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Florence reviews FY27 budget gap, flags wastewater shortfall and debates property‑tax options
Summary
At an April 28 work session, Florence staff outlined a FY27 budget showing a roughly $20.4 million townwide gap (handled partly with fund balance), warned of a stressed wastewater fund and proposed a rate study; council discussed five levy options ahead of the June Truth in Taxation hearing and heard a public pitch to seed a downtown nonprofit.
Florence officials on April 28 held a nonvoting work session to review the town’s FY2027 budget, proposed changes to the capital improvement plan and options for the property‑tax levy, with staff warning the wastewater fund needs long‑term fixes.
Carl, the town finance presenter, told the council the town forecasts about $57.8 million in total revenue against $78.2 million in expenditures for FY27, producing an overall budget gap the town plans to address in part by drawing on fund balances and previously earmarked reserves. "We are going to commission a rate study hopefully at the end of FY27," Carl said, referring to wastewater rate planning to support a 10‑year CIP and operational forecast.
Why it matters: the finance presentation showed strong overall cash and investment holdings in pooled accounts and a large PFM account, but several enterprise funds (notably wastewater and certain transportation funds) have dipped into reserves. Council members warned that relying on uncertain state shared revenues — and a pending challenge to San Tan Valley census figures that could change shared‑revenue allocations — increases near‑term risk.
Staff walked council through five property‑tax levy options the town could advertise for the June Truth in Taxation (TNT) process, from holding current levies (no increase to existing property owners) to levying the statutory maximum. Carl presented estimated revenue and average homeowner impacts for each option; adopting the maximum would add about $141,660 in revenue in the model presented. Several council members said they prefer caution given uncertainty about state shared revenues; others argued a modest increase is needed to maintain public‑safety and infrastructure funding.
Council member Neal urged decisive action to address funding shortfalls, saying the town should take steps now to ensure public safety and infrastructure needs are met. Other members favored advertising the highest allowable figure for public notice and then deciding at the TNT hearing in June, as required by state procedures. Staff said the council can adopt a levy at its June meetings after required public notice.
Personnel and CIP highlights: staff recommended several midyear hires contingent on revenue, including a police administrative assistant, records clerk and an additional firefighter; the budget also includes part‑time seasonal funding for aquatics and recreation programs. The proposed CIP was adjusted from an earlier draft: Main Street Park scope was reduced by $500,000, signage funding was reduced and monument signage was deferred three years, while some water‑department design work was pushed to FY28.
Community services and downtown: staff described a pilot to extend pool hours this summer and proposed opening a teen center one day per week after school, with staff to finalize schedules and distribute details to council. During public comment Michelle Carpenter, a downtown resident and business owner, urged council to consider seed funding and partnership for "Florence Forward," a proposed nonprofit to coordinate downtown activation, historic restoration and small‑business support. "Florence Forward is a proposed nonprofit focused on revitalizing downtown through strategic projects, small business support, and targeted investments, working in partnership with the town, not in place of it," Carpenter said. Staff agreed to work with her to provide additional details for council consideration.
What happens next: because this was a work session, council did not take formal votes; staff will return with refined schedules, the manager and department heads will provide follow‑up materials, and the property‑tax options will be advertised ahead of the town’s Truth in Taxation proceedings in June for final council action.
