The Queen Creek Town Council heard a presentation of the town manager'recommended fiscal year 2025-26 budget at a budget session, where staff described a $682.7 million recommendation that concentrates more than half the total on infrastructure and advances proposed staffing increases for public safety.

Town Manager Bruce Gardner introduced the package, saying, "The budget total is recommended to be 682,700,000.0." Gardner and Chief Financial Officer Scott McCarty said the proposal is balanced "as required by state statute," while reflecting slower near-term revenue growth and a number of policy choices to protect long-term capacity.

The recommended budget and staff presentations

The recommended total includes municipal operating funds, utilities and capital projects; staff said roughly 52% of the total is dedicated to infrastructure, with transportation, public safety, and water and wastewater among the largest components. Scott McCarty, the town's chief financial officer, said the town took a conservative approach to new recurring spending because of several known uncertainties and longer-term commitments.

"In aggregate, all of these total $15,000,000. So in fiscal year 27, 28, or 2829, we're gonna be spending $15,000,000 more a year because of these 3 things," McCarty said, referring to planned future operating costs tied to police and fire facilities and dispatch.

Why the budget matters

Staff told the council the plan continues the council's recent tax-relief actions. The proposal reflects the council'approved property-tax freeze for a third consecutive year, and includes the full reduction from a tax the council repealed last year. Staff also emphasized the town's reserve and pension policies: a 25% operating reserve policy remains funded, and the budget includes ongoing contributions to pension reserves and other long-term commitments.

Key numbers and policy choices

- Total recommended budget: $682.7 million (staff presentation).
- Infrastructure share: staff said more than 52% of the recommended budget is for infrastructure projects, led by transportation, public safety, and water/wastewater work.
- Year-over-year change: McCarty described the budget as roughly 6% smaller than last year's total after accounting for the timing of large capital projects.
- Reserves and available operating balance: staff estimated total reserves plus pay-as-you-go balances in the hundreds of millions, and an available operating fund balance in the low tens of millions (staff provided a figure of about $23.2 million available to enter FY26).
- Contingency authority: the recommended budget includes a $50 million contingency line (listed in the street infrastructure section) staff described as a place-holder to respond to time-sensitive opportunities or to carry projects forward. Several council members asked staff to return with historical use and policy options for that contingency.

New positions and operating impacts

The presentation proposes 37 net new full-time positions (34 charged to the operating budget, 3 to utility funds). Staff said the largest increases are in police and fire and support functions such as IT and transportation. Examples discussed in the meeting include:

- Fire department: two fire-prevention inspector positions and a midyear request for a 40-hour fire engineer whose primary assignment would be driver/operator training and certification. Fire staff said growth in call volume and major construction projects has increased inspection workload and travel-time needs in parts of town. Fire staff identified planned station additions, including a targeted Fire Station 6 in the Ellsworth-Riggs area, to reduce response times.

- Police department: the police chief described a request for about 15 personnel across patrol, traffic and investigative units, plus administrative support to reduce workload in records and internal affairs. The police chief linked the staffing request to large increases in calls for service and other activity: he reported a roughly 402% rise in 9-1-1 calls when comparing two multi-year periods presented to council and cited substantial increases in officer-initiated activity and youth contacts. The chief said increased DUI enforcement and traffic operations have produced measurable results in reducing fatal collisions.

Capital priorities and project list

Staff provided a multi-year capital-improvement list that included projects already under contract and priority projects for the coming year. Notable items discussed:

- Public safety facility and related sites: staff discussed ongoing design and construction related to a police headquarters, parking garage and fleet/maintenance facility.
- Police equipment and vehicles: funding to continue fleet and equipment purchases.
- Fire stations: planning and design for Fire Station 6 (targeted for later years) and Station 7, tied to response-time goals.
- Streets and transportation: carryforward and active construction items, with a roughly $50 million listing of street projects carried into next year for work already underway or planned.
- Parks: a $2.2 million dog-park relocation cited as a carryforward project connected to police-site planning.

Utilities and rates

Staff framed water and wastewater as enterprise activities that must recover full cost through rates and fees. The presentation noted an existing 15% water/wastewater rate increase already set in motion and said additional rate and capacity-fee studies are underway; staff said more detailed rate recommendations will come after summer work on utility cost and capacity analyses.

Revenue drivers and risks

Staff said the town continues to rely on sales tax and state shared revenues but flagged two principal near-term revenue constraints: a limited supply of entitled single-family home sites tied to an assured-water-supply issue and a reduction in the town's share of state income-tax distributions that staff traced to recent state tax changes. Scott McCarty reiterated that those two items explain why the town programmed less recurring spending into the FY25-26 base than in prior years.

Process and next steps

Mayor and councilmembers asked clarifying questions about capital carryforwards, contingency policy and the timing of projects. Staff said they will compile follow-up memos for council and return with additional detail before the council's tentative budget action; McCarty noted the council will consider a tentative budget ceiling at the May 7 meeting.

At the start of the session the council took one procedural vote: Councilmember Mike McClure moved to approve the April 8, 2024 budget meeting minutes; Councilmember Brown seconded the motion, and the motion passed 5-0. That action was the only formal vote recorded during the budget presentations.

What council members said

Council members asked staff to return with historical detail on how the $50 million contingency has been used, and they emphasized the trade-offs between holding funds in contingency versus programming additional recurring services. Multiple councilmembers praised staff's long-range planning and noted the budget's mix of pay-as-you-go funding, debt and development fees for infrastructure.

The council did not adopt the budget at the session; staff will return with follow-up materials and a tentative budget for council consideration on the schedule described by staff.