FY 2026-27 Preliminary Budget Packet by Town of Chino Valley, AZ

Town of Chino Valley

Preliminary Budget Packet

FY 2026-27

Base Summary Budget

FY 2026-27 Budget Summary - Base

Analysis

The table above presents the base budget summary by fund and by type of expenditure, including personnel, operating, one-time operating, minor capital, major capital, debt, contingency, and interfund transfers. These categories collectively illustrate how the Town’s financial resources are allocated for the fiscal year, assuming no changes are approved for supplemental budget requests.

Overall, this results in a base budget of $36,581,813 for FY 2026-27. When compared to the FY 2025-26 budget of $49,409,921, this represents a decrease of $12,828,108 Each of the sections in the preliminary budget packet includes a detailed explanation of the year-over-year variances. These sections identify the specific factors contributing to the changes within each expenditure type, such as reductions in staffing costs, lower operating needs, and completion of capital investments.

Summary Budget Requests

FY 2026-27 Summary Budget Requests

Recommendation

The Town Manager recommends that the requests outlined in the preceding table proceed through the formal budget process for further evaluation and potential inclusion in the final adopted budget. The total cost of the recommended items amounts to $6,353,175, with the following breakdown by fund:

• General Fund: $852,240

• General Capital Improvement: $452,959

• HURF: $(39,996)

• Streets Capital Improvement: $2,000,000

• Grant Fund: $2,864,448

• Capital Asset Replacement Fund: $180,000

• Water Fund: $34,762

• Water Capital Improvement: $0

• Wastewater Fund: $8,762

• Wastewater Capital Improvement: $0

In addition to the recommended items, the contingency line is proposed at $908,000, which reflects an updated calculation based on 5% of the combined General Fund and HURF budgets. Contingency funds in the Water Fund and Wastewater Fund are proposed at $39,000 and $58,000, respectively. Furthermore, interfund transfers are projected to total $2,713,802, supporting debt service and the streets capital improvement fund.

In total, the proposed expenditures for the upcoming fiscal year represent a decrease of $4,934,933 when compared to the FY 2025-26 adopted budget of $49,409,921. This reduction underscores the Town’s continued commitment to fiscal responsibility, cost containment, and prioritization of projects.

Summary Budget Including Recommendations

FY 2026-27 Budget Summary - With Recommendations

Base Net Budget

FY 2026-27 Net Budget - Base

Analysis

The table above presents the base net budget summary by fund, assuming no supplemental budget requests are approved. This summary reflects the estimated difference between revenues and expenditures for each fund and provides an overview of the Town’s financial position. While most funds show revenues exceeding expenditures for ongoing operations, the Cemetery Fund and Wastewater Fund are projected to operate at a deficit.

In developing the base net budget, tax revenue projections were estimated at 1% growth. This conservative assumption is intended to align revenue estimates with recent trends and reduce the risk of overestimating available resources. However, there remains some uncertainty regarding revenue performance, particularly as future growth will depend on attracting new businesses and generating additional transaction privilege tax (TPT) revenue.

Although several funds maintain positive net positions, ongoing monitoring will be important, particularly for funds with projected deficits or increasing capital demands, such as Wastewater. The budget reflects an effort to balance available resources with operational and capital needs while maintaining fiscal stability

Net Budget Including Recommendations

FY 2026-27 Net Budget - With Recommendations

Recommendation

If the recommended changes are incorporated into the net budget summary by fund, the revised budget reflects a strategic use of fund balance in several key areas, including the General Fund, General Capital Improvement Fund, Highway User Revenue Fund (HURF), Streets Capital Improvement Fund, Capital Asset Replacement Fund, and Court Fund. These planned draws on reserves are intentional and support targeted investments in infrastructure, capital projects, and service enhancements that align with long-term organizational priorities. Importantly, even with these draws, all estimated ending cash balances remain positive, demonstrating sufficient reserve levels to support current and future needs.

The only exception continues to be the Wastewater Fund, which has carried a negative balance for several years. Ongoing investments and operational improvements in recent years started to improve the financial position, but the debt service payments for the large WIFA loan for the Water Reclamation Facility improvements will negatively impact the health of the fund.

Personnel Expenditure Summary - Base

Analysis

The personnel base budget for FY 2026-27 represents the amount allocated, assuming no changes are made to the current staffing structure. This budget reflects a 0.4% increase, or $50,984, compared to last year’s personnel budget, primarily due to health premium changes and individual employee insurance selections, offset by changes in PSPRS contribution rates. Below are the key factors contributing to the changes:

• Town-wide: Health insurance premiums for the Town increased by 19% across all plan types, with dental premiums increasing by 10% and vision premiums by 2%. In prior years, the Town absorbed the majority of these increases; however, for this year, costs will be more evenly shared between the employer and employees.

Additionally, a revised cost-sharing structure has been implemented. Employee-only coverage under the Basic Plan will remain fully covered by the Town, while employees selecting the High-Deductible Health Plan or a Premium Plan will be responsible for a portion of the premium cost.

• Community Services: Reduction of the seasonal budget for Aquatics to more closely align with the actual cost of the prior year

• Police: The FY 2026-27 retirement rate for sworn personnel is set to decrease by approximately 4% in Tier 1 and 2 and 3% for Tier 3. Additionally, overtime was reviewed and budgeted more precisely based on actual utilization.

Recent discussions with Council have also included considerations related to staffing levels, red-circle rates, and the methodology utilized for conducting salary studies. These items are addressed in detail within the appendix section of this packet, along with the FY 2026–27 Recommended Personnel Schedule and Salary Ranges.

The appendix includes the following supporting documents:

Appendix A: Memorandum to the Town Manager comparing staffing levels to population from 2007 through 2025

Appendix B: Red Circle Compensation Policy

Appendix C: Public Sector Survey Decision Matrix

Appendix D: FY 2026–27 Preliminary Personnel Schedule and Salary Ranges

Budget Requests

Personnel Request Summary

- 3%

Police Officers/Sergeants/Lieutenants

Senior Police Services Specialist (Records)

Reclassification of Police Services Specialist

Police

Partially Recommended

Not Recommended

Third-Party Request

Recommendation

The Town Manager recommends that the requests marked with green check marks proceed through the budget process. These recommendations will not add any new staff but will instead focus on retention of current staff. The recommendation also includes freezing three vacant positions for FY 2026-27. The FTEs for those positions will not be removed, but funds will not be budgeted. In FY 2027-28, these positions will be re-evaluated and potentially re-budgeted.

The total fiscal impact of the recommended items is $173,269, with the following breakdown by fund:

• General Fund: $212,695

• Grant Fund: $1,523 (PANT Grant); $1,523 (Smart and Safe)

• HURF: $(59,996)

• Water/Wastewater: $17,524

The $50,984 increase identified in the base budget, along with the inclusion of $173,269 in recommended items, results in a total personnel budget of $13,886,284. This represents an increase of $224,253, or 1.6%, compared to the previous year’s budget of $13,662,031.

