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City Council Conference Room
Thursday, March 27, 2025| 4:00 pm
FY 2025-26
Budget Workshop #3 CIP
Strength in Numbers
Our Brand
A safe, diverse, equitable and inclusive
community that connects people, chooses
innovation and inspires excellence
FY 2025-26 Budget Theme
02.
Overview of Proposed
10-Year Capital Improvement
Program (CIP) and Review List
of Projects
04.
Key Budget Dates
and
Questions
Agenda
01.
Overview of Capital
and Infrastructure and
Related Progress
03.
Chandler Water and
Wastewater Utilities: Major
Projects and Rates
New Fiscal Year 2025-26 starts 7/1/2025
“Strength in Numbers”
Council/Resident Process
Staff Process
Chandler Budget Process Timeline
Strategic
Framework
Guides Our
Decision Making
Focus
Areas
Economic
Vitality
Sustainability
and Technology
Neighborhoods
Connectivity
Quality of Life
Community
Safety
Overview of Capital and
Infrastructure and
Related Progress
Continued Focus on
Chandler’s Aging Infrastructure
Maintaining
high quality
of life for our
287,357
residents
65.7
square
miles
2,090
miles
of streets
28,515
Street
lights
229
signalized
intersections
1,240
miles of
potable
water lines
1038
miles of
sanitary
sewer
69 developed
parks
(1,317 acres)
51
lighted
fields
71
municipal
buildings
821 fleet
vehicles/
trucks
32
operating
wells
Capital Projects Historical View
Capital Projects
Completed or
Underway
Parks and Recreation
•Tumbleweed Softball Complex
•Tumbleweed Multi-Gen Expansion and Pickleball Courts
•Various Neighborhood and Community Park Improvements
Public Works Streets
•Street Repaving Projects Citywide
•Boston Street Improvements
•Downtown Alley Projects
•City Hall Parking Lot
•Cooper Road/Insight Loop
•Frye Road Protected Bike Lanes
•Ashley Trail/Paseo Trail Connection
Public Works Utilities
•Reclaimed Water Interconnect Facility (RWIF)
•66” Wastewater Line Rehabilitation
•Water and Sewer Main Replacements
Police and Fire
•Fire Station 2 Rebuild
•Fire Dispatch Equipment Refresh
•Police Work Area and Storage
Renovation
•Real-Time Operations Center
Facilities
•21 Fire Alarm systems Replaced
•15 Roofs Replaced (e.g. Center for
the Arts, Sunset and Main
Libraries)
•5 HVACs Replaced (e.g. Center for
the Arts, Boys & Girls Club, Fire
Training)
•Various Electrical and Structural
Enhancements Citywide
Proposed 10-Year
Capital Improvement
Program (CIP)
Current 10-Year CIP Council Guidelines
Maintain secondary property tax rate flat
Re-imagine resident amenities scheduled for
replacement
Prioritize aging 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
Ensure sufficient bond authorization exists to
complete projects desired by residents
Balance timely completion and coordination of
capital projects with impacts to neighborhoods and
businesses
Fiscal Foundations
– “Strength in
Numbers”
Priorities for One-Time Dollars
1. Maintain reserves sufficient to
meet financial policies including
PSPRS fully funded status
3. New initiatives and capital that
generate sustainable ongoing
financial savings
4. Focus operating & capital spending to
move forward strategic focus area action
items
2. Reinvest in existing aging
infrastructure, systems, including
projects that generate ongoing
savings
10-Year CIP Overview
•
2026-2035 CIP total is $2,693,093,022
($204.2M more than the 2025-2034 CIP)
•
Anticipates bond election after year two
•
73.6% of projects are funded with bonds
•
Updated to reflect continued inflationary
pressures
•
Continued focus on aging infrastructure
•
Includes $1.32B in key infrastructure
projects for water and wastewater
•
Capacity was limited from secondary levy
growth lower than anticipated (+0.4%
actual versus +4% budgeted)
Brooks Crossing Park Refresh
Bond Tax-Exempt Status
While there has not been a push
toward this after the initial
rumblings, should the tax-
exempt status of bonds go away,
we would anticipate higher
borrowing costs.
