The Town Council has given its final approval to a $34 million budget for the upcoming 2020/21 fiscal year that begins on July 1.

The total approved taking in all funds is $33,901,492. The General Fund, or operating budget, proposal is $19,259,000. A $1.7 million undesignated contingency has been included in the General Fund to provide additional budget authority should there be revenue not currently anticipated due to the COVID-19 pandemic.

The $19.2 million operating budget shows an increase of 13 percent over the current year, however, it was noted that without the contingency the increase is about 3 percent.

The council made no changes to the tentative budget numbers approved in early May.

Due to the uncertainty of the current economic conditions Town Manager Grady Miller said staff would be taking a very cautious approach when it comes to spending this next year. Revenues will be monitored very closely and Finance Director David Pock will be providing the council with quarterly updates during open sessions. He will also be proving council members with pertinent revenue information as it becomes available in an informal manner.

Pock told the council that he had received preliminary revenue numbers for May, which were approximately 12.5 percent down from May one year ago.

There is a silver lining also, as Pock reported that through May revenues had exceeded budgeted expenditures for the year by $850,000 with still a month to go in the fiscal year.

Staff has prioritized the capital improvement plan for the next fiscal year to include four items that total $2,852,000. Those include the storm drain replacement along Panorama Drive ($1,902,000); flood impoundment improvements at Golden Eagle Park ($500,000); roundabout intersection at Avenue of the Fountains and La Montana Drive ($300,000); and lighting upgrades and repairs on the Fountain ($150,000).

The existing Capital Improvement Fund balance will support these projects. Additional capital projects will be evaluated by staff after the end of the first quarter in October.

The final budget vote was 5-0 with council members Dennis Brown and Sherry Leckrone absent.

There are a couple of budget-related highlights to be featured:

*All bonded debt the town has carried is paid off effective with the end of this fiscal year, June 30. The new budget has no debt service included.

*The 2020/21 fiscal year is the final year that residents of the Eagle Mountain community will be paying property tax on the Eagle Mountain Community Facilities District. The district was formed in the early ‘90s to fund infrastructure development for the neighborhood in the southwest corner of Fountain Hills.