The public got its first chance to comment on a $44.8 million budget proposal for the Town of Fountain Hills last week, and while there was little in the way of public comment, Town Manager Ken Buchanan laid out the fiscal plan for the 2014-15 year.

The plan is highlighted by a $13.7 million General Fund budget and more than $22.2 million in proposed capital projects.

There is also no revenue shortfall projected with this budget plan.

During discussion with the public, resident Gene Slechta, who is currently a member of the Planning and Zoning Commission and a former town employee, asked Buchanan about the town’s ability to sustain operations long-term without new revenue.

Slechta particularly wondered whether it is time to review the current sales tax structure.

Buchanan noted that there is some improvement in the revenue picture.

He said that local sales tax revenue has returned to pre-recession levels for the first time. He also said there are portions of the sales tax revenue that are dedicated to revenue bonds that will be paid off over the next few years, freeing that revenue for other uses over the long term.

Highlights

During the past fiscal year the Town Council adopted an economic development plan and a part-time economic development specialist was hired to begin implementation.

There is $382,000 in the proposed budget for economic development operations.

There is a $2 million budget for development services, an area that oversees infrastructure operation and maintenance for the town.

This includes planning and development services for the public as well as code enforcement and inspection.

Engineering also falls into this category.

Roughly half of the town’s Highway User Revenue Fund (HURF) monies are used in maintenance and repair. The HURF budget is proposed to be $2.4 million and covers all street operations.

The town implemented a pavement management program last year to address deteriorating streets. There is $1 million allocated to the program this coming fiscal year.

The town’s public safety contracts will increase a total of $400,000 with the new budget. The proposal includes $3.4 million for Rural/Metro to provide fire and emergency medical services and $3.4 million to the Maricopa County Sheriff’s Office for law enforcement services.

Public safety expenditures continue to be roughly half of the town’s General Fund budget.

Buchanan said despite the increases this year he believes the contracts continue to be a great bargain for the town.

In response to a resident’s question, Buchanan said the community service contracts with the Fountain Hills Theater, Boys & Girls Club and Extended Hands Food Bank are included in the budget plan.

The proposal reduces all of those allocations by 20 percent. It is the second consecutive year this funding has been cut by 20 percent.

That plan would provide $56,000 for the theater, $51,000 for the Boys & Girls Club and $19,000 for the food bank.

The Sheriff’s Posse is included as part of this funding program at $15,000.

Capital projects

With the approval of an $8.2 million general obligation bond for reconstruction of Saguaro Boulevard, the town has proposed a capital budget that totals more than $22 million, much of it in street projects.

Besides Saguaro, which is expected to begin late this calendar year, the town is also looking at a pavement upgrade for the section of Shea Boulevard between the town’s east boundary and Technology Drive.

That work is expected to begin over the summer and most of the money is grant funding.

The town is also working with the Maricopa County Flood Control District to upgrade the Ashbrook Wash crossings at Saguaro Boulevard and Bayfield Drive and channel the wash between Bayfield and Del Cambre Avenue.

This $1.6 million project is using a grant from the Flood Control District. Work will be coordinated with the Saguaro reconstruction.

There is also a plan to begin an additional $1.6 million in improvements at Fountain Park, and the Avenue median upgrades are set to begin.

The proposal to relocate Fire Station No. 2 is included in this budget at $2.5 million, although it is unclear when the project will move ahead.

The town will include projects in the capital improvement budget when there is any chance some money will be spent for the project during the fiscal year. If the money is not in the budget it cannot be spent.

The Town Council is scheduled to go over the budget plan during a series of work study sessions early next week.

The meetings are scheduled for Monday through Wednesday, April 28-30.

The Tuesday and Wednesday sessions are scheduled “as needed.”

The budget plan will be before the council at its May 1 meeting for preliminary approval. These workshops are open to the public.

Final approval along with a public hearing is set for June.