Issuu

TOWN OF

CHINO VALLEY ARIZONA

ANNUAL

BUDGET

FISCAL YEAR 2026/2027

Table of Contents

INTRODUCTION Town Manager Letter ............................................................................................................................5 Council Profiles ......................................................................................................................................9 Budget Award ......................................................................................................................................13 Organization Chart ...............................................................................................................................15 Staff Leadership ...................................................................................................................................16 Community Profile ...............................................................................................................................17

STRATEGIC GOALS Mission, Vision, and Values..................................................................................................................23 Council Strategic Priorities and Goals ..................................................................................................24 Strategic Outcomes, Goals, and Performance Metrics ........................................................................25 Goals and Performance Metrics by Department .................................................................................26 Community Services Department ................................................................................................27 Development Services Department .............................................................................................29 Finance Department ....................................................................................................................33 Human Resources Department ....................................................................................................35 Information Technology Services Department ............................................................................37 Municipal Court............................................................................................................................40 Police Department .......................................................................................................................42 Public Works Department ............................................................................................................44 Town Clerk Department ...............................................................................................................47 Town Manager .............................................................................................................................49

BUDGET PROCESS Budget Process.....................................................................................................................................55 Budget Calendar...................................................................................................................................56 Basis of Budgeting................................................................................................................................57 Resolution and Budget Schedules ........................................................................................................59 Fund Structure .....................................................................................................................................73 Fund Structure – Department/Fund Relationship Matrix ....................................................................76

FINANCIAL POLICIES Policy Measures ...................................................................................................................................77 Financial Policies ..................................................................................................................................77

BUDGET OVERVIEW Overview ..............................................................................................................................................81 Expenditure Summary..........................................................................................................................82 Revenue Summary ...............................................................................................................................84 Fund Balance........................................................................................................................................85 Financial Schedules and Forecast.........................................................................................................87

REVENUES Revenues..............................................................................................................................................97

Town of Chino Valley Budget FY 2026-27

Table of Contents

DEPARTMENTS Community Services Department ...................................................................................................... 105 Development Services Department ................................................................................................... 109 Finance Department .......................................................................................................................... 113 Human Resources Department .......................................................................................................... 117 Information Technology Services Department .................................................................................. 121 Mayor and Council ............................................................................................................................. 125 Municipal Court ................................................................................................................................. 129 Non-Departmental ............................................................................................................................. 133 Police Department ............................................................................................................................. 137 Public Works Department .................................................................................................................. 141 Public Works Department - Streets.................................................................................................... 145 Public Works Department - Utilities................................................................................................... 149 Town Clerk Department ..................................................................................................................... 153 Town Manager ................................................................................................................................... 157

DEBT OBLIGATIONS Summary ............................................................................................................................................ 161 Debt Schedules .................................................................................................................................. 163

CAPITAL IMPROVEMENT PLAN Summary ............................................................................................................................................ 169 Major Projects 5 Year Schedule ......................................................................................................... 171 Operating Impact ............................................................................................................................... 172 Project Details .................................................................................................................................... 173

PERSONNEL SCHEDULES Summary ............................................................................................................................................ 191 Personnel Schedule and Ranges ........................................................................................................ 194 General Employee Salary Schedule .................................................................................................... 197 Police Employee Salary Schedule ....................................................................................................... 200

APPENDIX Glossary.............................................................................................................................................. 201 Acronyms ........................................................................................................................................... 206 Budget in Brief FY 2026-27 ................................................................................................................. 207

EXTERNAL BUDGET RESOURCE LINKS Town Council Budget Study Session – April 13, 2026 - https://chinovalleyaz.portal.civicclerk.com/event/6592/media Town Council Budget Study Session – April 27, 2026 - https://chinovalleyaz.portal.civicclerk.com/event/6593/media Town Council Budget Meeting – May 12, 2026 - https://chinovalleyaz.portal.civicclerk.com/event/6571/media Town Council Budget Meeting – May 26, 2026 - https://chinovalleyaz.portal.civicclerk.com/event/6583/media Town Council Budget Meeting – June 23, 2026 - https://chinovalleyaz.portal.civicclerk.com/event/6584/media Town General Plan - https://www.chinoaz.net/263/General-Plan

Online book format of FY 2026-27 Budget Book (Issuu) - https://isu.pub/QZcW0fY

Town of Chino Valley Budget FY 2026-27

Town Managers Office www.chinoaz.net June 23, 2026 Dear Residents of Chino Valley, We are pleased to share the Town of Chino Valley’s budget for Fiscal Year 2026–2027. This budget provides a plan for how we will use your tax dollars and community resources to keep Chino Valley a safe, welcoming, and well-maintained place to live. Community Engagement Community input helped inform development of the FY 2026-27 budget. When residents were asked to identify the three Town services they believed should receive the greatest budget priority, street repairs received the strongest support, selected by approximately 67% of respondents. Business retention and attraction followed at 51%, water source and aquifer protection at 43%, and public safety at 33%. These priorities helped inform Council's budget discussions and the Town's continued focus on infrastructure, economic development, water resources, and public safety. Community Budget Priorities Percent of survey respondents selecting each service as a top-three priority Street Repairs

67.4%

Business Retention & Attraction

50.7%

Water Source/Aquifer Protection

43.1%

Public Safety (Police)

32.6%

Senior Center

16.0%

Library Services

15.3%

Special Events

11.8%

Recreational Opportunities

8.3%

Community Programming

8.3%

Water & Sewer System Expansion

7.6%

Maintaining Parks & Open Spaces

7.6%

Adding New Parks & Open Spaces

7.6%

Water & Sewer System Maintenance

6.3%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Percent of Respondents Note: Respondents were asked to select up to three Town services. Percentages therefore do not total 100%.

FY 2026-27 Budget at a Glance These survey results provided the foundation for the FY 2026-27 budget and guided Council’s conversations to ensure the final plan reflects community priorities and makes the most of our limited financial resources. In addition to your valuable feedback, Council also held multiple budget discussions and study sessions to evaluate priorities, consider trade-offs, and develop a financial plan that balances current service needs with long-term sustainability.

Millions

Budget Comparison $60 $50

$49,409,921

$51,059,144

Personnel Services Operating

$40

One-Time Operating

$30

Capital Outlay Debt Service

$20

Contingency

$10

PSPRS Contribution $0 FY 2025-26 Budget

FY 2026-27 Budget

Transfers

The FY 2026-27 budget reflects a modest increase in overall expenditures compared with the prior year, driven primarily by continued investment in the Town’s infrastructure and other capital needs. Capital outlay increases from approximately $21.2 million to $22.5 million, with additional increases in personnel and debt service. These investments are partially offset by lower one-time operating expenditures, while other expenditure categories remain relatively stable. Major Budget Priorities

•

Quality Infrastructure. The budget continues a strong focus on maintaining and improving the Town’s infrastructure. The Streets Division includes $2.0 million for chip seal projects. Public Works also includes funding for transportation design, water and sewer extensions, parking lot maintenance, roofing and HVAC replacements, and other facility improvements.

•

Water & Land Stewardship. Utility capital projects represent a substantial portion of the FY 202627 budget. Major investments include approximately $9.5 million for Water Reclamation Facility

improvements and $5.0 million for Bright Star PFAS remediation in partnership with the Arizona Department of Environmental Quality. The budget also includes fill station improvements and surge protection at the Bright Star well. These investments support regulatory compliance, system reliability, and the Town’s long-term water and wastewater needs. •

Quality of Life. The budget includes $530,000 for the next phases of Community Center Park improvements and approximately $2.7 million for the Peavine South Connection project, including grant funding and the Town’s local match. These projects expand recreational opportunities and improve community connectivity while leveraging outside funding. Public safety remains a core service. The Police Department budget includes personnel adjustments intended to support recruitment and retention, along with replacement of two fully equipped patrol units.

•

Effective Government. The budget provides a 2% cost-of-living adjustment and 0-1% merit increases for eligible employees, while continuing to evaluate staffing levels and organizational needs. Certain authorized positions were frozen for FY 2026-27, reflecting a cautious approach to ongoing personnel costs. Additionally, as vacancies occur, staff evaluates each position to determine whether it continues to meet the organization’s needs before moving forward with recruitment.

•

Financial Stability. The Town continues to take a conservative approach to revenue forecasting. Local transaction privilege tax, the Town’s largest revenue source, is budgeted at approximately $11.1 million for FY 2026-27, a 4.0% decrease from projected FY 2025-26 collections. This forecast recognizes the recent moderation in revenue growth and avoids relying on unusually strong activity in individual revenue categories to support recurring services. At the same time, the budget maintains an important distinction between ongoing operations and one-time investments. Ongoing revenues are sufficient to support ongoing expenditures. Planned use of fund balance is directed primarily toward capital projects, infrastructure, and other nonrecurring needs rather than routine operating costs. This approach allows the Town to make strategic investments while preserving long-term financial flexibility. The Town also continues to leverage grants and outside funding wherever possible. The FY 202627 budget includes approximately $4.8 million in grant revenues for transportation, recreation, senior nutrition, public safety, and other eligible projects. These resources help advance community priorities while reducing the amount that must be funded solely from local revenues.

Looking Ahead The FY 2026-27 budget reflects significant investment in Chino Valley’s future while recognizing the need for disciplined financial planning. Infrastructure needs remain substantial, particularly for streets and utility systems, and revenue growth is expected to be more moderate than in several recent years. The Town will continue monitoring revenues, project costs, and economic conditions throughout the fiscal year and will adjust as necessary to protect the community’s financial position. Budgets are a team effort. I want to thank our residents for sharing their priorities, our volunteer advisory committees for contributing the community’s perspective, the Town Council for its thoughtful consideration of budget priorities, and Town staff for their work in developing a responsible financial plan. We invite you to explore this budget document to learn more about the Town’s services, revenues, expenditures, capital projects, and financial outlook. Thank you for your continued engagement and for trusting us to serve the Chino Valley community. Warm regards,

Terri Denemy Terri Denemy Town Manager

Council Profiles

Council Profiles Mayor Tom Armstrong Councilmember Armstrong has lived in Chino Valley for about 16 years and is now retired. Prior to being elected to Council in 2020, Tom served on the Chino Valley Planning and Zoning Commission for which he served as the vice chairman. Tom stated his goals for the town include assisting in the proper management of the town by listening and acting upon the voices of the community. His highest priority is to maintain a dedicated and adequate water system for the people of Chino Valley and to increase the possibilities of new businesses locating to Chino Valley. Mayor Armstrong's Term Expires DECEMBER of 2026

Vice-Mayor Eric Granillo I’m Eric Granillo — a lifelong Arizonan, small business owner, and proud council member serving the community of Chino Valley. This town has been home since childhood, and it’s where my wife Adriana and I have raised our three amazing kids: Alexia, Andrew, and Elijah. My life is rooted in faith, family, business, and service. I strive for excellence in all I do, whether it's running a business or giving back to the community I love. I'm passionate about helping Chino Valley grow responsibly — preserving our small-town values while building a stronger, more connected future. From local leadership to hands-on experience, I believe in putting people first and working together to create a place we’re all proud to call home. - Eric Granillo Vice-Mayor Granillo's Term Expires DECEMBER of 2028

Town of Chino Valley Budget FY 2026-27

Council Profiles

Councilmember Larry Holt Councilmember Holt moved to Chino Valley in April of 2018 after a 34 plus year career in law enforcement. He has always believed in giving back to the community and embraces a belief in community service. Shortly after arriving in Chino Valley, he obtained approval from the town council to renovate the town’s 9-11 Memorial. After receiving approval, founded the Chino Valley Memorial Foundation, a non-profit that not only maintains the 9-11 Memorial, but also assists survivors of first responders and active-duty military from Yavapai County who are killed in the line of duty. Larry was appointed to the Parks and Recreation Advisory Board serving two terms, his second as vice chairman. He was also appointed to the Make it Chino, general steering committee and as an ambassador for the general plan. Larry and his wife Joann love the community and both enjoy the outdoors. Larry’s priorities include maintaining Chino Valleys identity as a small rural community, public safety and volunteerism. Councilmember Holt’s term Expires DECEMBER of 2028

Councilmember John McCafferty Councilmember McCafferty was appointed to Council in August of 2021 to fill a vacant seat. He ran and was elected to an open seat in 2022. Before retiring, John worked as an administrator for the Federal Bureau of Prisons. When running for office, John stated he hoped to update the General Plan, continue to improve infrastructure, and create conditions for economic development. He said updating the general plan is critically important as the current general plan is outdated. Until a new General Plan is in place council will follow the current general plan, which was approved by voters. “I mean what I say and I say what I mean. I am predicable,” John said. “I follow the rules because when you try to take short cuts is when you run into problems. I have no hidden agenda. I’m here because I love the community where I live." John served on the town Planning and Zoning Commission and other boards. He also works with youth soccer, and he ran for council because of his commitment to public service. He moved to Chino Valley in 2016. He majored in political science at ASU. Councilmember McCafferty's Term Expires DECEMBER of 2026

Town of Chino Valley Budget FY 2026-27

Council Profiles

Councilmember Sherri Phillips Councilmember Phillips was elected to her first term on Town Council in 2022. She was born Sherri L. Clingman at Camp Pendleton Marine Base in San Diego, California. In 1968, after her father retired from the Marine Corp, Sherri’s family moved back to Arizona, their home state. (Her dad graduated from Ash Fork High School and her mom graduated from a high school in Mesa.) Sherri attended Chino Valley schools from second to ninth grade after which she attended Prescott High School. Sherri and her husband Scott Phillips have two daughters and four grandchildren. Even though she was born at Camp Pendleton and lived in Barstow before moving to Chino Valley, she considers Chino Valley her family’s home as two daughters and four grandchildren live here. Phillips worked in retail before taking her current job as office manager at a chiropractic office in Chino Valley. Councilmember Phillip's Term Expires DECEMBER of 2026

Councilmember John Stankewicz Councilmember Stankewicz has lived in Chino Valley for 11 years. John is a Navy Veteran and his business career included working for major financial corporations. John served as a police officer for 14 years. He is the founder and CEO of Compass Training Center AZ, here in Chino Valley. He is also Chief Operations Officer and Co-owner of Fabled Horse Solutions. As a husband and father of two teenage boys, John wants to see the town succeed with measured and intelligent growth, while improving life for our businesses and residents and to see opportunities for visitors to enjoy our rich history. Councilmember Stankewicz's Term Expires DECEMBER of 2026

Town of Chino Valley Budget FY 2026-27

Council Profiles

Councilmember Robert Switzer Councilmember Switzer was elected to his first term in 2024 after serving on the Planning and Zoning commission for 6 years. Robert and his wife have been living in Chino Valley for 8 years and are members of Grace Church, the American Legion Post 40 and the Prescott Elks. Robert is currently employed with the Yavapai County Sheriff’s Office in the Law Enforcement Support Services Division as the Property Control manager and a firearms instructor and also volunteers for the Sheriff’s VIP program. My priorities are God, family, Country. I love Arizona and Chino Valley. I will be focusing my term on securing a reliable sustainable water supply for Chino Valley, limiting growth to maintain our rural character while increasing our revenue through responsible retail and commercial growth. Please feel free to contact me with questions, comments and concerns. I want to be the citizens voice during my term. “Let your change of heart be seen in your works” Mathew 3:8 - Robert Switzer Councilmember Switzer’s term Expires DECEMBER of 2028

Town of Chino Valley Budget FY 2026-27

Budget Award

Mission, Vision, and Values

Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the Town of Chino Valley for its Annual Budget for the fiscal year beginning July 1, 2025. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operations guide, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. Town of Chino Valley Budget FY 2026-27

Budget Award

Chino Valley Canine Club Members Presenting Officer Sellers and Sirius with Donations for the K9 Program

Town of Chino Valley Budget FY 2026-27

Organization Chart

Organization Chart Citizens of Chino Valley

Council Mayor Tom Armstrong Vice-Mayor Eric Granillo Councilmember Larry Holt Councilmember John McCafferty Councilmember Sherri Phillips Councilmember John Stankewicz Councilmember Robert Switzer (7.00 Elected Officials)

Boards & Commissions

Town Manager Terri Denemy (4.00 FTE)

Town Attorney (Contract)

Municipal Court Judge Angela Bradshaw-Napper (5.00 FTE)

Community Services Cyndi Thomas (16.25 FTE)

I.T. Services Spencer Guest (3.00 FTE)

Development Services Laurie Lineberry (11.00 FTE)

Police Chief Joshua McIntire (45.50 FTE)

Finance Katie Pehl (4.00 FTE)

Public Works Ryan Anderson (37.00 FTE)

Human Resources Laura Kyriakakis (3.00 FTE)

Town Clerk Erin Deskins (4.00 FTE)

Legend: Direct supervisory authority Elected Appointed Town of Chino Valley Budget FY 2026-27

Staff Leadership

Staff Leadership Staff Leadership Team Town Manager ...................................................................... Terri Denemy Community Services Director .............................................. Cyndi Thomas Development Services Director ........................................ Laurie Lineberry Economic Development/Intergov. Manager ................. Maggie Holmberg Finance Director .......................................................................... Katie Pehl Human Resources Director ............................................... Laura Kyriakakis Information Technology Manager ....................................... Spencer Guest Magistrate .......................................................... Angela Bradshaw-Napper Police Chief ....................................................................... Joshua McIntire Public Works Director .........................................................Ryan Anderson Town Clerk .............................................................................. Erin Deskins

Assistant Leadership Team Assistant Development Services Director .................................Will Dingee Town Engineer/Assistant Public Works Director ................ Steven Sullivan Deputy Town Clerk.................................................................. Sara Burchill Police Lieutenant .............................................................. Randy Chapman Police Lieutenant ........................................................... Amy Chamberlain

Town of Chino Valley Budget FY 2026-27

Community Profile

Community Profile Governmental Structure Chino Valley operates under a council-manager form of government. Six council members are elected at large on a nonpartisan ballot for four-year terms, while the mayor is elected at large for a two-year term, also on a nonpartisan ballot. The Council is responsible for setting public policies, approving board and commission appointments, making planning and development decisions, and adopting new local laws. The Council appoints the Town Manager to implement these policies and oversee daily operations.

Council Meeting in Action

Council meetings are held at 6:00 p.m. on the second and fourth Tuesday of each month at Chino Valley Town Hall, located at 202 N. State Route 89. All meetings are open to the public, with agendas and minutes available on the Town’s website at www.chinoaz.net.

Location and Land Area Located just northwest of Prescott and surrounded by sandyhued Gama grasses and gentle rolling hills, Chino Valley, encompassing approximately 63 square miles, is a peaceful retreat where residents and visitors can escape the big-city lifestyle and embrace outdoor adventures. Known for its vibrant restaurant scene, local microbrewery, and vineyard, Chino Valley offers unique experiences that celebrate the local flavor.

Antelope Grazing in the Hills

Horses Roam a Desert Trail

Town of Chino Valley Budget FY 2026-27

On clear nights, brilliant constellations and bright stars light up the sky, a natural spectacle visible from anywhere in town. With abundant open spaces, it’s common to see locals riding horseback or off-roading along Perkinsville Road, exploring the vast beauty of the high desert. At an elevation of 5,300 feet, Chino Valley enjoys cooler summers and mild winters with occasional snowfall. The community takes pride in its rural character, valuing relaxation and a quiet lifestyle.

Community Profile

History Chino Valley’s history began when Arizona was declared a U.S. Territory on February 24, 1863. Shortly after, on December 23, 1863, Fort Whipple was established near Del Rio Springs in Chino Valley, serving as the site of Arizona's first Territorial government. In May 1864, Fort Whipple moved closer to Prescott, but settlers soon began homesteading the area, marking the start of Chino Valley’s long tradition of farming and ranching. In 1909, the Atchison, Topeka & Santa Fe Railroad and the Fred Harvey organization furthered this agricultural legacy by purchasing a local farm to supply milk, eggs, meat, and produce to Fred Harvey Houses along the Santa Fe Railroad. The arrival of the railroad signaled a new era for Chino Valley, particularly with the creation of Jerome Junction, a major transfer point where the narrow gauge from Jerome, AZ connected with the Santa Fe Railroad running from Prescott to the main line at Ash Fork. Jerome Junction quickly became a bustling hub with stockyards, a Wells Fargo office, a post office, a school, and a hotel. In May 1920, the railroad line from Jerome was relocated further north, leading to the gradual decline of Jerome Junction. Although it remained a stop on the Santa Fe line, most activities shifted westward along Highway 89, with many buildings relocated there as well. From the 1920s through the late 1940s, most families in Chino Valley were involved in farming and ranching. Dairy farming saw a resurgence from the mid-1950s through 1965, but rising costs for electricity and irrigation soon made farming increasingly unprofitable. As farm revenue declined, land values rose, prompting many landowners to sell their properties for new homes and businesses. Del Rio Springs Historic Marker

Education The local school system in Chino Valley includes two elementary schools, a middle school, and a high school, all of which maintain strong community ties and take pride in their sports programs.

Aerial of Chino Valley High School Chino Valley is also home to Yavapai College’s Chino Valley Agribusiness & Science Technology Center, which offers courses in agriculture technology, horticulture, animal care, canine care, service dog training, equine care, linework, and construction. The campus also features a Commercial Driving Program and an ADOT-authorized CDL testing site. 18

Aerial of Yavapai College Chino Valley Center

Town of Chino Valley Budget FY 2026-27

Community Profile

Public Safety The Chino Valley Police Department has 45.5 FTEs (FullTime Equivalents) and provides law enforcement and public safety services to the community. In January 2026, the Department achieved accreditation, demonstrating compliance with established professional law enforcement standards. Fire services are provided by the Chino Valley Fire District. Animal Control enforces animalrelated codes, manages the Animal Shelter, issues dog licenses, and responds to public complaints to support the wellbeing of residents and animals in the community.

Command Staff Accepting the Accreditation Award

Utilities The Town provides water and sewer services to a portion of its residents, with 1,086 metered water accounts and 2,392 active sewer accounts. It maintains the water supply and distribution system, operating two wells and managing 22.8 miles of water mains and 38 miles of wastewater collection lines. The treatment plant can process over 500,000 gallons of wastewater daily for recharge.

Citizens’ Academy Members Visiting the Water Reclamation Facility

The Town is not the sole water provider in the area, as another municipality and seven other water companies serve some sections of the community.

Maintenance at the Water Reclamation Facility Town of Chino Valley Budget FY 2026-27

Community Profile

Culture and Recreation Residents relish nearby hiking trails and other areas that provide endless outdoor adventures. Chino Valley’s lesser-known treasures include a heartfelt 9/11 Memorial, the Chino Valley Equestrian Center, the scenic Peavine Trail, a shooting range, and an RC Flying Field. Each of these unique spots adds to the charm and character of this close-knit community, making it a haven for outdoor enthusiasts and those seeking a peaceful, rural lifestyle. In early 2025, the Town in partnership with the Trust for Public Land, acquired the Fred Harvey Farm located at the Historic Del Rio Springs, the original Territorial Capital of Arizona. The land is 23 acres in size and is within the boundaries of a future state park. Town officials plan to stabilize the historic buildings on the site, preserve the land and create a unique tourism attraction for the region. Learn more about this historical effort by watching the video at the following link: Fred Harvey Farm Commercial. Police Officers Memorial Day Ceremony at the 9/11 Memorial

Fred Harvey Farm Property

During FY 2026-27, the Town, in partnership with the Trust for Public Land, plans to acquire Upper Sullivan’s Canyon, a property known for its natural landscape and as a destination for rock climbing. The acquisition will further the Town’s efforts to preserve significant natural resources while expanding outdoor recreation opportunities in the region.

Upper Sullivan’s Canyon

Economic Development The Economic Development Division aims to strengthen the Town's financial stability by expanding the local business base and increasing Transaction Privilege Tax (TPT) revenues from commercial and retail sectors. Learn more at: https://discoverchinovalley.org The Town strives to attract new businesses, support the growth of existing businesses, and foster a vibrant commercial environment that serves both residents and visitors. During FY 2026-27, continued development activity is anticipated, including a new RV park, a Tractor Supply location, and continued progress on several residential housing projects. These investments reflect ongoing interest in Chino Valley and contribute to the Town’s expanding commercial and residential base.

Town of Chino Valley Budget FY 2026-27

Community Profile

Statistics

Employment Rate

Median Household Income

Total Housing Units

43.7%

$61,237 5,967

Bachelor’s Degree or Higher Education

Population Median Age

24.1%

13,832

51.9 Top Employers Employer

Employees

Chino Valley Unified School Town of Chino Valley Safeway CAFMA in CV AZ Highway Safety Specialists Bonnie Plant A2Z Home Center Chino Heating & Cooling Circle L Animal Hospital Frontier Techni-Kote Industries

325 138 85 35 35 20 20 18 18 12 706

Sources: U.S. Census Bureau and Arizona Department of Economic Security. Town of Chino Valley Budget FY 2026-27

Community Profile

Population by Fiscal Year 14,000 13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0

11,250

11,705

12,003

12,375

13,020

13,492

13,669

13,815

13,911

13,832

Transaction Privilege Tax by Category Restaurants/bars $969,462 8% Rental, leasing, and licensing for use $686,847 6% Retail trade $7,795,683 66%

All other $37,264 0% Construction $1,177,601 10% Transportation, communication, utilities Use Tax $985,285 $253,310 8% 2%

Sources: U.S. Census Bureau and Arizona Department of Economic Security. 22

Town of Chino Valley Budget FY 2026-27

Mission, Vision, and Values

Mission, Vision, and Values Town of Chino Valley Who We Are

Chino Valley is a peaceful, rural community that supports recreation and regional tourism. We are committed to preserving our community’s expansive vistas, endless grasslands, and starry night skies while supporting limited and sustainable growth. We honor our proud agricultural and equestrian tradition.

Our Vision

Make Chino Valley a desirable place to build a future.

Our Mission

To provide services and opportunities that keep Chino Valley a safe, desirable place to live, grow, and thrive.

Our Values

Safety Integrity Honesty Transparency Communication

Town of Chino Valley Budget FY 2026-27

Council Strategic Priorities and Goals

Effective Government

Quality of Life

Water & Land Stewardship

Quality Infrastructure

Financial Stability

Connected Community

Safe & Secure Community

Sustainable Water Supply

Infrastructure & Asset Management

Prosperous Community

Collaborate & Engage

Sustainable Development

Natural Resources & Open Spaces

Sustainable Circulation

Recreation & Tourism Opportunities

Transparent Government

Respect Character & Culture

Expand Water & Sewer System

Local Shopping Opportunities

Innovative & High Performing Organization

Recreation for All Ages

Strategic Priorities and Goal Setting Process Community priorities play an important role in shaping the Town’s annual budget and long-term direction. Each year, the results of the public survey provide Council with valuable insight into the services, investments, and issues that matter most to Chino Valley residents. Council considers this feedback alongside current operational needs, financial conditions, and emerging opportunities when establishing strategic priorities for the coming year. At the January 2026 strategic planning meeting, Council reviewed the Town’s progress, discussed priorities for the future, and identified areas of focus to help guide development of the FY 2026-27 budget. This process connects community input with policy direction and resource allocation, helping ensure that the Town’s financial plan supports both current service needs and the long-term vision for Chino Valley. 24

Town of Chino Valley Budget FY 2026-27

Strategic Outcomes, Goals, and Performance Metrics

Strategic Outcomes, Goals, and Performance Metrics Overview In this budget book, new goals and performance measures for each department are being introduced, specifically designed to align with the Council’s Strategic Plan. This effort ensures that each department’s activities and objectives are directly connected to broader strategic outcomes, providing clear direction and measurable impact. On the next page, a table that highlights each department and the strategic priority and goals it supports is presented. Following this table, each department has a dedicated section where performance metrics are listed in detail. For each metric, the following information is available: •

Target or Baseline: The starting point or intended goal for each metric.

•

Actual Results: Performance data from Fiscal Years 2023-24, 2024-25, and 2025-26, giving a historical view of progress. Note: As the majority of performance measures were new for FY 2024-25, historical progress may not be available which is indicated by N/A.

•

FY 2026-27 Forecast: An outlook for the current fiscal year.

The results and forecast are accompanied by a colored arrow indicating the anticipated trajectory of the metric: •

Green Arrow: Meeting target or strong positive trend toward goal.

•

Yellow Arrow: Neutral trend, measured performance, maintaining performance, or on watch.

•

Red Arrow: Negative trend, signaling a need for intervention or adjustment.

After this, there is a detailed breakdown of each metric, covering its description, importance, and connection to the strategic outcome and specific goals. This approach provides a transparent, data-driven framework to assess departmental effectiveness and support ongoing alignment with the Council’s strategic priorities.

Town of Chino Valley Budget FY 2026-27

Strategic Outcomes and Goals by Department

Town Manager

Connected Community

Town Clerk

Public Works

Police

Municipal Court

Information Technology

Human Resources

Finance

Goal

Development Services

Strategic Outcome

Community Services

Strategic Outcomes and Goals by Department

Effective Government

Collaborate and Engage Transparent Government Innovative and High-Performing Organization

Quality of Life

Safe and Secure Community

Sustainable Development

Respect Character & Culture

Recreation for All Ages

Water & Land Stewardship

X X

Sustainable Water Supply

Natural Resources and Open Spaces

Quality Infrastructure

Financial Stability

Infrastructure and Asset Management

Sustainable Circulation

Expand Water and Sewer System

Prosperous Community

Recreation and Tourism Opportunities

Local Shopping Opportunities

Town of Chino Valley Budget FY 2026-27

Goals and Performance Metrics

Community Services Department Performance Metrics Target or Baseline

Actual FY 23-24

Actual FY 24-25

% of Library operations and staff structure reorganized to improve customer experiences and streamline services for onsite and off-site patrons.

100%

N/A

75%

% of Senior Center dining room addition project funded and completed.

100%

N/A

# of alternative funding sources researched and pursued for the Community Center Park ballfield lighting project.

N/A

% of scoping and design completed for recreation amenities in Phase III of Community Center Park.

100%

N/A

75%

100%

N/A

% of progress made toward connecting the Peavine Trail to Prescott's northern portion.

100%

N/A

25%

50%

75%

Line No.

Metric

Line Importance of Metric No. Metric Metric Description 1 % of Library operations and This metric tracks the progress To ensure the successful staff structure reorganized to of restructuring efforts to reorganization of Library improve customer experiences improve the Library's service operations to support and streamline services for on- offerings. the Library's goal of site and off-site patrons. meeting evolving customer needs and increasing access to its resources.

% of Senior Center dining This metric tracks the room addition project funded percentage of the Senior and completed. Center dining room addition project that has been funded and completed, measuring progress toward the full completion of the project.

Town of Chino Valley Budget FY 2026-27

To ensure the timely and successful completion of the addition, improving the facility's functionality and service delivery for the community.

N/A

Actual FY Forecast FY 25-26 26-27 100%

100%

N/A

25%

Strategic Outcome Effective Government

Goal Innovative and High-Performing Organization

Quality of Life

Recreation for All Ages

Quality Infrastructure

Infrastructure and Asset Management

Goals and Performance Metrics

5-Year Capital Improvement Plan

Community Services Department Performance Metrics Line No. Metric 3 # of alternative funding sources researched and pursued for the Community Center Park ballfield lighting project.

Metric Description This metric tracks the number of alternative funding sources researched and actively pursued for the Community Center Park ballfield lighting project, measuring efforts to secure external financial support.

Importance of Metric To identify and obtain alternative funding for the ballfield lighting project, reducing the financial burden on the Town while helping ensure the project can be completed efficiently and sustainably.

Strategic Outcome Quality of Life

Goal Recreation for All Ages

% of scoping and design completed for recreation amenities in Phase III of Community Center Park.

This metric tracks the To ensure timely and percentage of scoping and thorough planning and design work completed for design of recreational new recreation amenities in amenities, supporting Phase III of Community Center the goal of providing Park, measuring progress residents with improved toward finalizing designs for recreational spaces and this project. fostering community engagement.

Quality of Life

Recreation for All Ages

% of progress made toward This metric tracks the To ensure timely connecting the Peavine Trail to percentage of progress made progress in achieving the Prescott's northern portion. toward connecting the Peavine connectivity of the Trail to Prescott's northern Peavine Trail with portion, measuring Prescott’s northern advancements in planning, portion, enhancing coordination, and construction regional trail access for efforts. residents and visitors, while promoting outdoor activity.

Quality of Life

Recreation for All Ages

Town of Chino Valley Budget FY 2026-27

Goals and Performance Metrics

Development Services Department Performance Metrics Line No.

Metric

Target or Baseline

Actual FY 23-24

Actual FY 24-25

Actual FY Forecast FY 25-26 26-27

% of progress made toward updating the noise ordinance.

100%

N/A

20%

100%

% of completion of the Landscape Code rewrite.

100%

N/A

80%

100%

N/A

% of completion of the "Non-Domestic Animals" text amendment adoption process.

100%

N/A

15%

100%

% of completion of the Zoning Code Update.

100%

N/A

15%

100%

% of completion of the review and adoption process for the 2024 Building Codes.

100%

N/A

50%

100%

N/A

% of progress in securing a consultant to assist with the Zoning Code rewrite, with guidance from the Zoning Code Update Committee.

100%

N/A

50%

100%

N/A

% of General Plan implementation actions completed.

100%

N/A

20%

25%

% of completion of exploring alternative methods of code enforcement.

100%

N/A

100%

Town of Chino Valley Budget FY 2026-27

N/A

Goals and Performance Metrics

5-Year Capital Improvement Plan

Development Services Department Performance Metrics Line Importance of Metric No. Metric Metric Description 1 % of progress made toward This metric tracks the progress To ensure the noise updating the noise ordinance. of updating the noise ordinance is updated to ordinance, including stages reflect current such as drafting, reviewing, community needs and public consultation, and final standards, improving approval by the appropriate quality of life for governing bodies. residents by addressing noise concerns and promoting a peaceful environment.

Strategic Outcome Quality of Life

% of completion of the Landscape Code rewrite.

This metric tracks the progress To ensure the Landscape of the Landscape Code rewrite, Code addresses the covering all phases from current environmental, drafting and review to public aesthetic, and consultation and final approval community needs while by the appropriate governing improving the overall bodies. appearance and functionality of public and private spaces.

Quality of Life

Respect Character and Culture

% of completion of the "Non- This metric tracks the progress To ensure the timely Domestic Animals" text of adopting the "Nonadoption of the "Nonamendment adoption process. Domestic Animals" text Domestic Animals" text amendment, from the drafting amendment, updating phase through public regulations to promote consultation, review, and final safety, clarity, and adoption by the appropriate compliance with local authorities. standards.

Quality of Life

Respect Character and Culture

Goal Respect Character and Culture

Town of Chino Valley Budget FY 2026-27

Goals and Performance Metrics

Development Services Department Performance Metrics Line Importance of Metric No. Metric Metric Description 4 % of completion of the Zoning This metric tracks progress Ensures the Zoning Code Code Update. toward completion of the aligns with and supports Town’s comprehensive Zoning implementation of the Code update, including review General Plan while of existing regulations, drafting promoting sustainable proposed revisions, public development, preserving engagement, Planning and the Town’s character, Zoning Commission review, and guiding future and final Council consideration growth consistent with and adoption. community priorities.

Strategic Outcome Quality of Life

% of completion of the review This metric tracks the progress To ensure the timely and adoption process for the of reviewing and adopting the review and adoption of 2024 Building Codes. 2024 Building Codes, the 2024 Building Codes, encompassing all phases from promoting updated initial review, public and building standards that stakeholder consultation, to enhance safety, the final adoption and sustainability, and implementation. compliance with modern construction practices.

Quality of Life

% of progress in securing a consultant to assist with the Zoning Code rewrite, with guidance from the Zoning Code Update Committee.

Quality of Life

Sustainable Development

Effective Government

Transparent Government

This metric tracks the progress To ensure the timely of securing a qualified engagement of an consultant to assist with the expert consultant for the Zoning Code rewrite, ensuring Zoning Code rewrite, to the process is conducted with facilitate a thorough expert guidance and in update process that coordination with the Zoning aligns with community Code Update Committee. needs and improves land use management and planning for the Town.

Town of Chino Valley Budget FY 2026-27

Goal Sustainable Development Respect Character and Culture

Sustainable Development Safe and Secure Community

Goals and Performance Metrics

5-Year Capital Improvement Plan

Development Services Department Performance Metrics Line No. Metric 7 % of General Plan implementation actions completed.

% of completion of exploring alternative methods of code enforcement.

Importance of Metric Metric Description This metric tracks the progress To ensure continued of implementing the actions progress on the outlined in the General Plan, implementation of the monitoring the completion of General Plan, to align specific goals, initiatives, and community projects within the plan. development with longterm strategic goals and ensure sustainable and well-coordinated planning efforts. This metric tracks progress in To identify more evaluating alternative effective and efficient approaches to code approaches to delivering enforcement, including code enforcement potential changes to processes services and improving and service delivery. service outcomes.

Strategic Outcome Quality of Life

Effective Government

Goal Sustainable Development

Innovative and High-Performing Organization

Town of Chino Valley Budget FY 2026-27

Goals and Performance Metrics

Finance Department Performance Metrics Line No.

Metric

Target or Baseline

Actual FY 23-24

Actual FY 24-25

Actual FY Forecast FY 25-26 26-27

% of staff who complete regular training on best practices in procurement and contract management.

75%

N/A

75%

N/A

75%

% of quarterly financial reports published on time (by the end of the month following the close of a quarter) for public access.

100%

N/A

100%

% of completion of the annual independent audit and public sharing of findings.

100%

N/A

100%

# of transaction privilege tax audits or desk reviews completed.

N/A

% of completion of the long-term financial plan, including strategies for revenue diversification and expenditure control.

100%

N/A

25%

50%

75%

Line No. Metric 1 % of staff who complete regular training on best practices in procurement and contract management.

Importance of Metric Metric Description This metric tracks the To improve efficiency percentage of staff who have and compliance of participated in regular training procurement processes sessions focused on by ensuring all staff are procurement and contract consistently trained on management best practices, best practices, fostering ensuring that employees stay accountability and updated on policies and reducing the risk of procedures. errors or delays.

