CHANDLER, Ariz. – A Chandler City Council work session officially kicked-off the process to create the fiscal year 2025-2026 operating budget and capital improvement program (CIP).
The session enabled the mayor and councilmembers to provide broad policy direction and review factors that could influence the operating budget and capital projects. These factors included economic impacts to forecasted revenues and costs, as well as incorporating the full effects of the state legislation that eliminated the residential rental tax, which has an estimated impact of $11 million annually.
The City Council provided guidance for the Resident Budget Survey as the budget process engages residents through online and hard copy surveys that will be available starting in November. It enables residents to provide insight on the use of tax dollars, satisfaction with city services and priorities for each of the Council’s strategic focus areas. Information about the city’s budget is available at chandleraz.gov/budget.
Council actions that shaped the current fiscal year 2024-2025 budget included reducing the primary property tax rate for the ninth consecutive year and increasing the CIP to account for inflation, the updating of aging infrastructure and finishing planned parks and streets. Chandler continues to provide high quality services and infrastructure with one of the lowest sales tax rates in Arizona and maintaining low utility service costs.
Chandler’s budget is structurally balanced whereby ongoing revenues support ongoing expenses and one-time revenues are allocated toward one-time expenses. It also is the largest Arizona city to pay off the Public Safety Personnel Retirement System unfunded liability.
Adherence to sound financial policies and maintaining strong reserves have enabled Chandler to maintain AAA bond ratings from all three rating agencies. In December 2023, Chandler became the first Arizona city to achieve AAA/Aaa ratings on its general obligation and excise tax revenue obligation bonds, which translates to lower interest rates, saving taxpayers money, and keeping utility costs low for residents.
Link to Budget Kickoff Presentation