The Fountain Hills Sanitary District has a proposed operating budget of $10,490,260 under consideration for the 2021/2022 fiscal year. That is just a 3-percent increase over the budget for the current fiscal year.

Additionally, the budget includes $2.5 million in contingency for emergency or unforeseen expenses and $152,500 in proposed capital expenses. Also, $1,790,000 is budgeted for the district Facilities and Equipment Replacement Reserve (FERR). This is money placed in reserve for major facility replacement or expansion projects anticipated in the future. There are no such projects currently being considered. Overall, the budget including operations, reserves and contingencies is about $15 million.

The district anticipates collecting $5,326,000 in property tax and $5,272,590 in sewer user fees. The district is not proposing any changes to its fee schedule for the upcoming year. Any additional revenue from user fees is attributed to growth, according to Sanitary District Board of Directors Chairman Michael Maroon. Additional revenues from property taxes are due to increases in property valuations and not a requested increase from the district.

The budget includes revenue lines for connection fees, recycled water and other.

Maroon said the board is mindful that there is an aging infrastructure in the district, and they are working to balance fees in relation to a need for improvements and maintenance that may be coming within a few years.

The board has also made the decision to bring employees under the Arizona State Pension System.

“This will make us a lot more competitive and help us retain the good employees we have here,” Maroon said.

The Sanitary District Board will hold a public hearing on the budget Wednesday, May 19, at 4:30 p.m. at the district offices at 16941 E. Pepperwood Circle.

The new fiscal year begins on July 1, 2021.