Minutes of the Special Meeting, Budget Workshop #3 held on March 27, 2025

Meeting Minutes 
City Council Special Meeting 
 
March 27, 2025 | 4:00 p.m. 
Council Chambers Conference Room 
88 E. Chicago St., Chandler, AZ 
 
 
Call to Order 
The meeting was called to order by Mayor Kevin Hartke at 4:00 p.m. 
 
Roll Call 
Council Attendance 
 
 
 
 
Appointee Attendance 
Mayor Kevin Hartke  
 
 
 
 
Joshua Wright, City Manager 
Vice Mayor Christine Ellis  
 
 
 
Kelly Schwab, City Attorney  
*Councilmember Angel Encinas, arrived 4:45 p.m. Dana DeLong, City Clerk 
Councilmember Jane Poston 
 
 
 
  
Councilmember Matt Orlando   
 
 
Councilmember OD Harris 
 
 
 
 
Councilmember Jennifer Hawkins 
 
Staff in Attendance 
 
Tadd Wille, Assistant City Manager 
Dawn Lang, Deputy City Manager / Chief Financial Officer 
Andy Bass, Deputy City Manager 
John Knudson, Public Works & Utilities Director 
John Sefton, Community Services Director 
Mickey Ohland, Community Services Planning Manager 
Alexis Apodaca, Mayor & Council Public Affairs Senior Manager 
Helen Parker, Budget & Research Principal Analyst 
Jeremy Abbott, Public Works & Utilities Assistant Director 
Daniel Haskins, Capital Projects Manager 
Matt Dunbar, Budget & Policy Director 
Ryan Peters, Strategic Initiatives Director 
 
Discussion

Page 2 of 8 
 
1.  
Budget Workshop #3, Fiscal Year 2025-26 
1. Opening Remarks 
2. Overview of Proposed 10-Year Capital Improvement Program (CIP) 
3. Review List of Projects in Proposed 10-Year Capital Improvement Program (CIP) 
4. Chandler Water and Wastewater Utility Rates 
5. Key Budget Dates and Questions 
 
JOSHUA WRIGHT, City Manager, introduced the item.  
 
DAWN LANG, Deputy City Manager / Chief Financial Officer, presented the following presentation.  
• FY 2025-26 Budget Workshop #3 CIP  
• FY 2025-26 Budget Theme “Strength in Numbers”  
o Our Brand A safe, diverse, equitable and inclusive community that connects people, 
chooses innovation and inspires excellence 
• Agenda 
o 01. Overview of Capital and Infrastructure and Related Progress 
o 02. Overview of Proposed 10-Year Capital Improvement Program (CIP) and Review 
List of Projects 
o 03. Chandler Water and Wastewater Utilities: Major Projects and Rates 
o 04. Key Budget Dates and Questions 
• Chandler Budget Process Timeline 
• Strategic Framework Guides Our Decision Making 
• Overview of Capital and Infrastructure and Related Progress 
• Continued Focus on Chandler’s Aging Infrastructure 
 
COUNCILMEMBER HARRIS asked about the result of the facility efficiency study.  
 
MS. LANG said the study was completed, resulting in the suggestion of combining some downtown 
facilities such as the Development Services and IT buildings. The move would require 
infrastructure investment such that the return on investment for the move would be costly. 
Another recommendation was to relocate Fire Fleet to the Central Fleet building and then sell or 
repurpose the original property.  
 
MAYOR HARTKE added that the space assessment has guided some improvements, such as the 
improvements to the 5th floor in City Hall for flexible space to accommodate interns.  
 
MS. LANG continued the presentation.  
• Capital Projects Historical View 
 
MAYOR HARTKE asked if there are any comparable cities in the area working on a Pavement 
Quality Index for paved roads.

Page 3 of 8 
 
JOHN KNUDSON, Public Works & Utilities Director, explained that other municipalities use a 
different index, Chandler is the only city using the Pavement Quality Index. The index takes into 
consideration different conditions. Chandler is setting the standard for cities of comparable size.  
 
MS. LANG continued the presentation.  
• Capital Projects Completed or Underway 
• Parks and Recreation 
o Tumbleweed Softball Complex 
o Tumbleweed Multi-Gen Expansion and Pickleball Courts 
o Various Neighborhood and Community Park Improvements 
• Public Works Streets 
o Street Repaving Projects Citywide 
o Boston Street Improvements 
o Downtown Alley Projects 
o City Hall Parking Lot 
o Cooper Road/Insight Loop 
o Frye Road Protected Bike Lanes 
o Ashley Trail/Paseo Trail Connection 
 
MAYOR HARTKE asked about the projected timeline for completion of the Chandler Heights and 
Price Road projects.  
 