Town of Chino Valley Budget FY 2026-27

Strategic Outcome Effective Government

Goal Innovative and High-Performing Organization

Goals and Performance Metrics

5-Year Capital Improvement Plan

Finance Department Performance Metrics Line No. Metric Metric Description 2 % of quarterly financial reports This metric tracks the published on time (by the end timeliness and consistency of of the month following the publishing quarterly financial close of a quarter) for public reports, ensuring they are access. made accessible to the public on a regular basis.

Strategic Outcome Effective Government

Goal Transparent Government

Effective Government

Transparent Government

Financial Stability

Prosperous Community

To create a Financial Stability comprehensive financial roadmap that secures the Town's future financial stability, allowing for better longterm financial planning and resource allocation.

Prosperous Community

Importance of Metric To ensure the public has access to timely and accurate financial information on the Town’s budget, spending, and financial health, fostering trust and informed decisionmaking.

% of completion of the annual This metric tracks the progress To ensure the financial independent audit and public of conducting an annual practices are sharing of findings. independent financial audit independently verified and the timely dissemination for accuracy and of audit findings to the public, compliance, and to ensuring accountability and promote transparency, transparency in financial fostering public trust in management. the Town’s fiscal responsibility.

# of transaction privilege tax audits or desk reviews completed.

% of completion of the long- This metric tracks the term financial plan, including development and completion strategies for revenue of a long-term financial plan diversification and expenditure that outlines strategies for control. diversifying the Town's revenue streams and controlling expenditures to ensure financial sustainability.

This metric tracks the progress To ensure that all tax of establishing and executing payments are being an audit program designed to properly collected and ensure that the correct allocated, ultimately amount of taxes are being protecting the Town's collected and received by the financial health and Town. compliance.

Town of Chino Valley Budget FY 2026-27

Goals and Performance Metrics

Human Resources Department Performance Metrics Target or Baseline

Actual FY 23-24

% of Employee Handbook policies updated, approved, and communicated to staff, specifically including education reimbursement.

100%

N/A

90%

100%

N/A

% of departments with clearly defined expectations, a detailed support plan, and achievable goals created and implemented within the established timelines.

100%

N/A

75%

100%

N/A

% of employees actively participating in Hello Teams sessions throughout the year for performance management.

100%

50%

60%

100%

N/A

% of planned employee retention benefits and programs implemented to support a stable and productive workforce.

100%

N/A

100%

% of employees transitioned to the Paycom Performance Management system.

100%

N/A

50%

100%

Line No.

Metric

Line No. Metric Metric Description 1 % of Employee Handbook This metric tracks the timely policies updated, approved, completion, communication, and communicated to staff, and implementation of new specifically including education Employee Handbook policies reimbursement. for education reimbursement.

% of departments with clearly defined expectations, a detailed support plan, and achievable goals created and implemented within the established timelines.

This metric tracks progress in aligning departmental objectives with organizational goals while ensuring appropriate support is provided.

Town of Chino Valley Budget FY 2026-27

Importance of Metric To ensure policies are updated and communicated efficiently, and that employees are aware of and utilizing the new benefits, supporting retention and development. To ensure each department operates with clear direction, adequate support, and defined goals, promoting accountability and efficient performance.

Actual FY 24-25

Actual FY Forecast FY 25-26 26-27

Strategic Outcome Effective Government

Goal Collaborate and Engage

Effective Government

Collaborate and Engage

Goals and Performance Metrics

5-Year Capital Improvement Plan

Human Resources Department Performance Metrics Line Importance of Metric No. Metric Metric Description 3 % of employees actively This metric tracks the To ensure consistent participating in Hello Teams engagement levels in ongoing employee engagement sessions throughout the year performance management in performance for performance management. discussions designed to foster management, promoting communication, development, continuous feedback, a and alignment with culture of accountability, organizational goals. and alignment with organizational goals.

Strategic Outcome Effective Government

% of planned employee retention benefits and programs implemented to support a stable and productive workforce.

This metric tracks the implementation of planned employee retention benefits and programs intended to support employee retention and reduce avoidable turnover.

To maintain a stable, experienced and productive workforce by reducing avoidable employee turnover, strengthening employee engagement and development, and minimizing the costs associated with recruiting, hiring, onboarding and training replacement employees.

Effective Government

Innovative and High-Performing Organization

% of employees transitioned to the Paycom Performance Management system.

This metric tracks the percentage of employees successfully transitioned to and actively utilizing the Paycom Performance Management system.

To ensure successful implementation of the new performance management system, supporting consistent, transparent, and accountable management of employee performance, goals, development, and compensation.

Effective Government

Innovative and High-Performing Organization

Goal Innovative and High-Performing Organization

Town of Chino Valley Budget FY 2026-27

Goals and Performance Metrics

Information Technology Services Department Performance Metrics Line No.

Metric

Target or Baseline

Actual FY 23-24

Actual FY 24-25

Actual FY Forecast FY 25-26 26-27

% of domain migration to chinovalleyaz.gov completed.

100%

10%

50%

100%

N/A

% of door access control project completed at the Senior Center, Town Hall, Public Works, IT, Library, Municipal Court.

100%

N/A

10%

100%

N/A

% of data center wiring project completed at the Streets building, Public Works, and Senior Center.

100%

25%

75%

100%

N/A

% of migration of aging, end-of-life servers to Windows Server 2025.

100%

N/A

15%

100%

% of deployment of immutable backup storage for the Town's backup server.

100%

N/A

25%

100%

% of implementation of a redundant internet connection for Police EOC capabilities.

100%

N/A

25%

100%

Line No. Metric 1 % of domain migration to chinovalleyaz.gov completed.

Importance of Metric Metric Description This metric tracks the To ensure the timely and percentage of the domain efficient migration to migration to chinovalleyaz.gov the chinovalleyaz.gov that has been completed, domain, enhancing measuring progress in consistency, security, transitioning systems and and accessibility across services to the new domain. the Town's digital infrastructure.

Town of Chino Valley Budget FY 2026-27

Strategic Outcome Effective Government

Goal Collaborate and Engage

Goals and Performance Metrics

5-Year Capital Improvement Plan

Information Technology Services Department Performance Metrics Line No. Metric 2 % of door access control project completed at the Senior Center, Town Hall, Public Works, IT, Library, Municipal Court.

Importance of Metric Metric Description This metric tracks the To ensure the timely percentage of the door access installation of the door control project completed at access control system, the Town facilities, measuring improving security and progress toward full access management at implementation of the security Town facilities for system. enhanced safety and operational efficiency.

Strategic Outcome Quality Infrastructure

Goal Infrastructure and Asset Management

% of data center wiring project This metric tracks the completed at the Streets percentage of the data center building, Public Works, and wiring project completed at Senior Center. the Streets building, Public Works, and Senior Center, measuring the progress of the infrastructure upgrade.

To ensure the timely completion of the data center wiring project, enhancing the network infrastructure and improving connectivity, efficiency, and reliability at key Town facilities.

Quality Infrastructure

Infrastructure and Asset Management

% of migration of aging, end-of- This metric tracks the To ensure the timely and life servers to Windows Server percentage of the process of efficient upgrade of the 2025. migration of the Town's end-of- Town’s servers, keeping life servers over to the newest IT infrastructure current server platform. with industry standards.

Quality Infrastructure

Infrastructure and Asset Management

% of deployment of immutable This metric tracks the backup storage for the Town's percentage of the process of backup server. implementing an immutable backup storage solution for the Town's backup system.

Quality Infrastructure

Infrastructure and Asset Management

To ensure implementation of industry-standard backup practices that strengthen data resilience against cybersecurity threats.

Town of Chino Valley Budget FY 2026-27

Goals and Performance Metrics

Information Technology Services Department Performance Metrics Line Importance of Metric No. Metric Metric Description 6 % of implementation of a This metric tracks the To ensure the timely redundant internet connection percentage of installation and completion of the for Police EOC capabilities. configuration completed for a redundant internet redundant internet connection connectivity at the supporting Police EOC Police facility. capabilities.

Strategic Outcome Quality Infrastructure

Quality of Life

Town of Chino Valley Budget FY 2026-27

Goal Infrastructure and Asset Management

Safe and Secure Community

Goals and Performance Metrics

5-Year Capital Improvement Plan

Municipal Court Performance Metrics Line No.

Metric

Target or Baseline

Actual FY 23-24

Actual FY 24-25 5

# of monthly and as-needed staff meetings held to address immediate concerns.

N/A

# of quarterly Security and Emergency Preparedness Committee (SEPC) meetings held.

N/A

# of technology tools or platforms utilized to enhance court services.

N/A

Line No. Metric Metric Description 1 # of monthly and as-needed This metric tracks staff staff meetings held to address meetings, some of which immediate concerns. address regular business matters and others that address immediate operational concerns.

# of quarterly Security and Emergency Preparedness Committee (SEPC) meetings held.

Importance of Metric To ensure opportunities to communicate, collaborate, and problem-solve on a regular and impromptu basis, which will support an efficient work environment, encourage staff participation, and promote excellence in public service.

This metric tracks the Court’s To ensure the safety and compliance with the Security security of court staff, and Emergency Preparedness court visitors, and the Committee (SEPC) community remain at requirement to meet quarterly the forefront of decisionto address court security and making as security needs emergency preparedness evolve, while supporting concerns. both long-term security planning and continued adherence to established protocols and procedures.

Actual FY Forecast FY 25-26 26-27 12

N/A

Strategic Outcome Effective Government

Quality of Life

Goal Collaborate and Engage

Safe and Secure Community

Town of Chino Valley Budget FY 2026-27

Goals and Performance Metrics

Municipal Court Performance Metrics Line No. Metric 3 # of technology tools or platforms utilized to enhance court services.

Importance of Metric Metric Description Thismetric tracks the use of To ensure technology is technology in court used effectively to proceedings and court improve case operations to improve internal management efficiency, efficiencies and access to support a productive justice for the public. work environment for staff, and provide the public with improved access to court services and justice.

Town of Chino Valley Budget FY 2026-27

Strategic Outcome Effective Government

Goal Transparent Government Innovative and High-Performing Organization

Goals and Performance Metrics

5-Year Capital Improvement Plan

Police Department Performance Metrics Line No.

Metric

Target or Baseline

Actual FY 23-24

Actual FY 24-25

Actual FY Forecast FY 25-26 26-27

% of appropriate staff trained in Public Information Officer (PIO) related functions.

100%

N/A

100%

% of planned annual social media and public information activities completed.

100%

N/A

100%

% of identified community public safety priorities addressed through targeted enforcement actions.

100%

N/A

100%

% of applicable accreditation requirements maintained.

100%

N/A

100%

Line No. Metric Metric Description 1 % of appropriate staff trained This metric tracks the in Public Information Officer percentage of staff members (PIO) related functions. who have completed training in PIO-related functions, ensuring they are equipped with the skills necessary to manage public communications and media relations effectively.

Importance of Metric To ensure that staff members are properly trained in PIO functions, improving the organization’s ability to communicate effectively with the public and media, especially in times of crisis or significant public interest.

% of planned annual social This metric tracks completion To enhance the Town’s media and public information of planned annual social media communication efforts activities completed. and public information by increasing its social activities designed to expand media presence, thereby public awareness and improving information community engagement. dissemination, public awareness, and engagement with residents on important community matters.

Strategic Outcome Effective Government

Goal Transparent Government

Effective Government

Transparent Government

Town of Chino Valley Budget FY 2026-27

Goals and Performance Metrics

Police Department Performance Metrics Line No. Metric 3 % of identified community public safety priorities addressed through targeted enforcement actions.

% of applicable accreditation requirements maintained.

Importance of Metric Metric Description This metric tracks the To improve public safety identification of community and quality of life by needs and the implementation working with staff to of specific enforcement identify key community strategies aimed at addressing needs and establishing those needs, ensuring that targeted enforcement enforcement efforts are efforts that address aligned with community those priorities priorities. effectively and efficiently. This metric tracks the Department’s continued compliance with applicable accreditation standards and completion of required activities necessary to maintain its accredited status.

To support consistent law enforcement practices, accountability, and continuous improvement by maintaining compliance with established professional standards.

Strategic Outcome Quality of Life

Goal Safe and Secure Community

Quality of Life

Safe and Secure Community

Effective Government

Transparent Government Innovative and High-Performing Team

Town of Chino Valley Budget FY 2026-27

Goals and Performance Metrics

5-Year Capital Improvement Plan

Public Works Department Performance Metrics Line No.

Metric

Target or Baseline

Actual FY 23-24

Actual FY 24-25

Actual FY Forecast FY 25-26 26-27

% of implementation completed for GIS solution and SeeClickFix platform.

100%

N/A

92%

100%

% of Public Works staff who complete additional training and certification programs.

25%

N/A

80%

25%

% of completion of the annual chip seal maintenance project.

100%

N/A

90%

100%

% of progress made in regional water planning initiatives.

100%

N/A

25%

50%

% of completion of the Water Reclamation Facility Improvement design.

100%

N/A

15%

100%

% of completion of the PFAS remediation project.

100%

N/A

10%

20%

50%

% of completion of the Integrated Water Master Plan (IWMP).

100%

80%

90%

100%

N/A

25%

Line Importance of Metric No. Metric Metric Description 1 % of implementation This metric tracks the progress To enhance operational completed for GIS solution and of implementing a Geographic efficiency by utilizing GIS SeeClickFix platform. Information Systems (GIS) for spatial data solution and SeeClickFix management and platform, including setup, SeeClickFix to allow integration, and staff training, residents to report and to improve service delivery track non-emergency and public engagement. issues.

Strategic Outcome Effective Government

Goal Collaborate and Engage

Town of Chino Valley Budget FY 2026-27

Goals and Performance Metrics

Public Works Department Performance Metrics Line No. Metric 2 % of Public Works staff who complete additional training and certification programs.

Metric Description This metric tracks the percentage of Public Works employees who have successfully completed training and certification programs, measuring the department's commitment to staff development.

% of completion of the annual This metric tracks progress chip seal maintenance project. toward completion of the Town’s annual chip seal maintenance project.

Importance of Metric To enhance the skills, knowledge, and qualifications of staff by increasing participation in training and certification programs, leading to improved job performance, safety, and service delivery.

To ensure timely completion of planned chip seal improvements, supporting roadway maintenance, extending pavement life, and maintaining a safe and reliable transportation network.

Strategic Outcome Effective Government

Quality Infrastructure

Goal Innovative and High-Performing Organization

Infrastructure and Asset Management Sustainable Circulation

% of progress made in regional This metric tracks the progress To ensure the Water and Land water planning initiatives. of regional water planning development of regional Stewardship efforts, including collaboration water management with other agencies, plans that address development of water future water needs, management strategies, and promote sustainability, completion of planning and support regional documents. growth, safeguarding water resources for the region.

Sustainable Water Supply

% of completion of the Water This metric tracks progress To ensure timely Water and Land Reclamation Facility toward completion of the completion of the design Stewardship Improvement design. Water Reclamation Facility necessary to advance Improvement design, including improvements to the key planning, engineering, and Water Reclamation design milestones. Facility and support reliable, sustainable wastewater infrastructure.

Sustainable Water Supply

Town of Chino Valley Budget FY 2026-27

Goals and Performance Metrics

5-Year Capital Improvement Plan

Public Works Department Performance Metrics Line No. Metric 6 % of completion of the PFAS remediation project.

Importance of Metric Metric Description This metric tracks the progress To ensure the effective of the PFAS remediation mitigation and project, from initial management of PFAS, assessment and planning safeguarding public through mitigation efforts and health and compliance final resolution of water with environmental contamination issues. regulations, while improving the overall quality of the water system.

% of completion of the This metric tracks the progress To ensure completion of Integrated Water Master Plan of developing and finalizing the IWMP, which serves (IWMP). the Integrated Water Master as a comprehensive Plan (IWMP), including guide for managing planning, stakeholder Town water resources, engagement, and final addressing current and approval. future water needs, and supporting long-term growth and development.

Strategic Outcome Water and Land Stewardship

Goal Sustainable Water Supply

Water and Land Stewardship

Sustainable Water Supply

Quality Infrastructure

Expand Water and Sewer System

Town of Chino Valley Budget FY 2026-27

Goals and Performance Metrics

Town Clerk Department Performance Metrics Line No.

Metric

Target or Baseline

Actual FY 23-24 2

# of digital signage boards actively in operation.

% of departments trained and utilizing the records management program.

100%

N/A

% of elections administered successfully.

100%

% of candidate biographies added to the Town website.

100%

N/A

Line No. Metric 1 # of digital signage boards actively in operation.

Importance of Metric Metric Description This metric tracks the total To ensure important number of digital signage information, boards that are fully functional announcements, and and actively displaying updates are information. It measures the disseminated to the Town's capacity to community in a timely communicate with the public and accessible manner. through visual displays in key locations.

% of departments trained and This metric tracks the To ensure all utilizing the records percentage of departments departments are management program. that have been trained and are effectively trained and actively using the records utilizing the records management program. management program to improve document organization, compliance, and accessibility.

Town of Chino Valley Budget FY 2026-27

Actual FY 24-25

Actual FY Forecast FY 25-26 26-27

50%

75%

100%

N/A

Strategic Outcome Effective Government

Effective Government

Goal Connected Community

Innovative and High-Performing Organization Collaborate and Engage

Goals and Performance Metrics

5-Year Capital Improvement Plan

Town Clerk Department Performance Metrics Line No. Metric 3 % of elections administered successfully.

% of candidate biographies added to the Town website.

Importance of Metric Metric Description This metric measures the To ensure the successful percentage of elections administration of administered successfully, elections, promoting evaluating the effectiveness of accuracy, transparency, planning, execution, and and voter confidence by compliance with regulations. adhering to legal standards and best practices throughout the election process.

This metric tracks the To ensure transparency percentage of candidate and provide voters with biographies successfully added easy access to to the Town website. information about election candidates, enhancing informed decision-making and public engagement in the electoral process.

Strategic Outcome Effective Government

Goal Transparent Government

Effective Government

Transparent Government

Town of Chino Valley Budget FY 2026-27

Goals and Performance Metrics

Town Manager Department Performance Metrics Line No.

Metric

Target or Baseline

Actual FY 23-24

Actual FY 24-25 100%

% of planned annual engagement activities completed.

100%

N/A

% of completion of the Attorney workflow platform/process implementation.

100%

N/A

% of staff participating in development activities.

50%

N/A

# of social media posts, press releases, and other promotional activities conducted to publicize the Town's work.

N/A

% of planned annual activities completed to evaluate and develop employee intranet options in partnership with ITS.

100%

% of planned annual activities completed to evaluate and implement Customer Relationship Management (CRM) and engagement technologies in partnership with departments and ITS.

Actual FY Forecast FY 25-26 26-27 100%

100%

N/A

25%

100%

N/A

50%

160

187

225

N/A

100%

N/A

100%

% of completion of the website refresh/update project.

100%

N/A

75%

100%

% of completion of the acquisition of cemetery land and the implementation of operational procedures.

100%

N/A

100%

N/A

% of completion of establishing and actively engaging the Chino Valley Youth Advisory Commission.

100%

N/A

50%

75%

% of planned annual Economic Development magazine update activities completed.

100%

N/A

100%

# of tourism campaign initiatives coordinated with surrounding communities.

N/A

Town of Chino Valley Budget FY 2026-27

N/A

75%

N/A

Goals and Performance Metrics

5-Year Capital Improvement Plan

Town Manager Department Performance Metrics Line No.

Metric

Target or Baseline

Actual FY 23-24

Actual FY 24-25

Actual FY Forecast FY 25-26 26-27

# of external funding sources identified and pursued for the construction of an off-highway vehicle (OHV) staging area.

N/A

% of completion of the Peavine Trail extension from 4 North to State Park and Sullivan Lake.

100%

N/A

25%

50%

# of collaborative initiatives or meetings with State Park officials to enhance partnerships and projects.

N/A

Line No. Metric 1 % of planned annual engagement activities completed.

% of completion of the Attorney workflow platform/process implementation.

Metric Description This metric tracks the frequency and quality of interactions between the Town Manager’s office, citizens, the council, and staff, measuring efforts to enhance communication and collaboration.

Importance of Metric To strengthen relationships and improve transparency between citizens, council, and staff, fostering a more informed community and ensuring that decisions reflect collective input and collaboration.

This metric tracks the progress To enhance the of developing and timeliness and efficiency implementing a workflow of legal operations, platform/process for the enabling better task Attorney’s office to improve organization, reducing task management, case delays, and improving tracking, and overall workflow overall productivity. efficiency.

Strategic Outcome Effective Government

Effective Government

Goal Collaborate and Engage

Innovative and High-Performing Organization

Town of Chino Valley Budget FY 2026-27

Goals and Performance Metrics

Town Manager Department Performance Metrics Line No. Metric 3 % of staff participating in development activities.

Importance of Metric Metric Description This metric tracks the To promote continuous percentage of staff members learning and participating in professional professional growth by development activities, such as encouraging and training, workshops, and providing opportunities seminars, to measure the for staff development, organization’s commitment to leading to enhanced continuous staff growth. skills, job satisfaction, and overall organizational effectiveness.

Strategic Outcome Effective Government

Goal Innovative and High-Performing Organization

# of social media posts, press releases, and other promotional activities conducted to publicize the Town's work.

This metric tracks the frequency of social media posts, press releases, and other outreach methods used to promote and publicize the Town's efforts and achievements to the public.

To increase public awareness by promoting information through various channels, ensuring transparency, community involvement, and recognition of the services provided.

Effective Government

Connected Community

% of planned annual activities completed to evaluate and develop employee intranet options in partnership with ITS.

This metric tracks completion To improve internal of planned annual activities communication through conducted in partnership with implementation of an ITS to explore, evaluate, and efficient employee recommend potential intranet intranet platform, solutions for internal facilitating better communication and resource collaboration and sharing. information sharing across the organization.

Effective Government

Collaborate and Engage

Town of Chino Valley Budget FY 2026-27

Goals and Performance Metrics

5-Year Capital Improvement Plan

Town Manager Department Performance Metrics Line No. Metric 6 % of planned annual activities completed to evaluate and implement Customer Relationship Management (CRM) and engagement technologies in partnership with departments and ITS.

Metric Description This metric tracks completion of planned annual activities conducted with departments and ITS to evaluate and implement CRM and engagement technologies.

Importance of Metric To leverage CRM and other technologies to improve efficiency in managing interactions with residents and stakeholders, while promoting better engagement and satisfaction across the organization.

Strategic Outcome Effective Government

Collaborate and Engage

% of completion of the website This metric tracks the progress To enhance the overall refresh/update project. of refreshing and updating the functionality of the organization's website, website, ensuring that it including improvements to effectively meets the design, functionality, and needs of residents, content. stakeholders, and visitors, while reflecting the organization's goals and services.

Effective Government

% of completion of the acquisition of cemetery land and the implementation of operational procedures.

Quality Infrastructure

This metric tracks the progress To ensure timely of acquiring land for a new acquisition of cemetery cemetery and the subsequent land and the implementation of operational establishment of procedures to manage and efficient operations to maintain the facility. meet community needs, providing a wellmanaged and accessible facility for burial services.

Goal Innovative and High-Performing Organization

Transparent Government Collaborate and Engage

Infrastructure and Asset Management

Town of Chino Valley Budget FY 2026-27

Goals and Performance Metrics

Town Manager Department Performance Metrics Line No. Metric 9 % of completion of establishing and actively engaging the Chino Valley Youth Advisory Commission.

Importance of Metric Metric Description This metric tracks the progress To engage local youth in of establishing the Chino civic activities and Valley Youth Advisory decision-making Commission, including processes, promoting member appointments, leadership development, meetings, and active and fostering stronger engagement in community community involvement initiatives. among younger residents.

Strategic Outcome Effective Government

% of planned annual Economic This metric tracks the progress To provide up-to-date Financial Stability Development magazine of updating the Economic information on the update activities completed. Development magazine, Town's economic including revisions to content, development efforts, design, and information to attracting potential reflect current economic investors, businesses, initiatives and opportunities. and stakeholders while showcasing the community’s growth and opportunities for development.

# of tourism campaign initiatives coordinated with surrounding communities.

This metric tracks the number To boost local and Financial Stability of tourism-related campaigns regional tourism by and activities executed in collaborating with collaboration with surrounding neighboring communities, measuring the communities, creating a effectiveness of joint efforts to unified approach to promote regional tourism. attract visitors, enhance tourism offerings, and stimulate the local economy.

Town of Chino Valley Budget FY 2026-27

Goal Connected Community

Prosperous Community

Recreation and Tourism Opportunities Local Shopping Opportunities

Goals and Performance Metrics

5-Year Capital Improvement Plan

Town Manager Department Performance Metrics Line Importance of Metric No. Metric Metric Description 12 # of external funding sources This metric tracks the To obtain outside identified and pursued for the identification and pursuit of funding for the construction of an off-highway external funding sources to construction of an OHV vehicle (OHV) staging area. support the construction of an staging area, enhancing off-highway vehicle (OHV) recreational staging area, measuring efforts opportunities and to secure financial resources supporting tourism and beyond the Town’s budget. community engagement.

Strategic Outcome Financial Stability

% of completion of the Peavine Trail extension from 4 North to State Park and Sullivan Lake.

Financial Stability

Recreation and Tourism Opportunities

# of collaborative initiatives or This metric tracks the number meetings with State Park of collaborative efforts and officials to enhance engagements between the partnerships and projects. Town and State Park officials to foster partnerships, coordinate projects, and leverage resources for mutual benefit.

Water and Land Stewardship

Natural Resources and Open Spaces

This metric tracks overall To expand the Peavine progress toward completion of Trail, improving the Peavine Trail extension connectivity and from 4 North to State Park and recreational Sullivan Lake, including opportunities for planning, coordination, design, residents and visitors, funding, and construction while supporting the activities. community's goals for outdoor recreation and enhancing access to natural landmarks. To strengthen collaboration with State Parks, promoting joint projects that enhance recreational opportunities, conserve natural resources, and support tourism and community engagement.

Goal Recreation and Tourism Opportunities

Town of Chino Valley Budget FY 2026-27

Budget Process

Budget Process Overview The Town’s budget development process is a continuous collaborative effort led by the Town Manager, Finance Director, and department directors. It is designed to ensure compliance with state requirements and alignment with community priorities, and it follows a detailed calendar with mandated deadlines that serve as a roadmap for each budget cycle phase. The process begins with a community budget survey, where residents can identify what is most important to them and provide comments and direction on where they believe funds would be best utilized. Next, the department directors collaborate to establish initial priorities. A subsequent Council Budget Workshop provides an opportunity for the Town Council to define strategic goals and assess the financial outlook. Once those overarching priorities are in place, departments develop budget requests that align with Council direction and projected resources. Ongoing budget meetings between the Town Manager, Finance Director, and department directors allow for review and refinement of proposals, capital requests, and personnel needs, ensuring coordination across departments. Public engagement plays an increasingly important role in the process. An early community survey helped shape priorities and informed subsequent Council budget discussions. The Capital Improvement Plan Citizens Advisory Committee (CIPCAC) and the Parks and Recreation Advisory Board (PRAB) provided meaningful input on infrastructure and recreational needs. CIPCAC also serves as a public education tool, strengthening trust and transparency by helping residents understand the capital planning process and offering recommendations aligned with community goals. This process is designed to develop a transparent and community-informed budget aligned with strategic priorities and available resources. A Preliminary Budget is prepared and reviewed with the Town Council during budget hearings, then published as a draft on the Town’s website for public accessibility. Following any revisions, the Tentative Budget is presented to Council for adoption. Once adopted, the total appropriation may not be increased. The Tentative Budget is published twice in local media along with notice of the public hearing for final adoption and is also on the Town’s website. The final step is Final Budget Adoption. Following the public hearing, the Council formally adopts the Final Budget. Key components of the budget development process include: • Communication: Detailed information, forms, and deadlines are shared with each department, which submits department specific information, performance measures, and financial requests. • Coordination: Department directors collaborate to align budget requests with Town objectives, recognizing the need for cross-departmental coordination in decision-making. • Forecasting: Departments use short- and long-term forecasts to assess their ability to meet objectives. • Council Direction: Council policies and strategic goals guide the development of priorities and funding decisions. • Public Input: Input is gathered through the public survey, public hearings, and advisory groups such as CIPCAC and PRAB, ensuring that the budget reflects community values and needs. Occasionally, the Town may need to reallocate budget funds during the fiscal year after the budget has been adopted. This is managed through budget amendments. While departments may manage appropriations within established budgetary controls, transfers requiring changes between departments or funds are presented to Council for approval in accordance with the Town's budget amendment procedures. This process allows departments the flexibility to manage their budget allocations, with Council able to approve adjustments between departments or authorize the use of contingency funds to cover any overages. Town of Chino Valley Budget FY 2026-27

Budget Process

Budget Calendar December 2025 S

January 2026

February 2026

March 2026

April 2026 T

May 2026

June 2026 S

July 2026

Important Dates Public Input: Dec 8 - Budget survey open to public (closes Jan 5) Jun 23 - Public hearing for budget

Internal Deadlines for Departments: Dec 1 - Budget forms and workbooks available Feb 5 - Forms and workbooks due to Finance Director Feb 5 - Capital forms for 5-Year Plan due to Finance

CIPCAC Input: Feb 12 - Review of capital requests Feb 26 - Prioritization of capital requests Mar 12 - Prioritization of capital requests (if needed)

Internal Department Meetings: Jan 14-15 - Fleet Utilization Assessment meetings Feb 17-18 - Department operating budget meetings Feb 24-25 - Department operating budget meetings Mar 17-18 - Follow-up department meetings (if needed) May 20 - Budget information updates for staff

Council Input and Meetings: Dec 3 - Budget priorities survey open to Council Jan 26 - Strategic Plan and budget retreat Apr 13 - Preliminary Council budget review meeting Apr 27 - Preliminary Council budget review meeting May 12 - Additional budget discussion (if needed) May 26 - Tentative budget adoption and set public hearing Jun 23 - Public hearing for budget and final budget adoption Jul 14 - Adoption of CVSLID & MID Resolutions to set tax rates

Legal Steps: Jun 7 - Publish Schedule A and property tax levy Jun 11 - Send preliminary tax levy to County Jun 14 - Publish Schedule A and property tax levy Jun 26 - Send final budget schedules to Auditor General Jul 15 - Send final tax levy to County

Town of Chino Valley Budget FY 2026-27

Budget Process

Basis of Budgeting Versus Basis of Accounting The Town’s budget is prepared on a budgetary basis that differs in certain respects from generally accepted accounting principles (GAAP) used in the Town’s audited financial statements. These differences reflect the different purposes of the two documents. The budget is primarily a financial planning and appropriation-control document that identifies the resources available and expenditures authorized for the fiscal year. The audited financial statements are designed to report the Town’s financial position and results of operations in accordance with GAAP. As a result, the timing and classification of certain revenues and expenditures may differ between the adopted budget and the audited financial statements. For example, the budget generally recognizes the full cost of capital purchases when they are planned, while the audited financial statements capitalize qualifying assets and recognize their cost over time through depreciation. Similar differences may occur in the treatment of encumbrances, employee leave liabilities, and accrued interest. These differences do not represent inconsistencies in the Town’s financial records; rather, they reflect the different reporting objectives of budgeting and financial accounting. View the Town’s FY 2024-25 Annual Comprehensive Financial Report here: https://www.chinoaz.net/198/Financial-Reports. Key differences include: • Encumbrances: The budget recognizes amounts committed for purchases when funds are set aside. The audited statements recognize expenditures when the goods or services are received. •

Employee Leave: The budget does not record liabilities for earned but unused vacation and sick leave, while GAAP requires these obligations to be recognized.

•

Interest Costs: In the budget, interest is shown when payments are due. Under GAAP, interest that has accrued but not yet been paid must also be reported.

•

Depreciation: The budget does not include depreciation because it does not affect current cash flow. GAAP recognizes depreciation expense over the useful life of capital assets.

•

Capital Spending: The budget reports the full cost of capital purchases and projects when incurred. GAAP records these costs as assets and recognizes the expense over time through depreciation.

The basis of accounting used for financial reporting also varies by fund type. Governmental funds use modified accrual accounting, while enterprise funds use full accrual accounting. For budget purposes, all funds are presented on the Town’s budgetary basis, incorporating the adjustments described above. •

Governmental Funds (General Fund, Special Revenue Funds, etc.): Audited financial statements use modified accrual accounting, which generally recognizes revenues when they are available to finance current obligations and expenditures when the related liability is incurred. The budgetary basis generally follows this approach but includes the budget-specific adjustments described above.

•

Enterprise Funds (Water, Sewer, etc.): Audited financial statements use full accrual accounting, under which revenues are recognized when earned and expenses when incurred, regardless of when cash is received or paid. The budgetary basis differs from full accrual accounting in certain areas, particularly the treatment of capital expenditures, depreciation, and other items described above.

Town of Chino Valley Budget FY 2026-27

Budget Process

Basis of Accounting and Budgeting by Fund Type Fund

Basis of Accounting

Basis of Budgeting

GOVERNMENTAL FUNDS General Fund Special Revenue Funds Debt Service Funds Capital Project Funds

Modified Accrual Modified Accrual Modified Accrual Modified Accrual

Budgetary Basis Budgetary Basis Budgetary Basis Budgetary Basis

ENTERPRISE FUNDS Wastewater Fund Wastewater CIP Fund Water Fund Water CIP Fund

Full Accrual Full Accrual Full Accrual Full Accrual

Budgetary Basis Budgetary Basis Budgetary Basis Budgetary Basis

Note: The budgetary basis shown above is used for financial planning and appropriation control. While it generally follows the applicable accounting basis for each fund, certain transactions are treated differently for budgetary purposes, as described above. These differences are reconciled as part of the Town’s year-end financial reporting process.

Town of Chino Valley Budget FY 2026-27

RESOLUTION NO. 2026-1312 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE TOWN OF CHINO VALLEY, ARIZONA, ADOPTING THE FINAL BUDGET FOR THE FISCAL YEAR 2026/2027; SETTING AN EXPENDITURE LIMITATION FOR THE SAME YEAR; AND PROVIDING THAT THIS RESOLUTION SHALL BE EFFECTIVE FROM AND AFTER ITS PASSAGE AND APPROVAL ACCORDING TO THE LAW. WHEREAS, pursuant to the provisions of the laws of the State of Arizona, the Mayor and Council of the Town of Chino Valley (the “Town Council”) is required to adopt an annual budget for the Town of Chino Valley (the “Town”); and WHEREAS, on July 30, 2024, pursuant to Article 9, Section 20(9) of the Arizona Constitution, and Arizona Revised Statutes (“A.R.S.”) § 41-563.03(C), (E), and (G), the qualified voters of the Town approved Proposition 475, adopting an Alternative Expenditure Limitation for the Town; and WHEREAS, Proposition 475 provided that, as part of the budget process, the Mayor and Common Council shall annually, after public hearing, adopt an expenditure limitation to govern the budget; and WHEREAS, in accordance with A.R.S. § 42-17102, the Town Manager prepared and filed with the Town Council the Town Manager’s budget estimates for the fiscal year beginning July 1, 2026, and ending June 30, 2027 (“Fiscal Year 2026/2027”); and WHEREAS, on May 26, 2026, the Town Council approved Resolution 2026-1309 adopting (i) an expenditure limitation and (ii) estimates of revenues and expenditures for Fiscal Year 2026/2027; and WHEREAS, Resolution 2026-1309 also directed the Town Clerk to (i) make available the tentative budget for inspection, not later than seven days after the date of Resolution 2026-1309, at the Chino Valley Public Library, at the Chino Valley Town Hall, and on the official Town Website; and (ii) publish in the official Town newspaper once per week for two consecutive weeks (a) the official tentative budget and (b) a notice of the public hearing of the Town Council to hear taxpayers and make tax levies at designated times and places; and WHEREAS, due notice has been given by the Town Clerk as required by law that the Town Council would meet on June 23, 2026, at the Chino Valley Town Hall for the purposes of (i) hearing taxpayers on the proposed estimates, expenses, and tax levies as set forth in said estimates of revenues and expenditures and (ii) adopting the tentative budget as final; and WHEREAS, on June 23, 2026, the Town Council held a public hearing on the final budget as required by law; and WHEREAS, the revenues and expenses in the proposed final budget for Fiscal Year 2026/2027 do not exceed the estimates of revenues and expenditures shown on the published tentative budget. [CONTINUED ON THE FOLLOWING PAGE]

Resolution 2026-1312

June 23, 2026

Page 1

8087493.2

EXHIBIT A TO RESOLUTION NO. 2026-1312 [Estimates of Revenues and Expenditures] See following pages.

Resolution 2026-1312

June 23, 2026

8087493.2

Official Budget Forms Town of Chino Valley Fiscal year 2027

62 6/23 Arizona Auditor General

Official City/Town Budget Forms

Town of Chino Valley Table of Contents Fiscal year 2027

Resolution for the adoption of the budget Schedule A—Summary Schedule of estimated revenues and expenditures/expenses Schedule B—Tax levy and tax rate information Schedule C—Revenues other than property taxes Schedule D—Other financing sources/(uses) and interfund transfers Schedule E—Expenditures/expenses by fund Schedule F—Expenditures/expenses by department (as applicable) Schedule G—Full-time employees and personnel compensation

6/23 Arizona Auditor General

Official City/Town Budget Forms 63

Primary property tax levy

Secondary property tax levy

Estimated revenues other than property taxes

Other financing sources

Other financing (uses)

Interfund transfers in

Interfund Transfers (out) Line 11: Reduction for fund balance reserved for future budget year expenditures

2027

18,590,864

Budgeted expenditures/expenses

2027

6,112,576

1,213,802

4,282,371

1,053,187

19,146,497 0

$ $

46,716,189 46,716,189

46,716,189

2026 46,716,189

18,145,729

1,053,187

2,713,802

$ $

48,345,342 48,345,342

48,345,342

2027 48,345,342

6/23 Arizona Auditor General

Schedule A

48,345,342

61,580,780

Official City/Town Budget Forms

Includes expenditure/expense adjustments approved in the current year from Schedule E. Includes actual amounts as of the date the proposed budget was prepared, adjusted for estimated activity for the remainder of the fiscal year. Amounts on this line represent beginning fund balance/(deficit) or net position/(deficit) amounts except for nonspendable amounts (e.g., prepaids and inventories) or amounts legally or contractually required to be maintained intact (e.g., principal of a permanent fund). See the Instructions tab, cell C17 for more information about the amounts that should and should not be included on this line.

