Crediting better-than-expected 2021 revenues, Tempe’s new budget features $120M in extra funding compared to last year.
Construction and infrastructure make up 40% of total spending, which City officials say reflect Tempe’s long-term goals.
Almost $400M worth of infrastructure improvements are planned, and another $61M has been set aside for projects from last year that were delayed by supply chain shortages and other issues. The $461M capital improvements total is roughly $125M more than Tempe spent on construction last year. Of that $125M, roughly $64M is carried over from last year because of delays in planned projects.
Even though they do not foresee new issues arising, officials also placed $40M in the emergency fund as a hedge against inflation and other potential impacts on municipal services.
Among the projects planned for this year are a new $37M Municipal Operations Center and $14M in upgrades to Clark Park. A new fire station had been planned for 2021 but was delayed by staffing and supply chain problems. Fire Station No. 2 is now planned to start construction in January.
City staff is revising project plans to incrementally reduce the construction backlog. (Source)