DANIEL HASKINS, Capital Projects Manager, said he would follow up with Council about the 
projected timeline for completion.  
 
MAYOR HARTKE noted residents do commonly share feedback about these projects.  
 
MR. KNUDSON said the roads will be repaved before the conclusion of the projects to make them 
smooth. It is a work in progress, and anticipated completion may be in Spring 2026, as there is still 
much work to be done on the internal sewer lines.  
 
MS. LANG continued the presentation.  
• Public Works Utilities 
o Reclaimed Water Interconnect Facility (RWIF) 
o 66” Wastewater Line Rehabilitation 
o Water and Sewer Main Replacements 
• Police and Fire 
o Fire Station 2 Rebuild 
o Fire Dispatch Equipment Refresh 
o Police Work Area and Storage Renovation 
o Real-Time Operations Center 
• Facilities

Page 4 of 8 
 
o 21 Fire Alarm systems Replaced 
o 15 Roofs Replaced (e.g. Center for the Arts, Sunset and Main Libraries) 
o 5 HVACs Replaced (e.g. Center for the Arts, Boys & Girls Club, Fire Training) 
o Various Electrical and Structural Enhancements Citywide 
 
MAYOR HARTKE asked when to expect an update on the forensic facility.  
 
MR. WRIGHT shared that Chandler and Gilbert have been in discussion exploring a partnership 
with each other. As soon as Gilbert can move forward on their end, a contract for design services 
may come to Council for approval.  
 
COUNCILMEMBER ORLANDO suggested an approach emphasizing Chandler’s readiness.  
 
MR. WRIGHT said they will let us know, and Chandler has communicated that the city is ready.  
 
MS. LANG continued the presentation.  
• Proposed 10-Year Capital Improvement Program (CIP) 
 
COUNCILMEMBER ORLANDO asked if there is anything to be done to shorten the timeframe of 
projects.  
 
MR. WRIGHT explained there are several different construction delivery methods that Chandler 
can request, such as design bid build, design bid, or construction manager at risk. The delivery 
method is paired with the specific project timing needed.  
 
COUNCILMEMBER ORLANDO asked to relay communication in a way that will achieve Chandler’s 
goals.  
 
MR. WRIGHT agreed and said the pause on the forensic facility project is dependent on if there 
will be one entity or two entities served, and what the stakeholder engagement process would 
look like.  
 
MAYOR HARTKE said a decision will be forthcoming.  
 
MATT DUNBAR, Budget & Policy Director, continued the presentation.  
• Fiscal Foundations – “Strength in Numbers” 
o Current 10-Year CIP Council Guidelines 
o Maintain secondary property tax rate flat 
o Re-imagine resident amenities scheduled for replacement 
o Prioritize aging infrastructure 
o Finish planned construction of streets, parks, fiber and utility systems 
o Prior to adding capital, ensure related ongoing O&M can be supported

Page 5 of 8 
 
o Utilize master plans to guide long-term capital investment 
o Ensure sufficient bond authorization exists to complete projects desired by residents 
o Balance timely completion and coordination of capital projects with impacts to 
neighborhoods and businesses 
• Priorities for One-Time Dollars 
o 1. Maintain reserves sufficient to meet financial policies including PSPRS fully funded 
status 
o 2. Reinvest in existing aging infrastructure, systems, including projects that generate 
ongoing savings 
o 3. New initiatives and capital that generate sustainable ongoing financial savings 
o 4. Focus operating & capital spending to move forward strategic focus area action 
items 
• 10-Year CIP Overview 
o 2026-2035 CIP total is $2,693,093,022 
o ($204.2M more than the 2025-2034 CIP) 
o Anticipates bond election after year two 
o 73.6% of projects are funded with bonds 
o Updated to reflect continued inflationary pressures 
o Continued focus on aging infrastructure 
o Includes $1.32B in key infrastructure projects for water and wastewater 
o Capacity was limited from secondary levy growth lower than anticipated (+0.4% 
actual versus +4% budgeted) 
 
MAYOR HARTKE clarified that the secondary levy growth of 0.4% was due to a structural 
realignment and not market forces.  
 