The city/town does not levy property taxes and does not have special assessment districts for which property taxes are levied. Therefore, Schedule B has been omitted.

Expenditure limitation comparison 1 Budgeted expenditures/expenses 2 Add/subtract: estimated net reconciling items 3 Budgeted expenditures/expenses adjusted for reconciling items 4 Less: estimated exclusions 5 Amount subject to the expenditure limitation 6 EEC expenditure limitation or voter-approved alternative expenditure limitation

26,460,671

Total financial resources available

2027

* ** ***

6,150,068

15,000,000

1,213,802

2,213,802

Maintained for future retirement contributions

8,609,742

1,500,000

15,000,000

500,000

1,213,802

17,595,775

3,615,536

26,833,858

1,584,148

46,716,189

3,192,872

3,207,062

30,038,192

3,670,998

15,285,534

16,885,716

6,344,068

3,582,264

2,765,674

1,293,732

6,627,464

Total all funds

9,574,955

2,075,707

1,293,732

Capital Projects Enterprise Internal Service Fund Permanent Fund Funds Available Funds

16,675,093

5,445,095

Debt Service Fund

18,064,364

Special Revenue Fund

Funds

Maintained for future financial stability

Maintained for future capital projects

General Fund

2027

Maintained for future debt retirement

Actual expenditures/expenses** Beginning fund balance/(deficit) or net position/(deficit) at July 1***

2026

2027

Adopted/adjusted budgeted expenditures/expenses*

2026

Fiscal year

S c h

Town of Chino Valley Summary Schedule of estimated revenues and expenditures/expenses Fiscal year 2027

Town of Chino Valley Tax levy and tax rate information Fiscal year 2027 2026 1. Maximum allowable primary property tax levy. A.R.S. §42-17051(A) 2. Amount received from primary property taxation in the current year in excess of the sum of that year's maximum allowable primary property tax levy. A.R.S. §42-17102(A)(18) 3. Property tax levy amounts A. Primary property taxes Property tax judgment B. Secondary property taxes Property tax judgment C. Total property tax levy amounts 4. Property taxes collected* A. Primary property taxes (1) Current year's levy (2) Prior years’ levies (3) Total primary property taxes B. Secondary property taxes (1) Current year's levy (2) Prior years’ levies (3) Total secondary property taxes C. Total property taxes collected

2027 $

$ $

$ $ $ $ $

5. Property tax rates A. City/Town tax rate (1) Primary property tax rate Property tax judgment (2) Secondary property tax rate Property tax judgment (3) Total city/town tax rate B. Special assessment district tax rates Secondary property tax rates—As of the date the proposed budget was prepared, the city/town was operating 4 special assessment districts for which secondary property taxes are levied. For information pertaining to these special assessment districts and their tax rates, please contact the city/town. * Includes actual property taxes collected as of the date the proposed budget was prepared, plus estimated property tax collections for the remainder of the fiscal year.

6/23 Arizona Auditor General

Schedule B

Official City/Town Budget Forms

Town of Chino Valley Revenues other than property taxes Fiscal Year 2027 Estimated revenues 2026

Source of revenues

Estimated revenues 2027

Actual revenues* 2026

General Fund Local taxes Transaction Privilege Taxes Franchise Taxes

8,786,260 415,110

Licenses and permits Building Permits Business Licenses Plan Check Fees Other Licenses and Permits

8,909,813 415,110

8,961,985 415,110

119,850 70,000 70,000 6,500

169,598 48,033 95,098 55,151

133,167 60,000 80,000 6,500

2,129,512 2,748,922 1,185,387 73,000 75,000 125,000

2,129,512 2,711,488 1,185,387 80,000 97,500

2,091,136 2,927,930 1,229,581 82,000 72,500

Charges for services Engineering Fees Senior Nutrition Program Fees Facility Use Fees Police Report Fees Aquatic Center Fees Other Charges for Services

7,500 350 46,000 7,500 50,000 5,074

7,862 924 46,735 10,513 50,172 2,750

7,725 360 47,380 7,725 51,500 5,227

Fines and forfeits Animal Control Fees Library Fines Court Fines and Forfeitures

28,000 1,000 140,500

28,000 2,078 140,500

28,560 1,000 143,330

Interest on investments Interest

500,000

496,735

458,000

Miscellaneous Sale of Fixed Assets Miscellaneous

10,000 41,115

5,578 108,551

25,000 50,000

Intergovernmental State Shared Transaction Privilege Tax State Shared Income Tax Vehicle License Tax Yavapai County Library Funds Police Dept Grants Senior Nutrition Grant

Total General Fund $

16,641,580

16,797,088

16,885,716

* Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year.

6/23 Arizona Auditor General

Schedule C

Official City/Town Budget Forms

Town of Chino Valley Revenues other than property taxes Fiscal Year 2027 Estimated revenues 2026

Source of revenues

Estimated revenues 2027

Actual revenues* 2026

Special revenue funds Highway User Revenue Interest Miscellaneous

1,464,860 18,280 5,850 1,488,990

1,419,163 15,000 3,500 1,437,663

3,500,000 3,500,000

$ $

472,704 472,704

$ $

4,844,280 4,844,280

Special Revenue Fund - Court $ Special Revenue Fund - PD Special Revenue Fund - Cemetery Maintenance Lighting Improvement Districts #1, #2, #3 Del Sol Improvement District $

28,000 5,000 14,250 4,650 2,750 54,650

23,582 5,310 1,373 4,650 2,750 37,665

28,000 5,000 10,100 4,650 14,375 62,125

Total special revenue funds $

5,038,010

1,999,359

6,344,068

$ $

2,701,865 12,068 2,713,933

4,590,071 5,000 4,595,071

3,182,872 10,000 3,192,872

Total capital projects funds $

4,595,071

2,713,933

3,192,872

$ $

1,179,857 2,396,978 3,576,835

1,091,580 2,996,655 4,088,235

1,182,512 2,433,024 3,615,536

Total enterprise funds $

4,088,235

3,576,835

3,615,536

Total all funds $

30,362,896

25,087,215

30,038,192

Miscellaneous Grants

1,464,860 15,000 3,500 1,483,360

$ $

Capital projects funds Capital Improvements Fund - General Fund Asset Replacement Fund

Enterprise funds Water Enterprise Fund Wastewater Enterprise Fund

* Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year.

6/23 Arizona Auditor General

Schedule C

Official City/Town Budget Forms

Town of Chino Valley Other financing sources/(uses) and interfund transfers Fiscal year 2027

Fund

Other financing 2027 Sources (Uses)

General Fund Transfer to Cap Asset Replacement $ Total General Fund $

$ $

Special revenue funds HURF Transfer to Streets CIP $ Total special revenue funds $

$ $

Debt service funds Trans from General CIP $ Total debt service funds $

$ $

Capital projects funds General CIP Trans to Debt Service $ General CIP Trans to Streets CIP Streets CIP Trans from General CIP Streets CIP Trans from HURF Total capital projects funds $ Enterprise funds Water CIP $ Wastewater CIP Total enterprise funds $ Total all funds $

6/23 Arizona Auditor General

Interfund transfers 2027 In (Out)

1,213,802 1,213,802

1,000,000 500,000 1,500,000

$ $ $

1,213,802 1,000,000

2,213,802

5,000,000 10,000,000 15,000,000

15,000,000

Schedule D

2,713,802

500,000 500,000

2,713,802

Official City/Town Budget Forms

Town of Chino Valley Expenditures/expenses by fund Fiscal year 2027

Fund/Department

Adopted budgeted expenditures/ expenses 2026

Expenditure/ expense adjustments approved 2026

General Fund Community Services $ Development Services Finance Human Resources Information Technology Services Mayor and Council Municipal Court Non-Departmental Police Public Works Town Clerk Town Manager Contingency Total General Fund $

1,504,417 1,706,924 668,130 678,539 680,593 81,237 438,489 819,224 5,983,855 3,666,947 483,541 707,239 934,000 18,353,135

Special revenue funds Highway User Revenue Fund $ Miscellaneous Grants Fund Special Revenue Fund - Court Special Revenue Fund - Police Special Rev Fund - Cemetery Lighting Improvement Districts Del Sol Improvement District Total special revenue funds $

1,588,215 3,636,025 17,200 5,000 9,300 4,650 2,750 5,263,140

Debt service funds Debt Service Fund $ Total debt service funds $

1,293,732 1,293,732

$ $

Actual expenditures/ expenses* 2026 $

1,312,167 1,435,112 658,130 648,539 672,665 77,237 435,739 896,672 5,891,605 3,491,947 468,041 687,239

16,675,093

$ $

1,621,349 323,887 59,312 54,459 9,300 4,650 2,750 2,075,707

1,158,233 4,863,818 57,200 5,000 9,300 4,650 14,375 6,112,576

$ $

1,293,732 1,293,732

$ $

1,213,802 1,213,802

460,441 121,823 3,000,000 3,582,264

2,102,371 180,000 2,000,000 4,282,371

8,536 77,448

(374,755) (288,771) $

90,384

42,112 49,459

181,955

Capital projects funds General Fund CIP $ Asset Replacement Fund Streets CIP Total capital projects funds $

3,308,441

197,200 121,823

3,000,000 6,308,441

319,023

Enterprise funds Water Enterprise Fund $ Water CIP Wastewater Enterprise Fund Wastewater CIP Total enterprise funds $ Total all funds $

824,736 2,175,000 2,792,564 9,705,441 15,497,741 46,716,189

90,384

(302,591) $ $

Budgeted expenditures/ expenses 2027

(212,207) $ $

777,120 18,845 2,103,973 307,124 3,207,062 26,833,858

$ $

1,361,441 1,548,340 686,382 663,980 646,943 78,150 465,377 1,055,920 6,260,550 3,619,891 531,992 731,898 940,000 18,590,864

891,659 5,156,155 2,564,655 9,533,260 18,145,729 48,345,342

* Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year.

6/23 Arizona Auditor General

Schedule E

Official City/Town Budget Forms

Town of Chino Valley Expenditures/expenses by department Fiscal year 2027

Department/Fund Community Services: General Fund $ Department total $

Adopted budgeted expenditures/ expenses

Expenditure/ expense adjustments approved

Actual expenditures/ expenses*

Budgeted expenditures/ expenses

2026

2027

1,504,417 1,504,417

$ $

1,312,167 1,312,167

$ $

1,361,441 1,361,441

Development Services: General Fund $ Department total $

1,706,924 1,706,924

$ $

1,435,112 1,435,112

$ $

1,548,340 1,548,340

Finance: General Fund $ Department total $

668,130 668,130

$ $

658,130 658,130

$ $

686,382 686,382

Human Resources: General Fund $ Department total $

678,539 678,539

$ $

648,539 648,539

$ $

663,980 663,980

Information Technology Services: General Fund $ Department total $

680,593 680,593

$ $

672,665 672,665

$ $

646,943 646,943

Mayor and Council: General Fund $ Department total $

81,237 81,237

$ $

77,237 77,237

$ $

78,150 78,150

Municipal Court: General Fund $ Special Rev Fund - Court Department total $

438,489 17,200 455,689

435,739 59,312 495,051

465,377 57,200 522,577

Non-Departmental: General Fund $ Miscellaneous Grants Fund Debt Service Fund General Fund CIP Asset Replacement Fund Department total $ Police: General Fund $ Special Rev Fund - Police Department total $

6/23 Arizona Auditor General

8,536 8,536

42,112 42,112

1,753,224 3,636,025 1,293,732 3,308,441

(297,307) $

9,991,422

197,200 121,823 21,716

5,983,855 5,000 5,988,855

$ $

Schedule F

$ $

49,459 49,459

896,672 323,887 1,293,732 460,441 121,823 3,096,555 5,891,605 54,459 5,946,064

$ $

$ $ $

1,995,920 4,863,818 1,213,802 2,102,371 180,000 10,355,911 6,260,550 5,000 6,265,550

Official City/Town Budget Forms

Town of Chino Valley Expenditures/expenses by department Fiscal year 2027

Department/Fund Public Works: General Fund $ Highway User Revenue Fund Streets CIP Special Rev Fund - Cemetery Department total $

Adopted budgeted expenditures/ expenses

Expenditure/ expense adjustments approved

Actual expenditures/ expenses*

Budgeted expenditures/ expenses

2026

2027

3,666,947 1,588,215 3,000,000 9,300 8,264,462

Town Clerk: General Fund $ Department total $

483,541 483,541

Town Manager: General Fund $ Department total $

3,491,947 1,621,349 3,000,000 9,300 8,122,596

3,619,891 1,158,233 2,000,000 9,300 6,787,424

$ $

468,041 468,041

$ $

531,992 531,992

707,239 707,239

$ $

687,239 687,239

$ $

731,898 731,898

Water: Water Enterprise Fund $ Water CIP Department total $

824,736 2,175,000 2,999,736

90,384

777,120 18,845 795,965

891,659 5,156,155 6,047,814

Wastewater: Wastewater Enterprise Fund $ Wastewater CIP Department total $

2,792,564 9,705,441 12,498,005

(302,591) $

2,103,973 307,124 2,411,097

Improvement Districts: Lighting Improvement Districts $ Del Sol Improvement District Department total $

4,650 2,750 7,400

4,650 14,375 19,025

Total all funds $

46,716,189

26,833,858

48,345,342

90,384 90,384

2,564,655 9,533,260 12,097,915

6/23 Arizona Auditor General

Schedule F

Official City/Town Budget Forms

72 3.5 3.5 7.0 139.8

Enterprise funds Water Enterprise Wastewater Enterprise Total enterprise funds

Total all funds

6/23 Arizona Auditor General

9.0 1.0 10.0

122.8

9,779,043

257,230 257,230 514,460

436,526 79,894 516,420

8,748,163

2027

Special revenue funds Highway User Revenue Fund Grant Fund Total special revenue funds

General Fund

Fund

Employee salaries and hourly costs

Full-time equivalent (FTE)

Schedule G

1,200,128

29,019 29,019 58,038

49,900 13,182 63,082

1,079,008

2027

Retirement costs

1,928,760

57,606 57,606 115,212

139,368 20,400 159,768

1,653,780

2027

Healthcare costs

Town of Chino Valley Full-time employees and personnel compensation Fiscal year 2027

13,999,435

374,961 374,961 749,922

709,063 124,416 833,479

12,416,034

2027

Official City/Town Budget Forms

1,091,504

31,106 31,106 62,212

83,269 10,940 94,209

935,083

2027

Other benefit costs

Total estimated personnel compensation

Fund Structure

Fund Structure Legal Compliance and Financial Management A fund is a group of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. To ensure legal compliance and financial management for the various restricted revenues and program expenditures, the Town’s accounting and budget structure is segregated into various funds. This approach is unique to the government sector; fund accounting segregates functions and activities into separate self-balancing funds that are created and maintained for specific purposes.

Fund Classification The Town’s budget is organized into governmental and enterprise funds, with appropriations adopted for the budgetary funds presented in this section. For purposes of this budget document, a major fund is any fund whose revenues or expenditures, excluding other financing sources and uses, constitute more than 10% of the revenues or expenditures of the appropriated budget. All appropriated funds are described below, with major funds identified by an asterisk in the Fund Structure graphic. Some budgetary funds are consolidated with other funds for financial reporting purposes, as identified in the graphic. Governmental Funds •

General Fund – the Town’s primary operating fund, used to account for resources that finance general governmental services.

•

Special Revenue Funds These funds account for specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects. o

Grant Fund – accounts for various grants received from federal or state agencies and funds that are donated to the Town for a variety of purposes.

Highway User Revenue Fund (HURF) – accounts for the Town’s share of Arizona’s highway user tax revenues and the related transportation expenditures.

Court Fund – accumulates funds specifically for the purpose of the municipal Court improvements and court collection program; it is reported in the financial statements consolidated with the General Fund.

Cemetery Fund – accumulates funds from the burial fees of the Town cemetery and the maintenance of the facility; it is reported in the financial statements consolidated with the General Fund.

Police Impoundment Fee Fund – accounts for funds collected from vehicle impoundment per ARS § 28-3511; it is reported in the financial statements consolidated with the General Fund.

Chino Valley Street Lighting Improvement District (CVSLID) Fund – accumulates funds for the electricity costs of the three lighting districts.

Del Sol Maintenance Improvement District (MID) Fund – accumulates funds for the landscape and drainage maintenance costs of the Del Sol district.

Town of Chino Valley Budget FY 2026-27

Fund Structure

•

Capital Project Funds These funds are used to account for financial resources to be used for the acquisition or construction of major capital projects. o

General Capital Improvement Fund – used to account for the additional 1.00% in the Town’s TPT to be used for capital improvements.

Capital Asset Replacement Fund – accumulates funds to be used for future replacement of vehicles or other major capital assets; it is reported in the financial statements consolidated with the General Fund.

Streets Capital Improvement Fund – accounts for large-scale street improvement projects; it is reported in the financial statements consolidated with HURF.

Debt Service Funds These funds are used to account for the accumulation of resources for, and the payment of general long-term debt principal and interest that are not serviced by the Enterprise Funds. o

Revenue Bonds Fund – accounts for debt service associated with various Town improvements, including the refinancing of prior bonds and financing of the Police Building.

Enterprise Funds These funds are used to account for operations, including debt service, which are financed and operated similarly to private businesses, where the intent is financial self-sufficiency with all costs supported predominantly by user charges. •

Wastewater Funds o Wastewater Fund – operating wastewater utility fund supported by user fees to pay the costs of operation. o

•

Wastewater Capital Improvement Fund – large-scale capital improvements for the wastewater system; it is reported in the financial statements consolidated with the Wastewater Fund.

Water Funds o Water Fund – operating water utility fund supported by user fees to pay the costs of operation. o

Water Capital Improvement Fund – large-scale capital improvements for the water system; it is reported in the financial statements consolidated with the Water Fund.

Town of Chino Valley Budget FY 2026-27

Fund Structure

Fund Structure Town of Chino Valley Budgetary Funds $48,345,342

Enterprise Funds

Governmental Funds

General Fund* $18,590,864

Special Revenue Funds

Highway User Revenue Fund $1,158,233 Grant Fund* $4,863,818

Court Fund $57,200

Cemetery Fund $9,300

Capital Projects Funds

General Capital Improvement Fund* $2,102,371

Debt Service Funds

Wastewater Fund $2,564,655

Water Fund $891,659

Revenue Bonds Fund $1,213,802

Wastewater Capital Improvement Fund* $9,533,260

Water Capital Improvement Fund* $5,156,155

Streets Capital Improvement Fund $2,000,000 Capital Asset Replacement Fund $180,000

Police Impoundment Fee Fund $5,000

Differences between budget funds and financial reporting funds: Consolidated with the General Fund in ACFR. Consolidated with HURF in ACFR.

Del Sol MID $14,375

Consolidated with the Wastewater Fund in ACFR. Consolidated with the Water Fund in ACFR.

CVSLID $4,650 *Denotes a major fund under GFOA budget presentation criteria.

Town of Chino Valley Budget FY 2026-27

Fund Structure

Department/Fund Relationship

Human Resources

Information Technology

Mayor and Council

Municipal Court

Non-Departmental

Police

Public Works

Town Clerk

Town Manager

General Fund

Finance

Fund

Development Services

Fund Type

Community Services

This table identifies the relationship between Town departments and the funds through which their activities are budgeted.

Cemetery Fund

Court Fund Grant Fund Special Revenue Funds

X X

Highway User Revenue Fund Police Impoundment Fee Fund

X X

Del Sol MID

Debt Service Funds

Revenue Bonds Fund

Capital Projects Funds

General Capital Improvement Fund Streets Capital Improvement Fund Capital Asset Replacement Fund

X X

CVSLID

Enterprise Funds

X X X

Wastewater Fund

Wastewater Capital Improvement Fund

Water Fund

Water Capital Improvement Fund

Town of Chino Valley Budget FY 2026-27

Financial Policies

Financial Policies Overview The policies in this section were adopted by Council Resolution No. 13-1010 on May 28, 2013. They are summarized here for ease of reference, providing a clear overview of the guidelines that shape the Town's financial management and decision-making processes. These policies include essential standards for budgeting, debt management, capital planning, investment practices, and financial reporting, ensuring responsible stewardship of public resources and promoting longterm fiscal sustainability.

Summary of Policy Measures Policy

Fund

Target

Result

Contingency

All

Contingency ≤5% of expenditure budgets

5.0%

Reserve

All

Stabilization reserve ≥ 25% of operating expenditures

58.0%

Debt Management

Governmental

Current asset-to-liability ratio ≥ 2:1

13.4:1

Operating Management/Budget Policies This section summarizes the policies governing the Town's budget process and financial management practices, ensuring fiscal responsibility, compliance, and efficient resource allocation. Key areas include: •

•

Budget Process and Compliance o Annual Budget Calendar: The budget process follows a calendar aligned with Arizona State statutes, ensuring timely completion of tasks required to adopt the annual budget. o Balanced Budget Requirement: Each fund must have a balanced budget, with expenditures matched by anticipated revenues and beginning unreserved fund balances above the required reserve. o Revenue and Expenditure Recognition: Revenues are recognized when measurable and available; expenditures are encumbered once a liability is incurred and are charged to the fiscal year they arise in. o Lapse of Budgeted Expenditures: Expenditures unencumbered by a purchase order lapse at fiscal year-end, while encumbered items must be received, invoiced by June 30, and paid within 60 days to remain within the budget year. Budgetary Controls o Fund-Level Adoption and Reallocation: Budgets are adopted at the fund level. Expenditure reallocations within funds require Town Manager approval, while capital reallocations need Council approval. o User Fees and Charges: Enterprise and non-enterprise user fees are reviewed annually. o Grant Management: Grant funds are used to leverage Town resources but are not relied upon for ongoing programs. Programs funded by grants are adjusted according to funding levels, and Town resources are only substituted after priority review in the budget process.

Town of Chino Valley Budget FY 2026-27

Financial Policies

•

Budget Development and Forecasting o Strategic, Multi-Year Planning: The Town uses strategic fiscal planning with conservative revenue projections and modified zero-base expenditure analysis, requiring annual justification of all programs. o Balanced Revenue/Expenditure Forecasts: Annual three-year forecasts (with a five-year outlook) are developed to assess the Town's ability to support operational costs amid economic changes and service demands. Capital and One-Time Revenue Use o Capital Expenditures and Operating Impact: All capital projects are evaluated for long-term operational impacts and aligned with sustainable resources for both initial investment and maintenance. o One-Time Revenues: Revenues from non-recurring sources are used for capital or non-recurring expenses, not for operational expenses with long-term impacts. Personnel and Service Management o Personnel Requests: New staffing is only requested when essential to meet service needs, following a thorough assessment of cost-benefit and potential revenue gains or efficiency improvements. o Outside Agency Funding: Funding for outside agencies is provided based on the agency's alignment with Town needs and goals and completion of the Town’s application process. Alternative Service Delivery o Evaluation of Service Alternatives: Departments collaborate annually with the Finance Department to explore alternative service delivery methods, assessing options to provide quality services at competitive costs. Investment Management o Cash and Investment Policies: Cash and investments are managed by the Town Code, prioritizing principal safety, liquidity, and return on investment.

Capital Management Policy This section outlines the Town's approach to managing capital improvements through careful planning, prioritization, and funding strategies. The policy ensures that capital projects align with the Town's goals, maintain infrastructure, and support long-term financial sustainability. Key components include: •

•

Capital Improvement Plan (CIP) o Five-Year Plan: A rolling five-year Capital Improvement Plan (CIP) is developed and updated annually, detailing anticipated funding sources for planned projects. o Project Definition: Capital projects are defined as infrastructure or equipment purchases or construction that create a capital asset valued at over $50,000 with a useful life of five years or more. Funding for Repair and Replacement o The CIP allocates resources for ongoing maintenance, repairs, and infrastructure replacement to prevent significant unfunded liabilities and maintain the Town’s assets in good condition. Project Prioritization and Evaluation o Review Process: A cross-departmental team reviews and prioritizes proposed capital projects, assessing accurate costs (design, capital, and operating) and alignment with the Town’s goals and objectives. o Priority Criteria: Projects receive priority based on criteria such as mandatory or regulatory need, economic development potential, efficiency improvements, service necessity, high usage, cost reduction, grant funding availability, prior commitments, and enhancement of health, safety, and welfare.

Town of Chino Valley Budget FY 2026-27

Financial Policies

•

Coordination with Operating Budget o The CIP is integrated with the Operating Budget to account for future operating, maintenance, and replacement costs of new capital improvements. Forecasted costs are matched to available resources, and each project contract award includes a fiscal impact statement detailing expected future operating impacts and timelines. Funding Mechanisms o Pay-As-You-Go Financing: To minimize debt reliance, the Town prioritizes pay-as-you-go financing methods for capital projects. This approach uses available revenue sources such as fund balances, developer contributions, grants, and other non-debt resources wherever feasible.

Debt Management Policy This section outlines the policy guiding the Town’s debt management approach to ensure fiscal responsibility, minimize borrowing costs, and maintain flexibility in financial planning. Key policy areas include: •

•

Bond Rating Maintenance o The Town will strive to maintain or improve its bond rating, minimizing borrowing costs and securing access to credit. Debt Impact Analysis and Interjurisdictional Communication o Each new bond issue proposal will be accompanied by an analysis showing how it affects the Town’s debt capacity and compliance with debt policies. o The Town will coordinate with other jurisdictions sharing the tax base to align collective debt planning and minimize overlapping tax burdens. Types of Debt o General Obligation Debt: Supported by property tax revenues, General Obligation debt is issued as approved by voters and will be managed to align with the Town’s assessed valuation and property tax capacity. o Revenue-Based Debt: Voter-approved debt, such as water, sewer, and Highway User Revenue Fund (HURF) debt, will be supported by dedicated revenue sources (e.g., fees and user charges). Debt Service Limitations o Total debt service costs across all debt types should not exceed 25% of the Town’s operating revenue, ensuring flexibility and manageable fixed costs. Debt Issuance Management o General Obligation debt will be issued annually in alignment with Capital Improvement Plan cash flow needs, keeping the property tax burden below $1.50 per $100 of assessed value. Non-Voter Approved Debt o Municipal Property Corporation and Contractual Debt: Non-voter-approved debt will only be used if supported by a dedicated revenue source, such as an additional sales tax, to cover debt service expenses. Debt Duration and Repayment o Debt financing terms will not exceed the useful life of the associated infrastructure, ensuring repayment aligns with the asset's benefit period. Liquidity Ratio o The Town will maintain a current asset-to-liability ratio of at least 2:1 for Governmental Funds, ensuring adequate resources to cover short-term obligations.

Town of Chino Valley Budget FY 2026-27

Financial Policies

Reserve Policy This policy supports fiscal stability, emergency preparedness, and efficient asset management. • •

• •

Annual Evaluation: All fund designations and reserves will be reviewed each year for adequacy as part of the Town’s five-year financial planning. Stabilization Reserve: A reserve equal to 25% of operating expenditures for General Government and Enterprise funds will be maintained for emergencies. Excess reserves beyond 25% may be invested in economic opportunities, pending Council review. No Negative Fund Balances: All funds must maintain positive balances. Equipment Reserve Fund: An equipment reserve will be funded as General Fund revenues allow, supporting timely equipment and vehicle replacements. Operating departments will be charged for replacements over the assets' useful lives.

Contingency Policy The Town will maintain a contingency account equal to 5% of the combined expenditure budget for the General, HURF, and Enterprise funds. This contingency is reserved to address unanticipated revenue shortfalls, unexpected cost increases, or urgent events affecting public health or safety. Contingency funds will only be used after exploring all other budget sources and require Town Council approval.

Financial Reporting Policy The Town's financial reporting policy ensures transparency, compliance, and fiscal accountability in all financial operations. Key areas include: • • • • • • •

Compliance and Standards: Financial systems and reporting adhere to state and federal laws, GAAP, GASB, and GFOA standards. Monthly Reporting: The Finance Department issues monthly financial reports to Town leadership by the second Council meeting each month, with reports available on the Town’s website. Revenue and Expenditure Alerts: The Town Manager and Finance Director must notify the Council if General, HURF, or Enterprise fund revenues decrease by more than 10% or if any major fund risks going over budget. Annual Financial Report: Due to the State Auditor’s Office by December 31, the report is available to the Council, bonding agencies, and the public, with an oral presentation to the Council, typically early December. Annual Audit: An independent audit, covering all funds and compliance with laws, is budgeted and performed annually. Grant funding also undergoes financial and compliance audits. Five-Year Audit Services Review: Every five years, the Town issues RFPs for auditing services, with contracts awarded based on proposals and approved by the Town Council. Internal Controls: Robust controls are maintained for revenue, expenditure, and program monitoring to safeguard assets, prevent losses, and uphold legal compliance, including prosecuting illegal acts like theft.

Town of Chino Valley Budget FY 2026-27

Budget Overview

Budget Overview Overview The FY 2026-27 budget provides the financial resources necessary to maintain Town services, invest in infrastructure and equipment, meet debt obligations, and advance the Town’s priorities for the coming year. Total estimated revenues and transfers in, excluding planned use of beginning fund balance, are $47,751,994, an increase of 6.0% from the FY 2025-26 adopted budget. An additional $3,307,150 of beginning fund balance is budgeted to support planned expenditures, bringing the total FY 2026-27 budget to $51,059,144, a 3.3% increase over the prior year. A significant portion of the budget continues to be dedicated to capital investment. Capital outlay totals $22.5 million, representing approximately 44% of the total budget. These investments support Town facilities, equipment, utilities, streets, and other infrastructure necessary to provide services to the community. Personnel services total $14.0 million, or approximately 27% of the budget, and provide funding for the employees who deliver Town programs and services. The budget also includes approximately $5.9 million for ongoing operating expenditures and $2.2 million for one-time operating expenditures. Separating ongoing and one-time costs helps distinguish recurring service needs from purchases and projects that are not expected to continue at the same level in future years. The remaining budget provides for debt service, transfers between funds, and contingency. For presentation and financial management purposes, the Town organizes expenditures into seven major categories: • Personnel Services budget is $13,999,435 and consists of salaries and fringe benefits for all Town employees. • Operating Expenditures budget is $5,923,536 and finances the day-to-day provision of Town services and operational costs. • One-Time Operating Expenditures budget is $2,245,355 and finances purchases or services that occur infrequently or are nonrecurring. • Other Expenditures budget is $1,037,000 which consists of budgetary contingency available for unforeseen needs. • Capital Outlay budget is $22,511,122 and funds equipment and improvements of Town facilities and infrastructure. • Debt Service budget is $2,628,894 and provides for principal and interest payments on Town debt, primarily associated with large-scale capital improvements. • Transfers Out budget is $2,713,802 and represents the amount of funds transferred between Town funds to support expenditures accounted for in another fund. The following charts and tables provide additional detail on the FY 2026-27 budget, illustrating how resources are allocated across expenditure types and departments and the revenues that support Town services and investments.

Town of Chino Valley Budget FY 2026-27

Budget Overview

FY 2026-27 Total Expenditures by Category Capital $22,511,122 44.1%

Debt Service $2,628,894 5.2% Transfers Out $2,713,802 5.3%

Other Expenditures $1,037,000 2.0% One-Time Operating Expenditures $2,245,355 4.4%

Personnel $13,999,435 27.4%

Governmental Funds General Fund Special Revenue Funds Cemetery Fund Court Fund Grant Fund Highway User Revenue Fund Police Impoundment Fee Fund

$ 12,416,034 $ 4,146,541

Total

Transfers Out

Debt Service

Capital

Other Expenditures

One-Time Operating

Personnel

Fund

Operating Expenditures

Operating Expenditures $5,923,536 11.6%

$ 893,289 $ 940,000

$ 195,000

$ 18,590,864

124,416 709,063 -

9,300 7,200 128,000 429,170 5,000

1,292,330 -

50,000 3,319,072 20,000 -

500,000 -

9,300 57,200 4,863,818 1,658,233 5,000

CVSLID Fund

4,650

Del Sol MID Fund Debt Service Funds Revenue Bonds Fund

14,375

1,213,802

59,736

180,000 2,042,635

2,213,802

180,000 4,316,173

Capital Project Funds Capital Asset Repl. Fund General Capital Improv. Fund

2,000,000

Total Governmental Funds

Streets Capital Improv. Fund

13,249,513

4,744,236

2,245,355

940,000

7,806,707

1,213,802

2,713,802

32,913,415

Enterprise Funds Wastewater Fund Wastewater Capital Fund

374,961 -

780,400 -

58,000 -

9,533,260

1,351,294 -

2,564,655 9,533,260

Water Fund

374,961

398,900

39,000

15,000

63,798

891,659

Water Capital Improv. Fund Total Enterprise Funds

749,922

1,179,300

97,000

5,156,155 14,704,415

1,415,092

5,156,155 18,145,729

$ 13,999,435 $ 5,923,536 $ 2,245,355 $ 1,037,000 $ 22,511,122 $ 2,628,894 $ 2,713,802

$ 51,059,144

Total All Funds

Town of Chino Valley Budget FY 2026-27

Budget Overview

FY 2026-27 Total Expenditures by Department Community Services $4,743,802 Human Resources 9.3% $663,980 1.3% Development Services $1,548,340 3.0%

Public Works $25,785,219 50.5%

Municipal Court $522,577 1.0%

Police

Public Works

Town Clerk

Town Manager

$ 1,996

$ 6,261

$ 3,620

$ 532

$ 732 $ 18,591

Total

NonDepartmental

$531,992 1.0%

$ 78 $ 465

Mayor and Council

Governmental Funds General Fund $ 1,361 $ 1,548 $ 686 $ 664 $ 647 Special Revenue Funds Cemetery Fund Court Fund Grant Fund 2,697 Highway User Revenue Fund Police Impound. Fee Fund -

Town Manager $731,898 1.4% Municipal Court

Finance $686,382 1.3% Information Technology

Human Resources

Finance

Community Services

Fund

Development Services

Mayor and Council $78,150 Police 0.2% $6,569,966 12.9%

Information Technology $646,943 1.3% Non-Departmental $8,549,895 Town Clerk 16.8%

57 -

1,750 -

124 5

9 292 1,658 -

9 57 4,864 1,658 5

CVSLID Fund

Del Sol MID Fund Debt Service Funds Revenue Bonds Fund Capital Project Funds Capital Asset Repl. Fund General Capital Improv. Fund

1,214

685

3,571

180 -

180 4,316

Streets Capital Improv. Fund

2,000

Total Governmental Funds

4,744

1,548

686

664

647

523

8,550

6,570

7,639

532

732

32,913

Enterprise Funds Wastewater Fund Wastewater Capital Fund

2,565 9,533

Water Fund

892

Water Capital Improv. Fund Total Enterprise Funds

5,156 18,146

$ 78 $ 523

$ 8,550

$ 6,570

$ 25,785

$ 532

Total All Funds

$ 4,744 $ 1,548 $ 686 $ 664 $ 647

Town of Chino Valley Budget FY 2026-27

$ 732 $ 51,059

Budget Overview

FY 2026-27 Total Revenues Transaction Privilege Tax $11,144,857 23.3%

Transfers In/Other Financing Sources $17,713,802 37.1%

Franchise & Property Tax $434,135 1.0%

Miscellaneous $1,106,000 2.3%

Licenses and Permits $279,667 0.6%

$280

$6,403

$120

$173

$458

$75

$16,886

1,419 -

4,844 -

10 3 -

26 5

2 15 -

1 -

10 28 4,844 1,438 5

Total

Fines and Forfeitures

Grants

Transfers In/Other Financing Sources

Miscellaneous

$415

Charges for Services

$8,962

Franchise & Property Tax

Investment Earnings

Grants $4,844,280 10.1%

Intergovernmental Revenues

Governmental Funds General Fund Special Revenue Funds Cemetery Fund Court Fund Grant Fund Highway User Revenue Fund Police Impound. Fee Fund

Transaction Privilege Tax

Fund

Intergovernmental Revenues $7,822,310 16.4%

Licenses and Permits

Investment Earnings $516,000 1.1% Fines and Forfeitures Charges for Services $3,687,053 $203,890 7.7% 0.4%

CVSLID Fund

Del Sol MID Fund Debt Service Funds Revenue Bonds Fund Capital Project Funds Capital Asset Repl. Fund General Capital Improv. Fund

1,214

2,183

10 -

1,000

10 3,183

1,500

Total Governmental Funds

Streets Capital Improv. Fund

11,145

434

280

7,822

4,844

133

204

485

1,076

2,714

29,136

Enterprise Funds Wastewater Fund Wastewater Capital Fund

2,382 -

31 -

20 -

10,000

2,433 10,000

Water Fund

1,173

1,183

Water Capital Improv. Fund Total Enterprise Funds

3,555

5,000 15,000

5,000 18,616

$11,145

$434

$280

$7,822

$4,844

$3,687

$204

$516

$1,106

$17,714

$47,752

Total All Funds

Town of Chino Valley Budget FY 2026-27

Fund Balance

Fund Balance Overview The table below presents the estimated beginning and ending budgetary fund balances for all governmental and enterprise funds. For budgetary purposes, fund balances represent estimated available cash resources and may differ from fund balance or net position reported in the Town’s audited financial statements under GAAP. When appropriate, available reserves are used to fund planned expenditures, particularly capital projects and other one-time costs. Budgetary fund balances exclude non-spendable amounts, including prepaids, inventories, capital assets net of accumulated depreciation and related debt, and amounts that are legally or contractually required to remain intact.

