2013 FALL GUIDE FOR ALTERNATIVE EXPENDITURE LIMITATION

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1 2013 FALL GUIDE FOR ALTERNATIVE EXPENDITURE LIMITATION This report is designed to assist those communities that wish to renew or adopt, for the first time, an alternative expenditure limitation - home rule option. The following information is included in this Guide:! Suggested election (primary and general) calendar for adopting a home rule option.! Chronology of events for alternative expenditure limitation (home rule option).! Brief reports on requirements for: 1. Home rule option (alternative limitation) 2. Auditor General=s Office review! Expenditure Limitation Calculation! Sample Language for Home Rule Option! Sample Forms and Instructions for Completion Please review the enclosed information. If you have any questions or comments, please call us at the League office at (602)

2 2013 SUGGESTED HOME RULE OPTION ELECTION CALENDAR (Fall Primary Election) March 26**! Publish first notice of public hearings April 2**! Publish second notice of public hearings April 9**! Hold first public hearing on proposed home rule option April 16**! Hold second public hearing on the proposal! Council votes on the proposal immediately after second hearing in a special meeting April 17**! Publish record of vote and, if approved, the amount of expenditures in excess of the stateimposed limitation and purposes for the excess April 29*! Submit to Auditor General=s Office required information; including summary and detailed analyses (time starts when Auditor General receives the information) May 20**! Receive reviewed detailed and summary analyses and summary analysis worksheet from Auditor General=s Office May 29*! Receive arguments for or against alternative expenditure limit for publicity pamphlet June 5**! Complete preparation of publicity pamphlet; send draft to Auditor General=s Office in sufficient time for review and comment prior to printing June 28**! Send publicity pamphlets to the printer July 25*! Make early ballots available***! Mail publicity pamphlets or let early voters know when and where they will be available August 1*! Distribute early ballots*** August 16th*! Distribute publicity pamphlets (If for some reason they were not distributed earlier, this is the deadline.) August 27! PRIMARY ELECTION DAY September 16*! Canvass Vote! Inform Auditor General=s Office and Economic Estimates Commission of the outcome of election * These calendar dates are the latest possible dates (unless otherwise indicated) to comply with election deadlines based on a Fall Primary Election date of August 27, ** These dates are suggested dates to allow you to send the publicity pamphlet out in time for early voting. If you contract with your county for elections services, we recommend that you check with them for their ballot preparation deadlines. *** Early ballots must be available no later than 33 days before the election. However, a law passed in 2009, prohibits an early ballot being distributed until 26 days before the election.

3 2013 SUGGESTED HOME RULE OPTION ELECTION CALENDAR (Fall General Election) June 6**! Publish first notice of public hearings June 13**! Publish second notice of public hearings June 20**! Hold first public hearing on proposed home rule option June 27**! Hold second public hearing on the proposal! Council votes on the proposal immediately after second hearing in a special meeting June 28**! Publish record of the vote and, if approved, the amount of expenditures in excess of the stateimposed limitation and purposes for the excess July 8**! Submit to Auditor General=s Office required information; including summary and detailed analyses (time starts when Auditor General receives the information) July 29**! Receive reviewed detailed and summary analyses and summary analysis worksheet from Auditor General=s Office August 7*! Receive arguments for or against alternative expenditure limit for publicity pamphlet August 14**! Complete preparation of publicity pamphlet; send draft to Auditor General=s Office in sufficient time for review and comment prior to printing September 6**! Send publicity pamphlets to the printer October 3*! Early ballots ready***! Mail publicity pamphlets or let early voters know when and where they will be available October 10*! Distribute early ballots*** October 25*! Distribute publicity pamphlets (If for some reason they were not distributed earlier, this is the deadline.) November 5! GENERAL ELECTION DAY November 25*! Canvass Vote! Inform Auditor General=s Office and Economic Estimates Commission of the outcome of election * These calendar dates are the latest possible dates (unless otherwise indicated) to comply with election deadlines based on a Fall General Election date of November 5, ** These dates are suggested dates to allow you send the publicity pamphlet out with the early ballots. Statutory deadlines, if any, are in parentheses. If you contract with your county for elections services, we recommend that you check with them for their ballot preparation deadlines. *** Early ballots must be available no later than 33 days before the election. However, a law passed in 2009, prohibits an early ballot being distributed until 26 days before the election

4 CITY/TOWN CHRONOLOGY OF EVENTS FOR AN ALTERNATIVE EXPENDITURE LIMITATION ELECTION This is a chronology of events to be used as a guide depending on your city or town's circumstances and election date. Action Steps Deadline Set by Law Earliest Date Call primary and general None - suggest 100 days None election, including home prior to election rule option as one of the purposes of the election 1 Call of election published None None in newspaper once a week for two consecutive weeks if in a weekly paper or four times if publishing in a daily paper 1 City/town council receives February 1 None estimated state-imposed expenditure limitation for coming fiscal year Publish notice of public Two notices must be None hearings - once a week published prior to for two consecutive weeks public hearings Hold public hearings None After publishing second notice of hearings City/town council adopts Immediately following None resolution on alternative second public hearing limitation Publish record of vote and Immediately following None other required information city/town council vote Submit detailed and summary At least 60 days prior None analyses and summary analysis to election and before worksheet to Auditor printing of publicity General's Office pamphlet City/town clerk receives Not less than 90 days None arguments supporting prior to election or opposing alternative expenditure limitation 1 A call and notice of election are no longer required by state law. We include the call in this chronology as an option. 4