Personnel Expenditure Summary - With Recommendations

Town-Wide

Summary: Reason/Justification:

COLA – 2% Fund(s):

88.6% General

5.2%

1.0%

2.6%

Estimated Impact:

$224,294

Estimated Impact: $110,113

Merit – Up to 1% - Over Max Fund(s): 100% General Estimated Impact: $3,181

Budget Request Details

A 2% Cost of Living Adjustment (COLA) is being proposed to help employees keep pace with the rising cost of living. Inflation has had an impact on everyday expenses such as housing, utilities, groceries, transportation, and healthcare. This adjustment is necessary to ensure that employees’ purchasing power is maintained, as inflation erodes the value of their wages over time. As of February, CPI rose 2.4% over the last 12 months. The salary ranges will be adjusted by the approved COLA for FY 2026-27 and the 2% for the prior year as they were not adjusted to match the FY 2025-26 COLA as is usually done

Red-Circle Impact: Employees whose compensation exceeds the maximum of their salary range will not be eligible for a COLA. Employees whose compensation would exceed the maximum of their salary range as a result of a full COLA may receive a reduced adjustment, not to exceed the range maximum.

Note: This request is recommended $224,294

A merit-based increase of up to 1% is being proposed to incentivize individual performance This increase is designed to reward employees who consistently demonstrate exceptional work, align with the organization’s goals, and surpass expectations. Employees who meet or exceed the minimum performance standards for their position would be eligible for the 1% merit increase Employees who do not meet the minimum performance standards for their position will not be eligible for any merit increase.

Red-Circle Impact: Employees whose compensation exceeds the maximum of their salary range are not eligible for base merit increases but may be considered for an over-max merit, subject to Council approval. Employees whose compensation would exceed the maximum range due to a merit increase may receive a reduced increase up to the maximum, with any remaining amount eligible as an over-max merit, subject to Council approval.

Note: This request is recommended. $110,113

Four employees are projected to exceed the maximum of their assigned salary ranges. This is the first year the Town will be implementing a structured approach to limit compensation within established ranges; in prior years, employees were allowed to exceed the maximum.

In recognition of their performance and contributions, a one-time merit payment is proposed for these individuals as long as they meet or exceed the minimum performance standards for their position. This payment will be provided as a lump sum and will not be added to base salary or carried forward into future years. This approach allows the Town to acknowledge

$3,181

One-Time, does not increase base pay

N/A

One-Time: N/A

On-Going: N/A

Summary: Reason/Justification:

employee performance while maintaining the integrity of the established compensation structure moving forward.

Note: This request is recommended.

Positions to Freeze Fund(s):

73.5% General

26.5% HURF

Estimated Impact: $(292,597)

Development

It is recommended that three vacant positions (Plans Examiner, Police Officer, and Streets Maintenance Worker) are frozen for FY 2026–27. While the associated FTEs will be retained, no funding will be budgeted for these positions during the fiscal year. This approach provides greater flexibility than permanently eliminating the positions.

The frozen positions will be re-evaluated in FY 2027–28 and may be reconsidered for funding at that time.

Note: This request is recommended.

Services

Summary: Reason/Justification:

Senior Code Enforcement Officer

Type:

Reclassification Fund(s):

100% General Estimated Impact:

$7,338

Code Enforcement workload has increased significantly in both volume and complexity, with cases rising 35.9% and inspections increasing 53.2%. Cases now require more follow-up and staff time, reflected in higher inspections per case and an increase in high-touch cases from 63% to 80%. Workload has also shifted to a more consistent, year-round demand, increasing the need for daily coordination and oversight.

Currently, without a field-level supervisor, routine decisions and coordination are being elevated to the Assistant Director, creating inefficiencies and an unsustainable structure. Reclassifying a Code Enforcement Officer position to a Senior Code Enforcement Officer will provide a supervisory role with day-to-day oversight, improve workload management and consistency, and allow issues to be resolved at the field level. This will enhance efficiency, accountability, and program effectiveness, while freeing up approximately 25% of the Assistant Director’s time and supporting career development and succession planning. maintaining consistent, defensible enforcement in the field and through the courts.

Note: This request is recommended

$(292,597) One-Time: N/A

N/A

$7,338 One-Time: N/A On-Going: N/A

Police

Summary: Reason/Justification:

Personnel Cost: Operating Cost: Market

Adjustment – 3%

Fund(s):

100% General

Estimated Impact: $103,018

Recent market trends indicate that neighboring law enforcement agencies have implemented significant pay increases to remain competitive in recruiting and retaining sworn personnel. As a result, maintaining current compensation levels without adjustment places the Town at risk of falling behind the regional market.

To address this, a market adjustment for Police Officers, Sergeants, and Lieutenants is being proposed in addition to COLA and merit increases. This approach helps ensure that compensation remains competitive, supports retention of experienced sworn personnel, and reduces the risk of turnover to higher-paying agencies. Proactively addressing market competitiveness is critical to maintaining staffing levels, operational continuity, and public safety service delivery. The salary ranges for sworn positions will be adjusted by the approved market adjustment for FY 2026-27

Note: This request is recommended. It is also supported by Chief McIntire in conjunction with the freeze of one officer position

Senior Police Services Specialist (Records)

Police Sergeant

Type: Reclassification

Fund(s):

100% General

Estimated Impact: $11,495

This request is to reclassify one Police Service Specialist position to a Senior Police Service Specialist, with no increase to total FTEs. The position will provide dedicated oversight of records management, audits, documentation, and staff support to ensure accuracy, consistency, and adherence to accreditation requirements.

Currently, Records oversight is assigned to the Civilian Operations Supervisor, whose responsibilities span multiple critical functions, limiting the ability to provide consistent, hands-on supervision. This has created challenges in maintaining proactive oversight, quality control, and compliance with ACJIS, statutory requirements, and ALEAP standards. Establishing a senior-level role will improve daily supervision, reduce risk of errors or non-compliance, and strengthen overall operational efficiency and accountability within the Records function.

Note: This request is recommended.

This request is to reclassify one current sworn officer position to a sergeant position. This change does not increase the department’s authorized FTE count.

The department currently has 35 authorized sworn positions, with 32 filled, including 1 Chief, 2 Lieutenants, 5 Sergeants, and 24 line-level officers. Of those officers, 16 are assigned to patrol, 4 to investigations, 2 as School Resource Officers, 1 K-9, and 1 in the academy. As workload and responsibilities continue to grow, the need for stronger first-line supervision has become clear.

Sergeants provide direct oversight, mentoring, and accountability for officers in the field. Currently, they are responsible for large groups of

$103,018 One-Time: N/A

On-Going: N/A

$6,427 One-Time: N/A On-Going: N/A

$11,495 One-Time: N/A On-Going: N/A

Summary:

Reason/Justification:

personnel while also handling administrative duties, which limits their ability to consistently supervise operations and support staff. Adding a 6th Sergeant would reduce span of control, improve communication and accountability, and provide more consistent supervisory presence across patrol and investigations. It would also help balance administrative workload and allow for better focus on training, compliance, and case oversight.

This reclassification will not negatively impact traffic enforcement or patrol staffing levels. The position is being converted from an existing sworn officer role, and improved supervision is expected to enhance overall productivity and enforcement consistency across all functions, including traffic.

Strengthening first-line supervision will improve day-to-day operations, support officer performance, and align with best practices for agencies of similar size.

Note: This request is recommended.

