The Town Council has approved its tentative budget plan for the 2020/2021 fiscal year, which 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 a recovery from the COVID-19 pandemic allows for revenues not currently anticipated.

The $19.2 million operating budget shows an increase of 13 percent over the current year, however, Mayor Ginny Dickey notes that without the contingency the increase is about 3 percent.

The tentative budget plan allows for public review of the numbers before council votes on a final budget in June. The council cannot increase the final numbers from the tentative approval; it can, however, reduce the total before a final vote.

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.

No debt

It was also noted that the Town of Fountain Hills will go into the new fiscal year with no debt service in the budget. This includes general obligation and revenue bonds. Finance Director David Pock said final payments on the town’s existing general obligation bonds and Municipal Property Corporation bonds will be made by the end of this fiscal year, June 30.

Among the debt being paid off is the bond package for the reconstruction of Saguaro Blvd. and the Fountain Hills Preserve land.

Councilman Mike Scharnow noted that when residents receive their property tax bill this fall there will be no secondary obligation due for the town.

Residents who live in the Eagle Mountain subdivision will have the Eagle Mountain Community Facilities District debt, but this is the final year for that obligation. Also, residents who live in the Cottonwoods neighborhood off Saguaro and Grande boulevards will have their annual maintenance assessment.

The annual budgets for both the Eagle Mountain CFD, and the Cottonwoods Maintenance District were given tentative approval by the council acting as board of directors for those districts.

The Town Council is to hold a public hearing and consider final approval for the annual budget when it meets on Tuesday, June 2.

The town is anticipating allowing a limited number of people for participation in the public hearing. Also, residents can make email comments regarding the budget as part of the hearing record.

The complete budget documents are available for review at fh.az.gov and the public notice with details is published in this week’s edition of The Times.