Digesting the New Paradise Valley Budget: What You Should Know

Photo Credit: paradisevalley.gov

Paradise Valley’s Town Council has unanimously approved a final $68.7 million budget for the upcoming fiscal year, a notable turnaround from April’s contentious 5-2 tentative vote. The final budget was adopted at the May 14 meeting. It covers a fiscal year that begins in July.

It’s a Significant Jump

The approved budget is 12.1% higher than the current fiscal year’s $61.3 million. The expenditure limit comes in at $48.2 million, up from this year’s $46.9 million. Excluded expenditures, including grants, investment earnings, and debt service, total more than $20.7 million: a notable jump from $14.4 million this year. The contingency fund also grows, from $3.6 million to $5.5 million.

What Broke the Logjam

The April vote was 5-2, with Council Members Scott Moore and Anna Thomasson dissenting. Their objection centered on a single administrative position, a holdover from the era when the town employed an in-house attorney, that had been reassigned without a fully defined job description. Council Member Julie Pace resolved it at the May 14 meeting by motioning to eliminate the position entirely. She noted she had tried to do the same in April but was cut off during a remote connection. The position carried a salary and benefits cost of roughly $97,000.

Roads and Drainage Are Getting Major Investment

The biggest capital project is the long-planned Mockingbird Lane corridor improvement between 56th Street and Invergordon Road. Total project cost exceeds $17.5 million. The town covers more than $3.5 million in road work and $5.8 million in drainage costs. The Flood Control District of Maricopa County picks up nearly $8 million of the drainage tab. Overall, capital spending climbs to $15.9 million, up from $10.1 million this year.

Employees Are Getting Raises, With a Delayed Component

The budget includes an 8% total compensation adjustment: a 3% cost-of-living increase plus 5% in merit and market pay. The 3% adjustment and 2% of the merit pay take effect when the new fiscal year begins. The remaining 3% of merit pay is deferred six months. That phased schedule trimmed nearly $226,000 from the final budget. Council Member Ellen Andeen-Keller, who is not seeking reelection, suggested future merit increases be tied to customer satisfaction surveys.

All in all, most issues were resolved and critiques incorporated before the final vote. Most notable would be the relative lack of contention and squabbles, something that can’t be said about its neighbor to the east, Scottsdale.