By Richard Smith
Independent Newsmedia

The Surprise City Council set the ceiling for the city’s fiscal year 2018 budget during its May 2 meeting.

While the total tentative budget of $336.9 million was approved unanimously, the number to keep in mind is the $276.2 million expenditure budget. The total budget can amount before its approval in June if more fund transfers are approved.

But the expenditure amount approved at the meeting is the city’s ceiling in actual budget spending.

For comparison’s sake, the total budget amount approved for fiscal year 2017 is $325.9 million. The small year-over-year increase is in part due to less surplus funds this year and the need to spend $3 million more on the revamped public safety pension fund.

“This is a tough year for us. This is the year we have to swallow that pension change,” Councilman Ken Remley said May 2.

Before last week’s meeting seven of 13 new full time positions proposed in this budget are covered either by grant funding, required by changes, an extension of hours for a former part time job or offset by other budget reductions.

The only new jobs attributable to the city’s initiative — six in total — are tied to the addition of a third city ambulance service, this one at at Fire Station 303 at Greenway Road and Cotton Lane.

A new job description was among several tweaks from the city manager’s recommended budget unveiled in April.

The changes include:

• In all, operating expenses increased by $3.5 million, while contingency funds decreased $3.1 million. Those changes caused a $400,000 increase from the $336.5 million city manager’s recommended budget.

• $175,000 of those expenses are set aside for the following: Converting a communications specialist position from part time to full time, increased spending in the Fighter Country partnership, carry forward for Surprise’s Fire Prevention vehicle and Library Feasibility Study, and a decrease in operating capital for vehicles.

• A carry forward of $953,800 in the Neighborhood Revitalization grant money.

• Programmed development impact fees of $466,500.

• Transfers out of the General Fund were reduced by $778,000 because Highway User Revenue Funds will cover that amount in pavement preservation.

• Increased spending internal service funds $1,700,500, related to an expected increase in claims in the Employee Healthcare, Risk Management, and Workers’ Compensation funds.

• Nearly all cuts in contingency funding are related to increasing the reserves in the water, sewer, solid waste, and stormwater utilities.

While this budget creeps closer to its final approval June 6, this budget process and the constraints it was made under will continue. City Manager Bob Wingenroth said the city put together a conservative five-year financial plan.

Surprise does not have a structural deficit and still has two months of reserve funding (a bit more than $18 million) set aside. But some funding sources are drying up and the city plans to have some long-term budgeting discussions later this year.

“I’m glad we’re going to take a strategic look at other revenues this fall,” Vice Mayor Todd Tande said.