Police OfficerTraffic

Type: Full-time position

Fund(s):

100% General

Estimated Impact: $222,196

Traffic related issues are one of the most frequent calls the PD receives each year. There are approximately 40k vehicles that travel on SR89 through town daily. Our patrol staff conduct traffic stops for observed violations, but their ability to keep up with all the citizens’ complaints has been hindered by an increase in calls for service over the past few years. Our grant funding through GOHS over the past few years has decreased due to not meeting projected goals each year. To form a unit to focus on traffic and collisions, we are asking for 2 additional officers. This addition would help deal with citizens’ complaints and increase our ability to potentially receive more grant funding. It would also help decrease the number of accidents each year and would not short patrol staffing.

The one-time cost includes: A fully equipped vehicle $90,000, portable radio $3,700, taser $1,880, badges $380, duty pistol, optics, and mags $2,020, rifle and mags $1,410, medical supplies $400, body camera mount $700, rifle plate vest $800, flashlight $160, ballistic vest $1,100, keys $45, traffic vest $40, citation book/warning book $50, ID card $10, fingerprint pad $10, and Miranda card/DCS card $10

The on-going cost includes: Uniform allowance $2,000, travel/training/ seminars $1,000, taser cartridges $180, ammunition for pistol and rifle $210, OC spray $30.

Note: This request is not recommended at this time.

$120,061

One-Time: $102,715

On-Going: $3,420

Summary: Reason/Justification:

Type:

Full-time position

Fund(s):

100% General

Estimated Impact:

$136,196

The one-time cost includes: Portable radio $3,700, taser $1,880, badges $380, duty pistol, optics, and mags $2,020, rifle and mags $1,410, medical supplies $400, body camera mount $700, rifle plate vest $800, flashlight $160, ballistic vest $1,100, keys $45, traffic vest $40, citation book/warning book $50, ID card $10, fingerprint pad $10, and Miranda card/DCS card $10. The one-time cost is significantly lower for this position due to one shared car being used between the two positions.

The on-going cost includes: Uniform allowance $2,000, travel/training/ seminars $1,000, taser cartridges $180, ammunition for pistol and rifle $210, OC spray $30.

Note: This request is not recommended at this time. $120,061

The Accreditation Manager (AM) position is vital to ensuring CVPD’s ongoing compliance with ALEAP standards. Accreditation is an active, continuous process that involves updating policies, managing documentation, conducting internal audits, coordinating training, and preparing for assessments. The AM ensures policies reflect current law and best practices, oversees proofs of compliance, and acts as the primary liaison with ALEAP and department leadership. Maintaining accreditation enhances professionalism, accountability, and transparency, while minimizing organizational risk and providing defensible documentation in the event of litigation or critical incidents.

The one-time cost includes: A desktop computer $1,650 and a laptop $2,800.

The on-going cost includes: Uniform allowance $1,000 and travel/ training/ seminars $1,000.

Note: This request is not recommended at this time.

$109,389 One-Time: $4,450 On-Going: $2,000

Public Works - General (Facilities, Fleet, Parks, Engineering)

Summary: Reason/Justification:

Fleet Mechanic

position

General

Estimated Impact: $94,556

North American Fleet Association standards for fleets less than 500 recommends 2-4 technicians, plus 1-3 support staff, 1 supervisor/Forman, and 1 Manager. Staffing calculation using MRU"s (maintenance repair units) shows we currently need 6 mechanics to maintain our fleet. Our labor shortfall is made up currently by all three personnel sharing jobs and responsibilities. Level of service will go down, and asset downtime will go up if we do have adequate staff.

The one-time cost includes: A desktop computer $1,500.

The on-going cost includes: Uniform allowance $900, travel/ training/ seminars $1,000, subscriptions/memberships $75, workspace furniture/ fixtures $300.

Note: This request is not recommended at this time.

Industry standards recommend 8.9 FTE parks employees per 10,000 residents. With a service-area population of 14,050, this equates to a need for approximately 12.5 FTEs, not including county residents who regularly use our facilities. We currently operate with 6 FTEs, less than half of the recommended staffing level. At the same time, cemetery maintenance has been added to daily operations, further increasing workload demands. Each employee maxes out comp time at 40 hours annually, with most reaching 60–80 hours per year. Collectively, this represents approximately 480 additional hours worked beyond regular schedules just to maintain normal service levels. From April through October, staff schedules must be adjusted to cover Monday–Saturday operations, including parks maintenance, recreation requests, and community events. This is our busiest season and places sustained pressure on limited staffing. Our staff perform at an exceptional level, but the current workload is not sustainable. During peak season, employees are operating at capacity with no margin, making it increasingly difficult to maintain service expectations long term.

The one-time cost includes: A desktop computer $1,500, associated computer software $575, and mobile phone $325

The on-going cost includes: Uniform allowance/PPE $500, travel/ training/seminars $500, subscriptions/memberships $235, mobile phone service $615.

Note: This request is not recommended at this time.

$78,521 One-Time: $2,400 On-Going: $1,850

Summary: Reason/Justification:

Personnel Cost: Operating Cost: Senior Custodian

Type: Reclassification

Fund(s):

100% General

Estimated Impact: $2,742

This request is to reclassify a custodian position to a Senior Custodian to include the performance of lead-level responsibilities, including setting daily work priorities, ensuring cleaning standards are met, managing supply inventory, and training new custodial staff.

Note: This request is not recommended at this time.

$2,742 One-Time: N/A

On-Going: N/A

Town of Chino Valley

Operating Expenditure Summary - Base

Analysis

The operating base budget for FY 2026-27 represents the amount allocated assuming no changes are approved for ongoing supplemental budget requests. This budget reflects a decrease of $159,276 or 2.7% compared to last year’s ongoing operating budget of $5,928,023. This is attributed to analysis and review across the departments to align budgets more closely with actual need. The significant changes include:

• Community Services: Of the $137,950 decrease, $128,000 was moved to the Grant fund under Senior Center Nutrition Grant as it is federal funds that are passed through to the Town through NACOG. Not including this decrease, the true reduction for Community Services is $9,950 or 2.8%. This is primarily from decreases in pool maintenance and recreational programs offset by increases in pool chemicals and utilities.

• Development Services: The $32,139 decrease is primarily attributed to a reduction in the abatement budget under professional services.

• Finance: The $9,300 decrease is primarily attributed to a reduction for audit services under professional services as the Municipal Court audit is only every three years.

• Human Resources: The $27,432 decrease is primarily attributed to a reduction in education/tuition reimbursement under travel/training/seminars and a reduction in legal services for PSRB and employment law under professional services

• Mayor and Council: The $3,000 decrease is attributed to the discontinuation of the Paulden Plunge program.

• Non-Departmental: The $18,000 decrease is attributed to the temporary removal of the Yavapai Regional Transit contribution of $17,000 and the CYMPO (now YPlan) contribution of $1,000. The requests from both entities for the upcoming budget are under Requests from Third-Party Organizations which will be discussed with Council as to determine inclusion in the budget.

• Public Works: The $35,680 decrease is attributed to contract and support services, gas and oil, parks maintenance, janitorial and sanitation supplies, small tools/equipment/furniture, and recurring fence maintenance offset by an increase in subscriptions and memberships, water resources consultant, and clothing and uniforms.