5 Action Steps Deadline Set by Law Earliest Date City/town council receives 15 working days None copy of the reviewed detailed after Auditor General=s Office and summary analyses and receives copies of the summary analysis worksheet analyses and worksheet from the Auditor General=s Office Submit draft of publicity In sufficient time None pamphlet to Auditor to allow for review and General's Office for review comment prior to printing City/town council receives April 1 None actual state-imposed expenditure limitation Have early ballots ready 33 days prior to None the election (cannot be distributed more than 26 days before the election.) Distribute publicity pamphlets Not less than 10 days Mail on the day early prior to election ballots are available Hold election Election date Election date Notify Auditor General's Immediately after None Office and Economic canvass of vote Estimates Commission of the outcome of election Note: An alternative expenditure limitation election must be held at regular elections only. All the information related to these elections must comply with the Voting Rights Act; therefore, Spanish translations of election materials must be provided. 5

6 HOME RULE (ALTERNATIVE EXPENDITURE LIMITATION) OPTION Any city or town can adopt its own "alternative" expenditure limitation that is free from any ties to the state-imposed limitation if a majority of the qualified electors voting on the issue at a city/town regular election vote in favor of the alternative limitation. There are no limitations on the form of this alternative limitation. An alternative limitation may be referred to the city/town voters by an affirmative vote of two-thirds of the members of the city/town council or qualified electors of the city/town may offer an alternative limitation through the initiative process (Article IX, Section 20, subsection 9, Arizona State Constitution). State law no longer requires the adoption or publication of a call or notice of election. However, we recommend that a call be published (see recommended dates on calendars), including the home rule option proposal as one of the purposes of the election. A simple statement on the home rule proposal will satisfy this requirement, for example: A proposal to adopt a local alternative expenditure limitation - home rule option will be considered at the City/Town (Primary/General) Election on Tuesday, (month) (day), 20. (Una propuesta para adoptar una alternativa sobre el limite del gasto local - una opcion de auto reglamento sera considerada en la/el ciudad/pueblo eleccion (primaria/general) el martes, (mes) (dia), 20.) A Spanish language translation is required on all election related notices. If you decide to publish a call and/or notice of election, it should be published in accordance with A.R.S. ' which requires publication twice if in a weekly paper or four times if in a daily paper. A city/town council contemplating the adoption of an alternative expenditure limitation must hold two public hearings on the proposed action. Notice of these hearings must be published once a week for at least two consecutive weeks in a newspaper of general circulation within the city/town. Immediately following the second hearing, the city/town council must convene in a special meeting and vote on the proposed alternative expenditure limitation. (A sample resolution is included for this purpose.) A record of the vote and, if approved, the amount of expenditures in excess of the state-imposed expenditure limitation and purposes for the excess expenditures must be published in a newspaper of general circulation within the city or town (see A.R.S. ' and attached sample forms). AUDITOR GENERAL=S OFFICE REVIEW At least 60 days prior to the city/town election, and we recommend sooner to accommodate printing the publicity pamphlet prior to early voting, the council or a person or group using the initiative process proposing the alternative expenditure limitation must submit an alternative expenditure limitation proposal that includes a detailed analysis, summary analysis and summary analysis worksheet to the Auditor General=s Office for review. The resolution adopted by the Council specifying the terms of the alternative must also be submitted. The Auditor General=s Office has 15 working days in which to complete a review of the proposal. During this time period, the Auditor General=s Office may request the city/town to submit additional information or to submit revised information to correct any errors or deficiencies noted during the review. The Auditor General's review generally consists of the following: 1. A review of the financial information in the proposal to determine whether it complies with the requirements of the governing statute. 2. A determination of whether assumptions, factors or derived amounts are internally consistent. 3. A mathematical accuracy check of calculations and totals. 4. A determination of whether historical or independently determined data, such as the base limit, agrees with the authoritative source. The detailed analysis, summary analysis and summary analysis worksheet may be ed, delivered, mailed or faxed to the Auditor General=s Office using the information found below. The analyses and worksheet must be received at least sixty days prior to the election at which the local voters will be asked to approve a home rule option. 6

7 Office of the Auditor General Accounting Services Division 2910 North 44th Street, Suite 410 Phoenix, Arizona Phone: (602) FAX: (602) You should take great care in completing the detailed and summary analyses and the summary analysis worksheet. The most common mistakes on the reports submitted to the Auditor General=s Office are due to errors in addition and inconsistencies in the information which is repeated on the reports. We suggest you have someone other than the preparer review your detailed and summary analyses and the summary analysis worksheet, and that you double check your math prior to submitting the analyses and worksheet to the Auditor General=s Office. At the end of the 15 day review period, the Auditor General=s Office will notify the city/town whether the information presented in the alternative expenditure limitation proposal complies with the requirements of state law. The Auditor General=s Office will also provide the city/town with a copy of the approved analyses and worksheet. No revisions to the analyses and worksheet may be made after the Auditor General's review is complete, except for minor edits if approved by the Auditor General=s Office (see A.R.S. ' (C) and (E) and the attached sample detailed analysis, summary analysis and summary analysis worksheet). A publicity pamphlet must be prepared for the home rule option election. The contents of the pamphlet are specified in state law (A.R.S. ' (C)) and include the summary analysis, as approved by the Auditor General=s Office, and the form in which the alternative expenditure limitation will appear on the ballot. (See sample publicity pamphlet in attached forms.) Arguments supporting or opposing the alternative expenditure limitation, if any, must be filed with the city/town clerk not less than 90 days before the election (A.R.S. ' (B)). If no arguments are submitted, a statement to that effect should be included in the pamphlet. The pamphlet must be distributed to each household containing a registered voter before early ballots are available. If for some reason the pamphlet is not ready before early ballots are available, then a notice must be mailed with any early ballots telling voters when to expect the pamphlet to be mailed and the pamphlet must be delivered to the voters not less than 10 days prior to the election (A.R.S. ' (A)). Prior to the printing and distribution of the publicity pamphlet, the city/town must transmit a draft of the pamphlet to the Auditor General=s Office in sufficient time for review and comment. To save time, the pamphlet can be transmitted by or FAX. (See and FAX information above). In addition to the publicity pamphlet, the detailed analysis of the alternative expenditure limitation must be made available to registered voters upon voter request. Throughout this process the city/town is prohibited by law to expend any funds to influence the outcome of this election (A.R.S ' ). This prohibition includes sponsoring any argument in the publicity pamphlet. If only one alternative limitation is offered to the voters, the ballot should be in the form used for initiatives and referendums (see A.R.S. ' and attached sample forms). If there is more than one alternative, the ballot must be in a form that allows electors the opportunity to vote on each proposed alternative expenditure limitation (A.R.S. ' (G)). If more than one alternative is approved, the alternative limitation receiving the highest number of votes will apply to the city or town. If the alternative expenditure limitation is approved by a majority of the qualified electors voting at the election, it will be in effect for four consecutive fiscal years. In the fourth year, the voters can be asked to extend the alternative expenditure limitation. Otherwise, the state-imposed limitation will apply to the city/town. Regardless of whether you are proposing a new alternative limitation or seeking approval of an extension of an existing alternative, the city/town must follow the outlined procedures as required by state law. If the alternative limitation is defeated by a majority of the qualified electors voting at the election, the city/town will be subject to the stateimposed expenditure limitation. No new alternative expenditure limitation may be submitted to the voters for at least two consecutive fiscal years (Article IX, Section 20, subsection 9, Arizona State Constitution). After the vote has been canvassed, notice of the outcome of the election must be provided to the Auditor General=s Office (see address on previous page) and to the Economic Estimates Commission (A.R.S. ' (F)). The address of the Economic Estimates Commission is: Economic Estimates Commission, Attention: Diane Sosinski, Office of Economic Research and Analysis, Arizona Department of Revenue, 1600 West Monroe, Phoenix, Arizona

