Chandler City Council adopts $1.6B budget and $2.6B capital improvement plan

The Chandler City Council convened on June 12, 2025, for a public hearing focused on the adoption of the Fiscal Year 2025-2026 annual budget, the 2026-2035 Capital Improvement Program (CIP), and the property tax levies for the upcoming fiscal year. City staff member Sylvia Delap presented the proposed budget, which totals $1.6 billion, including a general fund portion of $615 million. This reflects a slight decrease of 0.01% in the overall budget but a notable increase of 6.6% in the general fund compared to the previous year.

Delap emphasized the budget's theme, "strength in numbers," highlighting the city's commitment to sound financial practices and stakeholder collaboration. The proposed budget is designed to be structurally balanced, ensuring that ongoing expenditures are matched with ongoing revenues, while one-time expenditures are supported by one-time revenues. Public input was solicited throughout the budget process, including surveys and workshops.

Key highlights of the budget include maintaining the lowest transaction privilege tax rate in Arizona at 1.5% and a reduction in the primary property tax rate for the tenth consecutive year. The budget also allocates funds for employee compensation to remain competitive with other cities in the region and ensures full funding for the Public Safety Personnel Retirement System (PSPRS) obligations.

The CIP for 2026-2035 totals $2.6 billion, marking an increase of $129 million from the previous year. This plan focuses on addressing aging infrastructure and includes potential new bond authorizations for capital projects, with a bond election scheduled for November 2025.

Regarding property taxes, the proposed levy for FY 2025-2026 is set at $44.6 million, based on a property valuation of $4.12 billion. This represents a 0.4% increase from the previous year, primarily due to new property additions and adjustments in property valuation legislation. The total property tax rate will decrease slightly from $1.0826 to $1.0818 per $100 of assessed valuation. For a median value homeowner, this translates to an annual increase of $13.01 in their city property tax bill.

The council is expected to finalize the budget and tax levies on June 26, 2025, with the public encouraged to reach out for further information through the city’s contact channels.