SE Valley Times

The Chandler City Council has initiated the process of formulating the fiscal year 2025-2026 operating budget and capital improvement program. This effort aims to maintain high-quality services and infrastructure while keeping sales tax rates and utility service costs among the lowest in Arizona.

The initial work session opened with a review of the annual budget survey results, which highlighted residents' satisfaction with their quality of life, safety, and services. The survey also pinpointed spending priorities, including enhancements in parks and recreation, public safety, social services, and streets.

Chandler's budgeting practices have been recognized for promoting financial stability. The city maintains strong financial reserves and a balanced budget strategy where ongoing revenues match ongoing expenditures. One-time revenues are allocated to one-time expenditures. Chandler's AAA bond ratings provide taxpayer savings on financing major capital improvements.

Discussions during the session also covered economic factors likely to affect next year's budget. These include national and local economic indicators, inflationary impacts on forecasted revenues and costs, steady local economic growth with $150 million in building permits issued, and a population increase of nearly 13 percent since 2017.

Councilmembers addressed concerns about federal fund freezes affecting public housing programs. This issue will be revisited in March during the next budget work session.

Additional revenue considerations included local sales tax fluctuations and recent state legislation that eliminated the residential rental tax as of January 2025. A proposed state food tax could further impact revenues by an estimated $17 million loss.

The session concluded with preliminary guidance on operating and capital priorities as well as property tax rates for major city improvements. An update was given on the financial status of the Public Safety Personnel Retirement System; Chandler is notable for having paid off its pension's unfunded liability.