• Town Clerk: The $3,000 decrease is attributed to a slight decrease in operating supplies, small tools/equipment/furniture, and clothing and uniforms

• MID: The $11,625 increase is due to the cost of maintaining the landscaping in the Del Sol Maintenance Improvement District. This cost will be passed along to the property owners in the district.

• Water: The $4,400 decrease is primarily due to a decrease in system maintenance and repair to better align with actual cost, offset by an increase in electric cost and merchant fees.

• Wastewater: The $24,500 decrease is primarily due to a decrease in compliance monitoring/testing and equipment to better align with actual cost, offset by an increase in merchant fees

Budget Requests

Operating Request Summary

Recommendation

The Town Manager recommends that the requests marked with green and yellow checkmarks proceed through the budget process. The items that have yellow question marks are not included in the base or recommended budget. Should Council choose to move those items forward, they will be added into the budget. The total impact on the operating budget of the recommended items is $146,939, with the following breakdown by fund:

• General Fund: $135,939

• Water Fund: $11,000

The $159,276 in savings identified in the base budget, along with the inclusion of these recommended items, will result in a slight decrease of $12,337 or 0.2% in the overall Town operating budget compared to the previous year.

It is important to note that the requests from the third-party organizations are not included in the recommended items. The Town Manager has not taken a position on these matters, as they are strictly policy decisions to be determined by the Council. If Council determines to include both requests in the budget, the operating budget including recommended items would be $6,012,303, an increase of $84,280 or 1.4% over the prior year.

Operating Expenditure Summary - With Recommendations

Base Detail Budgets by Department

Community Services Department Summary

Note: The $128,000 reduction in the food purchases line is being reallocated to the grant fund. These funds, received through NACOG, consist of federal dollars and must be tracked within the grant fund to ensure compliance with potential single audit requirements.

Development Services Department Summary

Finance Department Summary

Human Resources Department Summary

Information Technology Services Department Summary

Mayor and Council Department Summary

Municipal Court Department Summary

Non-Departmental Summary

Note: The $1,000 reduction in the CYMPO (now YPlan) line and the $17,000 reduction in the Yavapai Regional Transit line are being removed from the base budget so Council can evaluate the FY 2026-27 requests from both outside agencies.

Police Department Summary

Public Works Department Summary

Public Works - Streets Summary

Public Works - Water Summary

Town of Chino Valley

Public Works - Wastewater Summary

Town Clerk Department Summary

Town Manager Department Summary

Budget Request Details

Information Technology Services

Summary: Reason/Justification:

Software and support contract increases include: Mimecast services (spam filtering, email archiving, large file transfer, and secure email) at $9,700; OnBase document management at $3,000; Microsoft Server OS upgrades at $3,400; CivicPlus maintenance at $500; and social media archiving services at $800.

Note: This request is recommended.

Microsoft has ended support for the Microsoft Deployment Toolkit as of January 2026 which allows for the creation of customized Windows images for the Town's workstations. Chino ITS has used this platform to manage the deployment of new computer systems with software and settings specific to Town's needs. Smart Deploy is an alternative platform to allow us to continue the custom imaging for the Town.

Note: This request is recommended.

Provides a backup copy location for the Town's Veeam Backup repository. This allows for an offsite backup location that is immutable allowing for improved protection against ransomware attacks. This feature set will improve our compliance with the Town's Berkley Risk and Finance audits.

Note: This request is recommended.

$5,000

Adding enhanced security software to the Town's servers to protect against modern security threats. Improves our compliance with added insurance and financial audit requirements.

Note: This request is recommended. $7,000

Trend Micro Intrusion Detection Service

Fund(s):

100% General

Estimated Impact: $20,268

Non-Departmental

Adding enhanced security for network intrusion detection. This will improve the Town's network posture to allow for detection and protection against network based cyberattacks.

Note: This request is not recommended at this time but will be necessary in FY 2027-28.

General Estimated Impact: $50,000

An increase is included in the legal services budget to address anticipated workload associated with public records requests, contract reviews, and potential legal matters related to a referendum.

Note: This request is recommended. $50,000 N/A YPLAN Contribution

Fund(s):

100% General

Estimated Impact:

$76,617

Yavapai Regional Transit Contribution Fund(s):

100% General

Estimated Impact: $20,000

The requested amount of $76,617 reflects the Town’s required annual match for services provided by CYMPO, now operating as Yavapai Planning and Transportation Commission (YPLAN), as outlined in the approved Work Program. This Work Program encompasses the agency’s full scope of planning and transit activities, including recent expansion to incorporate Yavapai Line (formerly Prescott Valley’s transit system).

In prior years, the Town’s contribution was approximately $1,000; however, due to expanded services the required match has increased significantly. A separate request will also be coming to Council to potentially fund the $77,447.35 called out by the Work Program for FY 2025-26.

Note: Requested by third-party organization.

For FY 2025-26, Yavapai Regional Transit received an annual contribution from the Town totaling $20,000 ($17,000 for operations and $3,000 for the Paulden Plunge). The Paulden Plunge has been discontinued and YRT is requesting the full $20,000 be directed at operations for FY 2026-27.

Note: Requested by third-party organization. $20,000

Town of Chino Valley Preliminary Budget

Summary: Reason/Justification:

The annual dispatch contract includes a 2.5% increase. The current year’s cost of $193,271 results in a revised total of $198,227 for the upcoming fiscal year.

General

Estimated Impact: $4,956

Records Request

Note: This request is recommended and is necessary due to the current contract terms.

Impact: $17,073

We are requesting an annual budget allocation of $7,000 to sustain our Junior Cadet Program. Historically, the program has been supported primarily through donations via the Chino Valley Police Foundation; however, contributions and fundraising efforts have become increasingly challenging. While we will continue to pursue donations and fundraising opportunities independent of town funding, we are seeking this alternative funding to ensure the program can continue if donations do not fully cover the annual expenses.

Note: This is being partially recommended for $3,500. The remaining amount requested of $3,500 is not recommended at this time.

ThePoliceDepartment uses Request Tracker to managerecords requests. Request Tracker assigns a request number and notifies the department, fulfilling each request requires multiple separate systems, including XpressBillPay, email, Foxit for redaction, and manual document uploads. Staff must then return to Request Tracker to document all actions. We are requesting purchase of NextRequest, which is a CivicPlus product that streamlines the records request process into a single platform. NextRequest manages requests from start to finish, automatically tracks each step, and provides a clear date, time, and officer-stamped audit trail.

Note: This request is recommended. $12,573 $4,500

Power DMS - IA, Power Action, Power Vitals

Fund(s):

General

Estimated Impact: $21,510

The department currently utilizes PowerDMS and is requesting funding to add PowerIA and PowerAction. Together, these platforms provide an integrated solution that is essential for maintaining ALEAP accreditation and supporting compliance, documentation, and operational accountability.

Note: This request is recommended.

