Extracted text (via pymupdf)
11381 characters
FY 2026-27
Budget Workshop #3
Capital Project Focus
Council Conference Room
Thursday, March 26, 2026 | 4:00 p.m.
Adding sense to dollars
FY 2026-27 Budget Theme
New Fiscal Year 2026-27 starts 7/1/2026
“Adding Sense to Dollars”
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
Capital and
Infrastructure
Overview and Progress
Capital Projects Historical View
Continued Focus on
Chandler’s Aging Infrastructure
Maintaining
high quality
of life for our
residents
65.75
square
miles
2,090
miles
of streets
28,610
street
lights
230
signalized
intersections
1,242
miles of
potable
water lines
1,040
miles of
sanitary
sewer
70 developed
parks
(1,348 acres)
55
lighted
fields
61
municipal
buildings
867 fleet
vehicles/
trucks
31
operating
wells
Capital Plan Inflation Impacts
Data source: The Mortenson Construction Cost Index is calculated quarterly by pricing a representative non-residential
construction project in geographies throughout the country.
Construction Costs
continue to go up
Construction
Price Index’s
new normal
5.9% over last
12 months
Bond Authorization
Maintaining
high quality
of life for our
residents
Capital Projects
Completed or
Underway
Airport
•Taxiway B
•Hanger Area Pavement
Project
Cultural Development
•Dr. AJ Chandler Park
•Wall Street
Building & Facilities
•7 Fire Alarm systems were replaced across
city facilities
•7 Painting projects completed (i.e., interior
and exterior work at City Hall, public safety
buildings, recreation facilities, and historic
properties)
•2 Flooring projects completed at
Tumbleweed Rec center and PD.
•13 HVAC maintenance projects citywide
•Various electrical and structural
enhancements citywide
Parks and Recreation
• Brooks Crossing Park Refurbishment
• Tumbleweed Multi-Gen Expansion and Pickleball Courts
• Discovery Library Bookmobile
• Gazelle Meadows
• Mesquite Groves Park Phases I, II
Police and Fire
•Fire Station 2 Rebuild
•Fire Dispatch Equipment Refresh
•Body-worn cameras
•Forensic Facility Design
Public Works Streets & Transportation Policy
•Chandler Heights - Gilbert Rd to Val
Vista Dr - Phase 3
•Lindsay Road - Ocotillo Road to Hunt
Highway
•Frye Road Bike Lanes
Public Works Utilities
•Pecos SCADA Upgrade
•Reclaimed Water Conveyance
Improvement Pump Install
•66” Sanitary Sewer Rehabilitation
•Water Main Replacements
(Tyson and Sunset Manors)
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 and plan for redevelopment
Continue 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
Manage bond authorization to complete projects desired
by residents
Balance timely completion and coordination of capital
projects with impacts to neighborhoods and businesses
Fiscal Foundations
“Adding Sense to
Dollars”
One-Time Dollar Funding Options
Maintain reserves sufficient to
meet financial policies including
PSPRS fully funded status
New initiatives and capital that
generate sustainable ongoing
financial savings
Focus operating & capital spending to
move forward strategic focus area action
items
Reinvest in existing aging
infrastructure, systems, including
projects that generate ongoing
savings
10-Year CIP Overview
•
2027-2036 CIP total is $2,951,458,398
•
73.1% of projects are funded with bonds
•
Updated to reflect continued inflationary
pressures
•
Continued focus on aging infrastructure
•
Includes $1.43B in key infrastructure
projects for water and wastewater
•
Maintained a balanced CIP even as levy
growth came in lower at +3.77% versus +4%
Hangar Area Pavement
Replacement
10-Year CIP Comparison by Department
10-Year CIP by Focus Area
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
Secondary Property Tax Rate flat at $0.87
CIP Projects Comprehensive Map
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
•
Public Safety Training Center
•
Self Contained Breathing Apparatus Replacements
•
Rebuild Fire Station #284 and Design of Station #12
Technology
•
ERP Modernization, Network Upgrade
Police
•
Forensic Services Facility
•
Police Main Station Renovations
•
Radio Communication Equipment
Street/Transportation Projects
•
Street Repaving Program ($135.7M in first 5-years)
•
Washington Street Improvements
•
Kyrene Road (Chandler Blvd to San Tan 202)
•
Arizona Avenue/Warner Road Intersection
•
Chandler Boulevard (Price Rd to Dobson Rd)
•
McQueen Road Improvements (Warner Rd to Pecos Rd)
Airport
•
Taxiway B Construction
•
Operations Garage
•
Armory 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 Signal Additions
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
•
Ambulance Emergency Vehicles (Enterprise)
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 Construction
•
Annual Pavement Maintenance Management
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 -Gym
•
Tumbleweed Ranch
Development Services
•
Citywide Fiber Upgrades
•
Traffic Signal Additions
Chandler Water &
Wastewater Utilities:
Major Projects & Rates
5-Year Enterprise Fund Balance Projections & Rates
Rate Models
incorporate
operating
adjustments
proposed in FY
2026-27 and CIP
infrastructure
project changes
Major Drivers - Water
•
Operating increases for personnel, chemicals,
utilities, and equipment
•
Debt service and cash funded Water Treatment
Production Facilities, Mains, and Water Purchases
•
Upcoming CIP projects in FY 2026-27 include:
•
Water Production Facility Improvements
($10.7M)
•
Water Treatment Plant Improvements
($131M)
•
Main and Valve Replacements
($8.5M)
Water Utility Rate Allocation
1.23%
4.82%
1.86%
0.98%
0.11%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
Avg. rate Component
Well Construction & Rehabilitation Debt Service & Cash Funded
Water Distribution Systems Debt Service & Cash Funded
Water Purchases Debt Service & Cash Funded
Water Treatment Production Facilities Debt Service & Cash Funded
Operating Increases
Each 1% rate
change equates
to about
$609,000 in
revenue.