Budgetary Fund Balances (Including Transfers) Fund Governmental Funds General Fund Special Revenue Funds Cemetery Fund Court Fund Grant Fund Highway User Revenue Fund Police Impoundment Fee Fund CVSLID Del Sol MID Debt Service Funds Revenue Bonds Fund Capital Project Funds Capital Asset Repl. Fund General Capital Improv. Fund Streets Capital Improv. Fund Total Governmental Funds Enterprise Funds Wastewater Fund Wastewater Capital Fund Water Fund Water Capital Improv. Fund Total Enterprise Funds Total All Funds

Estimated Beginning Fund Balance 07/01/26

Revenues and Other Financing Sources

Expenditures and Other Financing Uses

$9,574,955

$16,885,716

$18,590,864

88,625 108,807 716,882 1,810,239 40,397 262 462

10,100 28,000 4,844,280 1,437,663 5,000 4,650 14,375

Estimated Ending Fund Balance 06/30/27

$ Change Fund Balance

% Change Fund Balance

$7,869,807 $(1,705,148)

-17.8%

9,300 57,200 4,863,818 1,658,233 5,000 4,650 14,375

89,425 79,607 697,344 1,589,669 40,397 262 462

800 (29,200) (19,538) (220,570) -

0.9% -26.8% -2.7% -12.2% 0.0% 0.0% 0.0%

1,213,802

0.0%

340,070 2,699,806 631,122 16,011,627

10,000 3,182,872 1,500,000 29,136,458

180,000 4,316,173 2,000,000 32,913,415

170,070 1,566,505 131,122 12,234,670

(170,000) (1,133,301) (500,000) (3,776,957)

-50.0% -42.0% -79.2% -23.6%

293,005 (217,124) 1,467,112 41,155 1,584,148

2,433,024 10,000,000 1,182,512 5,000,000 18,615,536

2,564,655 9,533,260 891,659 5,156,155 18,145,729

161,374 249,616 1,757,965 (115,000) 2,053,955

(131,631) 466,740 290,853 (156,155) 469,807

-44.9% N/A* 19.8% N/A* 29.7%

$17,595,775

$47,751,994

$51,059,144

$14,288,625 $(3,307,150)

-18.8%

*N/A – Percentage change is not presented when the estimated fund balance changes between a positive and negative balance. Town of Chino Valley Budget FY 2026-27

Fund Balance

Change in Fund Balance Major Funds - All major funds are addressed. •

General Fund: (17.8%) – Fund balance is expected to decrease by $1,705,148, primarily due to planned investments in capital and one-time projects, including $893,289 in one-time operating expenditures (which includes a $250,000 additional contribution toward the unfunded PSPRS liability), $195,000 in capital, and $940,000 in contingency. The ending fund balance is estimated at $7,869,807.

•

Grant Fund: (2.7%) – Fund balance is expected to decrease by $19,538 due to the planned use of accumulated Smart and Safe and other special-purpose funds. The ending fund balance is estimated at $697,344.

•

General Capital Improvement Fund: (42.0%) – Fund balance is expected to decrease by $1,133,301 due to planned capital and one-time investments such as $1,000,000 for chip seal projects and $530,000 for Community Center Park Improvements. The ending fund balance is estimated at $1,566,505.

•

Wastewater Capital Improvement Fund: N/A* – Fund balance is expected to increase by $466,740, from a negative beginning balance of $217,124 to an estimated positive ending balance of $249,616. The increase is primarily attributable to WIFA loan proceeds supporting the large-scale improvement project at the wastewater treatment facility.

•

Water Capital Improvement Fund: N/A* – Fund balance is expected to decrease by $156,155, from a positive beginning balance of $41,155 to an estimated negative ending balance of $115,000, reflecting planned capital investment during the fiscal year, specifically the completion of the fill station improvements.

Nonmajor Funds - Nonmajor funds that are projected to increase or decrease in fund balance by 10.0% or more are listed below with an explanation for the change. •

Highway User Revenue Fund: (12.2%) – Fund balance is expected to decrease by $220,570, reflecting planned investments in capital, such as $500,000 for chip seal projects. The ending fund balance is estimated at $1,589,669.

•

Court Fund: (26.8%) – Fund balance is projected to decrease by $29,200, primarily due to planned court security improvements. The ending fund balance is estimated at $79,607.

•

Capital Asset Replacement Fund: (50.0%) – Fund balance is projected to decrease by $170,000 due to the planned purchase of two police vehicles. The ending fund balance is estimated at $170,070.

•

Streets Capital Improvement Fund: (79.2%) – Fund balance is projected to decrease by $500,000 due to planned investments in chip seal projects. The ending fund balance is estimated at $131,122.

•

Wastewater Fund: (44.9%) – Fund balance is expected to decrease by $131,631, resulting in an estimated ending balance of $161,374.

•

Water Fund: 19.8% – Fund balance is expected to increase by $290,853, resulting in an estimated ending balance of $1,757,965. The increase reflects revenues exceeding planned expenditures for the fiscal year.

*N/A – Percentage change is not presented when the estimated fund balance changes between a positive and negative balance.

Town of Chino Valley Budget FY 2026-27

Financial Schedules and Forecast

Financial Schedules and Forecast Overview This section presents consolidated and fund-level financial schedules for the Town’s major and nonmajor funds, including FY 2023-24 and FY 2024-25 actuals, FY 2025-26 projections, the FY 2026-27 budget, and projections for FY 2027-28 through FY 2029-30. The schedules provide a long-range view of anticipated revenues, expenditures, capital needs, and available resources based on current information and planning assumptions. By extending beyond the annual budget period, the forecast provides additional perspective on the potential financial effects of current decisions and anticipated future needs. Fund balances presented in this section are shown on a budgetary basis for long-range planning purposes and may differ from fund balance or net position reported in the Town’s audited financial statements due to differences in the basis of accounting and presentation. For long-range forecasting purposes, Water and Wastewater operating and capital improvement activities are combined, although these activities are presented separately elsewhere in the budget. Historical Water and Wastewater budgetary balances are derived using information reported in the audited financial statements, with projected balances rolled forward beginning in FY 2025-26.

Assumptions Future-year projections are based on the following key assumptions: • Transaction Privilege Tax (TPT): Minimal growth in TPT revenues is projected based on recent collection trends and known changes affecting taxable classifications. Future projections assume modest annual growth from the FY 202627 budgeted amount. Actual collections will continue to be monitored as economic conditions and taxable activity change. • Capital Improvement Plan (CIP): Capital expenditures are based on projects identified in the Town’s Five-Year Capital Improvement Plan. The timing and cost of capital projects may change as project scopes, cost estimates, grant opportunities, and other funding sources are refined. Future-year capital needs may also include planned or identified projects for which funding has not yet been secured. Accordingly, negative projected fund balances may indicate future funding needs rather than authorized deficit spending. Projects will proceed only as funding is identified and appropriated. • Personnel Costs: Personnel costs are generally projected to increase approximately 3% to 5% annually to account for potential cost-of-living and merit adjustments and changes in benefit costs. The projections do not assume the addition of new positions. Future staffing changes, if needed, would be evaluated through the annual budget process based on service needs and available resources. • Operating Costs: Operating expenditures are projected based on current service levels and anticipated cost increases. Where specific information is not available, modest annual inflationary increases are applied. Actual costs may vary based on factors such as utilities, contractual services, supplies, maintenance requirements, and other operating conditions.

Town of Chino Valley Budget FY 2026-27

Financial Schedules and Forecast

• Debt Service: Debt service expenditures are based on scheduled principal and interest payments for existing and anticipated debt obligations. Forecasted amounts are adjusted as appropriate to reflect the timing of anticipated financing and scheduled repayment requirements. Long-range financial forecasting provides a framework for evaluating future revenues, expenditures, capital needs, and funding requirements. The forecast also provides an opportunity to identify potential structural imbalances, future funding needs, and other financial pressures before they affect an annual budget. This allows the Town to consider potential adjustments as additional information becomes available and priorities are refined. These projections are planning estimates based on information available at the time the forecast was prepared and are subject to change as economic conditions, project schedules, funding sources, and operational needs evolve. The forecasts are intended to support long-term planning and inform future budget decisions; they do not constitute future appropriations. Actual revenues and expenditures will continue to be evaluated through the Town’s annual budget process.

Town of Chino Valley Budget FY 2026-27

Financial Schedules and Forecast

General Fund Revenues Taxes - Local Intergovernmental Licenses and Permits Charges for Services Fines and Forfeitures Investment Earnings Grants Miscellaneous Other Financing Sources Transfers In Total Revenues and Other Financing Sources

FY 2023-24

FY 2024-25

FY 2025-26

FY 2026-27

FY 2027-28

FY 2028-29

FY 2029-30

Actual

Projected

Budget

Projected

9,181,666 7,120,735 391,011 133,836 174,333 745,147 76,097 400,000

9,362,753 6,404,876 288,560 140,159 207,871 558,356 117,569 163,919

9,808,016 6,334,190 471,302 128,102 196,773 469,441 135,518 -

9,377,095 6,403,147 279,667 119,917 172,890 458,000 75,000 -

9,564,637 6,531,210 282,464 121,116 174,619 448,840 50,000 -

9,755,930 6,661,834 285,289 122,327 176,365 439,863 50,000 -

9,951,049 6,795,071 288,142 123,550 178,129 431,066 50,000 -

18,222,825

17,244,063

17,543,342

16,885,716

17,172,886

17,491,608

17,817,007

10,343,269 3,198,579 1,149,958 329,794 407,661 3,250,000

11,289,284 3,442,524 823,516 955,906 100,000

11,202,874 3,928,565 465,888 257,788 -

12,416,034 4,146,541 893,289 940,000 195,000 -

12,788,515 4,229,472 100,000 250,000

13,172,170 4,314,061 100,000 250,000

13,567,335 4,400,342 100,000 250,000

18,679,261

16,611,230

15,855,115

18,590,864

17,367,987

17,836,231

18,317,677

Net Change in Fund Balances

(456,436)

632,833

1,688,227

(1,705,148)

(195,101)

(344,623)

(500,670)

Fund Balances - Beginning

9,276,563

8,820,127

9,452,960

11,141,187

9,436,039

9,240,938

8,896,315

9,452,960

$ 11,141,187

Expenditures Personnel Operating One-time Other Capital Debt Service Transfers Out Total Expenditures and Other Financing Uses

Fund Balances - Ending

8,820,127

9,436,039

9,240,938

8,896,315

8,395,645

Fund Balance Presentation: Fund balances presented in this section are shown on a budgetary basis for long-range planning purposes and may differ from fund balance or net position reported in the Town’s audited financial statements due to differences in the basis of accounting and presentation.

Town of Chino Valley Budget FY 2026-27

Financial Schedules and Forecast

Grant Fund Revenues Taxes - Local Intergovernmental Licenses and Permits Charges for Services Fines and Forfeitures Investment Earnings Grants Miscellaneous Other Financing Sources Transfers In Total Revenues and Other Financing Sources

FY 2023-24

FY 2024-25

FY 2025-26

FY 2026-27

FY 2027-28

FY 2028-29

FY 2029-30

Actual

Projected

Budget

Projected

380,546 -

849,728 -

568,759 -

4,844,280 -

3,257,428 -

3,262,565 -

3,270,471 -

380,546

849,728

568,759

4,844,280

3,257,428

3,262,565

3,270,471

104,004 113,440 23,798 -

109,592 134,376 57,038 391,486 -

185,015 137,076 137,447 -

124,416 128,000 1,292,330 3,319,072 -

128,148 129,280 1,250,000 2,000,000 -

131,992 130,573 1,250,000 2,000,000 -

138,592 131,879 1,000,000 2,000,000 -

241,242

692,492

459,538

4,863,818

3,507,428

3,512,565

3,270,471

Net Change in Fund Balances

139,304

157,236

109,221

(19,538)

(250,000)

Fund Balances - Beginning

271,125

410,429

567,665

676,886

657,348

407,348

157,348

Expenditures Personnel Operating One-time Other Capital Debt Service Transfers Out Total Expenditures and Other Financing Uses

Fund Balances - Ending

410,429

567,665

676,886

657,348

407,348

157,348

Town of Chino Valley Budget FY 2026-27

Financial Schedules and Forecast

Highway User Revenue Fund Revenues Taxes - Local Intergovernmental Licenses and Permits Charges for Services Fines and Forfeitures Investment Earnings Grants Miscellaneous Other Financing Sources Transfers In Total Revenues and Other Financing Sources

FY 2023-24

FY 2024-25

FY 2025-26

FY 2026-27

FY 2027-28

FY 2028-29

FY 2029-30

Actual

Projected

Budget

Projected

1,366,497 3,251 23,095 165,138 -

1,379,698 12,966 21,166 5,975 -

1,427,730 3,420 18,470 24,813 -

1,419,163 2,500 15,000 1,000 -

1,433,355 2,500 15,000 5,000 -

1,447,689 2,500 15,000 5,000 -

1,462,166 2,500 15,000 5,000 -

1,557,981

1,419,805

1,474,433

1,437,663

1,455,855

1,470,189

1,484,666

Expenditures Personnel Operating One-time Other Capital Debt Service Transfers Out Total Expenditures and Other Financing Uses

600,914 326,014 530,445 349,369

721,151 294,460 398,245 200,000

695,034 349,163 442,882 250,000

709,063 429,170 20,000 500,000

730,335 433,462 500,000

752,245 437,797 500,000

774,812 446,553 500,000

1,806,742

1,613,856

1,737,079

1,658,233

1,663,797

1,690,042

1,721,365

Net Change in Fund Balances

(248,761)

(194,051)

(262,646)

(220,570)

(207,942)

(219,853)

(236,699)

Fund Balances - Beginning

2,135,410

1,886,649

1,692,598

1,429,952

1,209,382

1,001,440

781,587

Fund Balances - Ending

1,886,649

1,692,598

1,429,952

1,209,382

Town of Chino Valley Budget FY 2026-27

1,001,440

781,587

544,888

Financial Schedules and Forecast

General Capital Improvement Fund Revenues Taxes - Local Intergovernmental Licenses and Permits Charges for Services Fines and Forfeitures Investment Earnings Grants Miscellaneous Other Financing Sources Transfers In Total Revenues and Other Financing Sources

FY 2023-24

FY 2024-25

FY 2025-26

FY 2026-27

FY 2027-28

FY 2028-29

FY 2029-30

Actual

Projected

Budget

Projected

2,928,190 500,000

2,976,363 -

3,137,425 2,000 -

2,182,872 1,000,000 -

2,226,529 1,100,000 -

2,271,060 1,000,000 -

2,316,481 1,000,000 -

3,428,190

2,976,363

3,139,425

3,182,872

3,326,529

3,271,060

3,316,481

246,380 616,995 2,178,000

455,872 1,086,099 2,397,981

88,495 324,556 2,443,732

59,736 2,042,635 2,213,802

3,575,000 2,491,788

5,440,000 2,497,235

1,625,000 2,501,144

3,041,375

3,939,952

2,856,783

4,316,173

6,066,788

7,937,235

4,126,144

Net Change in Fund Balances

386,815

(963,589)

282,642

(1,133,301)

(2,740,259)

(4,666,175)

(809,663)

Fund Balances - Beginning

2,478,888

2,865,703

1,902,114

2,184,756

1,051,455

(1,688,804)

(6,354,979)

Expenditures Personnel Operating One-time Other Capital Debt Service Transfers Out Total Expenditures and Other Financing Uses

Fund Balances - Ending

2,865,703

1,902,114

2,184,756

1,051,455

$ (1,688,804) $ (6,354,979) $ (7,164,642)

Note: Projected capital expenditures in future years include planned or identified projects for which funding sources have not yet been secured. Negative projected fund balances indicate future funding needs and do not represent authorized deficit spending. Projects will proceed only as funding is identified and appropriated.

Town of Chino Valley Budget FY 2026-27

Financial Schedules and Forecast

Wastewater Fund Revenues Taxes - Local Intergovernmental Licenses and Permits Charges for Services Fines and Forfeitures Investment Earnings Grants Miscellaneous Other Financing Sources Transfers In Total Revenues and Other Financing Sources

FY 2023-24

FY 2024-25

FY 2025-26

FY 2026-27

FY 2027-28

FY 2028-29

FY 2029-30

Actual

Projected

Budget

Projected

1,999,475 51,862 15,216 10,282 500,000

2,268,418 47,601 18,232 620,000

2,352,417 41,377 14,521 90,000

2,382,024 31,000 20,000 10,000,000 -

2,405,844 31,000 20,000 -

2,429,903 31,000 20,000 -

2,454,202 31,000 20,000 -

2,576,835

2,954,251

2,498,315

12,433,024

2,456,844

2,480,903

2,505,202

360,109 692,030 149,082 1,199,819 878,290 -

406,837 641,988 162 330,745 879,042 -

373,000 639,890 479,305 890,946 -

374,961 780,400 58,000 9,533,260 1,351,294 -

386,210 780,400 20,000 58,000 500,000 1,373,752 -

397,796 780,400 20,000 58,000 1,034,072 -

409,730 780,400 20,000 58,000 1,037,087 -

3,279,330

2,258,774

2,383,141

12,097,915

3,118,362

2,290,268

2,305,217

Net Change in Fund Balances

(702,495)

695,477

115,174

335,109

(661,518)

190,635

199,985

Fund Balances - Beginning

(1,374,750)

(2,122,521)

(1,427,044)

(1,311,870)

(976,761)

(1,638,279)

(1,447,644)

Expenditures Personnel Operating One-time Other Capital Debt Service Transfers Out Total Expenditures and Other Financing Uses

Fund Balances - Ending

$ (2,077,245) $ (1,427,044) $ (1,311,870) $

(976,761) $ (1,638,279) $ (1,447,644) $ (1,247,659)

Note: For long-range forecasting purposes, the Water and Wastewater funds include both operating and capital improvement activities. These activities are presented separately elsewhere in the budget for budgetary purposes. Historical Water and Wastewater budgetary balances are derived using information reported in the audited financial statements, with projected balances rolled forward beginning in FY 2025-26. Wastewater fund balances reflect available budgetary resources and exclude restricted debt service reserves. The Wastewater Fund also has an outstanding interfund obligation to the General Fund. Negative balances reflect the system's available budgetary position and should not be interpreted as total enterprise net position reported in the Town's audited financial statements.

Town of Chino Valley Budget FY 2026-27

Financial Schedules and Forecast

Water Fund Revenues Taxes - Local Intergovernmental Licenses and Permits Charges for Services Fines and Forfeitures Investment Earnings Grants Miscellaneous Other Financing Sources Transfers In Total Revenues and Other Financing Sources

FY 2023-24

FY 2024-25

FY 2025-26

FY 2026-27

FY 2027-28

FY 2028-29

FY 2029-30

Actual

Projected

Budget

Projected

828,346 15,216 5,185 50,000

1,128,826 12,005 -

1,359,842 8,632 60,000

1,172,512 10,000 5,000,000 -

1,184,237 10,000 -

1,219,764 10,000 -

1,256,357 10,000 -

898,747

1,140,831

1,428,474

6,182,512

1,194,237

1,229,764

1,266,357

339,899 367,866 56,587 129,164 28,700 50,000

311,593 371,853 22,739 28,460 -

362,242 379,071 123,136 28,718 -

374,961 398,900 39,000 5,171,155 63,798 -

386,210 402,889 39,000 500,000 67,412 -

397,796 406,918 39,000 67,840 -

409,730 410,987 39,000 67,431 -

972,216

734,645

893,167

6,047,814

1,395,511

911,554

927,148

Net Change in Fund Balances

(73,469)

406,186

535,307

134,698

(201,274)

318,210

339,209

Fund Balances - Beginning

793,955

729,140

1,135,326

1,670,633

1,805,331

1,604,057

1,922,267

Expenditures Personnel Operating One-time Other Capital Debt Service Transfers Out Total Expenditures and Other Financing Uses

Fund Balances - Ending

720,486

1,135,326

1,670,633

1,805,331

1,604,057

1,922,267

2,261,476

Town of Chino Valley Budget FY 2026-27

Financial Schedules and Forecast

Nonmajor Governmental Funds Revenues Taxes - Local Intergovernmental Licenses and Permits Charges for Services Fines and Forfeitures Investment Earnings Grants Miscellaneous Other Financing Sources Transfers In Total Revenues and Other Financing Sources

FY 2023-24

FY 2024-25

FY 2025-26

FY 2026-27

FY 2027-28

FY 2028-29

FY 2029-30

Actual

Projected

Budget

Projected

3,901 33,187 18,055 500,000 109,361 4,377,369

4,836 28,203 14,771 6,430 2,077,981

7,348 1,525 30,921 13,987 115,285 2,543,732

19,025 10,100 31,000 12,000 2,713,802

19,406 10,302 31,620 12,240 3,241,788

19,794 10,508 32,252 12,485 3,247,235

20,190 10,718 32,897 12,735 3,251,144

5,041,873

2,132,221

2,712,798

2,785,927

3,315,356

3,322,274

3,327,684

16,311 6,474,351 1,276,252 -

20,863 2,250,230 1,264,490 163,919

23,231 2,858,995 1,274,758 -

40,525 2,230,000 1,213,802 -

25,000 2,150,000 1,241,788 -

25,000 2,000,000 1,247,235 -

25,000 2,000,000 1,251,144 -

7,766,914

3,699,502

4,156,984

3,484,327

3,416,788

3,272,235

3,276,144

Net Change in Fund Balances

(2,725,041)

(1,567,281)

(1,444,186)

(698,400)

(101,432)

50,039

51,540

Fund Balances - Beginning

7,917,791

5,192,750

3,625,469

2,181,283

1,482,883

1,381,451

1,431,490

Expenditures Personnel Operating One-time Other Capital Debt Service Transfers Out Total Expenditures and Other Financing Uses

Fund Balances - Ending

5,192,750

Town of Chino Valley Budget FY 2026-27

3,625,469

2,181,283

1,482,883

1,381,451

1,431,490

1,483,030

Financial Schedules and Forecast

Total All Funds FY 2023-24

FY 2024-25

FY 2025-26

FY 2026-27

FY 2027-28

FY 2028-29

FY 2029-30

Actual

Projected

Budget

Projected

$ 12,113,757 8,487,232 391,011 2,964,908 207,520 838,159 910,978 366,063 5,827,369

$ 12,343,952 7,784,574 288,560 3,550,369 236,074 641,894 849,728 160,211 2,861,900

12,952,789 7,761,920 471,302 3,845,306 227,694 543,275 568,759 300,769 2,693,732

$ 11,578,992 7,822,310 279,667 3,687,053 203,890 516,000 4,844,280 1,106,000 15,000,000 2,713,802

$ 11,810,572 7,964,565 282,464 3,723,999 206,239 507,080 3,257,428 1,185,000 3,241,788

$ 12,046,784 8,109,523 285,289 3,785,002 208,617 498,348 3,262,565 1,085,000 3,247,235

$ 12,287,720 8,257,237 288,142 3,847,327 211,026 489,801 3,270,471 1,085,000 3,251,144

32,106,997

28,717,262

29,365,546

47,751,994

32,179,135

32,528,363

32,987,868

11,748,195 4,600,800 1,715,447 329,794 9,382,233 2,183,242 5,827,369

12,838,457 4,906,064 1,359,327 5,412,711 2,171,992 2,861,900

12,818,165 5,456,996 691,830 4,486,662 2,194,422 2,693,732

13,999,435 5,923,536 2,245,355 1,037,000 22,511,122 2,628,894 2,713,802

14,419,418 6,000,503 1,370,000 97,000 8,725,000 2,682,952 3,241,788

14,851,999 6,094,749 1,370,000 97,000 9,440,000 2,349,147 3,247,235

15,300,199 6,195,161 1,120,000 97,000 5,625,000 2,355,662 3,251,144

35,787,080

29,550,451

28,341,807

51,059,144

36,536,661

37,450,130

33,944,166

Net Change in Fund Balances

(3,680,083)

(833,189)

1,023,739

(3,307,150)

(4,357,526)

(4,921,767)

(956,298)

Fund Balances - Beginning

21,498,982

17,782,277

16,949,088

17,972,827

14,665,677

10,308,151

5,386,384

Fund Balances - Ending

$ 17,818,899

$ 16,949,088

17,972,827

$ 14,665,677

$ 10,308,151

Revenues Taxes - Local Intergovernmental Licenses and Permits Charges for Services Fines and Forfeitures Investment Earnings Grants Miscellaneous Other Financing Sources Transfers In Total Revenues and Other Financing Sources Expenditures Personnel Operating One-time Other Capital Debt Service Transfers Out Total Expenditures and Other Financing Uses

5,386,384

4,430,086

Note: Total ending balances are presented for budgetary planning purposes and combine governmental fund balances with enterprise fund available budgetary resources. Historical enterprise balances are derived independently from audited financial statements and, accordingly, beginning balances between actual years may not equal the preceding year's ending balance. These amounts are not equivalent to fund balance or net position reported in the Town's audited financial statements.

Town of Chino Valley Budget FY 2026-27

Revenues

Revenues Overview This section provides an overview of the Town’s primary revenue sources, including the structure, permitted use, and key assumptions underlying each source. Historical data is also presented to illustrate collection trends and provide context for current revenue projections. Collectively, the revenue sources discussed in this section represent 90.6% of the Town’s $30,038,192 in total budgeted revenues, excluding other financing sources, for fiscal year 2026-27.

Taxes – Local Transaction Privilege Taxes These revenues stem from the Transaction Privilege Tax (TPT) imposed by the Town on specific business activities within its limits. The Town has an agreement with the Arizona Department of Revenue, which administers and collects TPT on behalf of the Town and subsequently distributes the Town’s share of collections. Tax details received from the state are confidential and cannot be disclosed to the public. •

Rate Structure – The current tax rate of 4.0% is charged on all taxable categories, except for manufactured buildings, use tax, and the rental of commercial property which have a 3.0% tax rate. Approximately 65.5% of the total TPT revenue comes from retail sales, with the remainder collected primarily from construction, communications/utilities, and restaurants & bars.

•

Permitted Use – TPT revenues are the Town’s largest revenue source, representing approximately 37.1% of revenues excluding other financing sources. Of the TPT collected, 1.00% is used to fund capital improvement projects and debt service.

•

Assumptions – The Town’s revenue forecast incorporates historical collection trends, recent business activity, and current economic conditions. The Town experienced strong revenue growth driven by population increases and inflation for several years. More recently, the pace of growth has moderated. While construction revenues were strong over the last quarter of fiscal year 2025-26, this activity is not expected to continue at the same level throughout fiscal year 2026-27. Given these changes, the Town has budgeted $11,144,857 for fiscal year 2026-27, reflecting a 4.0% decrease from projected fiscal year 2025-26 revenues.

Local Transaction Privilege Tax Revenue

2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26* 2026-27*

6,312,096 7,009,860 7,962,355 9,326,248 10,615,250 11,789,069 11,712,758 11,905,452 11,611,678 11,144,857

Increase (Decrease)

734,056 697,764 952,495 1,363,893 1,289,002 1,173,819 (76,311) 192,694 (293,774) (466,821)

Percent Change

13.2% 11.1% 13.6% 17.1% 13.8% 11.1% -0.6% 1.6% -2.5% -4.0%

LOCAL TRANSACTION PRIVILEGE TAX 14 12 10 8 6 4 2 0

Millions

Fiscal Year

2018 2019 2020 2021 2022 2023 2024 2025 2026* 2027* Actual Projected Budgeted

*Fiscal year 2025-26 reflects projected amounts and fiscal year 2026-27 reflects budgeted amounts. Town of Chino Valley Budget FY 2026-27

Revenues

Intergovernmental Revenues Intergovernmental revenues represent one of the Town’s major revenue sources at 26.0% of revenues excluding other financing sources and are estimated at $7,822,310 for fiscal year 2026-27. The following table and graphs depict various intergovernmental revenue categories. State Income Tax (Urban Revenue Sharing) – In 1972 the voters of Arizona approved the Urban Revenue Sharing program which requires the State to share income tax revenue with incorporated cities and towns. •

Rate Structure – For fiscal year 2026-27, the Town shares in the 18.0% portion of state income tax (not the 15.0% as in years prior to FY 2023-24) collected based on population numbers of the official U.S. Census Bureau estimates from June of the prior year. The percentage increase from 15.0% to 18.0% is to mitigate the effect of the State’s adoption of the 2.5% flat income tax rate.

•

Permitted Use – These funds may be utilized for any municipal purpose and are deposited in the General Fund.

•

Assumptions – This revenue source is influenced by economic conditions, including employment levels, corporate profits, tax credits, and exemptions, as well as legislative changes at the state level. Statewide income tax distributions are projected to increase approximately 9.75% for fiscal year 2026-27. However, because state-shared revenues are distributed to cities and towns based on population, the Town is not expected to realize the full statewide increase. Chino Valley’s population growth has not kept pace with growth in other Arizona municipalities, resulting in a smaller share of the statewide distribution. Based on estimates provided by the League of Arizona Cities and Towns, the Town has budgeted $2,927,930 in stateshared income tax revenue for fiscal year 2026-27, an increase of 8.0% from fiscal year 2025-26 projected revenue.

Fiscal Year

2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26* 2026-27*

Revenue

1,393,419 1,417,474 1,552,162 1,768,560 1,700,042 2,559,453 3,622,169 2,938,837 2,711,488 2,927,930

Increase (Decrease)

30,888 24,055 134,688 216,398 (68,518) 859,411 1,062,716 (683,332) (227,349) 216,442

Percent Change

2.3% 1.7% 9.5% 13.9% -3.9% 50.6% 41.5% -18.9% -7.7% 8.0%

Millions

State Income Tax 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0

STATE INCOME TAX

2018 2019 2020 2021 2022 2023 2024 2025 2026* 2027* Actual

Projected

Budgeted

*Fiscal year 2025-26 reflects projected amounts and fiscal year 2026-27 reflects budgeted amounts.

Town of Chino Valley Budget FY 2026-27

Revenues

State Transaction Privilege Tax – This revenue source is derived from TPT that the State imposes on the sale of goods. The State establishes a distribution base to share with all incorporated cities and towns. •

Rate Structure – The Town receives a portion of the State's total TPT collections. Each tax classification contributes a specific percentage to the distribution base, of which cities and towns collectively receive 25.0%. The State TPT rate is 5.6%.

•

Permitted Use – State-shared TPT revenue can be used for any municipal public purpose, with no restrictions on its usage. These funds are deposited into the General Fund.

•

Assumptions – A 1.8% decrease in the fiscal year 2026-27 distribution is anticipated compared to fiscal year 2025-26 projected revenue. While statewide TPT collections are projected to increase by approximately 1.19%, the Town’s share of the statewide distribution is expected to decline due to slower population growth relative to other Arizona cities and towns. Based on projections from the League of Arizona Cities and Towns, state-shared TPT distributions to the Town are estimated at $2,091,136 for fiscal year 2026-27.

Fiscal Year

2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26* 2026-27*

Revenue

1,084,425 1,179,854 1,291,713 1,467,611 1,834,785 1,994,400 2,066,470 2,120,247 2,129,512 2,091,136

Increase (Decrease)

64,173 95,429 111,860 175,898 367,174 159,615 72,070 53,777 9,265 (38,376)

Percent Change

6.3% 8.8% 9.5% 13.6% 25.0% 8.7% 3.6% 2.6% 0.4% -1.8%

Millions

State Transaction Privilege Tax 2.5

STATE TRANSACTION PRIVILEGE TAX

2.0 1.5 1.0

0.5 0.0

2018 2019 2020 2021 2022 2023 2024 2025 2026*2027* Actual

Projected

Budgeted

Vehicle License Tax (VLT) – This tax is imposed by the Arizona Constitution as an “in-lieu” tax for all ad valorem property taxes on motor vehicles. This revenue is distributed to the State, counties, and cities. •

Rate Structure – Approximately 20.0% of VLT revenues collected by the Arizona Department of Transportation are distributed to cities and towns. Chino Valley’s share is determined based on the county in which vehicles are registered and the Town’s population relative to the total population of incorporated cities and towns within Yavapai County.

•

Permitted Use – VLT revenues may be used for any municipal public purpose and are therefore deposited in the General Fund.

•

Assumptions – Statewide VLT distributions to cities and towns are estimated to increase approximately 3.0% in fiscal year 2026-27. Based on distribution estimates provided by the League of Arizona Cities and Towns, the Town has budgeted $1,229,581 in VLT revenue, an increase of 3.7% from fiscal year 2025-26 projected revenue.

*Fiscal year 2025-26 reflects projected amounts and fiscal year 2026-27 reflects budgeted amounts. Town of Chino Valley Budget FY 2026-27

Revenues

Fiscal Year

2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26* 2026-27*

Revenue

766,485 826,894 852,404 1,049,654 1,016,479 1,098,783 1,104,694 1,189,453 1,185,387 1,229,581

Increase (Decrease)

54,133 60,409 25,510 197,250 (33,175) 82,304 5,911 84,759 (4,066) 44,194

Percent Change

7.6% 7.9% 3.1% 23.1% -3.2% 8.1% 0.5% 7.7% -0.3% 3.7%

Millions

Vehicle License Tax 1.50

VEHICLE LICENSE TAX

1.25 1.00 0.75 0.50 0.25

0.00 2018 2019 2020 2021 2022 2023 2024 2025 2026*2027*

Actual

Projected

Budgeted

Highway User Revenue Fund (HURF) – These revenues are derived primarily from the State’s motor fuel tax, along with use fuel taxes, vehicle license tax revenues, motor carrier taxes, operator license fees, and other transportation-related revenues. HURF revenues are reported in a Special Revenue Fund due to statutory restrictions on their use. •

Rate Structure – Cities and towns receive 27.5% of statewide HURF collections. One-half of each municipality’s distribution is based on its population relative to the total population of all incorporated cities and towns in Arizona. The remaining half is based on gasoline sales within the county of origin and the municipality’s population relative to the total incorporated population within that county.

•

Permitted Use – Pursuant to State statute, HURF revenues are restricted to street and highway purposes, including eligible right-of-way costs and debt service on highway and street bonds.

•

Assumptions – Statewide HURF distributions to cities and towns are estimated to decrease approximately 1.55% in fiscal year 2026-27. HURF collections and individual municipal distributions are affected by factors including fuel consumption, vehicle fuel efficiency, and population-based allocation formulas. Based on estimates provided by the Arizona Department of Transportation, the Town has budgeted $1,419,163 in HURF revenue for fiscal year 2026-27, a decrease of 3.1% from fiscal year 2025-26 projected revenue.

Highway User Revenue 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26* 2026-27*

Revenue

941,628 1,027,157 1,223,272 1,191,368 1,269,251 1,342,997 1,366,497 1,379,698 1,464,860 1,419,163

Increase (Decrease)

17,602 85,529 196,115 (31,904) 77,883 73,746 23,500 13,201 85,162 (45,697)

Percent Change

1.9% 9.1% 19.1% -2.6% 6.5% 5.8% 1.7% 1.0% 6.2% -3.1%

1.75 1.50 1.25 1.00 0.75 0.50 0.25 0.00

Millions

Fiscal Year

HIGHWAY USER REVENUE

2018 2019 2020 2021 2022 2023 2024 2025 2026*2027* Actual

Projected

Budgeted

*Fiscal year 2025-26 reflects projected amounts and fiscal year 2026-27 reflects budgeted amounts.

100

Town of Chino Valley Budget FY 2026-27

Revenues

Grants The Town receives grant funding from federal, state, county, and other governmental agencies to support programs, services, and capital improvement projects. Grant funding allows the Town to leverage outside resources for projects and activities that may otherwise be difficult to fund with existing Town revenues. Some grant programs provide recurring support, such as the Senior Nutrition Program for Senior Center food purchases and Governor’s Office of Highway Safety (GOHS) grants, while other awards are associated with specific one-time projects. •

Rate Structure – Grant revenues vary significantly from year to year based on available funding opportunities, eligibility requirements, and the success of the Town’s grant applications. Because grants are not considered a stable or recurring revenue source, grant-funded expenditures generally proceed only when the associated funding is awarded and available.

•

Permitted Use – Grant revenues are restricted to the purposes authorized by the applicable grant agreement and are subject to the requirements and expenditure guidelines established by the granting agency. Grant activity is accounted for separately to facilitate financial tracking, compliance, and reporting.

•

Assumptions – The fiscal year 2026-27 budget includes $4,844,280 in grant revenues. Major grant-funded activities include: o

$2,569,072 for the Peavine South Connection project, supported by a $155,289 Town match budgeted in the General Capital Improvement Fund.

$292,330 for the Transportation Alternatives design grant, with a $17,670 Town match in the General Capital Improvement Fund.

$128,000 for the Senior Nutrition Program.

$124,416 for a grant- and Smart and Safe-funded Police Officer position.

$1,730,462 is included for potential grant-funded projects that may arise during the fiscal year. This appropriation provides budgetary capacity for the Town to pursue and accept eligible grant opportunities. Budgeted grant revenues are less than total Grant Fund expenditures because a portion of planned expenditures will be supported by accumulated grant and donation funds received in prior fiscal years and carried forward for their intended purposes. Expenditures associated with new grant opportunities will occur only if funding is awarded and applicable grant requirements are met.

Town of Chino Valley Budget FY 2026-27

101

Revenues

Utility Fees and Charges These revenues are derived from user fees and buy-in charges. These revenues are recorded in Enterprise Funds. Major revenue sources in this category are described in detail below. Wastewater User Fees – The Town charges wastewater user fees to customers connected to or otherwise discharging wastewater into the Town’s wastewater system. These fees provide the primary source of revenue for the operation and maintenance of the wastewater utility. •

Rate Structure – Wastewater rates vary by customer classification. Residential and commercial customers are generally charged a flat monthly rate based on water meter size. Multifamily and certain institutional or lodging uses, including apartments, hotels, schools, and churches, are charged based on fixture units, while RV and mobile home parks are charged a flat monthly rate per space. The most recent wastewater rate study was approved by Council in December 2023 through Resolution No. 2023-1235 and included annual 3% rate increases each January beginning in January 2024 for a three-year period. In May 2025, Council adopted the consolidated fee schedule through Resolution No. 2025-1282, which established a specific per-space rate for RV and mobile home parks to provide consistency and clarity in the application of wastewater charges.

•

Permitted Use – Wastewater user fees are the principal operating revenue of the Wastewater Fund and support the operation, maintenance, and management of the Town’s wastewater system.

•

Assumptions – Wastewater user fee revenue of $2,082,024 is budgeted for fiscal year 2026-27, an increase of 1.8% from fiscal year 2025-26 projected revenue. The increase reflects the full-year effect of scheduled rate adjustments as well as anticipated growth in the number of customers served by the wastewater system.

