WHAT IS “HOME RULE”?

State Expenditure Limitation Arizona Constitution State Expenditure Limitation (Base Limit set in 1979 - 80, adjusted annually for population & inflation)

State Expenditure Limitation Arizona Constitution State Expenditure Limitation (Base Limit set in 1979 - 80, adjusted annually for population & inflation) Alternative Expenditure Limitation (Home Rule) Permanent Base Adjustment (Auditor General Approval) One-Time Override (City Council Resolution) Requires citizens vote every four years or reverts to State Expenditure Limitation Requires citizens vote to increase State Expenditure Limitation and must be done in even years Requires citizens vote and can be done annually in May, starting in 2019

State Expenditure Limitation Arizona Constitution State Expenditure Limitation (Base Limit set in 1979 - 80, adjusted annually for population & inflation) Alternative Expenditure Limitation (Home Rule) Permanent Base Adjustment (Auditor General Approval) One-Time Override (City Council Resolution) Requires citizens vote every four years or reverts to State Expenditure Limitation Requires citizens vote to increase State Expenditure Limitation and must be done in even years Requires citizens vote and can be done annually in May, starting in 2019

State Expenditure Limitation Arizona Constitution State Expenditure Limitation (Base Limit set in 1979 - 80, adjusted annually for population & inflation) Alternative Expenditure Limitation (Home Rule) Permanent Base Adjustment (Auditor General Approval) One-Time Override (City Council Resolution) Requires citizens vote every four years or reverts to State Expenditure Limitation Requires citizens vote to increase State Expenditure Limitation and must be done in even years Requires citizens vote and can be done annually in May, starting in 2019

Publicly Available Sources City of Sedona Publicly Available Sources 2013 - 2017 Comprehensive Annual Financial Reports 2017 - 2018 Estimated Actual 2018 - 2019 Approved Budget 2019 - 2023 Estimated Amounts To Be Expended

“Effect” of the 2014 Voter Approval of Home Rule

With 2% Population Growth Since 2000 2017 Est. 10,397 2000 10,168 2014 10,281

General Fund Expenses FY 2012/13 - FY 2018/19 City of Sedona General Fund Expenses FY 2012/13 - FY 2018/19 Millions “Home Rule” +90% Audited Actual Estimated Actual Approved Budget

Personnel Expenses FY 2012/13 - FY 2018/19 City of Sedona Personnel Expenses FY 2012/13 - FY 2018/19 Millions “Home Rule” Audited Actual Estimated Actual Approved Budget +63%

Full-Time Equivalent Employees FY 2012/13 - FY 2018/19 City of Sedona Full-Time Equivalent Employees FY 2012/13 - FY 2018/19 “Home Rule” Audited Actual Estimated Actual Approved Budget +20%

Bed Tax Collected vs Chamber Received City of Sedona Bed Tax Collected vs Chamber Received FY 2012/13 - FY 2018/19 Millions “Home Rule” Audited Actual Estimated Actual Approved Budget Chamber Funded 3.0% City Bed Tax Chamber received 0% 3.5% City Bed Tax Chamber received 55%

Alternative Expenditure Limitation vs State Expenditure Limitation City of Sedona Alternative Expenditure Limitation vs State Expenditure Limitation FY 2016/17 - FY 2019/20 $(Millions) Fiscal Year 2016-17 Actual 2017-18 Est. Actual 2018-19 Budget 2019-20 Estimate Personnel Expenses $10.7 $12.1 $13.2 $13.3 Supplies and Services 9.6 10.7 11.8 Capital & Debt Service 6.7 6.8 6.6 5.7 Capital Improvements 5.5 8.4 13.0 15.8 Internal Charges - 1.6 1.7 Contingencies 1.2 Alternative Expenditure Limitation (Home Rule) $32.5 $39.7 $47.5 $49.5 State Expenditure Limitation $27.1 $23.2 $21.9 $24.3

