/market
Continues debt elimination:
$7M in one-time funding for pay
-off maintenance of Public
Safety Personnel Retirement
System (PSPRS) liability
Maintains strong reserves
including 15% General Fund
contingency and $10M budget
stabilization reserve

2025-2034 CIP Highlights
•
2025-2034 CIP total is $2,488,884,031
($525M more than the 2024-2033 CIP)
•
Updated to reflect additional utility
projects and project costs to current
values
•
Increased focus on aging infrastructure
•
Voter Bond authorization to support
capital plan is shortened by inflation
$2.49B- Total 10-Year CIP
$876.5M – Total FY 2024-25 CIP

Public Hearing
FY 2024-25 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 2023 Tax Bill
information. Exact split will
vary depending on the
school district and any other
special taxing districts on
the bill.

FY 2023-24 LPV
$3.900B
2023-24 Levy
$42,612,435
FY 2024-25 LPV
$4.108B
2024-25 Levy
$44,473,791
+5.3% increase
0.9% New Property
4.4% Appreciation
Levy Increase
$1,861,356
FY 2024-25 Property Tax Levy
Tax rate reduction from $1.0926 to $1.0826
reduces impact of Limited Property Value (LPV) increase
Reduces property tax rate for the 9th 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 Nov. - Jan.
Council Workshop #1
Completed Feb.
Council Workshop #2
Completed early Mar.
Council Workshop #3
Completed late 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
06/27/2024
Key Budget Dates

Questions?
For your consideration:
Res. #5801 Adopts the FY 2024-25 Annual
Budget, sets the amounts proposed to be
raised by direct property taxation, and adopts
the 2025-2034 Capital Improvement Program
(CIP)
Tentative and final adoption of the
Ordinance No. 5095, setting Property Tax
Levies will be June 24 and 27, 2024
For more information visit chandleraz.gov/budget
or call the Budget Office at (480) 782-2254