Public Works - Water

Reason/Justification:

The Town of Chino Valley has passed a Council resolution that states the Town along with other municipalities is willing to not only participate in a regional steering committee effort but support financial elements of professionally facilitated experts to assist with the collaborative process. It is estimated the amount of professional facilitation with water expertise, public engagement, and further presentations to each Council will cost approximately $100,000, and Chino Valley's share of this is $33,000. If the County decides to join and assist then these costs may decrease.

Note: This is being partially recommended for $11,000. The remaining amount requested of $22,000 is not recommended at this time.

Town Manager

The Town Manager’s Office,includingEconomic Development,alongwith Community Services, will utilize a location analytics platform to support data-driven decision-making. Economic Development will use it to enhance retail strategies, Community Services will apply it to evaluate event performance and outcomes, and the Town Manager’s Office will leverage it to support grant writing and strategic planning efforts.

Note: This request is recommended.

One-Time Operating Expenditure Summary - Base

Analysis

The one-time operating base budget for FY 2026-27 represents the amount allocated assuming no changes are approved for one-time supplemental budget requests. This budget reflects a 62.4% decrease compared to last year’s one-time operating budget Only one amount is included in the base budget:

• Grant Fund: The $1,000,000 is to provide expenditure authority for miscellaneous grants that will be applied for throughout the year. There is an equivalent matching revenue line of $1,000,000. Expenditures under miscellaneous grants will only occur if grant funds are received. In prior years this was set at $1,500,000, but to date, under $200,000 was received and spent. The budget is being reduced to $1,000,000 to more realistically reflect anticipated miscellaneous revenue activity and avoid overbudgeting for projects unlikely to be funded.

As the budget process continues, there are liable to be certain rollovers associated with FY 2025-26 projects that haven’t reached completion.

• For example, the Zoning Code rewrite, budgeted at $250,000, in conjunction with the Engineering Code changes, budgeted at $150,000, are underway but will not be completed by June 30.

Additional information will be provided as the rollovers are identified.

Not Recommended at This Time

Budget Requests

One-Time Operating Request Summary

Recommended

Partially Recommended

Not Recommended Third-Party Request Legend:

Recommendation

The Town Manager recommends that the requests marked with green checkmarks proceed through the budget process. The total impact on the one-time operating budget of the recommended items is $723,606 with the fund breakdown:

• General Fund: $413,606

• Grant Fund: $292,330

• General Capital Improvement Fund: $17,670

Compared to the prior year’s one-time operating budget of $2,661,298, the recommended $723,606 in additional items, combined with the $1,000,000 base amount, represents a decrease of $937,692, or 35.2%.

Operating Budget Including Recommendations

One-Time Operating Expenditure Summary - With Recommendations

Budget Request Details Human Resources

Job Analysis & Classification Review:

-Review all existing job descriptions

-Conduct employee questionnaires and/or interviews

-Evaluate essential functions and FLSA status

-Recommend classification revisions, consolidations, or new classifications

-Identify appropriate labor markets (local, regional, and/or statewide Arizona public sector comparables)

-Conduct salary benchmarking using comparable public agencies

-Provide analysis of market position (e.g., 50th percentile target)

-Evaluate compression, inversion, and internal alignment issues

-Evaluate current salary schedule and step plan Recommend revised pay grades, ranges, and structure

-Identify red-circle and green-circle impacts

-Provide guidance on merit/step practices and long-term maintenance

Note: This request is not recommended at this time but will be necessary in FY 2027-28.

Information Technology Services

Adding enhanced security for network intrusion detection. This will improve the Town's network posture to allow for detection and protection against network based cyberattacks.

Note: This request is not recommended at this time but will be necessary in FY 2027-28

Non-Departmental

Summary: Reason/Justification:

PSPRS Unfunded Liability Payment

Fund(s): 100% General

Estimated Impact: $250,000

The proposed payment of $250,000 toward the PSPRS unfunded liability is a proactive step to reduce the overall unfunded actuarial accrued liability (UAAL) of $1,491,119 as of June 30, 2025. By making this payment, we are actively addressing our long-term pension obligations and reducing future interest costs, ultimately lowering the burden on future budgets. This payment demonstrates our commitment to the financial stability of the pension system, ensuring that promised benefits are fully funded and reducing the risk of increasing liability over time. Additionally, it aligns with best practices in pension funding and enhances the Town's creditworthiness and fiscal health.

Note: This request is recommended.

The Yavapai Combined Trust (YCT) board determined a plan to rectify the reserve shortfall of $4,325,170. The plan is a two-year program that will eliminate the shortfall and is proportionately split between the four member agencies (Chino Valley, City of Prescott, Yavapai College, and Yavapai County).

The first payment of $111,105.98 will be due from the Town by July 31, 2026, and the second payment of $111,105.99 will be due by July 31, 2027.

Note: This request is recommended and mandatory to continue to participate in YCT for employee health care.

$111,106

Police

Summary: Reason/Justification:

Estimated Impact: $17,073

Note: This request is recommended.

The requested funds will replace 1/3 of the total existing patrol rifles with short-barrel rifles (SBRs) to enhance officer safety, operational effectiveness, and maneuverability in close-quarters and urban environments. This upgrade ensures our patrol units are equipped with modern, reliable, and mission-appropriate firearms, supporting rapid response and alignment with current law enforcement best practices.

Estimated Impact: $13,000

Note: This request is recommended.

Public Works - Engineering

Summary: Reason/Justification:

5.7% General CI 94.3% Grant

Estimated Impact: $310,000

The Town was awarded a $292,330 Transportation Alternatives Program Grant Funding, with a 5.7% local match, to advance the design of a 5,000foot continuous multi-use path along North Road 1 East and Perkinsville Road. The project will deliver scoping and a 60% design for two key segments- approximately 4,000 feet along North Road 1 East and 1,000 feet along Perkinsville Road - while evaluating potential traffic calming measures to enhance safety. Total Project Cost is estimated $310,000. Match at 5.7% is $17,670.

Upon completion, the Town will be well positioned to pursue funding for the remaining 40% design and construction, moving this project closer to implementation.

Note: This request is recommended.

Public Works - Water

Summary: Reason/Justification:

Water Utility Risk/Vulnerability Assessment

Fund(s):

100% Water

Estimated Impact: $30,000

The Integrated Water Master Plan will identify the highest priority capital improvement projects and why it is not designed to investigate and research a cost benefit analysis of the highest priority project which will be a new water production facility. The cost-benefit analysis will evaluate all opportunities and consequences of each and a do-nothing element as part of a total risk and vulnerability assessment analysis of the water utility.

Note: This request is not recommended at this time It may be necessary in future years and will be reevaluated after the completion of the IWMP.

Town Clerk

Summary: Reason/Justification:

General Election Expenses

Fund(s):

100% General

Estimated Impact: $35,000

Typically, the Town budgets only for the primary election unless a general election is anticipated. Due to the potential referendum, it is likely a general election will be required. If a general election is not needed in November 2026, the budgeted funds will not be expended.

Note: This request is recommended.

$35,000

Town of Chino Valley

Minor Capital Expenditure Summary - Base

Analysis

The minor capital base budget for FY 2026-27 represents the amount allocated assuming no changes are approved for minor capital supplemental budget requests. This section does not include major capital improvement projects (large scale projects that are greater than $50,000) but includes capital equipment purchases and small-scale projects. This budget reflects a 65.6% decrease compared to last year’s minor capital budget.

