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Expenditure Limitation/Home Rule Option

Expenditure Limitation/Home Rule Option. Special Elections. Expenditure Limit. All cities and towns in Arizona are subject to some type of expenditure limitation. 79 cities and towns have adopted Alternative Expenditure Limitations 55 - Home Rule Option 24 - Permanent Base Adjustment

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Expenditure Limitation/Home Rule Option

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  1. Expenditure Limitation/Home Rule Option Special Elections

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

  3. Why Expenditure Limitation • 1970s property taxes were increasing at a greater rate than were personal incomes. • 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 • Home Rule is based on FY 1979-1980 expenditures revised annually • Population changes • Inflation

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

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

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

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

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

  9. Steps to Election Chronological Order No date included always refer to League Materials • 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 • Hold two public hearings • Council Adjourn to Special Meeting to Adopt • 2/3 vote of Council required

  10. Steps Continued • Publish record of vote A.R.S § 41-563.01 • Amount of Expenditure Limit • Purpose for the Excess • Publish notice that you are accepting arguments • Include amount charged • 200 words • Submit to Auditor General • Summary and detailed analysis • Latest is 60 days prior to election –the earlier the better • Call of Election • 100 days prior to election • Not required but notices the public • Publish in newspaper 2 consecutive weeks (weekly) 4 times (daily)

  11. Steps Continued • Receive review from Auditor General • 15 days after submitted • Receive arguments for and against • Not less than 90 days A.R.S. § 19-141 (B) • 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 • Prepare publicity pamphlet • Send publicity pamphlet to AG for review • Send public pamphlet to printing company

  12. Voting Methods • Make early ballots available • 33 days before election • Cannot distribute more than 27 days before election • 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 • Election • Canvas Votes • Inform Auditor General’s Office and Economic Estimates Commission A.R.S. § 41-563-.03(F).

  13. State Imposed Expenditure Limit

  14. The Math

  15. Exclusions • Interest Revenue • Grant Revenue • Highway User Revenue • Highway User Fund Tax • HURF 1979/80 expenditure debt serve • Debt Service

  16. Life Lessons Learned • Home Rule/Expenditure Limitation is special • Do not assume anyone understands the rules for why Home Rule exists or what it is • Education session are a great way to communicate with citizens • 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)

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

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

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