Alternative Expenditure Limitation City of Sedona Alternative Expenditure Limitation FY 2019/20 - FY 2022/23 Millions Home Rule Fails 08/28/18 Home Rule Passes 08/28/18

State Expenditure Limitation Arizona Constitution State Expenditure Limitation (Base Limit set in 1979 - 80, adjusted annually for population & inflation) Alternative Expenditure Limitation (Home Rule) Permanent Base Adjustment (Auditor General Approval) One-Time Override (City Council Resolution) Requires citizens vote every four years or reverts to State Expenditure Limitation Requires citizens vote to increase State Expenditure Limitation and must be done in even years Requires citizens vote and can be done in May, 2019

FY 2019-20 State-Imposed Expenditure Limitation City of Sedona FY 2019-20 State-Imposed Expenditure Limitation Current Millions 1979-80 Population Inflation Projected Estimated 2019-20 Base Limit Factor Limitation Exclusions Current $2.96 1.50 3.04 $13.50 $10.80 $24.30

FY 2019-20 State-Imposed Expenditure Limitation City of Sedona FY 2019-20 State-Imposed Expenditure Limitation Increase Millions 1979-80 Population Inflation Projected Estimated 2019-20 Base Limit Factor Limitation Exclusions Current $2.96 1.50 3.04 $13.50 $10.80 $24.30 Increase $2.58 $11.70 $ -

FY 2019-20 State-Imposed Expenditure Limitation City of Sedona FY 2019-20 State-Imposed Expenditure Limitation Revised Millions 1979-80 Population Inflation Projected Estimated 2019-20 Base Limit Factor Limitation Exclusions Current $2.96 1.50 3.04 $13.50 $10.80 $24.30 Increase $2.58 $11.70 $ - Revised $5.54 $25.20 $36.00

Alternative Expenditure Limitation City of Sedona Alternative Expenditure Limitation FY 2019/20 - FY 2022/23 Millions Home Rule Fails 08/28/18 Home Rule Passes 08/28/18 Permanent Base Adjustment Passes 11/06/18

City of Sedona Expenditure Levels Millions Home Rule Passes August 28

Elections Calendar Home Rule 08/28/18 Permanent Base Adjustment 11/06/18 One-Time Override - Year 1 05/21/19 One-Time Override - Year 2 05/19/20 Home Rule/PBA 08/25/20

Calendars Calendar Year 01/01/18 01/01/19 01/01/20 01/01/21 CY 2018 07/01/18 07/07/19 07/01/20 07/01/21 FY 2018-19 FY 2019-20 FY 2020-21

Calendars Calendar Year Fiscal Year 01/01/18 01/01/19 01/01/20 01/01/21 Calendar Year CY 2018 CY 2019 CY 2020 07/01/18 07/07/19 07/01/20 07/01/21 Fiscal Year FY 2018-19 FY 2019-20 FY 2020-21

Calendars Calendar Year Fiscal Year Election Dates 01/01/18 01/01/19 01/01/20 01/01/21 Calendar Year CY 2018 CY 2019 CY 2020 07/01/18 07/07/19 07/01/20 07/01/21 Fiscal Year FY 2018-19 FY 2019-20 FY 2020-21 08/28/18 11/06/18 05/21/19 05/19/20 08/25/20 Election Dates Home Rule Vote FY 2019-20 Permanent Base Adjust. Vote FY 2019-20 One-Time Override #1 Vote FY 2019-20 One-Time Override #2 Vote FY 2020-21 Permanent Base Adjust. Vote FY 2021-22

2018 Timetable Date Days Task 06/05 154 Proposal to Auditor General 06/26 133 Approval from Auditor General 07/09 120 Petition to City Clerk 09/07 60 Voter Pamphlet Mailed 10/08 30 Initiative Ballot Mailed 11/06 0 Election Day

Permanent Base Adjustment on 11/6/2018 VOTE NO on “HOME RULE” VOTE YES on Permanent Base Adjustment on 11/6/2018 Take BACK our City