Some minor capital is included in the base budget:

• General Fund: The $105,000 in the Public Works budget is for ongoing capital replacement/repair programs:

o $30,000 for HVAC

o $75,000 for parking lot repairs

• Grant Fund: The $1,000,000 is to provide expenditure authority for miscellaneous grants that will be applied for throughout the year. There is an equivalent matching revenue line of $1,000,000. Expenditures under miscellaneous grants will only occur if grant funds are received. In prior years this was set at $2,000,000, but no funds were collected or spent. This is being reduced to $1,000,000 to more realistically reflect anticipated miscellaneous revenue activity and avoid overbudgeting for projects unlikely to be funded.

With an Executive Analyst now in place and actively pursuing larger, multi-year grant opportunities, the Town is better positioned to anticipate grant funding timelines and incorporate related expenditures into future budget cycles. This improved planning approach will support more accurate budgeting.

• Court Fund: The $50,000 is allocated for court improvements and will be funded from resources specifically designated for that purpose. While prior budgets included lower amounts, the Court is currently evaluating a range of security and technology enhancements. The increased budget provides flexibility and capacity to implement these smaller scale improvements as needed.

Budget Requests

Minor Capital Request Summary

Department

Recommended

Partially Recommended Not Recommended Third-Party Request

Recommendation

The Town Manager recommends that the requests marked with green checkmarks proceed through the budget process. The total impact on the minor capital budget of the recommended items is $230,000, with the following fund breakdown:

• General Fund: $15,000

• HURF: $20,000

• Capital Asset Replacement Fund: $180,000

• Water Fund: $15,000

Compared to the prior year’s minor capital budget of $3,358,000, the recommended total of $1,385,000 (including $230,000 in additional items and a $1,155,000 base amount) reflects a decrease of $1,973,000, or 58.8%.

Minor Capital Budget Including Recommendations

Minor Capital Expenditure Summary - With Recommendations

Budget Request Details

Summary: Reason/Justification:

Replace 2 Full Patrol Units

Fund(s):

100% Capital Asset Replacement

Estimated Impact: $180,000

This request is to replace Unit 2 and Unit 14 with patrol SUV units that are fully equipped.

Note: This request is recommended.

Public Works – General (Facilities, Fleet, Parks, Engineering)

Summary: Reason/Justification:

Epoxy Aquatics

100% General

Estimated Impact: $15,000

Utility Cart

Fund(s):

100% General

Estimated Impact:

$20,000

Mower Fund(s): 100% General

Estimated Impact: $125,000

The existing epoxy floor is old, worn, and difficult to properly clean, creating ongoing maintenance challenges and sanitation concerns. Replacing it will improve cleanliness, safety, and long-term durability while reducing maintenance time and costs.

Note: This request is recommended.

Replacing asset PE14, a 10-year-old cart. We currently have 3 carts for 6 employees, PE14 being the oldest and less mechanically sound. This cart would allow us to stop/limit our borrowing from facilities to effectively run events and daily maintenance.

Note: This request is not recommended at this time.

Our current mower is 5 years old. This mower is bigger and can cut down our mow time by cutting an extra 2 feet per pass or roughly reducing 6 hours of mow time to around 4 hours of mow time.

Note: This request is not recommended at this time.

$20,000

Public Works - Streets

Summary: Reason/Justification:

Welding and Service Conversion Fund(s): 100% HURF

Estimated Impact: $20,000

The following equipment will be removed from C511 (1991 Dodge D250 Pickup): a gas-powered arc welder, oxygen-acetylene welding rig, gaspowered air compressor, and miscellaneous tools. This equipment will be transferred to S808 (2025 Ford F-250 Pickup).

To accommodate this installation, the existing bed on S808 will be removed and replaced with a purpose-built welding bed with integrated toolboxes. Additional components will also be installed, including storage boxes, a trailer hitch, and work lamps, providing improved functionality as well as enhanced safety and lighting.

Note: This request is recommended.

HURF

Estimated Impact: $190,000

Current aged mower E09 is a large platform mower that reduces maneuverability. It was not designed for roadside applications when purchased. New commercial mower would be smaller, more economical, more maneuverable, and purpose built forthe type of vegetation mowing performed most often by the Streets Division. The new mower would replace E09. This would not be a new addition. The sale price of the existing mower is estimated at $30,000 which could potentially offset the purchase price of the new mower

Note: This request is not recommended at this time.

Public Works – Water

Summary: Reason/Justification:

Originally set up as a 3-year program, we are requesting our final surge protection budget amount and will be for the Brightstar Well site. Surge protectors will extend the life of the electronic devices within each building and prevent fire disasters.

Note: This request is recommended.

$190,000

$15,000

Public Works - Wastewater

Summary: Reason/Justification:

Vactor Truck

Fund(s):

31% Capital Asset

Replacement

23% HURF

23% Water

23% Wastewater

Estimated Impact: $500,000

We are requesting replacement of our current 1997 Vactor truck, originally purchased used, which has proven to be unreliable and hazardous, even experiencing multiple fires. It fails to function adequately, particularly in lifting debris from lift stations. A new Vactor truck would meet our operational needs while reducing our current dependency on rental services. Currently, when our lift station requires cleaning or during emergency operations, we must hire Fann Environmental or rely on the City of Prescott, subject to their availability.

The new truck would also aid Streets in clearing culverts and Parks Maintenancein clearing lands,enhancingourservice efficiency across the board. This new truck is projected to last up to 20 years.

Note: This request is not recommended for FY 2026-27

Instead of including this in the FY 2026-27 budget, an opportunity has been identified to purchase a smaller unit which will cost $392,975 but will still meet operational requirements. This is the last available unit of this model, and the Town must act quickly to secure it. An action item will be presented at the April 14th Council Meeting for consideration.

There is sufficient budget capacity in the FY 2025-26 budget to support this purchase. Due to the shared use of the vehicle across multiple service areas, funding will be allocated as follows:

• Capital Asset Replacement Fund – 31% - $121,823

• Highway User Revenue Fund – 23% - $90,384

• Water Fund –23% - $90,384

• Wastewater Fund – 23% - $90,384

$500,000

Major Capital Project Expenditure Summary - Base

Analysis

The major capital base budget for FY 2026-27 represents the amount allocated assuming no changes are approved for major capital project supplemental budget requests. This budget reflects a 42.9% decrease compared to last year’s major capital project budget

Some major capital is included in the base budget. These are:

• General Capital Improvement Fund: The $1,000,000 is for potential projects should miscellaneous revenues be collected, such as sale of property at Old Home Manor. In prior years this was set at $2,000,000, but no funds were collected or spent. This is being reduced to $1,000,000 to more realistically reflect anticipated miscellaneous revenue activity and avoid overbudgeting.

Wastewater Capital Improvement Fund: The $9,174,755 is the estimated rollover of the Water Reclamation Facility improvements. The project will construct two concrete aerated equalization basins and a concrete pump station with VFD-controlled submersible pumps to buffer peak flows and meter influent to the existing membrane bioreactors. A new bar screen will provide coarse screening upstream of the basins protecting all downstream equipment from ragging issues. Two HDPE sludge storage tanks with aeration and rotary lobe feed pumps will improve solids handling and processing time.

