By Rebekah Morris for AZBEX
The City of Scottsdale continues to direct much-needed funding to capital programs after years of under-investment in public assets.
City voters approved a $319M bond measure in 2019, providing funding for capital projects such as fire stations, police stations and the Civic Center Plaza. Since the bond measures have passed, the City has moved quickly to deliver the promised projects, with wide-ranging improvements coming to nearly every part of town.
The five-year total now sits at $2.033B, a whopping 78.03% increase YOY. In addition to bond funding, the City is realizing the benefit of federal stimulus funds and dedicating these one-time revenues into one-time expenses such as capital improvements.
Voter Refusals put Pressure on Municipal Budget
Voters in Scottsdale have always been vocal and mobilized to oppose initiatives they do not like. Voters denied City requests for general obligation bonds in 2013 for the second time in four years. With the lack of bond financing, the City was forced to redirect general fund monies to capital projects. Scottsdale was the only city that was more reliant on general fund dollars than on bond monies for capital projects.
Departments that were funded by regional transportation sales tax measures and enterprise funds were not as impacted by the lack of voter support. These departments include Drainage/Flood Control, Transportation and Water/Wastewater.
In FY 2022 – 2023, funding sources more closely match other cities in the region, with Enterprise Funds and Enterprise Revenue bonds providing 43.5% of all capital funding, Transportation Funds securing 22.9% of funds, GO Bonds chipping in 15.3%, and the General Fund allocations coming in at a more modest 8.5%.
Funding Provides for a Wide Range of Projects
In this year’s CIP document, investment in capital assets continues, with projects for the following departments:
- Community Facilities,
- Drainage/Flood Control,
- Preservation,
- Public Safety,
- Service Facilities,
- Transportation and
- Water Management.
Scottsdale’s population is growing more slowly than other nearby cities, in large part due to high housing prices and a lack of new housing supply being able to support new residents. While the state as a whole grew by approximately 1.5% in 2021, Scottsdale realized only a 0.7% gain. That means less funding for Scottsdale under many state-shared revenues and formula-based funding mechanisms.
Notable Projects for Scottsdale
Some of the notable projects and costs in this year’s CIP for Scottsdale include:
- SROG Regional Wastewater Facilities, $60.7M;
- CAP WTP Expansion, $50M;
- Pima Road: Pinnacle Peak to Happy Valley, $36M;
- Reata Wash Flood Control, $35M;
- Civic Center Plaza, $30M;
- Raintree Drive: Scottsdale Road to Hayden Road, $28.6M;
- Desert Mountain Water Supply, $28M, and
- Pima Road: Las Piedras to Stagecoach Pass, $26M.