Fiscal Year

2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26* 2026-27*

Revenue

1,479,072 1,573,711 1,638,671 1,706,657 1,718,139 1,764,245 1,801,569 1,872,017 2,045,655 2,082,024

Increase (Decrease)

128,238 94,639 64,960 67,986 11,482 46,106 37,324 70,448 173,638 36,369

Percent Change

9.5% 6.4% 4.1% 4.1% 0.7% 2.7% 2.1% 3.9% 9.3% 1.8%

Millions

Wastewater User Fees 2.5

WASTEWATER USER FEES

2.0 1.5 1.0 0.5

0.0 2018 2019 2020 2021 2022 2023 2024 2025 2026*2027* Actual

Projected

Budgeted

*Fiscal year 2025-26 reflects projected amounts and fiscal year 2026-27 reflects budgeted amounts.

102

Town of Chino Valley Budget FY 2026-27

Revenues

Water User Fees – The Town charges water user fees for providing potable water service to residential, commercial, and other customers within the Town’s water service area. The Town also sells bulk water through its two fill station locations. •

Rate Structure – Monthly water charges consist of a base charge and a consumption charge. Consumption charges use an increasing tiered rate structure designed to encourage water conservation. The most recent water rate study was approved by Council in December 2023 through Resolution No. 2023-1235 and included annual 3% rate increases each January beginning in January 2024 for a three-year period. In May 2025, Council adopted the consolidated fee schedule through Resolution No. 2025-1282, which included an increased rate for bulk water purchased through the Town’s fill stations.

•

Permitted Use – Water user fees are the principal operating revenue of the Water Fund and support the operation, maintenance, and management of the Town’s water system, including the replacement of existing capital assets.

•

Assumptions – Water user fee revenue of $972,512 is budgeted for fiscal year 2026-27, an increase of 10.3% from fiscal year 2025-26 projected revenue. The increase reflects the full-year effect of scheduled rate adjustments and, more significantly, the higher rate established for bulk water sold through the Town’s fill stations. The region has also experienced extended drought conditions, which can contribute to increased water demand, particularly for outdoor use and bulk water purchases. Actual revenues may fluctuate based on weather conditions, conservation efforts, and customer consumption patterns.

Water User Fees 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26* 2026-27*

Revenue

527,115 470,482 543,102 718,796 818,951 718,775 747,176 830,072 881,580 972,512

Increase (Decrease)

85,140 (56,633) 72,620 175,694 100,155 (100,176) 28,401 82,896 51,508 90,932

Percent Change

19.3% -10.7% 15.4% 32.4% 13.9% -12.2% 4.0% 11.1% 6.2% 10.3%

1.25

WATER USER FEES

Millions

Fiscal Year

1.00 0.75 0.50

0.25 0.00 2018 2019 2020 2021 2022 2023 2024 2025 2026*2027*

Actual

Projected

Budgeted

*Fiscal year 2025-26 reflects projected amounts and fiscal year 2026-27 reflects budgeted amounts.

Town of Chino Valley Budget FY 2026-27

103

Revenues

Buy-In Fees – New customers connecting to the Town’s water or wastewater systems pay a one-time buy-in fee representing their proportionate share of the capacity and infrastructure provided by the existing utility systems. These fees help ensure that growth contributes toward the cost of infrastructure necessary to serve new development rather than placing those costs solely on existing utility customers. •

Rate Structure – Water buy-in fees are assessed based on the number and size of water meters or equivalent units served. Wastewater buy-in fees are assessed at a flat rate for residential connections and based on fixture units for commercial and multifamily development. Applicable buy-in fees are generally collected as part of the development and permitting process. Rates are periodically reviewed to ensure they appropriately reflect the cost and capacity of the utility systems and are presented to Council for adjustment as necessary.

•

Permitted Use – Buy-in fee revenues are used to support water and wastewater capital improvements associated with system capacity and growth. Revenues may be used to fund eligible capital projects directly or for debt service associated with qualifying utility infrastructure.

•

Assumptions – Buy-in fee revenues can fluctuate significantly from year to year because they are directly dependent on the timing and level of new development. Based on recent development activity and historical collections, the Town has budgeted $500,000 in combined water and wastewater buy-in fee revenue for fiscal year 2026-27, unchanged from the fiscal year 2025-26 projected amount. Because individual development projects can substantially affect collections, actual revenues may vary from the budgeted amount.

Buy-In Fees 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26* 2026-27*

Revenue

1,209,443 675,262 734,700 824,605 649,847 201,124 287,126 595,138 500,000 500,000

Increase (Decrease)

639,354 (534,181) 59,438 89,905 (174,758) (448,723) 86,002 308,012 (95,138) 0

Percent Change

112.1% -44.2% 8.8% 12.2% -21.2% -69.1% 42.8% 107.3% -16.0% 0.0%

BUY-IN FEES

1.50

Millions

Fiscal Year

1.25 1.00 0.75

0.50 0.25 0.00

2018 2019 2020 2021 2022 2023 2024 2025 2026*2027* Actual

Projected

Budgeted

*Fiscal year 2025-26 reflects projected amounts and fiscal year 2026-27 reflects budgeted amounts.

104

Town of Chino Valley Budget FY 2026-27

Community Services Department

Recreation

Library

Senior Services

Mission The Community Services Department, inclusive of Senior Services, Recreation, and Library, is dedicated to fostering an enriched quality of life for all residents by offering diverse opportunities for social engagement, lifelong learning, recreational activities, and access to essential resources. Through innovative programming and a commitment to wellness, education, and community involvement, we strive to cultivate an environment that promotes overall well-being and strengthens the fabric of our community.

Program Descriptions Recreation: The Recreation Division is responsible for creating recreational programs and events for the citizens of the Town of Chino Valley, managing the reservation of recreation facilities, and the special events permitting process. The Recreation Division also operates the Aquatics Center from May through August each year. During the season the Center offers lap swim, toddler swim, swim lessons, water aerobics, dollar swim, and open swim hours, as well as facility rental for special events. Library: The Chino Valley Public Library offers a vast variety of free educational materials and services to the public including over 40,000 books, 4,000 videos, 1,000 audios, 100 magazines, eight local and national newspapers, puzzles and CDs for the whole family, 16 computers with internet access that feature word-processing and spreadsheets, WIFI, a children’s computer room with seven educational computers offering a vast array of learning programs. Over 200 educational and children’s programs are available throughout the year including our very popular Summer Reading Program. As a member of the Yavapai Library Network, our citizens have access to all 40 libraries in the County, including over a million items! Chino Valley patrons can access our website from the comforts of their home, or wherever they may be in the world, and place holds, renew their books, search our database, or download e-books.

Territorial Days Fireworks

Senior Services: The Chino Valley Senior Services administers and operates the Meals on Wheels program and provides a setting for daily congregate meals, artistic performances and exhibits, social gatherings, dances, enrichment programming, health programming, social services, referral services and educational life skill training for our older adult population. The Senior Center operates a Thrift Store and relies heavily on an engaged volunteer base for our service delivery.

Town of Chino Valley Budget FY 2026-27

105

Community Services Department

FY 2026-27 Change Summary •

Personnel Services – Decrease of $5,026, or 0.5% o Reduction of the seasonal staffing budget for Aquatics to better align with the prior year actual costs. o This reduction more than offsets increases associated with the 2% COLA, 0–1% merit increases, and higher health insurance premiums.

•

Ongoing Operating – Decrease of $9,950, or 2.1% o The decrease is primarily associated with reduced funding for maintenance, recreational programs, and library materials based on anticipated needs and prior-year activity, partially offset by increased utility and pool chemical costs.

•

One-Time Operating o No one-time operating expenditures are budgeted for FY 2026-27.

•

Capital o Community Center Park Improvements: ▪ Phase 1A (Rollover from FY 25-26) – $250,000 ▪ Phase 1B – $280,000 o Peavine South Connection: ▪ Grant – $2,569,072 ▪ Match – $155,289

•

Overall Department Budget – Increase of $2,739,385, or 136.7% o Total expenditures increase from $2,004,417 in FY 2025-26 to $4,743,802 in FY 2026-27, primarily due to increased capital funding associated with a large-scale grant-funded project. This increase is partially offset by reductions in personnel and ongoing operating expenditures.

Thousands

Community Services Expenditures by Category $5,000 $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0

$4,743,802

Personnel Services $1,951,484

Operating

$2,004,417

One-Time Operating Capital Outlay FY 2023-24 Actual

106

$2,133,088

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Town of Chino Valley Budget FY 2026-27

Community Services Department

Community Services Expenditures by Category Expenditures by Category Personnel Services Salaries and Wages Benefits Total Personnel

FY 2023-24 Actual

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Increase (Decrease)

% Increase (Decrease)

794,910 232,549 1,027,459

667,728 190,753 858,481

816,256 210,661 1,026,917

801,227 220,664 1,021,891

(15,029) 10,003 (5,026)

-0.5%

Operating Advertising Cellular/Data Services Children’s Program Clothing and Uniforms Contract and Support Services Copier and Printer Expense Fireworks Food Purchases Janitorial Supplies Library Materials Licenses and Permits Maintenance Operating Supplies Pool Chemicals Professional Services Program Supplies Public Relations Recreational Programs Resale Supplies Aquatics Center Safety Supplies Small Tools/Equipment/Furniture Special Senior Programs Subscriptions and Memberships Travel/Training/Seminars Utilities Total Operating

4,704 1,700 4,270 2,807 256 11,460 166,597 1,018 23,611 3,961 9,765 15,007 48,233 911 1,582 438 52,211 3,430 552 7,707 3,486 12,121 4,194 54,521 434,542

2,115 1,200 5,202 4,684 201 11,350 188,623 1,085 23,471 2,825 24,938 16,543 31,292 390 1,516 417 53,325 2,906 476 11,640 2,636 914 3,830 72,122 463,701

3,000 2,400 5,000 5,250 4,500 500 12,000 178,000 700 34,500 3,300 35,950 13,000 25,000 800 1,200 500 60,000 5,500 500 6,100 3,000 10,000 9,700 57,100 477,500

3,000 2,400 5,000 5,250 500 12,000 178,000 700 31,500 2,700 24,300 12,700 30,000 800 1,000 500 53,000 5,500 500 5,600 2,500 10,000 9,500 70,600 467,550

(4,500) (3,000) (600) (11,650) (300) 5,000 (200) (7,000) (500) (500) (200) 13,500 (9,950)

-2.1%

One-Time Operating Capital

3,144 486,339

139,410 671,496

500,000

3,254,361

2,754,361

$1,951,484

$2,133,088

$2,004,417

$4,743,802

$2,739,385

Total Expenditures by Category

Town of Chino Valley Budget FY 2026-27

136.7%

107

Community Services Department

Community Services Funding Summary Expenditures by Fund General Fund General Capital Improvement Fund Grant Fund Total Expenditures by Fund

FY 2023-24 Actual

FY 2024-25 Actual

1,478,317 446,225 26,942 $1,951,484

FY 2025-26 Budget

1,492,828 125,000 515,260 $2,133,088

FY 2026-27 Budget

1,504,417 500,000 $2,004,417

Increase (Decrease)

% Increase (Decrease)

1,361,441 685,289 2,697,072 $4,743,802

(142,976) 185,289 2,697,072 $2,739,385

-9.5% 37.1% N/A 136.7%

FY 2026-27 Budget

Increase % Increase (Decrease) (Decrease)

Thanksgiving at the Senior Center

Community Services Authorized FTEs Position Community Services Director Library Director/Special Project Manager Library Manager Librarian, Youth Services Librarian, Technical Services Recreation/Events Coordinator, Senior Recreation/Events Coordinator Cook Library Assistant Assistant Cook Administrative Aide Kitchen Assistant Seasonal Aquatics Staff Total Authorized FTEs

108

FY 2023-24 Budget 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.25 1.00 0.50 0.75 4.50 16.00

FY 2024-25 Budget 1.00 1.00 1.00 1.00 1.00 1.00 3.75 1.00 0.50 0.75 4.50 16.50

FY 2025-26 Budget 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.50 1.00 0.50 0.75 4.50 16.25

1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.50 1.00 0.50 0.75 4.50 16.25

0.0%

Town of Chino Valley Budget FY 2026-27

Development Services Department

Planning

Building Safety

Code Enforcement

Mission The Development Services Department is comprised of three key areas: • • •

The mission of Planning is to enrich the quality of life for residents of Chino Valley through responsible, responsive, and creative planning and development, by encouraging appropriate land uses and intensities, while planning for future generations. The mission of Building Safety is to provide services needed to ensure life-safety in the built environment. The mission for code enforcement is to promote public health, safety, and welfare through code compliance.

Program Descriptions Planning: The Planning team provides detailed land use, zoning, and subdivision information for all properties within the Town of Chino Valley. The department meets with customers in the early stages of property development through PreApplication Meetings to provide guidance related to codes and process. The planning staff handles requests for rezoning, conditional use permits, and subdivisions. Staff also recommends changes to the Unified Development Ordinance (UDO), zoning or subdivision codes, to address current situations within the community, staying ahead of forecasted trends and keeping up with changing legislation. Building Safety: The Building Safety team reviews all submitted building plans for compliance with adopted codes, and issues building permits for all development projects in the town. The team also inspects all aspects of construction of those structures to ensure the life safety of occupants. Currently the Town has adopted the following construction codes: the 2018 International Building, Residential, Mechanical, Plumbing, Fuel Gas, and Energy Codes, as well as the 2017 National Electrical Code. Code Enforcement: The Code Enforcement team ensures the health and well-being of citizens and the upkeep of properties. All code complaints, both called in and resulting from proactive inspections, are enforced to the standards set forth in the Unified Development Ordinance (UDO), the 2018 IBC, and the Town Code.

Town of Chino Valley Budget FY 2026-27

109

Development Services Department

FY 2026-27 Change Summary •

Personnel Services – Decrease of $33,158, or 2.6% o The Plans Examiner position is frozen for the fiscal year. The position will remain in the authorized FTE schedule but is not funded in the FY 2026-27 budget and will be reevaluated for FY 2027-28. o This reduction more than offsets increases associated with the 2% COLA, 0–1% merit increases, higher health insurance premiums, and the reclassification of a Code Enforcement Officer to a Senior Code Enforcement Officer.

•

Ongoing Operating – Decrease of $32,139, or 19.1% o The abatement budget within Professional Services was reduced based on prior-year actual expenditures and anticipated needs.

•

One-Time Operating o General Plan – Zoning Code Rewrite (Rollover from FY 25-26) – $188,675

•

Capital o No capital expenditures are budgeted for FY 2026-27.

•

Overall Department Budget – Decrease of $158,584, or 9.3% o Total expenditures decrease from $1,706,924 in FY 2025-26 to $1,548,340 in FY 2026-27, primarily due to reductions in one-time operating, ongoing operating, and personnel expenditures.

Thousands

Development Services Expenditures by Category $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0

$1,706,924 $1,548,340 $1,103,259

Personnel Services

$1,128,846

Operating One-Time Operating Capital Outlay FY 2023-24 Actual

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

110

Town of Chino Valley Budget FY 2026-27

Development Services Department

Development Services Expenditures by Category Expenditures by Category

FY 2023-24 Actual

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Increase (Decrease)

% Increase (Decrease)

Personnel Services Salaries and Wages Benefits Total Personnel

716,933 250,193 967,126

740,127 268,475 1,008,602

916,233 340,744 1,256,977

872,971 350,848 1,223,819

(43,262) 10,104 (33,158)

-2.6%

Operating Advertising Cellular/Data Services Clothing and Uniforms Computer Software Purchases Maintenance - Office Equipment Operating Supplies Professional Services Small Tools/Equipment Subscriptions and Memberships Travel/Training/Seminars Total Operating

639 6,376 2,044 31,010 3,965 5,237 2,570 2,704 12,088 7,776 74,409

824 6,144 1,588 30,259 2,564 3,657 14,958 5,830 3,442 6,360 75,626

2,700 7,844 3,180 34,040 4,143 9,000 74,301 4,535 8,977 19,265 167,985

2,700 6,160 2,770 36,381 3,889 9,000 48,698 3,000 5,050 18,198 135,846

(1,684) (410) 2,341 (254) (25,603) (1,535) (3,927) (1,067) (32,139)

-19.1%

13,501 48,223 $1,103,259

14,893 29,725 $1,128,846

281,962 $1,706,924

188,675 $1,548,340

(93,287) $(158,584)

-9.3%

Increase (Decrease)

% Increase (Decrease)

(158,584) $(158,584)

-9.3% N/A -9.3%

One-Time Operating Capital Total Expenditures by Category

Development Services Funding Summary Expenditures by Fund General Fund Capital Asset Replacement Total Expenditures by Fund

FY 2023-24 Actual 1,055,036 48,223 $1,103,259

Town of Chino Valley Budget FY 2026-27

FY 2024-25 Actual 1,128,846 $1,128,846

FY 2025-26 Budget 1,706,924 $1,706,924

FY 2026-27 Budget 1,548,340 $1,548,340

111

Development Services Department

2026 Community Clean Up Event

Development Services Authorized FTEs Position Development Services Director Assistant Development Services Director Chief Building Official Planner, Senior GIS Specialist Building Inspector, Senior Code Enforcement Officer, Senior Plans Examiner Code Enforcement Officer Processing Coordinator, Senior Permit Technician, Senior Permit Technician Total Authorized FTEs

112

FY 2023-24 Budget 1.00 1.00 1.00 1.00 1.00 1.00 2.00 1.00 2.00 11.00

FY 2024-25 Budget 1.00 1.00 1.00 1.00 1.00 1.00 2.00 1.00 1.00 10.00

FY 2025-26 Budget 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 1.00 1.00 11.00

FY 2026-27 Budget 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 11.00

Increase % Increase (Decrease) (Decrease) 1.00 (1.00) -

0.0%

Town of Chino Valley Budget FY 2026-27

Finance Department

Financials

Budgeting

Utility Billing

Mission The mission of the Finance Department is to responsibly manage and safeguard the Town’s financial resources, providing transparent and accurate financial reporting, supporting sustainable budgeting practices, and ensuring compliance with all local, state, and federal regulations. Through sound financial planning and stewardship, the department is dedicated to supporting the fiscal health of the Town, enabling the delivery of essential services, and enhancing the quality of life for all residents.

Program Descriptions The Finance Department is responsible for managing the Town’s financial operations to ensure fiscal accountability, transparency, and compliance. Key program areas include: •

•

• •

Payroll: In conjunction with Human Resources, administers accurate and timely compensation for all Town employees, handling payroll processing and benefits deductions. Utility Billing: Oversees the billing and collection processes for Town-provided utilities, maintaining customer accounts and ensuring efficient revenue collection. Accounts Payable and Receivable: Manages payments to vendors and suppliers, processes incoming revenues, and ensures proper recording of financial transactions. Debt Management: Administers the Town’s debt obligations, ensuring timely payments and maintaining compliance with legal and contractual requirements, while supporting Horses Grazing in Chino Valley sustainable borrowing practices. Budgeting: Coordinates the annual budget process, providing fiscal planning and analysis to allocate resources effectively and align with the Town’s strategic priorities. Financial Reporting: Prepares comprehensive financial statements and reports, providing transparency for elected officials, staff, and the public, and ensuring adherence to regulatory and auditing standards.

Through these functions, the Finance Department supports the Town’s financial health and its capacity to deliver essential services efficiently and responsibly.

Town of Chino Valley Budget FY 2026-27

113

Finance Department

FY 2026-27 Change Summary •

Personnel Services – Increase of $27,552, or 5.4% o This increase is associated with the 2% COLA, 0–1% merit increases, and higher health insurance premiums.

•

Ongoing Operating – Decrease of $9,300, or 5.7% o The decrease is primarily due to a $13,600 reduction in Professional Services. Audit costs are lower because the Municipal Court audit is performed every three years and a Single Audit is not required for the FY 2025-26 financial statements, which will be audited during FY 2026-27. The reduction is partially offset by increases in other operating expenditures.

•

One-Time Operating o No one-time operating expenditures are budgeted for FY 2026-27.

•

Capital o No capital expenditures are budgeted for FY 2026-27.

•

Overall Department Budget – Increase of $18,252, or 2.7% o Total expenditures increase from $668,130 in FY 2025-26 to $686,382 in FY 2026-27, primarily due to increased personnel costs, partially offset by lower ongoing operating expenditures.

Thousands

Finance Expenditures by Category $800 $668,130

$700 $600

$546,758

$686,382

$609,100 Personnel Services

$500 $400

Operating

$300 $200 $100 $0 FY 2023-24 Actual

114

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Town of Chino Valley Budget FY 2026-27

Finance Department

Finance Expenditures by Category Expenditures by Category

FY 2023-24 Actual

Personnel Services Salaries and Wages Benefits Total Personnel Operating Advertising Bank Charges Cellular/Data Services Maintenance - Office Equipment Merchant Bank Card Fees Operating Supplies Professional Services Small Tools/Equipment Subscriptions and Memberships Travel/Training/Seminars Total Operating Total Expenditures by Category

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Increase (Decrease)

% Increase (Decrease)

345,375 108,238 453,613

371,077 122,474 493,551

380,291 125,539 505,830

391,695 141,687 533,382

11,404 16,148 27,552

5.4%

4,560 8,363 515 4,182 3,902 906 68,252 488 993 984 93,145 $546,758

1,811 8,245 600 4,170 10,413 652 84,464 1,809 2,091 1,294 115,549 $609,100

3,000 7,000 600 4,200 500 2,200 138,200 2,000 1,550 3,050 162,300 $668,130

2,000 9,500 1,200 4,200 4,500 1,200 124,600 500 2,300 3,000 153,000 $686,382

(1,000) 2,500 600 4,000 (1,000) (13,600) (1,500) 750 (50) (9,300) $18,252

-5.7% 2.7%

Finance Funding Summary Expenditures by Fund General Fund Total Expenditures by Fund

FY 2023-24 Actual 546,758 $546,758

Town of Chino Valley Budget FY 2026-27

FY 2024-25 Actual 609,100 $609,100

FY 2025-26 Budget 668,130 $668,130

FY 2026-27 Budget 686,382 $686,382

Increase (Decrease) 18,252 $18,252

% Increase (Decrease) 2.7% 2.7%

115

Finance Department

Sunflower at Sunset in Chino Valley

Finance Authorized FTEs Position Finance Director Finance Manager Accountant Accounting Technician, Senior Total Authorized FTEs

116

FY 2023-24 Budget 1.00 1.00 1.00 1.00 4.00

FY 2024-25 Budget 1.00 1.00 1.00 1.00 4.00

FY 2025-26 Budget 1.00 1.00 1.00 1.00 4.00

FY 2026-27 Budget 1.00 1.00 1.00 1.00 4.00

Increase % Increase (Decrease) (Decrease) -

0.0%

Town of Chino Valley Budget FY 2026-27

Human Resources Department

Risk Management

Recruitment

Prosecutor

Mission Our mission is to develop, implement, and support programs and processes that empower the Town of Chino Valley and its employees, fostering growth, well-being, and retention while ensuring compliance with employment laws and business strategies. Additionally, we are committed to upholding justice by prosecuting criminal behavior on behalf of the people, ensuring fairness through a balanced approach to punishment, deterrence, restitution, and rehabilitation. Together, we work to protect and support the Town’s workforce and community with integrity, accountability, and a focus on long-term safety and success.

Program Descriptions Recruitment: Human Resources is responsible for the functions and administration in the areas of recruitment and selection, job classification and compensation planning, employee development, employee relations, the total rewards program, and compliance with employment regulations and guidelines as dictated by federal, state, and local laws. Risk Management: Human Resources coordinates the Town’s risk management activities, including workers’ compensation, workplace safety, insurance administration, and claims management, to help reduce organizational risk and promote a safe work environment.

Flowers Blooming in Chino Valley

Prosecutor: The prosecutor’s office processes all misdemeanor cases within the jurisdiction of the Chino Valley Magistrate Court. This includes all misdemeanor offenses in violation of the Arizona Revised Statutes (primarily Criminal and Motor Vehicle offenses) and the Chino Valley Town Code. Some of the main activities include pre-trial conferences, hearings, trials, and other matters set by the Court; filing complaints on matters referred by the police department; and extensive contact and correspondence with victims and witnesses, including interviews and further investigation of pending cases. Note: The prosecutor is contracted and under the supervision of the Town Attorney. The budget for the paralegal, prosecutor contract, and other administrative expenses is currently under the oversight of the Human Resources department.

Town of Chino Valley Budget FY 2026-27

117

Human Resources Department

FY 2026-27 Change Summary •

Personnel Services – Increase of $12,873, or 3.2% o This increase is primarily associated with the 2% COLA, 0–1% merit increases, and higher health insurance premiums.

•

Ongoing Operating – Decrease of $27,432, or 10.1% o The decrease is primarily due to reduced funding for employee education and tuition reimbursement within Travel/Training/Seminars and lower anticipated legal services related to the PSPRS Local Board and employment matters within Professional Services.

•

One-Time Operating o No one-time operating expenditures are budgeted for FY 2026-27.

•

Capital o No capital expenditures are budgeted for FY 2026-27.

•

Overall Department Budget – Decrease of $14,559, or 2.1% o Total expenditures decrease from $678,539 in FY 2025-26 to $663,980 in FY 2026-27, as reductions in ongoing operating expenditures more than offset increased personnel costs.

Thousands

Human Resources Expenditures by Category $800 $678,539

$700 $600 $500

$663,980

$589,949 $506,099

Personnel Services

$400

Operating

$300 $200

One-Time Operating

$100 $0 FY 2023-24 Actual

118

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Town of Chino Valley Budget FY 2026-27

Human Resources Department

Human Resources Expenditures by Category Expenditures by Category

FY 2023-24 Actual

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Increase (Decrease)

% Increase (Decrease)

Personnel Services Salaries and Wages Benefits Total Personnel

275,376 88,743 364,119

308,323 95,519 403,842

310,073 96,234 406,307

317,753 101,427 419,180

7,680 5,193 12,873

3.2%

Operating Advertising/Printing/Binding Cellular/Data Services Contract and Support Services Employee Recognition/Appreciation Maintenance - Office Equipment Operating Supplies Professional Services Safety Committee Expenses Small Tools/Equipment/Furniture Subscriptions and Memberships Travel/Training/Seminars Total Operating

2,078 1,200 61,545 4,555 2,122 434 68,043 26 1,277 700 141,980

510 1,200 70,831 2,663 483 662 88,997 258 1,615 3,307 170,526

8,500 1,200 64,632 5,000 1,500 2,700 152,000 500 2,000 2,200 32,000 272,232

5,500 1,200 65,400 5,000 1,500 2,500 140,000 500 2,000 2,200 19,000 244,800

(3,000) 768 (200) (12,000) (13,000) (27,432)

-10.1%

One-Time Operating Total Expenditures by Category

$506,099

15,581 $589,949

$678,539

$663,980

$(14,559)

-2.1%

Human Resources Funding Summary Expenditures by Fund General Fund Total Expenditures by Fund

FY 2023-24 Actual 506,099 $506,099

Town of Chino Valley Budget FY 2026-27

FY 2024-25 Actual 589,949 $589,949

FY 2025-26 Budget 678,539 $678,539

FY 2026-27 Budget 663,980 $663,980

Increase (Decrease) (14,559) $(14,559)

% Increase (Decrease) -2.1% -2.1%

119

Human Resources Department

Chino Valley’s Rural Landscape

Human Resources Authorized FTEs Position

FY 2023-24 Budget

FY 2024-25 Budget

FY 2025-26 Budget

FY 2026-27 Budget

Increase % Increase (Decrease) (Decrease)

Human Resources Director Human Resources Analyst, Senior Paralegal

1.00 1.00 1.00

Total Authorized FTEs

3.00

120

0.0%

Town of Chino Valley Budget FY 2026-27

Information Technology Department

Cybersecurity

Technology Infrastructure

Technical Support

Mission The mission of Information Technology Services (ITS) is to support, design, develop and enhance the Town’s information technology (IT), telecommunications, web and audio-visual systems.

Program Descriptions ITS provides various services to the Town to support the entire IT infrastructure. Foremost, ITS supports resources such as computer systems, networks and servers that allow the Town staff to effectively carry out their normal duties. ITS is additionally responsible for management and preservation of electronic information created during normal Town operations. ITS maintains vital communications avenues such as e-mail, telecommunications, mobile devices and internet access and implements new software, systems and applications to keep Town services running efficiently and maximize the Town’s IT investments. ITS continuously works to keep the Town website updated with the latest content about services, programs and events and manages the audio-visual equipment, filming and production of information and programming that is vital to ensure the public is informed about Town and community business. ITS manages ITrelated budget and expenditures throughout the fiscal year to ensure proper spending of Town funds. With the continuous growth of the Town and community, ITS manages expansion of the IT infrastructure, door access control, surveillance systems and accommodating additional IT wiring for expanded space and staff requirements. ITS helps to establish and maintain IT related policies and procedures to help mitigate risks associated with the use of technology. Lastly, ITS maintains documentation and licensing for the Town to ensure compliance with IT-related legal regulations.

Town of Chino Valley Budget FY 2026-27

121

Information Technology Department

FY 2026-27 Change Summary •

Personnel Services – Increase of $15,762, or 4.9% o This increase is primarily associated with the 2% COLA, 0–1% merit increases, and higher health insurance premiums.

•

Ongoing Operating – Increase of $42,250, or 16.5% o The increase is primarily associated with additional computer software and support costs, including ongoing intrusion detection services, computer imaging, backup storage, and cybersecurity services.

•

One-Time Operating o Intrusion Detection Service – Initial Implementation – $12,418

•

Capital o No capital expenditures are budgeted for FY 2026-27.

•

Overall Department Budget – Decrease of $33,650, or 4.9% o Total expenditures decrease from $680,593 in FY 2025-26 to $646,943 in FY 2026-27. The overall decrease reflects the timing of one-time operating and capital expenditures, partially offset by increases in ongoing operating and personnel costs.

Thousands

Information Technology Expenditures by Category $800 $680,593

$700

$612,351

$600 $500

$646,943

$481,121

Personnel Services Operating

$400 $300

One-Time Operating

$200 Capital Outlay

$100 $0 FY 2023-24 Actual

122

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Town of Chino Valley Budget FY 2026-27

Information Technology Department

Information Technology Expenditures by Category Expenditures by Category

FY 2023-24 Actual

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Increase (Decrease)

% Increase (Decrease)

Personnel Services Salaries and Wages Benefits Total Personnel

190,776 76,264 267,040

211,881 87,590 299,471

224,843 95,870 320,713

231,573 104,902 336,475

6,730 9,032 15,762

4.9%

Operating Bandwidth/ISP Cellular/Data Services Computer Software Purchases Hardware Maintenance Maintenance - Office Equipment Operating Supplies Professional Services Small Tools/Equipment Subscriptions and Memberships Travel/Training/Seminars Total Operating

30,650 1,011 33,539 4,574 386 6,591 45,647 50,444 1,278 174,120

28,809 1,492 30,624 2,931 196 5,145 77,680 51,312 1,433 1,278 200,900

34,000 2,000 45,940 6,500 1,200 9,750 80,400 71,610 1,700 2,700 255,800

34,600 1,450 79,550 5,000 700 8,550 94,800 69,400 1,500 2,500 298,050

600 (550) 33,610 (1,500) (500) (1,200) 14,400 (2,210) (200) (200) 42,250

16.5%

One-Time Operating Capital Total Expenditures by Category

39,961 $481,121

85,191 26,789 $612,351

74,080 30,000 $680,593

12,418 $646,943

(61,662) (30,000) $(33,650)

-4.9%

Information Technology Funding Summary Expenditures by Fund General Fund Total Expenditures by Fund

FY 2023-24 Actual 481,121 $481,121

Town of Chino Valley Budget FY 2026-27

FY 2024-25 Actual 612,351 $612,351

FY 2025-26 Budget 680,593 $680,593

FY 2026-27 Budget 646,943 $646,943

Increase (Decrease) (33,650) $(33,650)

% Increase (Decrease) -4.9% -4.9%

123

Information Technology Department

Verde River Headwaters

Information Technology Authorized FTEs Position

FY 2023-24 Budget

FY 2024-25 Budget

FY 2025-26 Budget

FY 2026-27 Budget

Increase % Increase (Decrease) (Decrease)

Information Technology Manager IT Support Technician

1.00 2.00

Total Authorized FTEs

3.00

124

0.0%

Town of Chino Valley Budget FY 2026-27

Mayor and Council

Local Legislation

Policy Development

Budget Adoption

Mission The mission of the Town of Chino Valley Council is to enhance the quality of life for its citizens while supporting the values of the community.

Program Descriptions The Mayor and Council are the legislative branch of the Chino Valley council-manager form of government. The Town Council enacts local legislation, develops policies for the Town Manager to implement and adopts the annual budget.

The Council appoints the Town Manager, Town Attorney, Court Magistrate, and members of various boards, commissions, and committees.

Councilmember Stankewicz with Mayor Armstrong

Town of Chino Valley Budget FY 2026-27

Councilmember Phillips, Vice Mayor Granillo, Councilmember Holt, and Councilmember Switzer at the 2025 Year in Review Event

125

Mayor and Council

FY 2026-27 Change Summary •

Personnel Services – Decrease of $87, or 0.2% o Personnel expenditures remain essentially unchanged from FY 2025-26, with salaries and wages remaining at $45,000 and a slight decrease in budgeted benefits.

•

Ongoing Operating – Decrease of $3,000, or 9.4% o The decrease is due to the removal of the $3,000 annual contribution for the Paulden Plunge as the program is currently discontinued. o All other operating expenditure categories remain unchanged from FY 2025-26.

•

One-Time Operating o No one-time operating expenditures are budgeted for FY 2026-27.

•

Capital o No capital expenditures are budgeted for FY 2026-27.

•

Overall Department Budget – Decrease of $3,087, or 3.8% o Total expenditures decrease from $81,237 in FY 2025-26 to $78,150 in FY 2026-27, primarily attributable to the removal of funding for the Paulden Plunge contribution, with all other expenditures remaining relatively stable.

Thousands

Mayor and Council Expenditures by Category

$90 $80 $70 $60 $50 $40 $30 $20 $10 $0

$75,263

$81,237

$78,150 Personnel Services

Operating

FY 2023-24 Actual

126

$77,365

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Town of Chino Valley Budget FY 2026-27

Mayor and Council

Mayor and Council Expenditures by Category Expenditures by Category

FY 2023-24 Actual

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Increase (Decrease)

% Increase (Decrease)

Personnel Services Salaries and Wages Benefits Total Personnel

45,000 3,677 48,677

45,000 3,925 48,925

45,000 4,237 49,237

45,000 4,150 49,150

(87) (87)

-0.2%

Operating Cellular/Data Services Operating Supplies Public Relations Public Relations - Paulden Plunge Travel/Training/Seminars Total Operating

10,530 762 2,087 3,000 10,207 26,586

10,868 245 6,066 3,000 8,261 28,440

12,000 2,000 2,000 3,000 13,000 32,000

12,000 2,000 2,000 13,000 29,000

(3,000) (3,000)

-9.4%

Total Expenditures by Category

$75,263

$77,365

$81,237

$78,150

$(3,087)

-3.8%

Mayor and Council Funding Summary Expenditures by Fund

FY 2023-24 Actual

General Fund Total Expenditures by Fund

Town of Chino Valley Budget FY 2026-27

75,263 $75,263

FY 2024-25 Actual 77,365 $77,365

FY 2025-26 Budget 81,237 $81,237

FY 2026-27 Budget 78,150 $78,150

Increase (Decrease) (3,087) $(3,087)

% Increase (Decrease) -3.8% -3.8%

127

Mayor and Council

Mayor and Council Authorized Elected Officials Position

FY 2023-24 Budget

FY 2024-25 Budget

FY 2025-26 Budget

FY 2026-27 Budget

Increase % Increase (Decrease) (Decrease)

Mayor Vice Mayor Council Members

1.00 1.00 5.00

Total Authorized Elected Officials

7.00

0.0%

Councilmember Holt, Former Councilmember Schacherer, Councilmember Switzer, and Councilmember McCafferty Serving at the Senior Center Thanksgiving

128

Town of Chino Valley Budget FY 2026-27

Municipal Court Department

Process Cases

Conduct Hearings

Provide Justice

Mission As the judicial branch of government, the mission of the Chino Valley Municipal Court is to provide an independent, accessible, fair, and effective system of justice on behalf of and for the citizens of Chino Valley and persons cited for violations occurring within the Town limits.

Program Descriptions The Court has jurisdiction to process and adjudicate cases that arise within the Town limits of Chino Valley, including misdemeanor criminal complaints alleging a violation of Arizona law or Town ordinance, civil and criminal traffic matters, and petitions for an Order of Protection or an Injunction Against Harassment.

Municipal Court Building The Magistrate presides over a variety of court proceedings which include initial appearances, arraignments, pretrial disposition conferences, change of plea hearings, sentencing, petitions to revoke probation, order to show cause hearings, motion hearings, civil traffic hearings, jury and non-jury trials, restitution hearings, payment review hearings, and all other hearings as may be required.

Court Customer Service Counter

Town of Chino Valley Budget FY 2026-27

129

Municipal Court Department

FY 2026-27 Change Summary •

Personnel Services – Increase of $26,888, or 6.8% o This increase is primarily associated with the 2% COLA, 0–1% merit increases, and higher health insurance premiums.

•

Ongoing Operating – No change o Ongoing operating expenditures remain unchanged at $48,450 for FY 2026-27. Minor adjustments among individual expenditure categories result in no overall change.

•

One-Time Operating o No one-time operating expenditures are budgeted for FY 2026-27.

•

Capital o Court Security Enhancements – $40,000 o Court Computers and Printers – $10,000

•

Overall Department Budget – Increase of $66,888, or 14.7% o Total expenditures increase from $455,689 in FY 2025-26 to $522,577 in FY 2026-27. The increase is primarily attributable to planned capital expenditures for court security enhancements and computer and printer replacements, along with increased personnel costs.

