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Final budget to council June 6

Posted 5/30/23

The Town Council will hold a hearing and consider its final budget plan for the Fiscal Year 2023/2024 when it meets on Tuesday, June 6. The total amount being considered is $43,057,708. Finance …

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Final budget to council June 6

Posted

The Town Council will hold a hearing and consider its final budget plan for the Fiscal Year 2023/2024 when it meets on Tuesday, June 6. The total amount being considered is $43,057,708. Finance Director David Pock said adjustments were made from earlier projections due to the state calculated expenditure limitations that could not be exceeded.

The total includes a General Fund budget of $25,585,805; Special Revenue fund total, $9,643,912; debt service is $19,760; and the Capital Fund budget is $6,918,531. Internal service funds such as Facilities Reserve, Technology Replacement and Vehicle Replacement total $889,700.

The budget proposal includes a 7% COLA increase for employees. A $3 million contingency has been included in the General Fund to balance the budget, as projected revenues are ahead of estimated expenditures for the year.

Councilman Allen Skillicorn has said he has some proposals to cut the budget even more before the final version is approved. His plan would reduce the budget by another $1.3 million, most of which is included in the proposed capital improvement budget.

“There is no chance we spend anything more than $43,057,708 (due to the expenditure limitation) so we need to be strategic in how we spend these dollars,” Skillicorn said in a statement to The Times. “I contend we need to make road and infrastructure a greater priority.”

According to Pock the fund balance for the Street Fund is $14.6 million, and Interim Town Manager Rachael Goodwin and Public Works Director Justin Weldy have both stated this available amount is more than they would be able to spend over the next two years. The council is also waiting to hear from an ad-hoc Street Committee with a plan to prioritize street reconstruction and maintenance. That report will be before the council on June 20.

Proposed cuts

Skillicorn’s proposed cuts would include the 7% COLA increase to management staff (would be kept for other employees). Goodwin has already declined the COLA increase for herself, and there was little additional council support for this cut when Skillicorn proposed it when considering the tentative budget May 2.

Skillicorn also wants to delete $2,400 paid to the Maricopa Association of Governments (MAG) for the Town’s membership in the Valley-wide coalition of governments. MAG provides something of an economy of scale with all members participating in solutions to regional issues such as domestic violence and transportation. The budget also includes $50,000 to MAG to help address issues with the homeless. This is funding Skillicorn also wants to cut. The money supports existing homeless infrastructure and agencies that assist individuals and families without housing.

Skillicorn would cut $237,000 from the CIP for what was described as exercise equipment placed outdoors. Interim Community Services Director Kevin Snipes explained that this money is the second half of a two-year improvement program at Desert Vista Park, with the bulk of the work completed this fiscal year. Originally, the Rotary Club was on board to help with the project that included the outdoor exercise equipment, however, Snipes said they have redirected their support to the School District this year. The exercise equipment will not be included this coming fiscal year. The work to be done will be to pour a concrete slab at Desert Vista to accommodate a shade structure donated to the Town by the American Legion. This is a $50,000 savings to the Town, according to Snipes.

Skillicorn is also asking to remove $250,000 to replace what he describes as “healthy trees.” This funding is part of a project related to the Centennial Circle at the Civic Plaza.

Snipes said the work related to the trees is not optional.

“The trees in the pavilion are an immediate safety issue and are coming out ASAP regardless of this project being approved or not,” Snipes said in a statement to The Times. “Staff has had to remove four trees already this year because they have fallen over. Others are leaning so bad that they have lifted the grates around them six inches above the sidewalks creating a tripping hazard.

“Others have holes and splits all the way through the trunks and branches making them prime subjects for snapping off during a windstorm.”

The biggest share of this project is an 80-foot shade structure at the center of the circle.

“Staff came up with the idea of installing a puzzle piece donation sign shaped like Arizona to help fundraise nearly $100,000 of this project,” Snipes said. “Therefore, this is only approximately a $150,000 investment for the Town once all the puzzle pieces are sold.”

He said other improvements that will be included in this project are improving the landscaping and adding new trees. There will also be some artwork that will be refurbished and moved to increase accessibility. This will be funded by the art fund.

The council had discussed this as a step forward to improve the Centennial Circle to generate interest in the planned International Dark Sky Discovery Center, which recently received a $10 million boost from the Arizona state budget.

The final item Skillicorn is proposing be removed is $535,000 for streetscape improvements for Parkview Avenue to improve the downtown area. This is at best a “back burner” project for the upcoming fiscal year. Economic Development Director Amanda Jacobs said nothing would be spent on this project before January 2024, and even then there would likely be little money spent this fiscal year.

“Let’s use the savings from these budget items to pay for roads. It is time to make responsible choices with taxpayers’ money. The people elected us to solve real problems like infrastructure concerns – not purchase outdoor exercise equipment,” Skillicorn said. “Plus, investing in infrastructure now makes sense. We have an opportunity to prepare for future infrastructure needs by investing in roads now.

“I think if you asked the average person if they want better roads or outdoor exercise equipment – they would choose roads.”

Skillicorn said he believes his “Roads First Budget” is a reflection of what the residents of Fountain Hills expect from their local government leaders.

It should also be noted that money allocated in the Capital Improvement Budget is money in place should the opportunity present itself to proceed with the project. Expenditure is always dependent on further review and contract approval by the council. At the end of June each year there are nearly always CIP funds that remain to roll over to the next fiscal year. That money can go toward other capital projects in the new year or transfer where needed, such as the Street Fund.

Pock said it is possible to redirect allocation to the Street Fund at this point, but noted the process would likely delay the budget, and the money is not needed in the upcoming fiscal year.