CHANDLER, Ariz. – The Chandler City Council held two recent work sessions focused on the development of the fiscal year 2025-2026 operating budget and capital improvement program. The budget equips Chandler to provide high quality services and infrastructure while maintaining the lowest sales tax rate in Arizona. While utility rate increases are planned, it keeps those service costs among the lowest in the Valley.
The City Council reviewed forecasted revenues and proposed expenditures in next year’s operating budget. Chandler anticipates a stable economic environment, with continued local spending, though at a slower rate. The city’s general fund operating budget is primarily funded by local sales taxes and state shared revenues.
Chandler continues to be recognized for sound budgeting practices that support the city’s financial stability. This includes maintaining strong financial reserves and a structurally balanced budget where ongoing revenues cover ongoing expenditures and one-time revenues are used for one-time expenditures.
Priorities for the operating budget are to sustain existing service levels while managing inflation-driven cost increases. Recommended expenditures will focus on public safety, city infrastructure, technology projects, quality of life enhancements and neighborhood services. Chandler also aims to maintain its funding obligations in the Public Safety Personnel Retirement System, benefiting first responders who have served our community.
The status of federal grants was another topic of discussion by the City Council. The federal government’s continuing resolution has provided short-term stability for federal grants that support public housing, social services and infrastructure projects. The allocation of city funds was discussed to convert some grant-supported programs into permanent services, ensuring long-term continuity of programs that prevent homelessness through community navigators, temporary housing and heat relief shelters.
The City Council reviewed property tax rates, property valuation trends and offered preliminary guidance about property tax rates that finance major city improvements. They discussed maintaining the secondary rate flat while exploring primary tax rate options to maintain or reduce that rate, ensuring stability for residents.
The City Council then shifted its focus to the capital improvement program and resident bond exploratory committee’s recommendation for investments in streets, public safety and parks and recreation. Chandler’s AAA bond ratings from all three rating agencies keeps financing costs low, producing savings for taxpayers when financing major capital improvements.
Recommended investments include developing the first two phases of Mesquite Groves Park, updating Dr. A. J. Chandler Park and improvements to existing parks. Additional projects include building a Chandler Police Forensics Facility, repaving city streets to maintain and improve pavement quality, improving bike lanes, widening sections of Lindsay and Alma School roads in south Chandler and updating Chandler’s water and wastewater facilities.
The City Council is scheduled to vote on the tentative adoption of the budget and capital improvement program at its May 22 meeting.
Link to Budget Work Session Presentation and Capital Improvement Program Presentation