Surprise property taxes decreasing

• Surprise passed its budget for the fiscal year beginning on July 1
• The budget includes a slight property tax decrease
• Other highlights include raises for most employees, park improvements and upgrades at Surprise Stadium

The Surprise City Council unanimously passed a $310.9 million budget Tuesday that will lower property tax rates for residents, give most of its employees raises and build new recreation facilities.

Mayor Sharon Wolcott praised the budget as a major milestone for a city that struggled with a $16 million budget deficit just two years ago.

"We've really turned a corner and come a long way," she said.

The city nearly depleted its $13 million reserve fund and laid off employees to cope with the previous deficit. The new budget has a $29 million surplus.

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Property taxes brought in $6.5 million last year and are projected to generate the same amount this year, due to Maricopa County-assessed values rising, according to city staff.

The current primary property tax rate is 77.8 cents per $100 of the assessed value of a home. The new rate will be 75.9 cents per $100, a 2.4 percent decrease.

For a home valued at $175,000 — the median price in 2013 according to real estate tracking firm Information Market — a homeowner would have had to pay $1,361.50 in city property taxes last year, but will pay $33.25 less after the new budget goes into effect if his or her assessed property value doesn't increase.

The new rate would save money for property owners whose assessed home values stay flat or do not increase by more than 2.4 percent.

The budget includes cost of living increases for most city employees and raises for public safety employees based on their years of service. The total cost of the pay increases is about $6 million, according to the budget documents.

Other budget highlights include the council more than doubling its reserve and funding civic improvements such as building the city's first skate park and a Boys & Girls Club.

The city is also using its recently improved credit rating to finance a $15 million expansion of the public facilities and improvements to the Kansas City Royals and Texas Rangers clubhouses at Surprise Stadium.

The new fiscal year begins on July 1.