Thousands

Municipal Court Expenditures by Category $600

$522,577

$500 $400

Personnel Services

$455,689 $392,788

$392,732 Operating

$300 $200

One-Time Operating

$100

Capital Outlay

$0 FY 2023-24 Actual

130

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Town of Chino Valley Budget FY 2026-27

Municipal Court Department

Municipal Court Expenditures by Category Expenditures by Category

FY 2023-24 Actual

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Increase (Decrease)

% Increase (Decrease)

Personnel Services Salaries and Wages Benefits Total Personnel

258,247 81,155 339,402

262,216 73,380 335,596

315,255 81,984 397,239

306,543 117,584 424,127

(8,712) 35,600 26,888

6.8%

Operating Cellular/Data Services Contract and Support Services Maintenance - Office Equipment Operating Supplies Professional Services Subscriptions and Memberships Travel/Training/Seminars Uniforms Utilities Total Operating

1,200 165 2,462 4,579 32,300 837 1,775 635 172 44,125

1,200 275 2,633 4,322 34,300 432 3,735 1,421 609 48,927

1,200 400 2,400 5,000 34,950 1,000 2,550 750 200 48,450

1,200 750 2,400 5,000 34,950 1,000 2,550 400 200 48,450

350 (350) -

0.0%

One-Time Operating Capital Total Expenditures by Category

1,062 8,199 $392,788

1,202 7,007 $392,732

10,000 $455,689

50,000 $522,577

40,000 $66,888

14.7%

Municipal Court Funding Summary Expenditures by Fund General Fund Grant Fund Court Improvement Fund Total Expenditures by Fund

FY 2023-24 Actual 374,260 1,062 17,466 $392,788

Town of Chino Valley Budget FY 2026-27

FY 2024-25 Actual 372,395 1,202 19,135 $392,732

FY 2025-26 Budget 438,489 17,200 $455,689

FY 2026-27 Budget 465,377 57,200 $522,577

Increase (Decrease) 26,888 40,000 $66,888

% Increase (Decrease) 6.1% N/A 232.6% 14.7%

131

Municipal Court Department

Municipal Court Authorized FTEs Position Magistrate Court Administrator Court Security Officer Court Clerk Total Authorized FTEs

FY 2023-24 Budget 1.00 1.00 0.50 2.00 4.50

FY 2024-25 Budget 1.00 1.00 0.50 2.50 5.00

FY 2025-26 Budget 1.00 1.00 0.50 2.50 5.00

FY 2026-27 Budget 1.00 1.00 0.50 2.50 5.00

Increase % Increase (Decrease) (Decrease) -

0.0%

Courtroom Bench and Lectern View

132

Town of Chino Valley Budget FY 2026-27

Non-Departmental

Legal Services

Community Support

Insurance Premiums

Program Description Non-Departmental includes Town-wide expenditures and obligations that are not attributable to a specific operating department. These expenditures include legal services, insurance, contributions to outside organizations, contingency funding for unforeseen needs, transfers between funds, debt service obligations, and additional PSPRS contributions.

Town Clerk Erin Deskins, Economic Development/Intergovernmental Manager Maggie Holmberg, and Mayor Armstrong finalized the agreement for the sale of property at Old Home Manor for development of an RV park

Town of Chino Valley Budget FY 2026-27

133

Non-Departmental

FY 2026-27 Change Summary •

Ongoing Operating – Increase of $172,215, or 31.8% o The increase is primarily attributable to increased funding for YPlan and legal services, along with increased maintenance costs for the Del Sol Maintenance Improvement District (MID).

•

One-Time Operating o Miscellaneous Grants – $1,000,000 o Yavapai Combined Trust Reserve Plan – $111,106

•

Capital o Miscellaneous Projects at Old Home Manor – $1,000,000 o Miscellaneous Grants – $750,000 o Stabilization of Fred Harvey Farm Historic Property (Rollover from FY 25-26) – $160,146

•

Debt Service – $1,213,802 (Decrease of $79,930)

•

Contingency – $940,000 (Increase of $6,000)

•

PSPRS Unfunded Liability Payment – $250,000 (No Change)

•

Transfers – Decrease of $229,930 o Transfer To Debt Service Fund – $1,213,802 o Transfer To Streets Capital Improvement Fund – $1,000,000

•

Overall Department Budget – Decrease of $2,814,191, or 25.2% o Total expenditures decrease from $11,166,886 in FY 2025-26 to $8,352,695 in FY 2026-27. The decrease primarily reflects lower one-time operating expenditures, capital, and transfers, partially offset by higher ongoing operating costs.

Thousands

Non-Departmental Expenditures by Category $12,000 $10,000

$11,166,886 $8,698,155

Operating $8,352,695

$8,000

Capital Outlay $5,572,199

$6,000

Debt Service

$4,000

Contingency

$2,000

PSPRS Contribution

$0 FY 2023-24 Actual

134

One-Time Operating

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Transfers

Town of Chino Valley Budget FY 2026-27

Non-Departmental

Non-Departmental Expenditures by Category Expenditures by Category

FY 2023-24 Actual

FY 2024-25 Actual

FY 2025-26 Budget

Operating ADOR Annual Fee Chamber of Commerce Chino Valley Historical Society Greater Chino Valley Collaborative Insurance Liability/Property League of AZ Cities Dues Legal Services Maintenance NACOG-EDA/Rural Transportation Postage Utilities Yavapai County Emergency Mgmt. Yavapai Family Advocacy Center Yavapai Regional Transit YPlan Regional Planning Org. Interfund Transfer from W/WW Total Operating

46,004 60,000 3,000 291,721 12,190 207,222 2,773 4,852 4,344 4,651 3,373 (190,000) 450,130

46,250 60,000 2,500 302,556 12,291 233,457 44 2,773 5,751 4,594 4,651 2,897 (190,000) 487,764

49,500 60,000 3,000 348,000 12,700 201,000 2,750 3,000 9,000 4,650 7,500 12,524 17,000 1,000 (190,000) 541,624

One-Time Operating Capital Debt Service Contingency PSPRS Unfunded Liability Payment Transfers Total Expenditures by Category

131,298 82,681 1,276,252 329,794 1,000,000 5,428,000 $8,698,155

14,186 493,859 1,264,490 650,000 2,661,900 $5,572,199

1,703,798 4,000,000 1,293,732 934,000 250,000 2,443,732 $11,166,886

FY 2026-27 Budget 48,700 60,000 3,000 348,000 13,500 251,000 14,375 3,000 9,000 4,650 7,500 12,524 17,000 111,590 (190,000) 713,839

Increase (Decrease)

% Increase (Decrease)

(800) 800 50,000 11,625 110,590 172,215

31.8%

1,111,106 (592,692) 1,910,146 (2,089,854) 1,213,802 (79,930) 940,000 6,000 250,000 2,213,802 (229,930) $8,352,695 $(2,814,191)

-25.2%

Non-Departmental Funding Summary Expenditures by Fund General Fund General Capital Improvement Fund Debt Service Fund Grant Fund SLFRF Fund CVSLID Fund Del Sol MID Fund Total Expenditures by Fund

FY 2023-24 Actual 5,150,781 2,260,680 1,276,252 6,098 4,344 $8,698,155

Town of Chino Valley Budget FY 2026-27

FY 2024-25 Actual 1,247,312 2,891,840 1,264,490 163,919 4,594 44 $5,572,199

FY 2025-26 Budget 1,753,224 4,612,530 1,293,732 3,500,000 4,650 2,750 $11,166,886

FY 2026-27 Budget

Increase (Decrease)

% Increase (Decrease)

242,696 (1,238,582) (79,930) (1,750,000)

13.8% -26.9% -6.2% -50.0%

4,650 14,375 11,625 $8,352,695 $(2,814,191)

0.0% 422.7% -25.2%

1,995,920 3,373,948 1,213,802 1,750,000

135

Non-Departmental

Former Public Works Director Frank Marbury portrays Fred Harvey at the 2025 League of Arizona Cities and Towns Annual Conference

136

Town of Chino Valley Budget FY 2026-27

Police Department

Public Safety

Traffic Enforcement

Animal Control

Mission The mission of the Chino Valley Police Department is to protect the lives, property and constitutional rights of the citizens of Chino Valley through fair and impartial enforcement of the laws of the state. We are committed to establishing close working relationships with our citizens, businesses and visitors to resolve problems and issues. Serving the citizens of Chino Valley is a privilege, not a right. The citizen is the most important person in our department; not an interruption of work, but the purpose of it. The department's successes are attributed to the high ethics, professionalism, integrity, courage, and efficiency displayed by our personnel.

Program Descriptions Police: Utilizing state of the art policing methods the police department is able to proactively patrol and enforce criminal, traffic and town laws and ordinances. The department has utilized staff to provide ideas, methods and solutions by “thinking outside the box”. This approach has allowed the department to stretch the limited operating budget and provide the highest level of policing service to the public. The production, dedication and enthusiasm provided by the department allows us to maximize resources to ensure success of the department’s mission. Police Department staff have donated time and expertise to assure outside funding and resources, such as the Federal 1033 program, RICO funds and collaboration with private organizations, are obtained and utilized to increase training capabilities of the department and town. We have a facility and location to train our staff, as well CVPD at Women in Law Enforcement Event as those around us, which enables our staff to obtain the latest and greatest training in the profession. The ability of the department to tap internal resources to ensure the training facility is operational, functional and capable of providing the training needed is like none seen anywhere else in this profession. Animal Control: Animal Control is responsible for enforcing Town Code and state statutes relating to animal issues (primarily dogs) within the town limits. Animal Control also operates the Animal Shelter and is responsible for selling dog licenses and ensuring dogs have been properly vaccinated for rabies. Animal Control responds to calls from the public as well as visual observation of dogs running at large, cruelty and neglect cases, and nuisance barking complaints.

Town of Chino Valley Budget FY 2026-27

137

Police Department

FY 2026-27 Change Summary •

Personnel Services – Increase of $220,282, or 4.2% o The increase primarily reflects the 2% COLA, 0–1% merit increases, higher health insurance premiums, and a 3% market adjustment for Police Officers, Sergeants, and Lieutenants. o The budget also includes the reclassification of a Police Services Specialist to Senior Police Services Specialist and a Police Officer to Sergeant. o These increases are partially offset by reduced overtime and lower PSPRS retirement costs.

•

Ongoing Operating – Increase of $34,119, or 3.9% o The increase is primarily attributable to the Cadet Program, a new public records request portal, and expanded technology solutions supporting accreditation, compliance documentation, and operational accountability.

•

One-Time Operating o Rifle Replacements – $13,000 o Traffic-Related Expenses – $5,000 o Records Request Public Portal Implementation – $4,500

•

Capital o Replacement of Two Fully Equipped Patrol Units – $180,000

•

Overall Department Budget – Increase of $445,086, or 7.3% o Total expenditures increase from $6,124,880 in FY 2025-26 to $6,569,966 in FY 2026-27, primarily due to personnel adjustments and the replacement of two patrol units, along with increased ongoing operating costs.

Thousands

Police Expenditures by Category $7,000 $6,000

$6,452,416

$6,124,880

$6,569,966

$5,523,511

$5,000

Personnel Services

$4,000

Operating

$3,000 One-Time Operating

$2,000

Capital Outlay

$1,000 $0 FY 2023-24 Actual

138

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Town of Chino Valley Budget FY 2026-27

Police Department

Police Expenditures by Category Expenditures by Category Personnel Services Salaries and Wages Benefits Total Personnel

FY 2023-24 Actual

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Increase (Decrease)

% Increase (Decrease)

2,993,222 1,515,259 4,508,481

3,406,227 1,807,478 5,213,705

3,546,323 1,683,180 5,229,503

3,703,895 1,745,890 5,449,785

157,572 62,710 220,282

4.2%

Operating Ammunition/Reloading Supplies Animal Food Cellular/Data Services Clothing and Uniforms Community Relations Computer Software Purchases Contract and Support Services Fleet Cameras K-9 Program Costs Law Enforcement Range Expenses License Plate Readers Licenses/Fees Maintenance - Machinery/Equip. Maintenance - Office Equipment Maintenance - Town Facilities Medical Supplies Operating Supplies Professional Services Radios Small Tools/Equipment Spay and Neuter Felines Subscriptions and Memberships Taser/Body Cameras Travel/Training/Seminars Utilities - Water Vet and Supplies Total Operating

10,091 1,551 20,710 67,361 9,822 183,962 9,979 2,495 10,500 930 22,587 5,944 4,189 51,256 117,179 29,215 29,221 1,443 4,121 64,671 37,983 776 14,977 700,963

21,702 1,257 25,198 81,504 9,193 7,603 188,556 27,019 2,664 13,264 429 24,387 5,709 5,000 7,972 31,616 120,111 23,810 18,197 681 4,595 60,471 46,451 685 13,888 741,962

20,420 1,700 23,800 100,250 10,000 19,722 193,271 60,422 2,500 7,780 18,000 600 27,751 6,100 5,000 6,335 53,000 65,319 39,000 34,340 1,500 5,912 112,440 53,000 1,400 14,000 883,562

20,420 1,700 30,500 91,250 13,500 52,105 198,227 60,422 2,500 7,780 20,000 600 27,751 6,100 5,000 6,335 53,000 60,319 39,000 33,920 1,500 5,912 112,440 52,000 1,400 14,000 917,681

6,700 (9,000) 3,500 32,383 4,956 2,000 (5,000) (420) (1,000) 34,119

3.9%

One-Time Operating Capital

103,136 210,931

85,090 411,659

11,815 -

22,500 180,000

10,685 180,000

$5,523,511

$6,452,416

$6,124,880

$6,569,966

$445,086

Total Expenditures by Category

Town of Chino Valley Budget FY 2026-27

7.3%

139

Police Department

Police Funding Summary Expenditures by Fund

FY 2023-24 Actual

General Fund General Capital Improvement Fund Grant Fund Capital Asset Replacement Fund Police Impoundment Fund Total Expenditures by Fund

FY 2024-25 Actual

5,210,381 40,169 207,140 65,821 $5,523,511

FY 2025-26 Budget

5,941,268 1,268 176,029 333,851 $6,452,416

FY 2026-27 Budget

5,983,855 136,025 5,000 $6,124,880

Increase (Decrease)

% Increase (Decrease)

6,260,550 124,416 180,000 5,000 $6,569,966

276,695 (11,609) 180,000 $445,086

4.6% N/A -8.5% N/A 0.0% 7.3%

FY 2026-27 Budget

Increase % Increase (Decrease) (Decrease)

Chino Valley Police Cadet Competition Awards 2026

Police Authorized FTEs Position Chief of Police Deputy Chief of Police Police Lieutenant Police Sergeant Police Officer Police Officer - GRANT FUNDED Police Civilian Operations Supervisor Police Services Specialist, Senior Police Services Specialist Property and Evidence/Crime Scene Tech. Animal Control Officer Adoption Spec./Shelter Tech., Senior Adoption Specialist/Shelter Tech. Total Authorized FTEs

140

FY 2023-24 Budget 1.00 1.00 1.00 5.00 24.00 1.00 4.00 1.00 2.00 1.00 1.00 42.00

FY 2024-25 Budget 1.00 2.00 5.00 26.00 1.00 4.50 1.00 2.00 1.00 1.00 44.50

FY 2025-26 Budget 1.00 2.00 5.00 26.00 1.00 1.00 4.50 1.00 2.00 1.00 1.00 45.50

1.00 2.00 6.00 25.00 1.00 1.00 1.00 3.50 1.00 2.00 1.00 1.00 45.50

0.0%

Town of Chino Valley Budget FY 2026-27

Public Works Department

Engineering

Facilities/Parks Maintenance

Fleet Maintenance

Mission Our mission is to enhance the quality of life in the Town of Chino Valley by providing efficient, reliable, and responsive services that support a safe, welcoming, and thriving community. We are dedicated to maintaining parks and facilities that encourage healthy lifestyles and community engagement, ensuring the safety and functionality of Town facilities, and delivering high-quality fleet services to all departments. Through collaboration with citizens and developers, we aim to preserve the Town’s natural beauty, history, and western culture, while delivering essential services that prioritize public health, safety, and fiscal responsibility.

Program Descriptions The Parks Maintenance Division is responsible for creating and maintaining parks for the citizens of the Town of Chino Valley. Each facility requires the maintenance of turf, foliage, shrubs, trees, aggregate, playground equipment, irrigation systems, and other park amenities, to provide a safe and convenient recreation experience for both adults and children participating in organized sports or just a casual location for the family seeking to experience the beauty of Chino Valley. The Facilities Maintenance Division is responsible for maintenance services including scheduled and preventive maintenance, in-house remodeling projects and divisional moves. The Facilities Division is responsible for all janitorial services, which include 30 public restrooms, cleaning and vacuuming all floors, trash removal, lighting, alarm systems, HVAC repair, roofing, painting, carpentry, plumbing, pest control, monthly and annual fire extinguisher inspection and monthly filter changes in all HVAC units. The Facilities Division is on call 24 hours a day. The Fleet Maintenance Division provides maintenance and repair services to the Town of Chino Valley Fleet assets. Fleet Maintenance provides services to Police Department, Senior Center, Recreation, Aquatics, Streets Division, Facilities Group, Public Works and Engineering, Library, Information Technology, Development Services, and Town Hall. Assets range from small engines and UTVs to motor graders and heavy trucks. The Engineering Division provides administrative oversight and support to the Streets, Fleet Maintenance, Parks Maintenance, Facilities Maintenance, and Utilities Divisions. The Engineering Division provides professional engineering services for all public improvements within the Town of Chino Valley and provides engineering advice to the Town Council. They are responsible for the delivery of the capital improvement program, review, and oversight of private and public development/construction projects. In addition, this department represents the Town of Chino Valley on various regional technical committees such as the Yavapai Plan Regional Planning Organization (YPlan), and the Regional Utility Coordinating Committee (RUCC).

Town of Chino Valley Budget FY 2026-27

141

Public Works Department

FY 2026-27 Change Summary •

Personnel Services – Increase of $71,624, or 3.6% o The increase is primarily associated with the 2% COLA, 0–1% merit increases, and higher health insurance premiums.

•

Ongoing Operating – Decrease of $35,680, or 2.9% o The decrease primarily reflects lower anticipated costs for contract and support services, fuel, janitorial supplies, parks maintenance, recurring fence maintenance, and small tools and equipment. o These reductions are partially offset by increased funding for subscriptions and memberships and water resources consulting services.

•

One-Time Operating o Transportation Alternatives Design: ▪ Grant – $292,330 ▪ Match – $17,670 o Engineering Code Changes – $150,000 o Integrated Utility Master Plan – $42,066

•

Capital o Water/Sewer Extensions - $197,200 o Parking Lot Maintenance – $75,000 o Annual Roofing Program – $75,000 o Annual HVAC Replacements – $30,000 o Pool Facility Updates – $15,000

•

Overall Department Budget – Decrease of $137,433, or 3.2% o Total expenditures decrease from $4,315,890 in FY 2025-26 to $4,178,457 in FY 2026-27, primarily reflecting lower one-time operating and capital expenditures, partially offset by personnel costs.

Thousands

Public Works Department Expenditures by Category $5,000 $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0

$4,267,408

$4,178,457 Personnel Services

$3,175,328

Operating One-Time Operating Capital Outlay

FY 2023-24 Actual

142

$4,315,890

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Town of Chino Valley Budget FY 2026-27

Public Works Department

Public Works Department Expenditures by Category Expenditures by Category

FY 2023-24 Actual

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Increase (Decrease)

% Increase (Decrease)

Personnel Services Salaries and Wages Benefits Total Personnel

1,073,173 426,479 1,499,652

1,201,793 490,489 1,692,282

1,402,706 599,871 2,002,577

1,423,904 650,297 2,074,201

21,198 50,426 71,624

3.6%

Operating Building Materials & Supplies Cellular/Data Services Clothing and Uniforms Contract and Support Services Gas/Oil Janitorial/Sanitation Supplies Maintenance - Agriculture Maintenance - Machinery/Equip. Maintenance - Office Equipment Maintenance - Parks Maintenance - Town Facilities Maintenance - Vehicles Operating Supplies Professional Services Recurring Fence Maintenance Rent - Machinery and Equipment Safety Supplies Sanitation/Refuse Shop Supplies Small Tools/Equipment/Furniture Subscriptions and Memberships Travel/Training/Seminars Utilities Water Resources Consultant Interfund Transfer from W/WW Total Operating

33,136 10,042 9,948 2,700 99,277 31,049 3,776 5,689 4,845 54,535 73,439 79,189 26,395 11,713 9,607 7,713 2,240 8,994 6,183 26,093 2,840 8,483 470,756 57,368 (100,000) 946,010

33,147 9,709 12,707 49,107 88,259 38,616 30,293 8,367 3,890 41,979 52,064 98,993 5,945 32,698 17,734 4,271 2,410 12,621 4,382 37,673 2,848 23,252 529,568 69,909 (100,000) 1,110,442

35,000 11,465 14,700 113,600 134,300 48,000 30,000 4,700 4,500 53,850 49,920 60,500 11,100 50,000 20,000 6,000 4,800 12,800 3,000 43,535 9,500 34,500 529,900 60,000 (100,000) 1,245,670

35,000 11,465 16,900 98,020 121,300 39,000 30,000 4,700 4,200 43,850 49,920 60,500 11,100 50,000 15,000 6,000 4,800 12,800 3,000 34,535 25,500 32,500 529,900 70,000 (100,000) 1,209,990

2,200 (15,580) (13,000) (9,000) (300) (10,000) (5,000) (9,000) 16,000 (2,000) 10,000 (35,680)

-2.9%

One-Time Operating Capital

217,676 511,990

330,871 1,133,813

339,643 728,000

502,066 392,200

162,423 (335,800)

$3,175,328

$4,267,408

$4,315,890

$4,178,457

$(137,433)

-3.2%

Increase (Decrease)

% Increase (Decrease)

(47,056) (382,707) 292,330 $(137,433)

-1.3% -59.8% N/A N/A 0.0% -3.2%

Total Expenditures by Category

Public Works Department Funding Summary Expenditures by Fund General Fund General Capital Improvement Fund Capital Asset Replacement Fund Grant Fund Cemetery Fund Total Expenditures by Fund

FY 2023-24 Actual 2,700,661 246,379 225,588 2,700 $3,175,328

Town of Chino Valley Budget FY 2026-27

FY 2024-25 Actual 3,341,466 921,842 4,100 $4,267,408

FY 2025-26 Budget 3,666,947 639,643 9,300 $4,315,890

FY 2026-27 Budget 3,619,891 256,936 292,330 9,300 $4,178,457

143

Public Works Department

Parks and Facilities Maintenance Team Members at the Trick or Treating at Memory Park Event

Public Works Department Authorized FTEs Position Public Works Director/Town Engineer Public Works Director Town Engineer/Assistant PW Director Assistant Town Engineer Capital Project Manager Facilities and Parks Manager Fleet Manager PW Management Analyst Public Works Inspector Fleet Mechanic, Senior Facilities/Pool Maint. Worker, Senior Fleet Mechanic Administrative Technician, Senior Parks Maintenance Worker, Senior Facilities Maintenance Worker, Senior Parks Maintenance Worker Facilities Maintenance Worker Administrative Technician Seasonal Parks Maintenance Worker Custodian Total Authorized FTEs

144

FY 2023-24 Budget 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 1.00 3.00 1.00 1.00 0.50 3.00 20.50

FY 2024-25 Budget 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 1.00 4.00 1.00 1.00 2.00 21.00

FY 2025-26 Budget 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 1.00 4.00 1.00 2.00 21.00

FY 2026-27 Budget 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 1.00 4.00 1.00 2.00 21.00

Increase % Increase (Decrease) (Decrease) -

0.0%

Town of Chino Valley Budget FY 2026-27

Public Works Department - Streets

Street Maintenance

Sign Maintenance

Right-of-Way Maintenance

Mission To identify and implement roadway and other related transportation system solutions for the safe and efficient movement of goods, services and people to support a high quality of life in Chino Valley.

Program Descriptions The Streets Division takes a proactive stance to citizens' needs by maintaining 158 miles of paved, chip sealed or dirt streets, which includes: •

Chip seal program

•

Construction of new streets

•

Drainage maintenance

•

Grading roads

•

Mowing/weed control and trash pickup

•

Repair and replacement of Town signage

•

Repairing potholes

•

Tree trimming along Town rights-of-way

Streets Crew Note: The Streets Division is part of the Public Works Department but is presented separately, similar to Utilities, to provide greater transparency into street-related expenditures and funding. A significant portion of Streets operations is supported by restricted Highway User Revenue Fund (HURF) revenues.

Town of Chino Valley Budget FY 2026-27

145

Public Works Department - Streets

FY 2026-27 Change Summary •

Personnel Services – Decrease of $49,902, or 6.6% o The decrease primarily reflects the freeze of one Streets Maintenance Worker position for FY 2026-27. The position remains an authorized FTE and will be reevaluated in a future fiscal year. o This reduction more than offsets the 2% COLA, 0–1% merit increases, and higher health insurance premiums for existing employees.

•

Ongoing Operating – No Significant Change o Ongoing operating expenditures remain essentially unchanged at $429,170 for FY 2026-27, with minor adjustments among individual expenditure categories.

•

One-Time Operating o No one-time operating expenditures are budgeted for FY 2026-27.

•

Capital o Street Improvements – Chip Seal Projects – $2,000,000 o Welding and Service Conversion for Truck – $20,000

•

Transfers o Transfer from HURF to Streets Capital Improvement – $500,000

•

Overall Division Budget – Decrease of $1,179,982, or 24.4% o Total expenditures decrease from $4,838,215 in FY 2025-26 to $3,658,233 in FY 2026-27, primarily reflecting lower capital expenditures, specifically for chip seal projects.

Thousands

Public Works Department - Streets Expenditures by Category $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0

$7,981,235 Personnel Services $4,838,215 $3,658,233

$3,523,228

Capital Outlay Transfers FY 2023-24 Actual

146

Operating

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Town of Chino Valley Budget FY 2026-27

Public Works Department - Streets

Public Works Department - Streets Expenditures by Category Expenditures by Category

FY 2023-24 Actual

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Increase (Decrease)

% Increase (Decrease)

Personnel Services Salaries and Wages Benefits Total Personnel

400,426 200,488 600,914

476,820 244,331 721,151

479,270 279,695 758,965

436,526 272,537 709,063

(42,744) (7,158) (49,902)

-6.6%

Operating Cellular/Data Services Clothing and Uniforms Contract and Support Services Gas/Oil HWY 89 Maintenance Maintenance - Machinery/Equip. Operating Supplies Rent - Machinery and Equipment Right-of-Way Acquisitions Road Materials Road Signs Safety Supplies Small Tools/Equipment/Furniture Travel/Training/Seminars Utilities Total Operating

1,211 3,269 1,102 32,292 100,128 45,042 1,876 6,302 109,630 5,210 873 4,366 6,088 8,625 326,014

1,212 4,353 19,146 24,903 100,128 39,903 1,571 7,872 69,557 5,173 492 3,230 3,898 13,022 294,460

1,700 3,500 32,000 38,500 111,800 40,000 1,000 4,000 3,000 150,000 20,000 600 4,500 7,150 11,500 429,250

2,420 8,700 32,000 38,500 108,800 40,000 1,000 4,000 150,000 20,000 600 4,500 7,150 11,500 429,170

720 5,200 (3,000) (3,000) (80)

0.0%

Capital Transfers

6,704,938 349,369

2,307,617 200,000

3,400,000 250,000

2,020,000 500,000

(1,380,000) 250,000

Total Expenditures by Category

$7,981,235

$3,523,228

$4,838,215

$3,658,233 $(1,179,982)

-24.4%

Public Works Department - Streets Funding Summary Expenditures by Fund Highway Users Revenue Fund General Capital Improvement Fund Streets Capital Improvement Fund SLFRF Fund Total Expenditures by Fund

FY 2023-24 Actual 1,806,742 47,922 2,770,375 3,356,196 $7,981,235

Town of Chino Valley Budget FY 2026-27

FY 2024-25 Actual 1,613,856 1,789,540 119,831 $3,523,228

FY 2025-26 Budget 1,838,215 3,000,000 $4,838,215

FY 2026-27 Budget

Increase (Decrease)

1,658,233 (179,982) 2,000,000 (1,000,000) $3,658,233 $(1,179,982)

% Increase (Decrease) -9.8% N/A -33.3% N/A -24.4%

147

Public Works Department - Streets

Streets Crew Repairing Potholes on Perkinsville Road

Public Works Department - Streets Authorized FTEs Position Streets Manager Streets Foreman Public Works Inspector Streets Maintenance Worker, Senior Streets Maintenance Worker Streets Maintenance Worker (Non-CDL) Total Authorized FTEs

148

FY 2023-24 Budget 1.00 1.00 1.00 2.00 4.00 9.00

FY 2024-25 Budget 1.00 1.00 2.00 3.00 2.00 9.00

FY 2025-26 Budget 1.00 1.00 2.00 3.00 2.00 9.00

FY 2026-27 Budget 1.00 1.00 2.00 3.00 2.00 9.00

Increase % Increase (Decrease) (Decrease) -

0.0%

Town of Chino Valley Budget FY 2026-27

Public Works Department - Utilities

Water System Operations

Wastewater System Operations

Water/Wastewater Maintenance

Mission The Water Division and its employees are committed to delivering the highest quality water that meets or exceeds all federal and state requirements to every customer at fair and reasonable rates. We remain vigilant in meeting the challenges of protecting our sole water source that is the heart of our community, our way of life and our children’s future, and securing the water resources necessary to serve the community into the future. The Town of Chino Valley Wastewater Collection and Treatment facility (WWTP) is dedicated to collecting and treating wastewater within the Town of Chino Valley in a manner that meets or exceeds federal and state regulations while placing the highest priority on courteously serving the public and protecting the environment.

Program Descriptions The Water Division is responsible for the day-to-day operations of public water in Chino Valley which includes customer service, administration, operations and maintenance, project planning and implementation, and policy development, while ensuring the Town of Chino Valley is compliant with State and Federal regulations. The Town has two water tanks and has the capacity to store over one million gallons of water for fire protection. The predominant area for water service (demand) is the Road 2 North corridor along with the Bright Star and Highlands Ranch subdivisions. The Town has 1,194 metered accounts for water service. The Town is responsible for maintaining the water supply and distribution system for its water customers. The Town operates two active wells and has 22.8 miles of water mains. The Town is not the only provider of water in the community. Currently, six other water companies provide services to the citizens of Chino Valley. The Wastewater Division conducts utility location services, system flushing, and inspections and maintenance for the wastewater collection system and wastewater treatment plant. The Town took over the operation of the 0.5-milliongallon-per-day wastewater treatment plant on April 1, 2015. The Town has 2,601 active wastewater accounts and maintains approximately 38 miles of wastewater collection lines to service those accounts. The current plant has the capacity to treat over 500,000 gallons of wastewater per day for recharge. The predominant area for sewer service is the Road 2 North corridor along with the Chino Meadows, Bright Star, and Highlands Ranch subdivisions.

Note: The Water and Wastewater Divisions are part of the Public Works Department but are presented separately, similar to Streets, to provide greater transparency into utility-related expenditures and funding.

Town of Chino Valley Budget FY 2026-27

149

Public Works Department - Utilities

FY 2026-27 Change Summary •

Personnel Services – Increase of $18,486, or 2.5% o The increase primarily reflects the 2% COLA, 0–1% merit increases, and higher health insurance premiums.

•

Ongoing Operating – Decrease of $17,900, or 1.5% o The decrease primarily reflects lower costs for compliance monitoring and testing, contract and support services, equipment, maintenance, and system maintenance and repair. These reductions are partially offset by higher merchant bank card fees, professional services, utilities, and regulatory fees.

•

One-Time Operating o No one-time operating expenditures are budgeted for FY 2026-27.

•

Capital o Water Reclamation Facility Improvements (Rollover from FY 25-26) – $9,533,260 o Bright Star PFAS Remediation (Partnership with ADEQ) – $5,000,000 o Fill Station Improvements (Rollover from FY 25-26) – $156,155 o Surge Protection at Bright Star Well – $15,000

•

Debt Service – $1,415,092 (Increase of $495,428)

•

Contingency – $97,000 (Decrease of $32,000)

•

Overall Division Budget – Increase of $2,647,988, or 17.1% o Total expenditures increase from $15,497,741 in FY 2025-26 to $18,145,729 in FY 2026-27, primarily due to increased capital investment in the Water Reclamation Facility Improvements and Bright Star PFAS remediation projects, as well as higher debt service costs.

Thousands

Public Works Department - Utilities Expenditures by Category $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0

$18,145,729 $15,497,741

Operating One-Time Operating Capital Outlay

$4,251,494

Contingency $2,993,419

Debt Service Transfers

FY 2023-24 Actual

150

Personnel Services

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Town of Chino Valley Budget FY 2026-27

Public Works Department - Utilities

Public Works Department - Utilities Expenditures by Category FY 2023-24 Actual

Expenditures by Category Personnel Services Salaries and Wages Benefits Total Personnel

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Increase (Decrease)

% Increase (Decrease)

475,361 224,646 700,007

496,635 221,795 718,430

517,693 213,743 731,436

514,460 235,462 749,922

(3,233) 21,719 18,486

2.5%

Operating ADWR/ADEQ Annual User Fees Bad Debt Expense Cellular/Data Services Chemicals Clothing and Uniforms Compliance Monitoring/Testing Contract and Support Services Equipment Gas/Oil Interfund Transfer to General Fund Maintenance Merchant Bank Card Fees NAMUA Operating Supplies Professional Services Rent - Machinery and Equipment Sanitation/Refuse Sludge Disposal Fees Small Tools/Equipment/Furniture Subscriptions and Memberships System Maintenance and Repair Travel/Training/Seminars Utilities Total Operating

9,722 (1,546) 4,740 46,034 5,263 37,022 75,792 36,184 14,552 290,000 93,260 21,078 2,888 4,659 17,280 2,058 2,275 59,425 14,195 1,361 71,194 18,547 233,913 1,059,896

280 4,344 22,799 6,623 16,014 78,578 27,501 12,190 290,000 92,766 22,630 3,641 4,604 18,921 5,804 72,501 13,991 920 65,048 14,592 240,094 1,013,841

13,000 400 4,200 39,200 7,000 75,000 50,500 93,000 16,500 290,000 124,000 12,000 3,000 4,500 15,000 2,500 5,000 78,000 14,000 1,000 96,000 19,400 234,000 1,197,200

16,000 4,200 39,200 7,000 59,500 44,500 83,000 16,500 290,000 118,500 24,000 3,000 4,500 25,500 2,500 5,000 78,000 14,000 1,000 80,000 19,400 244,000 1,179,300

3,000 (400) (15,500) (6,000) (10,000) (5,500) 12,000 10,500 (16,000) 10,000 (17,900)

-1.5%

One-Time Operating Capital Debt Service Contingency Transfers

205,669 1,328,932 906,990 50,000

22,901 330,745 907,502 -

12,520,441 919,664 129,000 -

14,704,415 1,415,092 97,000

2,183,974 495,428 (32,000) -

Total Expenditures by Category

$4,251,494

$2,993,419

$15,497,741

$18,145,729

$2,647,988

17.1%

Increase (Decrease)

% Increase (Decrease)

66,923 2,981,155 (227,909) (172,181) $2,647,988

8.1% 137.1% -8.2% -1.8% 17.1%

Public Works Department - Utilities Funding Summary Expenditures by Fund Water Fund Water Capital Improvement Fund Wastewater Fund Wastewater Capital Improv. Fund Total Expenditures by Fund

FY 2023-24 Actual 843,052 129,164 2,076,091 1,203,187 $4,251,494

Town of Chino Valley Budget FY 2026-27

FY 2024-25 Actual 734,645 1,928,029 330,745 $2,993,419

FY 2025-26 Budget 824,736 2,175,000 2,792,564 9,705,441 $15,497,741

FY 2026-27 Budget 891,659 5,156,155 2,564,655 9,533,260 $18,145,729

151

Public Works Department - Utilities

Public Works Staff Performing Maintenance at the Town’s Water Reclamation Facility

Public Works Department - Utilities Authorized FTEs Position Utilities Manager Utilities Operator WWTP Operator Utilities Maintenance Mechanic Utilities Maintenance Tech., Senior Utilities Maintenance Technician Total Authorized FTEs

152

FY 2023-24 Budget 1.00 1.00 1.00 2.00 1.00 1.00 7.00

FY 2024-25 Budget 1.00 1.00 1.00 2.00 1.00 1.00 7.00

FY 2025-26 Budget 1.00 1.00 1.00 2.00 1.00 1.00 7.00

FY 2026-27 Budget 1.00 1.00 1.00 2.00 1.00 1.00 7.00

Increase % Increase (Decrease) (Decrease) -

0.0%

Town of Chino Valley Budget FY 2026-27

Town Clerk Department

Business Licenses

Records

Elections

Mission The Town Clerk’s Office looks forward to the future and treasures the past of the Town of Chino Valley by accurately recording the actions and proceedings of the Town Council, maintaining and preserving the Town’s official records, conducting fair and impartial Town elections, and serving internal and external customers with big-town efficiency and small-town friendliness.

Program Descriptions The Town Clerk's Office provides the following services for the Town: • • • • •

Keeps a true and correct record of all business transacted by the Town Council and Council-appointed commissions, boards, committees, and subcommittees. Prepares meetings, agenda packets, and minutes, and administers the Town’s compliance under the Open Meeting Law. Administers all election-related services in accordance with state and federal law. Administers public records and the Town’s records management program. Provides support services for Town staff and the public related to public information, Town Code, liquor licenses, business licenses, public records requests, citizen complaints, local legislation, website, and notary services.

Deputy Town Clerk Sara Burchill Earns her Certified Municipal Clerk (CMC) Designation

Town of Chino Valley Budget FY 2026-27

153

Town Clerk Department

FY 2026-27 Change Summary •

Personnel Services – Increase of $16,451, or 4.5% o This increase is primarily associated with the 2% COLA, 0–1% merit increases, and higher health insurance premiums.

•

Ongoing Operating – Decrease of $3,000, or 2.6% o The decrease reflects reductions in clothing and uniforms, operating supplies, and small tools, equipment, and furniture.

•

One-Time Operating o Additional election expenditures – $35,000

•

Capital o No capital expenditures are budgeted for FY 2026-27.