•
A 1%-2% rate increase would be
expected
•
Investment dollars may leave to
other vehicles outside of local
government bonds
•
For each $50M in bond sales,
approximately $500k to $1M in
additional interest cost per year
10-Year CIP Comparison by Department
10-Year CIP by Focus Area
CIP Projects Comprehensive Map
Debt Service and Tax Levy- Proposed CIP
As property values increase annually and prior year’s bond debt is paid off, new debt can be sold
and new debt service requirements met even while leaving the tax rate flat
.87
.87
.87
.87
.87
.87
.87
.87
.87
.87
.87
.87
.87
Secondary Property Tax Rate
Review List of Projects in the
Proposed 10-year Capital
Improvement Program (CIP)
(Handout)
Summary of Proposed Key General Government Capital
Projects in the 1st 5-Years
Fire
•
Emergency Vehicle Replacements*
•
Heart Monitor Replacements
•
Public Safety Training Center
•
Self Contained Breathing Apparatus Replacements
•
Rebuild Fire Station #284*
Technology
•
ERP Modernization/Replacement
Police
•
Forensic Services Facility
•
Police Main Station Renovations*
•
Radio Communication Equipment*
Street/Transportation Projects
•
Street Repaving Program* ($115.8M in first 5-years)
•
Washington Street Improvements
•
Kyrene Road (Chandler Blvd to San Tan 202)*
•
Ray Road/Dobson Road Intersection Improvement
•
Arizona Ave/Warner Intersection*
•
McQueen Road Improvements*
Airport
•
Hangar Area Pavement Reconstruction
•
Runway 4R/22L Extension
•
Santan Apron Reconstruction
Buildings & Facilities
•
Building Renovations and Repairs
•
Building Security Enhancements
Community/Regional Park Improvements
•
A.J. Chandler Park Improvements*
•
Existing Community and Neighborhood Park Imp*
•
Mesquite Groves Phases I & II*
•
Folley Pool Renovation*
•
Lantana Ranch Park Site*
•
Tumbleweed Ranch
•
Desert Breeze Park Renovation*
Development Services
•
Citywide Fiber Upgrades
•
Traffic Management Center Equipment
•
Traffic Signal Additions
* Denotes projects requiring additional bond
authorization from 2025 bond election
Summary of Proposed Key General Government Capital
Projects in the 2nd 5-Years
Fire
•
Fire Emergency Vehicle Replacements*
•
Fire Station #12 (SDF reimbursable) *
•
Fire Fleet Building Replacement*
Police
•
Body Worn Cameras
•
Radio Communication Equipment
Street/Transportation Projects
•
Street Repaving*
•
Traffic Signals Improvements and Repairs*
•
Warner Road (Price Rd. to Arizona Ave.)
•
Ray Road/Kyrene Road
•
Appleby Road/Railroad Crossing
•
Ocotillo Road Shared Use Path
Airport
•
Airport Taxi Way Fillet Improvements
•
Holding Aprons Construct Holding
•
Construct Apron and Aircraft Wash Rack
Buildings & Facilities
•
Building Renovations and Repairs
•
Building Security Enhancements
Community/Regional Park Improvements
•
Existing Neighborhood Park Improvements*
•
Mesquite Groves Phase III
•
Tumbleweed Multi-Gen Expansion*
•
Tumbleweed Ranch
Development Services
•
Citywide Fiber Upgrades
•
Traffic Signal Additions
* Denotes projects requiring additional bond
authorization from 2025 bond election
Chandler Water & Wastewater
Utilities: Major Projects & Rates
Utility Rates
Initial adjustments were made in current
Fiscal Year to address additional
infrastructure projects
Anticipated rates as shared in FY 2024-25 budget book
Rate Year
Water
Wastewater
Reclaimed
No Increase
1/1/2025
0.0%
0.0%
0.0%
Estimated
1/1/2026
8.5%
8.0%
12.0%
No Increase
1/1/2027
0.0%
0.0%
0.0%
Estimated
1/1/2028
15%
8.0%
12.0%
Major Drivers - Aging infrastructure
Water
•
Total mains 1,228 miles, and in CIP over 30
years replacing all Highest, High, and
Moderate risk watermains
•
31 operating wells- CIP replaces oldest wells to
reduce average age of infrastructure
•
CIP adds redundant 48” transmission line to
reduce risk of single failure point
Wastewater
•
958 miles of sanitary sewer lines and CIP
includes new 66” underneath Loop 202 to
allow for existing pipe rehab
•
19,000 manholes and in CIP over next 30 years
7,000 will be repaired covering all Highest,
High and Moderate risk segments
Decade in which underground infrastructure
established
Utility Rate Adjusted for
Current CIP and Operating Needs
Cost of Service (COS) is a method of ensuring revenues generated by the differing customer classifications are paying
for the costs of providing services to that customer classification. This rate year represents the last of the five-year
planned COS realignment of revenues based on impact to the utility systems found during the last study.
Cost of Services (COS) Allocations – Water / Wastewater
COS rate allocations:
Single Family Average Monthly Bill Impact
Would be
effective
January
2026
Estimated based on Tempe Cost of Service July 2024 results at 10,000
gallons single family residential rates for FY 2024-25
Cost of Services Allocations – Water / Wastewater
COS rate allocations:
Multifamily Average Bill Impact
Non-Residential Average Bill Impact
Budget Event
Date
Council Budget Kickoff
Completed
Resident Budget Survey with Council Videos
Completed
Council Workshop #1
Completed
Council Workshop #2
Completed
Council Workshop #3 Capital Improvement Program
Tonight
All Day Budget Briefing
5/2/2025
Council Meetings
Tentative Adoption
05/22/2025
Public Hearing and Final Adoption
06/12/2025
Adoption of Tax Levy & Fee Action
06/26/2025
Key Budget
Dates
Questions?