Chandler City Council approves budget with historic tax cuts

The Chandler City Council has proposed a budget of over $1.6 billion for the upcoming fiscal year, marking a 1.6% decrease from the previous year. The general fund, which is crucial for day-to-day operations, will see a reduction of 5.4%, amounting to $577 million. This budget adheres to the city's strong financial policies and is designed to be structurally balanced, ensuring ongoing revenues cover ongoing costs.

During the budget process, the city engaged residents through various initiatives, including a budget kickoff, workshops, and surveys. The council emphasized the importance of aligning the budget with the current economic environment, noting increases in revenue from ongoing development in Chandler, while also anticipating a decrease in residential rental tax starting January 2025.

Expenditure increases are primarily attributed to inflation affecting goods and services, as well as rising costs for capital projects. The city has maintained its AAA bond rating, which helps reduce borrowing costs for capital projects. Investments in solar energy and turf-to-zeroscape projects are expected to yield utility cost savings.

A notable highlight of the budget is the reduction of the city’s primary property tax rate, which has been lowered for the ninth consecutive year. The property tax levy is projected to increase slightly due to property appreciation, but the overall impact on a median homeowner will result in an annual tax increase of approximately $10.41.

The council is set to finalize the budget and tax levies in upcoming meetings, with the final adoption scheduled for June 27. The budget reflects a commitment to long-term financial sustainability while continuing to provide essential services to residents without increasing utility rates for the next fiscal year.