MR. DUNBAR said it is primarily due to the restructuring of tax rate on tangible personal property.  
 
MR. DUNBAR continued the presentation.  
• Bond Tax-Exempt Status 
o 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. 
o A 1%-2% rate increase would be expected 
Investment dollars may leave to other vehicles outside of local government bonds 
o For each $50M in bond sales, approximately $500k to $1M in additional interest 
cost per year 
 
COUNCILMEMBER ORLANDO asked if bonds would have to be sold at a higher rate to grab the 
market’s attention in the case that tax exemption was not achieved.

Page 6 of 8 
 
MR. DUNBAR said the tax-exempt status of the bonds is what is attractive to investors. Investors 
prefer a lower interest rate to get tax exempt status. A change in tax-exempt status may affect the 
demand.  
 
COUNCILMEMBER ORLANDO said if a government yield is paying more, investors may choose that 
over bonds.  
 
MR. DUNBAR said that is correct, investors may investigate other options to earn revenue because 
the best incentive is the tax-exempt status.  
 
MR. DUNBAR continued the presentation.  
• 10-Year CIP Comparison by Department 
 
COUNCILMEMBER HARRIS asked if there are plans for improving turf in Snedigar Park to address 
heavy use.  
 
JOHN SEFTON, Community Services Director, said there are many aspects to the issue. First, the 
high demand for playing space will be addressed by further park development in Mesquite Groves 
and Lantana Ranch. Aging infrastructure such as irrigation is addressed by preventative 
maintenance, the CIP project gives the department the capacity to renovate and improve. 
Additionally, improving sports scheduling at the facility will reduce current overuse.  
 
MR. DUNBAR continued the presentation.  
• 10-Year CIP by Focus Area 
• CIP Projects Comprehensive Map 
 
MAYOR HARTKE commented that information regarding the Construction Price Index increases is 
important to share with residents to explain inflationary cost impacts to Chandler’s projects.  
 
MR. DUNBAR continued the presentation.  
• Debt Service and Tax-Levy – Proposed CIP 
 
COUNCILMEMBER POSTON asked where the estimated 4% growth in 2035-2036 come from.  
 
MR. DUNBAR said this is the projection created from historical increases of property valuations. 
Historically, around 6.5% increase has been observed, but this is a conservative estimate.  
 
COUNCILMEMBER ORLANDO asked how much is left in the loan repayments.  
 
MS. LANG said she will follow up with that answer.  
 
COUNCILMEMBER ORLANDO said this would be one-time dollars for the general fund.

Page 7 of 8 
 
 
MS. LANG said that was correct, this was incorporated into the earlier presentation on Monday, 
March 24.  
 
MR. DUNBAR continued the presentation.  
• Review List of Projects in the Proposed 10-year Capital Improvement Program (CIP) 
(Handout) 
 
Council reviewed the handout and discussed several projects.  
 
• Summary of Proposed Key General Government Capital Projects in the 1st 5 Years 
• Summary of Proposed Key General Government Capital Projects in the 2nd 5 Years 
• Chandler Water & Wastewater Utilities: Major Projects & Rates 
• Utility Rates 
• Major Drivers – Aging infrastructure 
o 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 
o 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 
• Utility Rate Adjusted for Current CIP and Operating Needs 
 
COUNCILMEMBER ORLANDO talked about the 10-year plan and basing the rates on the “ifs” in the 
plan. He wondered how they would blend that if they did not know if they would be utilizing that 
money or at that rate.   
 
COUNCILMEMBER ORLANDO requested staff to review the out years of the wastewater and water 
rate 10-year CIP plan and provide Council some options to reduce rates. 
 
MS. LANG continued the presentation.  
• Cost of Services (COS) Allocations – Water / Wastewater 
• Cost of Services Allocations – Water / Wastewater 
• Key Budget Dates 
• Questions?

Page 8 of 8 
 
Public Comment 
None. 
 
Adjourn 
The meeting was adjourned at 5:57 pm. 
 
 
 
ATTEST:  _______________________  
______________________________ 
                       City Clerk                                                   Mayor 
 
 
Approval Date of Minutes:  April 24, 2025 
 
 
 
Certification 
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Special 
Meeting of the City Council of Chandler, Arizona, held on the 27th day of March 2025.  I further 
certify that the meeting was duly called and held and that a quorum was present. 
 
DATED this _______ day of April, 2025. 
 
 
 
 
 
 
 
__________________________ 
                                                         
           City Clerk