8 EXPENDITURE LIMITATION CALCULATION One of the most important steps in determining whether or not you will need to seek an alternative to the stateimposed limitation is the calculation of your expenditure limitation. This calculation will be accomplished for you by the Economic Estimates Commission (EEC). The EEC must provide you with a preliminary limit by February 1 and a final figure by April 1. Because these dates may not be in time for you to determine whether you must seek an alternative to the stateimposed limitation, we have provided the formula for estimation of your state-imposed limitation for Before you proceed to the actual calculation, let us caution you on a couple of points. Population figures used in your calculations must be from the Department of Commerce. We do not have current published projections. To obtain the projections needed, contact Jim Chang, Department of Commerce (see address and phone number on page 20). In projecting your expenditure limitation for fiscal year , you will need population projections beginning with the July 1, 2013 figure. We have also provided a listing of DES 1978 populations as well as the Economic Estimates Commission (EEC) Base Limitations necessary for the calculation of your expenditure limitation on the following page. In addition, the percent change in the GDP implicit price deflator provided in the calculation format below may change between when this Guide is prepared and the time you are actually doing the calculations for your submission to the Auditor General=s Office. Accordingly, the deflator figure noted below should only be used for this calculation. We now suggest that you proceed with the calculation to estimate your expenditure limitation by inserting the appropriate information and multiplying or dividing as directed: EXPENDITURE LIMITATION ) = x Population Population Population Base Limitation (2013) (1978) Factor ( ) = x = % Change in GDP Expenditure Price Deflator Limitation This expenditure limitation figure is only an estimate due to the possible adjustments in your population figures and the percent of change in the GDP deflators. It should, however, assist you in determining whether your community wants or needs to seek an alternative to the state-imposed limit. 8

9 JULY 1, 1978 POPULATIONS AND BASE LIMITATIONS City/Town 1978 Population Base Limitation City/Town 1978 Population Base Limitation Apache Junction 9,500 $ 1,581,484 Nogales 11,740 3,245,377 Avondale 6,900 1,525,417 Oro Valley 1, ,317 Benson 3,925 1,317,815 Page* 4,375 4,954,381 Bisbee 6,860 1,625,337 Paradise Valley* 10,425 5,213,966 Buckeye 3,175 1,048,270 Parker 2,485 1,145,364 Bullhead City 13,830 5,493,553 Patagonia ,500 Camp Verde 5,650 2,072,112 Payson 4,305 1,267,280 Carefree* 1,744 1,642,262 Peoria* 10,500 18,247,857 Casa Grande 14,100 3,743,397 Phoenix 717, ,200,625 Cave Creek 2, ,393 Pima* 1, ,000 Chandler 23,500 7,245,951 Pinetop-Lakeside 2,635 1,214,814 Chino Valley 2, ,094 Prescott 19,250 8,495,931 Clarkdale 1, ,616 Prescott Valley 1, ,054 Clifton* 4,515 1,656,956 Quartzsite 2, ,825 Colorado City* 1, ,191 Queen Creek 2, ,277 Coolidge 6,775 1,530,413 Safford 6,200 5,484,597 Cottonwood 4,200 1,105,601 Sahuarita 1, ,697 Dewey-Humboldt 3, ,802 St. Johns 4, ,104 Douglas 12,600 4,067,476 San Luis 1, ,909 Duncan ,389 Scottsdale* 83,000 43,861,444 Eagar 2, ,268 Sedona 7,050 2,960,687 El Mirage 4, ,680 Show Low 3,800 1,443,667 Eloy 6,300 1,419,813 Sierra Vista* 24,050 10,055,882 Flagstaff* 32,000 17,022,966 Snowflake 3, ,469 Florence 3, ,110 Somerton 3, ,742 Fountain Hills* 10,190 3,302,273 South Tucson 6,275 1,879,168 Fredonia ,695 Springerville 1, ,299 Gila Bend 1, ,678 Star Valley 2, ,113 Gilbert* 4,250 2,346,450 Superior 4, ,763 Glendale* 84,000 67,955,628 Surprise 3, ,998 Globe 6,550 2,436,186 Taylor 1, ,508 Goodyear* 2,500 4,125,000 Tempe* 102,000 65,579,379 Guadalupe 4, ,792 Thatcher* 3,170 1,860,674 Hayden 1, ,838 Tolleson 4, ,494 Holbrook 5,450 2,585,121 Tombstone 1, ,007 Huachuca City 1, ,153 Tucson 311, ,097,586 Jerome ,688 Tusayan ,573 Kearny 2, ,057 Wellton* ,150 Kingman 8,745 4,426,488 Wickenburg* 3,300 1,805,966 Lake Havasu City 13,000 4,211,119 Willcox 2,985 10,497,909 Litchfield Park* 3,835 1,242,818 Williams 2,100 1,254,501 Mammoth 1, ,048 Winkelman 1, ,579 Marana 1, ,239 Winslow 7,725 4,995,579 Maricopa* 3,790 10,601,417 Youngtown 2, ,874 Mesa 130,000 54,090,640 Yuma 34,500 15,663,245 Miami 2,615 $ 878,262 *Received approval from voters for permanent base adjustment 9

