For the coming fiscal year, Tempe estimates a total city budget of $1.58 billion along with the three bond questions to be considered for a total of $581.5 million.
Tempe City Council heard about the city’s annual financial program as part of the fiscal year 2024-25 budget review session at the council’s April 18 work study.
Chief Deputy City Manager Tom Duensing and Financial Services Director Lisette Camacho led the presentation, providing information about Tempe’s Annual Financial Program and the recommended operation and capital improvements budget.
The city is recommending a total budget of $1,578,443,397, with an operating budget of $816,553,552 and a capital improvements budget of $761,889,845.
As explained in a city staff report, the FY 2024-25 budget is a 17% — or $229.8 million — increase from the previous year, with increases for this year due to “Capital Improvements Program acceleration programs, increases in potential grants, and increased personnel and other operating costs.”
Council expressed its support for moving forward with the recommended operating and capital budgets and is scheduled to vote on the final budget at a coming meeting.
Duensing also touched on the staff recommendation for three ballot questions in the November election that would enhance public safety and roadway improvements, improve quality of life in neighborhoods, and increase the supply of affordable housing.
Budget in-depth
Starting the presentation, Duensing briefly discussed the planning process that the city takes in developing the city’s operating and capital improvements budgets.
“We’ve got a very robust public outreach process in our budget, and overall the message is we are maintaining our service levels,” Duensing said.
He did note that one of the unfortunate things that has impacted the budget was the passing of the residential rental tax ban, resulting in the city losing about $21 million in revenue citywide. But, Duensing has previously addressed this issue, saying that Tempe will be more conservative with managing its general fund.
Since January, the city has been in development of its budget, with public forums held in February and March. Currently, tentative adoption is scheduled for May 21 and final adoption is anticipated on June 6.
In their public outreach, Camacho said the most important priorities from residents are quality of life, safe and secure communities, financial stability and vitality, sustainable growth and development, and strong community connections.
As for specific services, residents were interested in park improvements, fire and medical rescue investments, homeless services and maintaining city streets and sidewalks.
For the coming year, general funds highlights included the maintaining of service levels even with the rental tax loss, but Duensing mentioned that the city has a few supplemental requests that staff are still recommending approval.
Budget supplemental requests in the general fund would support new software for the Real Time Operations Center and a contractual agreement to staff a new fire station in the NOVUS Innovation Corridor.
As for the capital improvements budget, highlights included improvements to water and wastewater infrastructure, historic preservation efforts, affordable housing efforts and a new North Tempe police facility.
Discussing the tentative bond questions, Duensing explained that previously there were five general bond categories on the ballot that were consolidated into three for clarity.
The recommended categories are to enhance community through public safety and roadway improvements, improve quality of life in Tempe neighborhoods and increase supply of affordable housing.
“This is a monumental effort and it’s a monumental effort when there are pressures to address issues in the public, but the resources are limited,” Duensing said.
In each category, the city would seek $12.3 million for historic preservation, $180 million for restoring all Tempe streets and $32 million to accelerate affordable housing, according to the city's website. Staff is seeking city council approval of these bond questions at the April 25 council meeting.
Reporter Caroline Yu can be reached at cyu@iniusa.org. To voice your opinion on this story, connect with us at AzOpinions@iniusa.org.
Meet Caroline Caroline Yu joined Independent Newsmedia, Inc., USA, in 2020 as a summer intern covering Scottsdale. As an intern, she continued her coverage of Scottsdale, Paradise Valley and Tempe. After graduating in 2022, Caroline became a full-time reporter for Scottsdale and Paradise Valley. She is currently reporting for the Tempe market.
Community: She is a supporter of the environment and tries to get involved with related community events.
Education: Arizona State University with a BA in Journalism and Mass Communications, with a minor in French.
Random Fact: She used to be a ballet dancer for 10 years.
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