The design is approximately 95% complete and the WIFA board approved the loan to the Town for $10,000,000 in February 2026. The final loan package will be presented to Council for acceptance within the next few weeks. The Town will receive $1,260,000 or 12.6% in forgivable principal due to the PFAS pilot testing element of the project

As the budget process continues, there are liable to be other potential rollovers associated with FY 2025-26 projects that haven’t reached completion by June 30. For example:

• The first phase (1A) of the Community Center Park Improvements, budgeted for $250,000, is expected to reach completion mid to late August, although the current goal is to finish by June 30.

• The street improvement project, budgeted for $3,000,000, is also expected to be completed prior to the end of the fiscal year, but if scheduling challenges arise, they may extend into the following fiscal year.

Additional information will be provided as potential rollovers are identified.

Budget Requests

Major Capital Request Summary

Department Description

Recommended

Peavine South Connection

Not Recommended at This Time

Not Recommended at This

Total Capital Requests 7,029,361 $

Recommended

Partially Recommended Not Recommended Third-Party Request Legend:

Recommendation

The Town Manager recommends that the requests marked with green checkmarks proceed through the budget process with those in red being moved to future years. The Capital Improvement Plan Citizen’s Advisory Committee (CIPCAC) also provided recommendations. The recommendation of each entity is noted under the budget request details section. The total impact on the major capital budget of the recommended items is $5,079,361, with the following breakdown by fund:

• General Fund: $75,000

• Grant Fund: $2,569,072

• General Capital Improvement Fund: $435,289

• Streets Capital Improvement Fund: $2,000,000

Compared to the prior year’s major capital budget of $17,830,441, the recommended items of $5,079,361 in addition to the base amount of $10,174,775, reflect a decrease of $2,576,325, or 14.4%.

Major Capital Budget Including Recommendations

Major Capital Expenditure Summary - With Recommendations

Budget Request Details

Summary: Reason/Justification:

In FY 2024-25, the Parks and Recreation Advisory Board developed, presented, and formally recommended to Town Council a comprehensive re-envisioning of Phase III of Community Center Park, specifically the area along Perkinsville Road. The proposed improvements are designed as a multi-phased, staged plan that includes expanded parking, pickleball courts, restroom facilities, new playground equipment, and enhancements to the existing dog park. The total estimated cost for the full build-out of Phase III is $2.5 million.

$280,000

Estimated Impact: $280,000

Peavine South Connection Fund(s):

5.7% General CI

94.3% Grant

Estimated Impact: $2,724,361

The Town is actively pursuing all applicable grant funding opportunities to offset project costs. In addition, the Chino Valley Pickleball Association has committed to supporting the project through community fundraising efforts and has raised approximately $25,000. As an initial step, $250,000 was approved and funded in FY 2025-26 for Phase 1A, which includes west parking lot construction, grading, and drainage improvements

For FY 2026-27, staff is requesting $280,000 to fund Phase 1B which includes the construction of four pickleball courts, along with detention pond expansion. Additionally, the following amounts are estimated to be requested in future fiscal years:

• FY 2027-28 – Phase 2A $275,000

• FY 2028-29 – Phase 2B $280,000

• FY 2029-30 – Phase 3A $465,000

• FY 2030-31 – Phase 3B $1,400,000

Note: This request is recommended by the Town Manager and CIPCAC.

The Peavine Trail South Connection will design and construct approximately two miles of multi-use trail linking Chino Valley's existing Peavine Trail Infrastructure to the City of Prescott's Peavine Trail. This segment will extend the existing trail across Granite Creek and along the corridor to the Town limits, creating a continuous, regionally connected pathway for pedestrians, bicyclists, and equestrian users. The project enhances mobility and supports access to recreation and regional destinations while advancing the Town's long-term investment in trail infrastructure identified in the Make It Chino! 2045 General Plan. The expected project cost will be approximately $2,724,361 with the majority being covered by a grant and $155,289 as the Town’s match.

Note: This request is recommended.

Public Works – General (Facilities, Fleet, Parks, Engineering)

Summary: Reason/Justification:

$2,724,361

Cost: Town Hall Roof

Fund(s):

100% General CI

Estimated Impact: $75,000

This funding is for the re-roofing of Town Hall. The project will address the aging roof structure to prevent potential leaks, protect the building and its contents, and ensure continued safe and reliable operations. Replacing the roof at this time is a proactive measure to avoid more costly repairs or damage in the future and to maintain the integrity of this critical facility.

Note: This request is recommended.

$75,000

Summary: Reason/Justification:

Parks Maintenance Building - Design

Fund(s):

100% General CI

Estimated Impact:

$300,000

Currently Parks and Facilities have no home. They use the announcer’s booth at the Community Center Park, Community Center, Aquatics Building, and various sheds around Town as offices, storage, or workspaces. The park’s yard does not have electricity or water to conduct business. With the Parks, Facilities, and Aquatics Maintenance merge, a building is required to make a home for all. With the continuing addition of employees, parks and facilities do not have enough room for employees.

Note: This request is not recommended at this time by the Town Manager but is recommended by CIPCAC.

$300,000

Following design, the actual construction is estimated at $2,000,000. Field 4/Playground

Our youth sports are increasing in participants yearly. The need for more lighted field space is a must. Currently our playground has zero lighting and is a safety hazard for children at night.

Fund(s):

100% General CI

Estimated Impact:

$1,500,000

Note: This request is not recommended at this time by the Town Manager but is recommended by CIPCAC.

$1,500,000

As part of the ongoing pavement management program, the FY 2026-27 improvements include approximately 5 to 10% for Crack Filling and Seal Coating various town streets. The remainder shall be spent on the program to pulverize, prepare, and apply a double chip seal coating to a prioritized list of streets. The list will be reviewed with Council based upon staff recommendations prior to approval of the project contract.

Note: This request is recommended by the Town Manager and CIPCAC. $2,000,000

The Streets office building, constructed in 2024, requires several site and facility improvements to support operations and accessibility. Proposed improvements include paving the parking area, installing permanent steps at the rear entrance, adding a shaded walkway at the front entrance, relocating fencing, and establishing a new electrical service. These improvements will enhance safety, functionality, and overall usability of the facility.

Note: This request is not recommended at this time by the Town Manager but is recommended by CIPCAC. $150,000

MEMORANDUM

To: Terri Denemy, Town Manager

From: Laura Kyriakakis, Human Resources Director

RE: Full-Time Equivalent (FTE) Staffing Level History vs. Chino Valley Population 2007 - 2025

Date: March 23, 2026

Below is a brief history of staffing levels versus population growth, in the Town of Chino Valley, from 2007 through 2025. I thought it important to better understand the big picture of past and present staffing levels to put into perspective the reasoning behind why we are staffed at our current levels and the big shift from the median years.