10 SAMPLE LANGUAGE for Home Rule Option There are a variety of ways to exercise a home rule option. You can tailor your alternative expenditure limitation to fit the special circumstances facing your city or town or develop a formula to be used in each of the four years to calculate the limitation. The vast majority of cities and towns which have received approval for an alternative expenditure limitation have chosen a home rule in which the expenditure limitation each year equals the total budgeted expenditures/expenses for all funds as reported in the last column on Schedule A of the Auditor General=s Office forms for the annual budget. No exclusions are identified in the Ahome rule@. We call this option "pure home rule.@ Under this option, the council decides what the limitation will be during the budget deliberations each year, and such an expenditure limitation includes all expenditures. There are no exclusions under the "pure home rule" option to your expenditure limitation. The exclusions to the state-imposed expenditure limitation provided in Article IX, Section 20, of the Arizona State Constitution do not apply. Therefore, such an alternative expenditure limit must account for all expenses including such items as bond payments and Federal grants and aid. To assist you, we have developed some model language suitable for the type of home rule mentioned above ("pure home rule") and included it in resolution form. Such a resolution affecting an alternative expenditure limitation must be adopted by the council following the second public hearing, sent to the Auditor General=s Office and published in the publicity pamphlet as the "text of proposal.@ A Spanish translation of the model language has been included in resolution form. We recommend that this translation be reviewed for local or regional differences by a Spanish speaking person who resides within your city or town. If you chose to adopt a home rule that allows for constitutionally prescribed or other exclusions, they must be specifically identified in the resolution adopting the alternative expenditure limitation, otherwise such exclusions are disallowed (Attorney General Opinion I88-045). 10

11 RESOLUTION # A RESOLUTION OF THE CITY/TOWN OF PROPOSING AN (EXTENSION OF THE) ALTERNATIVE EXPENDITURE LIMITATION. WHEREAS, THE ARIZONA STATE CONSTITUTION PERMITS THE SUBMISSION TO THE VOTERS OF A CITY OR TOWN OF AN ALTERNATIVE EXPENDITURE LIMITATION; AND (WHEREAS, THE VOTERS OF THE CITY/TOWN OF IN 20 ADOPTED AN ALTERNATIVE EXPENDITURE LIMITATION; AND) WHEREAS, THE CITY/TOWN COUNCIL OF AFTER TWO PUBLIC HEARINGS HAS DETERMINED THAT AN (EXTENSION OF THE) ALTERNATIVE EXPENDITURE LIMITATION IS NECESSARY FOR THE CITY/TOWN OF. NOW, THEREFORE, BE IT RESOLVED BY THE CITY/TOWN COUNCIL OF THAT THE FOLLOWING ALTERNATIVE EXPENDITURE LIMITATION BE SUBMITTED TO THE VOTERS OF THE CITY/TOWN OF. SHALL THE FOLLOWING BE ADOPTED BY THE CITY/TOWN OF AS AN ALTERNATIVE EXPENDITURE LIMITATION: "THE MAYOR AND COMMON COUNCIL OF THE CITY/TOWN OF SHALL ANNUALLY, AS PART OF THE ANNUAL BUDGET ADOPTION PROCESS, ADOPT AN ALTERNATIVE EXPENDITURE LIMITATION EQUAL TO THE TOTAL AMOUNT OF BUDGETED EXPENDITURES/EXPENSES AS IT APPEARS ON THE ANNUAL BUDGET AS ADOPTED BY THE COUNCIL TO APPLY TO THE CITY/TOWN OF FOR EACH OF THE FOUR FISCAL YEARS IMMEDIATELY FOLLOWING ADOPTION OF THE ALTERNATIVE EXPENDITURE LIMITATION. THE ALTERNATIVE EXPENDITURE LIMITATION SHALL BE ADOPTED EACH YEAR AFTER A PUBLIC HEARING AT WHICH THE CITIZENS OF THE CITY/TOWN OF MAY COMMENT ON THE PROPOSED ALTERNATIVE EXPENDITURE LIMITATION. NO EXPENDITURES MAY BE MADE IN VIOLATION OF SUCH ALTERNATIVE EXPENDITURE LIMITATION, NOR MAY ANY PROPOSED EXPENDITURES BE IN EXCESS OF ESTIMATED AVAILABLE REVENUES, EXCEPT THAT THE MAYOR AND THE COMMON COUNCIL MAY, BY THREE-FOURTHS VOTE, DECLARE AN EMERGENCY AND SUSPEND THE ALTERNATIVE EXPENDITURE LIMITATION. THE SUSPENSION OF THE ALTERNATIVE EXPENDITURE LIMITATION SHALL BE IN EFFECT FOR ONLY ONE FISCAL YEAR AT A TIME." PASSED AND ADOPTED BY THE CITY/TOWN COUNCIL OF, THIS DAY OF, 20. ATTEST: Mayor City/Town Clerk APPROVED AS TO FORM: City/Town Attorney 11