Improved Infrastructure – Pecos Water Plant
Improvements
A total of $372.5M is
being proposed in the
new 10-year CIP for
improvements to Water
Treatment and
Production Facilities
Water Treatment Plant Improvements at Pecos
New Infrastructure – Water Purchases
Bartlet Dam Expansion Partnership
•
Increases reservoir storage on the Verde River by raising the
dam height (alternatives up to ~100 feet)
•
Captures and stores additional runoff during wet winters
•
Improves regional drought resilience and long-term water
supply reliability
•
Creates hundreds of thousands of acre-feet of additional
capacity depending on the final design shared with all partners
•
Federal feasibility study and environmental review are
underway.
$49.5M in proposed CIP (+$24M) is our
anticipated share of design and assessment costs
Aging Infrastructure – Water Production Facilities
The use and maintenance of ground
wells is critical to Chandler’s water
portfolio
Booster station failures have
become more of an issue, and the
cost for rehabilitation is higher if
earlier remediation is not done
Average age of these remote
facilities is 25-years with the newest
being 5-years and the oldest 41-
years
Aging Infrastructure – Watermains
Recommended replacement plan would
start out averaging 2, escalating to 8 miles
per year in FY 2033-34. Addresses all at
risk lines over the next 30 years.
Coordination with other projects is vital.
Plan addresses these areas
Major Drivers - Wastewater
•
Operating increases for personnel, chemicals,
utilities, and equipment
•
Debt service and cash funded Wastewater and
Reclaimed Facilities, Distribution, and Sewer Rehab
•
Upcoming CIP projects in FY 2026-27 include:
•
Continuation of the 66” line under Loop
($40.6)
•
Water Reclamation Facility Improvements
($45M)
•
Sewer Assessment and Rehabilitation
($10.7M)
Wastewater Utility Rate Allocation
Each 1% rate
change equates to
about $552,000 in
revenue.
0.50%
4.29%
0.71%
1.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
Avg. rate Component
Wastewater Systems Improvements Debt Service & Cash Funded
Wastewater Sewer Rehabilitation Debt Service & Cash Funded
Wastewater & Reclaimed Facilities Debt Service & Cash Funded
Operating Increases
6.5%
Improved Infrastructure – Wastewater Treatment
Wastewater facility improvements at AWARF
A total of $249.3M is
being proposed in the
new 10-year CIP for
improvements to
Wastewater and
Reclaimed Facilities
Aging Infrastructure – Wastewater Mains/Manholes
Recommended replacement plan would
start out averaging 90 manholes per year,
escalating to 350 per year over the next 30
years to address all 7,000 manholes that
have known issues
Plan would
address these
areas
Residential Cost Impact
Single Family Average Monthly Bill Impact
Would be
effective
January
2027
Estimated based on Tempe Cost of Service July 2025 results at 10,000
gallons 5/8 meter single family residential rates for FY 2025-26
Multi-Family / Non-Residential Cost Impact
Multifamily Average Bill Impact
150 Units, 6” meter, 500K Gals
Non-Residential Average Bill Impact
2” meter, 200K Gals
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
5/1/2026
Council Meetings
Tentative Adoption
05/21/2026
Public Hearing and Final Adoption
06/11/2026
Adoption of Tax Levy
06/25/2026
Key Budget
Dates
Questions?