4.1.2.b Expenditures Discussion

To ensure Surprise maintains a sustainable budget it is necessary to review what the city funds, as well as analyze the desired amount to be spent on services and maintenance. Currently Surprise offers expected services such as trash, police, fire, and limited service on amenities such as recycling and recreation. To become a truly full service city, Surprise must begin to research expenses for expanded recreation opportunities and services, as well as analyzing timing on these expenditures.

As new and expanded services are desired by residents, the city must review the total costs and determine future budgetary needs related to the services before implementing them. In determining associated costs the city must look at location, construction costs, timing, phasing, and Inflation. Locations for new services should be decided through desired level of services, under-served communities, and the amount of use the service will garner in the location. Once all issues of cost, location, and unforeseen hurdles have been determined as best possible, only then should the new or expanded service be brought forward to a Capital Improvement Project (CIP) budget. The project must then be looked at to determine its level of importance compared with other projects on the list. Factors in determining a level of importance should be: length of time it has been on the CIP budget, time to completion, cost of completion, safety, and importance to residents.

It is also important to keep in mind that not all new or expanded services can be provided by the city. In some cases analysis of costs may determine that a private service provider can establish the service at a lower cost to the city than having the city provide the service on its own. Some examples of this may be libraries (currently under contract with Maricopa County), fitness centers such as a YMCA, and waste services like recycling and hazardous waste disposal. In other cases the service may be in high demand by residents but can not be placed into city expenditures due to its nature.

Examples of this are federal and state projects like freeways and military expansions.

As the city continues to grow determinations will have to be made on how the city will acquire or purchase what is necessary to create a full service city. Some of the items that budgets typically consider are land, manpower, equipment, facilities, buildings, and maintenance.

Land

The city of Surprise has many methods to acquire land for the purpose of public development. The most common method of acquiring land for the city is through entitlements. When a developer applies for entitlement (zoning, subdivision, etc.) it will be required to provide property for civic needs (schools, fire stations, streets, etc.). The city may also purchase or negotiate for land directly as required. Land purchases may be made to provide space for required services or for preservation of open space. These first two methods are attempted before any consideration of the final method, eminent domain. In a recent Supreme Court case , it was decided that eminent domain could be used to acquire land for the purpose of economic development. For the city of Surprise eminent domain is a last resort to be used only for the development of roads, utilities, and direct public services. Eminent domain still requires compensation from the city after the acquisition of the land.

Buildings, Facilities and Utilities

Public buildings are usually paid for by the city, potentially with some share paid by the developer. For roadway and utility improvements this is often provided entirely by the developer at the location being developed. In locations with no ongoing development, improvements must be budgeted and paid for by the city. In the case of private utilities (phone, cable, power) the cost is paid entirely by the provider or agreements are made between the developer and the provider for service. School districts within the Surprise Planning Area are provided the opportunity to work with developers for funding and land agreements to aid in the construction of new facilities and hiring of additional staff.

Equipment and Labor

New equipment and labor needs are paid for by the city of Surprise and may have some share paid by the developer. These items are most often funded through impact fees and grants. In the case of school districts manpower is a shortage problem across Arizona. The city of Surprise works with the districts to provide the opportunity to create agreements between the districts and the developers.