12 RESOLUCION # UNA RESOLUCION DE LA/EL CIUDAD/PUEBLO DE PROPONIENDO UNA (EXTENCION SOBRE LA) ALTERNATIVA DEL LIMITE DEL GASTO. CONSIDERANDO QUE, LA CONSTITUCION ESTATAL DE ARIZONA PERMITE LA SUMISION A LOS VOTANTES DE UNA CIUDAD O PUEBLO UNA ALTERNATIVA SOBRE UNA LIMITACION DE GASTO; Y (CONSIDERANDO QUE, LOS VOTANTES DE LA/EL CIUDAD/PUEBLO DE EN 20 ADOPTARON UNA ALTERNATIVA SOBRE EL LIMITE DE GASTO -UNA OPCION DE AUTO REGLAMENTO; Y) CONSIDERANDO QUE, EL CONSEJO DE LA/EL CIUDAD/PUEBLO DE DESPUES DE DOS AUDIENCIAS PUBLICAS HA DETERMINADO QUE UNA (EXTENCION SOBRE LA) ALTERNATIVA DEL LIMITE DE GASTO ES NECESARIA PARA LA/EL CIUDAD/PUEBLO DE. AHORA, POR LO TANTO, SEA RESUELTO POR EL CONSEJO DE LA/EL CIUDAD/PUEBLO DE QUE LA SIGUIENTE ALTERNATIVA SOBRE EL LIMITE DEL GASTO SEA SOMETIDA A LOS VOTANTES DE LA/EL CIUDAD/PUEBLO DE. DEBERA SER ADOPTADO LO SIGUIENTE POR EL CONSEJO DE LA/EL CIUDAD/PUEBLO DE COMO UNA ALTERNATIVA DEL LIMITE DE GASTO: "EL ALCALDE Y EL CONSEJO COMUN DE LA/EL CIUDAD/PUEBLO DE DEBERAN ANUALMENTE, COMO PARTE DEL PROCESO DE LA ADOPCION DEL PRESUPUESTO ANUAL, ADOPTAR UNA LIMITACION ALTERNATIVA DE GASTO IGUAL A LA CANTIDAD TOTAL PREPUESTA DE GASTOS COMO APARECE EN EL PREPUESTO ANUAL COMO ADAPTADO POR EL COUSEJO PARA APLICAR AL PRESUPUESTO DE LA/EL CIUDAD DE PARA CADA DE LOS CUATROS ANOS FISCALES INMEDIATAMENTE DESPUES DE TAL ADOPCION. LA ALTERNATIVA SOBRE LA LIMITACION DE GASTO DEBERA SER ADOPTADA CADA ANO DESPUES DE UNA AUDIENCIA PUBLICA EN LA CUAL LOS CIUDADANOS DE LA/EL CIUDAD/PUEBLO DE PUEDAN COMENTAR SOBRE LA PROPUESTA ALTERNATIVA SOBRE UNA LIMITACION DE GASTO. NINGUN GASTO PODRA SER ECHO EN VIOLACION DE LA ALTERNATIVA SOBRE UNA LIMITACION DE GASTO, NI PODRA NINGUN GASTO PROPUESTO SER EN EXCESO DE ENTRADAS ESTIMADAS DISPONIBLES, EXCEPTO LAS QUE EL ALCALDE Y EL CONSEJO COMUN PUEDAN, POR VOTO DE TRES-CUARTOS, DECLARAR COMO UNA EMERGENCIA Y SUSPENDAN LA ALTERNATIVA SOBRE LA LIMITACION DE GASTOS. LA SUSPENSION DE LA ALTERNATIVA SOBRE LA LIMITACION DE GASTO DEBERA ESTAR SOLAMENTE EN EFECTO POR UN ANO FISCAL A LA VEZ." PASADO Y ADOPTADO POR EL CONSEJO DE LA/EL CIUDAD/PUEBLO DE, ESTE DIA DE, 20. ATESTIGUA: Alcalde Secretary de la/el Ciudad/Pueblo APROBADO EN FORMA: Procurador de la/el Ciudad/Pueblo 12

13 SAMPLE FORMS THE FORMS ON THE FOLLOWING PAGES MAY BE USED TO SUBMIT REQUIRED INFORMATION TO THE AUDITOR GENERAL=S OFFICE AND FOR ELECTION PURPOSES. WHERE APPROPRIATE, YOUR CITY OR TOWN ATTORNEY SHOULD BE CONSULTED. INSTRUCTIONS FOR COMPLETION OF THE FORMS APPEAR ON THE FACING PAGE. 13

14 INSTRUCTIONS FOR PUBLIC NOTICE OF HEARINGS 1. Insert information about date, time and location of hearings. 2. This public notice must be published once a week for at least two consecutive weeks. This notice is required by A.R.S. ' INSTRUCTIONS FOR COMPLETING PUBLIC NOTICE 1. Include first paragraph only if you are renewing an alternative expenditure limitation. 2. If council disapproves proposal, only publish second paragraph. 3. In completing the fourth paragraph of the notice, you should use the same figures for as are used in the summary analysis. 4. The purposes for additional expenditures listed here must be specific and should agree with the purposes enumerated in the detailed and summary analysis. This is only a statement of intent and will not limit your additional expenditures to these purposes. 5. If you do not have a property tax, remove the last sentence in the fifth paragraph. 6. Notice must be published at least once each week for two consecutive weeks if in a weekly newspaper or four consecutive times if in a daily newspaper. (A.R.S. ' (2) and ' ) 7. The requirements for this notice are specified in A.R.S. ' (2). 14

