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 §
Home Rule is based on FY expenditures revised annually
Population changes
Inflation

4. Home Rule Approvals Approvals Required Once Approved
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

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. No date included always refer to League Materials
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 §
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. § (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. §
Prepare publicity pamphlet
Send publicity pamphlet to AG for review
Send public pamphlet to printing company

12. Voting Methods Make early ballots available Mail publicity pamphlets
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. § (A)
Distribute early ballots
Election
Canvas Votes
Inform Auditor General’s Office and Economic Estimates Commission A.R.S. § (F).

13. State Imposed Expenditure Limit
Fiscal Year
Prior Fiscal Year Population /
1978 Population =
Population Factor
27,700
3,175
8.7244
Base Limit x
Inflation Factor
Projected State-Imposed Expenditure Limitation +
Estimated Exclusions
Total Expenditures Under State-Imposed Limit
$714,110
2.9594
$18,437,598
$2,999,606
$21,437,204

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

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. Florence Deputy Town Manager/Town Clerk
Questions?
Lisa Garcia
Florence Deputy Town Manager/Town Clerk
Florence, AZ 85132
(520)