Chandler proposes $1.63 billion budget, council directs smaller primary property tax rate

City Manager Dawn presented the City of Chandler’s fiscal 2025–26 proposed budget and 10‑year capital improvement program to the City Council in a daylong budget briefing, framing the $1.629 billion proposal as structurally balanced and tied to the council’s strategic framework.

The proposed budget maintains core services while relying on a mix of ongoing and one‑time revenues, the city said. Deputy City Manager and Chief Financial Officer Don Lang told council members the budget continues Chandler’s conservative financial approach and noted plans to use one‑time dollars for capital and targeted projects.

The proposal forecasts a modest overall decrease in the total budget from the prior year, while isolating the general fund shows a 6.6% increase driven by personnel and capital investments. Lang said ongoing operating costs grew by roughly 4.1% while capital spending fell about 3.5% from the prior year. The budget includes a $10 million budget stabilization reserve and a 15% general‑fund contingency reserve, and officials described the package as built to weather uncertainty in revenues.

Council members asked for clarifications about a $25 million placeholder in the budget to address the city’s Public Safety Personnel Retirement System (PSPRS) obligations. Don Lang said the number is an estimate included now because the PSPRS actuarial model is run on a one‑year lag and the final payment amount will come after November’s actuarial tables. “We’re not sure that we’re going to need the full $25,000,000. That is an estimate,” Lang said. He told council the estimate errs on the conservative side and could be adjusted once the formal actuarial calculations are received.

Council members weighed property‑tax options. Staff said the median homeowner impact at the proposed primary and secondary tax settings is roughly $1.10 a month; staff offered an option to remove newly generated primary‑tax revenue by reducing the primary rate by 0.0008. After discussion, council asked staff to bring back a reduced primary‑property‑tax rate in the next ordinance, and the city manager said staff would move forward with that adjustment.

The presentation also reiterated major capital priorities: voter‑authorized bond projects, street and utility programs, technology upgrades, public‑safety investments and water/wastewater replacement. City officials said bonds will fund roughly 73% of the capital program and called attention to aging infrastructure needs across utilities and transportation.

Council members praised staff for the multi‑month budget process and directed staff to bring the proposed tax‑rate adjustment and any necessary implementing ordinances back to council in the coming weeks.

Ending

Council did not adopt the budget at the briefing; the presentation was the formal release of the proposed FY 2025–26 budget and the start of the public and council review period. Staff will return to council with the revised primary tax rate and final ordinance language before final adoption.