15 PUBLIC NOTICE OF HEARINGS The City/Town Council of the City/Town of will hold two public hearings on the proposed alternative expenditure limitation - home rule option as follows: By order of the City/Town Council of. Signed: City/Town Clerk PUBLIC NOTICE (The voters of the City/Town of in 20 adopted an alternative expenditure limitation - home rule option. The purpose of this election is for the continued use of the alternative expenditure limitation.) Pursuant to A.R.S. ' , the City/Town Council of voted to (approve/disapprove) the proposed alternative expenditure limitation - home rule option at its special meeting on. The vote for (approval/disapproval) was For and Against. At the (primary/general) election to be held on, the voters of the City/Town of will vote on the question of an alternative expenditure limitation - home rule option. With voter approval, the city/town shall be limited to the expenditure of estimated available revenues whether such expenditures are less than or exceed the State imposed limit. As an example, in , the state-imposed limitation plus applicable constitutional exclusions will allow expenditures of $. Under the proposed alternative expenditure limitation, we estimate expenditures of $. If the voters approve, the additional expenditure authority will be used for all local budgetary purposes including. Revenues received from federal, state and local sources will be used to fund such expenditures. (The city/town property tax shall be limited to the amount prescribed in the Arizona State Constitution.) By order of the City/Town Council of. Signed: City/Town Clerk 15

16 INSTRUCTIONS FOR COMPLETING DETAILED ANALYSIS Information required to be documented on the detailed analysis is specified in A.R.S. ' (E). 1. In the first paragraph, insert the number of the resolution authorizing the alternative expenditure limitation and date the resolution passed. 2. In the second paragraph, enter the amount of the estimated expenditures under the home rule option for each of the four consecutive fiscal years for which the proposal will be effective. 3. In the third paragraph, indicate the purposes for which the additional expenditures under the home rule option will be used. You should be as specific as possible (e.g. general government, public safety, street construction, parks and recreation, library, public works, etc.). Reference to such expenditures by fund only is not sufficient. It also should be noted that these descriptions will not limit your additional expenditures to these purposes. NOTE: The purposes listed here should be consistent with the purposes listed in the first chart (Estimated Amounts to be Expended in Specific Areas) and those listed in the summary analysis. 4. In the first chart, enter the specific purposes for which the expenditures will be made and the estimated expenditures for each of the four consecutive fiscal years for which the home rule option will be effective. NOTE: The purposes listed here should be consistent with the purposes listed in the third paragraph above and the summary analysis. Additionally, total expenditures for each year should be mathematically accurate and should agree to the amounts included in the second paragraph of the detailed analysis and summary analysis. 5. In the second chart, enter the estimated revenue amounts from federal, state and local sources for each of the four consecutive fiscal years for which the proposal will be effective. NOTE: Total estimated revenues for each year should be mathematically accurate and should agree to the total estimated expenditures for each year as presented on the detailed and summary analysis. 6. Insert the fifth paragraph only if the city/town levies a property tax. Otherwise, it should not be included. 7. In the sixth paragraph, add any assumptions used in determining the revenue sources to fund the authorized additional expenditures under the alternative expenditure limitation if not already identified here. 16

17 ALTERNATIVE EXPENDITURE LIMITATION (Home Rule Option) DETAILED ANALYSIS Pursuant to the Arizona State Constitution, the City/Town of as authorized by Resolution # passed on will seek voter approval to adopt an alternative expenditure limitation (Home Rule Option) to apply to the City/Town for the next four years beginning in Under a Home Rule Option if approved by the voters, the city/town estimates it will be allowed to expend approximately $ in , $ in , $ in and $ in With approval of the Home Rule Option, the city/town will utilize the expenditure authority for all local budgetary purposes including. We estimate that the expenditures for the next four years under the Home Rule Option will be as follows: ESTIMATED AMOUNTS TO BE EXPENDED IN SPECIFIC AREAS Purpose Total Expenditures If approved, the expenditures authorized will be funded from revenues obtained from federal, state and local sources. It is estimated that the amount of revenue from each source for the next four years will be as follows: ESTIMATED AMOUNTS OF REVENUE FROM EACH AND ANY SOURCE Source Federal State Local Total Revenues (The city/town property tax shall be limited to the amount prescribed in the Arizona State Constitution). In determining the revenue sources to fund the authorized additional expenditures under the alternative expenditure limitation, it is assumed that the federal, state and local revenues received by the city/town will continue to be available in as they have for the past years. Their continued availability is also assumed for the next three consecutive years following Any and all dollar figures shown in this analysis are estimated figures only and are based upon information available at the time of preparation of this report. The budgets and actual expenditures in any given year may be more or less than the figures noted above depending on available revenues. The actual expenditure limitation for each fiscal year shall be adopted as an integral part of the budget for that fiscal year. 17

18 INSTRUCTIONS FOR COMPLETING SUMMARY ANALYSIS Information required to be documented in the summary analysis is specified in A.R.S. ' (C). 1. Complete the first paragraph only if the city/town is renewing the alternative expenditure limitation. 2. In the second paragraph, enter the estimated expenditures under the Home Rule Option for each of the four consecutive fiscal years for which the proposal will be effective. NOTE: The amounts in this paragraph should equal the total estimated expenditures for each fiscal year as documented in the detailed analysis. 3. In the third paragraph, enter the purposes for which the additional expenditures will be made. NOTE: The purposes listed here must be specific and should be consistent with the purposes listed in the detailed analysis and the Public Notice. 4. In the fourth paragraph, enter the amount of estimated expenditures under the state-imposed expenditure limitation including expenditures of constitutionally excludable revenue for each of the four consecutive fiscal years. NOTE: These amounts should be calculated using the summary analysis worksheet. 5. In the fifth paragraph, enter the total estimated revenue for each of the four consecutive fiscal years for which the proposal will be effective. NOTE: The amounts in this paragraph should be consistent with the total estimated revenues for each fiscal year in the detailed analysis. Insert the last sentence of this paragraph only if the city/town levies a property tax. 18

