Gilbert's proposed budget crosses $2 billion

By Tom Blodgett
Mail |
Twitter: @sp_blodgett

The town of Gilbert’s fiscal year 2023-24 budget proposal crosses the $2 billion threshold for the first time — five years after first going over $1 billion and nearly $379 million more than the current budget. 

But Gilbert’s budgets come with a caveat. They include all the money set aside for future capital improvement projects, not just what the town will spend in the coming fiscal year. The CIP budget line makes up two-thirds of the total budget. 

The $2.05 billion budget proposal was the subject of a Gilbert Town Council study session April 18. Budget Director Kelly Pfost presented the details to council. It goes before council for preliminary approval in May and final approval in June. 

While the tax levy increases $2 million to $31.5 million, the secondary property tax rate, which repays voter-approved bonds, remains generally flat at $0.99 per $100 assessed valuation, even decreasing slightly when figured out to hundredths of a cent at $0.9883. 

Council Member Jim Torgeson asked about a further slight decrease in the property tax rate to $0.98 per $100 assessed valuation. 

“Since it (the tax levy) has gone up,” Torgeson said, “can we get a minor win for our residents and go down $0.0883 (on the tax rate) to just $0.98 or flat instead of $0.9883, just a minor, tiny win for the people? Can I have that? Is it possible?” 

Pfost said the town could look at that, but it would mean a smaller fund balance for paying back debt from the voter-approved bonds. By state law, the town is allowed to keep up to 10% of the fund in reserve to protect against revenue shortages from delinquencies. Council policy is to keep at least 5% in reserve, and Pfost said the fund is about $1 million short of what is expected at present. 

Mayor Brigette Peterson cautioned that lowering the rate could potentially lead to needing to increase it later if the town finds itself short of the money needed to repay the debt. She compared it to when the town cut utility rates a few years ago but now has been forced to make a number of increases after the pandemic as those funds are running short. 

“That becomes an issue, and nobody remembers when you lower them (rates), but they all remember when their bill goes up, and so that's a very difficult position to be in,” she said. 

The proposed general fund budget is $272.63 million, an increase of $28.27 million. The town uses the previous year’s revenue collections to forecast revenues for the general fund, keeping the projection flat though the revenues generally grow. 

From the general fund, the town is proposing adding 30.98 positions, including nine in the police department and 5.48 in fire and rescue. 

Council Member Yung Koprowski asked Pfost about only $5 million being set aside in CIP money for a possible police crime lab. Pfost said it represented only the design portion and that council directed the construction portion be removed from budget last year as a lab had not been approved. Koprowski expressed a desire for the construction portion to be added in again as a placeholder. 

Tom Blodgett
Senior News Editor | Gilbert
@sp_blodgett

tblodgett@iniusa.org

Meet Tom
Tom Blodgett joined Independent Newsmedia, Inc., USA, in 2022, when the company acquired Community Impact Newspaper's Phoenix-area properties. Raised in Arizona, he has spent more than 35 years in journalism in the state.

Community: He has served as an instructional professional in the Walter Cronkite School of Journalism and Mass Communication since 2005, and is editorial adviser to The State Press, the university's independent student media outlet. He also is director of operations for an 18U girls fastpitch softball team from Gilbert.

Education: Arizona State University with a BS in Journalism. 

Random Fact: He lived in Belgium during his freshman year of high school.  

Hobbies: Tweeting enthusiastically about ASU softball (season-ticket holder) and grumpily about other local sports (pessimistic fan).