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ITEM 1 |
City Council Memorandum Management Services Memo No.
24-088
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Date: |
June 13, 2024 |
To: |
Mayor and Council |
Thru: |
Joshua H. Wright, City Manager Dawn Lang, Deputy City Manager - CFO |
From: |
Matthew Dunbar, Budget and Policy Director |
Subject: |
Resolution No. 5801 Adopting the Annual Budget in the Amount of $1,629,072,684 and Adopting the 2025-2034 Capital Improvement Program (CIP) in the Amount of $2,488,884,031 |
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Proposed Motion: |
Move City Council pass and adopt Resolution No. 5801, adopting the Annual Budget in the amount of $1,629,072,684; setting forth the receipts and expenditures; and the amounts proposed to be raised by direct property taxation for the various purposes for FY 2024-25, and adopting the 2025-2034 CIP in the amount of $2,488,884,031, as presented or amended after the close of the public hearing. |
Background: |
On May 23, 2024, Council adopted Resolution No. 5800, which approved the FY 2024-25 Tentative Budget in the amount of $1,629,072,684 and set June 13, 2024, as the date for a public hearing to allow taxpayers to comment and provide input on the Budget, Capital Improvement Program (CIP) and Property Tax Levy. A Notice of Public Hearing for “Adoption of the FY 2024-25 Annual Budget and 2025-2034 Capital Improvement Program and Setting of Property Tax Levies” has been posted on the official City website since May 29, 2024, and published in the Arizona Republic on May 29 and June 5, 2024, as required by state statute. The notice includes a summary of the Tentative Budget, with State Auditor General schedules A and B attached with all "Budget Forms," and provides a general description of the Ten-Year CIP. Council action on the Budget and CIP is scheduled immediately following the Public Hearing on the Budget, CIP and Property Tax Levy. Final action on the Property Tax Levy is scheduled for June 27, 2024. |
Discussion: |
Arizona Revised Statutes provide that the total amounts proposed to be spent in the final budget shall not exceed the total amounts that were proposed for expenditure in the published tentative estimates. The Tentative Budget in the amount of $1,629,072,684 includes funding for departmental operating budgets of $527,082,614; funding for debt service of $81,117,324; budget for equipment, technology, and vehicle replacements of $10,756,580; and contingencies and reserves in the amount of $133,605,116 in various funds. The capital portion of the budget includes $239,384,596 in new appropriation, $637,126,454 in capital carryforward, and $450,000 in contingency and reserve funding, for a total of $876,511,050. Included in the projected operating revenues of $684,264,968 is a property tax levy of $44,723,790 based on a rate of $1.0826 per $100 of assessed property valuation (reduced from $1.0926 in the current year). Arizona Revised Statutes Truth in Taxation requirements do not apply for FY 2024-25, as the Primary Property Tax Rate of $0.2126 per $100 of assessed valuation (reduced from $0.2226), does not exceed the Truth in Taxation maximum rate of $0.2126 per $100 of assessed valuation and resultant levy, as determined by the Property Tax Oversight Commission. Relating to the CIP, the City Charter requires the City Manager to present a minimum Five-Year CIP for the City of Chandler to the Council on or before June 15 of the current fiscal year. The Proposed 2025-2034 CIP is a Ten-Year program totaling $2,488,884,031. Information regarding the various capital projects, cost estimates, methods of financing, recommended time schedules and estimated annual operating cost were distributed in the proposed budget, which is posted online and was discussed at the All-Day Budget Briefing on April 26, 2024, and tentative budget adoption on May 23, 2024. Following the close of the public hearing, Council will be asked to make a motion to adopt the Final FY 2024-25 Budget and 2025-2034 CIP. |
Financial Implications: |
The budget adoption sets the total FY 2024-25 expenditure limitation. The purpose of the budget is to set the legal spending authority for the new fiscal year after public input and feedback. |
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