The Town Council has approved the tentative budget for the Town for Fiscal Year 2023/2024. The total amount approved is $43,057,708. This is a reduction in the amount discussed by the council at its budget workshop in April. Finance Director David Pock said adjustments were made the state calculated expenditure limitations were not 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.

Pock also reported that as the current fiscal year approaches a close, the Town’s revenue is well ahead of the annual projections and expenditures.

The budget proposal includes a 7% COLA increase for employees. Councilman Allen Skillicorn asked that the COLA apply to rank and file, but not management. He said the 7% level is unheard of. Councilman Gerry Friedel said all employees should have the same consideration. He said the Town has good employees and they should want to keep them.

A $3 million contingency has been included in the General Fund to balance the budget; projected revenues are ahead of estimated expenditures for the year. Skillicorn said he wanted the contingency committed to the Streets Fund. Interim Town Manager Rachael Goodwin told the council that the money the Town already has dedicated to streets is more than they expect to be able to spend over the next two years. She also said the Town would not be asking voters to consider a street bond in 2024.

“We have all the money we can spend (on streets) available for the next two years,” Mayor Ginny Dickey said.

Friedel asked about putting surplus money into the Streets Fund. Dickey suggested that is a discussion the council can have when it considers year-end transfers. She said to dedicate a specific amount to the Street Fund as a matter of course would require a policy amendment.

The budget proposal has deferred $2.9 million is capital improvement projects. Some of those included what have been priority projects related to flood control with the Golden Eagle detention basin.

Skillicorn said he had concerns about delaying work that has been a priority.

Goodwin said when the expenditure limitation issue arose staff had detailed discussions about what they could get done during the upcoming year.

Public Works Director Justin Weldy said they made difficult decisions based on calculated risk. He said the design is complete for the Golden Eagle Park storm water work, however, the Town needs to wait on decisions from the Arizona Department of Water Resources and the Maricopa County Flood Control District before they can proceed with the work. He said he does not think the plans will clear ADWR and MCFCD in time to get the project done next fiscal year.

Skillicorn also proposed his own specific cuts to the budget that would reduce the tentative budget to $41.9 million. The tentative budget is only a proposed budget, but it does set the cap for the maximum amount that is finally approved. Skillicorn was reminded that his proposed cuts do not give any flexibility to address issues that may come up in the next month prior to final approval, scheduled for the council’s June 6 meeting.

Skillicorn made a motion to set the tentative amount at his proposed $41.9 million but there was no second. The motion to approve the $43 million total was 5-2 with Skillicorn and Councilwoman Hannah Toth dissenting.

The new fiscal year begins on July 1.