Chandler council adopts $1.6B operating budget and $2.62B CIP; property tax levy set at $44.6M
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Summary
After a public hearing and a required special meeting, the Chandler City Council unanimously adopted the fiscal year 2025–26 budget, a 10‑year capital improvement program and set the city's property tax levy; city leaders said the plan preserves reserves, funds employee commitments and keeps the city's transaction privilege tax at 1.5%.
The Chandler City Council unanimously adopted the fiscal year 2025–26 annual budget and the 2026–2035 capital improvement program during a special meeting called under state statute.
“Sylvia Delap” presented the budget during the public hearing earlier in the evening and described the totals: “The fiscal year 25‑26 proposed budget totals $1,600,000,000 and that includes all funds. The general fund portion totals $615,000,000,” she told the council. Delap also said the total budget represents a 0.01% decrease from the prior year while the general fund shows a 6.6% increase.
At the special meeting, the council approved resolution no. 5906, adopting the FY25‑26 budget, setting amounts proposed to be raised by direct property taxation, and adopting the 2026–2035 capital improvement program. The adopted CIP amount stated at the meeting was $2,617,730,721. Council member Harris moved for adoption; Council member Poston seconded the motion. The vote was unanimous.
Delap outlined key elements of the plan: the city will continue to maintain a transaction privilege tax rate of 1.5%, reduce the primary property tax rate for a second consecutive year, and fully fund public safety pension obligations. The budget includes funding for labor commitments and market‑based employee merit increases and keeps strong reserve levels, Delap said. The CIP update added utility projects and increased cost estimates to reflect current construction conditions; the city also authorized a November 2025 bond election to fund future capital work.
The proposed property tax levy adopted for FY25‑26 totals $44,600,000 based on a limited property valuation of $4,120,000,000 — a 0.4% change from the prior year. Delap presented the impact on a median homeowner: the city portion of the tax bill rises from $264.88 in FY24‑25 to $277.40 in FY25‑26, an annual increase of $13.01 (about $1.08 per month). The combined city property tax rate moved from $1.00826 to $1.00818 per $100 of assessed value, Delap said.
Why it matters: The adopted budget funds city services, major capital projects and employee costs while preserving reserves and preparing for a potential bond measure. The plan also reflects recent changes to how personal property is valued, which influenced assessed valuations and levy calculations.
Next steps and deadlines: the council held the required public hearing and completed adoption at a special meeting; the ordinance setting property tax levies remains on the schedule for tentative and final adoption on June 26, as noted in staff materials.
