Surprise council adopts tentative FY2027 expenditure limit amid slower revenue growth, adds 19 positions

The Surprise City Council on May 5 adopted a tentative expenditure limitation for fiscal year 2027 after a presentation from finance staff that warned revenue growth is slowing and that the city faces tough choices over staffing and services.

Finance director Sandy Simmons told the council the city is projecting roughly $688 million in overall revenue and presented a tentative budget (excluding transfers) near $975.9 million, made up of capital, operating, debt and contingency. "We are still seeing revenue growth, but it isn't as high as it has been in recent years," Simmons said, advising that constrained revenues and rising costs — notably a 14.9% jump in employee health insurance premiums — require prioritization.

The tentative plan includes 19 new positions: 11 for the police department, two for fire, two for transportation, and several others across human resources, parks and recreation and public works. Simmons said one‑time funds totaling about $350 million would continue asset‑replacement and multi‑year capital projects, including vehicle and traffic‑signal work, and design and construction of roadway projects.

Council members pressed staff on details. "Can you explain the 11% for roads — is that maintenance or capital?" Councilman Hastings asked. Simmons clarified the 11% figure represented ongoing road and facility maintenance in the general fund, while one‑time capital for roads appears in capital funds. On staffing, Police Chief (identified in the presentation as the department lead) defended a proposal to rebalance school safety resources, saying the city currently has about 15 dedicated School Resource Officers (SROs) and is expanding use of School Safety Officers (SSOs) funded by a state grant. "The SRO is a full‑time city officer; an SSO can be an off‑duty officer paid through a grant," the chief said, adding the city still plans to have officers in schools even if some roles shift.

Several council members said they want SROs prioritized as funding allows. "I'm a big fan of community policing; SROs are a phenomenal tool," Councilman Judd said, while noting the city requested a larger package in earlier budget rounds and remains understaffed for policing needs.

Simmons also flagged a pending voter initiative, HCR 2016, that would restrict increases in taxes, fees and utilities until 2030 and could materially limit the city's flexibility. Staff recommended departments stay within base budgets where possible and prioritize public safety amid slower revenue growth.

Councilmember Judd moved to approve Resolution 20 26 65 adopting the tentative expenditure limitation; the motion was seconded and passed. The council set public hearings on property taxes, special districts and the final budget for June.

What happens next: the council will hold public hearings in June on the proposed property-tax levy and final FY2027 budget before returning for adoption votes.