Expenditure Limitation Home Rule Option Special Elections Expenditure

Expenditure Limitation/Home Rule Option Special Elections

Expenditure Limit q All cities and towns in Arizona are subject to some type of expenditure limitation. q 79 cities and towns have adopted Alternative Expenditure Limitations § § 55 - Home Rule Option 24 - Permanent Base Adjustment q Four year election cycle § 30 in 2016 § 24 in 2018 § 1 in 2019 – City of Phoenix

Why Expenditure Limitation q 1970 s property taxes were increasing at a greater rate than were personal incomes. q In order to keep balance and ensure that local government did not raise property tax wildly they adopted rules known as Expenditure Limitation. § Section 20 and 21 added to Article IX of the Arizona Constitution § A. R. S § 41 -1279. 07 q Home Rule is based on FY 1979 -1980 expenditures revised annually § Population changes § Inflation

Home Rule Approvals q Approvals Required § City or Town Council § Auditor General (analysis of proposal) § Voters – Must be a candidate election q Once Approved § Begins the following fiscal year § Effective for four fiscal years

Florence Example - If Not Approved q 2014 Election failed q 2015 Special Election (3 rd Tuesday in May) Onetime Override. q 2016 Primary Election – Home Rule Option § 2 year waiting period before re- proposal

Follow the Dots q League’s Guide for Alternative Expenditure Limitation § § Election calendars Reports on requirements Sample reporting forms Requirements for adoption q League’s Municipal Budget and Financial Manual q Auditor General’s Webinars § https: //www. azauditor. gov/reports-publications/cities-andtowns/webinars

Team Effort q Clerk: noticing public hearing, agenda, election documents, IGA with county, publicity pamphlet, etc. q Finance Director: all financial documents, Auditor General Liaison, etc. q Public Information Officer: Educational Materials q Attorney: legal review q Manager: approval authority and the face of education session.

Partners q County (IGA for election services and Voter Registration) q State (Auditor General review required) q Printer (county does not print town publicity pamphlet) q Translation (Spanish translation required)

Steps to Election Chronological Order No date included always refer to League Materials 1. 2. 3. 4. Receive state imposed expenditure limitation IGA with County Agreement with printing company Publish Notice of Public Hearings § A. R. S § 39 -204 § Once a week for two consecutive weeks prior to public hearing 5. Hold two public hearings 6. Council Adjourn to Special Meeting to Adopt § 2/3 vote of Council required

Steps Continued 7. Publish record of vote A. R. S § 41 -563. 01 § Amount of Expenditure Limit § Purpose for the Excess 8. Publish notice that you are accepting arguments § Include amount charged § 200 words 9. Submit to Auditor General 7. Summary and detailed analysis 8. Latest is 60 days prior to election –the earlier the better 10. Call of Election 7. 100 days prior to election 8. Not required but notices the public 9. Publish in newspaper 2 consecutive weeks (weekly) 4 times (daily)

Steps Continued 11. Receive review from Auditor General § 15 days after submitted 12. Receive arguments for and against § Not less than 90 days A. R. S. § 19 -141 (B) 13. Education session with public § City or Town is not allowed to expend any funds to influence the outcome of the election. A. R. S. § 9 -500. 14 14. Prepare publicity pamphlet 15. Send publicity pamphlet to AG for review 16. Send public pamphlet to printing company

Voting Methods 17. Make early ballots available § § 33 days before election Cannot distribute more than 27 days before election 18. Mail publicity pamphlets § § Prior to early ballots being disturbed, but not less than 10 days prior to election A. R. S. § 19 -141 (A) Distribute early ballots 19. Election 20. Canvas Votes 21. Inform Auditor General’s Office and Economic Estimates Commission A. R. S. § 41 -563 -. 03(F).

State Imposed Expenditure Limit Fiscal Year 20172018 Prior Fiscal Year Population / 27, 700 1979 -80 Base Limit / x 1978 Population = Population Factor 3, 175 = 8. 7244 Population Factor $714, 110 x 8. 7244 Inflation Factor x x 2. 9594 Projected State= Imposed + Expenditure Limitation = Estimated Exclusions $18, 4 37, 598 + $2, 999, 606 Total Expenditures Under State. Imposed Limit = = $21, 437, 204

The Math Purpose 2017 -18 Public Safety 433, 948 Parks and Recreation Source $9, 577, 854 2017 -18 $500, 0 Federal 00 State 00 $3, $8, 755, 0 $25, 587, 0 Library $403, 507 Local 00 Street Maintenance and Construction 552, 370 $5, Total Revenues $4, 00 Water Utility 896, 759 $34, 842, 0 $4, Sewer Utility Exclusions Sanitation $2, 999, 606 Budget 045, 852 $37, 691, 104 $823, 024 $6, General Government 108, 686 Total Expenditures 4, 842, 000 $3 $21, 437, 204 State Imposed

Exclusions q Interest Revenue q Grant Revenue q Highway User Revenue § Highway User Fund Tax § HURF 1979/80 expenditure debt serve q Debt Service

Life Lessons Learned q Home Rule/Expenditure Limitation is special q Do not assume anyone understands the rules for why Home Rule exists or what it is q Education session are a great way to communicate with citizens q If your election ever fails § § § Call the League Call Florence Don’t panic – learn about Special One-Time Election Don’t call it an “Override” Override equal tax increases to citizens (school districts)

Importance of the Clerk q Joint project among departments q Clerk in a leadership role q Get out and be part of a speakers bureau q Learn all the facts about the budget q Engage in the community q Leadership support q Helps promote the role of the Clerk!

Questions? Lisa Garcia Florence Deputy Town Manager/Town Clerk Florence, AZ 85132 Lisa. Garcia@florenceaz. gov (520) 868 -75522