Tempe unveils $1.95 billion recommended five-year CIP; council signals consensus to raise tax-cap ceiling to speed bond projects

City staff presented the initial recommended five-year capital improvements program (CIP) to the Tempe City Council on March 20, showing a program of roughly $1.95 billion and outlining strategies to accelerate voter-approved bond projects. Councilmembers gave consensus to revise the city—s property-tax stabilization policy so the city can raise the levy cap to accelerate paving and affordable housing projects.

The CIP presentation brought forward projects across parks, public safety, transportation, transit, storm drains, and enterprise systems and reiterated the city—s intent to prioritize asset preservation and public health and safety. "This presentation is the first look at the recommended capital improvements program for the next 5 years," said Lisette Camacho, a presenter to the council. Julie Hyder, the interim municipal budget director, said the staff work aligns with council priorities and transparency goals.

Why it matters: The five-year program uses a mix of general obligation bonds, enterprise-funded bonds, special revenue, and cash where available. Voters authorized about $582 million in bond capacity in the November 2024 election; staff said they maximized general-obligation bond capacity to respond to inflationary pressure on project costs and to accelerate high-priority work such as paving and affordable housing.

Key points from the presentation - Total program: staff presented a five-year CIP of about $1,950,000,000. - Bond authorization: the November 2024 general-obligation bond authorization totals roughly $582,000,000 to fund public-safety, roadway, neighborhood, historic-preservation and affordable-housing projects. - Change from prior plan: staff said the five-year total rose by roughly 0.5 percent, which they estimated equates to about $9 million, partly because an added fifth year was included in the recommended plan. - Funding categories: staff said the largest funding components are enterprise bonds (water, wastewater, solid waste, ambulance), general obligation bonds (paid from the secondary property-tax levy and requiring voter authorization), and special revenue funds restricted for specific purposes such as transit and arts and culture. Staff also noted potential federal grants and developer contributions where applicable. - Project examples: staff highlighted PQI (pavement quality index) acceleration, a new police substation, rebuild of Fire Station 2, renovation of Fire Station 3, construction of Fire Station 8, water and sewer replacement projects, and asset restoration at Tempe Center for the Arts and the History Museum.

Policy change and next steps City staff proposed revising Tempe—s property-tax stabilization policy, adopted in June 2011, to remove a tie to the Consumer Price Index and to allow an annual levy increase up to 5 percent (the current policy references CPI up to a 3.3 percent maximum). Lisette Camacho…