SE Valley Times

The Chandler City Council recently convened to discuss the fiscal year 2025-2026 operating budget and capital improvement program. These work sessions aimed to ensure the city continues providing high-quality services while maintaining Arizona's lowest sales tax rate. Though utility rate increases are anticipated, they will keep costs below average in the Valley.

The council examined forecasted revenues and planned expenditures for the next fiscal year. Chandler expects a stable economic environment with ongoing local spending, albeit at a reduced growth rate. Primarily funded by local sales taxes and state shared revenues, the city's general fund operating budget reflects sound financial planning.

Chandler continues to be recognized for prudent budgeting practices, maintaining strong financial reserves and a balanced budget that aligns ongoing revenues with expenditures and allocates one-time funds appropriately. The operating budget priorities include sustaining service levels while addressing inflation-driven cost increases. Expenditures will prioritize public safety, infrastructure, technology projects, quality of life enhancements, and neighborhood services. Additionally, Chandler intends to uphold its financial commitments to the Public Safety Personnel Retirement System, benefiting local first responders.

The council examined the status of federal grants with a focus on social services and infrastructure projects, bolstered by a federal continuing resolution. Discussions included transitioning grant-supported programs into permanent services to address homelessness through community initiatives, temporary housing, and shelters for heat relief.

They also reviewed property tax rates, considering property valuation trends, and offered preliminary guidance for financing major city improvements. The council discussed retaining the secondary tax rate while assessing primary rate options to maintain or reduce the current rate.

Attention then shifted to capital improvements, emphasizing investments in streets, public safety, and parks and recreation, based on a bond exploratory committee’s recommendations. With Chandler's AAA bond ratings from all rating agencies, financing costs remain low, generating savings for taxpayers. Proposed investments include developing phases of Mesquite Groves Park, updates to existing parks, constructing a police forensics facility, street repaving, bike lane enhancements, and road widening projects. Additionally, updates to the city's water and wastewater facilities are planned.

The City Council is set to vote on adopting the budget and capital improvement program tentatively on May 22.