•

Overall Department Budget – Increase of $48,451, or 10.0% o Total expenditures increase from $483,541 in FY 2025-26 to $531,992 in FY 2026-27, primarily due to onetime election expenditures and increased personnel costs, partially offset by lower ongoing operating expenditures.

Thousands

Town Clerk Expenditures by Category $600 $500 $400

$433,318

$483,541

$531,992 Personnel Services

$375,992

$300

Operating

$200 One-Time Operating

$100 $0 FY 2023-24 Actual

154

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Town of Chino Valley Budget FY 2026-27

Town Clerk Department

Town Clerk Expenditures by Category Expenditures by Category

FY 2023-24 Actual

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Increase (Decrease)

% Increase (Decrease)

Personnel Services Salaries and Wages Benefits Total Personnel

219,757 96,033 315,790

239,439 102,225 341,664

257,183 109,108 366,291

264,351 118,391 382,742

7,168 9,283 16,451

4.5%

Operating Advertising/Printing & Binding Cellular/Data Services Clothing and Uniforms Election Costs Maintenance - Office Equipment Operating Supplies Professional Services Records Management Rent/Lease Small Tools/Equipment/Furniture Subscriptions & Memberships Travel/Training/Seminars Total Operating

6,701 600 648 27,542 4,097 4,914 4,791 1,257 4,660 680 4,312 60,202

6,753 600 265 25,470 4,319 4,345 36,704 230 1,358 1,299 650 9,661 91,654

10,000 600 1,000 35,000 4,400 6,000 40,025 1,300 1,425 5,050 950 11,500 117,250

10,000 600 500 35,000 4,400 5,000 40,025 1,300 1,425 3,550 950 11,500 114,250

(500) (1,000) (1,500) (3,000)

-2.6%

One-Time Operating Total Expenditures by Category

$375,992

$433,318

$483,541

35,000 $531,992

35,000 $48,451

10.0%

Town Clerk Funding Summary Expenditures by Fund General Fund Total Expenditures by Fund

FY 2023-24 Actual 375,992 $375,992

Town of Chino Valley Budget FY 2026-27

FY 2024-25 Actual 433,318 $433,318

FY 2025-26 Budget 483,541 $483,541

FY 2026-27 Budget 531,992 $531,992

Increase (Decrease) 48,451 $48,451

% Increase (Decrease) 10.0% 10.0%

155

Town Clerk Department

Town Clerk Staff Show their Holiday Spirit During the Town’s Seasonal Festivities

Town Clerk Authorized FTEs Position

FY 2023-24 Budget

FY 2024-25 Budget

FY 2025-26 Budget

FY 2026-27 Budget

Increase % Increase (Decrease) (Decrease)

Town Clerk Deputy Town Clerk/Records Technician Records Technician, Senior Administrative Technician

1.00 1.00 1.00 0.80

1.00 1.00 1.00 1.00

Total Authorized FTEs

3.80

4.00

156

0.0%

Town of Chino Valley Budget FY 2026-27

Town Manager Department

Town Administration

Public Information

Economic Development

Mission The mission of the Town Manager’s Department is to administer the goals, policies, and objectives established by the Town Council; provide effective and cost-efficient public service; preserve the Town’s historic rural character; and support economic development for the benefit of the community.

Program Descriptions The Town Manager is the head of the administrative branch of Town government and serves as the Town’s Chief Operating and Administrative Officer. The Town Manager has overall responsibility for the administration of Town policies, procedures, operations, and services. The Town Manager’s office: •

• • • • •

Ensures that all laws, regulations, codes and guidelines are adhered to relating to Town government and services, budget and expenditure control. Performs liaison duties between Town Council and the operating and administrative departments. Coordinates with the Town Council to develop and implement short- and long-range goals for the Town. Coordinates with the Town Council, Finance Director and Departments to develop and administer the budget. Is responsible for economic and community development. Represents the Town in dealing with other governmental jurisdictions, agencies, private firms, professional groups, community stakeholders, the media and general public.

Town of Chino Valley Budget FY 2026-27

Town Manager Terri Denemy Received the Woman of the Year Award from the Women’s Community Network

157

Town Manager Department

FY 2026-27 Change Summary •

Personnel Services – Increase of $15,659, or 2.6% o This increase is primarily associated with the 2% COLA, 0–1% merit increases, and higher health insurance premiums.

•

Ongoing Operating – Increase of $9,000, or 9.3% o The increase is attributable to additional funding for data analytics services.

•

One-Time Operating o No one-time operating expenditures are budgeted for FY 2026-27.

•

Capital o No capital expenditures are budgeted for FY 2026-27.

•

Overall Department Budget – Increase of $24,659, or 3.5% o Total expenditures increase from $707,239 in FY 2025-26 to $731,898 in FY 2026-27, primarily due to increased personnel costs and funding for data analytics services.

Thousands

Town Manager Expenditures by Category $900 $800 $700 $600 $500 $400 $300 $200 $100 $0

$724,593

$707,239

$731,898 Personnel Services Operating

FY 2023-24 Actual

158

$765,032

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Town of Chino Valley Budget FY 2026-27

Town Manager Department

Town Manager Expenditures by Category Expenditures by Category

FY 2023-24 Actual

FY 2024-25 Actual

FY 2025-26 Budget

FY 2026-27 Budget

Increase (Decrease)

% Increase (Decrease)

Personnel Services Salaries and Wages Benefits Total Personnel

498,988 156,927 655,915

583,419 119,337 702,756

467,594 142,445 610,039

469,145 156,553 625,698

1,551 14,108 15,659

2.6%

Operating Advertising/Printing & Binding Cellular/Data Services Maintenance - Office Equipment Operating Supplies Professional Services Public Relations Small Tools/Equipment/Furniture Subscriptions & Memberships Travel/Training/Seminars Total Operating

12,591 2,385 6,454 2,659 14,712 7,246 809 3,339 18,483 68,678

19,509 1,930 4,324 3,098 9,567 5,521 213 5,590 12,524 62,276

16,000 2,700 5,000 4,000 10,000 23,000 3,000 6,500 27,000 97,200

16,000 2,700 5,000 4,000 10,000 23,000 3,000 15,500 27,000 106,200

9,000 9,000

9.3%

Total Expenditures by Category

$724,593

$765,032

$707,239

$731,898

$24,659

3.5%

Town Manager Funding Summary Expenditures by Fund General Fund Total Expenditures by Fund

FY 2023-24 Actual 724,593 $724,593

Town of Chino Valley Budget FY 2026-27

FY 2024-25 Actual 765,032 $765,032

FY 2025-26 Budget 707,239 $707,239

FY 2026-27 Budget 731,898 $731,898

Increase (Decrease) 24,659 $24,659

% Increase (Decrease) 3.5% 3.5%

159

Town Manager Department

Executive Analyst Jessi Sorteberg Secured a $50,000 T-Mobile Grant for the New Disc Golf Course

Town Manager Authorized FTEs Position

FY 2023-24 Budget

FY 2024-25 Budget

FY 2025-26 Budget

FY 2026-27 Budget

Increase % Increase (Decrease) (Decrease)

Town Manager Economic Dev./ Intergov. Manager Assistant to the Town Manager Executive Analyst Executive Assistant Administrative Technician, Senior

1.00 1.00 1.00 1.00

1.00 1.00 1.00 1.00 -

Total Authorized FTEs

4.00

160

0.0%

Town of Chino Valley Budget FY 2026-27

Debt Obligations

Debt Obligations Issuing Debt The issuance of short-term debt is restricted to projects or assets that cannot be initially financed through long-term debt. Long-term debt is reserved for capital projects and assets that the Town cannot fund through current revenues or available resources. The repayment period of each debt issuance will be aligned, whenever possible, with the estimated useful life of the associated capital project or asset. Long-term debt financing will be considered when non-recurring capital improvements are needed, especially when future residents will benefit from the improvement. In utilizing long-term debt, the Town is committed to sound financial management by conservatively projecting the revenue sources for debt repayment, setting the financing term to not exceed the asset's useful life, and ensuring a positive cost-benefit for the project, inclusive of all interest expenses.

Amount of Debt Issuances The Town will adhere to debt limitations established by Arizona state statutes and bond ordinances. Under the Arizona Constitution, a municipality may issue general obligation bonds up to 6% of assessed property valuation for general municipal purposes. Additional general obligation bonds, up to 20% of assessed valuation, are permitted for specific purposes, including water and sewer infrastructure, recreational facilities, and open space initiatives. For statutory purposes, the Town’s outstanding bonds are not classified as general obligation bonds subject to these limits, as they are secured by excise taxes rather than property taxes. This distinction allows the Town to meet its funding needs while remaining in compliance with statutory debt limitations.

Legal Debt Calculation General Obligation Bonds Water/Sewer, Lights, All Other Purposes Open Space and Parks 6% 20% $222,512,083 $222,512,083 $13,350,725 $44,502,417 0 0 $13,350,725 $44,502,417

Constitutional Debt Limitation FY 2025-26 Net Secondary Assessed Valuation Legal Debt Limit Less Outstanding Debt Available Borrowing Capacity

Note: The Town currently does not levy a property tax. Issuance of general obligation debt would require voter approval and a property tax levy sufficient to support the debt service.

Bond Ratings Bond Issue

Moody's Investors Services

S&P Global Ratings

Fitch Investors Service, Inc.

Pledged Rev. Rfdg. Oblig. Series 2021 Pledged Rev. Rfdg. Oblig. Series 2021 (Police Building)

AA-/Stable AA-/Stable

Town of Chino Valley Budget FY 2026-27

161

Debt Obligations

Total Debt Obligations (Includes Principal and Interest)

Millions

2.5 2.0

1.5 1.0 0.5

Revenue Bonds

2047

2046

2045

2044

2043

2042

2041

2040

2039

2038

2037

2036

2035

2034

2033

2032

2031

2030

2029

2028

2027

0.0

WIFA

Current Debt Obligations Debt Obligation

Term

Beginning Principal 7/1/2026

Principal Payments

Interest Payments

Ending Principal 6/30/2027

Governmental Funds Refunding Obligations 2021 Police Building 2021

Jul-31 Jul-46

$4,432,289 5,555,000

$629,724 175,000

$205,871 221,575

$3,802,565 5,380,000

9,987,289

804,724

427,446

9,182,565

142,711 105,059 666,401 1,480,114 2,766,366 183,664

20,276 105,059 328,577 151,673 184,108 13,414

6,629 1,449 14,129 28,226 62,686 4,275

122,435 337,824 1,328,441 2,582,258 170,250

Total Enterprise Funds

5,344,315

803,107

117,394

4,541,208

Total Debt Service

$15,331,604

$1,607,831

$544,840

$13,723,773

Total Governmental Funds Enterprise Funds Refunding Obligations 2021 WIFA Loan 2007 WIFA Loan 2008 WIFA Loan 2014 WIFA Loan 2015 WIFA Loan 2017

162

Jul-31 Jul-26 Jul-27 Jul-34 Jul-37 Jul-37

Funding Source

Excise Tax Excise Tax

Water User Fees Wastewater User Fees Wastewater User Fees Wastewater User Fees Wastewater User Fees Wastewater User Fees

Town of Chino Valley Budget FY 2026-27

Debt Obligations

Governmental Funds Debt Schedules Purpose: These refunding obligations were issued to refund the Series 2010, Series 2010 Refunding, and Series 2016 bonds.

Refunding Obligations 2021 Date

Principal

Jul-26 Jan-27 Jul-27 Jan-28 Jul-28 Jan-29 Jul-29 Jan-30 Jul-30 Jan-31 Jul-31 Total

Interest

Total

847,706 4,432,289

110,807 95,064 95,064 78,110 78,110 59,945 59,945 41,174 41,174 21,193 21,193 701,779

740,531 95,064 773,228 78,110 804,715 59,945 810,770 41,174 840,439 21,193 868,899 5,134,068

2029

2030

2031

629,724 678,164 726,605 750,825 799,265

Thousands

1,000 800 600 400 200 0 2027

2028

Principal

Town of Chino Valley Budget FY 2026-27

2032

Interest

163

Debt Obligations

Purpose: These obligations were issued to finance the new Police Building

Jul-26 Jan-27 Jul-27 Jan-28 Jul-28 Jan-29 Jul-29 Jan-30 Jul-30 Jan-31 Jul-31 Jan-32 Jul-32 Jan-33 Jul-33 Jan-34 Jul-34 Jan-35 Jul-35 Jan-36 Jul-36 Jan-37 Jul-37 Jan-38 Jul-38 Jan-39 Jul-39 Jan-40 Jul-40 Jan-41 Jul-41 Jan-42 Jul-42 Jan-43 Jul-43 Jan-44 Jul-44 Jan-45 Jul-45 Jan-46 Jul-46 Total

164

Principal

Interest

Total

175,000

112,100 109,475 109,475 105,975 105,975 101,600 101,600 97,600 97,600 93,600 93,600 88,600 88,600 84,200 84,200 79,600 79,600 74,800 74,800 69,800 69,800 64,600 64,600 59,200 59,200 53,600 53,600 47,800 47,800 41,800 41,800 35,500 35,500 29,000 29,000 22,200 22,200 15,100 15,100 7,700 7,700 2,675,600

287,100 109,475 284,475 105,975 280,975 101,600 301,600 97,600 297,600 93,600 293,600 88,600 308,600 84,200 314,200 79,600 319,600 74,800 324,800 69,800 329,800 64,600 334,600 59,200 339,200 53,600 343,600 47,800 347,800 41,800 356,800 35,500 360,500 29,000 369,000 22,200 377,200 15,100 385,100 7,700 392,700 8,230,600

175,000 175,000 200,000 200,000 200,000 220,000 230,000 240,000 250,000 260,000 270,000 280,000 290,000 300,000 315,000 325,000 340,000 355,000 370,000 385,000 5,555,000

500 400 300 200 100 0 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047

Date

Thousands

Police Building 2021

Principal

Interest

Town of Chino Valley Budget FY 2026-27

Debt Obligations

Enterprise Funds Debt Schedules Purpose: This revenue bond was to refinance prior bonds related to the water system.

Refunding Obligations 2021 Jul-26 Jan-27 Jul-27 Jan-28 Jul-28 Jan-29 Jul-29 Jan-30 Jul-30 Jan-31 Jul-31 Total

Principal

Interest

20,276

3,568 3,061 3,061 2,515 2,515 1,930 1,930 1,326 1,326 682 682 22,596

21,836 23,395 24,175 25,735 27,294 142,711

Total 23,844 3,061 24,897 2,515 25,910 1,930 26,105 1,326 27,061 682 27,976 165,307

Thousands

Date

30 25 20 15 10 5 0 2027

2028

2029 Principal

2030

2031

2032

Interest

Purpose: This loan from the Water Infrastructure Finance Authority of Arizona (WIFA) was for improvements to the sewer system.

WIFA Loan 2007 Date Jul-26 Total

Principal

Interest

105,059 105,059

1,449 1,449

Town of Chino Valley Budget FY 2026-27

Total 106,508 106,508

165

Debt Obligations

WIFA Loan 2008 Date Jul-26 Jan-27 Jul-27 Total

Principal

Interest

328,577

9,376 4,753 4,754 18,883

337,824 666,401

Total 337,953 4,753 342,578 685,284

Thousands

Purpose: This loan from WIFA was for improvements to the sewer system. 400 350 300 250 200 150 100 50 0 2027

2028 Principal

Interest

2030

2032

Purpose: This loan from WIFA was for improvements to the sewer system.

WIFA Loan 2014 Jul-26 Jan-27 Jul-27 Jan-28 Jul-28 Jan-29 Jul-29 Jan-30 Jul-30 Jan-31 Jul-31 Jan-32 Jul-32 Jan-33 Jul-33 Jan-34 Jul-34 Total

166

Principal

Interest

Total

151,673

14,875 13,351 13,351 11,796 11,796 10,210 10,210 8,592 8,592 6,941 6,941 5,257 5,257 3,540 3,540 1,787 1,787 137,823

166,548 13,351 168,073 11,796 169,628 10,210 171,214 8,592 172,832 6,941 174,482 5,257 176,166 3,540 177,884 1,787 179,636 1,617,937

154,722 157,832 161,004 164,240 167,541 170,909 174,344 177,849 1,480,114

185 180 175 170 165 160 155 150 145 140 135

Thousands

Date

2027

2028

2029

Principal

2031

2033

2034

2035

Interest

Town of Chino Valley Budget FY 2026-27

Debt Obligations

Purpose: This loan from WIFA was for a sewer line extension and refinancing of the USDA loan.

WIFA Loan 2015 Date

Thousands

Jul-26 Jan-27 Jul-27 Jan-28 Jul-28 Jan-29 Jul-29 Jan-30 Jul-30 Jan-31 Jul-31 Jan-32 Jul-32 Jan-33 Jul-33 Jan-34 Jul-34 Jan-35 Jul-35 Jan-36 Jul-36 Jan-37 Jul-37 Total

Principal

Interest

Total

184,108

32,422 30,264 30,264 28,020 28,020 25,686 25,686 23,259 23,259 20,735 20,735 18,109 18,109 15,379 15,379 12,540 12,540 9,587 9,587 6,516 6,516 3,322 3,322 419,256

216,530 30,264 221,736 28,020 227,151 25,686 232,782 23,259 238,639 20,735 244,730 18,109 251,064 15,379 257,652 12,540 264,504 9,587 271,630 6,516 279,040 3,322 286,747 3,185,622

191,472 199,131 207,096 215,380 223,995 232,955 242,273 251,964 262,043 272,524 283,425 2,766,366

350 300 250 200 150 100 50 0 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Principal

Town of Chino Valley Budget FY 2026-27

Interest

167

Debt Obligations

Purpose: This loan from WIFA was for a sewer line extension.

WIFA Loan 2017 Date

Thousands

Jul-26 Jan-27 Jul-27 Jan-28 Jul-28 Jan-29 Jul-29 Jan-30 Jul-30 Jan-31 Jul-31 Jan-32 Jul-32 Jan-33 Jul-33 Jan-34 Jul-34 Jan-35 Jul-35 Jan-36 Jul-36 Jan-37 Jul-37 Total

Principal

Interest

13,414

2,219 2,056 2,056 1,891 1,891 1,721 1,721 1,547 1,547 1,368 1,368 1,186 1,186 999 999 807 807 611 611 410 410 204 205 27,820

13,738 14,070 14,410 14,758 15,114 15,479 15,853 16,236 16,629 17,031 16,932 183,664

Total 15,633 2,056 15,794 1,891 15,961 1,721 16,131 1,547 16,305 1,368 16,482 1,186 16,665 999 16,852 807 17,043 611 17,240 410 17,441 204 17,137 211,484

20 15 10 5 0 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038

Principal

168

Interest

Town of Chino Valley Budget FY 2026-27

Capital Improvement Plan

Capital Improvement Plan Overview The Capital Improvement Plan (CIP) outlines the Town’s long-term capital investments over a five-year planning period. This process identifies essential facilities and infrastructure upgrades required to support the Town’s operations and deliver expected public services. Capital improvements generally include structures, buildings, site enhancements, equipment, or other significant assets with a useful life of at least five (5) years that serve public purposes. The Town defines capital expenditures as projects valued at $50,000 or more, focused on creating new infrastructure or enhancing the capacity, efficiency, or lifespan of existing assets. While the expenditures planned for the first year are incorporated into the annual budget as the capital budget, the CIP process itself is ongoing. It plays a critical role in the Town’s overall management strategy, ensuring that capital planning aligns with community needs and long-term goals. This section begins with an overview of the project selection process, followed by: • Capital Program: o Minor projects, vehicles, equipment: A summarized list by fund, detailing minor projects totaling $1,210,000 for FY 2026-27. o Major projects 5-year schedule: A schedule outlining major projects, listed by fund and project, totaling $21,301,122 for FY 2026-27. The projected costs over the five-year period total $58,926,122. • Operating Impact: A summary by project, presenting the five-year operating impact of major projects. • Project Details: Detailed information on each major project included in the five-year schedule, including narrative descriptions, cost estimates, and anticipated operating costs or savings.

Process of Project Selection Project Identification and Funding Process: The Town’s Capital Improvement Plan (CIP) is developed through a collaborative process to identify, prioritize, and fund key capital projects that align with community needs and strategic objectives. Projects are identified by Town departments based on infrastructure needs, anticipated growth, and long-term service goals. Each department assesses potential projects according to factors such as public safety, operational efficiency, environmental impact, and regulatory requirements. Citizen Involvement and Prioritization: The Citizens’ Capital Improvement Program Advisory Committee (CIPCAC) plays an integral role in the CIP process. Comprising local residents, the CIPCAC reviews proposed projects and assists in prioritizing them based on criteria such as community benefit, urgency, and alignment with the Town’s goals. This committee offers a critical community perspective, ensuring that the Town’s capital priorities reflect resident values and needs. Funding Sources and Allocation: Once projects are identified and prioritized, funding sources are evaluated. Potential funding options include the Town’s general fund, bonds, grants, and other sources such as state and federal programs. The selection of funding sources depends on project scale, urgency, and feasibility, with larger initiatives often requiring a combination of funding streams. By aligning funding strategies with project timelines and goals, the Town ensures fiscal responsibility and sustainability in its capital investments. Town of Chino Valley Budget FY 2026-27

169

Capital Improvement Plan

Capital Program – Minor Projects, Vehicles, and Equipment Fund Governmental Funds Capital Asset Replacement Fund Court Improvement Fund General Fund General Fund General Fund General Fund Grant Fund Highway User Revenue Fund Total Governmental Funds

Project

FY 2026-27

Replacement of Two Fully Equipped Patrol Units Court Improvements (Security, Computers, Printers) Annual Parking Lot Maintenance Annual Roofing Program Annual HVAC Replacements Pool Facility Updates Miscellaneous Grants Welding and Service Conversion for Truck Total Governmental Funds

180,000 50,000 75,000 75,000 30,000 15,000 750,000 20,000 1,195,000

Enterprise Funds Water Fund Total Enterprise Funds Total All Funds

Surge Protection at Bright Star Well Total Enterprise Funds Total All Funds

15,000 15,000 1,210,000

Vactor Truck Purchased in FY 2025-26

170

Town of Chino Valley Budget FY 2026-27

Capital Improvement Plan

Capital Program – Major Projects 5-Year Schedule Fund/Project

FY 26-27

FY 27-28

FY 28-29

FY 29-30

FY 30-31

Total

General Capital Improvement Fund Misc. Projects at Old Home Manor Community Center Park Improvements Water/Sewer Extensions Stabilization of Fred Harvey Farm Peavine South Connection Field Lighting (Field 4/Playground) Parks Maintenance Building Fleet Maintenance Building Yavapai County Drainage Projects Northern Peavine Trail Alignment New Town Hall

1,000,000 530,000 197,200 160,146 155,289 -

1,000,000 275,000 1,500,000 300,000 300,000 100,000 100,000 -

1,000,000 280,000 2,000,000 2,000,000 160,000 -

1,000,000 465,000 160,000 -

1,000,000 1,400,000 160,000 15,000,000

5,000,000 2,950,000 197,200 160,146 155,289 1,500,000 2,300,000 2,300,000 580,000 100,000 15,000,000

Grant Fund Peavine South Connection Shooting Range Bathroom

2,569,072 -

275,000

2,569,072 275,000

Streets Capital Improvement Fund Street Improvements Streets Parking/Building Improvements Total Governmental Funds

2,000,000 6,611,707

2,000,000 150,000 6,000,000

2,000,000 7,440,000

2,000,000 3,625,000

2,000,000 19,560,000

10,000,000 150,000 43,236,707

Water Capital Improvement Fund Bright Star PFAS Remediation Fill Station Improvements Utility Line Extension

5,000,000 156,155 -

500,000

5,000,000 156,155 500,000

Wastewater Capital Improvement Fund WRF Improvements Utility Line Extension Total Enterprise Funds

9,533,260 14,689,415

500,000 1,000,000

9,533,260 500,000 15,689,415

Total All Funds

$21,301,122

$7,000,000

$7,440,000

$3,625,000

$19,560,000

$58,926,122

Chip Seal Project on N Road 1 West

Town of Chino Valley Budget FY 2026-27

171

Capital Improvement Plan

Operating Impact All capital improvements have impact on the Town’s operating budget, either positively or negatively. Many CIP projects will incur ongoing costs, influencing available resources for future budgets. Typical annual costs include personnel, utilities, and maintenance. Conversely, some capital projects may positively affect the budget by generating new revenue, reducing utility consumption, or streamlining Town services through automation. Operating impacts for each project are estimated using historical data from similar assets and any project-specific details. The table below presents the major CIP projects with anticipated effects on future operating budgets. On each major project’s detail page in the following section, the expenses or savings are listed by type.

Capital Program – Major Projects Estimated Operating Impact Fund/Project

FY 26-27

FY 27-28

FY 28-29

FY 29-30

FY 30-31

Total

General Fund Community Center Park Improvements Peavine South Connection Field Lighting (Field 4/Playground) Parks Maintenance Building Fleet Maintenance Building Yavapai County Drainage Projects Northern Peavine Trail Alignment

2,700 7,500 20,500 -

4,200 7,500 26,000 (10,000) 1,500

2,700 7,500 26,000 90,000 90,000 (10,000) 1,500

9,200 7,500 26,000 90,000 90,000 (10,000) 1,500

18,800 30,000 98,500 180,000 180,000 (30,000) 4,500

Grant Fund Shooting Range Bathroom

6,580

19,740

Streets Capital Improvement Fund Chip Seal Projects Streets Parking/Building Improvements Total Governmental Funds

(24,000) 6,700

(24,000) 1,500 13,280

(24,000) 1,500 191,780

(24,000) 1,500 198,280

(96,000) 4,500 410,040

Water Fund Bright Star PFAS Remediation Fill Station Improvements Water/Sewer Extensions Utility Line Extension

(35,000) (30,000) -

100,000 (2,500) (4,100) (28,000)

100,000 (2,500) (4,100) (2,750)

100,000 (2,500) (4,100) (2,500)

100,000 15,000 (4,100) (2,500)

400,000 (27,500) (46,400) (35,750)

Wastewater Fund WRF Improvements Water/Sewer Extensions Utility Line Extension Total Enterprise Funds

(250,000) (315,000)

32,500 (18,000) (272,000) (192,100)

65,000 (18,000) (28,000) 109,650

65,000 (18,000) (28,000) 109,900

65,000 (18,000) (28,000) 127,400

227,500 (322,000) (356,000) (160,150)

Total All Funds

$(315,000)

$(185,400)

$122,930

$301,680

$325,680

$249,890

172

Town of Chino Valley Budget FY 2026-27

Capital Improvement Plan – Project Details

Department Division

Non-Departmental N/A

Request Purpose

Enhance service levels

Title Type

Miscellaneous Projects at Old Home Manor Special Revenue/Project - only moves forward if matching revenues are identified

Justification

This is a budget placeholder for miscellaneous capital projects at Old Home Manor that may arise during the fiscal year. This allocation is intended to provide flexibility in addressing unforeseen needs or opportunities in capital improvement that are not currently anticipated. It is important to note that while this placeholder allows us to be responsive and agile, any projects initiated under this allocation will need to demonstrate a potential for revenue generation or cost recovery. We anticipate these projects will be centered around Old Home Manor where there may be land sales or development that provides revenue for expansion of utilities or other improvements. This approach ensures that while we are prepared to invest in necessary capital projects that enhance our infrastructure or services, we also maintain a focus on financial sustainability. By requiring that these projects have a revenue-generating component, we ensure that our investments are economically viable and contribute to the long-term financial health of our organization. This strategic allocation will be monitored closely to ensure that it aligns with our broader fiscal policies and community goals.

Description Miscellaneous projects

Estimated Expenses FY 26-27 FY 27-28 FY 28-29 1,000,000 1,000,000 1,000,000

FY 29-30 1,000,000

FY 30-31 1,000,000

Total 5,000,000

Net Impact

5,000,000

Other Estimated Costs (Savings): To be determined if projects identified

Town of Chino Valley Budget FY 2026-27

173

Capital Improvement Plan – Project Details

Department Division

Community Services Recreation

Title Type

Community Center Park Improvements Funded through existing fund balance for Phase 1A and 1B, future year funding still to be determined

Justification

The Town will continue phased improvements to Community Center Park. FY 2026-27 includes Phase 1A, consisting of west parking, grading, and drainage improvements, and Phase 1B, which will construct four new pickleball courts. Future phases are anticipated to include east and central parking improvements, dog park enhancements, additional pickleball courts, trails and landscaping, and additional amenities such as restrooms, ramadas, playground equipment, a splash pad, and lighting. Future phases are not currently funded, and the Town will continue to pursue grant opportunities and other available funding sources to support their completion.

Description Park Improvements - Phase 1A Park Improvements - Phase 1B Park Improvements - Future Phases Other Estimated Costs (Savings): Annual Maintenance Line Repainting Resurfacing Equipment Replacement

174

Request Purpose

Estimated Expenses FY 26-27 FY 27-28 FY 28-29 250,000 280,000 275,000 280,000

2,000 700 -

2,000 700 1,500

Enhance service levels

FY 29-30 465,000

FY 30-31 1,400,000

Total 250,000 280,000 2,420,000

2,000 700 -

2,000 700 5,000 1,500 Net Impact

8,000 2,800 5,000 3,000 2,968,800

Town of Chino Valley Budget FY 2026-27

Capital Improvement Plan – Project Details

Department Division

Public Works Water/Wastewater

Request Purpose

Title Type

Water/Sewer Extensions Funded through existing fund balance

Justification

This project provides for the Town’s participation in the extension of water and sewer infrastructure to serve the proposed 40-unit Highlands Apartments development near East Road 1 North and Peppertree Place. The developer will construct approximately 500 feet of water and sewer mains to connect the development to existing Town infrastructure. The sewer main will be constructed at an increased depth to accommodate future expansion of sewer service west of the property and across Highway 89. The Town’s contribution toward the eligible infrastructure improvements is not to exceed $197,200, with the developer responsible for the remaining costs. The project is also expected to generate approximately $280,000 in one-time utility buy-in fees, as well as ongoing monthly water and sewer revenues.

Description Water/Sewer Extensions

Estimated Expenses FY 26-27 FY 27-28 FY 28-29 197,200 -

Other Estimated Costs (Savings): Annual Maintenance Utility Service Revenues Utility Buy-In Fees

(280,000)

Town of Chino Valley Budget FY 2026-27

2,900 (25,000) -

Enhance service levels

FY 29-30 -

2,900 (25,000) -

FY 30-31 -

Total 197,200

2,900 (25,000) Net Impact

11,600 (100,000) (280,000) (171,200)

175

Capital Improvement Plan – Project Details

Department Division

Non-Departmental N/A

Title Type

Stabilization of Fred Harvey Farm Funded through existing fund balance

Justification

This project provides for the stabilization and preservation of historic structures located on the 23-acre Fred Harvey Farm at Del Rio Springs. The property was acquired by the Town in partnership with the Trust for Public Land as part of ongoing efforts to preserve the historic Del Rio Springs area. Improvements will focus on protecting and stabilizing the existing historic buildings to prevent further deterioration while preserving the property for future public use. The stabilization work represents an initial step toward the Town’s longterm vision of preserving the site and developing it as a unique historic and recreational destination for the community and region. Future use of the property may result in both additional operating expenses and potential revenues. These impacts will depend on the ultimate use and management of the property and are still being evaluated.

Description Stabilization of Fred Harvey Farm

Request Purpose

Estimated Expenses FY 26-27 FY 27-28 FY 28-29 160,146 -

Enhance service levels

FY 29-30 -

FY 30-31 -

Total 160,146

Net Impact

160,146

Other Estimated Costs (Savings): To be determined

176

Town of Chino Valley Budget FY 2026-27

Capital Improvement Plan – Project Details

Department Division

Community Services Recreation

Title Type

Peavine South Connection Funded through existing fund balance and grant funds

Justification

This project will complete approximately two miles of trail connecting Chino Valley’s existing Peavine Trail with the City of Prescott’s trail system, closing a gap in the regional trail network and providing a continuous connection for pedestrians, bicyclists, and equestrian users. The project includes final design and construction, including a concrete ford crossing at Granite Creek and approximately 22,000 linear feet of game fencing. The Town was awarded $2,569,072 through ADOT’s Transportation Alternatives Program, with a required Town match of $155,289, for a total project investment of approximately $2.72 million. The completed connection will expand recreational access for residents and visitors and support the Town’s broader outdoor recreation and tourism efforts.

Description Peavine South Connection - Match Peavine South Connection - Grant Other Estimated Costs (Savings): Annual Trail Maintenance Drainage Maintenance

Town of Chino Valley Budget FY 2026-27

Request Purpose

Estimated Expenses FY 26-27 FY 27-28 FY 28-29 155,289 2,569,072 -

6,000 1,500

Enhance service levels

FY 29-30 -

6,000 1,500

FY 30-31 -

Total 155,289 2,569,072

6,000 1,500 Net Impact

24,000 6,000 2,754,361

177

Capital Improvement Plan – Project Details

Department Division

Public Works Parks Maintenance

Title Type

Field Lighting (Field 4/Playground) Funding source to be determined

Justification

Youth sports participation continues to grow, increasing demand for available field space and extending the need for evening use. This project will provide additional field lighting to expand usable hours and better accommodate practices, games, and other recreational activities. Lighting improvements near the playground will also improve visibility and safety for children and families using the area during evening hours.

Description Field 4/Playground Lighting Other Estimated Costs (Savings): Annual Maintenance Electric

178

Request Purpose

Estimated Expenses FY 26-27 FY 27-28 FY 28-29 1,500,000 -

15,000 5,500

15,000 11,000

Enhance service levels

FY 29-30 -

15,000 11,000

FY 30-31 -

Total 1,500,000

15,000 11,000 Net Impact

60,000 38,500 1,598,500

Town of Chino Valley Budget FY 2026-27

Capital Improvement Plan – Project Details

Department Division

Public Works Parks Maintenance

Title Type

Parks Maintenance Building Funding source to be determined

Justification

Parks and Facilities staff currently operate from multiple locations, including the Community Center Park announcer’s booth, Community Center, Aquatics Building, and various storage buildings throughout Town. Existing spaces provide limited office, storage, and workspace capacity, and the Parks yard does not currently have water or electrical service. With the consolidation of Parks, Facilities, and Aquatics Maintenance functions and continued staffing needs, this project will provide a centralized facility with appropriate workspace, storage, and supporting utilities for these operations.

Description Parks Maintenance Building - Design Building - Construction Other Estimated Costs (Savings): Annual Maintenance Utilities

Town of Chino Valley Budget FY 2026-27

Request Purpose

Maintain existing service levels

Estimated Expenses FY 26-27 FY 27-28 FY 28-29 300,000 2,000,000

FY 29-30 -

40,000 50,000

FY 30-31 -

Total 300,000 2,000,000

40,000 50,000 Net Impact

80,000 100,000 2,480,000

179

Capital Improvement Plan – Project Details

Department Division

Public Works Fleet Maintenance

Title Type

Fleet Maintenance Building Funding source to be determined

Justification

Fleet operations currently have limited dedicated space for vehicle and equipment maintenance, parts and supplies storage, and administrative functions. As illustrated by the existing Fleet facility shown below, the current building has limited space and clearance to accommodate the Town’s larger vehicles and equipment, restricting the types of maintenance activities that can be performed indoors. As the Town’s fleet and operational needs continue to grow, this project will provide a centralized Fleet facility with appropriate shop, storage, workspace, and supporting infrastructure to accommodate current operations and future needs.

Description Fleet Maintenance Building - Design Building - Construction Other Estimated Costs (Savings): Annual Maintenance Utilities

180

Request Purpose

Maintain existing service levels

Estimated Expenses FY 26-27 FY 27-28 FY 28-29 300,000 2,000,000

FY 29-30 -

40,000 50,000

FY 30-31 -

Total 300,000 2,000,000

40,000 50,000 Net Impact

80,000 100,000 2,480,000

Town of Chino Valley Budget FY 2026-27

Capital Improvement Plan – Project Details

Department Division

Public Works Engineering/Streets

Request Purpose

Enhance service levels

Title Type

Yavapai Drainage Projects Special Revenue/Project - only moves forward if matching revenues are identified

Justification

This item is for general drainage improvement projects within our jurisdiction. These projects are crucial for managing stormwater effectively, preventing flooding, and ensuring the safety and longevity of our infrastructure. Funding for these initiatives will be sourced from an allocation provided to the Town by Yavapai County, collected through property taxes from the residents in our jurisdiction. One identified project that would potentially occur with $100,000 of these funds is a ROW acquisition. The County has sponsored an NRCS grant for flood protection and prevention in the Granite Creek Water Shed. The two major project sites are a bridge crossing of Granite Creek on Perkinsville Road and a diversion channel of Cemetery Draw along Juniper Dr. ROW acquisition must be carried out and paid for by the sponsoring agencies. While donations are expected, there may still be some legal expenses associated with the acquisition. These include title searches, environmental assessments, and legal fees.

Description Drainage projects Other Estimated Costs (Savings): Annual Maintenance Savings

Town of Chino Valley Budget FY 2026-27

Estimated Expenses FY 26-27 FY 27-28 FY 28-29 100,000 160,000

(10,000)

FY 29-30 160,000

FY 30-31 160,000

Total 580,000

(10,000)

(10,000) Net Impact

(30,000) 550,000

181

Capital Improvement Plan – Project Details

Department Division

Community Services Recreation

Title Type

Northern Peavine Trail Alignment Funded through existing fund balance

Justification

The proposed northern extension of the existing Peavine Trail would expand regional trail connectivity and recreational opportunities for pedestrians, bicyclists, and other trail users. The proposed alignment would cross approximately one mile of State Trust land and may require fencing or other improvements as part of the eventual trail development. This project provides funding to further evaluate and establish the proposed alignment in preparation for future development of the trail connection.

