SE Valley Times

A Chandler City Council work session has initiated the development of the fiscal year 2025-2026 operating budget and capital improvement program (CIP). This session provided an opportunity for the mayor and councilmembers to set policy directions and assess factors impacting the budget, such as economic conditions affecting revenues and costs. A significant consideration is the impact of state legislation that eliminated the residential rental tax, which is expected to reduce revenue by $11 million annually.

The City Council has also guided the Resident Budget Survey process, allowing residents to express their views on tax dollar usage, city service satisfaction, and priorities within the Council’s strategic focus areas. These surveys will be available online and in hard copy starting in November. Further details about Chandler's budget can be found at chandleraz.gov/budget.

Recent council actions for fiscal year 2024-2025 included reducing the primary property tax rate for a ninth consecutive year and adjusting the CIP to address inflation, infrastructure updates, and completion of parks and streets projects. Despite these changes, Chandler maintains one of Arizona's lowest sales tax rates while ensuring high-quality services.

Chandler's budget remains structurally balanced with ongoing revenues supporting recurring expenses. The city is noted for being Arizona's largest city to have paid off its Public Safety Personnel Retirement System unfunded liability.

Chandler’s adherence to financial policies has resulted in maintaining AAA bond ratings from all three major rating agencies. In December 2023, it became the first Arizona city to achieve AAA/Aaa ratings on both general obligation and excise tax revenue obligation bonds. This achievement translates into lower interest rates, saving taxpayer money, and keeping utility costs low for residents.