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ITEM 1 |
City Council Memorandum Management Services Memo No. MS 21-058
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Date: |
June 10, 2021 |
To: |
Mayor and Council |
Thru: |
Joshua H. Wright, Acting City Manager Dawn Lang, Management Services Director |
From: |
Matthew Dunbar, Budget and Policy Assistant Director |
Subject: |
Resolution No. 5477, Adopting the Annual Budget in the Amount of $1,058,074,338; Setting Forth the Receipts and Expenditures, and the Amounts Proposed to be Raised by Direct Property Taxation for the Various Purposes for Fiscal Year (FY) 2021-22, and Adopting the 2022-2031 Capital Improvement Program (CIP) in the Amount of $1,267,887,520 |
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Proposed Motion: |
Move City Council pass and adopt Resolution No. 5477, adopting the Annual Budget in the amount of $1,058,074,338; setting forth the receipts and expenditures; and the amounts proposed to be raised by direct property taxation for the various purposes for FY 2021-22, and adopting the 2022-2031 CIP in the amount of $1,267,887,520, as presented or amended after the close of the public hearing. |
Background: |
On, May 27, 2021, Council adopted Resolution No. 5476 which approved the FY 2021-22 Tentative Budget in the amount of $1,058,074,338 and set June 10, 2021, as the date for a public hearing to allow taxpayers to comment and provide input on the Budget, CIP, and Property Tax Levy. A Notice of Public Hearing for “Adoption of the FY 2021-22 Annual Budget and 2022-2031 Capital Improvement Program and Setting of Property Tax Levies” has been posted on the official City website since June 2, 2021, and published in the Arizona Republic on June 2 and June 9, 2021, as required by State statute. The notice includes a summary of the Tentative Budget, with State Auditor General schedules (Budget forms) attached, 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. Action on the Property Tax Levy is scheduled for June 24, 2021. |
Discussion: |
FY 2021-22 Budget and Property Tax Levy: 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 $1,058,074,338 includes funding for departmental operating budgets of $411,883,447; funding for debt service of $73,753,925; budget for equipment, technology, and vehicle replacements of $5,086,418; and contingencies and reserves in the amount of $198,378,473 in various funds. The capital budget includes $113,260,825 in new appropriation, $255,461,250 in capital carryforward, and $250,000 in contingency and reserve funding. Included in the projected operating revenues of $510,712,767 is a property tax levy of $38,056,745 based on a rate of $1.1126 per $100 of assessed property valuation (reduced from $1.1201 in the current year), plus $481,455 for Salt River Project’s payment to the City in lieu of property tax, for a total of $38,538,200. Arizona Revised Statutes Truth in Taxation requirements do not apply for FY 2021-22 as the Primary Property Tax Rate of $0.2426 per $100 of assessed valuation (reduced from $0.2501), does not exceed the Truth in Taxation maximum rate of $0.2426 per $100 of assessed valuation and resultant levy, as determined by the Property Tax Oversight Commission. 2022-2031 Capital Improvement Program: City Charter requires the City Manager to present a (minimum) Five-Year CIP for the City of Chandler to the City Council before June 15th of the current fiscal year. The Proposed 2022-2031 CIP is a Ten-Year Program totaling $1,267,887,520. 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 discussed at the Budget Briefing on April 23, 2021. Following the close of the public hearing, Council is asked to make a motion to adopt the Final FY 2021-22 Budget and 2022-2031 CIP. |
Financial Implications: |
Approval of this budget provides legal appropriation to spend for Operations and the first year of the Capital plan, beginning July 1, 2021. |
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