19 ALTERNATIVE EXPENDITURE LIMITATION (Home Rule Option) SUMMARY ANALYSIS (The voters of the City/Town of in 20 adopted an alternative expenditure limitation (Home Rule Option). The purpose of this election is for the continued use of the Home Rule Option.) Pursuant to the Arizona State Constitution, the City/Town of seeks voter approval to adopt a Home Rule Option to apply to the city/town for the next four years beginning in Under a Home Rule Option if approved by the voters, the city/town estimates it will be allowed to expend approximately $ in in , $ in , $ in and $ in With approval of the Home Rule Option, the city/town will utilize the expenditure authority for all local budgetary purposes including. Under the state-imposed limitation the city/town estimates it will be allowed to expend approximately $ in , $ in , $ in and $ in for the operation of your local government. These expenditure estimates include expenditures of constitutionally excludable revenues. The amount of revenue estimated to be available to fund the operation of your city/town government is $ in , $ in , $ in and $ in These revenue estimates are the same under the Home Rule Option or the state-imposed expenditure limitation. (The city/town property tax shall be limited to the amount prescribed in the Arizona State Constitution.) Any and all dollar figures presented in this summary are estimates only and are based upon information available at the time of preparation of this analysis. The budget and actual expenditures in any of the four years may be more or less than the expenditures noted above depending on available revenue. If no alternative expenditure limitation is approved, the state-imposed expenditure limitation will apply to the city/town. 19

20 INSTRUCTIONS FOR COMPLETING SUMMARY ANALYSIS WORKSHEET Population Factor Computation Table 1. In projecting your state-imposed expenditure limitations beginning in fiscal year , you will need population projections beginning with the July 1, 2013 figure. In the first column, enter the Prior Fiscal Year Population figures for each of the four consecutive years for which the proposal will be effective. The Commerce population figures which must be used in this calculation can be obtained by contacting Jim Chang, Department of Commerce, 1700 W. Washington, Phoenix, Arizona 85007, (602) , 2. In the second column, enter the city/town's 1978 population for each of the four consecutive fiscal years. Obtain the 1978 Population amount as determined by the Economic Estimates Commission from page 9 of this packet. 3. Calculate the Population Factors for each of the four consecutive fiscal years by dividing the Prior Fiscal Year Population amount by the 1978 Population amount as shown. NOTE: For consistency, the population factors should be rounded to the fourth decimal place. State-Imposed Expenditure Limitation Table 1. In the first column, enter the Base Limit amount for each of the four consecutive fiscal years shown. To aid in preparation of the summary analysis worksheet, the Base Limits provided by the Economic Estimates Commission for all cities and towns have been included on page 9 of this packet. 2. In the second column, enter the Population Factors for each of the four consecutive fiscal years as calculated in the previous table. 3. In projecting your state-imposed expenditure limitations beginning in fiscal year , you will need calendar year Inflation Factors beginning with In the third column, enter the most recent Inflation Factors available for each of the four consecutive fiscal years. The Inflation Factors used should be calendar year factors and may be obtained from: Diane Sosinski, Department of Revenue, Office of Economic Research and Analysis, 1600 West Monroe, Phoenix, Arizona 85007, (602) NOTE: The Inflation Factors listed in this sample will be changed in late September. If you are making a submission to the Auditor General=s Office prior to late September, you may use the factors appearing on the chart. Otherwise, you should obtain the up-to-date factors from Ms. Sosinski. 4. Calculate the Projected State-Imposed Expenditure Limitation amounts for each of the four years by multiplying the Base Limit amount by the Population Factor and the Inflation Factor. Add an amount for estimated exclusions in the next to last column and insert a total in the final column. NOTE: The projected expenditure limitations plus exclusions calculated here should be consistent with the estimated state-imposed expenditure limitation plus exclusions recorded in the summary analysis narrative. 20

21 ALTERNATIVE EXPENDITURE LIMITATION (Home Rule Option) SUMMARY ANALYSIS WORKSHEET POPULATION FACTOR COMPUTATION Fiscal Year Prior Fiscal Year Population ) 1978 Population = Population Factor ) = ) = ) = ) = STATE-IMPOSED EXPENDITURE LIMITATION Fiscal Year Base Limit x Population Factor x Inflation Factor = Projected State-Imposed Expenditure Limitation + Estimated Exclusions = Total Expenditures Under State-Imposed Limit x x = + = x x = + = x x = + = x x = + =

