The Town Council has approved a tentative budget proposal of $38,914,425 for the fiscal year 2018/2019 that will begin on July 1.

The preliminary budget plan does include $7 million that would be available if a primary property tax ballot question is approved by voters on May 15.

If the ballot measure fails, the $7 million will be removed from the budget before final approval scheduled for June 5. Councilman Alan Magazine noted that if the tax proposal fails and the budget is cut back to roughly $32 million, it will be the smallest annual budget for the town in five years.

Town Finance Director Craig Rudolphy has said the $7 million must be included in the tentative budget because the town cannot increase the final version from the preliminary approval. If it was not included in the tentative total and the tax question passes, the town would not be able to use the money since it would not be included in the budget.

Town Manager Grady Miller said the proposed budget does include two rounds of staff salary increases for the coming year. Those are included at 2.5 percent each in July and again in January (2019). Miller said he will not be recommending any staff salary increases for the following fiscal year (2019/2020).

The budget proposal includes only one additional part-time staff position for information technology support.

The budget proposal also includes about $200,000 to begin Phase I of a five-year plan for improvements to Four Peaks Park. The overall facility is considered outdated and not serving the needs of the neighborhood as it should. (See separate story.)

The proposed budget includes $4.1 million in capital projects including design work for Shea Boulevard widening, Fountain Hills Boulevard shoulder paving, sidewalk completion and contingency.

Breaking down the budget plan by core services from all funds it includes public safety, $8.1 million; general government, $2.1 million; administration, $2.9 million; public works, $1 million; development services, $1 million; community services, $2.5 million; excise tax for funding downtown, economic development and tourism, $544,955; special revenue funds (capital, streets, environmental), $11.5 million; debt service, $2.7 million; and capital, $6.2 million.

The budget was prepared based on a flat trend analysis for revenue increases. A modest increase in state shared revenues is anticipated, building permit activity includes Adero Canyon and FireRock development. Additional priority staffing levels are considered based on necessity.

Projections do not presume development on the State Trust Land within the next five years.

There were contract increases for the Maricopa County Sheriff’s Office (10.1 percent) and Rural/Metro (3 percent).

The budget process allows for a public review period of the tentative proposal before final consideration by the council. There is a budget outline published in this edition of The Times with public notices. The entire budget document is posted to the town’s website, fh.az.gov, and is available for public inspection at Town Hall.

The council will hold a special meeting with a public hearing for comment prior to final consideration on Tuesday, June 5, at about 5:30 p.m.