Major roadway construction projects slated to be completed or started during the next fiscal year have boosted the town budget to $44.8 million for the 2014-15 fiscal year.

The Town Council May 1 approved the $44.8 million as the tentative total. That number cannot increase but may be trimmed for final approval, which the council will take up in early June.

Engineering design work is under way for the $8.2 million Saguaro Boulevard reconstruction, which is expected to start late this calendar year. Voters approved bond funding for the project last November.

A major improvement project on Shea Boulevard will replace the asphalt and add a lane between the east town boundary west to Technology Drive at the west end of the Four Peaks (Target) shopping plaza.

About $4.4 million has been allocated for that project, most of which will come from grants with $927,000 from the town’s Capital Improvement Fund.

Construction on that project should begin during the summer and will include improvements at the Saguaro Boulevard intersection.

Other capital improvement projects in the budget include Fire Station No. 2 relocation, Fountain Park lighting and parking upgrades, the Avenue of the Fountains median improvements (already under way) and smaller projects to bring the total capital budget to $22 million.

Councilman Dennis Brown noted that this is a large undertaking of projects for the town’s depleted staff and wondered if it would be necessary to add personnel.

Development Services Director Paul Mood said that larger projects will include construction management and oversight services.

General Fund

The town’s General Fund operating budget is proposed at $13,678,784, up a slight 3.8 percent from the previous budget.

Fund changes of note include a 20 percent cut to service contracts the town has maintained with several community agencies.

Those agreements will include $19,360 for the Extended Hands Food Bank, $51,200 for the Boys and Girls Clubs’ local branch and $63,216 for the Fountain Hills Theater.

The theater allocation has been split between the Community Services Division for youth-related cultural and arts activities ($28,096) and tourism-related strategies within the Economic Development Plan ($35,120).

The $103,000 previously allocated to the Chamber of Commerce Tourism Bureau has been placed in the General Fund for implementation of the Economic Development Plan. This was not reduced from previous budgeting.

The JumpStartBiz business incubator will receive $4,500 as part of economic development.

Core services that are funded with the General Fund include public safety.

The two contracts the town has with the Maricopa County Sheriff’s Office (law enforcement) and Rural/Metro (fire and emergency medical) use half the General Fund.

Both of those contracts have increased this year by a combined $400,000. Law enforcement budget is $3,379,630, an 8.3 percent increase over last year.

That includes a 10 percent increase in personnel costs. The personnel includes 3.8 “beats” plus a school resource officer.

The town is also budgeting $15,000 for the Sheriff’s Posse for vehicle maintenance.

The fire and emergency medical allocation is $3,447,099 for the year, an 0.8 percent hike. The Rural/Metro contract for personnel and administration increased by $94,247, or 3 percent.

Town Manager Ken Buchanan has said the public safety contracts remain a good deal for the town.

Other department budgets for the coming year include $85,158 for the Town Council. That includes expenses for upcoming elections.

Administration, including general government activities and economic development, has a budget plan of roughly $2 million.

The court budget is $275,165, which is a 24 percent decrease. The drop comes primarily as a result of reducing the position of presiding judge from full-time to part-time, as well as the retirement of court personnel.

Development Services has a budget of $2,014,506.

Community Services, which covers the operation of the Community Center and Parks and Recreation facilities, has a budget of $2,387,521.

Personnel

Town employees will receive a wage increase of up to 2.5 percent this coming fiscal year.

No council members had any problem with the wage increase, which would total $58,658 for total wage and benefits costs of $3,782,785.

However there were questions from the council about how the raises were to be implemented.

Some council members preferred an across-the-board 2.5 hike for all employees, except for the town manager and those employees who are already at the top of their salary range.

Buchanan said his plan is to implement the wage increase as a merit increase based on employee performance review. He said this is a preferred method.

Human Resource Administrator Joan McIntosh, in addressing confusion on the part of some council members, explained how similar raises were implemented last fiscal year.

McIntosh said employees were given an across- the-board or cost of living adjustment (COLA) of 1 percent, with an additional 1.5 percent available with the performance review.

Councilwoman Ginny Dickey asked for the 2.5 across-the-board hike, however, her motion was defeated and instead the council approved a plan to implement the raises as it was done last fiscal year, as described by McIntosh.

The town will go into the fiscal year with a budget for 52 full-time equivalent employees (41 full-time and 19 part-time).

Buchanan said he is asking for two changes in personnel – the volunteer coordinator moving from part-time to full-time and the human resource administrator moving back from part-time to full-time.

The budget plan will be available for public review for 30 days before a public hearing and consideration of final approval at the first council session in June. The new fiscal year begins July 1.