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It may only be the start of 2020, but city of Surprise department heads have already been thinking about 2021.
And they started in 2019.
Because fiscal years are ahead of the calendar years — and planning for those fiscal years takes time — the city is a full year ahead of next calendar year.
Leaders from the Finance Department kicked off the fiscal year 2021 budget season in front of the City Council Jan. 21 with a “dry budget conversation,” joked assistant finance director Holly Osborn.
“We were going to start with a little song and dance,” she playfully added before the presentation, “But City Manager [Mike] Frazier wouldn’t participate.”
Laughter aside, the city’s number-crunchers are getting to work in what is their magic time of the year.
The growing city continues to see a rising budget, with last year’s $412.7 million the biggest the city has ever had. The next few months are leading up to adopting a final budget by June, to go in effect July 1.
“All of the budget process is really used as a communication device with the city and the city council and to our residents,” Ms. Osborn said. “So, we make sure we are as transparent with the way we alocate our dollars as we can be — what we can afford and what we cannot afford.”
Departments have been pouring over their own individual budgets to assess its needs since October. It’s the beginning portion of a process to put together a recommended budget by the second City Council meeting of April.
A recommended budget isn’t required by the state, Ms. Osborn said. But it’s a good guide for the city departments and residents to see a rough draft of where money is going.
The city will present a department-by-department breakdown of funding needs at City Council meetings in February and March.
Finance Director Andrea Davis said the council will hear the funding plan for capital and asset replacement on Feb. 4.
“We’re continuing to grow, but we’re also continuing to age,” Ms. Davis said. “So we really need to focus on making sure we’re taking care of what we have, what was already in place to sustain in a beautiful community but also look at that growth and manage both of them.”
The budget process will also include levying the property tax rate.
District 1 City Councilman Roland Winters said he always gets complaints from constituents who think the city is raising the primary tax rate even when it stays the same like last year.
That’s because the city has no control over the property valuations that figure into the calculations.
“Get ready to be bombarded again,” Mr. Winters said.
Ms. Osborn said for every dollar of a property tax bill, more than 66 cents goes to schools and education, 13 cents goes to the county, and Surprise takes 7.2 cents for its primary rate and fiyr cents for it seconary rate.
“When you’re looking at your property tax bill, a lot of people assume that’s going to the city,” Ms. Osborn said. “That’s not the case.”
Editor’s Note: Jason Stone can be reached at jstone@newszap.com. Visit yourvalley.net.
Former NAU Lumberjack who loves going to concerts (or I did), watching sports (or I did) and hanging out with friends (oh, never mind). I also enjoy backgammon, surfing and men who are not afraid to cry.
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