Since 2007, when the Town’s population was at 10,958, there has been a big swing in staffing levels. During that prerecession period, the total full-time equivalent (FTE) count, not including town council, was 126. The downturn of the economy in the United States, which began in December 2007 and lasted until mid-2009 took a great toll on the Town’s staffing levels which gradually continued to decline to its lowest point of 87 FTE, in 2013. This gradual staffing reduction occurred despite continued and even growing service demands. Primary drivers of these staffing reductions were due to recessionary impacts, budget cuts, and hiring freezes. It took the town approximately 10 years to begin to recover from the recession’s impacts and regain or slightly exceed prior revenue levels. The Town began to slowly increase staffing levels, to 98 FTE, in 2020, as the population grew to 13,109. It was not until 2021 through 2025 that the Town was able to gradually rebuild its staffing levels to what it is today. Currently FTE sits at 132.75, not including town council, and services a population of 13,969. As you may recall, in the last three fiscal years alone, Town Council approved staffing increases by seven in the Police Department (Sworn Officers, Non-Sworn Staff and Animal Control) and staffing increases by five in the Public Works Department (Park, Facilities, Streets, and Engineering). Although these were not the only Town Council approved positions, they were the primary departments experiencing a considerable increase in workload and service level strains.

From 2007 to 2025, staffing increased by 5.08% while the population saw an increase of 27.48%. Even though total staffing is higher in 2025, staffing per capita is still lower than in 2007, meaning we have leaner operations, higher workload per employee, and a potential service level strain in certain departments. When we were operating under reduced staffing, in real terms, it meant increased workload per employee, delayed maintenance or capital projects, reduced service levels or longer response times, and reliance on overtime, contractors, or deferred work. In contrast with proper staffing levels, the Town can stabilize services, properly address backlog and improve or maintain proper response times.

While the Town has successfully restored staffing levels following significant reductions during the recession, current staffing ratios relative to population indicate that service delivery remains leaner than historical levels, underscoring the need for continued strategic workforce planning as the community and its services continue to grow. The town’s leadership team wants to continue responsible stewardship by intermittently evaluating process improvements, technology options, cross-training, and do “more with less” during reduced staffing years, while still being able to restructure or prioritize efforts when possible.

In summary, while the current FTE count of 132.75 (not including town council) is slightly above the 2007 levels in raw numbers, it is still a lower staffing ratio per capita. Our recovery from the downturn of the economy took approximately 10 years, indicating staffing was slow to rebuild, population growth has outpaced staffing, and current staffing levels may still be functionally lean despite headline numbers. We are committed to efficient staffing levels, while

simultaneously committed to assessing future growth that will require proactive staffing strategies, in lieu of reactive hiring. This includes evaluating and identifying any staffing gaps in key departments, and recognizing growth areas, such as public works, planning and public safety, etc. lk

TOWN OF CHINO VALLEY – ADMINISTRATIVE MANUAL

Administrative Procedure No.: 510 Administrative Procedure: Red Circle Compensation Policy

Origination Date: 5/2026

Revision Date(s):

Employees paid above the maximum of their assigned pay range are considered red-circled and are not eligible for base pay increases. Exceptional performance may be recognized through lump sum or incentive awards.

The purpose of this policy is to ensure internal equity, fiscal responsibility, and alignment with the organization’s pay-for-performance philosophy when an employee’s base salary exceeds the maximum of the assigned pay range.

A red-circle rate exists when an employee’s base pay is above the maximum of the established salary range for their classification.

PAY TREATMENT:

A. Base Pay

1. Employees paid above the maximum of their assigned pay range are not eligible for base salary increases, including cost-of-living or merit increases, until the pay range maximum equals or exceeds the employee’s base pay.

B. Performance Recognition

1. Employees may be eligible for lump-sum merit awards, incentive pay, or one-time bonuses based on performance, subject to budget availability and governing body approval.

2. Lump-sum payments do not increase base pay and are non-recurring.

PERFORMANCE EXPECTATIONS:

A. Red-circle status does not change performance expectations.

B. Employees must continue to meet or exceed job performance standards.

C. Red-circle status shall not be used as a substitute for addressing performance deficiencies.

REVIEW AND RESOLUTION:

A. Red-circle rates shall be reviewed annually as part of the compensation and budget process.

B. Resolution may occur through:

1. Market-based range adjustments

2. Reclassification or reassignment

3. Voluntary movement to a different position

4. Retirement or separation

All red-circle determinations must be documented and approved by the Town Manager (or designee) and Human Resources Director.

Public-Sector Survey Decision Matrix

Population-Based vs Region-Based vs Hybrid Salary Survey**

Purpose

Provide a consistent framework for determining when a public-sector employer should rely on populationbased salary surveys (national/statewide), region-based salary surveys (local labor market), or a hybrid approach when developing pay ranges, supporting negotiations, or conducting market analyses.

Decision Matrix

Criteria Use Population-Based Survey When… Use Region-Based Survey When… Use Hybrid Survey When…

Labor Market for Talent

Skills are recruited nationally (e.g., IT security, engineers, specialized administrators)

Compensation Philosophy

Competition for Critical Roles

Budget Predictability

Transparency & Public Expectations

Hiring Challenges

Cost-of-Labor Variation

Organization values broad consistency, equity across job families, and statewide or national benchmarks

Competing with federal employers, private sector, or other local public entities

Need simple, stable pay structures that change minimally year to year

Public expects standardization and comparability across government entities

Hard-to-fill due to national shortages

Cost-of-labor differences across regions are small or manageable using differentials

Talent is sourced locally (police, fire, public works, administrative, maintenance)

Organization prioritizes being competitive within its local government labor market

Mainly competing with city/county governments and school districts within the region

Organization adjusts ranges frequently based on local wage pressures

Public expects pay aligned with nearby cities/counties and local cost of living

Hard-to-fill due to losing candidates to nearby municipalities

Recruitment varies by position; some jobs draw national candidates while others draw locally

Organization needs statewide consistency but also must respond to local pressures

Competition varies by role; some are local, others statewide/national

Organization seeks stability but needs targeted adjustments

Public expects fairness but supports adjustments for hard-to-fill roles

Hard-to-fill varies by job class

Cost-of-labor differences are high between jurisdictions within commuting distance Some jobs require local precision, others don’t

Criteria Use Population-Based Survey When…

Use Region-Based Survey When… Use Hybrid Survey When…

Data Availability

Strong data available from national or multi-state publicsector surveys

Strong participation from nearby jurisdictions in regional or league-of-cities surveys

National data is strong, but regional data improves accuracy

Interpretation Guide

1. If the majority of criteria fall in the Population-Based column

Use population-based surveys (national/statewide public-sector data; multi-state municipal surveys; national gov’t HR associations).

2. If the majority fall in the Region-Based column

Use local/metro government labor market surveys (league of cities, county HR consortium data, regional comp studies).

3. If the results are mixed

Use a Hybrid approach:

o Start with statewide/national public-sector data

o Validate and adjust using local labor market comparisons

o Apply geo differentials if part of policy

• Use Population-Based when: You need statewide or national averages for compliance or policy.

• Use Competitive Region-Based when: You need localized data for competitive pay or pricing.

• Use Hybrid when: You want both macro and micro insights for strategic decisions.

APPENDIX D

Personnel Schedule and Ranges

Department/Position

Personnel Schedule and Ranges

General Employee Salary Schedule

Planning

Police

Processing Coordinator

Property

General Employee Salary Schedule

Economic

Finance

Information

Project

Utilities