22 GENERAL INSTRUCTIONS FOR PREPARING PUBLICITY PAMPHLET A publicity pamphlet must be prepared for each alternative expenditure limitation election. The contents of the pamphlet are specified by state law as follows: (A.R.S. ' and ' ). 1. The date of the election. 2. The names and locations of polling places and the times they are open. 3. A true and complete copy of the title and text of the proposed alternative expenditure limitation. 4. The form in which the proposed alternative expenditure limitation will appear on the ballot, the official title, a descriptive title prepared by the city or town clerk and the number by which the alternative expenditure limitation will be designated. (See pages 27 and 31) 5. A summary of estimated total expenditures under the proposed alternative expenditure limitation for a period of four consecutive fiscal years, as reviewed by the Auditor General=s Office. 6. Any exclusions under the proposed alternative expenditure limitation. 7. A summary of the estimated total expenditures under the state-imposed expenditure limitation, considering constitutionally allowed exclusions for a period of four consecutive fiscal years, as reviewed by the Auditor General=s Office. 8. A summary of estimated revenue from all sources from which any expenditure limitation shall be funded for a period of four consecutive fiscal years, as reviewed by the Auditor General=s Office. 9. A statement that if the proposed alternative expenditure limitation is not approved by a majority of the qualified voters, the state-imposed expenditure limitation will apply to the city or town. 10. Arguments for and against the proposed alternative expenditure limitation, or an indication that no arguments for/against were received. The summary analysis as reviewed by the Auditor General=s Office must be published in the publicity pamphlet and satisfies the information required in #5 through #9 listed above. The detailed analysis and summary analysis worksheet are not required to be published in the publicity pamphlet; however, if they are included they must also be published in the form as reviewed by the Auditor General=s Office. A draft of the publicity pamphlet must be ed or faxed to the Auditor General=s Office in sufficient time for their review and comment prior to printing. See page 7 for the address, and fax information of the Auditor General=s Office. The publicity pamphlet must contain Spanish language translations of all information. The publicity pamphlet must be distributed to every household containing a registered voter prior to the availability of early ballots. If the pamphlet is not available by that time then the voters must be given notice of when the pamphlet will be available and that must be at least ten days before the election (A.R.S. ' ). You are prohibited from expending public funds for promoting the adoption of a home rule option. This means that, in providing publicity pamphlets, the city or town should not include a city/town sponsored argument for the home rule option (A.R.S ' ). On the following pages, we have produced a sample publicity pamphlet. Where the necessary insertions are obvious, such as inserting the name of the city or town, no instructions are included. 22

23 P U B L I C I T Y P A M P H L E T C O V E R CITY/TOWN OF PUBLICITY PAMPHLET Proposal to be submitted to the qualified electors of the City/Town of at the PRIMARY/GENERAL ELECTION (Insert Date of Election) Compiled and Issued by City/Town of ( ), City/Town Clerk 23

24 INSTRUCTIONS FOR COMPLETING PAGES 2 AND 3 OF PUBLICITY PAMPHLET 1. On Page 2, list the name and location of all polling places and insert the date of election in the space provided. 2. Page 3 is optional. If the city/town chooses to include this page in the publicity pamphlet, insert the city/town name and the date of the election. Otherwise, omit this page. 24

25 PAGE 2 LIST OF POLLING PLACES ALL POLLING PLACES WILL BE OPEN FROM 6:00 A.M. to 7:00 P.M. ON PAGE 3 To the voters of the City/Town of. The purpose of this publicity pamphlet is to provide you with information on a measure which will appear on the Primary/General Election ballot. Preparation of this pamphlet is required by State law. In compliance with the Federal Voting Rights Act, this publicity pamphlet has been prepared in both English and Spanish. (You may want to insert additional information.) 25

26 INSTRUCTIONS FOR COMPLETING PAGE 4 OF PUBLICITY PAMPHLET Insert the text of the resolution adopted by the city/town council setting forth how the alternative expenditure limitation will be calculated. The text is that portion of the resolution in quotation marks in our sample which appears on page 11 of this Guide. If the city/town wishes to take Constitutional exclusions or other exclusions under the alternative expenditure limitation, such exclusions must be included in the resolution and publicity pamphlet. 26

27 PAGE 4 PROPOSITION 1 Title and Text of Proposal RESOLUTION # A RESOLUTION PROPOSING AN (EXTENSION OF THE) ALTERNATIVE EXPENDITURE LIMITATION. WHEREAS, THE ARIZONA STATE CONSTITUTION PERMITS THE SUBMISSION TO THE VOTERS OF A CITY OR TOWN OF AN ALTERNATIVE EXPENDITURE LIMITATION; AND (WHEREAS, THE VOTERS OF THE CITY/TOWN OF IN 20 ADOPTED AN ALTERNATIVE EXPENDITURE LIMITATION; AND) WHEREAS, THE CITY/TOWN COUNCIL OF AFTER TWO PUBLIC HEARINGS HAS DETERMINED THAT AN ALTERNATIVE EXPENDITURE LIMITATION IS NECESSARY FOR THE CITY/TOWN OF. NOW, THEREFORE, BE IT RESOLVED BY THE CITY/TOWN COUNCIL OF THAT THE FOLLOWING ALTERNATIVE EXPENDITURE LIMITATION BE SUBMITTED TO THE VOTERS OF THE CITY/TOWN OF. SHALL THE FOLLOWING BE ADOPTED BY THE CITY/TOWN OF AS AN ALTERNATIVE EXPENDITURE LIMITATION: (INSERT TEXT OF RESOLUTION) PASSED AND ADOPTED BY THE CITY/TOWN COUNCIL OF, THIS DAY OF, 20. ATTEST: Mayor City/Town Clerk APPROVED AS TO FORM: City/Town Attorney 27

28 INSTRUCTIONS FOR COMPLETING PAGES 5-7 OF PUBLICITY PAMPHLET 1. On Page 5, insert the summary analysis as reviewed by the Auditor General=s Office. No revisions to the summary analysis may be made after the review by the Auditor General=s Office is complete, except for minor edits if approved by the Auditor General=s Office. If the city/town elects to publish the detailed analysis and summary analysis worksheet, the city/town must publish such documents as reviewed by the Auditor General=s Office. You are only required to include the summary analysis. 2. On Page 6, insert any arguments submitted supporting the home rule proposition or print "no arguments received" and insert any arguments submitted opposing the home rule proposition or print "no arguments received". 3. On Page 7, insert the ballot format as it appears on the last page of this packet. 28

29 PAGE 5 Summary Analysis PAGE 6 Arguments Favoring Proposition # Arguments Opposing Proposition # PAGE 7 Ballot Format 29