Description Northern Peavine Trail Alignment Other Estimated Costs (Savings): Annual Maintenance

182

Request Purpose

Estimated Expenses FY 26-27 FY 27-28 FY 28-29 100,000 -

1,500

Enhance service levels

FY 29-30 -

1,500

FY 30-31 -

Total 100,000

1,500 Net Impact

4,500 104,500

Town of Chino Valley Budget FY 2026-27

Capital Improvement Plan – Project Details

Department Division

Public Works Facilities

Title Type

New Town Hall Bond/loan funded project - only moves forward if matching revenues are identified

Justification

This project provides for the future construction of a new Town Hall at Old Home Manor to consolidate municipal offices and services currently located in multiple facilities. A centralized facility would provide space for Town departments, improve public access to municipal services, and support coordination between departments. The Old Home Manor location also provides capacity for future expansion and potential development of additional civic and community facilities.

Description New Town Hall

Request Purpose

Estimated Expenses FY 26-27 FY 27-28 FY 28-29 -

Maintain existing service levels

FY 29-30 -

FY 30-31 15,000,000

Total 15,000,000

Other Estimated Costs (Savings): Maintenance & repairs of new facility Utilities Note: there will be ongoing costs associated with this building but they won't be realized until FY 31-32 Net Impact 15,000,000

Town of Chino Valley Budget FY 2026-27

183

Capital Improvement Plan – Project Details

Department Division

Police N/A

Title Type

Shooting Range Bathroom Funding source to be determined

Justification

The Police Shooting Range is a frequently used Town facility that supports routine training as well as larger training events with up to 40 or more participants. The range currently relies on a single portable restroom, which provides limited capacity during scheduled trainings and larger events. This project will construct a permanent restroom facility with separate men’s and women’s facilities, providing a more durable and maintainable long-term solution for range users. The Town has explored grant and other alternative funding opportunities; however, no external funding source has been identified at this time.

Description Shooting Range Bathroom Other Estimated Costs (Savings): Annual Maintenance Utilities Rental of Portable Bathrooms Savings

184

Request Purpose

Estimated Expenses FY 26-27 FY 27-28 FY 28-29 275,000 -

5,000 3,500 (1,920)

Maintain existing service levels

FY 29-30 -

5,000 3,500 (1,920)

FY 30-31 -

Total 275,000

5,000 3,500 (1,920) Net Impact

15,000 10,500 (5,760) 294,740

Town of Chino Valley Budget FY 2026-27

Capital Improvement Plan – Project Details

Department Division

Public Works Streets

Title Type

Street Improvements Funded through existing fund balance for current year; funding for future years to be determined

Justification

As part of the Town’s ongoing pavement management program, FY 2026-27 improvements will focus on preserving and extending the useful life of Town streets. Approximately 5% to 10% of available funding will be used for crack filling and seal coating on various streets. The remaining funding will support the pulverization, preparation, and application of a double chip seal to prioritized streets based on pavement conditions and staff recommendations. The proposed street list will be reviewed with Council prior to approval of the project contract.

Description Various local streets Other Estimated Costs (Savings): Annual Maintenance Savings

Town of Chino Valley Budget FY 2026-27

Request Purpose

Estimated Expenses FY 26-27 FY 27-28 FY 28-29 2,000,000 2,000,000 2,000,000

(24,000)

Maintain existing service levels

FY 29-30 2,000,000

FY 30-31 2,000,000

Total 10,000,000

(24,000)

(24,000) Net Impact

(96,000) 9,904,000

185

Capital Improvement Plan – Project Details

Department Division

Public Works Streets

Title Type

Streets Parking/Building Improvements Funding source to be determined

Justification

The Streets office building, constructed in 2024, requires additional site and facility improvements to better support daily operations and accessibility. Planned 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 permanent electrical service. These improvements will improve access, functionality, and usability of the facility for staff and visitors.

Description Streets Parking/Building Improvements Other Estimated Costs (Savings): Annual Maintenance

186

Request Purpose

Estimated Expenses FY 26-27 FY 27-28 FY 28-29 150,000 -

1,500

Maintain existing service levels

FY 29-30 -

1,500

FY 30-31 -

Total 150,000

1,500 Net Impact

4,500 154,500

Town of Chino Valley Budget FY 2026-27

Capital Improvement Plan – Project Details

Department Division

Public Works Water

Title Type

Bright Star PFAS Remediation WIFA loan/grant funded project

Justification

The Town is partnering with the Arizona Department of Environmental Quality (ADEQ) to address PFAS contamination at the Bright Star Well and protect the Town’s drinking water supply. ADEQ initially committed approximately $5.1 million toward the project; however, as design and engineering progressed, the anticipated project scope and costs increased beyond the original funding available. The Town has budgeted an additional $5 million for the project and is pursuing funding through the Water Infrastructure Finance Authority of Arizona (WIFA), with approximately 90% anticipated to be provided as forgivable principal and 10% as the Town’s repayment obligation. The combined funding will support completion of the treatment improvements necessary to return the well to reliable service and meet applicable drinking water standards.

Description Bright Star PFAS Remediation Other Estimated Costs (Savings): Treatment and O&M

Town of Chino Valley Budget FY 2026-27

Request Purpose

Estimated Expenses FY 26-27 FY 27-28 FY 28-29 5,000,000 -

100,000

Maintain existing service levels

FY 29-30 -

FY 30-31 -

Total 5,000,000

100,000

100,000 Net Impact

400,000 5,400,000

187

Capital Improvement Plan – Project Details

Department Division

Public Works Water

Title Type

Fill Station Improvements Funded through existing fund balance

Justification

The Fill Station near Walgreens requires site improvements to address deteriorating pavement and drainage concerns associated with ongoing station use. With the Town’s second fill station now operational, the existing station can be temporarily closed while improvements are completed. The project will remove the existing asphalt pavement and replace it with concrete, which is better suited to withstand the frequent water exposure associated with fill station operations. The project will also address runoff from the site in response to drainage concerns raised by adjacent property owners.

Description Fill Station Improvements Other Estimated Costs (Savings): Annual Maintenance Savings

188

Request Purpose

Estimated Expenses FY 26-27 FY 27-28 FY 28-29 156,155 -

(35,000)

(2,500)

Maintain existing service levels

FY 29-30 -

(2,500)

FY 30-31 -

Total 156,155

15,000 Net Impact

(27,500) 128,655

Town of Chino Valley Budget FY 2026-27

Capital Improvement Plan – Project Details

Department Division

Public Works Wastewater

Request Purpose

Maintain existing service levels

Title Type

Water Reclamation Facility Improvements WIFA Loan/grant funded project

Justification

The Town’s Water Reclamation Facility (WRF), located at Old Home Manor, was constructed in 2004 and requires improvements to support continued treatment operations and address aging facility components. The project includes new aerated equalization tanks and a pump station, replacement UV disinfection units, sludge storage tanks, odor control improvements at the dewatering and headworks facilities, underground utilities, electrical and instrumentation improvements, site grading, and other supporting improvements. The project is being delivered using the Construction Manager at Risk (CMAR) method, with Felix Construction Company serving as the contractor and PACE providing engineering and construction support services. Construction is anticipated to be completed in the first quarter of 2028. The $10 million project is funded through a Water Infrastructure Finance Authority of Arizona (WIFA) loan, including $1.26 million in forgivable principal. The remaining loan balance will be repaid over 20 years at an interest rate not to exceed 4.40%.

Description Plant Expansion - Engineering WRF Improvements Other Estimated Costs (Savings): Annual Maintenance Minor Repairs Electricity

Town of Chino Valley Budget FY 2026-27

Estimated Expenses FY 26-27 FY 27-28 FY 28-29 358,505 9,174,755 -

10,000 7,500 15,000

20,000 15,000 30,000

FY 29-30 -

20,000 15,000 30,000

FY 30-31 -

Total 358,505 9,174,755

20,000 15,000 30,000 Net Impact

70,000 52,500 105,000 9,760,760

189

Capital Improvement Plan – Project Details

Department Division

Public Works Water/Wastewater

Title Type

Utility Line Extension (Road 1 East to Roadrunner) Bond/loan/grant funded project - only moves forward if matching revenues are identified

Justification

This project serves as a placeholder for the extension of water and sewer infrastructure along Road 1 East to serve the Roadrunner Trailer Park, contingent upon development of the Craftsman Court Subdivision. The proposed extension would include approximately one-quarter mile of new water and sewer lines and provide the opportunity for approximately 45 spaces at the trailer park to connect to Town utility services. The project would expand the Town’s utility infrastructure and provide municipal water and wastewater service to the property. Funding is anticipated to be pursued through municipal bonds or other available financing sources if the project moves forward.

Description Utility Line Extension (Water) Utility Line Extension (Wastewater) Other Estimated Costs (Savings): Annual Maintenance Minor Repairs Utility Service Revenues Utility Buy-In Fees

190

Request Purpose

Estimated Expenses FY 26-27 FY 27-28 FY 28-29 500,000 500,000 -

(300,000)

2,500 750 (34,000) -

Enhance service levels

FY 29-30 -

2,500 1,000 (34,000) -

FY 30-31 -

Total 500,000 500,000

2,500 1,000 (34,000) Net Impact

7,500 2,750 (102,000) (300,000) 608,250

Town of Chino Valley Budget FY 2026-27

Personnel Schedules

Personnel Schedules Overview This section provides an overview of the Town’s personnel resources, including staffing changes, authorized staffing levels, and salary schedules. Position reclassifications and authorized positions frozen for FY 2026-27 are highlighted first, followed by several schedules and tables, including: •

Personnel Schedule and Ranges: A comprehensive personnel schedule showing authorized position counts and salary ranges by department and position for Fiscal Years 2024-25, 2025-26, and 2026-27, providing a comparison of staffing levels and salary ranges across three budget years.

•

General Employee Salary Schedule: A table listing positions by pay grade, including both active and inactive positions. Inactive positions are retained to illustrate potential career advancement opportunities within the Town.

•

Parks and Recreation Crew at Territorial Days

Police Employee Salary Schedule: A dedicated salary schedule presenting sworn Police Department positions and their corresponding salary ranges.

Together, these schedules provide information on the Town’s authorized staffing levels, position classifications, and salary structure for FY 2026-27.

The 7th Annual Hawaiian Luau hosted by the Chino Valley Police Foundation

Town of Chino Valley Budget FY 2026-27

191

Personnel Schedules

Staffing Changes In FY 2026-27, the Town is not adding any additional staff. Instead, the focus is on evaluating existing positions and reclassifying positions where appropriate to better align with departmental needs and responsibilities. The table below summarizes the position reclassifications included in the FY 2026-27 budget. These changes do not increase the Town’s total authorized FTEs.

Position Changes Change in FTEs

Department

Position

Development Services

Code Enforcement Officer

Reclassified to Code Enforcement Officer, Senior

-1.00

Development Services

Code Enforcement Officer, Senior

To provide field-level supervision and day-to-day coordination in response to increased code enforcement workload and case complexity

+1.00

Police

Police Services Specialist

Reclassified to Police Services Specialist, Senior

-1.00

Police

Police Services Specialist, Senior

To provide dedicated oversight of records management, quality control, and compliance with accreditation and other regulatory requirements

+1.00

Police

Police Officer

Reclassified to Police Sergeant

-1.00

Police

Police Sergeant

To strengthen first-line supervision, reduce span of control, and provide more consistent supervisory coverage across patrol and investigations

+1.00

Net Change in FTEs

192

Reasoning

0.00

Town of Chino Valley Budget FY 2026-27

Personnel Schedules

In addition, two vacant authorized positions are frozen for FY 2026-27. These positions remain part of the Town’s authorized staffing structure; however, funding is not included for the positions in the FY 2026-27 budget.

Frozen Positions Department

Position

Reasoning

Frozen FTEs

Development Services

Plans Examiner

Plan review services can be outsourced as needed based on development activity, allowing the Town to meet service demands while deferring the cost of filling a full-time position.

1.00

Public Works - Streets

Streets Maintenance Worker

Current staffing levels allow the division to maintain operations while deferring the position, reducing personnel costs while retaining the position for future staffing needs.

1.00

Total Frozen FTEs

2.00

These personnel changes align existing staffing resources with current operational needs while managing personnel costs and retaining flexibility to address future staffing needs.

2026 National Night Out Event Town of Chino Valley Budget FY 2026-27

193

Personnel Schedules

5-Year Capital Improvement Plan

Personnel Schedule and Ranges FY 2024-25 Budget

FY 2025-26 Budget

FY 2026-27 Budget

Mayor and Council Mayor Vice Mayor Council Members

1.00 1.00 5.00

Total

7.00

Community Services Community Services Director Library Manager Librarian, Youth Services Librarian, Technical Services Recreation/Events Coordinator, Senior Recreation/Events Coordinator Cook Library Assistant Assistant Cook Administrative Aide Kitchen Assistant Seasonal Aquatics Staff

1.00 1.00 1.00 1.00 1.00 1.00 3.75 1.00 0.50 0.75 4.50

1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.50 1.00 0.50 0.75 4.50

Total

16.50

16.25

Development Services Development Services Director Assistant Development Services Director Chief Building Official Planner, Senior GIS Specialist Building Inspector, Senior Code Enforcement Officer, Senior Plans Examiner Code Enforcement Officer Processing Coordinator, Senior Permit Technician, Senior

1.00 1.00 1.00 1.00 1.00 1.00 2.00 1.00 1.00

1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 1.00 1.00

1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

Total

10.00

11.00

Finance Finance Director Finance Manager Accountant Accounting Technician, Senior Total

1.00 1.00 1.00 1.00 4.00

Department/Position

194

Pay Grade

Range Minimum

Range Maximum

Elected Officials Elected Officials Elected Officials

36 26 21 21 20 17 14 14 11 11 10 10

101,337.60 62,212.80 48,734.40 48,734.40 46,404.80 40,102.40 34,652.80 34,652.80 32,073.60 32,073.60 31,512.00 31,512.00

141,980.80 87,172.80 68,286.40 68,286.40 65,041.60 56,201.60 48,547.20 48,547.20 41,953.60 41,953.60 39,852.80 39,852.80

41 36 31 30 27 25 25 24 23 23 23

129,292.80 101,337.60 79,393.60 75,587.20 65,312.00 59,238.40 59,238.40 56,409.60 53,726.40 53,726.40 53,726.40

181,209.60 141,980.80 111,259.20 105,955.20 91,520.00 83,033.60 83,033.60 79,060.80 75,296.00 75,296.00 75,296.00

41 32 25 20

129,292.80 83,366.40 59,238.40 46,404.80

181,209.60 116,812.80 83,033.60 65,041.60

Town of Chino Valley Budget FY 2026-27

Personnel Schedules

Personnel Schedule and Ranges FY 2024-25 Budget

FY 2025-26 Budget

FY 2026-27 Budget

Human Resources Human Resources Director Human Resources Analyst, Senior Paralegal

1.00 1.00 1.00

Total

3.00

Information Technology Services Information Technology Manager IT Support Technician

1.00 2.00

Total

3.00

Municipal Court Magistrate Court Administrator Court Security Officer Court Clerk

1.00 1.00 0.50 2.50

Total

5.00

Police Chief of Police Police Lieutenant Police Sergeant Police Officer Police Civilian Operations Supervisor Police Services Specialist, Senior Police Services Specialist Property & Evidence/Crime Scene Tech. Animal Control Officer Adoption Specialist/Shelter Tech., Senior Adoption Specialist/Shelter Technician

1.00 2.00 5.00 26.00 1.00 4.50 1.00 2.00 1.00 1.00

1.00 2.00 5.00 27.00 1.00 4.50 1.00 2.00 1.00 1.00

1.00 2.00 6.00 26.00 1.00 1.00 3.50 1.00 2.00 1.00 1.00

Total

44.50

45.50

Public Works Public Works Director/Town Engineer Public Works Director Town Engineer/Assistant Public Works Director Assistant Town Engineer Capital Project Manager Facilities and Parks Manager Fleet Manager PW Management Analyst Public Works Inspector Fleet Mechanic, Senior Facilities/Pool Maint. Worker, Senior Fleet Mechanic

1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00

1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

Department/Position

Town of Chino Valley Budget FY 2026-27

Pay Grade

Range Minimum

Range Maximum

38 28 23

111,675.20 68,577.60 53,726.40

156,520.00 96,116.80 75,296.00

32 23

83,366.40 53,726.40

116,812.80 75,296.00

28 18 18

Contract Based 68,577.60 96,116.80 42,099.20 59,009.60 42,099.20 59,009.60

PD18 PD14 PD10 PD4 27 22 20 20 19 16 13

131,788.80 103,251.20 84,968.00 66,560.00 65,312.00 51,168.00 46,404.80 46,404.80 44,200.00 38,188.80 32,988.80

184,600.00 144,643.20 118,996.80 93,246.40 91,520.00 71,739.20 65,041.60 65,041.60 61,963.20 53,518.40 46,217.60

41 40 38 35 33 29 27 27 24 23 22 21

129,292.80 123,136.00 111,675.20 96,491.20 87,526.40 72,009.60 65,312.00 65,312.00 56,409.60 53,726.40 51,168.00 48,734.40

181,209.60 172,598.40 156,520.00 135,220.80 122,657.60 100,900.80 91,520.00 91,520.00 79,060.80 75,296.00 71,739.20 68,286.40

195

Personnel Schedules

5-Year Capital Improvement Plan

Personnel Schedule and Ranges Department/Position

FY 2024-25 Budget

FY 2025-26 Budget

FY 2026-27 Budget

Pay Grade

Range Minimum

Range Maximum

Administrative Technician, Senior Parks Maintenance Worker, Senior Facilities Maintenance Worker, Senior Parks Maintenance Worker Facilities Maintenance Worker Administrative Technician Custodian Total

2.00 1.00 4.00 1.00 Engineer 1.00 2.00 21.00

2.00 2.00 1.00 4.00 1.00 2.00 21.00

20 20 20 17 17 17 13

46,404.80 46,404.80 46,404.80 40,102.40 40,102.40 40,102.40 32,988.80

65,041.60 65,041.60 65,041.60 56,201.60 56,201.60 56,201.60 46,217.60

1.00 1.00 2.00 3.00 2.00 9.00

29 25 20 18 17

72,009.60 59,238.40 46,404.80 42,099.20 40,102.40

100,900.80 83,033.60 65,041.60 59,009.60 56,201.60

Public Works - Utilities Utilities Manager Utilities Operator WWTP Operator Utilities Maintenance Mechanic Utilities Maintenance Tech., Senior

1.00 1.00 1.00 2.00

32 27 27 24

83,366.40 65,312.00 65,312.00 56,409.60

116,812.80 91,520.00 91,520.00 79,060.80

Utilities Maintenance Technician

1.00

51,168.00

71,739.20

1.00

44,200.00

61,963.20

Total

7.00

Town Clerk Town Clerk Deputy Town Clerk/Records Technician Records Technician, Senior Administrative Technician

1.00 1.00 1.00 1.00

34 22 20 17

91,915.20 51,168.00 46,404.80 40,102.40

128,793.60 71,739.20 65,041.60 56,201.60

Total

4.00

Town Manager Town Manager Economic Dev./ Intergov. Manager Assistant to the Town Manager Executive Analyst Executive Assistant Administrative Technician, Senior Total

1.00 1.00 1.00 1.00 4.00

45 32 32 32 20 20

157,164.80 83,366.40 83,366.40 83,366.40 46,404.80 46,404.80

220,272.00 116,812.80 116,812.80 116,812.80 65,041.60 65,041.60

138.00

139.75

Public Works - HURF Streets Manager Streets Foreman Streets Maintenance Worker, Senior Streets Maintenance Worker Streets Maintenance Worker (Non-CDL) Total

Grand Total

196

Town of Chino Valley Budget FY 2026-27

Personnel Schedules

General Employee Salary Schedule Pay Grade

Range Minimum

Range Midpoint

Range Maximum

Position

31,512.00

35,692.80

39,852.80

Kitchen Assistant Seasonal Aquatics Staff

32,073.60

37,024.00

41,953.60

Administrative Aide Assistant Cook

32,073.60

38,043.20

44,012.80

32,988.80

39,603.20

46,217.60

Adoption Specialist/Shelter Technician Custodian

34,652.80

41,600.00

48,547.20

Cook Library Assistant

36,358.40

43,659.20

50,960.00

38,188.80

45,864.00

53,518.40

Adoption Specialist/Shelter Tech., Senior

40,102.40

48,152.00

56,201.60

Administrative Technician Facilities Maintenance Worker Parks Maintenance Worker Recreation/Events Coordinator Seasonal Parks Maintenance Worker Streets Maintenance Worker (Non-CDL)

42,099.20

50,564.80

59,009.60

Accounting Technician Court Clerk Court Security Officer Records Technician Streets Maintenance Worker

44,200.00

53,081.60

61,963.20

Animal Control Officer Utilities Maintenance Technician

46,404.80

55,723.20

65,041.60

Accounting Technician, Senior Administrative Technician, Senior Court Clerk, Senior Executive Assistant - Town Manager's Office Facilities Maintenance Worker, Senior Parks Maintenance Worker, Senior Permit Technician Planning Technician Police Services Specialist Processing Coordinator Property & Evidence/Crime Scene Tech. Records Technician, Senior Recreation/Events Coordinator, Senior Streets Maintenance Worker, Senior

Town of Chino Valley Budget FY 2026-27

197

Personnel Schedules

5-Year Capital Improvement Plan

General Employee Salary Schedule Pay Grade 21

Range Minimum 48,734.40

Range Midpoint 58,510.40

Range Maximum 68,286.40

Position Fleet Mechanic Librarian, Technical Services Librarian, Youth Services

51,168.00

61,464.00

71,739.20

Deputy Town Clerk/Records Technician Facilities/Pool Maintenance Worker, Senior Police Services Specialist, Senior Utilities Maintenance Technician, Senior

53,726.40

64,521.60

75,296.00

Assistant Planner Building Inspector Code Enforcement Officer Fleet Mechanic, Senior IT Support Technician Paralegal Permit Technician, Senior Processing Coordinator, Senior

56,409.60

67,745.60

79,060.80

Plans Examiner Public Works Inspector Utilities Maintenance Mechanic

59,238.40

71,136.00

83,033.60

Accountant Building Inspector, Senior Code Enforcement Officer, Senior Mechanic Foreman Streets Foreman

62,212.80

74,692.80

87,172.80

Human Resources Analyst IT Support Technician, Senior Library Manager Planner, Associate

65,312.00

78,416.00

91,520.00

Fleet Manager GIS Specialist Police Civilian Operations Supervisor PW Management Analyst Utilities Maintenance Mechanic, Senior Utilities Operator WWTP Operator

68,577.60

82,347.20

96,116.80

Accountant, Senior Court Administrator Human Resources Analyst, Senior

72,009.60

86,465.60

100,900.80

Facilities and Parks Manager Streets Manager

198

Town of Chino Valley Budget FY 2026-27

Personnel Schedules

General Employee Salary Schedule Pay Grade

Range Minimum

Range Midpoint

Range Maximum

Position

75,587.20

90,771.20

105,955.20

Planner, Senior

79,393.60

95,326.40

111,259.20

Chief Building Official Streets Superintendent

83,366.40

100,089.60

116,812.80

Executive Analyst - Town Manager's Office Economic Dev./ Intergov. Manager Finance Manager Information Technology Manager Project Engineer Utilities Manager

87,526.40

105,102.40

122,657.60

Capital Project Manager

91,915.20

110,364.80

128,793.60

Town Clerk

96,491.20

115,856.00

135,220.80

Assistant Town Engineer Library Director and Special Projects Manager

101,337.60

121,659.20

141,980.80

Assistant Development Services Director Community Services Director Public Affairs Director

106,371.20

127,732.80

149,094.40

111,675.20

134,097.60

156,520.00

117,291.20

140,836.80

164,361.60

123,136.00

147,867.20

172,598.40

Public Works Director

129,292.80

155,251.20

181,209.60

Development Services Director Finance Director

135,761.60

163,030.40

190,278.40

142,542.40

171,163.20

199,784.00

149,676.80

179,732.80

209,788.80

157,164.80

188,718.40

220,272.00

Town of Chino Valley Budget FY 2026-27

Town Engineer/Assistant Public Works Director Human Resources Director

Assistant Town Manager

Town Manager

199

Personnel Schedules

5-Year Capital Improvement Plan

Police Employee Salary Schedule Position

200

Pay Grade

Range Minimum

Range Midpoint

Range Maximum

Position

Police Officer Recruit

PD1

66,560.00

Police Officer Recruit

Police Officer

PD4

66,560.00

79,913.60

93,246.40

Police Officer

Sergeant

PD10

84,968.00

101,982.40

118,996.80

Sergeant

Lieutenant

PD14

103,251.20

123,947.20

144,643.20

Lieutenant

Deputy Chief of Police

PD16

113,588.80

136,344.00

159,099.20

Deputy Chief of Police

Chief of Police

PD18

131,788.80

158,204.80

184,600.00

Chief of Police

Town of Chino Valley Budget FY 2026-27

Glossary

Glossary Accrual Basis – An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of cash flow, providing a complete view of financial activities. Actuals – Revenues or expenditures that have been realized during a specific period, as opposed to budgeted or projected amounts. Adoption – A formal action taken by Council that sets the spending limits for the fiscal year. Appropriation – A legal authorization granted by Council to make expenditures and incur obligations for specific purposes. An appropriation is usually limited in amount and duration as to when it may be expended. Appropriated Budget – The expenditure authority created by an appropriation resolution or ordinance, including estimated revenues, reserves, transfers, and other authorized adjustments. Asset – Resources owned or held by a government, which have monetary value. Audit – An independent examination of financial records to ensure accuracy, compliance, and transparency in reporting. Balanced Budget – Each fund in the budget must be in balance; total anticipated revenues plus beginning undesignated fund balance (all resources) must equal total expenditure appropriations for the upcoming fiscal year. Bonds – A financial instrument through which the Town commits to repay borrowed funds with interest by specified maturity dates. Common types include general obligation and revenue bonds, often used for large projects like buildings, streets, and water systems. Bonds typically have longer terms and greater formality than notes. Budget – A plan of financial operation representing an estimate of proposed expenditures and the proposed means of financing them for a given period. This official public document reflects decisions, measures service needs, establishes the allocation of resources and is the pecuniary plan for achieving the Town’s goals and objectives. Budgetary Basis – The accounting method used for budget purposes, typically aligned with GAAP, though with certain exclusions like depreciation for Enterprise Funds and encumbrances counted as expenditures. Budget Calendar – The schedule of key dates or events which the Town follows in the preparation, adoption, and administration of the budget. Budgetary Control – The control or management of a governmental unit or enterprise in accordance with an approved budget for the purpose of keeping expenditures within the limitations of authorized appropriations and available revenues.

Town of Chino Valley Budget FY 2026-27

201

Glossary

Budget Message – A written general dialogue of the budget, presented by the budget-making authority. It provides Council and the public with a general summary of the most important budget issues, changes from recent fiscal years and recommendations regarding the financial policy for the coming fiscal year. Capital – Tangible assets having a long life (generally over one year) obtained or controlled as a result of past transactions, events or circumstances. Capital assets include buildings, equipment, improvements other than buildings, and land that are greater than $50,000. Capital Projects Fund – Fund type used to account for financial resources that are restricted, committed or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. Capital Improvement Plan (CIP) – This is a comprehensive plan of capital investment projects which identifies priorities as to need, method of financing, cost and revenues that will result during a five-year period. The program is a guide for identifying current and future fiscal year requirements and becomes the basis for determining the annual capital budget. Debt – An obligation resulting from borrowing money or from the purchase of goods and services. Types of governmental debt include bonds, loans, and notes. Debt Service – The long-term payment of principal and interest on borrowed funds. Debt Service Fund – Governmental fund type used to account for accumulations of resources that are restricted, committed or assigned to expenditure for principal and interest. Department – A major administrative division of the Town, which indicates overall management responsibility for an operation or a group of related operations within a functional area. Depreciation – Consumption of the service life of capital assets, due to normal wear, deterioration, environmental elements, passage of time, and obsolescence. The portion of the cost of a capital asset charged as an expense during a specified period based on service life of the asset and ultimately expending the entire cost of the asset. Division – A group of homogeneous cost centers within a department with specific responsibilities and functions, i.e., Aquatics division within Community Services department is responsible for the operation of the swimming pool and all pool-related activities. Enterprise Funds – A government accounting fund in which the services provided are financed and operated similarly to those of a private business. The governing body’s intention is to finance or recover operational costs through user fees. Expenditures – Decreases in net financial resources in accordance with budgeted appropriations.

202

Town of Chino Valley Budget FY 2026-27

Glossary

Expenditure Limitation – An amendment to the Arizona State Constitution, which limits annual expenditures for all municipalities. The Economic Estimates Commission sets this limit based upon population growth and inflation. All municipalities have the option of Home Rule that requires voters to approve a four-year expenditure limit based on revenues received. Expenses – Decreases in net financial resources in accordance with budgeted appropriations, terminology used only in the enterprise funds. Fiscal Year – A time period designated by the Town signifying the beginning and ending period for recording financial transactions. The Town fiscal period begins July 1 and ends June 30. Franchise Fee – A fee paid by public service businesses for the special privilege to use Town streets, alleys and property in providing their services to the citizens of the community. Services requiring franchise fees include electricity, telephone, natural or propane gas, and cable television. Full-Time Equivalent (FTE) – A part-time position converted to the decimal equivalent of a full-time position based on 2,080 hours per year, or a full value of one for a full-time position. Fund – An accounting entity having a set of self-balancing accounts and records all financial transactions for specific activities or government functions in attaining certain objectives governed by special regulations, restrictions or limitations. Fund Balance – Fund balance is the excess of assets over liabilities of governmental and trust funds. General Fund – One of five governmental fund types, this fund typically serves as the chief operating fund of a government. The general fund is used to account for all financial resources not accounted for in some other fund. General Obligation Bonds – Bonds that finance a variety of public projects and require voter approval. The full faith and credit of the Town back these bonds. Limitations for bonding are set by State Statute. Governmental Funds – Funds generally used to account for tax-supported activities. There are five different types of governmental funds: general funds, special revenue funds, debt service funds, capital projects funds, and permanent funds. Grant – Contributions or gifts of cash or other assets from another government to be used for a specific purpose, activity or facility. Intergovernmental Revenue – Revenues from other governments in the form of grants, entitlements, shared revenues or payments in lieu of taxes. Levy – To impose taxes for the support of government activities. Town of Chino Valley Budget FY 2026-27

203

Glossary

Long-Term Debt – Debt with a maturity of more than one year after the date of issuance. Major Fund – Governmental fund or enterprise fund which revenues or expenditures, excluding other financing sources and uses, constitutes more than 10% of the revenues or expenditures of the appropriated budget. Modified Accrual Basis – A government accounting method where revenues are recorded when measurable and available, and expenses are recognized when incurred, excluding long-term assets and liabilities. Nonmajor Fund – Governmental fund or enterprise fund that does not meet major fund criteria. One-Time Operating Expenditure – Operating expenditures infrequent in occurrence and not expected to occur again within the next five years. Operating Budget – Plan of current expenditures and the prepared means to finance them. The budget associated with providing ongoing services to citizens. It includes general expenditures such as personal services, contractual services, operating supplies and operating capital items. The budget is the primary measure of controlling financing, acquisition, spending and delivering of services of the entity. Performance Measures – Measurable means of evaluating the effectiveness of a cost center in accomplishing its defined objectives. Permanent Fund – A government fund where the principal amount is kept intact and only the investment earnings are used to support public programs. Personnel Services – Costs related to compensating employees, including wages, insurance, payroll taxes, retirement contributions, and other benefits. Program – A group of related activities performed by one or more organizational units for the purpose of accomplishing a function for which the government is responsible. Projected Revenue – The amount of estimated revenue to be collected during the fiscal year. Proprietary Fund – A type of government fund used for activities that operate like a business, where services are paid for by user fees (e.g., water or sewer services). Reserve/Contingency – A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted. Resolution – A special or temporary order of a legislative body requiring less legal formality than an ordinance or statute.

204

Town of Chino Valley Budget FY 2026-27

Glossary

Resources – Total amounts available for appropriation including estimated revenues, fund transfers, and beginning balances. Revenue – Receipts from taxes, intergovernmental sources and user fees, or resources from voter authorized bonds, system development fees, and grants. Revenue Bonds – Legal debt instruments that finance public projects for such services as water or wastewater. They can also be issued for major public facilities supported by taxes. Revenue from these public projects is pledged to pay principal and interest of the bonds. Revenue Neutral – A policy or action that does not result in an increase or decrease in total revenues. Short-Term Debt – Debt with a maturity of one year or less after the date of issuance. Sources of Revenue – Revenues are classified according to their source or point of origin. Special Revenue Fund – Governmental fund type used to account for the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects and exclusive of resources held in trust for individuals, private organizations or other governments. State-Shared Revenue – Includes the Town’s portion of the State sales tax revenues, state income tax receipts, and Vehicle In-Lieu taxes. Taxes – Compulsory charges levied by a government for the purpose of financing services performed for the common benefit of the people. Transfers In/Out – Authorized transfers of funds from one budget area to another, ensuring resources are available for planned expenditures. Unreserved Fund Balance – Undesignated monies available for appropriations. User Charges – The payment of a fee for direct receipt of a public service by the party who benefits from the service. Zero-Based Budgeting – A budgeting method where all expenses must be justified and approved for each new period, starting from a "zero base."

Town of Chino Valley Budget FY 2026-27

205

Acronyms

Acronyms Term

Stands for

Term

Stands for

ACFR

Annual Comprehensive Financial Report

HURF

Highway User Revenue Fund

ADEQ

Arizona Department of Environmental Quality

ISP

Internet Service Provider

ADWR

Arizona Department of Water Resources

Information Technology

ACJIS

Arizona Criminal Justice Information System

ITS

Information Technology Services

ARS

Arizona Revised Statutes

MID

Maintenance Improvement District

ASRS

Arizona State Retirement System

PAFR

Popular Annual Financial Report

CDBG

Community Development Block Grant

PFAS

Per- and Polyfluoroalkyl Substances

CIP

Capital Improvement Plan

PSPRS

Public Safety Personnel Retirement System

CIPCAC

Capital Improvement Plan Citizen's Advisory Committee

RICO

Racketeer Influenced and Corrupt Organizations Act

COLA

Cost-of-Living Adjustment

RUCC

Regional Utility Coordinating Committee

CVPD

Chino Valley Police Department

SLFRF

State and Local Fiscal Recovery Funds

CVSLID

Chino Valley Street Lighting Improvement District

SCADA

Supervisory Control and Data Acquisition

FTE

Full-Time Equivalent

TAP

Transportation Alternatives Program

FWM

Full-Width Milling

TPL

Trust for Public Land

Fiscal Year

TPT

Transaction Privilege Tax

GAAP

Generally Accepted Accounting Principles

UDO

Unified Development Ordinance

GFOA

Government Finance Officers Association of the United States and Canada

WRF

Water Reclamation Facility

GIS

Geographic Information System

WWTP

Wastewater Treatment Plant

GOHS

Governor's Office of Highway Safety

WIFA

Water Infrastructure Finance Authority

HVAC

Heating, Ventilation, and Air Conditioning

YPLAN

Yavapai Plan Regional Planning Organization

IBC

International Building Code

206

Town of Chino Valley Budget FY 2026-27

Budget in Brief FY 2026-27

FY 2026-27 BUDGET IN BRIEF

REVENUES: $47,751,994 The Town receives money from various sources, such as transaction privilege tax, intergovernmental revenues from the State of Arizona and Yavapai County, utility fees and charges, grant revenues, other financing sources (bonds and loans), and transfers. FY 2026-27 revenues and other financing sources increase by approximately $2.7 million, or 6.0%, compared with the FY 2025-26 budget. The increase is primarily driven by higher other financing sources and grant revenues, partially offset by decreases in intergovernmental revenues, utility fees and charges, and miscellaneous revenues. The FY 2026-27 budget includes a planned use of approximately $3.3 million in fund balance reserves, primarily to support capital investments and other one-time expenditures.

Taxes Intergovernmental Grants Utility Fees and Charges Miscellaneous Licenses and Permits Other Financing Transfers In $0

FY 2025-26 Budget Revenue Source Taxes Intergovernmental Grants Utility Fees and Charges Miscellaneous Licenses and Permits Other Financing Transfers In Total

$10

$12

FY 2026-27 Budget

FY 2025-26 Budget $11,348,841 8,251,681 4,100,000 3,488,235 2,907,789 266,350 12,000,000 2,693,732 $45,056,628

$14 $16 Millions

FY 2026-27 Budget $11,578,992 7,822,310 4,844,280 3,054,536 2,458,407 279,667 15,000,000 2,713,802 $47,751,994

The full budget for the Town can be viewed online at www.chinoaz.net/198/Financial-Reports or you can contact the Finance Department at (928) 636-2646.

Town of Chino Valley Budget FY 2026-27

207

Budget in Brief FY 2026-27

FY 2026-27 BUDGET IN BRIEF

EXPENDITURES: $51,059,144 The Town manages several funds to provide essential services to residents, including public safety, parks and recreation, library services, streets, planning and zoning, and general administrative support. Additional funds are allocated for capital projects, debt service, and transfers. FY 2026-27 expenditures and other financing uses increase by approximately $1.6 million, or 3.3%, compared with the FY 2025-26 budget. The increase is primarily driven by higher capital expenditures and debt service, partially offset by decreases in one-time operating and other expenditures.

Personnel Services Operating Expenditures One-Time Operating Capital Outlay Debt Service Other Expenditures Transfers Out $0

$10

$12

$14

$16

$18

$20

$22

$24

Millions

FY 2025-26 Budget Expenditure Category Personnel Services Operating Expenditures One-Time Operating Capital Outlay Debt Service Other Expenditures Transfers Out Total

FY 2026-27 Budget

FY 2025-26 Budget $13,662,031 5,928,023 2,661,298 21,188,441 2,213,396 1,063,000 2,693,732 $49,409,921

FY 2026-27 Budget $13,999,435 5,923,536 2,245,355 22,511,122 2,628,894 1,037,000 2,713,802 $51,059,144

Major Capital Projects for FY 2026-27 Peavine South Connection Fill Station Improvements Water Reclamation Facility Improvements

208

Community Center Park Improvements – Phase 1A and 1B Street Improvements – Chip Seal – Various Streets Bright Star PFAS Remediation

Town of Chino Valley Budget FY 2026-27